Question 1. “Accountancy is an Information System”. Do you agree? Substantiate your answer with reasons. How does an Accountant help in planning and controlling a large commercial organization? Explain.
Question 2. The following are the Balance Sheets of XYZ Ltd. for the years ending 31st December, 2014 &2015 .
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Particulars
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2014 (Rs.)
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2015 (Rs.)
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Liabilities
Equity Share Capital
Preference Share Capital
Reserves
Profit and Loss a/c
Bank overdraft
Creditors
Provision for taxation
Proposed Dividend
Total
Fixed Assets
Less: Depreciation
Stock
Debtors
Bills Receivable
Prepaid expenses
Cash in Hand
Cash at Bank
Total
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2,00,000
1,00,000
20,000
15,000
50,000
40,000
20,000
15,000
4,60,000
2,40,000
40,000
1,00,000
20,000
10,000
40,000
10,000
4,60,000
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3,30,000
1,50,000
30,000
20,000
50,000
50,000
25,000
25,000
6,80,000
3,50,000
50,000
1,25,000
60,000
12,000
53,000
30,000
6,80,000
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Prepare the comparative balance sheet and study its financial position.
Question3. ABC Ltd. maintains their books of Cost Accounts under standard costing system in which the work-in-progress is debited with actual costs and credited with standard costs. The standard cost card for product X shows:
Cost per unit (Rs.)
Direct material 1pc @ Rs. 1.501.50
Direct labour3hrs @ Re. 1.003.00
Factory overhead 3 hrs.@Rs. 2.50 7.50
(to be charged to product X)
Production data
Units completed 950 units
Units in closing WIP 100 units 50% completed
Cost of units remaining work- in- progress Account is transferred to work- in- progress Inventory Account. You are required to compute all possible variances
Question 4. As a Manager what strategy you will adopt so that you are able to efficiently manage the cash in business?
Question 5. Visit an organization of your choice and find out the investment appraisal methods that the organization follows. Write a note on your visit.