Ethics

Subject: Financial & accounting Management

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Section A

Marks-50

Each question carried 10 marks:-

1) Accounting is a closely connected with management control; Elaborate this statement and discuss

the role of accounting in providing feed back for management control.

2) What is main purpose of a Balance sheet?

3) A cash flow statement can be more useful than a fund flow statement; Comment and discuss.

4) What is main purpose of a journal and ledger process in maintaining the accounting records?

5) Discuss the utility of ratios from various stakeholder perspectives. Also identify the three key

financial ratios from each stake holder’s perspective?

Section B

Marks-30

1. The following are the balances of Gupta as on 30.6.1998.

Particulars

Rs.

Cash in hand

540

Cash at bank

2,630

Purchases

Returns inwards

40,675

680

Wages

8,480

Fuel and Power

4,730

Carriage on sales

3,200

Carriage on purchases

2,040

Stock (1.7.1997)

5,760

Building

32,000

Freehold land

10,000

Machinery

20,000

Patents

7,500

Salaries

15,000

General expenses

Insurance

Drawings

3,000

600

5,245

Debtors

14,500

Sales

98,780

Returns outwards

Capital a/c

500

62,000

Creditors

6,300

Rent

9,000

Adjustments :

(a)

Closing stock Rs. 6,800.

(b)

Machinery is to depreciated by 10% and patents by 20%.

(c)

Salaries outstanding Rs. 1,500.

(d)

Insurance includes a premium of Rs. 170 on a policy expiring on 31.12.1998.

(e)

Further bad debts are Rs. 700.

(f)

Rent receivable Rs. 1,000.

Prepare Trading and Profit and Loss a/c and Balance Sheet.

(Marks-20)

2) The comparative Balance Sheets of M/s Ram Brothers for the two years were as follows :

Liabilities

31.12.1994 31.12.1995

Assets

Rs.

Rs.

Capital

1,50,000

1,75,000

Land &

Building...