COMMONWEALTH EXECUTIVE
MBA/MPA PROGRAMME
Term-End Examination
June 2010
C-9: MARKETING FOR MANAGERS
Time: 3 hours Maximum Marks: 100
(Weighting 70%)
Note: Attempt any five questions. All questions carry equal marks.
- Explain the following accounting concepts:
- Money Measurement Concept
- Continuity Concept
- Cost Concept
- Accrual Concept
- (a) Discuss the role of accounting feedback in the process of Control.
(b) Explain the uses of earning information.
- What do you understand by Budget and Budgetary control? Briefly discuss the various budgets that are normally prepared by companies.
- Discuss the concept of financial leverage and explain its significance. How it is measured? Describe.
- What are the various components of working capital? Discuss the various factors that determine the working capital requirements of a business concern.
- What do you understand by the capital structure of a firm? Explain the factors which determine the capital structure.
- From the Trial, Balance of M/s XZY prepare a Trading and Profit and Loss Account for the year ending 31st March 2010 and a Balance sheet as on that date.
| Particular | Dr. (Rs.) | Particular | Cr. (Rs.) |
| Cash Stock Wages Purchases Returns Repairs Bad Debts Interest on loan Salaries Sales tax Octroi Insurance Charity Rent Machinery Debtors (Including Shyam for dishonoured bill of Rs. 800) | 10000 40800 22525 130295 2400 1675 2310 600 8000 800 500 1000 125 2000 16000 30000 | Sales Returns Loans @ 12 % (on 1-7-09) Creditors Discount Capital | 180500 195 20000 30305 530 37500 |
| Total | 269030 | Total | 269030 |
Adjustments:
- Wages include Rs. 2000 for erection of new machinery on 01-04-2009
- Stock on 31 st March 2010 was valued at Rs. 40925
- Provide depreciation on machinery @ 5% p.a.
- Unpaid Salaries Rs. 800
- Half the amount of Shyam's bill is irrecoverable
- Create a provision at 5% on other debtors
- Rent paid up to 31st July 2010
- Unexpired Insurance Rs. 300
- The following are the summarised Profit and Loss a/c of XYZ Ltd. for the year ending 31st December 2009 and Balance sheet as on that date. Profit and Loss A/C
| Particular | Amount Rs. | Particulars | Amount Rs. |
| To opening stock To Purchase To carriage inward To GP c/d To Operating expense Selling and Distribution 30000 Administration 150000 To Finance expense To non-operating loss On sale of assets To Net profit | 99500 545250 14250 340000 999000 180000 15000 4000 150000 | By sales By closing stock By GP b/d By Non-operating Incomes Interest 3000 Profit on sales of shares 6000 | 850000 149000 999000 340000 9000 |
| Total | 349000 | Total | 349000 |
Balance Sheet
Liabilities Amount Rs. Assets Amount Rs.
2000 Equity shares 2,00,000 Land & Building 1,50,000 Reserves 90,000 Plant & Machinery 80,000
Current liabilities 1,30,000 Stock in trade 1,49,000
Profit & Loss A/c 60,000 Sundry debtors 71,000
Cash at Bank 30,000
Total 4,80,000 Total 4,80,000
From the above statements you are required to calculate the following:
- Current ratio
- Operating ratio
- Stock turnover
- Return on total assets
- Fixed asset turnover ratio
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