I Semester M.B.A Degree(Reg./Supple.)Examination,January 2015
(2014 Adm.)
MBA1C02: ACCOUNTING FOR MANAGERS
Time: 3 Hours Max.Marks:80
SECTION-A
Answer two questions.Each question carriers 13 marks.
1.a)Discuss briefly the basic accounting concepts and fundamental accounting
assumptions.
OR
b) A firm had the following balances on 1st Jan.1988:
i)Provision for bad and doubtful debts Rs.2,500.
ii)Provision for discount on debtors Rs.1,200.
iii)Provision for discount on creditors Rs.1,000.
During the year bad debit amounted to Rs.2,000, discount allowed were
Rs.100 and discounts received were Rs.200. During 1989 bad debts
amounting to Rs.1,000 were written off while discounts allowed and received
were Rs.2,000 and Rs.500 respectively.
Total debtors on December 31st 1998 were Rs.48,000 before writing off
bad debts, but after allowing discounts. On December 31, 1998 the amount
was Rs.19,000 after writing off the bad debts, but before allowing discounts.
Total creditors on these two dates were Rs.20,000 and Rs.25,000
respectively.
It is firm's policy to maintain a provision of 5% against bad and doubtful
debts and 2% for discount on debtors and a Provision of 3% for discount
on creditors.
Show the accounts relating to provision on debtors and provision on
creditors for the year 1998.
2.a)'Management accounting provides immense help in management decision-
making'. Discuss.
OR
b) On the basis of the following information in respect of an engineering company.
What is the product mix which will give the highest profit attainable? Do you
recommend overtime working up to a maximum of 15000 hours at twice the
normal wage.
Product Manufactured A B C
Raw materials per unit 10kg 6kg 15kg
Labour hours per unit @ Rs.1/hr 15 25 20
Sales price per unit(Rs.) 125 100 200
Maximum production possible (units) 6000 4000 3000
1,00,000 kg raw materials are available @Rs.10 per kg. Maximum production
hours are 1,84,000 with facility for a further 15,000 hours on overtime basis at
twice to normal wage rate.
SECTION-B
Answer any six questions in the section.Each question carries 1 mark for part(a),
3mark for part (b), and 5 mark for part (c).
3. a) what do you mean by financial accounting ?
b) Explain different branches of accounting.
c) Prepare common-size income statement in vertical form from the following
income statement and comment.
P and L A/C for the year ended 31-3-99
To Cost of sales 4,91,400 By Gross sales 8,26,200
To Administrative Exp 81,000 (-) Returns 16,200
Show the accounts relating to provision on debtors and provision on
creditors for the year 1998.
2.a)'Management accounting provides immense help in management decision-
making'. Discuss.
OR
b) On the basis of the following information in respect of an engineering company.
What is the product mix which will give the highest profit attainable? Do you
recommend overtime working up to a maximum of 15000 hours at twice the
normal wage.
Product Manufactured A B C
Raw materials per unit 10kg 6kg 15kg
Labour hours per unit @ Rs.1/hr 15 25 20
Sales price per unit(Rs.) 125 100 200
Maximum production possible (units) 6000 4000 3000
1,00,000 kg raw materials are available @Rs.10 per kg. Maximum production
hours are 1,84,000 with facility for a further 15,000 hours on overtime basis at
twice to normal wage rate.
SECTION-B
Answer any six questions in the section.Each question carries 1 mark for part(a),
3mark for part (b), and 5 mark for part (c).
3. a) what do you mean by financial accounting ?
b) Explain different branches of accounting.
c) Prepare common-size income statement in vertical form from the following
income statement and comment.
P and L A/C for the year ended 31-3-99
To Cost of sales 4,91,400 By Gross sales 8,26,200
To Administrative Exp 81,000 (-) Returns 16,200
