8/12/2019 08MBA14 May.june 2010

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8MBA 43 a. What is accounting equation?b. ABC ltd has the following capital structure:20,000 equity shares ofRs.100 each10 5000 preference shares ofRs.100 each10 5000 debentures of Rs.100 each

03Marks)07Marks)Rs.20,00,000Rs. 5,00,000Rs. 5,00,000Rs.30,00,000

During the previous year the company made an operating profit EBIT) of Rs.l 0,00,000.Determine the earnings per share BPS), dividend per share DPS) and price earnings ratioPIE). You may assume: payout policy of 50 , tax rate 50 and market price per share200.c. Give detailed explanation of any five accounting concepts. 10Marks)4 a. What are the advantages of maintaining a petty cash book? 03Marks)b. Mention the merits of ratio analysis. 07Marks)c. Y CO.ltd purchased a plant on 1/01/2007 at a cost of Rs.4500. The working life of the plantis estimated to be four years. The scrap value of the same is estimated at Rs.500 at the end offourth year. Calculate the annual depreciation and prepare plant account and depreciationaccount for the four years ending 31/12/2004 under straight line method. 10Marks)5 a. Explain the following ratios:i) Debtors turnover ratio ii) Creditors turnover ratio iii) Stock turnover ratioiv) Sales to capital employed v) Sales to total assets 05Marks)b. The following particulars relate to receipt and issues of a material, during the month ofMay 2009:4/05/2009 Received 500 units at Rs.2.00 each8/05/2009 Received 350 units at Rs.2.10 each12/05/2009 Issued 600 units16/05/2009 Received 600 units at Rs.2.20 each20/05/2009 Issued 450 units24/05/2009 Received 500 units at Rs.2.30 each28/05/2009 Issued 500units30/05/2009 Issued 100units

Prepare stores ledger account on the basis of LIFOmethod and FIFOmethod. 15Marks)6 a. Distinguish between equity shares and debentures.b. Balance sheet of S ltd stood as on 31/03/2009 as : 5Marks)5Marks)

Additional information:Market value of equity shares = Rs.5000; PBIT = Rs.l ,50,00,000; interest = Rs.40,00,000;PBT = Rs.l,lO,OO,OOO;income tax = Rs.lO,OO,OOO;AT = Rs.1,00,00,000. Dividenddeclared to equity 10 . Calculate the following ratios:

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Liabilities Amount Assets Amountakhs) lakhs)30,000 equity shares of Fixed assets 500

Rs.1000 each 300 Investment 5010,000 6 preference Current assets 750shares ofRs.lOO each 10 Less: current liabilities 300 450310 Miscellaneous expenses 10Reserves and surplus 100 410Long term liability 6001010 1010

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08MBA14

Question No.6 b continued...i) Return on capital employed (ROCE)I iii) Returnonnetworth(RONW)v) Dividend per share (DPS)vii) Dividend yieldix) Price earning ratioii) Return on total assets (ROTA)iv) Earning per share (EPS)vi) Divid~ 1dpayout ratio (DIP)viii) Earnings yield

7 a. List few techniques or tools of financial statement analysis.b. Explain the following terms:i) Depreciation ii) Contra entries iii) Credit notec. Explain the procedme for preparation of fund flow statement.

(03Marks)(07Marks)(10Marks)

8 FoIl trial bal t ted fr, the book f D ltd 31/12/2008: (20Marks)

You are required to prepare trading, P and L Ale and balance sheet for the year ending31/12/08.Adjustments:i) A new machine was installed on 31/12/08 at a cost of Rs.1400 which was not paid fornor has any entry been made.ii) Depreciation 5 on machinery and 20 on loose tools.iii) Loose tools were made by the workers of the business and wages of Rs.1500 and

. pmchases of Rs.500have to be transferredfrom the account to loose tool accountbefore calculation of depreciation.iv) Sales include Rs.I000 resale without profits, closing stock was valued at Rs.14000.v) Goods of Rs.2000 were received on 29/12/08 but the invoice was omitted to berecorded in pmchase book.vi) Make provision for bad debts at 5 on debtors. Also provide for discount at 2 ondebtors as well as on creditors.

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Dr CrD's capital - 35000D's drawings 6000 -Purchases and sales 69,500 1,10,000Stock (1/4/08) 12000 -Returninward 3000 -Wages 9500 -Investment 10,000 -Interest on the above - 1200Interestfromthebank - 400Discount allowed and earned 1300 1100Staff salaries 9000 -Rent,ratesandtaxes 2000 -Printingandstationary 1200 -Baddebtswrittenoff 500 -Miscellaneousexpenses 620 -Machinery 8000 -Loosetools 1000 -Sundry debtors and creditors 20,000 13,000Bills receivable and payable 9000 8900Cash and bank balance 6980 -

1,69,600 1,69,600