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MBA I Semester

II Internal Test

PART A (2X4=8 MARKS)

Answer ANY 4 Questions. Ea! "uestion arries 2 #ar$s.

1. What do you mean by depreciation?

2. Mention any two objective of inventory valuation.

3. What do you mean by fund flow statement?

4. How do you treat provision for taation under fund flow statement?

!. Mention any two differences between fied assets and current assets .

PART %

(8X 2= &' MARKS)

Answer An T* Questions. Ea! "uestion arries 8 #ar$s.

1. "plain the causes for depreciation and need for providin# depreciation.

2. $ company whose accountin# year is the calendar year purchased on 1 st $pril 2%%!

machinery costin# &'. 3%(%%%.)t further purchased machinery on 1st

*ctober 2%%!costin# &s. 2%(%%% and on 1 st+uly 2%%,( costin# 1%(%%%. *n 1 st+anuary 2%%- one third of

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the machinery which was installed on 1 st$pril 2%%! became obsolete and was sold &s.

3(%%%. 'how how the machinery account would appear in the boos of company. /he

depreciation to be char#ed at 1%0 p.a on written down value method.

3. rom the followin# transactions( prepare a stores led#er account usin# )* method.

ear 2%%

1st+uly

*penin# stoc !%% units &s.2% each

4th+uly 5urchased 4%% units &s.21 each

,th+uly )ssued ,%% units

th+uly 5urchased %% units &s.24 each

6th+uly )ssued !%% units

13th+uly )ssued 3%% units

24th+uly 5urchased !%% units &s.2! each

2th+uly )ssued 4%% units

PART +

(&2 ,&=&2 MARK)

1. "plain in detail the various methods of depreciation.

2. rom the followin# trail balance prepare /radin#( 5rofit and loss account and 7alance

sheet.

5articulars A#ount Partiu-ars A#ount

Pur!ases

aes

/isount

Sa-aries

Tra0e--in E,1enses

+arriae inwars

3nsurane

+o##ission

Rents an rates

+as! in !an

&'

'5

&6

2

5

275

&5

625

5

25

Sa-es

+a1ita-

Mortae an interest

Sunr reitors

6

&'55

65

2&

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+as! at an$

Re1airs

Sunr e,1enses

Mortae interest

%ui-in

Ma!iner

9orses an arts

*1enin sto$ (&:&:2;)

Sunr etors

Tota-

2725

6

55

&5

4

&5

5

575

625

4585 Tota-4585

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