This document contains the question paper for the internal examination in financial and management accounting for the MBA 1st semester at the Kedarnath Aggarwal Institute of Management in November 2017. The paper is divided into two sections. Section A contains 8 short answer questions worth 2 marks each. Section B contains 8 questions covering 4 units, requiring students to attempt 4 questions by selecting 1 from each unit. The questions assess topics like limitations of financial accounting, differences between depreciation methods, break-even analysis, accounting principles, cost classification and determination, ratio analysis, budgets, cash flow and fund flow statements, and cash budget preparation.

1. Kedarnath Aggarwal Institute of Management
Internal Examinations, November -2017, MBA 1st Semester
Subject: financial and Management Accounting
Time – 3 Hours M.M 80
Note: The question paper shall be divide in two section.SECTION “A” shall comprise eight short answer carrying
two marks each, which shall be compulsory. SECTION “B” shall comprise of 8 questions,required to attempt four
questions selecting one question from each unit.
Section – A
a. Give any two limitation of financial accounting/?
b. Mention difference between straight line and written down value method of depreciation?
c. What do you mean by contribution analysis?
d. How to compute breakeven point?
e. Define advantages ofmanagement accounting?
f. Define liquidity ratio?
g. Explain main objective of preparing budgets?
h. Any two relationship between financial accounting and cost accounting?
Section – B
Unit – I
1. What do you mean by financial accounting? Explain in brief the process and objective of it?
2. Explain accounting principles and fundamental accounting conventions?
Unit- II
3. Discuss various elements & classification of costs and also mention managerial uses of cost
accounting?
4.

2. Adjustments:
1. Outstanding wages of Rs.5000.
2. Write off 5% depreciation on freehold premises and 10% on office furniture.
3. Rent rates & Insurance to the extent of Rs.200 belongs to 2010.
4. Closing stock as on 31.12.2009 is Rs.52000.
5. Charge interest on capital @ 5%.
UNIT-III
5. The sales turnoverand profit of during two years were as follow. You have to find out:-
Years Sales(Rs.) Profit(Rs.)
2003 1,40,000 15,000
2004 1,60,000 20,000
i) P/V Ratio
ii) Salesrequiredtoearn a profitof rs. 40,000
iii) Profitwhensalesare Rs.1,20,000
6. write short note on:-
A) balance scorecardmodel b) value addedconceptc) cost managementsystemd) functionof
managementaccounting
UNIT-IV
7. Explaindifference betweencashflowandfundflow statementwithformatandusesof statement?
8. A companyis expectingtohave Rs.32,000 cash inhand on1/4/2005 andit requestyoutoprepare
cash budgetforthe three monthsApril toJune 2005. The followinginformation’sissuppliedtoyou:-
Month Sales Purchases Wages Expenses
February 70,000 44,000 6,000 5,000
March 80,000 56,000 9,000 6,000
April 96,000 60,000 9,000 7,000
May 1,00,000 68,000 11,000 9,000
June 1,20,000 62,000 14,000 9,000
Information:-
a) Periodof creditallowedbysuppliers istwomonths
b) 25% of salesisfor cash and the periodof creditallowedtocustomersforcreditsalesisone
month.
c) Delayinpaymentof wagesand expensesone month.
d) Income tax Rs. 28,000 is to be paidinJune 2005.