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

1. (a) Explain, in detail, the following accounting concepts. 9

(i) Business Entity Concept

(ii) Money Measurement Concept

(iii) Continuity Concept

(b) In what way can accounting information help in proper allocation of resources ? 6

2. An analysis of Delhi Manufacturing Co. Ltd. led to the following information :

Budgeted sales are Rs: 18,50,000. you are required to determine. 15

(i) The break - even sales volume

(ii) The profit at the budgeted sales volume

(iii) The profit if actual sales

(a) drop by 10%.

(b) increase by 5% from budgeted sales.

3. (a) Explain, in detail, the concept and the process of Zero Base Budgeting. 7

(b) Explain the concept of financial leverage. In what day is financial leverage related to operating leverage ? Explain this using a suitable example. 8

4. What is a dividend, and why is dividend decision important ? Also explain the factors on which the dividend decision of a company are based. 15

5. (a) (i) Explain three components of working capital.

(ii) Explain any two determinants of working capital requirements of a firm. 10

(b) The following is the Trial Balance of Mr..Ram as on 31^st March, 2004. you are required to prepare Trading and profit and Loss Account and the Balance Sheet. 20

The following adjustments are to be made :

1. Stock on 31^st March, 2004 Rs. 5200.

2. 3 months factory lighting and heating is due, but not paid Rs. 30.

3. 5% depreciation to be written off on furniture.

4. Write off further bad debts Rs. 70.

5. The provision for doubtful debts to be increased to Rs. 300 and provision for discount on debtors @ 2%to be made.

6. During the year machinery was purchased for Rs. 2,000, but it was debited to purchase account.