NRI INSTITUTE OF TECHNOLOGY

II MID EXAM QUESTION PAPER – MAY 2022

Year / Sem: II B.Tech, II Sem Programme: II B.Tech CIVIL, CSE, EEE, IT, DS Course Code:
( Common to all )
Course Name: MEFA Total Marks: 15 M Time: 90mins

UNIT - III

1. A) Explain features & Merits & Demerits of Partnership

B) Explain business Cycle and its phases.
2. Determine Price out Determination under Monopolistic Market.

UNIT – IV: PROBLEM . 2 ( COMPULSORY )

1. A. Explain Profitability Ratios and Give them a detail Formulas.

b. Define Accounting, accounting cycle and its significance?
2. Journalize the following transactions in the books of Mr.M.Tech Company
Date Particulars Amount
( Rs )
1/4/2015 Mr.Madan Started business with a 60000
capital

3/4/2015 Bought furniture from Furniture 2000

marts

8/4/2015 Bought goods from Devika & sons 14000

9/4/2015 Sold goods to Mahendra Singh 2000

10/4/2015 Returned goods to Devika & Sons 1000

11/4/2015 Cash Sales 75000

12/4/2015 Sold goods to Ramesh 14000

13/4/2015 Sold goods to Bombay Shop 15000

14/4/2015 Bombay Shop pays in full settlement 14000

of a/c

18/4/2015 Paid salaries 500

26/4/2015 Paid telephone bill 300

27/4/2015 Paid Devika & Sons full settlements 12500

28/4/2015 Paid wages 400

31/4/2015 Withdrew for personal use 500

 3. From the following trial balance of Vikram Co. prepare Trading account, Profit &
Losses Balance sheet for the year ending 31/3/2015.

Particulars Amount Particulars Amount

Dr Cr
Electricity 14000 Interest 16000
Received

Land 140000 Discount 6000

Received

Interest 16000 Sales 800000

Wages 50000 Returns 10000

Opening Stock 20000 Sundry Creditors 60000

Rent 24000 Capital 302000

Purchases 300000 Bills Payable 15000

Office Expenses 30000

Building 400000

Salaries 90000

Power gas and 30000

Water

Returns 20000

Furniture 15000

Sundry Debtors 60000

120900
Total 1209000
0

Adjustments:

1. Outstanding Salaries Rs.10000.

2. Closing Stock Rs.80000.
3. Depreciate Buildings @10% p.a
4. Interest Received in advance Rs.2000.
5. Write off bad debts Rs.10000.
UNIT – V PROBLEM .
1. A. Briefly explain IRR Steps in Capital Budgeting.
 b. define Capital Budgeting , and Explain Methods of Capital Budgeting.
2. A company is considering an investment proposal Rs.55000/-. The facility has a life
expectancy of 5years and no salvage value. The tax rate is 30%. Assume the firm uses
single line depreciation and the same is allowed for tax purposes. The estimated cash
flow before depreciation and tax (CFBT) from the investment proposal are as
follows.Calculate NPV & PI

Year 1 2 3 4 5

Cash
13600 16590 14769 13660 24855
flows

DCF
@ 0.909 0.826 0.751 0.683 0.621
10%

3. Given that a projects yields the following cash inflows for 6 years at an original cost of
Investment Rs.50000. find out IRR method.

Year 1 2 3 4 5 6

Cash
inflow 0 16000 24000 30000 30000 30000
s