JNTU
JNTU MCA 2023 ACCOUNTING AND FINANCIAL MANAGEMENT Previous Question Paper (March - 2023 - R17)
Note: i) Question paper consists of Part A, Part B. ii) Part A is compulsory, which carries 25 marks. In Part A, Answer all questions. iii) In Part B, Answer any one question from each unit. Each question carries 10 marks and may have a, b as sub questions.
Part A
Explain concepts and conventions of accounting.
Answer
Accounting concepts are the basic assumptions or conditions upon which the science of accounting is based, such as the Going Concern, Consistency, and Accrual concepts. Conventions are customs or traditions adopted as a guide in the preparation of accounting statements, such as the Convention of Conservatism (prudence), Full Disclosure, and Materiality. These principles ensure uniformity, comparability, and reliability in financial reporting.
Compare and contrast overcapitalization and undercapitalization.
Answer
Overcapitalization occurs when a company has more capital than it can profitably employ, leading to a lower rate of return on investment. Conversely, undercapitalization exists when a company has insufficient capital to meet its operational needs, often resulting in high rates of return but increased financial risk and liquidity issues. While overcapitalization suggests inefficiency and wasted resources, undercapitalization indicates an inability to sustain growth or manage debt obligations.
Distinguish between cash flow and funds flow statement.
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Explain the need for Master Budget.
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Why Payback period is an important for project selection.
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Part B
On the 1st January 2023 the following were the ledger balances of Raj & Co. Cash in hand Rs.90000, cash at bank Rs.21,00,000; Soni (Cr) Rs.3,00,000, Zahir (Dr.) Rs.2,40,000, stock Rs.12,00,000; Prasad (Cr.)Rs.6,00,000, Sharma (Dr.) Rs.4,50,000; Lall (Cr.) Rs.2,70,000: Ascertain Capital. Journalise the above transactions and post to the ledger and prepare a Trial Balance.
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Explain double entry system of accounting and basic books of accounting.
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Why Trial Balance is prepared? Explain the proforma of T/B.
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The well-established company’s most recent balance sheet involves equity capital, long-term debt, and current assets. Given total assets turnover ratio is 3, fixed operating costs are Rs.10,00,000 and variable costs ratio is 40 percent. The income tax rate is 35 percent.
Calculate all the three types of leverages.
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Determine the likely level of EBIT if EPS is i) Rs. 1 ii) Rs. 3 and iii) zero.
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Explain the various sources of finance.
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What is weighted average cost of capital? Examine the rationale behind the use of weighted average cost of capital.
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From the following particulars prepare the Balance sheet of Shri. Mohan Ram &co. Ltd: Current ratio 2, Working capital Rs.4,00,000, Capital Block to current assets 3:2, Fixed assets to turnover 1:3, Sales Cash/credit 1:2, Stock velocity 2 months, Creditors Velocity 2 months, Debtors velocity 3 months, Net profit 10% of turnover, Reserve 2.5% of turnover, Debentures/share capital 1:2, Gross Profit ratio 25%.
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Distinguish between statement showing changes in working capital and funds flow statement.
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Explain the various Profitability ratios.
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Explain the importance of Break-even Analysis. What are its practical applications?
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Discuss the need and importance of Cost-Volume Profit Analysis.
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For production of 10,000 Electrical Automatic Irons with budgeted expenses provided, prepare Flexible Budget for production of 6,000, 7,000, 8,000 Irons.
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A machine costing Rs.110 lakh has a life of 10 years, scrap value Rs.10 lakh. Cut-off rate 12 percent. Machine yields annual profit after tax of Rs.10 lakh. Depreciation on straight line basis. Ascertain the NPV of the project using given PV factors.
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Explain the importance of capital budgeting.
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Discuss the various capital budgeting methods.
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