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ASSIGNMENT
DRIVE SPRING 2016
PROGRAM MBA
SEMESTER I
SSUBJECT CODE &
NAME
MB 0041
FINANCIAL AND MANAGEMENT ACCOUNTING
BK ID B1624
CREDIT 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q.No Question Marks Total Marks
1 From the following information prepare the Balance Sheet of a Firm :
Working Capital Gap : Rs. 4,50,000
Working Capital Ratio : 2.5
Velocity of Stock & Debtors : 6 times
Quick Ratio : 1.5
Fixed Asset Turnover Ratio : 2 times
Gross Profit Margin Ratio : 20 %
Fixed Assets to Net Worth : 4/5
Capital is 2/3 of Equity
A Based on above information prepare the Balance Sheet
of a Firm
10 10
2 Write notes on :
a) Value Added Ratios
b) Balanced Score Card
A a) Value Added Ratios
b) Balanced Score Card
5
5
10
3 From the following Balance Sheet as on 31. 03. 2014 and 31. 03. 2015, prepare Cash
Flow Statement using Indirect method:
Liabilities 31.03.2014 31.03.2015
Share Capital 4,00,000 5,00,000
General Reserve 1,00,000 1,20,000
Profit and Loss Account 50,000 60,000
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Long Term Loan from Bank 1,00,000 NIL
Creditors 1,50,000 1,40,000
Provision for Tax 40,000 50,000
Total 8,40,000 8,70,000
Assets
Goodwill NIL 20,000
Land and Building 3,00,000 2,85,000
Plant and Machinery 2,50,000 3,00,000
Inventories 1,50,000 1,40,000
Receivables 1,00,000 95,000
Cash 40,000 30,000
Total 8,40,000 8,70,000
During the year 2014-15 :
i) Dividend of Rs. 60,000 was paid.
ii) Assets of a subsidiary was purchased for a consideration of Rs. 1,00,000.
The assets include Inventories Rs. 40,000 and Machinery Rs. 60,000.
iii) Depreciation written off on Machinery Rs. 25,000.
iv) Income-tax provided during the year was Rs. Rs. 50,000
A From the above Balance Sheet as on 31. 03. 2014 and
31. 03. 2015, and further information provided; prepare
a Cash Flow Statement using Indirect method:
10 10
4 Following information obtained from a manufacturing company :
01.04.2014 31.03.2015
Stock of Raw Materials 70,000 85,000
Stock of Finished Goods 1,20,000 1,40,000
Stock of Work – in – Progress 20,000 26,000
Indirect Labour - 65,000, Lubricants – 15,000, Insurance on Plant – 5,000, Purchase of
Raw Materials – 3,00,000, Sales Commission - 75,000, Salaries to salesman – 1,00,000,
Administrative Expenses – 1,50,000, Carriage Outward 20,000, Power – 20,000, Direct
Labour - 2,00,000, Depreciation on machinery – 40,000, Factory Rent – 50,000,
Property Tax on Factory Building – 14,000, Sales - 10,11,000
-----------------------------------------------------------------------------------------------------
Prepare a statement of Cost and Profit showing :
(a) Cost of Raw Materials Consumed
(b) Prime Cost
(c) Total Manufacturing Cost or Factory Cost or Works Cost
(d) Cost of Production
(e) Cost of Goods available for Sale
(f) Cost of Goods Sold
(g) Cost of sales and
(h) Profit
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A Prepare a statement of Cost and Profit showing :
a) Cost of Raw Materials Consumed
b) Prime Cost
c) Total Manufacturing Cost or Factory Cost
or Works Cost
d) Cost of Production
e) Cost of Goods available for Sale
f) Cost of Goods Sold
g) Cost of sales and
h) Profit
1
1
2
1
2
1
1
1
10
5 From the following information and assumption that the balance in hand on 1st
Jan 2016 is
Rs.1,35,000, prepare a cash budget for January 2016 to June 2016
Month Materials Sales Wages Sales &
Distribution
Overhed
Production
Overhead
Administration
Overhead
January 60,000 1,54,000 25,000 10,000 12,000 2,500
February 72,000 2,04,000 29,200 12,000 12,600 3,400
March 61,000 1,82,000 26,200 13,000 12,000 3,500
April 71,200 1,87,200 60,000 15,400 13,000 3,500
May 84,000 2,15,000 54,000 19,000 16,000 4,000
June 87,600 2,27,400 56,000 21,000 16,400 4,000
Assume that 50% are cash sales. Assets are to be required in Feb. and April. Therefore,
provision should be made for payment of Rs.26,000 and Rs.60,000 for the same. An application
has been made to a bank for grant of loan of Rs. 50,000 and it is hoped that it will be received in
the month of May. It is anticipated that a dividend of Rs.70,000 will be paid in June. Debtors
are allowed 1 month credit. Sales commission @ 3% on sales is to be paid. Creditors (for goods
and overhead) grant one month’s credit.
A From the above information prepare a Cash Budget for
six months from January 2016 to June 2016
10 10
6
The following data are obtained from the records of a company :
1st
Yr. 2nd
Year
Rs. Rs.
Sales 1,00,000 1,40,000
Profit 10,000 14,000
Calculate :
(a) P/V Ratio
(b) Break-even Point
(c) Profit or Loss when Sales amount to Rs. 80,000; and
(d) Sales required to earn a profit of Rs. 25,000
A From the above particulars calculate :
(a) P/V Ratio 2
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(b) Break-even Point
(c) Profit or Loss when Sales amount to Rs.
80,000; and
(d) Sales required to earn a profit of Rs.
25,000
2
3
3
10
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