2006 Indira Gandhi National Open University (IGNOU) Post Graduate Diploma Computer Application CS-54 : Finance & Accounting on Computers June, 2006 Question paper
|
|
|
PGDCA \ / MCA (II Yr)
Term-End Examination
June, 2006
CS-54 : Finance & Accounting on Computers
Time: 3 hours
Maximum Marks: 75
Note : Question No. 5 is compulsory. Answer any three questions from the rest.
1. (a) Explain, in detail, the following accounting concepts : 9
(i) Cost concept
(ii) Accrual concept
(iii) Consistency concept
(b) "Accounting is closely concerned with control," Explain the statement. Discuss the role of accounting feedback in the process of control. 6
2. From the following balances taken from the books of M/s Ram Kishore & Co, prepare a Trading and Profit & Loss account for the year ending December 31st, 2004 and balance sheet as on that date. 15
Particulars Amount in Rs. (Dr) Amount in Rs. (Cr)
Stock (1.1.2004) 17,000 -----
Debtors & Creditors 25,000 22,000
Purchases and Sales 89,000 1,15,000
Returns 17,000 12,000
Drawing and Capital 8,000 1,25,000
Fire insurance premium 2,000 -----
Life insurance premium 5,000 -----
Income tax paid 10,000 -----
Bills receivable and payable 14,000 16,000
Sales Tax Payable ---- 12,000
Wages and Salaries 18,000 -----
Telephone expenses 3,000 -----
Sales promotion expenses 21,000 -----
Cash & Bank overdraft 5,000 14,000
Audit fees 8,000 -----
Discount 4,000 1,000
Investments 60,000 -----
Interest on investment ----- 5,000
Interest on bank overdraft 6,000 -----
Rent paid 12,000 -----
Bad debts recovered ---- 2,000
Total 3,24,000 3,24,000
Closing Stock as on 31st December, 2004 amounted to Rs. 25,000.
3. Explain, in detail, the features of an appropriate capital structure. Also explain the various factors which determine and influence the capital structure of a firm. 15
4. (a) Examine different classes of capital projects. Explain why they are approached differently. 8
(b) Explain the concept of Zero Base Budgeting, Also give four of its advantages and three disadvantages. 7
5. (a) The following figures relate to a company manufacturing a varied range of products :
Particulars Total Sales (Rs.) Total Cost (Rs.)
Year ended 31st March. 2003 22,23,000 19,83,600
Year ended 31st March, 2004 24,51,000 27,43,200
Assuming stability in price with variable costs carefully controlled to reflect predetermined relationships and an unvarying fixed cost, calculate
(i) The Profit Volume ratio
(ii) Fixed Costs
(iii) Fixed Costs percentage to Sales
(iv) Break even Point
(v) Margin of Safety for the year 2003 and 2004. 5
(b) XYZ Ltd. manufacturer of industrial valves provides the following information for the year ended 31st March, 2005.
Particulars Per unit Total
Sales (15,000 valves) (i) 25 3,75,000
Production Overheads
Variable
Fixed
15 2,25,000
3 45,000
(ii) 18 2,70,000
Gross Profit
Administration, selling and distribution overheads (Fixed)
Net Profit
7 1,05,000
32,000
73,000
The actual Sales, Production and Stocks for the yeay are as under :
Particulars Quarter Total
I II III IV
Opening Stock ----- 2,000 1,000 4,000 ----
Production 6,000 4,000 5,000 3,000 18,000
Sales 4,000 5,000 2,000 4,000 15,000
Closing Stock 2,000 1,000 4,000 3,000 3,000
You are required to prepare quarterly statements of profitability on the basis of Absorption Costing and Marginal Costing. 15
Return to question paper search
|