JNTU
JNTU MCA 2022 ACCOUNTING AND FINANCIAL MANAGEMENT Previous Question Paper (October/November - 2022 - R15)
Answer any five questions. All questions carry equal marks.
Main
On Jan 01, 2021, Kiran bakery had assets of Rs. 8,50,000 and liabilities of Rs. 6,70,000. On December 31, 2021, the business had assets of Rs. 9,90,000 and liabilities of Rs. 7,10,000. During 2021 Kiran invested capital of Rs. 3,50,000 and withdrew Rs. 2,45,000. Compute Kiran Bakery’s net profit or net loss using accounting equation.
Answer
To find the net profit or loss, we first determine the opening and closing capital using the accounting equation: Assets = Liabilities + Capital, or Capital = Assets - Liabilities.
1. Opening Capital (Jan 01, 2021) = 8,50,000 - 6,70,000 = Rs. 1,80,000.
2. Closing Capital (Dec 31, 2021) = 9,90,000 - 7,10,000 = Rs. 2,80,000.
The relationship between opening and closing capital is: Closing Capital = Opening Capital + Additional Capital + Net Profit - Drawings. Rearranging to solve for Net Profit:
Net Profit = 2,80,000 - 1,80,000 - 3,50,000 + 2,45,000 = -5,000.
Since the result is negative, Kiran Bakery incurred a Net Loss of Rs. 5,000.
What are personal, nominal, and real accounts? Give two examples each for the three. What are the rules governing entry to the three accounts.
Answer
Accounts are classified into three categories based on their nature:
- Personal Accounts: Relate to individuals, firms, or companies. Rule: Debit the receiver, Credit the giver. Examples: Ram's A/c, Bank A/c.
- Real Accounts: Relate to assets or properties owned by the business. Rule: Debit what comes in, Credit what goes out. Examples: Cash A/c, Machinery A/c.
- Nominal Accounts: Relate to expenses, losses, incomes, or gains. Rule: Debit all expenses and losses, Credit all incomes and gains. Examples: Salary A/c, Rent Received A/c.
Prepare a balance sheet as of 31st March 2022 for ABC Ltd. from the following particulars taken from financial statement of a company. (All the figures are in Rs. Thousands): Property and equipment 4,776, Accounts payable 1,560, Common stock 1,980, Other non-current liabilities 1,200, Long term investments 3,218, Retained earnings 10,348, Short term investments 1,689, Other current assets 554, Cash 1,240, Other non-current assets 2,487, Accounts receivable 1,200, Current portion of long-term debt 340, Inventories 1,134, Long term debt 870.
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Bring out the important features of GAAP.
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Briefly discuss the role of Finance Manager of a manufacturing company.
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What are the sources of long-term financial needs of a company?
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What is the underlying logic of cost of capital?
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The current market price of the shares of A Ltd. is Rs. 95. The floatation costs are Rs. 5 per share. Dividend per share amounts to Rs. 4.50 and is expected to grow at a rate of 7%. You are required to calculate the cost of equity share capital.
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From the following summarized Balance Sheets of A. Ltd. as on 31st Dec 2020 and 2021, prepare a statement showing the sources and applications of funds and the schedule showing changes in the working capital.
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From the company balance sheet for a firm, the following details are available: Debentures Rs. 50,00,000, Equity shares Rs. 60,00,000, Preference shares Rs. 35,00,000, Reserve Fund Rs. 25,00,000. Find out Debt – equity ratio for the firm.
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What are the limitations of ratio analysis?
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What are the sources of working capital?
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What is break-even cost? What are the various applications of break-even analysis?
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What is flexible budget? Give examples.
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You have a choice of accepting either of two 5 year cash flow streams or lump sum amounts given below. Assuming 10 percent required rate of return, which alternative (I or II) and in which form (cash flow or lump sum) would you prefer? [Data: Alt1: 5 yr flow of 7000/yr, Lump sum 28,250; Alt2: 5 yr flow 11,9,7,5,3k, Lump sum 28,000]
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