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The ICFAI University
ICFAIBusiness School-Jaipur
MBA Scm. I
Class of 2025
End Semester Examination
Campus IBS-JAIPUR Semester
Course Course Code SLAC501

Accounting for Managers
Date: 29-09-2023 Time: 02:00 PM to 05:00 PM
To be filled by the candidate
ENROLLMENT NO. S P b53
CANDIDATE CAN RETAIN THE QUESTION BOOKLET

AFTER THE EXAMIN,AION IS OVER
This question booklet comprises of Part A, Band C

Part A:
Part Aconsists of 12 Short Note application-oriented questions.
Part B:
Part Bconsists of 4 questions including testing your understanding of Conceptual
understanding, Analytical Ability and Situational Analysis.
Part C:
Part C consists of 2 case-lets to test analytical ability, situational analysis, and
application of concepts.
Total duration of the examination is 3 hours.
INSTRUCTIONSTO CANDIDATES
1. Writeyour enrolment number on the first page of the answer book at the space
provided.
2. All rough work may be done on last page in the answer book.
3. Pencilshould not be used for answering.
4 The unused portion of the answer book must be boldly crossed prior to submitting.
5 Attempt allquestions
6. Marksare indicated against each question.
12
Part - A
Short Note Questions on Basic Concepts and application of Concepts

Q. Question Marks
No.
1. A firm follows a practice of giving figures of previous year along with the 4
figures of current year. Now the accountant of the firm wants to
discontinue this practice. Do you justify this decision?
2. According to you what is the meaning of the term 'Profit'? How is it 4
differing from the term 'Gain'? Elucidate.
3. Land and Building are shown at Rs. 10 lacs in the Balance Sheet of the 4
business owned by Mr. Yuvraj. However as per the certification of theGovt.
approved valuer the realizable value of of Land and Building is Rs. 200 lacs.
Mr. Yuvraj wants to show the Land and Building at this value in his books.
Can hedo so? Explain in your words.
4. (a) Surendrastarted business on 1st April, 2022 with capital of Rs. 7,50,000 4
and a loan of Rs. 2,00,000 taken form Punjab National Bank. On 31st March
2023 his assets were Rs. 15,00,000. Find out his capital on 31st March, 2023
and profits made or losses incurred during the year 2022-23.
(b) in the above question, the proprietor has introduced additional capital
of Rs. 1,25,000 and had withdrawn Rs, 40,000 for personal purpose, find
out the profit.
5. The following balances have been appeared in the books of Vishal Stores on 4
1stApril, 2023. Make an opening journal entry from the below information.
Cash Rs. 15,000; Bank Balance Rs. 5,000; Stock Rs. 40,000; Furniture Rs.
3,600; Debtors Rs. 24,000 (X- Rs. 6,000; Y- Rs. 8,000 and Z-Rs. 10,000);
Bank Loan Rs. 10,000; Creditors Rs. 12,500 (Ajay Rs. 5,000; Vijay Rs.
7,500).
6. What do youunderstand by ratio analysis? Classify the ratios on the basis 4
of solvency.
7. Calculate the value of gross profit from the following information: 4
Purchases Rs. 6,80,000
Return Outwards 30,000
Carriage Inwards 20,000
Carriage Outwards 15,000
Wages 50,000
3/4th of the goods have been sold for Rs. 6,00,000.
8. What do you mean by assets? Also differentiate between tangible and 4
intangible assets.
9. Ifa company's working capital is Rs. 30,000; Total Debt is Rs. 65,000 and 4
long term debts are Rs. 50,000. Calculate current ratio.

10. Classify the following activities as- () Operating Activities, (ii) Investing 4
Activities, and (ii) Financing Activities:
() Purchase of Machinery (v) Refund of Income Tax
(ii) Payment of Income Tax (vi) Receipt of Dividend
(iii) Payment of Dividend (vi) Marketable Securities
(iv) Issue of Debentures (vii) Bank overdraft
2
11. Define the relation between fixed cost and operating leverage in your 4
words. You may take help of any suitable illustration.
12. Who are the users of financial statement? Show the usefulness of 4
accounting information from there point of view.
Part - B
Basic Concepts, Conceptual Understanding,

Analytical Ability, Situational Analysis and application of principles
13. Record the following transactioninthe Journal of Naresh &Co.: 6
2018 Particulars Rs.
June 1 Paid cash to Mahesh 9,600
And discount received from him 400
June 4 Received cash from Arun 4,900
And discount allowed to him 100
June 10 Goods sold to Harish 30,000
June 12 Harish returned goods 2,000
June 14 Received cash from Harish Rs. 27,500 in full
settlement of his account
June 20 Sold goods toGopal of the list price of Rs. 60,000at
10% trade discount
June 23 Purchased goods from Ravi of the list price of Rs.
20,000 at 15% trade discount
14. "Ratios can also assist management in its basic functions of forecasting, planning, 6
co-ordination, control and communication." Explain the above statement by
explaining the significance of ratio analysis.
15. Given below the trial balan.cc of Gopi Chand Bros. as at 31st March, 2022. You are 6
required to prepare a Trading and Profit and Loss A/c for the year ended 31t
March, 2022.
Particulars Amount (Rs.) Particulars Amount (Rs.)
Opening Stock 45,000 Sales 3,50,000
Purchases 1,20,000 Capital 2,00,000
Return Inwards 3,200 Discount Received 2,000
Carriage Inwards 2,400 Commission 1,600
Carriage Outwards 1,500 Dock Charges 5,000
Office Furniture 8,000| Electric Power 10,000
Return Outwards 2,500 Fuel, Gas and Water 12,000
Cash in Hand 8,100 Bad-debts 1,100
Cash at Bank 30,000 Advertisement 25,000
Motor vehicle 58,000 Salary 36,000
Motor repairs 3,000 Rent and Insurance 24,500
Interest on Bank loan 2,400 Household expenses 33,000
16. The share capital of acompany is Rs. 10,00,000 with shares of face value of Rs. 10. 6
The company has debt capitalof Rs. 6,00,000 at 10% rate of interest. The sales of
the firm are 3,00,000 units per annum at a selling price of Rs. 5 per unit and the
variable cost is Rs. 3 per unit. The fixed cost amounts to Rs. 2,00,000. The
company pays tax at 35%. If the sales increased by 10%, calculate:
() percentage increase in EPS
(ii) Degree of operating leverage at two levels, and
(ii)Degree of financial leverage at two levels
3
Part - C
Case Analysis /Case-lets /Applications of concepts
17. Given below is the information extracted from the books of Rolta Ltd. at the 14
end of the financial year 2022-23:
Net revenue from operations Rs. 2,00,000
Debt to asset ratio 0.6
Trade receivables turnover ratio 2.0
(Based on net revenue from operations)
Inventory Turnover ratio 1.25
Fixed asset turnover ratio 0.80
Net Profit margin 5%
Gross profit margin 25%
Return on investment 2%
From the above information available you are required to complete the
balance sheet given below.
Balance Sheet
Asat 31st March, 2023
Particulars Amount (Rs.)
I. EQUITY AND LIABILITIES
1.Share Holder's Fund
(a) Equity Capital
2. Non-Current Liabilities
(a) Long Term Debts
3. Current Liabilities
(a)Short term borrowings 1,00,000
?
II. ASSETS
1. Non-Current Assets
(a) Fixed Assets (Net): Tangible
2. Current Assets
(a) Inventory
(b)Trade Receivables ?
(c) Cash and Cash Equivalents
18. Following is the Balance Sheet of S.K. Ltd. as at 31st March, 2023 and 31st 14
March, 2022.
Particulars No 31.03.2023 31.03.2022
tes
I. EQUITY AND LIABILITIES
1.Share Holder's Fund
(a) Share Capital: Equity Shares 3,50,000 3,00,000
(b) Reserves and Surplus 1 1,75,800 75,000
2. Non-Current Liabilities
(a) Long Term Borrowings: 14%
Debentures 70,000
3. Current Liabilities
(a) Trade Payables 90,700 85,000
(b) Short term Provisions 2 75,500 52,500
7,62,000 5,12,500
II. ASSETS
1. Non-Current Assets
3
(a) Fixed Assets (Net): Tangible 5,36,500 3,20,900
2. Current Assets
(a) Inventory 95,700 82,400
(b)Trade Receivables 85,500 75,000
(c) Bank Balance 44,300 34,200
7,62,000 5,12,500
Notes to Accounts:
Particulars 31.03.2023 31.03.2022
1.Reserves and Surplus:
Securities Premium 30,000
General Reserves 65,000 45,000
Statement of Profit and Loss 80,800 30,000
2. Short term Provisions:
Provision for taxation 75,500 52,509
3. Tangible Assets:
Land and Building 3,90,000 2,30,000
Plant and Machinery 1,40,000 85,400
Furniture 6,500 5,500
4. Contingent Liability:
Proposed Dividend 35,000 30,000
Additional Information:
Depreciation written of during the year: Rs.
Land and Building 60,000
Plant and Machinery 50,000
Furniture 1,200
New debentures have been issued at the end of the year.
Youare required to prepare cash flow statement.
END OF QUESTION PAPER

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The ICFAI University

Campus IBS-JAIPUR Semester

Course Course Code SLAC501

Date: 29-09-2023 Time: 02:00 PM to 05:00 PM

To be filled by the candidate

ENROLLMENT NO. S P b53

CANDIDATE CAN RETAIN THE QUESTION BOOKLET

This question booklet comprises of Part A, Band C

Short Note Questions on Basic Concepts and application of Concepts

long term debts are Rs. 50,000. Calculate current ratio.

Basic Concepts, Conceptual Understanding,

END OF QUESTION PAPER

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