Register Number: 5849

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Total No. of Pages: 4

Register Number: 5849

Name of the Candidate:

B.C.A. degree EXAMINATION – 2013

(SECOND SEMESTER)

(PART-III)(PAPER-Vi)

220.BUSINESS AND ACCOUNTING

May) Maximum: 100Marks (Time: 3 Hours

SECTION – A (8×5=40)

Answer any EIGHT Questions

All questions carry equal marks

Write a note on business entity concept.
What is suspense account?
State the advantages of cost accounting.
What do you mean by elements of cost? Explain different elements of total cost.
A company is considering a project, requiring a capital outlay of Rs.2,00,000. Calculate the NPV.
Year / Cash inflow
1 / 1,00,000
2 / 1,00,000
3 / 80,000
4 / 80,000
5 / 40,000
The company has a target of return on capital of 10 per cent. the following table gives the present value of Rs.1 due in ‘n’, number of years.
Year / 1 / 2 / 3 / 4 / 5
PV at 10% / 0.91 / 0.83 / 0.75 / 0.68 / 0.62
From the following particulars prepare cost sheet
Rs.
Raw materials / 1,00,000
Direct wages / 40,000
Factory overheads / 30,000
Administrative overheads / 25,000
Selling and distribution overheads / 30,000
Journalise the following transactions
2009 Jan / 1 Commenced business with Rs.1,00,000
5 Purchased machinery for Rs.20,000
9 Opened a bank account with Rs.10,000
11 Goods purchased Rs.8,000
15 Goods purchased Rs.18,000
20 Withdrew cash for personal use Rs.2,000
Sales Rs.15,000
Variable cost Rs.10,500
Fixed cost Rs.3000
Calculate PV ratio and B.E.P.
Prepare a production budget for three months ending March 31, 2009, for a factory producing four products, on the basis on the following information
Type of product / Estimated stock on Jan, 2008 / Estimated stock during Jan – March 2009 / Estimated stock on Mar, 31, 2008
A
B
C
D / 2,000
3,000
4,000
3,000 / 10,000
15,000
13,000
12,000 / 3,000
5,000
3,000
2,000
From the following balance sheet calculate current ratio and liquid ratio.
Liabilities / Rs. / Assets / Rs.
Share capital / 40,000 / Land and building / 30,000
Reserves / 18,000 / Plant / 16,000
Profit and loss account / 12,000 / Stock / 28,000
Bank overdraft / 6,000 / Debtors / 14,000
Creditors / 6,000 / Bills receivable / 2,000
Bills payable / 4,000 / Cash / 6,000
96,00 / 96,000

SECTION - B

Answer any THREE Questions (3×20=60)

All questions carry equal marks

Explain the limitations of ratio analysis.
On 31st March, 2007 the following Trial Balance was extracted from the Books of Chaterjee. Find out the net profit to be transferred to his Capital Account.
Debit
Rs. / Credit
Rs.
Capital A/c / 50,000
Plant and Machinery / 80,000
Sales / 1,77,000
Purchases / 60,000
Returns / 1,000 / 750
Opening stock / 30,000
Discount / 350 / 800
Bank Charges / 75
Sundry Debtors / 45,000
Sundry Creditors / 25,000
Salaries / 6,800
Wages / 10,000
Carriage Inwards / 750
Carriage Outwards / 1,200
Bad Debts Provision / 525
Rent, Rates and Taxes / 10,000
Advertisements / 2,000
Cash in hand / 900
Cash at Bank / 6,000
2,54,075 / 2,54,075
The following adjustments are required:
a)Closing Stock Rs.35,000
b)Depreciation on Plant at 6% p.a.
c)Bad debts provision to be adjusted to Rs.500
d)Interest on capital to be allowed at 5% p.a.
A company Supplies you the following balance sheets on 31 December 2005 and 2006.
Liabilities / 2005
Rs. / 2006
Rs. / Assets / 2005
Rs. / 2006
Rs.
Share Capital / 70,000 / 74,000 / Bank Balance / 9,000 / 7,800
Bonds / 12,000 / 6,000 / Accounts Receivable / 14,900 / 17,700
Accounts Payable / 10,360 / 11,840 / Inventories / 49,200 / 42,700
Provision for Doubtful Debts / 700 / 800 / Land
Goodwill / 20,000
10,000 / 30,000
5,000
Reserves and surplus / 10,040 / 10,560
1,03,100 / 1,03,200 / 1,03,100 / 1,03,200
Prepare cash flow statement.
The sales turnover and profit during two periods were as follows
Period I / Period II
Sales / 20,00,000 / 30,00,000
Profit / 2,00,000 / 4,00,000
Calculate
(i)PV ratio
(ii)Break Even Point
(iii)The sales required to earn a profit of Rs.50,000
(iv)The profit when sales are Rs.1,00,000
The expenses for the production of 5,000 units in a factory are given as follows:
Per unit
Rs.
Materials / 50
Labour / 20
Variable overheads / 15
Fixed overheads (Rs.50,000) / 10
Administrative expenses (5% variable) / 10
Selling expenses (20% fixed) / 6
Distribution expenses (10% fixed) / 5
Total cost per unit / 116
You are required to prepare a budget for the production of 7,000 units and 8,000 units.