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Ex/PE 41A/56/2008
B. POWER ENGINEERING FINAL EXAMINATION, 2008
( 1st Semester )
ENGINEERING ECONOMICS AND COSTING
Time : Three hours Full Marks : 100
Answer any five questions
1. The following is the Trial Balance of X on 31st March, 2007.
Dr Cr.
Rs. Rs.
Purchases 15000
Debtors 20000
Interest earned 600
Salaries 3000 32100
Purchase-Returns 500
Wages 2000
Rent 2300
Sales Return 1000
Bad debts written off 700
Creditors 12000
Capital 10000
Drawings 2400
Provision for Bad Debts 600
Insurance 1200
Opening stock 5000
Office expenses 1200
Furniture & Fittings 2000
55800 55800
80
[ 2 ] [ 3 ]
Prepare a Trading and Profit & Loss Account for the year
ended March 31, 2007 and also the Balance Sheet as on
that date after making the following adjustments :
a) Closing stock was valued at Rs. 6000
b) Depreciate Furniture and Fittings by 10%
c) Make a provision for Doubtful Debts equal to 5% of
Debtors.
d) Insurance is prepaid to the extent of Rs. 200
e) Provided Rs. 800 for office expenses. 20
2. What is meant by Mixed Economy ? How Mixed Economy
solve their central problems ? 5+15
3. What do you mean by Demand ? What determines Demand
for a particular commodity ? 5+15
4. What is a budget ? What are its advantages and limitations ?
4+8+8
5. From the following Particulars prepare a summarised Balance
Sheet as at 31st December, 2006. 20
Fixed Assets to Networth 0
.
8 : 1
Current Ratio 3 : 1
Reserve included in proprietors Fund 25%
Fixed Assets Rs. 8,00,000
Cash and Bank Balances Rs. 15,000
Current Liabilities Rs. 1,50,000
The firm has no Bank overdraft.
6. Write notes on any two of the following : 20
a) Globalisation, b) Inflation, c) Elasticity of Demand
d) Central Economic Problems.
7. From the following information calculate cost per therm and
cost per unit of electricity generated for the month of June
2007. 20
a) Coal 200 Tonnes @ Rs. 10 Per Kg.
b) Water 4,00,000 litres @ Rs. 100 per 10,000 litres
c) Oil 30 quintals @ Rs. 1,00,000 per 10 quintals
d) Freight & Handling of coal 10% of cost of coal
e) Charges for ash disposal Rs. 2000
f) Other Expenses :
Wages & salaries Rs. 3,00,000
Repair & Maintenance Rs. 35,000
Office and Administrative Cost Rs. 40,000
g) Depreciation of machinery Rs. 25,000
h) Total Production 10,00,000 units
i) Production used by plant itself 10%
8. Explain the role of ratio analysis in the interpretation of finalcial
statements. Explain the, limitations of such analysis. 10+10