Fall 2011 Bachelor of Computer Application (BCA) Semester 3 BC0044 Accounting and Financial Management

(Book ID: B0805)

4 Credits

Assignment Set 1 (60 Marks)

Answer all the questions.

1. Journalise the following transactions: 01.01.09 02.01.09 03.01.09 04.01.09 Bought goods for Rs.10,000 Purchased goods from X Rs.20,000 Bought goods from Y for Rs.30,000 against a current dated cheque Purchased goods from Z [price list price is Rs.30,000 and trade discount is 10%] 05.01.09 Bought goods of the list prce of Rs.1,25,000 from M less 20% trade discount and 2% cash discount. Paid 40% of the amount by cheque 06.01.09 07.01.09 Returned 10% of the goods supplied by X Returned 10% of the goods supplied by Y (10 Marks)

1. Explain errors of omission and errors of commission. (10 Marks) 2. From the following balances extracted from Trial balance, prepare Trading Account. The closing stock at the end of the period is Rs. 56000 (20 Marks)

Particulars Stock on 1-1-2004 Returns inwards Returns outwards Purchases Debtors Creditors Carriage inwards Carriage outwards Import duty abroad on materials received from

Amount in Rs. 70700 3000 3000 102000 56000 45000 5000 4000 6000 7000 12000 10000 2000 8000 10000 1000 4000 250000

Clearing charges Rent of business shop Royalty paid to extract materials Fire insurance on stock Wages paid to workers Office salaries Cash discount Gas, electricity and water Sales

3. Why wealth maximization is superior to profit maximization?

(10 Marks)

4. Following are the extracts from the Trial Balance of a firm as on 31st March 20X7

Dr Sundry Debtors Provision for Doubtful Debts Provision for Discount on Debtors Bad Debts 3,000 2,05,000

Cr

10,000 1,800

Discount Additional Information: 1) Additional Bad Debts required Rs.4,000 2) Additional Discount allowed to Debtors Rs.1,000

1,000

3) Maintain a provision for bad debts @ 10% on debtors 4) Maintain a provision for discount @ 2% on debtors Required: Pass the necessary journal entries and show the relevant accounts including final accounts.

Fall 2011 Bachelor of Computer Application (BCA) Semester 3 BC0044 Accounting and Financial Management
(Book ID: B0805)

4 Credits

Assignment Set 2 (60 Marks)

Answer all the questions. Each question carries 10 marks 1. What is over capitalization? How do we know over capitalization has occurred? 2. Explain permanent and temporary working capital. 3. A. What are the assumptions of EOQ Model.? B. Consider the following data of X Ltd. Calculate EOQ Annual usuage = 10000 units Fixed cost per order = Rs.150 Purchase price per unit = Rs.20 Carrying cost = 25 percent 4. Explain the objectives of cash management 5. The income statement of Vignesh Ltd is as follows: To Opening Stock 2,00,000 By Sales Purchases 8,00,000 Closing Stock Direct Expenses 1,00,000 Gross Profit 2,00,000 13,00,000 To Admn Expenses 1,00,000 By Gross Profit

12,00,000 1,00,000

13,00,000 2,00,000

Selling Expenses Non-Operating exp Net Profit

Profit on sale Investments 40,000 Dividends received 80,000 3,00,000

80,000

of

60,000 40,000 3,00,000

Calculate the Gross Profit Ratio, Net Profit Ratio, Operating Ratio, Operating Profit Ratio and Expense Ratio. 6. Explain the steps involved in Funds Flow statement.