Test Papers / Previous Question Papers of IGNOU CS54 Finance & Accounting on Computers June 2005

ADCA / MCA (II Yr)
Term-End Examination

June, 2005

CS-54 : Finance & Accounting on Computers

Time: 3 hours
Maximum Marks: 75

Note : Question No. 5 is compulsory. Answer any three questions from the rest.

1. (a) From the following information calculate all Material and labour variances.
Material purchased (20,000 units) Rs. 88,000
Material consumed (19,000 units)
Actual wages paid for 4950 hours Rs. 24,750
Units produced 1,800 units
Standard rates and pieces are :
Direct material rate is Rs. 4 00 per unit
Standard input is 10 numbers for one unit
Direct labour rate is Rs. 4 00 per hour
Standard requirement is 2.5 hours per unit. (10)

(b) What do you understand by 'Variance analysis' ? Also explain how the variance can be controlled. (5)

2. (a) Differentiate between Profit Maximisation and Wealth Maximisation objective of the firm. (5)

(b) Explain the concept and process of the following: (i) Zero base budgeting (5)
(ii) Performance budgeting (5)

3. (a) Explain, in detail, the various parameters used for judging the efficiency in managing working capital. (7)

(b) Briefly explain the various determinants of capital structure. (8)

4. What is dividend policy ? Explain in detail, the vaious forms of dividend and the factors affecting dividend decisions. (15)

5. From the following particulars for the year ending 31st March 2003 of M/s XYZ Ltd., prepare Trading and Profit and Loss A/c and Balance Sheet on that date

	Rs.		Rs.
Stock (1.4.2002)	23,200	Advertisement	15,950
Capital (1.4.2002)	1,45,000	Apprenticeship Premium	3,480
Purchases	58,000	Bills receivable	10,150
Sales	2,32,000	Bills Payable	7,250
Office Expenses	23,345	Sundry debtors	58,000
Return Inward	4,350	Plant & Machinery	13,050
Interest on Loan	870	Sundry creditors	45,820
Return Outward	1,160	Loan (Dr) @ 10% on 1.4.20O2	14,500
Drawings	8,700	Investment	8,700
Wages	20,010	Cash at bank	10,150
Land and building	1,59,500	Cash in hand	725
Furniture and fixtures	7,250	Stock (31.3.2003)	20,300

Adjustments :

(i) lnterest on capital to be allowed at 5% for the year.
(ii) Interest on drawings to be charged for the year is Rs.232.
(iii) Apprenticeship premium is for three years recelved in advance on 1st April 2002.
(iv) Stock valued at Rs. 8,700 destroyed by fire on 25.3.2003, but the insurance company admitted a claim of Rs. 5,800 only to be paid in the year 2004.
(v) Rs. 14,500 out of advertisement expenses are to be carried forward.
(vi) The manager is entitled to a commission of 10% at the net profit calculated after charging such commission.
(vii) The stock includes material worth Rs.2,900 for which bill had not been received and therefore not yet accounted for. (30)