1.

Prepare Journal and Ledger Accounts from the

following information
1st Jan,2002: Started business with cash 80,000.
5th Jan, 2002: Purchased goods from Mounika for cash 5,000.
8th Jan, 2002: Sold goods to vardhini for credit 6,000.
15th Jan, 2002: Paid salaries 6,500.
28th Jan, 2002: Brought Machinery 40,000.
30th Jan,2002: Rent received 8,000.
2 2. What are the various steps in Accounting cycle?
3. Write the objectives of capital budgeting.
4. Write the differences between double entry and single
entry book system.

5. Prepare trading, profit & loss account and balance sheet

for the year ended 31-03-2015 of Sri Sanjay. Trial Balance
as on 31-03-2015
Particulars Debit (₹.) Credit (₹.)
Capital - 37000
Cash in hand 4000 -
Purchases, sales 45000 95000
Returns 500 600
Wages 8500 -
Power& fuel 3500 -
Salaries 6500 -
Carriage on 1800 -
purchases
Stock(1-04-2014) 7200 -
Buildings 25000 -
Machinery 15000 -
Furniture 5000 -
Debtors, Creditors 12000 9000
General expenses 2600 -
Drawings 5000 -
1,41,600 1,41,600
Adjustments
1) Closing Stock ₹.14000 2) Wages outstanding ₹.500.
6. List out the various Accounting Concepts.

7. Find out PBP and ARR from the following data

related to CNC machine 1 and 2.
Cost                                          3,00,000
Estimated life                           3 years 
Estimated scrape value        60,000
Additional working capital required   2,50,000

The estimated cash inflow after tax for each machine are as given
below.
 Years  CNC machine 1 CNC machine 2
1 1,50,000 2,00,000
2 3,00,000 3,00,000
3 1,50,000 2,50,000
4    - 1,50,000
Comment which project is better.

8. Define financial management. Explain its objectives.

9. Two projects costing Rs. 20,000 each have the
following cash inflows. Calculate NPV & PI @ 12%
and comment which project is better.
Year  Project A  Project B
1 10,000 12,000
2 9,000 12,000
3 7,000 8,000
4 8,000 7,000
5 12,000 7,000
10. Define capital budgeting. Explain about the importance of
capital budgeting.

11. Define cost of capital. Explain about measurement of cost

of capital

12. Write a short note on weighted average cost of capital.

(OR)
13. Explain the term “cost of preference capital”
14. Write a short note on retained earnings.
15. Explain the EBIT-EPS analysis.
 16. From the following ledger balances, prepare a Trading, P&L a/c and Balance
sheet for the year ended 31-12-2010.
Debit Amount Credit Amount
(₹.) (₹.)
Purchases 75000 Capital 50000
Returns 1000 Sales 1,75,000
Carriage 1,200 Creditors 25000
Rent & Rates 2,500 Returns 4700
Stock(1-1-2010) 15000 Interest 500
Debtors 40000 Discount Received 2200
Salaries 22500
Wages 10800
Plant & 50,000
Machinery
Furniture 10,000
Cash at Bank 29,400
2,57,400 2,57,400
Adjustments: Closing stock ₹. 15,000, Outstanding rent ₹.300.

17. Briefly explain golden rules of Accounting.

(OR)
18.The following Trading and Profit and Loss Account of Fantasy Ltd. for the
year 31‐3‐2000 is given below:

Particular Rs. Particular Rs.

To Opening Stock    76,250 By Sales    5,00,000
To Purchases   3,15,250 By Closing stock 98,500
 To Carriage and Freight    2,000 By Gross Profit
To Wages    5,000 b/d  
To Gross Profit b/d 2,00,000

5,98,500 5,98,500
To Administration 1,01,000 By Non‐ 2,00,000
expenses          12,000 operating 1,500
To Selling and Dist. 2,000 incomes:  By 3,750
expenses      7,000 Interest on 750
To Non‐operating 84,000 Securities  
expenses      By Dividend on
To Financial Expenses         shares   
To Net Profit c/d   By Profit on sale
of shares
2,06,000 2,06,000
Calculate: 1. Gross Profit Ratio 2. Operating Ratio.        

19. What is ratio? Explain the classifications of ratio analysis.

20. Initial Investment for a Project cost is Rs. 20,000 estimated cash inflows
are
Years 1 2 3 4
Project-A 11,750 12,500 12,500 13,500

From the above information calculate PBP and ARR Methods.

21. Explain the process of capital budgeting.
22. From the following information calculate NPV and PI.
Items Project-I
Investment 80,000
Life Time 5 Years
Scrap value 4,000
Annual Cash inflows
1 24,000
2 36,000
3 14,000
4 10,000
5 8,000
Assuming that discount rate @ 15%.

23. Define capital budgeting. Explain the different methods of capital

budgeting.

24. Explain weighted average cost of capital and marginal cost of capital.
25. Write a short note on Cost of debt.
26. Explain about measurement of cost of capital

27. Write a short note on Cost of equity.

28. Elaborate on the methods of capital budgeting techniques.
29. State the importance and limitationsof Ratio analysis.
30. Elaborate on profitability ratios.