Personal Pe r s on a l > 1 · 4. What are the rights and duties of a paying banker and state the circumstances under which paying banker can refuse payment of cheques? SECTION ²

Personal P e r s o n a l ｸ1

SANDY S A N D Y ��

S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :


S A N D Y ,

b � B � � . � � � :

COM 102 Reg. No. ……………………………

CREDIT BASED FIRST SEMESTER B.Com.DEGREE EXAMINATION OCTOBER 2012

PRINCIPLES AND PRACTICE OF BANKING

Time: 3 Hrs Max. Marks: 80

SECTION – A Answer any THREE questions: 3X20=60

1. Explain the functions of Commercial Bank.

2. What is meant by endorsement of a negotiable instrument? Explain the different types of endorsement with examples.

3. Give a brief account of General relationship between banker and customer.

4. What are the rights and duties of a paying banker and state the circumstances under which paying banker can refuse payment of cheques?

SECTION – B

Answer any THREE questions: 3X5=15

5. Explain briefly the functions of NABARD.

6. Explain the rights and duties of a collecting banker as holder for value.

7. Pass the journal entries to rectify the following errors:

8. Mention the recommendations of Narasimham Committee.

SECTION – C Answer all the following: 5X1=5 9. What is a negotiable instrument?

10. What is meant by credit risk?

11. What is Internet Banking?

12. What is meant by non-performing asset of a Bank?

13. What is RTGS?

*************

COM 103 Reg. No. ……………………………


MANAGEMENT PERSPECTIVES



1. Describe Henry Fayol’s Principles of Management.

2. What is Planning? Explain different types of Plans.

3. Explain what is Line & Staff organization? What are the causes for Line &

Staff conflict? How to overcome these conflicts?

4. What is staffing? Explain the selection procedure followed in an organization.

SECTION – B


5. What are the functions of Top Level Management?

6. Mention the different steps involved in decision making process.

7. Explain Maslow’s Hierarchy of needs theory.

8. What is span of Management? Explain any four factors influencing span of management.

SECTION – C

Answer all the following: 5X1=5 9. Define the term “Management”.

10. What is Laissez fair Leadership?

11. What is MBO?

12. What is ‘Decentralisation of Authority’?

13. Mention any four financial and non-financial invest to motivate employees

of an organization.

*************

COM 104.1 Reg. No. ……………………………

CREDIT BASED FIRST SEMESTER B.Com. DEGREE EXAMINATION OCTOBER 2012

COMMERCE

BUSINESS ECONOMICS


SECTION – A

Answer any THREE of the following: 3X20=60 1. Explain the law of Demand. What are its exceptions?

2. Define price elasticity of Demand. Explain the different types of price elasticity of demand.

3. Explain the law of variable proportions.

4. What is Monopoly? Explain price-output determination under monopoly in the short run and the long run.

SECTION – B

Answer any THREE of the following: 3X5=15

5. Explain briefly the subject matter of Business Economics.

6. Explain the concept of ‘consumers surplus’.

7. Explain the survey methods of demand forecasting.

8. Explain the factors involved in pricing policies.

SECTION – C

Answer all the questions: 5X1=5

9. What is supply?

10. Distinguish between fixed and variable cost.

11. What is price discrimination?

12. What is oligopoly market?

13. What do you mean by penetration pricing?

*************

COM 105.1 Reg. No. ……………………………


CORPORATE COMMUNICATION



1. Define Corporate Communication. What are its objectives?

2. Explain the various types of communication.

3. Draft a letter to M/S Manasi & Co., Bangalore enquiring about the availability of certain varieties of Steel Furniture for all purposes and their terms of sale. Also write a reply to the enquiry furnishing all the details about the steel furnitures.

4. Draft a report of a committee appointed to investigate the possibility of opening a branch of a co-operative bank in Mangalore.

SECTION – B


5.

6. Explain briefly verbal communication with suitable examples between formal and informal indicate the differences communication.

7. Place an order for a large quantity of sweets for your retail shop for forthcoming Deepavali Festival. Ask for a discount and specify the packing and mode of transport.

8. Write a letter on behalf of Ocean Paints Ltd., Mangalore asking a candidate to appear for an interview for the post of accountants assistant.

SECTION – C

Answer all the questions: 5X1=5 9. What are paralanguage?

10. Expand the term FOR and CWO.

11. What is ‘Concreteness’ in Communicating?

12. What is meant solicited enquiry?

13. What is meant by multimedia?

*************

- 1 -

COM 301 Reg. No. ……………………………

CREDIT BASED THIRD SEMESTER B.Com.DEGREE EXAMINATION OCTOBER 2012

FINANCIAL ACCOUNTING - III



1. The balance sheet of X and Y who were sharing profits in the ratio of 5:3

respectively as on 31st March 2011 was as follows:

Liabilities ` Assets `

X’s capital Y’s capital Profit and Loss Trade creditors

2,55,000 1,95,000

56,000 27,400

Goodwill Land and Building Plant and Machinery Furniture Stock Debtors Cash at bank

80,000 1,90,000

85,000 54,740 72,630 30,000 21,030

5,33,400 5,33,400

On the above date, 2 was admitted on the following terms:-

a) 2 would get 1/5 share in the profit. b) 2 would pay `1,20,000 as capital

c Machinery would be depreciated by 10% and buildings would be appreciated by 30%. A provision for bad debts at 5% on debtors would be created. An unrecorded liability amounting to `3,000 for repairs

would be recorded in the books of accounts. d) Immediately after 2’s admission, Goodwill Account would be written off.

Thereafter the capital accounts of the old partners would be adjusted through the necessary current accounts in such a manner that the capital accounts of all the partners would be in their profit sharing

ratio. Prepare Revaluation Account, Capital Accounts and the Balance Sheet of

the new firm.

2. A, B, and C are in partnership sharing profits and losses in the ratio of 3:2:1. The balance sheet of the firm as on 31.12.2011 was as follows:


Capital accounts: A 40,000 B 34,000 C 26,000 General Reserve Bank Loan Sundry Creditors

1,00,000 20,000 40000 30,000

Sundry Fixed Assets Stock Debtors Joint Life Policy Bank

80,000 50,000 30,000 20,000 10,000

1,90,000 1,90,000

- 2 -

On 1st April 2012, A wants to retire B and C agreed to continue at 2:1. Joint Life Policy was taken on 1.4.1998 for `1,00,000 and its surrender value as on 31.3.2012 was `25,000. For the purpose of A’s retirement, goodwill of the firm was raised at `1,00,000. B and C did not want to

show goodwill account after A’s retirement. Sundry fixed assets were revalued at `1,10,000. But B and C decided to show all the assets in the

Balance Sheet at their original values.

Prepare Memorandum Revaluation Account, Goodwill Account, Partners Capital Accounts and Balance Sheet of B and C after A’s retirement.

3. A, B, and C are partners in a business showing profit and losses in the

ratio of 2:2:1 respectively. Their balance sheet as on 31st December 2011 was as follows:


Creditors Capital accounts: A 30,000 B 50,000 C 20,000

50,000

1,00,000

Cash at bank Bills receivable Debtors Stock Furniture Buildings

10,000 15,000 40,000 30,000 15,000 40,000

1,50,000 1,50,000

C died on 30th April 2012 and the partnership deed provided the following:

a) The deceased partner will be entitled to his share of profits up to the date of death, calculated on the previous year’s profits.

b) He will be entitled to his share of the goodwill of the firm, calculated on the basis of 3 years purchase of average profits of the last 4 years.

The profits for the past four years are given below.

2008 `80,000 2017 `40,000

2009 `50,000 2018 `30,000

The drawings of the deceased partner up to the date of his death amounted to `2,000. Interest on capital was to be allowed at 6% per

annum.

The executors of the deceased partner and the surviving partners agreed that 5,400 should be paid to the executors immediately and the balance in 3 years instalments with interest at 6% on the outstanding balance.

Show the Capital Account and Executors Account of the deceased partner until it is paid off.

4. The following is the balance sheet of the firm A and B as on 31st December 2011.


Sundry creditors Bills payable Mrs. A loan Mrs. B loan General Reserve Investment fluctuation fund

30,000 8,000 5,000

10,000 10,000 1,000

Cash in hand Cash at bank Stock Investments Debtors 20,000 Less: RBD 2,000

500 8,000 5,000

10,000

18,000

- 3 -

A’s Capital A/c B’s Capital A/c

10,000 10,000

Plant and Machinery Buildings Goodwill Profit and Loss A/c

20,000 15,000 4,000 3,500

84,000 84,000

The firm was dissolved on 31st December.

a) A promised to pay off Mrs. A’s Loan and took away stock at `40,000

b) B took away the investments at 10% discount. c) Debtors realized `19,000

d) Creditors were paid immediately on 31st December at 6% discount. e) Plant realized `25,000, building 40,000, goodwill `6,300.

f) There was an old typewriter in the firm which has been written off completely from the books. It is now estimated to realize `300. It was

taken away by B at this estimated price. g) Realisation expenses were `1,000

Show the realization accounts, cash account and the accounts of the partners.

SECTION – B Answer any THREE questions: 3X5=15

5. A and B are equal partners in a firm sharing profits and losses in the ratio of 3:2. C joins the firm for a ¼ share in the future profits. Ascertain the future profits sharing ratio of the partners in each of the following cases.

a) If ‘C’ acquires his share of profits from the original partners in their original profit sharing ratio.

b) If ‘C’ acquires his share of profits from the original partners in equal proportions

6. Pradeep and Prakash are partners sharing profits and losses in the ratio of 3:2. They took out A joint life policy for 1st January 2005 for `50,000 for 20 years. Annual premium is `2,000.

The surrender value of the policy were 2005 – Nil, 2006 – `500, 2007 – `1,500 and 2008 – `2,700 and 2009 – `4,000.

Pradeep died on 8th March 2009 and the claim due was received on 30th April 2009.

Show the joint life policy account and joint life policy reserve account.

7. Preetam and Deepam are partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31st March 2008 was as follows:


Sundry creditors Bills payable Capital Accounts Preetham 30,000 Deepam 20,000

6,000 2,000

50,000

Cash in hand Bills receivable Sundry Debtors Stock Furniture Machinery Building

2,000 3,000 8,000

20,000 4,000 6,000

15,000

58,000 58,000

- 4 -

They agree to take Sanam into partnership giving him ¼ share. The following adjustments are to be made before Sanam’s admission:

a) A reserve of 5% on debtors to be created for doubtful debts. b) Stock to be valued at `18,000

c) Furniture is to be depreciated by 5%. d) Machinery is to be reduced by 10% e) Buildings are to be appreciated by 20% f) Investments worth `2,000 not mentioned in the balance sheet are to be

taken into account. g) A reserve of 3% is to be created on sundry creditors as discount. h) A reserve of `800 is to be made for outstanding legal charges.

Prepare the revaluation account.

8. On January 1st 2008, A, B and C entered into partnership contributing `1,50,000, `1,00,000 and `50,000 respectively and sharing profits in the ratio of 3:2:1. A and B are entitled to a salary of `12,000 and `6,000 per

annum respectively. 5% interest on capital is to be allowed. Interest on drawings is also to be charged at 5%. A drew `3,000, B `5,000 and C `2,000, interest on drawings being A `75, B `125 and C `50 profit for the year 2008 before the above adjustments was `62,750. Show Profit and

Loss Appropriate A/c and also prepare the Capital Accounts if they are fluctuating.

SECTION – C Answer all the questions: 5X1=5 9. B and C are in partnership sharing profits and losses as 3:1. They admit

D in to the firm. D bring in goodwill of `15,000 in cash for 1/3 share of

the profits. As between themselves B and C agree to share future profits and losses equally. Pass journal entries showing the treatment of goodwill.

10. A, B, and C are partners sharing profits and losses in the ratio of 6/14, 5/14 and 3/14 respectively. They admit D into partnership and give him 1/8 share in the profits.

Calculate the new profit sharing ratio.

11. What do you mean by dissolution of a partnership firm?

12. Differentiate between sacrifice ratio and new profit sharing ratio.

13. State the rules in garner Vs Murray case.

*************

- 1 -

COM 301 Reg. No. ……………………………


FINANCIAL ACCOUNTING - III



1. The balance sheet of X and Y who were sharing profits in the ratio of 5:3

respectively as on 31st March 2011 was as follows:


X’s capital Y’s capital Profit and Loss Trade creditors

2,55,000 1,95,000

56,000 27,400

Goodwill Land and Building Plant and Machinery Furniture Stock Debtors Cash at bank

80,000 1,90,000

85,000 54,740 72,630 30,000 21,030

5,33,400 5,33,400

On the above date, 2 was admitted on the following terms:-

a) 2 would get 1/5 share in the profit. b) 2 would pay `1,20,000 as capital

c Machinery would be depreciated by 10% and buildings would be appreciated by 30%. A provision for bad debts at 5% on debtors would be created. An unrecorded liability amounting to `3,000 for repairs

would be recorded in the books of accounts. d) Immediately after 2’s admission, Goodwill Account would be written off.

Thereafter the capital accounts of the old partners would be adjusted through the necessary current accounts in such a manner that the capital accounts of all the partners would be in their profit sharing

ratio. Prepare Revaluation Account, Capital Accounts and the Balance Sheet of

the new firm.

2. A, B, and C are in partnership sharing profits and losses in the ratio of 3:2:1. The balance sheet of the firm as on 31.12.2011 was as follows:


Capital accounts: A 40,000 B 34,000 C 26,000 General Reserve Bank Loan Sundry Creditors

1,00,000 20,000 40000 30,000

Sundry Fixed Assets Stock Debtors Joint Life Policy Bank

80,000 50,000 30,000 20,000 10,000

1,90,000 1,90,000

- 2 -

On 1st April 2012, A wants to retire B and C agreed to continue at 2:1. Joint Life Policy was taken on 1.4.1998 for `1,00,000 and its surrender value as on 31.3.2012 was `25,000. For the purpose of A’s retirement, goodwill of the firm was raised at `1,00,000. B and C did not want to

show goodwill account after A’s retirement. Sundry fixed assets were revalued at `1,10,000. But B and C decided to show all the assets in the

Balance Sheet at their original values.

Prepare Memorandum Revaluation Account, Goodwill Account, Partners Capital Accounts and Balance Sheet of B and C after A’s retirement.

3. A, B, and C are partners in a business showing profit and losses in the

ratio of 2:2:1 respectively. Their balance sheet as on 31st December 2011 was as follows:


Creditors Capital accounts: A 30,000 B 50,000 C 20,000

50,000

1,00,000

Cash at bank Bills receivable Debtors Stock Furniture Buildings

10,000 15,000 40,000 30,000 15,000 40,000

1,50,000 1,50,000

C died on 30th April 2012 and the partnership deed provided the following:

a) The deceased partner will be entitled to his share of profits up to the date of death, calculated on the previous year’s profits.

b) He will be entitled to his share of the goodwill of the firm, calculated on the basis of 3 years purchase of average profits of the last 4 years.

The profits for the past four years are given below.

2008 `80,000 2017 `40,000

2009 `50,000 2018 `30,000

The drawings of the deceased partner up to the date of his death amounted to `2,000. Interest on capital was to be allowed at 6% per

annum.

The executors of the deceased partner and the surviving partners agreed that 5,400 should be paid to the executors immediately and the balance in 3 years instalments with interest at 6% on the outstanding balance.

Show the Capital Account and Executors Account of the deceased partner until it is paid off.

4. The following is the balance sheet of the firm A and B as on 31st December 2011.


Sundry creditors Bills payable Mrs. A loan Mrs. B loan General Reserve Investment fluctuation fund

30,000 8,000 5,000

10,000 10,000 1,000

Cash in hand Cash at bank Stock Investments Debtors 20,000 Less: RBD 2,000

500 8,000 5,000

10,000

18,000

- 3 -

A’s Capital A/c B’s Capital A/c

10,000 10,000

Plant and Machinery Buildings Goodwill Profit and Loss A/c

20,000 15,000 4,000 3,500

84,000 84,000

The firm was dissolved on 31st December.

a) A promised to pay off Mrs. A’s Loan and took away stock at `40,000

b) B took away the investments at 10% discount. c) Debtors realized `19,000

d) Creditors were paid immediately on 31st December at 6% discount. e) Plant realized `25,000, building 40,000, goodwill `6,300.

f) There was an old typewriter in the firm which has been written off completely from the books. It is now estimated to realize `300. It was

taken away by B at this estimated price. g) Realisation expenses were `1,000

Show the realization accounts, cash account and the accounts of the partners.


5. A and B are equal partners in a firm sharing profits and losses in the ratio of 3:2. C joins the firm for a ¼ share in the future profits. Ascertain the future profits sharing ratio of the partners in each of the following cases.

a) If ‘C’ acquires his share of profits from the original partners in their original profit sharing ratio.

b) If ‘C’ acquires his share of profits from the original partners in equal proportions

6. Pradeep and Prakash are partners sharing profits and losses in the ratio of 3:2. They took out A joint life policy for 1st January 2005 for `50,000 for 20 years. Annual premium is `2,000.

The surrender value of the policy were 2005 – Nil, 2006 – `500, 2007 – `1,500 and 2008 – `2,700 and 2009 – `4,000.

Pradeep died on 8th March 2009 and the claim due was received on 30th April 2009.

Show the joint life policy account and joint life policy reserve account.

7. Preetam and Deepam are partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31st March 2008 was as follows:


Sundry creditors Bills payable Capital Accounts Preetham 30,000 Deepam 20,000

6,000 2,000

50,000

Cash in hand Bills receivable Sundry Debtors Stock Furniture Machinery Building

2,000 3,000 8,000

20,000 4,000 6,000

15,000

58,000 58,000

- 4 -

They agree to take Sanam into partnership giving him ¼ share. The following adjustments are to be made before Sanam’s admission:

a) A reserve of 5% on debtors to be created for doubtful debts. b) Stock to be valued at `18,000

c) Furniture is to be depreciated by 5%. d) Machinery is to be reduced by 10% e) Buildings are to be appreciated by 20% f) Investments worth `2,000 not mentioned in the balance sheet are to be

taken into account. g) A reserve of 3% is to be created on sundry creditors as discount. h) A reserve of `800 is to be made for outstanding legal charges.

Prepare the revaluation account.

8. On January 1st 2008, A, B and C entered into partnership contributing `1,50,000, `1,00,000 and `50,000 respectively and sharing profits in the ratio of 3:2:1. A and B are entitled to a salary of `12,000 and `6,000 per

annum respectively. 5% interest on capital is to be allowed. Interest on drawings is also to be charged at 5%. A drew `3,000, B `5,000 and C `2,000, interest on drawings being A `75, B `125 and C `50 profit for the year 2008 before the above adjustments was `62,750. Show Profit and

Loss Appropriate A/c and also prepare the Capital Accounts if they are fluctuating.

SECTION – C Answer all the questions: 5X1=5 9. B and C are in partnership sharing profits and losses as 3:1. They admit

D in to the firm. D bring in goodwill of `15,000 in cash for 1/3 share of

the profits. As between themselves B and C agree to share future profits and losses equally. Pass journal entries showing the treatment of goodwill.

10. A, B, and C are partners sharing profits and losses in the ratio of 6/14, 5/14 and 3/14 respectively. They admit D into partnership and give him 1/8 share in the profits.

Calculate the new profit sharing ratio.

11. What do you mean by dissolution of a partnership firm?

12. Differentiate between sacrifice ratio and new profit sharing ratio.

13. State the rules in garner Vs Murray case.

*************

- 1 -

COM 302.1 Reg. No. ……………………………


COST ACCOUNTING - I



1. Following are the particulars for the production of 2000 sewing machines for the year 2010: `

Cost of materials 1,60,000 Wages 2,40,000 Manufacturing expenses 1,00,000 Salaries (office) 1,20,000 Rent, Rates and insurance 20,000 Selling expenses 60,000 General expenses 40,000 Sales 8,00,000 The company plans to manufacture 5000 Sewing machines during 2011.

You are required to submit a statement showing the price at which machines would be sold so as to earn a profit of 10% on selling price. The following additional information is supplied.

a) Price of materials is expected to rise by 20% b) Wage rates are expected to show an increase of 5%

c Manufacturing expenses will rise in proportion to the combined cost of materials and wages.

d) Selling expenses per unit will remain the same. e) Other expenses will remain unaffected by the rise in output.

2. Following receipts and issues of material ‘M’ were made during the month of March 2010.

Stock of ‘M’ material on 1.3.2010 was 400 units at `50 per unit March 2 Purchased 100 units at `55 each

March 6 Issued 400 units March 10 Received 600 units at `60 each

March 13 Issued 500 units March 15 Received 500 units at `65 each

March 18 Issued 600 units March 21 Purchase 800 units at `70 each

March 22 Returned to Vendors 50 units March 24 Issued 500 units March 26 Issued 200 units March 27 Transferred 50 units from production dept X to production dept y March 28 Received 500 units at `75 each

March 29 Returned to stores 50 units March 30 Issued 400 units March 31 Purchased 300 units at `80 each

- 2 -

Stock verification note reveals a shortage of 20 units on 16th March and excess of 10 units on 25th March 2010.

Prepare a Stores Ledger Card calculating the issue price under LIFO method.

3. A company has three Production departments P1, P2 and P3 and two service departments S1 and S2. The following data are extracted from the records of the company for a particular given period:

` A) (i) Rent and rates 25,000 (ii) General lighting 3,000

(iii)Indirect wages 7,500 (iv) Power 7,500 (v) Depreciation on Machinery 50,000 vi) Sandrine 50,000

B) Additional data:

Departments Total P1 P2 P3 S1 S2 Direct wages (`) HP of Machine Cost of machine Hours worked Floor space (Sq.Mtr) Light points (Ns.)

50000 150

1250000 ----

10000 60

15000 60

300000 6226 2000 10

10000 30

400000 4028 2500 15

15000 50

500000 4066 3000 20

7500 10

25000 ----

2000 10

2500 ----

25000 ---- 500 5

C) Service Department expenses are allocated as follows:

P1 P2 P3 S1 S2 S1 S2

20% 40%

30% 20%

40% 30%

---- 10%

10% ----

Compute the overhead rate of production departments using the repeated distribution method.

4. What is Cost Accounting? How is it different from financial accounting?

SECTION – B

Answer any THREE questions: 3X5=15 5. The following are the particulars given to you:

Standard time: 10 hours

Time rate : 3.00 per hour

Calculate the remuneration under Halsey Plan if time taken is 9 hours, 8 hours, 6 hours, 4 hours and 3 hours.

6. From the following particulars prepare a material cost statement giving the cost per unit of output and the quantity of wastage.

Input 2,000 lbs at `4.50 per lb. Off cuts and trimmings amounts to 500 lbs and were sold for `800. Some units were spoiled, of which 75 lbs were disposed off for `100 and the remaining were rectified at an additional expenditure of `300. 7,000 units were produced each weighing 0.20lb.

- 3 -

7. Calculate the Minimum Stock Level, Maximum Stock Level, Re-ordering Level.

Danger Level and Average Stock Level from the following:

Normal consumption 100 units per day Maximum consumption 140 units per day Minimum consumption 80 units per day Reorder quantity 1200 units Maximum re-order period 15 days Minimum re-order period 10 days Normal re-orders period 12 days

Emergency delivery time 4 days

8. What is meant by time-keeping? Briefly explain the different methods of time-keeping.

SECTION – C Answer all the questions: 5X1=5 9. How do you classify the cost by behaviour?

10. Define cost units. What are its types.

11. What is Labour Turn Over? Write any two measures to reduce Labour Turn Over.

12. Find out the EOQ from the following information:-

Annual consumption: 3000 units

Cost of placing and receiving one order: `30

Price per units `5

Storage and carrying cost: 1% of inventory value

13. State two difference between a Bin card and a store ledger.

*************

COM 303.3 Reg. No. ……………………………

CREDIT BASED THIRD SEMESTER B.Com. DEGREE EXAMINATION OCTOBER 2012

COMMERCE

MONETARY ECONOMICS


SECTION – A

Answer any THREE of the following: 3X20=60 1. Define money. Explain the different functions of money.

2. Explain the steps involved in the construction of index numbers. What are the difficulties involved in its construction?

3. What is inflation? Examine the causes and effects of inflation.

4. Describe the various phases of Business Cycle. Explain the methods to control it.

SECTION – B

Answer any THREE of the following: 3X5=15

5. Write a note on different methods of note issue.

6. Briefly explain the Fisher’s equation of exchange.

7. Explain the various concepts of National Income.

8. Give an account of the basic features of Indian money market.

SECTION – C


9. Differentiate between money and near money.

10. What is value of money?

11. Give any two remedies for income inequalities.

12. Define deflation.

13. What is meant by capital market?

*************

- 1 -

COM 304.1 Reg. No. ……………………………


FINANCIAL MANAGEMENT - I


SECTION – A Answer any THREE of the following: 3X20=60 1. A company plans to manufacture and sell 400 units of a domestic

appliance per month at a price `600 each. The ratio of costs to selling

price are as follows: % of selling price Row materials 40% Direct labour 15% Direct Expenses 5% Fixed overheads are estimated at `4,32,000p.a. The following norms are maintained for inventory management Raw materials : 4 weeks Work in progress : 2 weeks Finished goods : 4 weeks Credit by suppliers : 4 weeks Credit to debtors : 8 weeks Lag in payment of wages : 1.5 weeks Cash at bank expected to be `25,000

You may assume that production is carried on evenly throughout the year (52 weeks) and wages and overheads accrue evenly throughout the year. 20% of the sales are on cash basis. Compute the net working capital requirements of the firm for the year, after providing a safety margin of 10%.

2. The sales forecast for January to May 2012 and actual sales for November and December, 2011 for Plysales Co. are given as under: Prepare Cash Budget from January to May 2012.

Month Sales (`) Actual: November 2011 80,000 December 2011 70,000 Forecast: January 2012 80,000 February 1,00,000 March 80,000 April 1,00,000 May 90,000 20% of sales is in cash and rest is on credit payment of which is realized

in the third month. Other expenses are as follows:

Months Materials Wages Overheads

January February March April May

32,400 28,000 30,200 28,600 29,400

7,600 7,600 8,000 8,400 9,000

3,800 4,200 4,600 4,800 5,000

- 2 -

Time lag in payment for materials 2 months, wages 1/5 month, overheads ½ month.

Cash balance on 1st January 2012 is expected to be `8,000

A machinery will be installed in January 2012 at a cost of `1,00,000. The monthly instalment of `5,000 is payable from

March onwards.

Dividend at 10% on preference share capital of `3,00,000 will be

paid on 1st May 2012

Advance for sale of vehicle `20,000 receivable in May 2012

Income tax (advance) to be paid in May 2012, `5,000

3. “Optimum level of inventory is that which minimizes the total cost”- in this context explain the objectives and techniques of inventory management.

4. Vainavi Industries Ltd., has an ordinary share capital of `10,00,000 (share of `100 each) and `10,00,000 of 10% debentures of `1000 each, 15%. Preference share capital of `10,00,000

The following particulars are provided selling price per unit `16

Variable cost per unit `8

Fixed expenses `2,00,000

Income tax 35%

You are required to calculate leverages and EPS for the sale of 1,00,000 units. Also calculate for a) 20% increase in sales

b) 25% increase in variable cost

SECTION – B Answer any THREE of the following: 3X5=15 5. A firm is contemplating an increase in the credit from 40 to 50 days. The

average collection period which is at present 50 days is expected to increase to 6 days. It is also likely that the bad debt expenses will increase from the current level of 1% to 3% of sales. Total credit sales are expected to increase from the level of 30,000 units to 34,500 units. The present average cost per unit is `8, the variable cost and sales per unit is `6 and `10 per unit respectively. Assume the firm expects a rate of 20%.

Should the firm extend the credit period?

6. From the following information supplied to you, ascertain the price of the shares under Walter’s and Gordon’s Model:

Earnings of the firm : `3,00,000

Dividends paid : `2,25,000

No. of shares outstanding : 20,000 shares of `100 each

Capitalisation rate : 12%

Internal rate of return : 18%

- 3 -

7. Alpha Industries Ltd., gives the following details from which you are required to calculate the leverages and the EPS.

Financial details:

Equity shares of `10 each `5,00,000 15% Debentures of 100 each `10,00,000 12% preference share capital `5,00,000 Operational details `15 Sale price per unit `8 Variable cost per unit `2,00,000 Fixed Cost 35% Tax rate Assume the output to be 1 lakh units

8. Explain the operating cycle with help of the diagram.

SECTION – C

Answer all the questions: 5X1=5 9. What is meant by financial break even point?

10. Write the meaning of speculative motive for holding cash.

11. Write any two characteristics of marketable securities.

12. If a business firm has an annual demand of 6,400 units and EOQ is 800 units, what is the number of orders p.a.?

13. What is meant by combined leverage?

*************

COM 305.3 Reg. No. ……………………………


AUDITING


SECTION – A Answer any THREE questions: 3X20=60 1. Define Auditing. Explain the objectives of Auditing.

2. What is internal check? Suggest a suitable system of internal check for the control of cash sales.

3. How do the auditor verify the following:

a) Freehold property b) Plant and Machinery c) Creditors

d) Loans and advances

4. Explain the civil and criminal liabilities of an Auditor.

SECTION – B

Answer any THREE questions: 3X5=15 5. What is an audit programme? What are its advantages?

6. Explain the differences between auditing and investigation.

7. What are the main points to be kept in mind while examining vouchers?

8. How are auditors of a company appointed under different circumstances?

SECTION – C

Answer all the questions: 5X1=5 9. What are audit working papers?

10. What is meant by internal audit?

11. What is meant by Investigation?

12. What is audit report?

13. State any two problems of computerized auditing?

*************

- 1 -

COM 501 Reg. No. ……………………………

CREDIT BASED FIFTH SEMESTER B.Com.DEGREE EXAMINATION OCTOBER 2012

FINANCIAL ACCOUNTING - V



1. The following is the Trial Balance of Roshan Ltd., as on 31-3-2011.

Debit ` Credit `

Share Capital Calls in arrears Stock on 1-4-10 Purchases & Sales Salaries Investment Reserve Plant Debtors & Creditors Goods sent on consignment Cash Provision for taxation Dividend on investments Income Tax paid Profit and Loss A/c on 1-4-2010 Other expenses

---- 500

2,720 29,120 4,100 9,000

---- 8,000

14,200 1,720

26,720 ---- ----

2,100 ----

1,820

30,000 ---- ----

36,310 ---- ----

10,000 ----

7,020 ---- ----

10,000 620 ----

6,050 ----

1,00,000 1,00,000

Adjustments: a) Stock on 31-3-2011 is `10,000

b) R.B.D. is to be credited at 10% c) Proposed dividend will be at 10% d) Depreciate plant at 10%p.a. e) Transfer `5,000 to reserve

f) All the goods sent on consignment have been sold for `2,000. Consigners expenses are `115 and his commission `35.

g) Provision for taxation required for 2011-12 is `7,000. The tax liability of the previous year is estimated to be `8,000.

Prepare the Final Accounts of Roshan Ltd., in the vertical form.

2. On 1st January, 2005 A Ltd., issued `2,000, 6% debentures of `100 each

repayable at the end of four years at a premium of 5%. It was decided to institute a sinking fund for the purpose, the investments being expected to realize 4% net. Sinking Fund tables show that 0.235490 annually amounts to `1 at 4% in four years. Investments were made in multiples of `10 only. On 31st December, 2008 the balance at bank was `59,000

(before receiving interest on investment) and the investments realized `1,56,800. The debentures were paid off.

Prepare necessary ledger accounts.

- 2 -

3. The assets and liabilities of Bright Ltd., as on 1st 2010 was as follows:


Authorised capital 80,000 equity shares of `10 each

2,000 9% preference shares of `100 each

Issued and paid up capital 40,000 equity shares of `10 each `750p.a. shares paid up 2,000 9% preference shares of `100 each

fully paid up Unsecured loan Trade creditors Bank overdraft

8,00,000

2,00,000

3,00,000

2,00,000

80,000 48,000 16,800

Goodwill Land and Building Plant and Machinery Investments Stock Debtors Cash in hand Profit and Loss A/c

20,000 1,60,000 1,20,000

24,000 54,000

1,18,000 6,000

1,42,800

6,44,800 6,44,800

Note:

a) Dividends on preference shares are in arrears for 2 years. b) No provision has been made for sales tax liability of `9,600 Following scheme of reconstruction has been prepared and sanctioned. i) Uncalled Capital is to be called up in full and equity shares are to be

reduced to `5 per share. ii) Shares tax liability of `9,000 is to be paid immediately. iii) Land and Buildings are to be shown in the balance sheet at full market

value of `2,20,000 and goodwill is to be written off.

iv) Trade creditors have consented to forego 25% of their liability on a condition that 25% of the net liability is to be paid immediately and the balance is to be paid within one year.

v) Investments are to be taken over by bank is full settlement of the overdraft balance.

vi) Preference shareholders have agreed to given up their right for the two year’s dividend and accept twelve fully paid equity shares of `5 each for

each fully paid preference share. You are required to a) pass journal entries to record the above

transactions and b) draw up a fresh balance sheet after giving effect to the scheme of reconstruction.

4. The following are the Balance Sheet as on 31-12-2010 of x Ltd and Y Ltd.

Liabilities X Ltd `

Y Ltd `

Assets X Ltd `

Y Ltd `

Equity share capital (`100 per

share) 6% debentures of `10 each

Reserve Fund Dividend Equalisation Fund

1,00,000

20,000 34,000

4,000

60,000 -------- -------- -------- --------

Land and Building Plant and Machinery Stock Cash Debtors

30,000

1,10,000 16,000

3,00 14,000

--------

50,000 8,000 1,000 9,000

- 3 -

Employees provident Fund Trade creditors Profit and Loss A/c

3,000 10,000 2,000

8,000 --------

1,73,000 68,000 1,73,000 68,000

The two companies agree to amalgamate and form a new company called ‘Z’ Ltd. which takes over the assets & liabilities of both the companies. The authorized share capital of ‘Z’ Ltd is `10,00,000 consisting of `1,00,000 equity

shares of `10 each.

The assets of X Ltd., are taken over at a reduced valuation of 10% with the exception of land and building which are accepted at book value. Both the companies are to receive 5% of the net valuation of their respective business as goodwill. The entire purchase price is to be paid by Z Ltd., is full paid shares. On return for debentures is X Ltd, debentures of the same amount and denomination are to be issued by Z Ltd. Prepare the realization A/c and shareholders A/c is the books of X Ltd. Write journal entries in the books of Z Ltd and also prepare the opening balance sheet of Z Ltd assuming that amalgamation is in the nature of purchase.

SECTION – B

Answer any FOUR questions: 4X10=40 5. What is internal reconstruction and explain the different forms of internal

reconstruction in brief.

6. Narmada Company Ltd. invited applications for 10,000 shares of `100 each at a discount of 10% payable `20 on application, `25 on allotment, `30 on first call and the balance on final call. Applications were received

for 15,000 shares and applicants for 12,000 shares were allotted 10,000 shares on pro-rata basis. All the sums due were received in full.

Show journal entries in the books of the company.

7. A Ltd. Co. has 60,000 5% debentures outstanding on 1st January 2011. On that date, the Debenture Redemption Fund stood at `50,000 represented by `59,000 3% government securities. The annual instalment added to Debenture Redemption Fund is `8,230.

On 31st December 2011, the balance at bank (after entered on investment has been received) was `15,640. On that date investments realized at

83% net and the debentures were paid off.

Prepare Debentures Redemption A/c, Debenture Redemption Fund Investments A/c and Bank A/c for the year 2011.

- 4 -

8. Amar Ltd and Bharath Ltd., were amalgamated on 1st April 2010. A new Company Chirag Ltd., was formal to take over business of existing companies. The Balance Sheet of Amar Ltd. and Bharath Ltd., as on 31st March 2010 were as follows:

Amar Ltd. `

Bharath Ltd. `

Share Capital Equity shares of 10 each 12% pref. shares of 100 each Reserves & Surplus Capital reserve General Reserve Profit & Loss A/c Secured loans Trade creditors Tax provision Fixed assets Depreciation Investments Current assets Stock Debtors Cash and bank balance

6,00,00

3,00,000

2,00,000 3,00,000 1,00,000 4,00,000 3,00,000 2,00,000

24,00,000

12,00,000 2,00,000

10,00,000 4,00,000

3,00,000 4,00,000 3,00,000

4,00,000 2,00,000

1,50,000 1,50,000

50,000 2,00,000 1,00,000

50,000 12,30,000

8,00,000 1,50,000

6,50,000 1,50,000

1,50,000 2,00,000 1,50,000

24,00,000 13,00,000

Other information:

1) Preference shareholders of the two companies are issued equivalent number of 15% preference shares of Chirag Ltd.

2) Chirag Ltd. will issue one equity share of `10 each for every share of

Amar Ltd. and Bharath Ltd.

Prepare the Balance Sheet of Chirag Ltd., on the assumption that the amalgamation is in the nature of merger.

9. The Balance Sheet of Chaitra Ltd., as on 31-12-2011 was as follows.


Share Capital 30,000 8% preference shares of `10 each

1,00,000 equity shares of `5 each

14% debentures Creditors

3,00,000

5,00,000 2,00,000 3,00,000

Goodwill Land Machinery Tools Stock Debtors Cash Profit and Loss A/c

2,00,000 4,00,000 2,50,000 1,00,000 1,00,000

65,000 10,000

1,75,000

1,30,000 1,30,000

On this date, it was decided to reconstruct the company and the following scheme of reconstruction was agree on

- 5 -

1) The creditors to accept 14% debentures to the extent of half of their due and the salaries to be paid after six months

2) The preference shares to be reduced to shares of `5 each

3) Equity shares to be reduced to shares of `1 each.

4) The debit balance of Profit & Loss A/c and goodwill to be written off.

5) Land to be reduced by `79000, Machinery by `40,000 and tools by `48,000.

6) RBD to the extent of `8,000 is to be created.

Give journal entries and reconstructed Balance Sheet.

SECTION – C

Answer all the questions: 4X5=20 10. What do you mean by issue of shares at a premium? State the legal

provisions as to the utilization of share premium by a company.

11. Pass the necessary journal entries for the following issue.

1) 7 ½ debentures issued at par redeemable at 5% premium amount `1,00,000.

2) 7 ½ debentures issued at 10% discount redeemable at 5% premium amount `1,00,000.

12. The Trial Balance of C Ltd., as at 31st March 2010 shows the following:-

Item Dr. `

Cr. `

Income tax paid Provision for taxation for the year ended 31-3-2009

2,20,000

--------

---------

1,80,000

The following further information is given:

i) Actual tax liability for 2008 – 09 amounts to Rs.1,52,000. No effect for the same has so far been given in the accounts.

ii) Provision for income tax has to be made for 2009-10 for `1,60,000.

Show how these items will appear in the Profit and Loss Account and Balance Sheet of the Co.

13. On 1st January 2008, Raja Ltd issued 2000 5% debentures of `100 each

repayable at the end of 4 years at a premium of 5%. It has been decided to set by a sinking fund for the purpose. The annual instalment set aside is `49,453. Show the Sinking Fund A/c for the years assuming the rate of

interest on investments to be 4%p.a.

*************

- 1 -

COM 502 Reg. No. ……………………………


COST ACCOUNTING - III



1. From the following particulars prepare cost sheet, Profit and Loss A/c and

the reconciliation statement.

`

Opening stock of raw materials Closing stock of raw materials Purchase of raw materials Wages Lighting – factory Rent – factory Power Indirect wages Depreciation on plant Oil and cotton waste Works managers salary Rent – office Lighting – office Miscellaneous office expenses Goodwill written off Opening finished goods 500 units Closing stock of finished goods 800 units Dividend received

35,000 75,000

1,90,000 85,000 1,800 1,400 7,500 1,250

14,000 2,500 1,500 9,000

450 625

1,200 12,500 15,000 1,500

In the cost sheet factory overhead is 25% of prime cost, office overhead is 50% of works overhead. Profit is 25% of cost of sales.

2. From the following Balance Sheet and other information of Rajaha Ltd., for the years 2010 and 2011, prepare Funds Flow Statement and Schedule of Changes in Working Capital.

Liabilities 2010 2011 Assets 2010 2011

Share Capital General Reserve Profit & Loss A/c 12% Debentures Sundry Creditors Bills Payable Proposed Dividends Provision for Tax

2,00,000 10,000 15,000

2,00,000 1,25,000

75,000

40,000 60,000

2,50,000 25,000 50,000

2,35,000 60,000 40,000

40,000 50,000

Goodwill Buildings Plant & Machinery Investments (long term) Stock Sundry Debtors Cash in Hand Cash at Bank

7,500 1,42,500

93,000

75,000

2,00,000 1,50,000

6,250 50,750

5,000 1,57,500

75,000

75,000

1,80,000 1,65,000

12,500 80,000

7,25,000 7,50,000 7,25,000 7,50,000

- 2 -

Additional Information:

1) During the year investments costing `20,000 were sold at a profit of `10,000

2) An interim dividend of `25,000 was paid during the year.

3) Taxes paid during the year `60,000

4) `15,000 was charged as depreciation on buildings

5) Depreciation on plant and machinery `9,300

3. From the information given prepare the Production Budget and production cost budget for six months ending 30th June 2010

Month Estimated Sales Product A Product B January February March April May June July

1400 1200 1000 800 1600 900 120

1200 800 1400 1000 1400 1100 1600

The closing stock units are equal to ½ of the anticipated sales of the next month and will be in stock at the end of each month.

The budgeted production and production cost for 2010 are

Product A Product B Production (units) Direct material per unit Direct wages per unit Manufacturing charges (Based on units manufactured)

11,000 12 5

33,000

12,000 19 7

48,000

4. a) What is Management Responsibility Report? What are the essentials of

ideal report?

b) Explain the need for reconciliation of cost and financial profits.

SECTION – B

Answer any FOUR questions: 4X10=40 5. What is transfer pricing? Explain the various types of transfer pricing.

6. Explain the areas of cost reduction.

7. A company produces a product called Sm201. Each unit of Sm201 requires 2 units of raw materials X and 3 units of raw material Y. From the following details prepare a material purchase budget for the year 2010.

Estimated sales for 2010 – 54,000 units of Sm201 Estimated opening stock Sm201 10,000 units

- 3 -

Raw material X – 12000 units Raw material Y – 15000 units Desirable closing stock Sm201 14,000 units Raw material X – 13000 units Raw material Y – 16000 units

8. From the following particulars prepare a reconciliation statement.

Profit and Loss Account for the year ended 31.12.2011

` ` To Opening Stock

To purchases To Wages To Factory Overhead To Gross Profit To Administrative expenses To selling expenses To Net Profit

4,94,358

1,64,308 46,266 41,652 96,658

8,43,242

19,690 44,353 33,248

By Sales

By Closing Stock By Gross Profit By Sundry Income

6,93,000

1,50,242

8,43,242

96,658 632

97,290 97,290

The costing records show:

a) Closing stock balance of 1,56,394

b) Wages absorbed during the year 49,734

c) Factory overhead absorbed 39,000

d) Administrative expenses charged at 3% of sales value

e) Selling expenses charged at 5% of sales value

9. From the following Balance Sheet prepare Cash Flow from operations.

Liabilities 2010 2011 Assets 2010 2011

Share Capital

Redeemable Preference Capital

Reserve

Profit & Loss

Proposed dividend

Creditor

Bills Payable

O/S wages

6,00,000

3,00,000

80,000

60,000

84,000

1,10,000

40,000

80,000

8,00,000

2,00,000

1,40,000

96,000

1,00,000

1,66,000

32,000

1,00,000

Goodwill

Land & Building

Plant

Debtor

Stock

B/R

Cash

Bank

2,30,000

4,00,000

1,60,000

3,20,000

1,54,000

40,000

30,000

20,000

1,80,000

3,40,000

4,00,000

4,00,000

2,18,000

60,000

20,000

16,000

13,54,000 16,34,000 13,54,000 16,34,000

- 4 -

SECTION – C

Answer all the questions: 4X5=20 10. State five objectives of management accounting.

11. Distinguish between cost centre and responsibility centre.

12. Prepare a production budget at 60% capacity. The following data is furnished at 80% capacity.

Actual production 8000 units Labour cost per unit `30 Direct expenses per unit `20

Material cost per unit `50 Factory overhead `20 (60% variable) Administration overhead per unit `30 (75% fixed)

13. The following details are ascertained on comparison of cost and financial accounts.

a) Interest paid `800, transfer fees collected `300, and dividend received `200, goodwill written off `13,000 are exclusively taken in financial

accounts, but ignored in cost accounts.

b) Overheads charged in financial books. `1,21,200, but recovered in cost accounts `1,26,200.

c) Profit as per cost sheet is `2,24,000. Draw up a reconciliation

statement.

*************

COM 503 Reg. No. ……………………………


MARKETING AND ADVERTISING MANAGEMENT - I


SECTION – A


1. Explain the different marketing concepts.

2. Explain the criteria for market segmentation. Explain the different basis

of market segmentations?

3. Explain the different areas of market research.

4. What are channels of distribution? Explain the factors influencing the

selection of a suitable channel of distribution of goods.

SECTION – B


5. Explain undifferentiated market segmentation strategy.

6. Explain in brief the Psychological determinants of consumer behavior?

7. What is De-marketing and Social marketing?

8. Briefly explain the Pricing process.

SECTION – C Answer all the questions: 4X5=20 9. State any two differences between Traditional and Modern marketing.

10. What is Word of mouth marketing?

11. State two differences between market research and marketing research.

12. What is PLC? State the stager of PLC.

13. State any four emotional buying motives.

*************

- 1 -

COM 505 Reg. No. ……………………………


BUSINESS LAW



1. Define ‘contract’. Explain the essential elements and types of a valid

contract.

2. Who is an agent? Explain the various modes by which an agency may be

created and terminated? What are the rights of an Agent?

3. Define ‘condition’ state the various conditions and warranties contained in the sale of Goods Act.

4. What is Partnership? Explain rights and duties of a Partner. How a Partnership firm can be registered and expelled?


5. What is Bailment? Explain the duties and liability of a Bailer.

6. Distinguish between contract of Indemnity and contract of guarantee.

7. What are ‘Goods’? Explain the various kinds of goods.

8. Explain the Quasi Contract.

9. Who is a Partner? Explain different kinds of Partners.

SECTION – C


10. What is Equity Law?

11. Define Agency.

12. What is Novation?

13. What is General Lien and Particular Lien? 14. Who is an unpaid seller?

*************

Documents

Personal Pe r s on a l > 1 · 4. What are the rights and duties of a paying banker and state the circumstances under which paying banker can refuse payment of cheques? SECTION ²