August 2009 Bachelor of Computer Application (BCA) Semester 3 BC0044 Accounting and Financial Management

(Book ID: B0805)

4 Credits

Assignment Set 1 (60 Marks)

Answer the following questions:

1. The Analysis of flow of funds through an organization can be very useful to the

management. Elucidate

(10 marks)

2.

Is the agreement of trail balance a conclusive proof of the accuracy of a book keeper? If not, what are the errors, which remain undetected by the trail balance ? (10 Marks)

3. From the following trail balance extracted from the books of Mr. Ram, prepare Trading A/c, P&L A/c and Balance Sheet for the year ending 31st March 2008. (20 Marks) Trail Balance as at 31st March 2008 Stock as on 1-4-2007 Purchases & Sales Returns Capital Drawings Land and Buildings Furniture & Fittings Sundry Debtors and Creditors Dr.(Rs.) Cr. (Rs.) 62500 90300 137200 2200 1300 30000 4500 30000 8000 25000 45000

Cash in Hand Investments Interest Commission Direct expenditure Postages, Stationery and Phones Fire Insurance Premium Salaries Bank Over Draft

3500 10000 2500 3000 7500 2500 2000 11000 259000 40000 259000

Additional Information : i) ii) Closing Stock is Valued at Rs. 65,000 Goods worth Rs.500 are reported to have been taken away by the proprietor for his personal use at home during 07-08 iii) iv) Interest on Investments Rs.500is yet to be received Depreciation is to be provided on Land & Buildings @ 5% and on Furniture & Fittings @10% v) Make provision for Doubtful debts @ 5%

4. Explain the factors affecting financial plans. ( 10 Marks)

5. The investment, financing and dividend decisions are interlinked. Comment. ( 10 Marks)

August 2009 Bachelor of Computer Application (BCA) Semester 3 BC0044 Accounting and Financial Management
(Book ID: B0805)

4 Credits

Assignment Set 2 (60 Marks)

Answer the following questions:

1. What are the basic accounting concepts ? Explain their implications. (10 Marks) 2. Explain various techniques of inventory management. ( 10 Marks)

3. Efficient cash management will aim at maximizing the availability of cash inflows by decentralizing collections and decelerating cash outflows by centralizing

disbursements Discuss.

(10 Marks)

4. Enter the following transactions in a cashbook with cash, bank and discount columns. (15 Marks) 2008 Jan.1 Commenced business with Rs.16,000 in cash Jan.2 Paid into bank Rs. 14,500 Jan.3 Bought goods for Rs. 3,850 and paid by cheque. Jan.4 Bought furniture for cash Rs. 680 Jan.5 Sold goods for cash Rs. 2,600 and deposited the same into bank. Jan.10 Bought goods for Rs. 4,850 and paid by cheque. Jan.11 Bought stationery for Rs. 185 Jan.15 Received cash from Hegde Rs.680 allowing him a discount of Rs. 20 Jan.20 Paid Raj his dues by cheque Rs. 240 receiving a discount of Rs.10 Jan.25 Paid Chandra by cheque Rs. 400 Jan.26 Sold goods for cash Rs. 585 and remitted the same into the bank. Jan.27 Our cheque to Chandra returned dishonored. Jan.29 Drew cheque for salary Rs. 2,365 Jan.31 Drew cheque for personal use Rs 100 5. The following financial information is furnished by Aditya Mills Ltd. for the current year : (15 Marks)

Balance Sheet as on 31-3-2008 Liabilities Equity Share Capital Retained Earnings Sundry Creditors Bills Payable Other Current Liabilities Amount 1000000 368000 104000 200000 20000 1692000 Assets Plant & Equipment Land & Buildings cash Sundry Debtors Stock Prepaid Insurance Amount 640000 80000 160000 320000 480000 12000 1692000

Income statement as on 31-3-2008 Sales Less : Cost of Goods Sold Gross Profit Less : Operating Expenses Operating Profit Less : Taxes (0.35) Net Profit after taxes Calculate : (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Current ratio Acid-Test ratio Stock Turnover Ratio Debtors Turnover Ratio Creditors Turnover ratio Gross Profit Ratio Net Profit Ratio Return on equity capital 4000000 3080000 920000 680000 240000 84000 156000