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	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.


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	31 Dec.2009	Assets	31 Dec2008	31 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.