SMU MBA WINTER 2015 -2016

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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.

CAS
H

BANK

DA
TE

PARTI
CULAR
S

V.
N
O

L
F

DR
RS.

CAS
H

BANK

2. The difference in Trial Balance we kept in Suspense Account. The

following errors were discovered before preparing the Final Accounts ;
a. Purchase of Rs. 540 was written in Sales Day Book, but was posted to
the correct side of partys book.
b. Salaries Account total Rs. 12,600 on page 32 was carried over to the
next page as Rs. 1,260 on the wrong side.
c. Interest on overdraft Rs. 650 was not posted to the ledger from the
Cash Book.

d. Rs. 600 collected from a party, earlier written off as bad debt, was
credited to the partys account.
Show rectification entries and prepare a Suspense Account.
From the above shown rectification entries and prepare a Suspense account.
Answer:
Date Particulars

Journal
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
31.03.201 31.03.201 Assets
31.03.201
4
5
4
Rs.
Rs.
Rs.
Capital
9,60,000 10,00,000 Land
2,00,000
Bank loan
3,20,000
2,90,000 Building
3,70,000
Loan
from
1,20,000 Machiner
4,80,000
Bhaskar
y
Current
2,40,000
2,80,000 Stock
1,90,000
liabilities
Debtors
2,50,000
Cash
30,000
15,20,000 16,90,000
15,20,000

31.03.201
5
Rs.
2,50,000
4,40,000
5,50,000
1,60,000
2,70,000
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

Amoun
t

Outflow of cash

Amoun
t

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 :
i. P/V Ratio
ii. Break Even Point
iii. Required Sales to reach a profit of Rs. 40,000
iv. Profit when Sales are Rs. 2,50,000
v. Margin of Safety at a profit of Rs. 50,000
vi. Variable Costs for 2 years
Answer:
i) P/V ratio = change in profit/change in sales
= (25000-20000)/(170000-150000)
= 5000/20000
= 0.25 or 25%
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