The Assam Royal Global University
Royal School of Business
MBA 15T Semester
Semester End Examination, March, 2022
Course Title: Accounting for Managers -I
Course Code: BSA034C102
Time: 3 Hours
Maximum Marks: 70
Note: Attempt all questions as per instructions given.
The figures in the right-hand marginindicate marks.
Section -A
1. Attempt allquestions. (Maximum word limit 50) (2 x 8=16)
a) What are the Qualitative characteristics of financial statements? Why are they necessary to
accounting information?
b) What do you mean by accounting cycle?
c) What is a ledger, and from where does the input for a ledger come?
d) What is the difference between a fixed asset and an intangible asset?
e) What does it mean for an asset to be considered impaired"?
f) Gentry Software Inc. incurred Rs. 40, 00,000 in research costs and Rs. 50,00,000 in
salaries to develop a new tablet application. Gentry paid Rs. 2, 40,000 to register the patent
protecting the application. Find out the amount to be debited to Intangible Assets A/C with
suitable explanation to your answer.
g) What is buy back of shares?
h) What circumstances give rise to a deferred expense?o olbrlat wds sit e
SECTION -B
2. Answer any two: Tndhnslo e (7x2=14)
elob ctalisisoalsal
(a) What is meant by the term 'Generally accepted Accounting Principles (GAAP)? Discuss
briefly key sources of Indian GAAPs.
(6) What are the characteristics of modern accounting? State the advantages and limitations of
accounting?
(c) Writea brief note on Computerized Accounting System?
3. Answer any two: (7x2=14)
a. The following balances appeared in the books of Jane Seymour on 1.3.2021:
Bank Book (Bank Balance, Debit) Rs.8, 500
General Ledger:
Sales Account Rs. 89,000
Purchases Account t Rs. 42,000
1
Sales Ledger:
DJones
Rs. 4,000
N Cross
Rs. 3000
P White Ltd
Rs. 2,500.
Purchases Ledger:
JFreemen
Rs. 18,000
Value Supply Ltd.
Rs. 14,000
During the month of March, 2021, the following
1. transactions took place:
Purchases of goods on credit for
resale:
March 4 -Value Supply Ltd.
Rs. 26,000
2. Sales on credit :
March 9 -DJones
Rs. 5,000
3. Payments received vide cheque :
March 18-N Cross in full settlement of account at
1.3.21 less 10% discount
4. Payments made by
cheque:
March 3 -Value Supply Ltd.
Rs. 14,000
From the above information open the
accounts which would appear in Jane's Ledger, and
show the Bank Book.
b. "A Trial Balance is merely a
proof of arithmetical accuracy". Explain this
bring out clearly three errors which a Trial
Balance fails to disclose. statement and
C. (i) What do you mean by timing
differences that causes discrepancy between the balance
as per Cash Book and the Bank Statement?
(ii) Write the following transactions in a (2)
Cash Book (single column ) and bring
balance: down the
2021 (5)
December I Cash in hand
Rs. 12,000
December 4 Received cash from Ram
Rs. 95
Allowed him Discount
Rs. 5
December 10 Withdrew from bank for office cash
Rs. 200
Withdrew from bank for personal use Rs. 150
Sold goods for cash
Rs. 700
2
December 12- Sold goods to M/S Tumuli & Co. for Rs. 10,000 subject to 10% trade
discount and 5% cash discount if paidin 10 days.
December l18- Received cash from MIS Tumuli &Co.in full setlement of his account.
December 21-An old delivery van was sold for Rs. S1,000. Payment received in cash on the
same day.
December 30 A bank draft was made in favor of APDCL for load security amounting to Rs.
1000
4. Answer any two (TX2=14)
a.ABC &Co. (Sole -Proprietorship Firm) started a new business of trading in electronic goods from
10.4.2020.
Trial Balance for April to March, 2021 is as under:
Head ofAccount Debit (Rs. ) Credit ( Rs. )
Sales 8,34,200
Purchases 4,38,000
Salaries to Staff 117200
Stock ( 31.3.2021 ) 50,000
Advertisement expenses 39,100
Sundry Debtors 64200
Office
Equipments 2,00,000
Building 300000
Travelling & Conveyance 41300
Electricity Expenses 13800
Cash at Bank 18000
Furniture 200000
Cash in Hand 12290
Prepaid Printing expenses 1410
Printing & Stationery 4950
Bad Debts 12,800
Interest on Bank Loanpaid 1250
Sundry Creditors 50,000
10% Bank Loan ( taken on 1.II.2020) 1,50000
Provision for Doubtful Debts 3,200
Accumulated Depreciation (up to 31.3.2021) 1,00,000
Proprietor's Capital Account 3,76,900
15,14,300 15,14,300
Total Rs.
Prepare Final Accounts from the above trial balance
B (i) ABC Ltd. has established a new project. Details of fixed assets and expenditures incurred during
the construction of the project are given hereunder. Determine the cost of each asset (as eligible for
depreciation) at the end of completion of the project, ready for commercial production. (4)
3
Details Amount ( Rs. In Lakhs)
Land
125
Factory Building 250
Plant &Machinery 2075
Pre-operative Administrative expenses on 150
start up,commissioning of project
Interest on Term Loans during construction 180
period
Total Rs.
2780
ii. Bring out the points of distinction between
Revenue Expenditure and Capital Expenditure. (3)
c.Mr. Vaid, Kolkata purchasedthe required machine on1.4.2001 for Rs. 70,000.
On 1.10.2002, a single unit which cost Rs. 10000
originally was sold for a cash price of Rs. 7,000. On
the same day a, new machine was purchased in cash for
Rs.
Assume that the machine was depreciated @10% p.a. on SLM.10,000 was installed by the Supplier.
&
Prepare necessary ledger accounts and also show extract of Balance Sheet
Note: Accounting year being April -March of every year. reflecting Fixed Asset.
5..Answer any one:
(12X1=12)
a.The following is the Trial Balance of Laxmi
Chemical Ltd. as on 31st March, 2021. Prepare
Statement of Profit & Loss for the year ended 31st March, 2021 and
Balance sheet as on that date as
per schedule III of the Companies Act, 2013.
Particulars
Dr (Rs) Cr (Rs)
Stock (1.4.2020) 42,500
Sales
3,75,000
Purchases
3,48,500
Furniture 14000
Salaries 7.500
Rent
14,000
Surplus Accounts (14.2020) 15,030
Interim dividend Paid 6000
Share Capital, 1000 Equity shares @Rs. I0each 100,000
Debtors and Creditors 40,500 17,500
Machinery 2,9000
Cash & bank balance 16,200
General Reserve 15,500
Bad debt 4830
Total RS. 5, 23,030 5,23,030
4
Adjustments:
(a) Closing inventory on 31.3.202l was valued at Rs. 79,500
(b) Provide depreciation on fixed assets @ 15 %
(c) Make aprovision for tax @30%
(d) The Board of directors recommended final dividend (@ 5% for the year.
b. () Discuss any two commonly used financial shenanigan techniques to depict financial
performance different from what it really is. (5)
(1) Discuss briefly the provisions of Companies Act,20 13 relating to maintenance of Books
of Account and preparation &presentation of financial statements. (7)
