HYDERABAD INSTITUTE OF TECHNOLOGY & MANAGEMENT (AUTONOMOUS)
Gowdavelli, -Medchal Dist. – 501 401
CONTINUOUS INTERNAL EVALUATION MID-I Exam Odd Semester : 2024-25
I Yr. I Sem /
Faculty In-Charge : DR.SHEELA SINGH THAKUR
Branch
Subject Name :BEFA Time : 1
Date :
Subject Code :24BS1MS01 Hour
Q. Bloom’s
PART-A (1 Mark Question) Marks COs POs
No Level
Module – III
1 Define Market? What are Market Structure? 2 1 3 1
2 List the pricing strategies that can be used to enter a new market. 2 2 3 1
3 Identify one advantage and one disadvantages of Monopoly Market? 2 1 3 1
4 What is Pricing Strategy? List out any 2 Pricing Strategy? 2 1 3 1
5 Elaborate what is Break Even point? 2 1 3 1
Module – IV
1 Define Financial Accounting? Examples? 2 1 3 1,2
2 What is the correct journal entry for the transaction: "Goods purchased for 2 2 4 1,2
₹20,000 on cash"?
3 If opening stock is ₹10,000, purchases are ₹40,000, and closing stock is 2 2 4 1,2
₹15,000, the cost of goods sold is:
4 Identify what is Trial balance? List out the Features of Trial Balance? 2 2 4 1,2
5 Given the following data, calculate Gross Profit: (Sales: ₹1,00,000, 2 2 4 1,2
Purchases: ₹70,000, Closing Stock: ₹20,000, Opening Stock: ₹10,000 )
Module – V
1 Define the term Ratios? And 2 Features of Ratio Analysis? 2 1 5 2
2 What is Debt equity Ratios? 2 1 5 2
3 List twoProfitability Ratios? 2 1 5 2
4 Explain Current Ratios and Liquidity Ratios? 2 1 5 2
5 Distinguish between Cash Flow Statement and Funds Flow Statements? 2 1 5 2
Q. Bloom’s
PART-B ( 5 Mark Question) Marks COs POs
No Level
Module – III
1 Explain the structure of the Market? List out the of Price Determinants 5 1 3 1
of Market?
2 Discuss the significance of Pricing Strategies? What are its Types with 5 2 3 1
Examples?
3 Analyze the importance and Disadvantages of Break-Even Analysis. 5 1 3 1
4 Explain What is Oligopoly? What are its Advantages and Disadvantages. 5 1 3 1
5 What kind of market is Indian Railways? Explain with reasons. List the 5 3 3 1
characteristics of this market.
Module – IV
1 Prepare Journal Entries for 5 1 4 1,2
On 01 April 2016 Anil started business with Rs. 100,000 and other
transactions for the month are:
02 April. Purchase Furniture for Cash Rs. 7,000.
04: Paid Rs. 3,000 cash for an insurance policy covering the next 24 months.
07: Services are performed and clients are billed for Rs. 10,000.
08 April. Purchase Goods for Cash Rs. 2,000 and for Credit Rs. 1,000 from
Kiran Retail Store.
13: Purchased office supplies for Rs. 1,400. Cash paid Rs. 400 and remaining
outstanding.
14 April. Sold Goods to Krishna Brothers Rs. 12,000 and Cash Sales Rs. 5,000.
18 April. Owner withdrew of worth Rs. 2,000 for personal use.
20: Received Rs. 2,000 cash in photography fees earned previously.
22 April. Paid Kiran Retail Store Rs. 500.
24: The client immediately pays Rs. 15,000 for services to be performed at a
later date.
26 April. Received Rs. 10,000 from Krishna Brothers.
29: In addition, the business acquires photography equipment. The purchase
price is Rs. 100,000, pays Rs. 25,000 cash and signs a note for the balance.
30 April. Paid Salaries Expense Rs. 2,000
2 Particulars (Dr) Amount (Cr) Narration 5 3 4 1,2
1. Capital (Being capital introduced
Cash A/c ₹50,000 Capital A/c
Induced into the business)
Interest
(Being interest on capital
2. Interest on
₹2,000 Capital A/c credited to owner's capital
on Capital Capital
account)
A/c
3. Furniture Furniture (Being furniture purchased
₹10,000 Cash A/c
Purchase A/c for cash)
4. Furniture Furniture (Being furniture sold for
Cash A/c ₹8,000
Sale A/c cash)
5. Sale of Mr.
(Being goods sold on credit
Goods to Rohan ₹25,000 Sales A/c
to Mr. Rohan)
Mr. Rohan A/c
6. Mr. (Being cash received from
Mr. Rohan
Rohan Paid Cash A/c ₹25,000 Mr. Rohan against
A/c
Cash outstanding dues)
7. Purchase
of Services Services Mr. Rohan (Being services purchased
₹5,000
from Mr. A/c A/c on credit from Mr. Rohan)
Rohan
8. Payment Mr. (Being payment made to
to Mr. Rohan ₹5,000 Cash A/c Mr. Rohan for services
Rohan A/c purchased)
Prepare Ledger entries for cash and capital accounts. Prepare the final
accounts (Trail Balance, Profit & Loss Account and Balance Sheet)
3 Break Even Analysis With the data in the table calculate 5 2 4 1,2
Particulars Sales Profit
st
1 Year 50,00,000 5,00,000
nd
2 Year 70,00,000 9,00,000
(a) Profit Volume ratio
(b) BEP sales(Rs)
(c) Sale to earn profit of 8,00,000
(d) Margin of safety in 2nd Year
(e) Profit when Sales are 40,00,000
4 What are the Golden Rules of Accounting (Traditional Approach). Explain all 5 2 4 1,2
three types of accounts with examples.
5 Prepare a Trial Balance, trading Account P&L Account and Balance 5 1 4 1,2
sheet for the following entries
Particulars D/C Amount Particulars D/C Amount
Capital 3500 Drawing 650
Building 18,750 Machinery 9,250
Sales 63,500 Purchases 46,850
Salaries 1,110 Wages 2,500
Sundry Creditors 10,000 Debtors 7000
Cash in Hand 1,800 Bank 3,000
Rent paid 3,710 Bills Payable 5,000
Return Outward 110 Inward Return 450
Stock Opening 16,500 Closing Stock 18,210
Carriage Inward 850 Discount Allowed 200
General 800 Electric Charges 190
Expenses
Module – V
1 Firm A Firm B 5 3 5 2
Debtor Collection Ratio 20 Days 12 Days
Stock Turnover ratio 6 times 8 times
Current Ratio 4:1 2:1
Gross profit margin 45% 30%
Net Profit Margin 15% 18%
With above data interpret and comment of
(a) Current Ratio Which firm has better liquidity
(b) Debtor collection ratio
(c) Net Profit Margin
(d) Stock Turn over Ratio who sell their stock faster
(e) Gross and Net Profit margins
(f) What does more collection period mean.
2 Analyze the Inflow and Outflow of Funds? 5 1 5 2
1. Issues of Shares. 2. Issues of Debentures. 3. Bank loans. 4.
Redemptions of Preference Shares. 5. Redemptions of Debentures. 6.
Payment of Dividends. 7. Operational Profits. 8. Payment of Tax. 9.
Decrease in Working Capital. 10. Increase in Working Capital.
3. From the following data comment which firm has better Creditor and 5 3 5 2
debtor handling practices. Substantiate with Calculations
Delhi Firm Chennai Firm
Debtor (1/1/2024) 18,000 32,000
Debtor (31/12/2024) 26,000 24,000
Creditor (1/1/2024) 12000 18,000
Sales (60% credit sales) 370000 480000
Purchases (50% credit) 1,80,000 2,15,000
Furniture & Fixtures 45,000 65,000
Cash 25,000 18000
Creditors (31/12/2024) 32,000 22,000
4. Explain the following Ratios and state why they are used: 5 2 5 2
(a) Liquidity ratios
(b) Activity ratios
(c) Capital Structure / Leverage Ratios
(d) Profitability ratios
5 Complete the table and Calculate the change in working Capital 5 3 5 2
31/03/2023 31/03/2024 Increase Decrease
Current Assets
Cash in Hand 10,000 15,000
Cash in Bank 50,000 65,000
Sundry 60000 50000
Debtors
Bills Receivable 40000 48000
Prepaid 5000 6000
expenses
Accrued 1500 1000
Expenses
Closing Stock 15000 10000
Investments 38500 -
Current Liabilities
Sundry 45000 40000
Creditors
Bills Payable 50000 46000
Bank Overdraft 70000 75000
Outstanding 5000 7000
Expenses
Unearned 10000 12000
income
Increase /
Decrease of
Working
Capital
