Master of Business Administration- MBA Semester 1 MB0041 Financial and Management Accounting- 4 Credits (Book ID: B1624) Assignment

Set- 2 (60 Marks)

Note: Answer all questions (with 300 to 400 words each) must be written within 6-8 pages. Each Question carries 10 marks 6 X 10=60 Q1. An accountant finds that the trial balance of his client did not tally and it showed an excess credit of Rs. 69.74. He transferred it to a suspense account and later discovered the following errors. a) Rs. 44.37 paid to Anand has been credited to his account as Rs. 34.37. b) A purchase of Rs. 145.50 has been posted as Rs. 154.50 to the purchases account. c) An expenditure of Rs. 158 on repairs has been debited to the buildings account. d) Rs. 80 was allowed by B as discount which has not been entered in the books. e) A sum of Rs. 125.05 realised on the sale of old furniture has been posted to the sales account. Give journal entries to rectify the errors and show the suspense account as it would appear after adjustments Hint: Total of suspense a/c = 78.74

For Complete Solved SMU Assignment @ 1500 to 2000 Rs Email: mba8182@gmail.com Ph: +91 -9873669404

http://www.smuassignments.net/
Q2. Distinguish between management accounting and financial accounting. Q3. Draw the Balance Sheet for the following information provided by Sarawath Ltd.. a. Current Ratio : 2.50 b. Liquidity Ratio : 1.50 c. Net Working Capital : Rs.300000 d. Stock Turnover Ratio : 6 times e. Ratio of Gross Profit to Sales : 20% f. Fixed Asset Turnover Ratio : 2 times g. Average Debt collection period : 2 months h. Fixed Assets to Net Worth : 0.80 i. Reserve and Surplus to Capital : 0.50 Hint: B/S total 1100000

Q4. Following is the balance sheet for the period ending 31st March 2006 and 2007. If the current years net loss is Rs.38,000, calculate the cash flow from operating activities.

Hint: Net cash lost in operating activities (69800) Q5. The following data are related to the manufacture of a standard product during the month of July 2009.

Prepare a cost sheet from the above to show: a. The cost per unit b. The profit per unit sold and profit for the period Hint: Profit = 24000 Q6. Write the differences between absorption costing and management costing.