Seat No:______________ Enrollment No:_______________

PARUL UNIVERSITY
FACULTY OF MANAGEMENT
Winter 2015-16 Examination
Semester: I Date: 07/01/2016
Subject Code: 06200104 Time: 02:00 PM to 05:00 PM
Subject Name: Accounting for Managers Total Marks: 60

Instructions:
1. Attempt all questions from each section.
2. Figures to the right indicate full marks.
3. Make suitable assumptions wherever necessary.
4. Write separate sections on separate answer sheets.

SECTION - A
Q.-1 (a) Choose the correct answer (3)
(1) Salvage value means
(a) Cash to be paid when asset is disposed off
(b) Estimated residual value
(c) Definite sale price of the asset
(d) Cash to be received when life of the asset ends.
(2) Balance sheet is always prepared
(a) For the year ended
(b) Before the year ended
(c) As on the specified date
(d) None of these
(3) Accounting is the process of matching
(a) Benefits and costs
(b) Cash Inflows and Cash Outflows
(c) Revenues and cost
(d) Potential and Real Performance
Q.-1 (b) Define (3)
(1) Amortization
(2) Contingencies
(3) Concept of Materiality

Q.-2 On 1st April 2010 in the books of Tetra Ball Bearings Ltd. a machinery account showed (8)
a balance of Rs. 4,00,000. Out of the above a part of the machine having book value
was Rs. 50,000 on that date was sold for Rs. 30,000 on 1st July 2011. On 1st January
2012 a new machine was purchased for Rs. 1,00,000.
 Show machinery account, assuming that the depreciation @ 10 % p.a is charged by
straight line method. Accounts are closed on 31st March every year.

Q.-3 (a) Write a short note on AS-10 (4)

Q.-3 (b) How accrual basis of accounting is different from cash basis of accounting? (3)
OR
Q.-3 (a) Write a short note on AS-13 (4)
Q.-3 (b) Distinguish between the management accounting and the financial accounting. (3)
Q.-4 The following is the Trial Balance extracted from the books of Shri Arvind as on Dec (9)
31, 2014 prepare trading account, profit and loss account and final balance sheet on
Dec 31, 2014 :

Particulars Debit Balance Credit Balance

(Rs.) (Rs)
Capital 2,00,000
Plant and Machinery 1,56,000
Furniture 4,000
Purchase and Sales 1,20,000 2,54,000
Returns 2,000 1,500
Opening Stock 60,000
Discount 850 1,600
Sundry Debtors/ Creditors 90,000 50,000
Salaries 15,100
Manufacturing Wages 20,000
Carriage Outwards 2,400
Provision for Doubtful Debts 1,050
Rent, Rates and Taxes 20,000
Advertisements 4,000
Cash 13,800
Total 5,08,150 5,08,150

Adjustments:
(1) Closing stock was valued at Rs. 68,440.
(2) Provision for doubtful debts is to be kept at Rs. 1,000
(3) Depreciate plant and machinery @10%.
(4) The proprietor has taken goods worth Rs. 10,000 for his personal use and
additionally distributed goods worth Rs. 2,000 as samples.
(5) Purchase of furniture Rs.1,840 has been passed through purchase book.
 SECTION - B

Q.-1 (a) Choose the correct answer (3)

(1) Which of the following will result into application of funds?
(a) sale of plant
(b) payment of dividends
(c) issue of share capital
(d) payments of creditors
(2) Sale of investment by a finance company is classified as
(a) Investing activities
(b) Financing activities
(c) Operating activities
(d) Cash equivalent
(3) The ratio which indicates how quickly debtors are converted into cash is
(a) Receivables Turnover Ratio
(b) Inventory Turnover Ratio
(c) Working capital Turnover Ratio
(d) Creditors Turnover Ratio

Q.-1 (b) Define (3)

(1) Current Ratio
(2) Debt Equity Ratio
(3) Net Profit Ratio
Q.-2 The following is the Balance Sheet of XYZ Ltd for the years 2013 and 2014. Prepare a (8)
Comparative Balance Sheet and analyze the financial position of the concern.

Particulars 31-3-2013 31-3-2014

(Rs.) (Rs.)
Equity share capital 50,00,000 50,00,000
Fixed assets 72,00,000 60,00,000
Reserve and Surplus 12,00,000 10,00,000
Investments 10,00,000 10,00,000
Long –term Loans 30,00,000 30,00,000
Current assets 21,00,000 30,00,000
Current Liabilities 11,00,000 10,00,000
(4)
Q.-3 (a) Explain Responsibility Accounting in detail.
(3)
Q.-3 (b) Major difference between IFRS & GAAP.
OR
Q.-3 (a) Explain Human Resource Accounting in detail. (4)

Q.-3 (b) Draw a Pro Forma of Fixed Assets and Depreciation, Capital and Reserve and Surplus (3)
as prescribed by notes/ schedules in Corporate Balance Sheet.

Q.-4 From the following information you are required to prepare a Cash Flow Statement of (9)
ABC Ltd. for the year ended 31st December, 2014 using the indirect method.

Balance Sheet
Liabilities 2013 2014 Assets 2013 2014
Share Capital 70,000 70,000 Plant and 50,000 91,000
Secured Loans 40,000 Machinery 15,000 40,000
Creditors 14,000 39,000 Inventory 5,000 20,000
Tax Payable 1,000 3,000 Debtors 20,000 7,000
P&L A/c 7,000 10,000 Cash 2,000 4,000
Prepaid Expenses
92,000 1,62,000 92,000 1,62,000

Profit and Loss Account

(for the ended 31st December 2014)
Rs. Rs.
To Opening Inventory 15,000 By Closing Stock 40,000
To Purchase 98,000 1,00,000
To Gross Profit c/d 27,000
1,40,000 1,40,000
To General Reserve 11,000 By Gross Profit b/d 27,000
To Depreciation 8,000
To Taxes 4,000
To Net Profit c/d 4,000
27,000 27,000
To Dividend 1,000 By Balance b/f 7,000
To Balance c/f 10,000 By Net Profit b/d 4,000
11,000 11,000