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1 Analyze the following transaction under traditional approach. 
18.1.2011 Received a cheque from a customer, Sanjay at 5 p.m. Rs.20,000 
19.1.2011 Paid Ramu by cheque Rs.1,50,000 
20.1.2011 Paid salary Rs. 30,000 
20.1.2011 Paid rent by cheque Rs. 8,000 
21.1.2011 Goods withdrawn for personal use Rs. 5,000 
25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000 
26.1.2011 Received an advance from customers Rs. 3,00,000 
31.1.2011 Paid interest on loan Rs. 5,000 
31.1.2011 Paid instalment of loan Rs. 25,000 
31.1.2011 Interest allowed by bank Rs. 8,000 
Analysis of transaction –with accounts involved-nature of account-affects and debit/credit 
2 The trial balance of Nilgiris Co Ltd., as taken on 31st December, 2002 did not tally and the 
difference was carried to suspense account. The following errors were detected 
subsequently. 
a) Sales book total for November was under cast by Rs. 1200. 
b) Purchase of new equipment costing Rs. 9475 has been posted to Purchases a/c. 
c) Discount received Rs.1250 and discount allowed Rs. 850 in September 2002 have been 
posted to wrong sides of discount account. 
d) A cheque received from Mr. Longford for Rs. 1500 for goods sold to him on credit earlier, 
though entered correctly in the cash book has been posted in his account as Rs. 1050. 
e) Stocks worth Rs. 255 taken for use by Mr Dayananda, the Managing Director, have been 
entered in sales day book. 
f) While carrying forward, the total in Returns Inwards Book has been taken as Rs. 674 
instead of Rs. 647. 
g) An amount paid to cashier, Mr. Ramachandra, Rs. 775 as salary for the month of November 
has been debited to his personal account as Rs. 757. 
Pass journal entries and draw up the suspense account. 
Journal entries of all the transactions 
Suspense account with Conclusion 
3 From the given trial balance draft an Adjusted Trial Balance. 
Trial Balance as on 31.03.2011 
Debit balances Rs. Credit balances Rs. 
Furniture & Fittings 10000 Bank Over Draft 16000 
Buildings 500000 Capital Account 400000 
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Sales Returns 1000 Purchase Returns 4000 
Bad Debts 2000 Sundry Creditors 30000 
Sundry Debtors 25000 Commission 5000 
Purchases 90000 Sales 235000 
Advertising 20000 
Cash 10000 
Taxes & Insurance 5000 
General Expenses 7000 
Salaries 20000 
TOTAL 690000 TOTAL 690000 
Adjustments: 
1. Charge depreciation at 10% on Buildings and Furniture and fittings. 
2. Write off further bad debts 1000 
3. Taxes and Insurance prepaid 2000 
4. Outstanding salaries 5000 
5. Commission received in advance1000 
[Preparation of ledger accounts-6 
Preparation of trial balance-4] 
4 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 27501 22742 21693 16692 13893 
Operating Profit (PBIDT) 8968 7861 7195 5238 4391 
PAT from ordinary activities 6835 6218 5988 4659 3856 
(Source: Infosys Technologies Ltd. – Annual Report) 
[Preparation of trend analysis-4 
Preparation of trend ratios-4 
Conclusion-2] 
5 Give the meaning of cash flow analysis and put down the objectives of cash flow analysis. 
Explain the preparation of cash flow statement. 
Meaning of cash flow analysis 
Objectives of cash flow analysis 
Explanation of preparation of cash flow analysis 
6 Write the assumptions of marginal costing. Differentiate between absorption costing and 
marginal costing. 
Assumptions of marginal costing (all 7 points) 
Differences of marginal and absorption costing (Includes all 8 points) 
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MB0041 Financial Accounting

  • 1. WWW.SMUSOLVEDASSIGNMENTS.COM GET SOLVED ASSIGNMENTS AT Rs.150 per subject or Rs.700 per semester VISIT WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at solvemyassignments@gmail.com 1 Analyze the following transaction under traditional approach. 18.1.2011 Received a cheque from a customer, Sanjay at 5 p.m. Rs.20,000 19.1.2011 Paid Ramu by cheque Rs.1,50,000 20.1.2011 Paid salary Rs. 30,000 20.1.2011 Paid rent by cheque Rs. 8,000 21.1.2011 Goods withdrawn for personal use Rs. 5,000 25.1.2011 Paid an advance to suppliers of goods Rs. 1,00,000 26.1.2011 Received an advance from customers Rs. 3,00,000 31.1.2011 Paid interest on loan Rs. 5,000 31.1.2011 Paid instalment of loan Rs. 25,000 31.1.2011 Interest allowed by bank Rs. 8,000 Analysis of transaction –with accounts involved-nature of account-affects and debit/credit 2 The trial balance of Nilgiris Co Ltd., as taken on 31st December, 2002 did not tally and the difference was carried to suspense account. The following errors were detected subsequently. a) Sales book total for November was under cast by Rs. 1200. b) Purchase of new equipment costing Rs. 9475 has been posted to Purchases a/c. c) Discount received Rs.1250 and discount allowed Rs. 850 in September 2002 have been posted to wrong sides of discount account. d) A cheque received from Mr. Longford for Rs. 1500 for goods sold to him on credit earlier, though entered correctly in the cash book has been posted in his account as Rs. 1050. e) Stocks worth Rs. 255 taken for use by Mr Dayananda, the Managing Director, have been entered in sales day book. f) While carrying forward, the total in Returns Inwards Book has been taken as Rs. 674 instead of Rs. 647. g) An amount paid to cashier, Mr. Ramachandra, Rs. 775 as salary for the month of November has been debited to his personal account as Rs. 757. Pass journal entries and draw up the suspense account. Journal entries of all the transactions Suspense account with Conclusion 3 From the given trial balance draft an Adjusted Trial Balance. Trial Balance as on 31.03.2011 Debit balances Rs. Credit balances Rs. Furniture & Fittings 10000 Bank Over Draft 16000 Buildings 500000 Capital Account 400000 EMAIL US AT- solvemyassignments@gmail.com
  • 2. WWW.SMUSOLVEDASSIGNMENTS.COM Sales Returns 1000 Purchase Returns 4000 Bad Debts 2000 Sundry Creditors 30000 Sundry Debtors 25000 Commission 5000 Purchases 90000 Sales 235000 Advertising 20000 Cash 10000 Taxes & Insurance 5000 General Expenses 7000 Salaries 20000 TOTAL 690000 TOTAL 690000 Adjustments: 1. Charge depreciation at 10% on Buildings and Furniture and fittings. 2. Write off further bad debts 1000 3. Taxes and Insurance prepaid 2000 4. Outstanding salaries 5000 5. Commission received in advance1000 [Preparation of ledger accounts-6 Preparation of trial balance-4] 4 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 27501 22742 21693 16692 13893 Operating Profit (PBIDT) 8968 7861 7195 5238 4391 PAT from ordinary activities 6835 6218 5988 4659 3856 (Source: Infosys Technologies Ltd. – Annual Report) [Preparation of trend analysis-4 Preparation of trend ratios-4 Conclusion-2] 5 Give the meaning of cash flow analysis and put down the objectives of cash flow analysis. Explain the preparation of cash flow statement. Meaning of cash flow analysis Objectives of cash flow analysis Explanation of preparation of cash flow analysis 6 Write the assumptions of marginal costing. Differentiate between absorption costing and marginal costing. Assumptions of marginal costing (all 7 points) Differences of marginal and absorption costing (Includes all 8 points) GET SOLVED ASSIGNMENTS AT Rs.150 per subject or Rs.700 per semester VISIT WWW.SMUSOLVEDASSIGNMENTS.COM EMAIL US AT- solvemyassignments@gmail.com
  • 3. WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at solvemyassignments@gmail.com EMAIL US AT- solvemyassignments@gmail.com