College : Karnataka State Open University
Degree : M.Com
Year : I
Subject : MCO14 Accounting Theory & Practice
Document type : Model Question Paper
Website : ksoukarnataka.com
Download Model/ Sample Question Papers: https://www.pdfquestion.in/uploads/ksoukarnataka.com/6522-MCO14%20-%20ACCOUNTING%20THEORY%20AND%20PRACTICE.docx
KSOU Accounting Theory & Practice Model Question Paper
(1ST YEAR) (COMMERCE)
MCO14
TIME: 03 HOURS
MAX.MARKS: 90
Related / Similar Question Paper :
KSOU M.A Money Banking & Financial Markets Question Paper
GROUP A
Answer any three questions.
Q.1 Critically examine the factors that facilitate Accounting Process.
Q.2 What is Responsibility Accounting? Discuss the merits and demerits of using profit centre and cost centre as ways of measuring managerial performance.
Q.3 Write an explanatory note on Comptroller and Auditor General of India.
Q.4 Following information are available for Better Co., along with various ratios which it belongs. Find out the relevant ratios relating to Better Co., and give your comments on strengths and weakness of Better Co., by comparing its ratios with that of industry norms.
Better Co., Balance Sheet as on 31st March, 2012
Liabilities Amount Assets Amount Rs Rs
Equity Share Capital 24,00,000 Net fixed assets 12,10,000
10% Debentures 4,60,000 Cash 4,40,000
Sundry Creditors 3,30,000 Sundry Debtors 5,50,000
Bills Payable 4,40,000 Stocks 16,50,000
Other Current Liabilities 2,20,000
38,50,000 38,50,000
Q.5 From the following financial statements prepared under traditional accounting system and other additional information provided, prepare the financial statements under Current Cost Accounting.
Particulars Amount Rs Particulars Amount Rs
Balance Sheet of MNP Company as on 31st March, 2011
Share capital 20,00,000 20,00,000 Fixed assets 20,00,000 20,00,000
Reserves 6,00,000 16,60,000 Less: Depreciation 5,00,000 7,50,000
Long-term loans 10,00,000 9,00,000 15,00,000 12,50,000
Trade creditors 6,00,000 7,00,000 Trade debtors 8,00,000 14,60,000
The following additional details are also provided.
a)The relevant price indices are,
b) Value of fixed assets to the company:
Statement of Profitability for the year ending 31st March,2012
Particulars Amount Amount Rs Rs Sales
Less: Cost of Goods Sold
Material 20,90,000
Wages 13,20,000
Factory Overhead 6,49,000 40,59,000
Gross Profit 14,41,000
Less: Selling & Distribution Cost 5,50,000
Administrative cost 6,14,000 11,64,000
Earnings before interest & taxes 2,77,000
Less: Interest Charges 46,000
Earnings before tax 2,31,000
Less: Taxes 1,15,500
Net Profit
Industry Norm Ratios considered Norm
a) Current Assets/Current Liabilities 2.5
b) Sales/debtors 8.0
c) Sales/Stock 9.0
d) Sales Total Assets 2.0
e) Net Profit/Sales 3.5%
f) Net Profit/ Net Worth 10.5%
g) Total Debt/ Total Assets 60.0%
h) Net Profit/ Total Assets 7.0% (15)
| Liabilities | Amount Rs | Assets | Amount Rs | ||
| 31-3-11 | 31-3-12 | 31-3-11 | 31-3-12 | ||
| Share capital | 20,00,000 | 20,00,000 | Fixed assets | 20,00,000 | 20,00,000 |
| Reserves | 6,00,000 | 16,60,000 | Less: Depreciation | 5,00,000 | 7,50,000 |
| Long-term loans | 10,00,000 | 9,00,000 | 15,00,000 | 12,50,000 | |
| Trade creditors | 6,00,000 | 7,00,000 | Trade debtors | 8,00,000 | 14,60,000 |
| Stock | 10,00,000 | 8,00,000 | |||
| Cash | 9,00,000 | 17,50,000 | |||
| 42,00,000 | 52,60,000 | 42,00,000 | 52,62,000 |
The relevant price indices are,
| Stocks | Debtors and Creditors | |
| Opening | 250 | 250 |
| Closing | 260 | 265 |
| Average for 2011 | 255 | 258 |
b) Value of fixed assets to the company: Opening Rs. 28,00,000 and closing Rs. 32,00,000. The estimated life of the fixed assets is 8 years.
GROUP B
Answer any three questions. Each question carries 10 marks:
Q.6 Discuss the structure of GAAs. (10)
Q.7 Write an analytical note on International Accounting Standers. (10)
Q.8Explain the procedure of determining the cash from operation. (10)
Q.9 Aftech Ltd. Is firm that specializes in offering technical consulting services.
a)Fixed Assets costing Rs. 1,200 were purchased for cash.
b)Fixed Assets cost Rs. 400, accumulated depreciation Rs. 150, was sold for Rs. 200.
c)Depreciation for the year 2011 was Rs. 550.
d)Dividend paid during 2011 was Rs. 300.
e)Reported profit for 2011 was Rs. 1,200.
| Year | Current | 1 | 2 | 3 | 4 |
| Recruitment & training expenses(Rs lakh) | 14 | 12 | 10.4 | 9.1 | 8.3 |
Assuming a linear amortization schedule (over 4 years), you are required to estimate the value of human capital asset.
| 2010 | 2011 | |
| Rs | Rs | |
| Cash | 2,000 | 2,500 |
| Bills Receivable | 2,400 | 2,700 |
| Stock | 3,100 | 3,200 |
| Other Current Assets | 800 | 700 |
| Fixed Assets | 5,000 | 5,800 |
| Accumulated Depreciation | 2,100 | 2,500 |
| Bills Payable | 1,400 | 1,300 |
| Equity Capital | 5,000 | 5,300 |
| Retained Profits | 2,800 | 3,700 |
Other Information:
a) Fixed Assets costing Rs. 1,200 were purchased for cash.
b) Fixed Assets cost Rs. 400, accumulated depreciation Rs. 150, was sold for Rs. 200.
c) Depreciation for the year 2011 was Rs. 550.
d) Dividend paid during 2011 was Rs. 300.
e) Reported profit for 2011 was Rs. 1,200.
GROUP C
Answer any three questions. Each sub-question carries 5 marks:
Q.11 Differentiate between fund flow and cash flow statements.
Q.12 What are the objectives of Government systems of accounting?
Q.13 Outline the Accounting Cycle.
Q.14 List the Advantages of Ratio Analysis.
Q.15 Need for Government System of Accounting.