Important Questions KMBN103

Some Important Question of KMBN 103
2 marks questions:
Q. To make accounts comparable we need one convention to be followed name the convention and also
explain the same.
Q. “Closing stock is always valued at Cost price or Market price whichever is less” as per which
convention, explain the same.
Q. Define Accounting Standards.
Q. Define accounting.
Q. Show the distinction between SLM and WDV.
Q. Accounting standards bring uniformity in business language- Discuss.
Q. Discuss subdivision of journal?
Q. Differentiate between Cash Flow Statement and Balance Sheet.
Q. Explain the components of Financial Statements.
Q. Explain turnover ratios for a business.
Q. Discuss the use of Debt/Equity ratio?
Q. Illustrate Human Resource Accounting.
Q. Demonstrate the concept of accounting for CSR
Q. Describe Human Recourse Accounting.
Q. Illustrate the treatment of Loss by fire in Final Accounts?
Q. List any four tools available for the analysis of financial statement.
Q. What is the significance of Liquidity ratios?
Q. Who are the internal users of Accounting Information ?
Q. Define the term "Depreciation" and "Amortization".
Q. Explain the significance of Solvency Ratio.
Q. What are the Golden Rules of Joumalizing?
Q. Define compound entry with an example.

Long Question:
Q. Define accounting its objectives and Limitation.
Q. Describe the objectives and limitations of human resource accounting.
Q. What do you mean by Double Entry System? Explain the merits and demerits also.
Q. Prepare the format of Common size Balance Sheet with imaginary figures.
Q. From the following transactions prepare Journal Entries, Ledger & Trial Balance:
i) Mr. Ram commenced business with cash Rs.1,80,000.
ii) Good Purchased from Mohan for Rs. 25,000 on credit.
iii) Goods sold to Sunder for Rs.10,000 on credit.
iv) Paid to Mohan Rs. 10,000.
v) Machinery Purchased for Rs. 10,00
Q. Discuss various accounting concepts in detail with examples. 10 1
Q. On 1st January, 2018, machinery was purchased by X for Rs.80,000. On 1st July, 2019, additions were
made to the extent of Rs.20,000. On 30th June, 2021 machinery purchased on 1st January, 2018, was
sold for Rs.26,000. Depreciation is charged at 10% per annum on original cost. Show the Machinery
Account for the years from 2018 to 2021 in the books of X. X closes the books on 31st December.
Q. Explain the objectives and need of forensic accounting.
Q. The following is the Trial Balance of Mr. A on 31st December, 2018:

Taking into account the following adjustments prepare Trading and Profit and
Loss Account and the Balance Sheet:
i.Stock on hand on 31st December, 2018 is Rs.13,600.
ii.Machinery is to be depreciated at the rate of 10% and patents at the rate of
10%.
iii.Salaries for the month of December, 2004 amount Rs.2,000 were unpaid.
iv.Insurance include a premium of Rs.170 for 2019.

v.Wages include a sum of Rs.3,000 spent on the erection of a scooter shed for
employees.
vi.A provision for Bad and Doubtful Debts is to be created to the extent of 5%
on Sundry Debtors.
Q. Suppose you are an investor and you want to invest the money into a company;
which ratios you will calculate and why?
Q. From the information given below:
Net Sales 10,00,000
Cost of Goods Sold 6,00,000
Current Assets 4,00,000
Current Liabilities 2,80,000
Paid-up Share Capital 5,00,000
13% Debentures 2,00,000
Calculate the following ratios:
i) Current ratio ii) Working Capital Turnover Ratio
iii) Debt-Equity Ratio iv) Proprietary Ratio & v) Gross Profit Ratio
Q. From the following information for the year ended 31st Dec 2018:
Total Sales- Rs. 5,00,000/- Sales Return- Rs. 50,000/- Gross Profit – 40%
of Net Sales. Cost of goods sold – Rs.?? Operating Expenses – Rs.60,000/-
Non-operating Income – Rs. 21,000/- Tax Rate is 50%
Evaluate the performance of company with the help of following ratios:
i) Gross Profit Ratio;
ii) Operating Ratio;
iii) Net operating Profit Ratio and
iv) Net Profit Ratio.

Q.
Q. On July 01, 2010, Ashok Ltd. purchased a machine for ₹ 1,08,000 and
spent ₹ 12,000 on its installation. At the time of purchase, it was estimated
that the effective commercial life of the machine will be 12 years and after
12 years its salvage value will be ₹ 12,000. Demonstrate machine account
and depreciation Account in the books of Ashok Ltd. For first three years,
if depreciation is charged according to straight line method.

Q.
iv. Depreciate plant and machinery at 20%.
You are required to prepare trading and profit and loss account for the year
ended 31st December, 2016 and a balance sheet as on that date. Also
analyse the Profitability and financial position of the organisation.
Q. Accounting Principles bring uniformity into accounts for all
business organisations. Illustrate fundamental accounting principles.

Q. Balance Sheet is a complex display of accounting equation-
Illustrate.
Q. “In the present scenario of increasing cross-border business, the
Indian Accounting Standards are to be matched with that adopted at
International level”- Examine this statement.
Q. “Trial Balance is the proof of arithmetic accuracy of accounts”.
Illustrate.
Q. Outline the vertical format of Balance Sheet as laid down in
Companies Act, 2013.
Q. Outline the variegated movement of cash in an organization in the Cash
Flow Statement.
Q. Summarize various ratios citing their utility for the users.
Q. List out Ratio Analysis with its advantages and limitations.
Q. Summarize Vertical analysis of financial statements with imaginary
figure.
Q. Summarize Trend analysis of financial statements with its
limitations.
Q. State whether the following expenditure is Capital or Revenue
and why ? Give reasons for your answer :
(D Depreciation on Machine.
(ii) White-wash to a new Building.
Q. Distinguish between "Capital Expenditure" and "Revenue
Expenditure".
Q The following Balances were extracted from the books of
Bhavya on 31" March 2012 :
Capital 24,500 Loan 7,880
Drawings 2,000 Sales 65,360
General Expenses 4,740 Purchase 47,000
Building 11,000 Motor Car 2,000

Machine 9,340 Bad Debts Provision 900
Stock 16,200 Commission(Cr) 1,320
Tpxes and Insurance 1,3i5 Car Expenses 1,800
Wages 7,200 BillsPaYable 3,850
Debtors 6,280 Cash 80
Creditors 2,500 Bad Debts 3,300
Bank Overdraft 550 Charity 105
Prepare the Trading and Profit and Loss Account for the year
ended 31" March 2012 and a Balance Sheet as on that date
after considerihg the following adjustrnents :
(a) Stock on 31"'March 2012 was valued at Rs. 23,000.
(b) Write offa further Rs. 180 as Bad Debts and maintain the
Bad Debts Provisions at 5Yo on Debtor.
(c) Depreciate Machine by l0%.
(d) Provide Rs. 700 for outstanding interest on loan.
Q. From the following information calculate :
(i) StockTurnoverRatio
(iD Current Ratio
(iii) LiquidRatio
(rD Net Profit Ratio
(v) Working Capital Turnover Ratio.
Sales 25,20,000; Cost of Sales 19,20,000; Net Profit 3,60,000;
Average Stock 8,00,000 ; Other Current Assets 7,60,000 ;
Fixed Assets 14,40,000 ; Long Term Debt 9,00,000 ;
Current Liabilities 6,00,000 ; Trade Creditors 2,00,000 ;
Net Profit before interest and Tax 8,00,000.
Q. Define lnternational Financial Reporting Standards (IFRS), its
utility and major challenges in implementation of IFRS in Indian
context.

Important Questions KMBN103

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Important Questions KMBN103

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Some Important Question of KMBN 103

Q. Define Accounting Standards.

Q. Show the distinction between SLM and WDV.

Q. Accounting standards bring uniformity in business language- Discuss.

Q. Discuss subdivision of journal?

Q. Differentiate between Cash Flow Statement and Balance Sheet.

Q. Explain the components of Financial Statements.

Q. Explain turnover ratios for a business.

Q. Discuss the use of Debt/Equity ratio?

Q. Illustrate Human Resource Accounting.

Q. Demonstrate the concept of accounting for CSR

Q. Describe Human Recourse Accounting.

Q. Illustrate the treatment of Loss by fire in Final Accounts?

Q. What is the significance of Liquidity ratios?

Q. Who are the internal users of Accounting Information ?

Q. Define the term "Depreciation" and "Amortization".

Q. Explain the significance of Solvency Ratio.

Q. What are the Golden Rules of Joumalizing?

Q. Define compound entry with an example.

Q. Define accounting its objectives and Limitation.

Q. Describe the objectives and limitations of human resource accounting.

i) Mr. Ram commenced business with cash Rs.1,80,000.

ii) Good Purchased from Mohan for Rs. 25,000 on credit.

iii) Goods sold to Sunder for Rs.10,000 on credit.

iv) Paid to Mohan Rs. 10,000.

v) Machinery Purchased for Rs. 10,00

Q. Discuss various accounting concepts in detail with examples. 10 1

Q. Explain the objectives and need of forensic accounting.

Q. The following is the Trial Balance of Mr. A on 31st December, 2018:

Loss Account and the Balance Sheet:

i.Stock on hand on 31st December, 2018 is Rs.13,600.

ii.Machinery is to be depreciated at the rate of 10% and patents at the rate of

iv.Insurance include a premium of Rs.170 for 2019.

which ratios you will calculate and why?

Q. From the information given below:

Net Sales 10,00,000

Cost of Goods Sold 6,00,000

Current Assets 4,00,000

Current Liabilities 2,80,000

Paid-up Share Capital 5,00,000

13% Debentures 2,00,000

Calculate the following ratios:

i) Current ratio ii) Working Capital Turnover Ratio

of Net Sales. Cost of goods sold – Rs.?? Operating Expenses – Rs.60,000/-

Non-operating Income – Rs. 21,000/- Tax Rate is 50%

Evaluate the performance of company with the help of following ratios:

i) Gross Profit Ratio;

ii) Operating Ratio;

iii) Net operating Profit Ratio and

iv) Net Profit Ratio.

spent ₹ 12,000 on its installation. At the time of purchase, it was estimated

12 years its salvage value will be ₹ 12,000. Demonstrate machine account

if depreciation is charged according to straight line method.

iv. Depreciate plant and machinery at 20%.

analyse the Profitability and financial position of the organisation.

Q. Accounting Principles bring uniformity into accounts for all

business organisations. Illustrate fundamental accounting principles.

Q. “In the present scenario of increasing cross-border business, the

Indian Accounting Standards are to be matched with that adopted at

International level”- Examine this statement.

Q. “Trial Balance is the proof of arithmetic accuracy of accounts”.

Q. Outline the vertical format of Balance Sheet as laid down in