MB0041 –Financial and Management Accounting

 

 

Dear students get fully solved assignments

call us at :- 08263069601 

            or

mail us at  help.mbaassignments@gmail.com

 

 

Master of Business Administration- MBA Semester 1

MB0041 –Financial and Management Accounting- 4 Credits

(Book ID: B1624)

Assignment Set- 2 (60 Marks)

Note: Answer all questions (with 300 to 400 words each) must be written within 6-8 pages. Each Question carries 10 marks 6 X 10=60

 

Q1. An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors.

a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37.

b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account.

c) An expenditure of Rs. 158 on repairs has been debited to the buildings account.

d) Rs. 80 was allowed by B as discount which has not been entered in the books.

e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account.

Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments

Hint: Total of suspense a/c = 78.74

 

Answer :

 

Q2. Distinguish between management accounting and financial accounting.

 

Answer : Financial and management accounting are both important tools for a business, but serve different purposes. A business uses accounting to determine operational plans in the future, to review past performance and to check current business functions. Management and financial accounting have different audiences, as investors are not usually involved in the day-to-day operations of the business but are

 

Q3. Draw the Balance Sheet for the following information provided by Sarawath Ltd..

a. Current Ratio                                                  : 2.50

b. Liquidity Ratio                                                 : 1.50

c. Net Working Capital                                        : Rs.300000

d. Stock Turnover Ratio                                      : 6 times

e. Ratio of Gross Profit to Sales                         : 20%

f. Fixed Asset Turnover Ratio                             : 2 times

g. Average Debt collection period                     : 2 months

h. Fixed Assets to Net Worth                             : 0.80

i. Reserve and Surplus to Capital                       : 0.50

 

Hint: B/S total 1100000

 

Answer :

 

Q4. Following is the balance sheet for the period ending 31st March 2006 and 2007. If the current year’s net loss is Rs.38,000, calculate the cash flow from operating activities.

 

  31st MARCH

 

  2006

 

2007

 

Short-term loan to employees

 

15,000

 

18,000

 

Creditors

 

30,000

 

8,000

 

Provision for doubtful debts

 

1,200

 

-

 

Bills payable

 

18,000

 

20,000

 

Stock in trade

 

15,000

 

13,000

 

Bills receivable

 

10,000

 

22,000

 

Prepaid expenses

 

800

 

600

 

Outstanding expenses

 

300

 

500

 

 

 

Hint: Net cash lost in operating activities (69800)

 

Answer :

 

 

Q5. The following data are related to the manufacture of a standard product during the month of July 2009.

 

 

Raw materials consumed

 

Rs.15,000

 

Direct wages

 

Rs. 9,000

 

 

Machine hours worked

 

900 hours

 

Machine hours rate

 

Rs.5

 

Administrative overheads

 

20% of works cost

 

Selling overheads

 

Re.0.50 per unit

 

Units produced

 

17,100

 

Units Sold

 

16,000 @ Rs.4 per unit

 

Prepare a cost sheet from the above to show:

a. The cost per unit

b. The profit per unit sold and profit for the period

 

Hint: Profit = 24000

 

Answer :

 

Q6. Write the differences between absorption costing and management costing.

 

Answer : What is Absorption Costing?

 

A management cost accounting method of expensing all the costs related with the production of a particular product is known as absorption costing. Absorption costing utilizes the total overhead costs and total direct costs related with producing a product as the cost base. The GAAP need absorption costing for external reporting. Generally accepted accounting principles (GAAP) require the absorption costing for the

 

 

 

Dear students get fully solved assignments

call us at :- 08263069601 

            or

mail us at  help.mbaassignments@gmail.com

 

About these ads

3 thoughts on “MB0041 –Financial and Management Accounting

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s