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

ADCA / MCA (II Yr)
Term-End Examination

December, 2005

CS-54 (S) : 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) (a) What are accounting concepts ? Explain any three accounting concepts. (8)

(b) What is 'variance' ? With the help of a suitable example, calculate Direct Material Cost Variance, Price Variance and Usage Variance. (7)

2. (a) (a) What is 'working capital' ? What are the different components of working capital ? (9)

(b) What are the factors affecting dividend decisions? (6)

3. (a) What is meant by 'investment appraisal' ? Explain the Pay Back Period Method and Accounting Rate of Return Method. (7)

(b) What is the difference between the following ? Give examples to illustrate your explanation. (8)
(i) Fixed Cost and Variable Cost
(ii) Funds Flow Statement and Schedule of Changes in Working Capital.

4. (a) What are fhe different types of Budgets ? What are the purposes of classifying budgets into different types ? (10)

(b) Explain the important ratios that are used for comparing the actual performance with the budgeted performance. (5)

5. From the following particulars for the year ending 31st March 2002 of XYZ Ltd., prepare a Trading and Profit and Loss A/c and Balance Sheet on that date. (30)

Particulars	Amount	Particulars	Amount
Shri XYZ's Capital	2,28,800	Stock 1.4.1997	38,500
Shri XYZ's Drawings	13,200	Wages	35,200
Plant and Machinery	99,000	Sundry creditors	44,000
Freehold property	66,000	Postage and Telegrams	1,540
Purchases	1,10,000	Insurance	1,760
Returns Outwards	1,100	Gas and Fuel	2,970
Salaries	13,200	Bad debts	660
Office expenses	2,750	Oflice rent	2,860
Office furniture	5,500	Freight	9,900
Discounts A/c (Dr.)	1,320	Loose Tools	2,200
Sundry debtors	29,260	Factory lighting	1,100
Loan to Shri Krishna @ 10% p.a. - balance as on 1.4.97	44,000	Provision for D/D	880
		Interest on Loan to Shri Krishna	1,100
Cash at bank	29,260	Cash on hand	2,640
Bills Payable	5,500	Sales	2,31,440

Adjustments :

(i) Stock on 31st March, 2002 was valued at Rs.72,600.

(ii) A new machine was installed during the year costing Rs. 15,400 but it was not recorded in the books as no payment was made for it. Wages Rs. 1,100 paid for its erection have been debited to Wages account.

(iii) Depreciate:
Plant and Machinery by 33 1/3%
Furniture by 10%
Freehold property by 5%

(iv) Loose tools were valued at Rs.1,760 on 31.3.1998.

(v) Of the Sundry debtors Rs. 600 are bad and should be written off.

(vi) Maintain a provision of 5% on Sundry debtors for doubtful debts.

(vii) The manager is entitled to a commission of 10% of the net profits after charging such commission.