1. Fall 2012
Master of Business Administration- MBA Semester 1
MB0041 – Financial And Management Accounting - 4 Credits
(Book ID: B1624)
Assignment Set - 1 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
1. Explain the process involved in accounting.
2. The salaries paid in 2004 is Rs. 5,00,000; Salaries outstanding is
Rs. 20,000; Salaries paid in advance for 2004 is Rs. 30,000. What is the actual salary
expenditure for 2004? Which accounting principle is involved in this and explain that
principle.
3. Find the value of the following:
a. If the total assets are Rs. 87,000 and the liabilities are Rs. 47,000, find out the
amount of capital.
b. If the capital of proprietor is Rs. 4,00,000 and the total assets are Rs. 6,00,000,
what is the amount of liabilities to outsiders?
c. If creditors are Rs. 56,000, bank overdraft is Rs.1,00,000, and outstanding
expenses are Rs. 8,000, what is the total amount of assets?
d. Fixed assets are Rs.70,000 and current assets are Rs.1,00,000 and the creditors
are Rs.30,000. What is capital?
4. Enter the following transactions in the single column cash book of Gopichand.
March, 2003
1st. Commenced business with cash 20000
2nd. Bought goods for cash 5000
3rd. Sold goods for cash 4000
4th. Goods purchased from Ravi Kumar 10000
10th. Paid to Ravi Kumar 7000
14th. Cash sales 8000
18th. Purchased furniture for office 4000
22nd. Paid wages 500

2. Fall 2012
25th. Paid rent 600
30th. Received commission 4000
30th. Withdrew for personal purpose 1000
Cash balance 170000
Hint: Goods Purchased from Ravi Kumar is a credit purchase.
5. Find out the missing figures.
Office stationery Consumables
Opening stock 5000 8000
Purchased during the year 25000 ?
Closing stock 3000 6000
Consumed for the year ? 24000
 Hint : Office stationery consumed for the year =27000
Consumables purchased during the year = 22000
6. Explain the tools of management accounting.
Master of Business Administration- MBA Semester 1

3. Fall 2012
MB0041 – Financial and Management Accounting- 4 Credits
(Book ID: B1624)
Assignment Set - 2 (60 Marks)
Note: Each question carries 10 Marks. Answer all the questions.
1. Compute trend ratios and comment on the financial performance of Infosys
Technologies Ltd. from the following extract of its income statements of five years.
(in Rs. Crore)
Particulars 2010-11 2009-10 2008-09 2007-08 2006-07
Revenue 27,501 22,742 21,693 16,692 13,893
Operating Profit
8,968 7,861 7,195 5,238 4,391
(PBIDT)
PAT from ordinary
6,835 6,218 5,988 4,659 3,856
activities
(Source: Infosys Technologies Ltd. – Annual Report)
Hint: The Revenue and Operating Profit (PBIDT) have almost doubled in four years. The
PAT from ordinary activities has increased by 77.26% in the same period.
2. What is fund flow analysis? What are the objectives of analysing flow of fund?
From the following balance sheets of Joy Ltd., prepare a cash flow statement under indirect
method.
Liabilities 2005 2006
Equity share capital 3,00,000 4,00,000
8% redeemable pref. share capital 1,50,000 1,00,000
General reserve 40,000 70,000
Profit and loss 30,000 48,000
Proposed dividend 42,000 50,000
Sundry creditors 55,000 83,000
Bills payable 20,000 16,000
Provision for taxation 40,000 50,000
Total 6,77,000 8,17,000
Assets
Goodwill 1,15,000 90,000
Land and building 2,00,000 1,70,000
Plant 80,000 2,00,000
Sundry debtors 1,60,000 2,00,000
Stock 77,000 1,09,000
Bills receivable 20,000 30,000

4. Fall 2012
Cash 15,000 10,000
Bank 10,000 8,000
Total 6,77,000 8,17,000
Additional Information
a) Depreciation of Rs.10,000 and Rs.20,000 has been changed on plant and
building during the current year.
b) An interim dividend of Rs.20,000 has been paid during the current year.
c) Rs.35,000 was paid during the current year for income tax.
Hint: Cash flow from operating activities Rs.1,25,000; Cash flow from investing activities
(Rs.1,20,000); Cash flow from financing activities (Rs.12,000).
3. Calculate the cost of raw materials purchased from the following data:
Opening stock of raw materials Rs.10,000
Closing stock of raw materials Rs.15,000
Expenses on purchases Rs.5,000
Direct wages Rs.50, 000
Prime costs Rs.1, 00,000
Hint: Cost of Raw Materials purchased is Rs.50,000
4. Distinguish between absorption costing and marginal costing
5. The Anchor Company Ltd. produces most of its electrical parts in its own plant. The
company is at present considering the feasibility of buying a part from an outside supplier for
Rs.4.50 per part. If this is done, monthly costs would increase by Rs.1,000.
The part under consideration is manufactured in department 1 along with numerous other parts.
On account of discontinuing the production of this part, department 1 would have somewhat
reduced operations. The average monthly usage production of this part is 20,000 units. The
costs of producing this part on per unit basis are as follows.
Material Rs. 1.80
Labour (half-hour) 2.40
Fixed overheads 0.80
Total costs 5.00
Should the company produce this part or should it buy from an outside supplier?

5. Fall 2012
Hint:
Differential costs 7,000 per month
Favouring making of the parts 0.35 er unit
6. Explain the essential features of budgetary control.