WBUT Previous Years Question Papers EE Financial Management And Account B Tech 7th Sem 2010-11

WBUT Previous Years Question Papers

EE Financial Management And Account B Tech 7th Sem 2010-11

Time Allotted : 3 Hours

Full Marks : 70

The figures in the margin indicate JuR marks.

Candidates are required to give their answers in their own words

as far as practicable.

GROUP-A ( Multiple Choice Type Questions )

  1. Choose the correct answers for any ten of the following :

i)              Agreement of Trial Balance ensures

a)       the arithmetic accuracy of recording transactions

b)             the arithmetic accuracy of Ledger posting

c)       the arithmetic accuracy of all accounting records

d)       the arithmetic accuracy of cash position of business.

ii)            Working capital means

a)       Current Assets (-) Non-current Liabilities

b)       Non-current Assets (-) current Liabilities

c)       Current Assets (-} Current Liabilities

d)            Current Assets (-) Inventory (of work In process)

ill) The Break-even point is the point at which the firm makes

a)            Zero profit  -

b)            Super profit

c)             Normal profit

d)            Optimal profit (in units).

iv)           Margin of safety means

a)            BEP sales (-) Actual sales

b)            Budgeted sales (-) BEP sales

c)            Actual sales (-) BEP sales

d)            BEP sales (-) total contribution.

v)             The debit balance of P/L account indicates .

a)            Gross Loss

b)            Net Profit

c)             Net Loss

d)            the presence of a suspense account.

vi)           Wages paid for erection of new plant is

a)            Revenue expenditure

b)             Capital Expenditure

c)             Deferred revenue expenditure

d)            Miscellaneous expenditure.

vii)        Stores ledger is maintained in

a)            Store Department

b)            Accounts Department

c)             Cost Accounts Department

d)            Purchase Account Department.

viii)      Direct wages is a .

a) Fixed cost       b) Variable cost

c)             Semi-variable cost d) Step cost.

ix)          Liquid assets is equal to

a)             Current assets-Stock

b)             Current assets-Stock and prepaid

c)             Current assets-Fictitious assets

d)             Current assets-Prepaid expenses.

x)            Current ratio measures

a)            the solvency of the business

b)            the liquidity of the business

c)             the profitability of the business

d)            the efficiency of the business.

xi)       The maintenance department of a thermal power plant is a

a)       Revenue centre b) Critical centre

c)       Profit centre d) Cost centre.

GROUP -B ( Short Answer Type Questions)

Answer any three of the following. 3×5=15

  1. Using the information given below, compute the payback period under discounted payback method :

Initial investment Rs. 1,20,000. Estimated life 4 years. Profit after tax (at the end of) four years are Rs. 40,000, Rs. 45,000, Rs. 50,000 and Rs. 35,000 respectively. Expected scrap value after four years estimated Rs. 20,000.

Depreciation has been calculated under the straight line method. The cost of capital may be taken at 20% p.a. and the present value of Re. 1 at 20% p.a. is given below :

Year;          l      2      3      4

PV factor:    0.83 0.69 0.58 0.48

  1. What is meant by “Accounting Rate of Return” method of capital budgeting ?
  2. Distinguish between Cash book and Cash flow statement.
  3. XYZ Ltd. gives you the following information :
 

Rs.

 

Rs.

Stock-in-trade :

80,000

Debtors :

60,000

Bills Receivable :

20,000

Cash-in-hand:

20,000

Cash-at-bank:

50,000

Creditors :

40.000

Bills Payable :

10,000

Outstanding expenses :

4,000

Furniture :

30,000

Preliminary expenses :

6,000

Short term investment

: 40,000

Short term loan :

10,000

Compute the (a) Gross working capital (b) Net working capital

2 + 3

  1. State the purpose of preparing Cost Sheet with at least three examples.

GROUP-C ( Long Answer Type Questions)

Answer any three of the following.

  1. a) What do you mean by Benefit cost ratio method ?, How

is this applied in a company decided to invest in a nuclear power project ?

b)             Distingnish between Master budget and Flexible budget

  1. XY Company Limited manufactures two products A and B. An estimate of the number of units expected to be sold in the first seven months of 2011 is given below :
MONTH

PRODUCTA

PRODUCT B

January

500

1400

February

600

1400

March

800

1200

April

1000

1000

May

1200

800

June

1200

800

July

1400

1000

It is anticipated that there will be no work-in-progress at the end of any month, and finished units equal to half the anticipated sales for the next month will be in stock at the . end of each month(including December, 2010).

The budgeted production costs for the year ending 31st Dec., 2011 are as follows :

Product A        Product B

Production (units) 11000                                          12000

Direct materials per unit (Rs.) 12                               19

Direct wages per unit (Rs.) 5                                        7

Other manufacturing charges

apportionable to each type of

product (Rs.) 33,000            48,000

You are required to prepare (a) Production budget showing the number of units to be manufactured each month (b) a summarized production cost budget for 6 month period- January to June 2011.

  1. Following ratios are extracted from the books of Basumati Ltd. :

i)              Gross Profit Ratio        20%

ii)            Debtors Turnover / Velocity    2 months

iii)          Stock Turnover            6 times

iv)           Creditors velocity        1 month

v)             Gross profit for the year Rs. 1,20,000

vi)           Bills Receivable          Rs. 26,000

vii)         Bills Payable             Rs. 3,833

Find out : (a) Sales (b) Sundry Debt6rs (c) Closing Stock which is Rs. 10,000 more than the Opening Stock (d) Sundry Creditors.

  1. From the following information prepare a statement showing the estimated Working Capital to be required by a newly formed manufacturing company with the production capacity of 9000 units per year, for 2008.
Following are the further information :

Element of Cost Cost per Unit (in Rs.)
Materials 5
Wages 6
Overheads 7
Total Cost 18
Profit 2
Selling Price 20

 

Additional Information :

Raw Materials are in stock on an average Raw Materials are in process on an average Finished Goods are in stock Credit allowed to Debtors Credit allowed by Creditors Credit allowed by employees

Lag in payment in overheads

Cash in hand & at bank

Production is not carried on evenly diiring the year and wages & overheads not accrued similarly.

  1. A project costs Rs. 16,000 and is expected to generate cash inflows of Rs. 8,000, Rs. 7,000 and Rs. 6,000 at the end of each year for next 3 years. Calculate IRR at 15% and 16% discount rate.

P.V. Factor 16%  15%

1st year 0.862 0.870

2nd year 0.743 0.756 3rd year 0.641 0.658

Also calculate the net present value at 15% discount factor and comment on the acceptability of the project.

  1. The following details are available in respect of a consignment of 1250 kgs of material X.

a)            Invoice Price    Rs. 20 per kg.

b)            Excise duty      25%

c)             Sales Tax        8% on Invoice Price including

d)            Trade Discount

e)             Insurance

f)              Delivery charges excise duty 10% on Invoice price 1% of aggregate Net Price Rs. 250

g)             Cost of containers @ Rs. 60 per container for 50 kgs of materials. Rebate is allowed @ Rs. 40 per container if returned within 6 weeks, which is a normal feature.

h)            One container load of materials was rejected on inspection and not accepted.                          —

i)              Cost of Unloading and handling @ 0.25% of the cost of materials ultimately accepted.

On the basis of above, you are required td find out the landed cost per kg of material X.

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