Question No 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21.1.2011 Goods withdrawn for personal use Rs. 5,000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

Question No 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.

  1. a) Sales book total for November was under cast by Rs. 1200.
  2. b) Purchase of new equipment costing Rs. 9475 has been posted to Purchases a/c.
  3. c) Discount received Rs.1250 and discount allowed Rs. 850 in September 2002 have been posted to wrong sides of discount account.
  4. 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.
  5. e) Stocks worth Rs. 255 taken for use by Mr. Dayananda, the Managing Director, have been entered in sales day book.
  6. f) While carrying forward, the total in Returns Inwards Book has been taken as Rs. 674 instead of Rs. 647.
  7. 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

Question No 3.

From the given trial balance draft an Adjusted Trial Balance.

Question No 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.

Question No 5.

Give the meaning of cash flow analysis and put down the objectives of cash flow analysis. Explain the preparation of cash flow statement.

Question No 6.

Write the assumptions of marginal costing. Differentiate between absorption costing and marginal costing.

SKU: mb0041-financial-and-management-accounting-semester-1 Category: