MCA MAGADH UNIVERSITY QUESTION (2010-2013) (second semester) Principles of Accounting

MCA MAGADH UNIVERSITY QUESTION (2010-2013) (second semester) Principles of Accounting

                                                                           2010-2013
                                                                      Full Marks: 80
                                                                      Time: 4 hours
                                               Candidates are required to give their answers in
                                                       their own words as far as practicable.
                                                        The questions are of equal value.
                                                           Answer any five questions.

1.  What do you mean by accounting conventions? Explain the main accounting conventions.

2. Use accounting equation to show the effect of the following transactions of M/s Royal traders:
                                                                                                Rs
   (i). started business with cash                                         1,20,000
   (ii). Purchased goods for cash                                           10,000
   (iii) Rent received                                                                5,000
   (iv) Salary outstanding                                                        2,000
   (v) Prepaid Insurance                                                          1,000
   (vi) Received Interest                                                            700
   (vii) Sold goods for cash (Costing Rs 5,000)                     7,000
   (viii) Goods destroyed by fire                                               500

3. What do you understand by Financial Statements? Discuss the various types of financial statements that are usually prepared by the businessman.

4. What is depreciation?  Briefly describe the different methods of providing for depreciation.

5. What do you understand by classification of cost? Explain in detail.

6. Form the following information calculate-
    (a) P/V ratio;
    (b) BEP;
    (c) Margin of safety:                                                  2009               2010
                                                                                        Rs                     Rs
             Sales                                                                 5,00,000         7,50,000
           Fixed cost                                                           1,00,000         1,25,000
           Variable costs                                                     2,75,000         4,50,000

7. Form the following particulars, calculate-
    (a) Material cost variance;
    (b) Material price variance;
    (c) Material usage variance;
         When-
           Standard quantity- 24 kg
           Standard price-    4.5 per kg
           Actual quantity-   30 kg
          Actual Price- Rs 5 per kg

8. What is budgeting? What are the essentials of an effective budgeting system?

9. What is management control system? Explain the various key variables of management.

10. Explain the meaning and different types of ' responsibility centers'. How far these centers are helpful to management.

11. What is transfer price? What are the different types of transfer price?

12. Write short notes on any two of the following:
      (a) Distinction between Trial Balance and Balance sheet
      (b) Importance of Fund Flow statement
      (c) Allocation and apportionment of overheads
      (d) Role of reporting system in effective management