K.L.E.

Society’s College of Business Administration – BBA, Hubli

THIRD SEMESTER B.B.A. DEGREE EXAMINATION, NOVEMBER 2012

BUSINESS STATISTICS
[Time : 3 Hours] [Max.Marks:75]
Non-programmable calculators are allowed.
Stepwise solutions to the problems expected.
Section A
1. Answer any ten of the following. Each question carries two marks. (10x2=20)
(a) Mention any two characteristics of statistics.
(b) State the Croxton - Cowden definition of statistics.
(c) What is descrete variable? Give an example.
(d) Write any two methods of collection of Primary data.
(e) Name any two parts of a statistical table.
(f) Mention two advantages of diagramatic representation.
(g) Write types of ogives.
(h) Mention any two merits of median.
(i) Write the formula for mean deviation.
(j) If a=4 & Mean = 12 find co-efficient of variation.
(k) Mention any two components of time series.
(1) Mention two limitations of Index Numbers.

Section B
Answer any four of the following questions. Each question carries five marks. ( 4 x 5 = 20)

1. Define classification and briefly explain types of classification with examples.

2. Find missing frequency if Median is 78

CI 64-68 68-72 72-76 76-80 80-84 84-88
f 3 12 -- 40 32 11
3. Represent following frequency distribution by histogram and locate value of mode.
CI 60-80 80-90 90-95 95-100 100-105 105-110 110-120
f 10 15 10 16 12 5 5
4. Calculate Quartile Deviation from the following distribution.
CI 13-16 16-18 18-20 20-21 21-22 22-23 23-25 25-30
f 1 21 27 51 42 32 16 10
 K.L.E.Society’s College of Business Administration – BBA, Hubli

5. Fit a straight line trend for the following time series using 3 yearly moving averages.
Year 2001 2002 2003 2004 2005 2006 2007
Value 412 438 446 454 470 483 490
6. The mean mark scored by the students of a class is 53. The mean marks of the girls is 55 and
Mean marks of boys is 50. What is the percentage of girls?

Section C
Answer any two of the following questions. Each question carries ten marks. (2 x 10 = 20)
1. What is Index number? Explain steps for the construction of Index numbers.
2. Show with the following example that Fisher‟s Price Index number satisfies “TRT” and “FRT”.
Commodity Price in the Quantity in the
Base Year Current Year Base Year Current Year
A 4 5 10 10
B 10 12 5 4
C 3 4 3
2
D 2 4 1 2
3. Fit a straight line trend y = a + bx and also estimate the trend value for the year 2006.
Year 1992 1994 1996 1998 2000 2002 2004
Value 77 81 88 94 94 96 98
4. From the following runs scored by two batsmen Virendra and Rahul find who is more consistent
batsman.
Virendra 58 92 86 04 30
Rahul 60 64 72 80 40

Section D (Compulsory)
From the following distributions regarding the wage payments in firms Pragati Associates and Revati
Associates comment on the following.
(i) In which firm the total wages are more?
(ii) In which firm the average wages are more?
(iii) Which firm is consistent in payments?
(iv) Find combined Arithmatic mean.
Pragati Assoicates Revati Associates
No. of Workers 100 140
Arithmatic Mean 54 60
Standard Deviation 9 6 1x15=15
 K.L.E.Society’s College of Business Administration – BBA, Hubli

THIRD SEMESTER B.B.A. DEGREE EXAMINATION, NOVEMBER 2012

CORPORATE ACCOUNTING Paper I
[Time: 3 Hours] [Max.Marks:75]
Answer all the questions in the same answer book.
Give working notes wherever necessary.
Attempt questions according to internal choice in each section.
Use simple calculators.
Section A
Answer any ten questions.
Each question carries 2 marks.
1. a) What is Authorised capital?
b) What do you mean by issue of shares at premium?
c) What is cumulative preference share?
d) What are bonus shares?
e) Give any two benefits of rights issue.
f) State any two conditions to be fulfilled by a company for buy back of shares.
g) Give any two items which are included in the free reserves.
h) What do you mean by net asset?
i) How do you ascertain value of equity share according to yield method based on rate of dividend?
j) What is Price Earning Ratio?
k) Why is the capital redemption reserve account is created?
1) Mention any two conditions for redemption of preference shares. (10x2=20marks)

Section B
Answer any four questions.
Each question carries 5 marks.
2. What is the meaning of Joint Stock Company? Explain briefly any three features of a company.
3. What are the merits of issue of bonus share?
4. State the difference between rights issue and Public issue.
5. ABC Co. Ltd declared a bonus of Rs. 12, 00,000 out of its general reserve. The bonus is to be utilised as
follows : —
a) To pay Rs. 2, 00,000 as cash bonus.
b) To issue Rs. 25,000 equity shares of Rs. 20 each fully paid bonus shares.
Pass the journal entries in the books of ABC Co. Ltd.
 K.L.E.Society’s College of Business Administration – BBA, Hubli

6. Nitin Co. Ltd decided to make a rights issue in the proportion of one new share of Rs. 200 each at a
premium of Rs. 60 per share to the shareholders for every three existing shares. The market value of
the shares at the time of announcement of rights issue is Rs. 500 per share.

Calculate the value of right.

7. The following are the particulars relating to XYZ Co. Ltd.
a) Rs. 20,000 Equity shares of Rs. 10 each fully paid.
b) 2,000 10% preference shares of Rs. 100 each fully paid.
c) Expected profit for the year before income-tax Rs. 1, 00,000.
d) Income tax rate 30%.
e) Transfer to General Reserve at 20% of profit every year.
f) Normal rate of return 15%.
Calculate the value of an equity share under yield method. (4x5=20marks)

Section C
Answer any two of the following.
Each question carries 10 marks.
8. Mahalaxmi Mills Ltd., issued 10,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share
payable as to Rs. 2 per share on application, Rs. 5 on allotment (including premium) and Rs. 5 on first
and final call. All the shares were subscribed and the money received except the first and final call on
1,000 shares.
Pass the journal entries to record the above transactions.
9. The following is the Balance sheet of Radha Co. Ltd as on 31-3-2012 : —
Liabilities
Amount Assets Amount
(in Rs.) (in Rs.)
Share capital Fixed Assets 4, 00,000
40,000 shares of Current Assets
Rs. 10 each fully paid 4, 00,000 Loans and Advances
2,40,000
Reserve and Surplus S Stock
2, 00,000
Securities premium 40,000 Sundry Debtors
3.60.000
General Reserve Secured 3, 60,000 Bank
Loans 14% Debentures
Current Liabilities 2, 00,000
2, 00,000
12, 00,000
12, 00,000
 K.L.E.Society’s College of Business Administration – BBA, Hubli

The following decision was taken in the meeting of the shareholders: —

a) To buy back 20% of the equity shares at Rs. 12 per share.
b) To utilise general reserve for buy back of shares.
c) To utilise share premium for the premium payable on the buy of shares.

Pass the necessary journal entries and prepare the balance sheet after the above transactions are
recorded.
10. The balance sheet of Sai Co. Ltd as on 31-3-2012 reveals the following : —
Liabilities Amount Assets Amount
(in Rs.) (in Rs.)
Share capital Fixed Assets 9, 00,000
Equity shares of Rs. 10 Less: Depreciation 1, 10,000 ... 7, 90,000
Rs. 8 paid ... 8, 00,000
Reserves ... 2, 00,000 Goodwill ... 80,000
P & L Account ... 20,000 Current Assets ... 4, 90,000
10% Debentures ... 1, 00,000 Discount on Debenture ... 10,000
Current Liabilities ... 2, 50,000
13, 70,000 13, 70,000
Additional Information:
a) Fixed assets and goodwill were revalued at Rs. 7, 50,000 and Rs. 1, 00,000 respectively.
b) The net profits after tax for the immediately preceding three years were Rs. 1,10,000 Rs.
1,05,000 and Rs. 1,45,000 of which 25% were transferred to reserve.
c) A fair return in the industry in which the company is engaged is considered to be 10%.
Compute Fair Value per Equity share.

11. Write short notes on any two :

a) Need for valuation of shares.
b) State any five conditions of buy back of shares.
c) Explain briefly the guidelines issued by the SEBI for issue of bonus shares.
d) Explain in brief the different kinds of shares that are issued by a company.
(2 x 10 = 20 marks)
 K.L.E.Society’s College of Business Administration – BBA, Hubli

Section D
Compulsory Question.
12. The following is the Balance sheet of a Pragati Co. Ltd as on 31.12.2011

Liabilities Assets Amount

(Rs.)

Share capital Building 2, 00,000

50.0
1,000 Redeemable Preference Machinery
4,000
shares of Rs. 100 Furniture 56.000
each fully paid
1, 00,000 Investments Stock 70.000
18,000 equity shares of
1, 80,000 Sundry debtors 80,000
Rs. 10 each fully paid
20,000 Cash at Bank 40,000
Share Premium
40.000
General Reserve
50.000
Profit and Loss A/c
Sundry creditors
.
1 10.000

5, 00,000 5, 00,000
The company decided to redeem its preference shares at a premium of 5% on 31-1-2012. For this
purpose the company made a fresh issue of 2,000 equity shares of Rs. 10 each at Rs. 12 per share
payable in full on 31-1-2012. These shares were fully subscribed and all the moneys were duly
received.
The investments were sold by the company for Rs. 54,000 and decided that only a minimum
reduction should be made in the general reserve.
Pass the journal entries for the above transactions and prepare the balance sheet of the company
after incorporating the above transactions and also Bank account. (1 x 15 = 15
marks)
 K.L.E.Society’s College of Business Administration – BBA, Hubli

THIRD SEMESTER B.B.A. DEGREE EXAMINATION, NOVEMBER 2012

*

COMPUTER APPLICATIONS -1

[Time: 3 Hours] [Max.Marks:75]

Section A
1. Answer any ten of the following questions. Each question carries 2 marks : (10 x 2 = 20)
a) Define the term operating system. Give examples.
b) What do you mean by memory? Mention its types.
c) Convert (1011011)2 —» ( )10
(9CF) 16 —> ( )8
d) State any four features of M/s. Excel.
e) What is cell reference?
f) List any four types of chart in M/s. Excel.
g) Write the steps to insert new sheet in M/s. Excel.
h) State any four advantages of database.
i) Differentiate between DELETE and PACK command,
j) Write the rules to name a field in Foxpro.
k) List any four operators in Foxpro.
1) Give the syntax for SORT commandwith example.
•

Section B
Answer any four questions. Each question carries 5 marks: ( 4 x 5 = 20)
2. Explain generations of computers.
3. Explain timesharing & multiprogramming operating system.
4. Explain the components of MS-Excel sheet.
5. Explain the Mathematical functions in MS-Excel.
6. Differentiate between SORT and INDEX command.
7. Explain the SET commands with syntax and example.
 K.L.E.Society’s College of Business Administration – BBA, Hubli

Answer any two questions. Each question carries 10 marks (2x10 = 20)
8. Explain Block diagram of computer identifying each components.
9. Explain in detail steps involved in creating the chart.
10. Explain the following:
a) Date functions in FoxPro.
b) Mathematical functions in FoxPro.
8. Explain the following FoxPro commands with syntax and example :
a) APPEND
.
b) INDEX.
c) CREATE
.
d) ZAP.
RECALL
e) .

Section D

Answer the following question which is compulsory. (15)

9. Pavan Telecommunication company appoints you to manage their employee database in the
computer and asked to perform the following operations :
a) Create an employee database with the following fields Employee code, name, department
& basic salary.
b) Insert b records in the database.
c) Display columns name and department where department - “Sales”.
d) Delete all the records whose basic salary is less than Rs. 4,000.
e) Sort the column salary in ascending order.
 K.L.E.Society’s College of Business Administration – BBA, Hubli

THIRD SEMESTER B.B.A. DEGREE EXAMINATION, NOVEMBER 2012

SMALL BUSINESS MANAGEMENT
[Time: 3 Hours] [Max.Marks:75]
Answer the questions in a systematic way by putting
Proper section numbers & question numbers.

Section „A‟ - (Marks: 10 x 2 = 20)

I. Answer any ten questions. Each question carries 2 marks :

1. Define SSI.
2. Define venture Capital.
3. Define an Ancillary Unit.
4. What is a project report?
5. What is an Industrial Estate?

6. Define ROI.
7. What is Feasibility Study?
8. Expand SIDO & GIM.

9. Define a Sick Industry.

10. What is a Tax Holiday?
11. Define EDP.

12. What is meant by Subsidy?

Section ‘B’ - (Marks: 4 x 5 = 20)

II. Answer any four questions. Each question carries 5 marks :

1. Explain the factors to be considered while choosing location for SSIs.
2. Mention thedifferent signals of Industrial Sickness.
3. Explain theinitiatives taken by the Government in promoting SSIs in India.
4. Explain thevarious types of Industrial Estates.
5. Explain therole of DIC in the development of SSI.
6. Write a note on Rural Industries.
 K.L.E.Society’s College of Business Administration – BBA, Hubli

Section ‘C’ - (Marks: 2 x 10 = 20)

Answer any two questions. Each carries 10 marks:

Explain the causes & consequences of Industrial Sickness.
Explain the various sources of finance available to SSIs.
Explain the various steps involved in the preparation of a project report.
Explain the role of SSIs in International Business.

Section ‘D’ - (Marks: 15)

(Compulsory)

Case Study:
Reviving Khadi in India: Khadi Looses its shine.
Khadi, which symbolized self-reliance and liberalisation during the freedom struggle in India, has
lost its shine over the years. And there are several reasons for the same. Post 1947, India opted for
state led large scale industrialisation.

With many Indian industrialists setting up huge textile mills, the mass production of fine cloth led
to the availability of cloth at lower prices. People began to buy machine made textiles and thus
khadi began loosing out to the mill fabric. In January 1953, the All India Khadi & Village
Industries Board was set up to provide employment to thousands of spinners all over India.

In 1957, the Khadi & Village Industries Commission (KVIC) was established to take over the work
of the board. KVIC was formed as a nodal agency to promote khadi all over India through its
exclusive outlets known as Khadi Bhandars. The Government of India has ever since continued its
support to Khadi.

It was becoming extremely difficult for Khadi to compete with high-tech, colour fast, wrinkle free,
mill made cotton & blends available today. According to analyst, Khadi required Government
Sanction in every single activity & has therefore been stuck in a bureaucratic swamp, unable to
increase its output or raise the quality of the fabric.

1. Discuss the reasons for the Khadi industry to loose its market.
2. Suggest your strategies to revamp the Khadi industry to its glory.
 K.L.E.Society’s College of Business Administration – BBA, Hubli

THIRD SEMESTER B.B.A. DEGREE EXAMINATION, NOVEMBER 2012

MARKETING RESEARCH
[Time: 3 Hours]
Do not write general answers. [Max. Marks: 75]
Section D is Compulsory.

Section A - (Marks: 10 x 2 = 20)

Answer any ten, each question carries 2 marks.

1. Define research design.

2. Mention any two disadvantages of secondary data.
3. What is field experiment?
4. What do you mean by sampling frame?
5. What are the various methods of collecting primary data?
6. What do you mean by action research?
7. Give a model for „After only‟ experimental design.
8. What do you mean by questionnaire?
9. What is „Standard Test Market‟?
10. What is „Type I Error‟?
11. What do you mean by interview?
12. What do you mean by Null hypothesis?

Section B - (Marks: 4 x 5 = 20)

Answer any four, each question carries 5 marks.

1. Describe the need and importance of research in business.

2. Discuss the advantages and disadvantages of secondary data.
3. Discuss the various scales of Measurements.
4. Discuss the contents of a Marketing Research Report.
5. Elaborate the process of constructing a questionnaire.
6. Discuss the various survey methods.
 K.L.E.Society’s College of Business Administration – BBA, Hubli

Section C - (Marks: 2 x 10 = 20)

Answer any two questions, each question carries 10 marks.

7. Describe the various types of research.

8. What do you mean by Attitude Scale? Explain the different forms of attitude scales
with example.
9. Explain the sampling process.
10. Write short notes on :
a) Observations.
b) Test Marketing.

Section D - (Marks: 7 + 8 = 15)

(Compulsory)

11. Telephone Regulatory Authority of India (TRAI) wants to have a detailed profile of cellular
phone users. So as to advice Indian cellular operators on different segments.
You are appointed as a consultant; it wants you to profile the Indian Market so as to aid
them in advising the cellular operators.
The consumer profile should include demographic psychographic, behavioural, usage rate
& user status data:

a) Prepare a suitable research proposal for the same.

b) Draft a suitable questionnaire to elicit the above said information.
 K.L.E.Society’s College of Business Administration – BBA, Hubli

THIRD SEMESTER B.B.A. DEGREE EXAMINATION, NOVEMBER 2012

COSTING FUNDAMENTALS (Theory)
[Time: 3 Hours] [Max.Marks:75]
Answer the questions as per internal choice given.
Use simple calculator.
Section A
1. Answer any ten of the following. Each question carries 2 marks : —
a) What is Cost Accounting?
b) What are the advantages of Cost Accounting to Employees?
c) What is Prime cost?
d) What is Bin card?
e) What is Danger-stock level?
f) What is Labour hour rate?
g) What do you mean by primary distribution?
h) What is job costing? Give an example.
i) What is batch costing? Give an example,
j) What is P/v Ratio?
k) What is Marginal costing?
1) What is the need for Reconciliation? ( 1 0 x 2 =20)
Section B
Answer any four of the following.
Each question carries 5 marks.
2. Describe five methods of cost classification.
3. Define the term material control and explain the duties of the purchase Manager.
4. Madhu Bakery has the following data :
Consumption : Minimum - 10kg per day
Maximum - 16 kg per day
Delivery time
EOQ
4 to 6 days
Flour used during the month March
1 Quintal
4 Quintals and 23 kg

Calculate different stock levels and Material Turnover Index.

 K.L.E.Society’s College of Business Administration – BBA, Hubli

5. Compute the Machine Hour Rate from the following: -

Rs.
Cost of the Machine 5, 00,000
Installation charges 50.000
Scrap value (after its life of 5 yrs) 25,000
Rent and Rates for shop p.a. 1,500
Insurance premium for machine p.a. 4,800
Repairs and Maintenance p.a. 10.000

Power consumption 10 units/hour

200
Rate of power for 100 units 2,300
Estimated working hour‟s p.a.
This includes setting up time of 300 hours
Supervisor‟s salary p.a. 36,000

The machine occupies 1/4 of the total area of the shop. The supervisor is expected to devote 1
his time for supervising this machine.

6. In a mining factory there are three production departments L, M and P and two sei
departments X and Y. In April 2012, the expenses were as follows:
Production Departments Service Departments
L = 6,300 X = Rs. 4,500
M = 7,400 Y = Rs. 2,000
P = 2,800
The service department expenses are allocated on a percentage basis as follows :
Department L M P X Y
Service dept X ... 40% 30% 20% — 10%
Service dept Y ... 30% 30% 20% 20% -
Find out the total overhead of production department under “Simultaneous Equation Method.

7. The Boruka Textiles showed a net profit of Rs. 40,80,000 as per financial Accounts for the
ended March 2012. The cost Accounts, however disclosed a profit of Rs. 49, 60,000 for the s
period. From the following information prepare a reconciliation statement.
Rs.
Factory overheads under-recovered 60,000
Administrative overhead over-recovered 40,000
Depreciation charged in financial Accounts 12, 00,000
Depreciation recovered in cost Accounts 13, 00,000 2,
Interest on investments not included in cost Accounts 00,000
Income tax provided 12, 00,000
Transfer fees in financial books 20.000
Stores adjustments credited in Financial Accounts 20,000 (4 x5 =20)
 K.L.E.Society’s College of Business Administration – BBA, Hubli

Section C
Answer any two of the following.
Each question carries 10 marks.
Bring out the differences between Cost Accounting and Financial Accounting.
From the following particulars, prepare a cost statement for the year ended 31-12-2011: —
1-1-2011 31-12-2011
Rs. Rs.

Stock of Finished goods 6,000 15,000

Stock of raw materials 40,000 50,000
Work-in- progress 15,000 10,000
Purchase of Raw material 4,75,000

Carriage Inwage 12,500

Wages 1,75,000
Works manager's salary 30,000
Factory rent, taxes and Insurance 7,250
Power expenses 9,500
Selling and Distribution expenses 43,000
Depreciation 40,000
Accountant‟s salary 20,000
General expenses 32,000
Income tax paid in advance 500
Payment of Sales Tax 16,000
Dividend paid 1,000
Sales for the year 8,60,000
Goodwill written off 10,000
10. The product of a manufacturing concern passes through two processes A and B and then to
finished stock. It is ascertained that in each process normally 5% of the total weight is lost and 10%
is scrap which realises Rs. 80 per tonne and Rs. 200 per tonne from process A and B respectively.
The following are the figures relating to both the processes—
Materials 1,000 tonnes 70 tonnes
Cost of Material per tonne Rs. 125 Rs. Rs. 200
Wages Rs. 28,000 Rs.10, 000
Manufacturing expenses Rs. 8,000 Rs. 5,250
Output 830 tonnes 780 tonnes
Prepare process accounts showing cost per tonne of each process. There was no stock or work-in-
progress in any process.
 K.L.E.Society’s College of Business Administration – BBA, Hubli

11. Maruti electronics is a dealer in Laptops. During the year 2010 - 2011, it supplied the
following data : —
Stock of Laptops 20 at Rs. 30,000 / Laptop
Purchased in April 2010, 60 Laptops at Rs. 32,000 per lap top
Purchased in September 2010, 100 Laptops at Rs. 31,000 per laptop
Purchased in January 2011, 20 Laptops at Rs. 32,000 Laptop.
Sold 160 Laptops at Rs. 40,000/Laptop during the year.
Find out stock value and profit made on sales under:
LIFO method
FIFO method. (2x10=20)
Section D
(Compulsory)
12. The following details relate to the manufacture of two products J and K :
Product J Product K
(Per unit) (Per unit)
Sales price ... 80 100
Raw material (Rs. 10 per kg) ... 20 40
Direct wages (Rs. 4 per hour) ... 28 20
Variable overhead (Factory) ... 3 8
Variable overhead (Administrative and selling) ... 1 2
Total fixed overheads Rs. 1, 20,000.
a) Which product is profitable in view of the following circumstances?
i) Raw material is in short supply,
ii) Labour supply is the “key factor”.
b) Which of the following product mixes is most profitable?
Product Mix Product I Product II
I 5,000units 3,000 units
II 3,800 units 4,000 units
III 5,800 units 2,500 units (1x15=15)