SMU MBA SEM 1- MB0041 WINTER 2015 -2016

SMU MBA WINTER 2015 -2016

Dear Students,

SMU MBA WINTER 2015-2016 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420  or S M S your “ Email ID ” us in the following Format  “  On +91 9995105420 we will reach back you with in 24H ”

 

MB0041

Winter 2015

 

  1. The Cash Book of Reid Ltd. furnishes the following balances on 25th October 2015. Cash in hand 4,200; Cash at Bank 7,650; Discount Allowed total 420 and Discount Received total Rs. 950.

The following transactions occurred during last week of October 2015 :

April 26 : General expenses Rs. 920 paid in cash

26 : Cash Sales Rs. 9,200

27 : A cheque Rs. 3,040 received from a debtor, K. Ball in full settlement of Rs. 3,200.

27 : A cheque sent to supplier, Baker Ltd. in settlement of dues Rs. 14,000 less 5 % Discount.

28 : Bank notified that a cheque Rs. 2,210 received from Mc Dermot returned dishonoured.

30 : An old delivery van was sold for Rs. 71,000 and a cheque received.

30 : A cheque sent to a supplier, Ford Ltd. in immediate payment of an invoice, list price Rs. 8,000, less 25 % Trade discount and 5 % Cash discount.

Prepare a Triple Column Cash Book in the books of Reid Ltd.

Based on above Prepare a Triple Column Cash Book in the books of Reid Ltd. For the week as above.

 

Answer: Triple Column Cash Book in the books of Reid Ltd

DA

TE

PARTI

CULARS

V.

NO

L

F

DA

RS.

CASH BANK DA

TE

PARTI

CULARS

V.

NO

L

F

DR

RS.

CASH BANK

 

 

  1. The difference in Trial Balance we kept in Suspense Account. The following errors were discovered before preparing the Final Accounts ;
  2. Purchase of Rs. 540 was written in Sales Day Book, but was posted to the correct side of party’s book.
  3. Salaries Account total Rs. 12,600 on page 32 was carried over to the next page as Rs. 1,260 on the wrong side.
  4. Interest on overdraft Rs. 650 was not posted to the ledger from the Cash Book.
  5. Rs. 600 collected from a party, earlier written off as bad debt, was credited to the party’s account.

Show rectification entries and prepare a Suspense Account.

From the above shown rectification entries and prepare a Suspense account.

 

Answer:                                                                Journal

Date Particulars L.f Debit credit

 

 

3 Prepare the Balance Sheet of Mr. Devdas from the following :

Stock velocity 6

Gross profit margin 20 %

Capital Turnover ratio 2

Fixed Asset turnover ratio 4

Debt collection period 2 months

Creditors payment period 73 days

Gross profit Rs. 60,000; Excess of closing stock over opening stock Rs. 5,000; Difference in Balance Sheet represents Bank balance.

From the above particulars, prepare a Balance Sheet of Mr. Devdas.

 

Answer: Working Notes:

  1. Sales

Gross Profit Margin = 20%

Gross Profit/Sales = 20%

60,000/Sales = 20%

 

 

 

4 Balance Sheet of Bhaskar and Soumya are as follows :

Liabilities 31.03.2014 31.03.2015 Assets 31.03.2014 31.03.2015
  Rs. Rs.   Rs. Rs.
Capital 9,60,000 10,00,000 Land 2,00,000 2,50,000
Bank loan 3,20,000 2,90,000 Building 3,70,000 4,40,000
Loan from Bhaskar   1,20,000 Machinery 4,80,000 5,50,000
Current liabilities 2,40,000 2,80,000 Stock 1,90,000 1,60,000
      Debtors 2,50,000 2,70,000
      Cash 30,000 20,000
  15,20,000 16,90,000   15,20,000 16,90,000

 

During the year Bhaskar and Soumya introduced introduced additional capital o Rs. 20,000 and drew Rs. 60,000. Provision for depreciation on Machinery – opening balance Rs. 2,00,000 and closing balance Rs. 2,20,000. No other depreciation was provided on any assets. The value Building was increased by Rs. 25,000 and same was adjusted with capital a/c.

Prepare a Cash Flow Statement of Bhaskar & Soumya.

Based on the above Balance Sheet and adjustment items prepare a Cash Flow Statement of Bhaskar and Soumya.

 

Answer: Cash flow statement of Bhaskar & Soumya for the year ended on 31st March 2015

Inflow of cash Amount Outflow of cash Amount

 

5 The sales and profit during two years were as follows ;

Year                     Sales                    Profit

  Rs.                         Rs.

2013-14            1,50,000           20,000

2014-15            1,70,000           25,000

Calculate :

  1. P/V Ratio
  2. Break Even Point

iii. Required Sales to reach a profit of Rs. 40,000

  1. Profit when Sales are Rs. 2,50,000
  2. Margin of Safety at a profit of Rs. 50,000
  3. Variable Costs for 2 years

 

Answer:

  1. i) P/V ratio = change in profit/change in sales

= (25000-20000)/(170000-150000)

= 5000/20000

= 0.25 or 25%

 

  1. ii) Break Even Point

sales*p/v ratio – fixed cost = profit

170000*25% – fixed cost = 20000

 

 

6 Enumerate steps to prepare a Funds Flow Statement

Steps to prepare a Funds Flow Statement

 

Answer: Preparing the Fund Flow Statement

Having arrived at the change in the working capital, funds from operations (or funds lost in operations), identified the sources and applications of funds, the next step is to put them in the form of a summarised statement.

 

For this purpose, a statement listing the sources of funds and applications of funds is prepared.

 

SMU MBA WINTER 2015 -2016

Dear Students,

SMU MBA WINTER 2015-2016 Assignments are available. For Booking ,Kindly mail us on kvsude@gmail.com OR call us to +91 9995105420  or S M S your “ Email ID ” us in the following Format  “  On +91 9995105420 we will reach back you with in 24H ”