Global College International
Please read the updated instructions [click here] carefully before you attempt the following questions.
Attempt any TEN questions (10*10=100)
- Briefly explain the meaning and concepts of tourism and hospitality accounting along with importance.
- Briefly explain any 5 accounting principle and concepts.
- Briefly explain the objectives of budgeting.
- Explain the breakeven point. Why it is calculated?
- TheTrial balance of a company limited on 31st December 2016 is given below;
Trial Balance
As at 31st Dec. 2018
Particulars | Debit Amount | Credit Amount |
5000 equity shares of Rs. 100 each Furniture and fixture Cash at bank Bank loan Opening stock Salaries Travelling expenses Sales General reserve Accounts receivable Account payable General expenses Advertisement expenses Purchase Rent received |
800000 220000
200000 150000 90000
50000
190000 120000 790000
| 500000
200000
1500000 350000
50000
10000 |
Total | 2610000 | 2610000 |
Additional information:
Stock at the end of the year Rs. 30000
Depreciate furniture and fixture by 15%
Bad debt written off Rs. 25000
Directors have proposed a dividend on equity shares @ 5%
Required: Income statement
- The following information are given to you:
Fixed cost Rs. 90000
Variable cost per unit Rs. 10
Sales price per unit Rs. 16
Required:
- a) P/V ratio
- b) BEP in units and in Rs.
- c) Sales volume in Rs, to earn after tax profit Rs. 250000. The tax rate is assumed as 40%.
- The following data of a company for the year is given:
Fixed cost Rs. 200000
Profit Rs. 40000
Profit volume ratio 60%
Variable cost per unit Rs. 4
Required:
- Amount of sales made during the year
- Selling price per unit
- Required sales to earn Rs. 5200 net profit
- An unadjusted trial balance is given to you.
Particulars | Debit Amount | Credit Amount |
Cash Bank Discount allowed Furniture Purchase net Sundry debtors Interest on loan Salary Rent Paid up capital Creditors Discount received Sales revenue 10% bank loan |
200000 354000 5000 120000 200000 85000 6000 60000 30000
|
50000 50000 10000 400000 100000 |
Total | 1060000 | 1060000 |
Adjustments:
Closing stock Rs. 50000
Prepaid rent was Rs. 2000
Depreciation on furniture @ 10% p.a
Required: Balance Sheet
(Hints: Net profit Rs. 145000)
- Consider the following information:
Months | Jan | Feb | Mar | Apr |
Sales Units | 20000 | 30000 | 40000 | 30000 |
Closing stock of each month is equal to 40% of next month sales. The opening stock in January was 8000 units.
Required: Production budget for first three months
- A budgeted data of three months is provided to you:
Months | Apr | May | Jun |
Production Units | 10000 | 7000 | 15000 |
Other information:
Indirect material @ Rs. 2 per unit
Indirect labor @ Rs. 1 per unit
Salary Rs. 7000 per month
Supervision @ Rs. 0.50 per unit
Rent Rs. 120000 annually
Insurance @ Rs. 0.25 per unit
Depreciation Rs. 60000 per year
Required: Overhead budget for three months and overhead cost per unit
- Why accounting records are needed in the business? Explain.
- The budgeted data are available:
Months | Jan | Feb | Mar | Apr | May |
Sales units | 10000 | 12000 | 8000 | 9000 | 15000 |
One unit of material requires 2 kg of raw material. The cost of material is Rs. 5 per kg. The company decided to keep closing stock equal to 40% of next month sales and material required. The opening stock of raw material in January was 10000 units and the opening stock of finished goods in January was 5000 units.
Required: Production budget and material purchase budget.
*Upon completion of the exam, send your answers to subash.acharya@gci.edu.np, following the guidelines mentioned in the instructions.
