BBA/BBA(MS)/BBA(IB) 1st Semester Financial and Management Accounting-I Past Paper 2022 PDF

## BBA/BBA(MS)/BBA(IB) 1st Semester (Regular) Examination, 2022 ## FINANCIAL AND MANAGEMENT ACCOUNTING-I Paper : Pl' Time: 3 Hours ] [ M.M.: 75 **Note:** Answer any five questions. All questions carry equal marks. 1. "Accounting is the way a business keeps track of its operations." In this regar...

## BBA/BBA(MS)/BBA(IB) 1st Semester (Regular) Examination, 2022 ## FINANCIAL AND MANAGEMENT ACCOUNTING-I Paper : Pl' Time: 3 Hours ] [ M.M.: 75 **Note:** Answer any five questions. All questions carry equal marks. 1. "Accounting is the way a business keeps track of its operations." In this regard explain the objectives, limitations and significance of accounting in business. (15) 2. (a) Explain the meaning and advantages of IFRS. What are the challenges in adoption of IFRS in India? (15) 3. From the following transactions: (a) Salary Paid (b) Machinery Purchased for Cash (c) Outstanding Salary (d) Building Sold (e) Received Cash from Ramesh find out: (i) Heads of Accounts Involved (ii) Types of Accounts (iii) Which account has to be Debited and Credited (15) 4. From the following information you are required to prepare Trading, Profit and Loss Account and Balance Sheet: | Particulars | Dr. (Amt.) | Particulars | Cr. (Amt.) | |---|---|---|---| | Salaries | 5,500 | Creditors | 9,500 | | Rent | 1,300 | Sales | 32,000 | | Cash in Hand | 1,000 | Capital | 30,000 | | Debtors | 40,000 | Loans | 10,000 | | Trade Expenses | 600 | | | | Purchases | 25,000 | | | | Advances | 2,500 | | | | Bank Balance | 5,600 | | | | | 81,500 | | 81,500 | **Additional Information:** (i) Closing stock amounted to ₹ 9,000 (ii) One month's salary is outstanding (iii) One month's rent has been paid in advance (iv) Provide 5% for doubtful debts. (15) 5. From the following particulars prepare a Cost Sheet: | Particulars | (₹) | |---|---| | Opening Stock of W.I.P. | 20,000 | | Opening Stock of Raw Material | 10,000 | | Opening Stock of Finished Goods | 50,000 | | Raw Material Purchased | 5,00,000 | | Direct Wages | 3,80,000 | | Sales for the Year | 12,00,000 | | Closing Stock of Raw Material |75,000 | | Closing Stock of W.I.P. | 15,000 | | Factory Overhead | 80,000 | | Direct Expenses | 50,000 | | Office and Administration Overhead | 60,000 | | Selling and Distribution Overhead | 30,000 | (15) 6. The financial books of company show a net profit of ₹ 1,27,560 for the year ending 31st December, 2020. The cost account shows a net profit of ₹ 1,33,520 for the same corresponding period. The following facts are brought to light: | Particulars | (₹) | |---|---| | Factory Overhead under recovered in Costing A/c | 11,400 | | Administration Overheads over recovered in Costing A/C | 8,500 | | Depreciation charged in Financial A/C | 7,320 | | Depreciation recovered in Cost A/C | 7,900 | | Interest received but not included in Cost A/C | 900 | | Income Tax debited in Financial A/C | 1,200 | | Bank Interest credited in Financial A/C | 460 | | Stores adjustment credited in Financial A/C | 840 | | Rent charged in Financial A/C | 1,720 | | Dividend paid recorded in Financial A/C | 2,400 | | Loss of Obsolescence charged in Financial A/C | 520 | Prepare a Reconciliation Statement from the above information. (15) 7. Sale price ₹ 20 per unit Variable Manufacturing Cost ₹ 11 per unit Variable Selling Cost ₹ 3 per unit Fixed Factory Overhead ₹ 5,40,000 per year Fixed Selling Costs ₹ 2,52,000 per year Calculate: (a) BEP Volume and Value (b) Sales required to earn a profit of ₹ 60,000 (c) Sales required to earn a profit of 10% of sales. (15) 8. Differentiate between: (a) Absorption and Marginal Costing (b) Normal Loss and Abnormal Loss (c) Trial Balance and Balance Sheet (15) 9. What do you understand by Activity Based Costing? What are the factors to be considered while adopting ABC? How is it different from Traditional Costing System? (15) 10. The information given below has been taken from the costing records of a company in respect of a Job No. 101: Material ₹ 10,000 Wages: Dept. X 70 hours @ ₹ 4 per hour Dept. Y 40 hours @ ₹ 2 per hour Dept Z 20 hours @ ₹ 5 per hour Overhead expenses for these three departments were estimated as follows: Variable Overheads: Dept. X ₹ 10,000 for 5000 labour Dept. Y ₹ 3,000 for 1500 labour Dept. Z ₹ 2,000 for 500 labour Fixed Overheads are estimated at ₹ 20,000 for 10,000 normal working hours.