August 2010

ASSIGNMENT - MCA semester 1

MC0065 –Financial Management and Accounting – 4 Credits
(Book ID: B0724)
Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions

1) What is financial statement? Explain purpose and objectives of financial statement.
2) What is a Funds Flow Statement? Discuss the importance and objectives of Funds flow
statement?
3) What are the important Revenue statement ratios or income statement ratios? Explain them
breifly.
4) What do you mean by Trial Balance? Mention the kinds of errors
a) Disclosed by Trial Balance
b) Not Disclosed by Trial Balance
5) The following is the revenue statement of Hind Traders Limited for the year ended 31st
March, 2000:
Rs
Sales 5, 00,000
Less: Cost of Goods sold 3,00,000
-------------
Gross Profit 2,00,000
Less: Operating Expenses 1,20,000
-------------
Operating Profit 80,000
Add: Non-Operating Income 12,000
-------------
92,000
Less: Non-Operating Expenses 4,000
-------------
Net Profit 88,000
Less: Tax 50% 44,000
-------------
Net Profit after Tax 44,000
-------------
Calculate (i) Gross Profit Ratio (ii) Operating Ratio (iii) Operating Profit Ratio
(iv) Net Profit Ratio.

6) The following are the balance sheet of paliwal exports ltd. For the year 2000 and 2001

2000 2001 Assets 2000 2001

Liabilities Rs Rs Rs Rs

Share capital 5,50,000 6,20,000 Current Assets:

Stock 2,00,000 2,70,000
Creditors for goods 1,60,000 2,50,000 Sundry Debtors 2,25,000 2,45,000
Cash 40,000 65,000
Creditors for exp 10,000 12,000 Prepaid Expenses: 25,000 22,000
B/P 1,00,000 1,10,000 Non current Assets:
Securities premium 50,000 80,000 Plant & Machinery 7,00,000 8,80,000
Profit&loss A/c 1,00,000 2,00,000 Goodwill 1,00,000 70,000
Debentures 3,00,000 2,00,000 Investments 1,80,000 1,80,000
General reserve 2,00,000 2,60,000
14,70,000 17,32,00 14,70,000 17,32,000
0
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You are required to prepare funds flow statement

 August 2010
Master of Computer Application- MCA Semester 1
MC0065 – Financial Management & Accounting - 4 Credits
(Book ID: B0724)
Assignment Set- 2 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions.

1 Define a cash flow statement .What are the uses and limitations of preparing a Cash Flow
Statement?
2 Define ‘Marginal Cost’ and ‘Marginal costing’. Discuss the advantages and limitations of
marginal costing.
3 What do you understand by budgetary control? What are the essentials of good budget and
Explain types of budgets?
4 What is standard costing? Point out clearly the distinction between standard cost and other
cost systems?
5. Your company has a production capacity of 2, 00,000 units year. Normal capacity utilization is
reckoned as 90%.Standard variable production costs are rs.11 per unit. The fixed costs are
rs.360000 per year. Variable selling costs are rs.3 per unit and fixed selling costs are rs.2,
70,000 per year. The unit selling price is rs.20.In the year just ended on 30th June, 1998, the
production was 1, 60,000 units and sales were 1, 50,000 units. The closing inventory on 30-6-
1998 was 20,000 units. The actual variable production costs for the year were rs.35, 000 higher
than the standard.
(i)Calculate the profit for the year by using Marginal costing method
6) The standard material required to manufacture one unit of product X is 10 kg and the
standard price per kg of material is Rs.2.50.The cost accountant records, however, reveals that
11,500 kg of materials costing Rs.27, 600 were used for Manufacturing 1,000 units of product X.
Calculate the material variances.