Accounting for Management Question paper of MBA Semester 1, Download Question Paper 12

Roll No……..

Total No. of Questions: 07

Paper ID [MB103]

MBA (Sem.-1^st)

          ACCOUNTING FOR MANAGEMENT (MB-103)

Time: 03 Hours                                                                      Max. Marks: 60

Instruction to Candidates:

1.      Section-A is Compulsory.

2.      Attempt any Four questions from Section-B.

SECTION-A

(10 X 2=20)

Q1.

(a)    Write three principles of accounting.

(b)   Differentiate between Financial account and Cost accounting.

(c)    What is Accounting Cycle.

(d)   What is the purpose of preparing a Funds of flow statement.

(e)    Differentiate between Absorption Costing and Marginal Costing.

(f)    What are overheads? Give two examples.

(g)   What is the objective of Zero Base Budgeting?

(h)   Write three benefits of Price Level Accounting.

(i)     What is the rationale of Activity Based Costing?

(j)     What is Social Accounting?

SECTION-B

(4 X 10=40)

Q2 Is accounting an information system? Discuss various concepts of accounting and their implications.

Q3. The following trial balance has been extracted from the books of Mrs. Singh as on 31^st March 2006:

Particulars	Debit(Rs.)	Credit(Rs.)
Furniture and fittings	1,280
Motor vehicles	12,500
Buildings	15,000
Capital account		25,000
Bad Debts	250
Provision for doubtful debts		400
Sundry debtors and Creditors	7,600	5,000
Opening Stock	6,920
Purchases and sales	10,950	30,900
Bank overdraft		5,700
Sales and purchases returns	400	200
Advertising	900
Interest	236
Commission		750
Cash	1,300
Taxes and Insurance	1,564
General expenses	2,500
Salaries	6,600
Total	68,000	68,000

The following adjustments are to be made:

(a)    Stock in hand as on March 31^st, 2006 was Rs. 6,500.

(b)   Depreciate Buildings @5%, Furniture and Fittings @10% and Motor Vehicles @20%.

(c)    Salaries Rs. 600 and taxes Rs. 400 are outstanding.

(d)   Insurance amounting to Rs. 200 is prepaid.

(e)    Write off further bad debts and provision for doubtful debts is to be made @5% on Sundry debtors.

Prepare Trading and Profit and Loss Account for the year ending March 31^st, 2006 and balance sheet as on that date.

Q4. What is the purpose of doing Financial Analysis? Discuss various ratios which may be helpful to an investor in carrying out financial analysis.

Q5. A retailer in garments is currently selling 24000 shirts annually. He supplies the following details for the year ended 31^st December 2001:

Selling Price per shirt              Rs. 40 

Variable cost per shirt             Rs. 25

Fixed Costs:

            Staff salaries               Rs. 1,20,000

            General office costs    Rs. 80,000

            Advertising Costs       Rs. 40,000

Required:

(a)    Calculate the break-even point and the margin of safety in sales revenue and number of shirts sold.

(b)   Assume that 20,000 shirts were sold in a year, find out the net profit.

(c)    It is decided to introduce selling commission of Rs. 3 per shirt, how may shirts would you recommend to be sold in a year to earn a net income of Rs. 15,000.

Q6. Explain Budget, Budgeting and Budgetary Control. How does, budgetary control differ from Standard Costing?

Q7. Write notes on the following:

(a)    Human Resources Accounting.

(b)   Responsibility accounting.