1. Register Number :
Name of the Candidate :
6 6 8 4
B.C.A. DEGREE EXAMINATION, 2008
( SECOND YEAR )
( PART - III )
( PAPER - VIII )
620 / 220. BUSINESS AND ACCOUNTING
( New Regulations and Revised Regulations )
( Including Lateral Entry )
December ] [ Time : 3 Hours
Maximum : 100 Marks
SECTION - A (8 × 5 = 40)
Answer any EIGHT questions.
All questions carry equal marks.
1. Define Bank Reconciliation statement and write
its importance.
Turn over

2. 2 7
2. Calculate the trend percentage from the 15. F rom the following particulars, ascertain
following figures of HIRTHICK enterprises, the bank balance as per cash book of
taking 1996 as the base : M r. Subburaman as at 31st M arch, 2005 :
Profit before tax (i) Credit balance as per pass book as
Year Sales Stock
(Rs. in lakhs) on 31- 3- 2005 - Rs. 2,500.
1996 1881 709 321 (ii) B ank charges of Rs. 60 had not been
1997 2340 781 435 entered in the cash book.
1998 2655 816 458 (iii) O ut of the cheq ue of Rs. 3,500 paid
1999 3021 944 527 into the bank, a cheq ue of Rs. 1,000
was not yet credited by the banker.
2000 3768 1154 678
(iv ) O ut of the cheq ues issued for
3. Explain the limitations of ratio analysis. Rs. 4,500, cheq ues of Rs. 3,800 only
were presented for payment.
4. Explain the following concepts :
(v ) A div idend of Rs. 400 was collected
(i) Indirect materials.
by the banker directly but not
(ii) Indirect labour. entered in the cash book.
(iii) Indirect expenses. (v i) A cheq ue of Rs. 600 had been
dishonoured prior to 31- 3- 2005, but
no entry was made in the cash book.

3. 6 3
13. What do you understand by the term 5. D etermine the value of closing stock from the
“Break - Even Analysis” ? Enumerate the merits following details :
and demerits.
S ales Rs. 4,00,000
14. Calculate the average rate of return for
G ross profit ratio : 10 % on sales.
projects - A and B from the following :
S tock velocity = 4 times.
Project - A Project - B
Closing stock was Rs. 10,000 in excess
Investments Rs. 20,000 Rs. 30,000
of opening stock.
Expected life 4 years 5 years
6. D iscuss the importance of working capital for
( N o solvage value)
a manufacturing concern.
Project net income (after, interest, depreciation
7 . A project cost Rs. 5,00,000 and yields
and taxes)
annually a profit of Rs. 8 0,000 after
Year Project - A Project - B depreciation at 12 % p.a. but before tax of
Rs. Rs. 50 %. Calculate pay back period.
1 2,000 3,000
8 . What are the demerits of marginal costing ?
2 1,500 3,000
3 1,500 2,000 9 . Prepare trading account of M rs. M eera for
4 1,000 1,000 the year ending 31-12-2002 from the following
informations :
5 - 1,000
Rs....
6,000 10,000
O pening stock - 8 0,000
If the required rate of return is 12 %, which Purchase - 8 ,60,000
project should be undertaken ? Turn over

4. 4 5
R s....
700
900
Freight inwards - 52,0 0 0
R s.
5,0 0 0
3 ,40 0
1,9 50
Wages - 24,0 0 0 11,9 50
Sales - 14,40 ,0 0 0
900
40 0
R s.
5,0 0 0
2,40 0
P u rchase retu rns - 10 ,0 0 0 1,6 50
10 ,3 50
3 0 -6 -20 0 4 3 0 -6 -20 0 5
Sales retu rns - 3 ,16 ,0 0 0
C losing stock - 1,0 0 ,0 0 0
I mport du ty - 3 0 ,0 0 0 A ssets
Land
P lant
D ebtors
Stock
C ash
10 . What are the req u irements of a good
bu dgetary control sy stem ?
50 0
50 0
S E C TI O N - B ( 3 × 20 = 6 0 )
R s.
8 ,50 0
2,450
11,9 50
Answer any THREE questions.
All questions carry equal marks.
-...
900
R s.
8 ,0 0 0
1,450
11. D iscu ss the managerial u ses of Fu nds Flow
10 ,3 50
3 0 -6 -20 0 4 3 0 -6 -20 0 5
statement. What are its limitations ?
Liabilities
Share capital
R etained earnings
C reditors
M ortgage loan
12. From the following balance sheet of TVS. Ltd. prepare a cash flow statement :
Turn over