Code: 21E00104

MBA I Semester Regular & Supplementary Examinations March 2023

FINANCIAL ACCOUNTING FOR MANAGERS
(Common to all)
(For students admitted in 2021 & 2022 only)

Time: 3 hours Max. Marks: 60

All questions carry equal marks
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SECTION – A
(Answer the following: 05 X 10 = 50 Marks)
1 (a) Discuss the objectives of accounting. 5M
(b) How do you classify the accounts? 5M
OR
2 (a) How account is useful to different types of users? 5M
(b) Explain the important conventions in brief. 5M

3 (a) Evaluate the accounting cycle in detail. 5M

(b) Distinguish between journal and ledger. 5M
OR
4 (a) How cash book is a journal as well as ledger? 5M
(b) Explain the method of preparing the petty cash book. 5M

5 A firm purchases a plant for a sum of Rs.100000 on 1st January, 2017. Installation charges 10M
are Rs.20000. Plant is estimated to scrap value of Rs.10000 at the end of its useful life of
5 years. You are required to prepare Plant Account for 5 years charging depreciation
according to: (i) Straight line method. (ii) Diminishing balance method.
OR
6 Anupalle Company Ltd. takes a periodic inventory of their stocks on chemical-X at the end 10M
of each month. The physical inventory taken on 30th June shows a balance of 1000 litres
of chemical-X in hand @2.28 per litre. The following purchases were made during July.
1st July: 14000 litres @ 2.30 per litre
7th July: 10000 litres @ 2.32 per litre
9th July: 20000 litres @ 2.33 per litre
25th July: 5000 litres @ 2.35 per litre
A physical inventory on 31st July discloses that there is a stock of 10000 litres.
You are required to compute the inventory value on 31st July, by each of the following
methods: (i) FIFO. (ii) LIFO.

7 (a) How financial statements are useful to investors? 5M

(b) Explain the du-Pont chart. 5M
OR
8 (a) What are the leverage ratios? State its significance. 5M
(b) What are the profitability ratios? Explain any five in brief. 5M

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Code: 21E00104

9 (a) Elaborate the steps in the preparation of funds flow statement. 5M

(b) Discuss the objectives of cash flow statement. 5M
OR
10 (a) What are the sources of funds? 5M
(b) Describe the cash from investing activities. 5M

SECTION – B
(Compulsory question, 01 X 10 = 10 Marks)
11 Case Study/Problem: 10M
Following is the Trial Balance and additional information of ABC Ltd.,
Trial Balance as on 31st March, 2020
Particulars Debit (Rs.) Credit
(Rs.)
Capital 20,000
Sundry Debtors 5,400
Drawings 1,800
Machinery 7000
Sundry creditors 2,800
Wages 10,000
Purchases 19,000
Opening stock 4,000
Bank balance 3,000
Carriage charges 300
Salaries 400
Rent and taxes 900
Sales 29,000
Total 51800 51800
Additional Information:
(i) Closing Stock was valued at Rs. 1,200.
(ii) Provide 10% provision for baddebts on debtors.
You are required to prepare:
(a) Trading, profit & loss accounts and
(b) A balance sheet.

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