2007 Rajiv Gandhi Proudyogiki Vishwavidyalaya(Technical University) Computer M.C.A M.C.A.(Second Semester) EXAMINATION,Nov.-Dec..,2007 Question paper
M.C.A.(Second Semester) EXAMINATION,Nov.-Dec..,2007
ACCOUNTING AND MANAGEMENT CONTROL
Time : Three Hours
Maximum Marks : 100
Minimum Pass Marks : 40
Note : Attempt one question from each Unit.
Unit - I
1. Discuss the following concepts and conventions of accounting :
(i) Money measurment concept
(ii) Realisation concept
(iii) Convention of full disclosure
(iv) Convention of Conservatism
2.(a) Differentiate between Single column, Double column and Triple column Cash Book.
(b) Explain with suitable illustrations the rules of debiting and crediting.
Unit - II
3. How will you adjust the following ?
(i) Closing Stock (ii) Accrued Rent
(ii) Prepaid Insurance (iv) Depreciation
(v) Provision for bad debts
4. Below is given the Trial Balance of Sarkar as at 31st March, 2006 You are required to
prepare the Trading and Profit & Loss A/c for the year ended 31st March, 2006 and a Balance
Sheet as at that date :
Credit Balances :
Capital Account Rs. 75000, Sales Rs. 420750, Sundry creditors Rs. 15000, Bad debts provisions
Rs. 200, Bills payable Rs. 2000.
Debit Balance :
Stock Rs. 45000, Purchases Rs. 225000, Plant and Machinery Rs. 75000. Trade charges Rs. 10000
Carriage in Rs. 2500,Carriage out Rs. 1500, Factory Rent Rs.1500, Discount Rs. 350, Insurance
Rs. 700, Sundry Debtors Rs. 60000, Office Rent Rs. 3000, Printing and Stationery Rs. 600,
General Expenses Rs. 28000, Advertising Rs. 15000, Bills Receivable Rs. 3000, Drawings
Rs. 6000, Salaries Rs. 18000, Manufacturing wages Rs. 20000, Furniture and Fixtures Rs. 7500,
Coal,Gas and Water Rs. 1000, Cash in hand Rs. 2000, Cash at Bank Rs. 12500.
Total of Trial Balance Rs. 512950.
The following adjustments are required :
(i) The closing stock amounted to Rs. 35000.
(ii) Plant and Machinery and Furniture and Fixtures are to be depreciated at 10% and 5%
(iii) Bad debts reserve to be raised to 2(1/2)% on debtors.
(iv) Provide for outstanding libilities :
Factory rent Rs. 300
Office rent Rs. 600
(v) Insurance includes Rs. 100 in respect of 2006-07.
Unit - III
5.(a) Give Journal entries for transactions resulting in flow of funds.
(b) From the following data, calculate :
(i) Break-even point expressed in amount of sales in rupees.
(ii) Number of units that must be sold to earn a profit of Rs. 60000 per year.
(iii) How many units must be sold to earn a net income of 10% of sales ?
Sales price Rs. 20 per unit
Variable Manufacturing costs Rs. 11 per unit
Variable selling costs Rs. 3 per unit
Fixed factory overheads Rs. 540000 per year
Fixed selling costs Rs. 252000 per year
6.(a) Write down the merits and demerits of FIFO and LIFO methods of inventory valuation.
(b) Record these transactions in the month of Jan. 2007 in the stores ledger by LIFO method :
1 Balance 50 units @ Rs. 4 per unit
5 Purchases order no. 10, 40 units @ Rs. 3 per unit
8 Purchases order no. 12,30 units @ Rs. 4 per unit
15 Purchases order no. 11,20 units @ Rs. 5 per unit
26 Purchases order no. 13,40 units @ Rs. 3 per unit
10 Material requisition no. 4, 70 units
12 Material requisition no. 5, 10 units
20 Material requisition no. 6, 20 units
24 Material requisition no. 7, 10 units
27 Shortage 5 units
Unit - IV
7.(a) Define Standard Costing.
(b) From the following information regarding a standard product, compute :
(iii) Usage Variance
When standard output and actual output continue to be the same.
8.(a) State the significance of budgetary control.
(b) Write a note on Cash Budget.
Unit - V
9.(a) What are the essentials of an effective management control system ?
(b) Discuss the concept of transfer pricing in brief.
10. Write a detailed note on the concept of responsibility centres.
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