Jawaharlal Nehru Technological University, Hyderabad MBA-I Semester Supplementary Examinations July 2010 FINANCIAL ACCOUNTING AND ANALYSIS Question paper

Code No: 11004

Time: 3hours Max.Marks:60

Answer any Five questions
All questions carry equal Marks

1. Discuss briefly about the Generally Accepted Accounting Principals(GAAP)

2. Explain about various subsidiary books prepared by an organization

3. What is Goodwill? Explain about the methods of valuation of Goodwill

4. What is forfeiture and re- issue of forfeited shares? State the steps involved in
re- issue of forfeited shares.

5. Discuss about the techniques of financial statement analysis

6. The balance sheets of M & Co. and N & co. are as follows
Balance sheets as Dec 31,2009
Liabilities M & Co Rs N & Co
Rs.
Preference share capital
Equity share capital
Reserves and surpluses
Long term loans
Bills payable
Creditors
Outstanding expenses
Proposed dividend
Total
Assets;
Land and buildings
Plant and machinery
Temporary investments
Inventories
Book debts
Prepaid expenses
Cash and Bank
Total
120000
150000
14000
115000
2000
12000
15000
10000
438000
80000
334000
1000
10000
4000
1000
8000
438000
160000
400000
18000
130000
---
4000
6000
90000
808000
123000
600000
40000
25000
8000
2000
10000
808000
Compare the financial position of the two companies with the help of Common size Balance Sheet.
Cont…2

7. Following is the Profit and Loss account of Manyam Electricals Ltd for the year ended 31st September,2009.
To Opening stock
To Purchases
To Wages
To Gross profit
To Administrative expenses
To Selling and
Distribution expenses
To Non operating expenses
To Net Profit
1,00,000
3,50,000
9,000
2,01,000
6,60,000
20,000
89,000
30,000
80,000
----------
2,19,000
-----------
By Sales
By Closing stock
By Gross profit b/d
By interest on investments(outside business)
By Profit on sale of investments
5,60,000
1,00,000
6,60,000
2,01,000
10,000
8,000
2,19,000
----------
You are required to calculate ;
1. Gross profit Ratio
2. Net profit Ratio
3. Operating Ratio
4. Operating profit Ratio
5. Administrative Expenses Ratio

8. From the following Balance Sheets of Crompton Co. Ltd Prepare (a) Schedule of changes in Working Capital and (b) Funds Flow Statement
Liabilities 31 Dec2008 31st Dec.2009 Assets 31 Dec2008 31st Dec.2009
Capital
Creditors
Bills payable
Profit &
Loss a/c
Total
120000
37000
15000
60000
---------
232000
150000
25000
17000
69000
---------
261000
Plant
Land and
Buildings
Patents
Cash
Debtors
Total
100000
75000
7000
17000
33000
---------
232000
125000
90000
9500
23000
13500
---------
261000
Additional information:
Depreciation of Rs. 20,000 and Rs 25,000 have been charged on plant, land and buildings respectively in 2009.