financial and management accounting 2

Q.1a.List the accounting standards issued by ICAI.

1b.Write short notes of IFRS

Q.2Prepare a Three-column Cash Book of M/s Thuglak & Co. from the following particulars:

1. Cash in hand Rs. 50,000, Bank Overdraft Rs. 20,000

20X1 Jan

2. Paid into bank Rs. 10,000

3. Bought goods from Hari for Rs, 200 for each

4. Bought goods for Rs. 2,000 paid cheque for them, discount allowed 1%

5. Sold goods to Mohan for each Rs. 1.175

6. Received a cheque from Shyam to whom goods were sold for Rs. 800.Discount allowed 12.5%

7. Shyam’s cheque deposited into bank

8. Purchased an old typewriter for Rs. 200 , Spent Rs. 50 on its repairs

9. Bank notified that Shyam’s cheque has been returned dishonored and debited the account in respect of charges Rs. 10

10. Received a money order Rs. 25 from Hari

11. Shyam settled his account by means of a cheque for Rs. 820, Rs. 20 being for interest charged.

12. Withdrew from the bank Rs. 10,000

18. Discounted a B/E for Rs. 1,000 at 1% through bank

20. Honored our own acceptance by cheque Rs. 5,000

22. Withdrew fir personal use Rs. 1,000

24. Paid tread expenses Rs. 2,000

25. Withdrew from bank for private expenses Rs. 1,500

26. Purchased machinery from Rajiv for 5,000 and paid him by means of a bank draft purchased for Rs. 5,005

27. Issued cheque to Ram Saran for cash purchased of furniture Rs. 1,575

28. Received a cheque for commission Rs. 500 from R.& Co. and deposited into bank

29. Ramesh who owned us Rs. 500 became bankrupt and paid us 50 paise in the rupee

30. Received payment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of into bank

31. Paid rent to landlord “Mohan” by cheque of Rs. 220

32. Interest allowed by bank Rs. 30

33. Half-yearly bank charges Rs. 50

Q.3Choose an Indian Company of your choice that has adopted Balance Score Card and detail on it.

Q.4What is a cash budget? How it is useful in managerial decision making?

Q.4From the following data of Jagdish Company prepare (a) a statement of source and uses of working capital (funds) (b) a schedule of changes in working capital

Assets

2008

2007

Cash

1,26,000

1,14,000

Short-term investment

42,400

20,000

Debtors

60,000

50,000

Stock

38,000

28,000

Long term Investment

28,000

44,000

Machinery

2,00,000

1,40,000

Building

2,40,000

80,000

Land

14,000

14,000

Total

7,48,400

4,90,000

Liabilities and Equity

Accumulated depreciation

1,10,000

60,000

Creditors

40,000

30,000

Bills Payable

20,000

10,000

Secured loans

2,00,000

1,00,000

Share capital

2,20,000

1,60,000

Share premium

24,000

Nil

Reserves and surplus

1,34,400

1,30,000

Total

7,48,400

4,90,000

Income statement

1,34,600

Cost of goods sold

1,05,200

Gross Profit

92,000

Less Operating expenses:

Depreciation – machinery 20,000

Depreciation – building 32,000

Other expenses 40,000

13,200

Net profit from operation

4,800

Gain on sale on long-term investment

18,000

Total

2,000

Loss on sale of machinery

16,000

Net Profit

Adjustments:

1) Machinery worth Rs.70000 was purchased and worth Rs.10000 was sold during the year [Accumulated depreciation on machinery is Rs.18000 after adjusting depreciation on machinery sold]. Proceeds from the sale of machinery were Rs.6000

2) Dividends paid during the year Rs.11600