Accounting for Managers - krishna kanta handiqui state open ...

KRISHNA KANTA HANDIQUE STATE OPEN UNIVERSITY
ASSIGNMENT
MBA/PGDBM 1 st Semester (2012)
Paper 03: Accounting for Managers
MBA 03
Marks: 50
Q1: Answer the following questions (within 50 words) (4 x 2= 8)
a. What is royalty?
b. What do you mean by Trading Accounting?
c. Define Bookkeeping.
d. What is a journal?
Q2: Answer the following question (within 75 words) (4x3=12)
a. Name any three sources of cash.
b. What is a budget?
c. What is cash flow statement?
d. What do you understand by balance sheet ratios?
Q3: Answer the following question (within 150 words) (2x5=10)
a. Explain the rules regarding posting of transactions in the Ledger.
b. What is fund flow statement?
Q4: Answer the following question (within 300 words) (2x10=20)
a. Discuss in detail the break-even analysis and also discuss its assumptions and uses.
b. Following is the Trial Balance of SS & Co. as on 31.12.2011 along with the additional
information. Prepare Trading and Profit and Loss Account for the year ended 31.12.2011 and
the balance Sheet as on 31.12.2010.
Dr. Trial Balance as on 31.12.10 Cr.
Particulars Amount Particulars Amount
Purchases
30, 000 Interest received on
investment 800
Sundry Debtors 40, 000 Sales 64, 200
Salaries 6, 000 Returns outward 1, 000
Wages 4, 000 Sundry Creditors 24, 000
Rent and Rates 3, 000 Capital 20, 000

Returns Inward 2, 000 Commission 1, 200
Bad Debt 1, 400 Interest 400
Drawings 4, 800
Printing and Stationery 1, 600
Insurance 2, 400
Opening stock 10, 000
Administration expenses 2, 400
Furniture 4, 000
1, 11, 600 1, 11, 600
Additional information:
1. Depreciate furniture by 10%
2. Make a provision for bad and doubtful debt @ 5 % on Sundry Debtors.
3. Insurance includes prepaid for Rs. 400
4. Administration expenses is remaining outstanding for Rs. 1, 600
5. Closing stock is valued at Rs. 12, 000.