MCA MAGADH UNIVERSITY QUESTION (2015-2018) (Second semester) Principles of Accounting

MCA MAGADH UNIVERSITY QUESTION (2015-2018) (Second semester) Principles of Accounting 

                                                                          2015-2018
                                                                       Time: 4 hours
                                                                     Full marks: 80
                                                 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 various accounting conventions.

2. Use accounting equation to show the effect of the following transactions of M/s kishan Traders, Varanasi:
                                                                                       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                                            7,000
           (costing Rs. 5,000)
   (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. From the following informations calculate:
   (a) P/V Ratio
   (b) BEP
   (c) Margin of safety
                                                                        2015                  2016
                                                                         (Rs)                  (Rs)
         sales                                                   5,00,000              7,50,000
        Fixed Cost                                          1,00,000              1,25,000
        Variable cost                                       2,75,000              4,50,000

7. From the following particulars, calculate:
    (a) Material cost variance
    (b) Material Price Variance
    (c) Material Usage variance
       When:
       Standard quantity-24 kg
       Standard Price - Rs 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 control system.

10. Explain the meaning and different types of ' Responsibility Centres'. How far these centres 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 for effective management