RA Reg. No.
Question Paper Code:30142
M.C.A. DEGREE EXAMINATIONs. NOVEMBER/DECEMBER 2022.
First Semester
MC4104- FUNDAMENTALS OF ACCOUNTING
(Regulations 2021)
Time: Three hours Maximum: 100 marks
Answer ALL questions.
PARTA (10 x2=20 marks)
1. Name for objectives of Financial Accounting.
2. What do you understand by the Principle of Consistency?
3. Define Managemnent Accounting.
4. Name any three liquidity ratios.
5. What do you understand by budget?
6. What is a flexible budget?
7. List down the objectives of Financial Management.
8. Distinguish between depreciation and amortization.
9 Why is a bank reconciliation statement needed?
10. List down any four causes of difference between bank statements and account
statements of the company.
PART B- (5 x 13=65 marks)
11, (a) Explain the differences between Financial Accounting, Cost Accounting
and Management Accounting.
Or
(b) Explain the six accounting principles as per the Indian Accounting
Standards.
06 Anees atarted busineas with Rs. 1,00,000 and other
tranNn Rur the nonth are:
unha Nurnitue for Cash Rs. 7.000
Nuvhase Goods for Cash P. 2,000 and for Credit Rs. 1,000 from
Khahd Retail Store.
l4 Sotd Goods to Khan Brothers Rs. 12,000 and Cash Sales Rs. 5,000.
Owner withdrew of worth Ps, 2,000 for personal use.
P'aid Khalid Retail Store Rs. 500.
26 Received Ps, 10,000 from Khan Brothers
S0. Paid Salaries Expense Rs. 2,000
Prepare journal entries for each of these transactions.
Or
(b) The following fnancial information are provided of a company:
Total Credit Sales of the Year Rs. 20,00,000
Inventory at the end of the year Rs. 4,00,000
Gross Profit Margin 30%
Account Receivable at the end Rs. 1,00,000
Opening Balance of Inventory was less by Rs. 2,00,000 than the ending
balance of inventory,
Find:
Stock Turnover Ratio
(i) Average Collection Period
13. (a) Explain the different types of Budgets in Accounting.
Or
(b) Using the following information, prepare a flexible budget for the
production of 80% and 100% activity.
Production at 50% Capacity 5,000 Units
Raw Materials $80 per unit
Direct Labor $50 per unit
Direct Expenses $15 per unit
Factory Expenses $50,000 (50%) (Fixed)
Administration Expenses $60,000 (Variable)
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14. (a) What do you undertaud hv IApense account? Explain with an
example.
Or
(b) Consider a piece of equnmost that costs $25,000 with an estimated
useful hte of 8 years and a so aalvage value. Calculate the depreciation
expense for each year uNing straight line depreciation method.
15. (a) Explain the procedure for nronoring a Bank reconciliation statement.
Or
(b) On 31* March, 2013 the nass book of Mitra showed a credit balance of
Rs. 216,000. A comparison of pass book and cash book revealed the
following:
Cheques deposited but not cleared by 31t March 1,08,150
(iü) Cheques issued by Mitrsa but not presented for payment before
1st April, 2013 26,000
() Insurance premium paid by bank on behalf of Mitra but not yet
recorded in cash book 52,075
(iv) Commission charged by bank not yet recorded in cash book 750
(v) Interest on bonds collected by bank on behalf of Mitra not yet
recorded in cash book 25,000
Bank balance as per cash book as on 31st March, 2013 is Rs. 325,975.
Prepare a Bank Reconciliation Statement as on 31"t March, 2013.
PART C-(1 x15 = 15 marks)
16. (a) Prepare aCash-Budget of a company for April. May and June 2003 in a
columnar form using the following information:
(Rs.)
Month, 03 Sales Purchases Wages Expenses
January (Actual) 80,000 45,000 20,000 5,000
February (Actual) 80,000 40,000 18,000 6,000
75,000 42,000 22,000 6,000
March (Actual)
90,000 50,000 24,000 7,000
April (Budgeted)
85,000 45,000 20,000 6,000
May (Budgeted)
80,000 35,000 18,000 5,000
June (Budgeted)
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Youare further informed that:
108% of the purchases and a070 of the sales are for cash;
G) The average collection penod of the company % month and the
credit purchases are pala ou regularly after one month;
(ui) Wages are paid half monthly, and the rent of Re, B00 included in
expenses is paid monthly;
v) Cash and Bank Balance as on April, was Rs. 15.000 and the
company wants to keep lt at the end of every month approximately
this figure, the excess cash being put in fixed deposits in the bank.
Or
(b) On 1.1.2008, the cost of the machinery in use with a firm was
Rs. 5,00,000 against which the depreciation provision stood at
Rs. 1.91,900 on that date. The hrm provided depreciation at 10% per
annum on straight-line method. The firm started its business in 2004. On
30.9.2008, two machines costing Rs. 30,000 and Rs. 24,000 respectively,
both purchased on 1.72005, were discarded because of damage and
replaced by two new machines costing Rs. 40,000 and Rs. 30,000
respectively. One of the discarded machines was sold for Rs. 16,000;
against the other it was expected that Rs. 6,000would be realized.
Show the Machinery Account, Depreciation account, Provision for
Depreciation account and Machinery Disposal account
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