PARUL INSTITUTE OF ENGINEERING & TECHNOLOGY MBA SUBJECT: ACCOUNTING FOR MANAGERS MARKS: 30 SUBJECT CODE: 810001 DATE:

: 1/10/12 MBA Sem I TIME: 10.30 am to 12.00 noon =============================================================== Instructions: 1. Attempt all questions. 2. Figures to the right indicate full marks. Q.1 Attempt the following: (10) 1. Distinguish between Trade Discount & Cash Discount with an example. 2. Accounting period Assumption 3. Accounting Entity Assumption 4. Enumerate four primary qualities of useful Accounting Information. 5. Difference between Balance sheet & Trial Balance Q.2 The following is Trial Balance of Shri. Krishna Ltd as on 31st March 2011. (10) PARTICULARS RS. PARTICULARS RS. Stock 186420 Plant & Machinery 78400 Manufacturing Wages 109740 Loose tools 12500 Manufacturing expenses 19240 Share capital 400000 Purchases 421460 Calls in arrears 1000 Bad debts 8610 Rates & electricity : factory 14210 Carriage inward 4910 Rates & electricity :office 3400 Carriage outward 9260 Insurance 12000 Advance tax paid 14290 Salaries 13000 Bank loan 5% 50000 Audit fees 1250 Interest on loan 1250 Furniture 5000 Debtors 164400 Commission (dr) 8640 Creditors 92220 Return inward 12640 Profit &loss A/C 8640 Return outward 9810 Bank account 6860 Preliminary expenses 6040 Cash 1920 Goodwill 150000 Lease hold property 64210 sales 769900 Additional Information: 1. Depreciate P&M @10% and Furniture @ 5%. 2. Loose tools are valued at Rs.10000 & closing stock was valued @ 154600. 3. Furniture of Rs.2000 was purchased during the year, which was wrongly debited to purchase Account. 4. Create bad debts of rs.1300 & a Reserve of 10% on debtors. 5. Write off 1/3 Preliminary Expense. 6. Unpaid salaries Rs. 2000. 7. Prepaid insurance Rs.2700. 8. Closing stock was valued @ 154600.

Q.3 (A) From the following information you are required to prepare Statement Showing Changes in Working Capital. (6) PARTICULARS 2009 2010 BOD 10000 12000 DEBTORS 18000 16000 CASH ON HAND 2500 5600 BILLS RECIVEABLE 6000 8200 BILLS PAYABLE 2200 O/S EXPENSES 2100 1000 CREDITORS 6500 6100 STOCK 7500 9600 INCOME RECIVED IN 1400 2500 ADVANCE O/S INCOMES 1680 PREPAID EXPENSES 2000 2800 (B) What are the benefits of Fund flow Statement? (4)