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CODE NO. R-MBA-003-2019

BRILLIANT’S ®

Accounting for
Managers
MBA
Semester- 1st
NP
According to New Syllabus

RDVV
Rani Durgavati University, Jabalpur

Last Year Solved Question Papers

Bilingual (English & Hindi) A§J«oOr Ed§ {hÝXr ^mfm _|

www.thebrilliants.in
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UNIT 1
 Accounting: Meaning, Scope, users & Types. Financial Accounting Concepts,
conventions and principles: Their implications on accounting system.
 Accounting Cycle. Classification of capital and revenue expenses.
UNIT 2
 Concept & Methods of depreciation SLM and DBM. Impact of depreciation on
measurement of business Accounting.
 Trial Balance, Profit and Loss Account and Balance Sheet Preparation
NP
 Incorporation of Company, Purchase of Business
UNIT 3
 Concept and Need for analysis of Financial Statements- Types and Tools of
analysis: Trend analysis, Common size statements and Comparative
statements. Final accounts of Company- Understanding.
 Financial Ratio Analysis: Meaning, Uses, Importance, need and limitations of
Ratio analysis. Types- Turnover, Liquidity, Solvency, Proprietary, Leverage and
Profitability Ratios.
UNIT 4
 Cost Accounting- Nature, Role, Elements & Classification of Cost. Cost Sheet.
 Marginal Costing: Concept, Importance and Contribution in Decision Making.
Limitation of Cost Accounting
 Cost Volume Profit Analysis: Break Even Analysis, Margin of Safety, PV Ratio.
 Concept of Variance (Materials and Labor)
UNIT 5
 Understanding of Inflation Accounting, Responsibility Accounting & Human
Resource Accounting.
 Concept of Budget and Budgetary control- Flexible vs. Fixed budget. Revenue
Budget, Preparation of Cash, Sales and Production Budgets.
 Introduction to Tally- Accounting application.

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UNIT 1
1.1 Meaning and Scope of Financial
Accounting
MEANING AND SCOPE OF ACCOUNTING / AH$mCpÝQ>¨J H$m AW© Ed§ ñH$mon
Q.1. What is the scope of Accounting? / AH$mCpÝQ>¨J H$m joÌ Š`m h¡? [2012]
OR
NP 21
What do you mean by Accounting? / AH$mCpÝQ>¨J go Amn Š`m g_PVo h¢?
MEANING AND FEATURES OF ACCOUNTANCY / AH$mC§Q>|gr H$m AW© VWm JwU
Q.2. What are the various features of Accountancy? Is it a science or an art?
AH$mC§Q>|gr Ho$ {d{^ÝZ JwU ³¶m h¢? ³¶m ¶h EH$ {dkmZ ¶m H$bm h¡?
OR
What is Accounting? Write its objectives. / AH$mC§qQ>J ³¶m h¡? BgHo$ CÔoí¶ {b{IE& 24

IMPORTANCE AND OBJECTIVES OF ACCOUNTANCY / AH$mC§Q>g

| r H$m ‘hÎd VWm CÔoí¶
OR
ACCOUNTING - THE LANGUAGE OF BUSINESS / AH$mC§qQ>J- ì¶mnma H$s ^mfm
Q.3. “Accounting is the language of the business.” Explain.
''AH$mC§qQ>J ì¶mnma H$s ^mfm h¡&'' g‘PmB¶o&
OR
What is the significance of accounting in business activities?
ì¶mnma J{V{d{Y¶m| ‘| AH$mC§qQ>J H$m ³¶m ‘hÎd h¡?
OR
Explain in brief the advantages of accountancy.
AH$mC§Q>|gr Ho$ bm^m| H$m g§{jßV dU©Z H$s{OE&
OR
How does accounting help in the planning and control process of a large commer-
cial organization? / EH$ ~‹S>o H$m°‘{e©¶b Am°J}ZmBOoeZ H$s ßbmqZJ VWm {Z¶§ÌU n«{H«$¶m ‘|
AH$mC§qQ>J H¡$go ghm¶Vm H$aVr h¡? 28
 Review Questions ............................................................................................ 30

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1.2 Basic Accounting Concepts,
Conventions and Principles
BASIC CONCEPTS, PRINCIPLES AND CONVENTIONS OF ACCOUNTING
boIm§H$Z H$s _yb AdYmaUmE±, {gÕm§V Ed§ na§namE±
Q.4. “Accounting conventions and concepts are foundation of accounting principles.”
Describe the statement.
Ÿ''AH$mCpÝQ>¨J H$s AdYmaUm¶| Ed§ {Z¶‘, AH$mC§pÝQ>¨J qàgrnëg Ho$ {b¶o AmYma h¡&'' Bg H$WZ
H$s ì¶m»¶m H$s{OE& [2019]
OR
Discuss briefly the basic accounting concepts and fundamental accounting
conventions.
_yc AH$mCpÝQ>¨J AdYmaUmAm| Ed§ AmYma^yV AH$mCpÝQ>¨J àWmAm| H$s g§jon _| MMm© H$s{OEŸ& 31
 Review Questions ............................................................................................ 45
NP
1.3 Accounting Cycle
Q.5. Write a short note on ‘Accounting Cycle’.
'AH$mC§qQ>J gm¶H$b' na g§{jnV {Q>ßnUr {b{I¶o& [2019]
OR
Discuss Accounting cycle / AH$mC§qQ>J gm¶H$b H$s ì¶m»¶m H$s{OE& 46
Q.6. Write short note on: Capital Expenditure and Revenue Expenditure.
g§{jßV {Q>ßnUr {b{IE: H¡${nQ>b EŠgn|{S>Ma VWm aodoÝ`y EŠgn|{S>MaŸ& [2015] 47
 Review Questions ............................................................................................ 48

UNIT 2
2.1 Depreciation
MEANING AND CAUSES OF DEPRECIATION / S>o{à{gEeZ H$m AW© Ed§ H$maU
Q.7. What is depreciation? Explain the impact of depreciation on measurement of busi-
ness accounting. / S>o{à{gEeZ ³¶m h¡? {~OZog AH$mCpÝQ>¨J Ho$ ‘oOa‘oÝQ> na S>o{à{gEeZ Ho$
à^md H$s ì¶m»¶m H$s{OE& [2019]
OR
What is depreciation? Why depreciation policy is so important in financial state-
ment analysis? / S>o{à{gEeZ ³¶m h¡? ’$m¶Z|{e¶b ñQ>oQ>‘|Q> Ho$ {díbofU ‘| S>o{n«{gEeZ Zr{V
BVZr ‘hÎdnyU© ³¶m| h¡? [2015]
OR

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Discuss the various causes of depreciation.
S>o{à{gEeZ Ho$ {d{^ÝZ H$maUm| H$s ì¶m»¶m H$s{OE&
OR
Define Depreciation. Distinguish it from (i) Amortization and (ii) Obsolescence.
S>o{à{gEeZ H$mo n[a^m{fV H$s{OE: (i) E‘moQ>m©BOoeZ VWm (ii) Amoãgmobog|g go BgH$m A§Va ~VmB¶o& 49

METHODS OF PROVIDING DEPRECIATION / S>o{à{gEeZ àXmZ H$aZo H$s {d{Y¶m§

Q.8. Describe the merits of straight line method of depreciation.
S>o{n«{gEeZ H$s ñQ´>oQ> bmBZ {d{Y Ho$ JwUm| H$m dU©Z H$s{OE& [2011]
OR
Describe two methods of accounting for depreciation.
S>o{à{gEeZ H$s AH$mC§qQ>J H$s Xmo {d{Y¶m| H$m dU©Z H$s{OE&
OR
Write the merits and demerits of Fixed Installment Method and Reducing Balance
Method with suitable example. / {’$³ñS> B§ñQ>mb‘|Q> {d{Y VWm [aS>²¶yqgJ ~¡b|g {d{Y H$m
Cn¶w³V CXmhaU g{hV JwU VWm Xmof {b{IE&
NP
OR
Explain written down value and straight line method of providing depreciation.
S>o{à{gEeZ àXmZ H$aZo H$s [aQ>Z S>mCZ d¡ë¶y VWm ñQ´>oQ> bmBZ {d{Y g‘PmB¶o& 56

DIFFERENCE BETWEEN FIXED INSTALLMENT METHOD

AND REDUCING BALANCE METHOD
{’$³ñS> B§ñQ>mb‘|Q> {d{Y VWm [aS²>¶yqgJ ~¡b|g {d{Y Ho$ ~rM A§Va
Q.9. Distinguish between straight line method and diminishing balance methods of
depreciation. What are the merits of WDV method of depreciation.
S>o{à{gEeZ H$s ñQ´>oQ> bmBZ {d{Y VWm {S>{‘{ZqeJ ~¡b|g {d{Y Ho$ ~rM A§Va ~VmB¶o& S>o{à{gEeZ
H$s WDV {d{Y Ho$ JwU ³¶m h¢? [2009]
OR
Distinguish between straight line and reducing balance method of depreciation.
S>o{à{gEeZ H$s ñQ´>oQ> bmBZ VWm [aS²>¶yqgJ ~¡b|g {d{Y Ho$ ~rM A§Va ~VmB¶o&
OR
Differentiate between straight line method of depreciation and written down value
method of depreciation.
S>o{à{gEeZ H$s ñQ´>oQ> bmBZ {d{Y VWm [aQ>Z S>mCZ d¡ë¶y {d{Y Ho$ ~rM A§Va ~VmB¶o&
OR
Distinguish between straight line and diminishing value method of calculating
annual depreciation.
dm{f©H$ S>o{n«{gEeZ H$s JUZm H$s ñQ´>oQ> bmBZ VWm {S>{‘{ZqeJ d¡ë¶y {d{Y Ho$ ~rM A§Va ~VmB¶o& 68
 Solved Practical Questions .......................................................................... 63
 Review Questions ............................................................................................ 70

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2.2 Trial Balance and Final Accounts with
Adjustments
MEANING AND CHARACTERISTICS OF TRIAL BALANCE
VbnQ> H$m AW© Am¡a {deofVmE±
Q.10. What is the meaning of Trial Balance? Write its characteristics.
VcnQ> (Q´>m`c ~¡coÝg) H$m Š`m AW© h¡? BgHo$ JwU {c{I`oŸ&
OR
Discuss the meaning of Trial Balance. / VcnQ> Ho$ AW© H$s {ddoMZm H$s{OEŸ& 71

OBJECTIVES AND IMPORTANCE OF TRIAL BALANCE

VbnQ> H$m CÔoí` Am¡a _hËd
Q.11. Why Trial Balance is prepared? / VcnQ> Š`m| ~Zm`m OmVm h¡? [2012]
OR
NP Discuss the main objectives and importance of Trial Balance.
VcnQ> Ho$ _w»` CÔoí` VWm _hËd H$s {ddoMZm H$s{O`oŸ&
OR
Discuss the importance of Trial Balance. / VcnQ> Ho$ _hËd H$s MMm© H$s{OEŸ& 73

LIMITATIONS OF TRIAL BALANCE OR ERRORS NOT DISCLOSED BY TRIAL

BALANCE / Q´>m¶b ~oboÝg H$s gr‘m¶| AWdm Q´>m¶b ~obÝo g Ûmam àH$Q> Z hmoZo dmbr Aew{Õ¶m±
Q.12. “Is Trial Balance a conclusive proof of the accuracy of the books of account?" If
not, what are the errors which remain undetected inspite of its agreement?
""Š`m VcnQ>, coIm§H$Z nwñVH$m| Ho$ ewÕ hmoZo H$m A§{V_ gmú` h¢?"" `{X Zht Vmo do H$m¡Z-gr
Ìw{Q>`m§ h¢ Omo BgHo$ {_cmZ Ho$ níMmV² ^r AàH$Q> ah OmVr h¢?
OR
Discuss the errors which are (a) disclosed by trial balance and (b) not disclosed
by trial balance. / {ZåZ{c{IV Ìw{Q>`m| H$s ì`m»`m H$s{OE Omo (a) VcnQ> Ûmam àH$Q> hmoVr
h¢ VWm (b) VcnQ> Ûmam àH$Q> Zht hmoVr h¢Ÿ&
OR
“The agreement of Trial Balance is the conclusive proof of the arithmetical accuracy
of the Accounts.” Do you agree with this statement? If not give reasons.
''VcnQ> H$m {_cmZ AH$mCÊQ> H$s A§H$J{UVr` ewÕVm H$m {ZîH$f© à_mU h¡Ÿ&'' Š`m Amn Bg H$WZ
go gh_V h¢? `{X Zht Vmo H$maU ~VmBEŸ& 75

MEANING OF FINAL ACCOUNTS / ApÝV_ ImVo H$m AW©

Q.13. What is the meaning of Final Accounts? Write the objects of preparing Final
Accounts.
ApÝV_ ImVo H$m Š`m AW© h¡? ApÝV_ ImVo ~ZmZo Ho$ CÔoí` {c{I`oŸ&
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OR
Explain the importance and purpose of Final Accounts.
ApÝV_ ImVm| Ho$ _hËd VWm CÔoí` H$m dU©Z H$s{O`oŸ&
OR
Explain the concept of Final Accounts. / ApÝV_ ImVm| H$s AdYmaUm H$m dU©Z H$s{O`oŸ& 83

TRADING, PROFIT & LOSS ACCOUNT / Q´>oqS>J, àm°{\$Q> EÝS> cm°g AH$mD$ÝQ>
Q.14. What is Trading Account? Describe its importance with suitable proforma.
ì`mnma ImVm Š`m h¡? Cn`wº$ àmê$n Ûmam BgHo$ _hËd H$s ì`m»`m H$s{O`oŸ&
OR
What is Profit and Loss Account? Write the objects and significance of preparing
Profit and Loss Account.
cm^-hm{Z ImVm Š`m h¡? cm^-hm{Z ImVm ~ZmZo Ho$ CÔoí` VWm _hËd {c{I`oŸ& 85

BALANCE SHEET/ {MQ²²>R>m

Q.15. What is Balance Sheet? Illustrate the various components of assets and liabilities
NP with the help of a format. / ~¡coÝg erQ> Š`m h¡? EH$ àmê$n H$s ghm`Vm go gån{Îm VWm
Xm{`Ëd Ho$ {d{^Þ Ad`dm| H$m {MÌU H$s{O`oŸ&
OR
Write notes on: “Balance Sheet is not an account but it is a Statement of assets and
liabilities.” / {Q>ßnUr {c{I`o: ''{MQ²>R>m (~¡coÝg erQ>) ImVm Zht h¡ {H$ÝVw `h gån{Îm VWm
Xm{`Ëd H$m {ddaU h¡Ÿ&'' 90

MEANING OF ADJUSTMENT/ g_m`moOZ H$m AW©

Q.16. Explain the meaning of the term 'Adjustment'. Why is it necessary to give effect to
the adjustments while preparing final accounts? / 'g_m`moOZ (ES>OñQ>_Q| >)' eãX Ho$ AW©
H$m dU©Z H$s{O`oŸ& A{ÝV_ ImVo ~ZmVo g_` g_m`moOZ H$mo à^mdr ~ZmZm Š`m| Amdí`H$ h¡?
OR
Discuss with examples any 8 adjustments that will be made at the time of
preparation of final accounts. / {H$Ýht 8 g_m`moOZ H$s CXmhaU Ho$ gmW ì`m»`m H$s{O`o
Omo A§{V_ ImVo ~ZmVo g_` {H$`o Om`|JoŸ&
OR
Show the impact of following adjustments at the time of preparation of Final
Accounts: / ApÝV_ ImVo ~ZmVo g_` {ZåZ{c{IV g_m`moOZ Ho$ à^md ~VmB`o:
(i) Goods destroyed by Fire (Insured and Uninsured)
AmJ go _mc OcZm (~r{_V VWm A~r{_V)
(ii) Goods sold on the basis of Sale or Return/ goëg [aQ>©Z Ho$ AmYma na ~oMm J`m _mc
(iii) Manager’s Commission/ à~§YH$ H$m ~Q²>Q>m (H$_reZ) 92
 Solved Practical Questions .......................................................................... 79
 Review Questions ............................................................................................ 109

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2.3 Incorporation of Company and
Purchase of Business
INCORPORATION OF COMPANY / H$ånZr H$m B§H$m°nm}aoeZ
Q.17. What do you understand by incorporation of a company? Explain the process of
incorporation of company. [2019]
H$ånZr Ho$ B§H$m°nm}aoeZ go Amn ³¶m g‘PVo h¢? H§$nZr Ho$ B§H$m°nm}aoeZ H$s à{H«$¶m H$s g‘PmB¶o& 110

PURCHASE OF BUSINESS / nM}g Am°’$ {~OZog

Q.18. What is purchase of business? What are the objectives of purchasing a business?
nM}g Am°’$ {~OZog ³¶m h¡? {H$gr {~OZog H$mo nM}g H$aZo Ho$ ³¶m CÔoí¶ h¢?
OR
How purchase consideration of a business is determined? Discuss the methods of
calculating purchase consideration of a business.
NP {H$gr {~OZog H$m H«$¶ ‘yë¶ {H$g àH$ma {ZYm©[aV {H$¶m OmVm h¡? {~OZog Ho$ H«$¶ ‘yë¶ H$m
Ho$볶wboeZ H$aZo H$s ‘oWS>²g H$s ì¶m»¶m H$s{OE& 114
TREATMENT OF CAPITAL RESERVE AND GOODWILL
H¡${nQ>c [aOd© VWm JwS>{dc H$m CnMma
Q.19. Explain the treatment for the difference amount of the consideration from the
value of the net asset acquired.
E³dm¶S>© ZoQ> AgoQ> Ho$ ‘yë¶ go H§${gS>aoeZ H$s A§Va am{e Ho$ {cE Q´>rQ>‘|Q> g‘PmB¶o& 117

 Solved Practical Questions .......................................................................... 121

 Review Questions ............................................................................................ 127

UNIT 3
3.1 Analysis of Financial Statements
CONCEPT OF FINANCIAL STATEMENTS
’$mBZopÝe¶b ñQ>oQ>‘oÝQ²>g H$s AdYmaUm
Q.20. Explain the meaning of financial statements and state their nature.
’$m¶Z|{e¶c ñQ>oQ>‘|Q> H$m AW© g‘PmB¶o VWm CZH$s àH¥${V ~VmB¶o&
OR
What do you understand by the analysis and interpretation of financial statement?
What are the objectives of such analysis? / ’$m¶Z|{e¶c ñQ>oQ>‘|Q> Ho$ {dícofU VWm ì¶m»¶m
go Amn ³¶m g‘PVo h¢? Bg {dícofU Ho$ CÔoí¶ ³¶m h¢? 129

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NEED FOR ANALYSIS OF FINANCIAL STATEMENTS
’$mBZopÝe¶b ñQ>oQ>‘oÝQ²>g Ho$ {díbofU H$s Amdí¶H$Vm
Q.21. What is a Balance Sheet? Which aspects of a balance sheet are analysed by its users
and why? Explain. / ~¡b|g erQ> ³¶m h¡? ~¡b|g erQ> Ho$ {H$Z nhbwAm| H$m BgHo$ ¶yOg© Ûmam
{díbofU {H$¶m OmVm h¡ VWm ³¶m|? g‘PmB¶o& [2009]
OR
What are the common forms of financial statements usually submitted in India by
the business concerns? Write their significance and limitations.
’$m¶Z|{e¶b ñQ>oQ>‘|Q²>g Ho$ gm‘mݶ àH$ma ³¶m h¢ {OÝh| gm‘mݶV… ^maV ‘| ì¶mnma g§ñWmAm| Ûmam
O‘m {H$¶m OmVm h¡? CZHo$ ‘hÎd VWm gr‘mE§ {b{IE& 135
TYPES AND TOOLS OF FINANCIAL ANALYSIS
’$m¶Z|{e¶b EZm{b{gg Ho$ Q>mBßg Ed§ Qy>ëg
Q.22. What is trend analysis? How it is made? Explain.
Q´>oS²>g EZm{b{gg ³¶m h¡? ¶h H¡$go {H$¶m OmVm h¡? g‘PmB¶o& [2015]
NP OR
What do you understand by analysis and interpretation of financial statements?
Explain its various techniques.
’$m¶Z|{e¶b ñQ>oQ>‘|Q> Ho$ EZm{b{gg Ed§ BÝQ>a{àQ>oeZ go Amn ³¶m g‘PVo h¢? BgH$s {d{^ÝZ
Q>op³Z³g H$m dU©Z H$s{OE& [2014]
OR
In the light of analysis of financial statement, discuss the following:
’$m¶Z|{e¶b ñQ>oQ>‘|Q> Ho$ g§X^© ‘| {ZåZ{b{IV H$s ì¶m»¶m H$s{OE…
(i) Common size statement / H$m°‘Z gmBO ñQ>oQ>‘|Q>
(ii) Trend analysis / Q´>|S> EZm{b{gg [2009]
OR
What are the different methods used for the analysis and interpretation of finan-
cial statements? / ’$m¶Z|{e¶b ñQ>oQ>‘|Q²>g Ho$ {díbofU VWm ì¶m»¶m Ho$ {bE Cn¶moJ H$s OmZo
dmbr {d{^ÝZ {d{Y¶m§ ³¶m h¢? 141
 Solved Practical Questions .......................................................................... 148
 Review Questions ............................................................................................ 152

3.2 Ratio Analysis

MEANING AND NATURE OF RATIO ANALYSIS
aoemo EZm{b{gg H$m AW© Ed§ àH¥${V
Q.23. What do you mean by Ratio Analysis? Discuss the nature and modes of expression
of ratios. / aoemo EZm{b{gg go AmnH$m ³¶m Ame¶ h¡? aoemo H$s A{^ì¶p³V H$s àH¥${V VWm àH$mam|
H$s ì¶m»¶m H$s{OE&
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OR
Explain briefly the different methods of Ratio Analysis with suitable example.
aoemo EZm{b{gg H$s {d{^ÝZ {d{Y¶m| H$m Cn¶w³V CXmhaU g{hV g§{jßV dU©Z H$s{OE&
OR
Explain the various bases of judging appropriateness of various ratios. Which one
is the best from the point of view of management? / {d{^ÝZ aoemo Ho$ Am¡{M˶ H$m AZw‘mZ
bJmZo Ho$ {d{^ÝZ AmYma g‘PmB¶o& ‘¡ZoO‘|Q> Ho$ Ñ{ï>H$moU go g~go CÎm‘ H$m¡Z h¡?
OR
"Ratios are the symptoms of health of an organization like the blood pressure, the
pulse or the temperature of an individual". Explain. Also state and explain the
fundamental ratios and their uses.
''aoemo EH$ Am°J}ZmBOoeZ Ho$ ñdmñ϶ Ho$ bjU h¢ O¡go EH$ ì¶p³V H$m ãbS> àoea, nëg VWm
Q>oånaoMa&'' g‘PmB¶o& ‘yb^yV aoemo VWm CZHo$ ¶yOg© ~VmB¶o VWm g‘PmB¶o& 153
SIGNIFICANCE OR IMPORTANCE OF RATIO ANALYSIS
aoemo EZm{b{gg H$m ‘hÎd ¶m {Z{hVmW©
NP
Q.24. “Ratio analysis is a tool to examine the health of business with a view to make
financial result more intelligible.” Explain. / ''aoemo EZm{b{gg ’$m¶Z|{e¶b n[aUm‘m| H$mo
A{YH$ B§Q>o{b{O~b ~ZmZo Ho$ {dMma go ì¶mnma Ho$ ñdmñ϶ H$m narjU H$aZo H$m EH$ gmYZ h¡&''
g‘PmB¶o& [2011]
OR
Explain the various uses of Ratio Analysis. / aoemo EZm{b{gg Ho$ {d{^ÝZ Cn¶moJ g‘PmB¶o&
OR
Discuss the significance of Ratio Analysis in the context of Management Account-
ing. / ‘¡ZoO‘|Q> AH$mC§qQ>J Ho$ n[aàoú¶ ‘| aoemo EZm{b{gg Ho$ ‘hÎd H$s ì¶m»¶m H$s{OE&
OR
What do you understand by 'Ratio Analysis'? What is its significance in the context
of Management Accounting? / 'aoemo EZm{b{gg' go Amn ³¶m g‘PVo h¢? ‘¡ZoO‘|Q> AH$mC§qQ>J
Ho$ n[aàoú¶ ‘| BgH$m ³¶m ‘hÎd h¡?
OR
"The accounting ratios are very important for interpretation as they give valuable
and very useful information about the business, its profitability, ability to honour
its monetary commitments, working efficiency and so on." Mention the signifi-
cance of ratio analysis while interpreting the financial statements. / ''AH$mC§qQ>J aoemo
ì¶m»¶m Ho$ {bE ~hþV ‘hÎdnyU© h¢ ³¶m|{H$ do ì¶mnma, BgH$s bm^Xm¶H$Vm, BgH$s ‘m¡{ÐH$ à{V~ÕVm
H$m gå‘mZ H$aZo H$s ¶mo½¶Vm, H$m¶© Hw$ebVm B˶m{X Ho$ ~mao ‘| ‘yë¶dmZ VWm Cn¶moJr gyMZm XoVo
h¢&'' ’$m¶Z|{e¶b ñQ>oQ>‘|Q>²g H$s ì¶m»¶m H$aVo g‘¶ aoemo EZm{b{gg H$m ‘hÎd ~VmB¶o&
OR
What is the importance of Ratio Analysis? Narrate briefly liquidity ratios.
aoemo EZm{b{gg H$m ³¶m ‘hÎd h¡? {bp³d{S>Q>r aoemo H$m g§{jßV dU©Z H$s{OE& 156

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LIMITATIONS OF RATIO ANALYSIS/ AZwnmV {díbofU H$s gr_mE±
Q.25. Discuss the major limitations of Ratio Analysis.
AZwnmV {dícofU H$s _w»` gr_mAm| H$s ì`m»`m H$s{OEŸ&
OR
"Accounting ratios are mere guides and complete reliance on them in decision-
making is suicidal." Elucidate. / ""coIm§H$Z AZwnmV _mÌ nW- àXe©H$ hmoVo h¢ VWm {ZU©`Z
hoVw CZ na nyar Vah {Z^©aVm KmVH$ hmo gH$Vr h¡Ÿ&'' ì`m»`m H$s{OEŸ&
OR
"Ratio analysis is only a technique for making judgements and not a substitute for
judgements". Examine. / ""AZwnmV {dícofU {ZU©` H$aZo H$s _mÌ VH$ZrH$ h¡ {H$ÝVw `h
{ZU©`Z H$m {dH$ën Zht hmo gH$VmŸ&'' Bg H$WZ H$m narjU H$s{OEŸ& 160
LIQUIDITY RATIOS OR ANALYSIS OF SHORT TERM FINANCIAL POSITION
{bp³d{S>Q>r aoemo ¶m Aënmd{Y ’$m¶Z|{e¶b nmo[OeZ H$m {díbofU
Q.26. Explain the following: Window dressing.
NP
{ZåZ{b{IV H$m dU©Z H$s{OE… qdS>mo S´>oqgJ& [2011]
OR
Explain the following financial indicators in analyzing a balance sheet: (in brief)
window dressing. / EH$ ~¡b|g erQ> H$m {díbofU H$aZo ‘| {ZåZ{b{IV ’$m¶Z|{e¶b B§{S>Ho$Q>g©
H$mo g‘PmB¶o… (g§jon ‘|) qdS>mo S´>oqgJ& [2009]
OR
What do you mean by liquidity of a firm? How can the liquidity of a firm be
assessed? / EH$ g§ñWm H$s {bp³d{S>Q>r go AmnH$m ³¶m Ame¶ h¡? EH$ g§ñWm H$s {bp³d{S>Q>r H$m
AmH$bZ H¡$go {H$¶m Om gH$Vm h¡?
OR
'Is it possible for a firm to have a high current ratio and still find difficulties in
paying its current debt?’ Explain with illustration.
'³¶m EH$ ’$‘© Ho$ {bE EH$ CÀM H$a§Q> aoemo hmoZm VWm {’$a ^r BgHo$ H$a§Q> S>oãQ²>g Ho$ ^wJVmZ ‘|
H${R>ZmB© nmZm g§^d h¡?' CXmhaU g{hV g‘PmB¶o& 163
ACTIVITY RATIOS OR TURNOVER RATIOS OR MEASUREMENT OF EFFICIENCY
Ep³Q>{dQ>r aoemo ¶m Q>Z©Amoda aoemo ¶m Hw$ebVm H$m ‘mnZ
Q.27. Explain the following financial indicator in analyzing a balance sheet: (in brief)
stock velocity. / EH$ ~¡b|g erQ> Ho$ {díbofU ‘| {ZåZ{b{IV ’$m¶Z|{e¶b B§{S>Ho$Q>a H$mo g‘PmB¶o…
(g§jon ‘|) ñQ>m°H$ dobmo{gQ>r& [2009]
OR
Describe the ratios used to measure the efficiency of an organization.
EH$ Am°J}ZmBOoeZ H$s Hw$ebVm H$m ‘mnZ H$aZo Ho$ {bE Cn¶moJ {H$¶o OmZo dmbo aoemo H$m dU©Z
H$s{OE& 172

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PROFITABILITY RATIOS / àm°{’$Q>o{~{bQ>r aoemo
Q.28. Explain the ‘Price-Earning Ratio’. / 'àmBg-A{ZªJ aoemo' g‘PmB¶o& [2011]
OR
What ratios would you use to measure profitability of a concern? Give formulae
with suitable illustration. / EH$ g§ñWm H$s bm^Xm¶H$Vm H$m ‘mnZ H$aZo Ho$ {bE Amn ³¶m aoemo
Cn¶moJ H$a|Jo? Cn¶w³V CXmhaU g{hV gyÌ Xr{OE& 186

Q.29. Explain Proprietary Ratio. / àmoàm¶Q>ar aoemo g‘PmB¶o& 195

SOLVENCY RATIOS / gm°ëd|gr aoemo

Q.30. Explain the ratios you would use to assess the solvency of a firm.
aoemo H$m dU©Z H$s{OE {Ogo Amn EH$ ’$‘© H$s gm°ëd|gr H$m AmH$bZ H$aZo Ho$ {bE Cn¶moJ H$a|Jo& 196

 Solved Practical Questions .......................................................................... 167

 Review Questions ............................................................................................ 216
NP
UNIT 4
4.1 Introduction to Cost Accounting
and Cost Sheet
NATURE, SCOPE AND ADVANTAGES OF COST ACCOUNTING
H$m°ñQ> AH$mC§qQ>J H$s àH¥${V, joÌ VWm bm^
Q.31. "Cost Accounting is an aid to management." Discuss in detail in support of this
statement and explain briefly the managerial uses of cost accounting.
''H$m°ñQ> AH$mC§qQ>J ‘¡ZoO‘|Q> Ho$ {bE EH$ ghm¶Vm h¡&'' Bg H$WZ Ho$ g‘W©Z ‘| {dñVma go ì¶m»¶m
H$s{OE VWm H$m°ñQ> AH$mC§qQ>J Ho$ ‘¡ZoO[a¶b Cn¶moJ H$m g§{jßV dU©Z H$s{OE&
OR
Define Cost Accounting. Write the nature and scope of Cost Accounting.
H$m°ñQ> AH$mC§qQ>J H$mo n[a^m{fV H$s{OE& H$m°ñQ> AH$mC§qQ>J H$s àH¥${V VWm joÌ {b{IE& 217
OBJECTIVES AND LIMITATIONS OF COST ACCOUNTING
H$m°ñQ> AH$mC§qQ>J Ho$ CÔoí¶ VWm gr‘mE§
Q.32. What is Cost Accounting? Discuss briefly its objectives and advantages.
H$m°ñQ> AH$mC§qQ>J ³¶m h¡? BgHo$ CÔoí¶m| VWm bm^m| H$s g§{já ì¶m»¶m H$s{OE&
OR
What are the main objectives of cost accounting? Write its limitations also.
H$m°ñQ> AH$mC§qQ>J Ho$ ‘w»¶ CÔoí¶ ³¶m h¡? BgH$s gr‘mE§ ^r {b{IE& 223

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CLASSIFICATION OF COSTS / bmJVm| H$m dJuH$aU
Q.33. Define and illustrate the following concepts of cost:
bmJV H$s {ZåZ{b{IV AdYmaUmAm| H$mo n[a^m{fV H$s{OE VWm dU©Z H$s{OE…
(i) Direct and indirect cost / S>m¶ao³Q> VWm BZS>m¶ao³Q> H$m°ñQ>
(ii) Product and period cost / n«moS>³Q> VWm nr[a¶S> H$m°ñQ>
(iii) Controllable and non-controllable cost / H§$Q´>mobo~b VWm Zm°Z-H§$Q´>mobo~b H$m°ñQ>
(iv) Joint cost and common cost / Om°B§Q> H$m°ñQ> VWm H$m°‘Z H$m°ñQ> 227

ELEMENTS OF COSTS / H$m°ñQ²>g Ho$ KQ>H$

Q.34. Write note on: Elements of Cost / E{b‘oÝQ²>g Am°’$ H$m°ñQ> na {Q>ßnUr {b{I¶o& [2019]
OR
Give the classification of costs and their importance in decision-making.
bmJVm| H$m dJuH$aU VWm {ZU©¶ H$aZo ‘| CZH$m ‘hÎd ~VmB¶o& 235

MEANING AND FEATURES OF UNIT COSTING / ¶y{ZQ> H$m°pñQ>¨J H$m AW© VWm {deofVmE§
NP
Q.35. What is unit costing? What are its main features?
¶y{ZQ> H$m°pñQ>¨J ³¶m h¡? BgH$s ‘w»¶ {deofVmE§ ³¶m h¢? 240

 Solved Practical Questions .......................................................................... 245

 Review Questions ............................................................................................ 252

4.2 Marginal Costing

MARGINAL COST AND MARGINAL COSTING
‘m{O©Zc H$m°ñQ> VWm ‘m{O©Zc H$m°pñQ>¨J
Q.36. Write a short note on Marginal Costing.
‘m{O©Zc H$m°pñQ>¨J na EH$ g§{já {Q>ßnUr {c{IE& [2019]
OR
Explain the meaning of Marginal Cost and Marginal Costing. Discuss its usefulness
and limitations. / ‘m{O©Zc H$m°ñQ> VWm ‘m{O©Zc H$m°pñQ>¨J H$m AW© g‘PmB¶o& BgH$s Cn¶mo{JVm
VWm gr‘mAm| H$s {ddoMZm H$s{OE& 253

LIMITATIONS OF MARGINAL COSTING / ‘m{O©Zc H$m°pñQ>¨J H$s gr‘mE±

Q.37. What are the limitations of Marginal Costing?
‘m{O©Zc H$m°pñQ>¨J H$s gr‘mE± ³¶m h¢? [2009] 268
 Solved Practical Questions .......................................................................... 258
 Review Questions ............................................................................................ 269

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4.3 Cost-Volume-Profit (CVP) Analysis
CVP ANALYSIS OR PROFIT VOLUME ANALYSIS
CVP EZm{b{gg ¶m àm°{’$Q> dm°ë¶y‘ EZm{b{gg
Q.38. What do you understand by Cost-Volume-Profit relationship? Why is this
relationship important in business management?
H$m°ñQ>-dm°ë¶y‘-àm°{’$Q> g§~§Y go Amn ³¶m g‘PVo h¢? {~OZog ‘¡ZoO‘|Q> ‘| ¶h g§~§Y ³¶m|
‘hÎdnyU© h¡?
OR
"Cost-Volume-Profit' relationship provides the management with a simplified
framework for an organization which is thinking on a number of its problems."
Discuss.
'H$m°ñQ>-dm°ë¶y‘-àm°{’$Q>' g§~§Y ‘¡ZoO‘|Q> H$mo Am°J}ZmBOoeZ Ho$ {bE gabrH¥$V T>m§Mm àXmZ H$aVm
h¡ Omo BgH$s H$B© g‘ñ¶mAm| na {dMma H$a ahm h¡& ì¶m»¶m H$s{OE& 270
NP BREAK-EVEN ANALYSIS / ~«oH$-B©dZ EZm{b{gg
Q.39. What is Break-even Chart? Show a chart by taking imaginary data?
~«oH$-B©dZ MmQ>© ³¶m h¡? H$mën{ZH$ S>mQ>m boH$a EH$ MmQ>© àX{e©V H$s{OE& [2011]
OR
Explain importance of Break-even Analysis in Management Accounting.
‘¡ZoO‘|Q> AH$mC§qQ>J ‘| ~«oH$-B©dZ EZm{b{gg H$m ‘hÎd g‘PmB¶o& [2009]
OR
What is Break-even Analysis ? Discuss its assumptions and uses.
~«oH$-B©dZ EZm{b{gg ³¶m h¡? BgH$s YmaUm VWm Cn¶moJ H$s {ddoMZm H$s{OE& 272

 Solved Practical Questions .......................................................................... 275

 Review Questions ............................................................................................ 286

4.4 Concept of Variance

(Material and Labour)
CONCEPT OF VARIANCE (MATERIAL AND LABOUR)
do[aE§g H$s AdYmaUm (gm‘J«r VWm l‘)
Q.40. "Variance analysis is the very basis of successful implementation of standard
costing system." Elaborate and explain briefly the various types of labour variances.
""ñQ>¡ÝS>S>© H$m°pñQ>¨J {gñQ>_ Ho$ Bpåßb_|Q>oeZ Ho$ {bE do[aEÝg EZm{b{gg ~hþV Cn`moJr AmYma h¡Ÿ&""
g_PmBE Am¡a bo~a do[aEÝg Ho$ àH$mam| H$mo g§{jßV _| g_PmBEŸ& [2016]

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OR
Explain the importance of “Variance analysis” in management accounting.
‘¡ZoO‘oÝQ> AH$mCpÝQ>¨J ‘|, ''d¡[aEÝg EZm{b{gg'' Ho$ ‘hÎd H$s ì¶m»¶m H$s{OE& [2009]
OR
Write a short note on concept of variance.
do[aEÝg Ho$ H$ÝgoßQ> na g§{jßV {Q>ßnUr {b{IEŸ& [2007] 287

 Solved Practical Questions ....................................................................... 292

 Review Questions ........................................................................................ 314

UNIT 5
5.1 Inflation, Human Resource and
Responsibility Accounting
NPMEANING & SIGNIFICANCE OF PRICE LEVEL OR INFLATION ACCOUNTING
àmBg codc `m BÝâcoeZ AH$mCpÝQ>¨J H$m AW© Ed§ _hËd
Q.41. What is Inflation Accounting? Why this accounting is important?
BÝâcoeZ AH$mCpÝQ>¨J Š`m h¡? `h AH$mCpÝQ>¨J _hËdnyU© Š`m| h¢? [2011]
OR
What are the limitations of Historical Cost Accounting? How are they overcome
by price-level accounting?
Eo{Vhm{gH$ H$m°ñQ> AH$mCpÝQ>¨J H$s Š`m gr_mE± h¢? `o àmBg codc AH$mCpÝQ>¨J go nam^yV H¡$go h¡? 315
MEANING AND IMPORTANCE OF HUMAN RESOURCE ACCOUNTING
øy_Z [agmog© AH$mCpÝQ>¨J H$m AW© Ed§ _hËd
Q.42. Discuss the need for human resource accounting.
h²`y_Z [agmog© AH$mCpÝQ>¨J H$s Amdí¶H$VmAm| H$s {ddoMZm H$s{OE& [2015]
OR
Write a note on: Human Resource Accounting. [2012]
h²`y_Z [agmog© AH$mCpÝQ>¨J na g§{jßV {Q>ßnUr {c{I`oŸ&
OR
Discuss the importance of Human Resource Accounting.
h²`y_Z [agmog© AH$mCpÝQ>¨J Ho$ _hËdm| H$s MMm© H$s{O`o& [2011] 320
MEANING AND SIGNIFICANCE OF RESPONSIBILITY ACCOUNTING
{añnm°pÝg{~{bQ>r AH$mC§qQ>J H$m AW© VWm ‘hÎd
Q.43. What is Responsibility Accounting? Write its significance.
{añnm°pÝg{~{bQ>r AH$mC§qQ>J ³¶m h¡? BgH$m ‘hÎd {b{IE&
OR
BRILLIANT’S / Accounting for Managers/ 16
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Explain the concept and features of responsibility Accounting.
{añnm°pÝg{~{bQ>r AH$mC§qQ>J H$s AdYmaUm VWm {deofVmAm| H$m dU©Z H$s{OE& 325
PROCESS OF APPLYING RESPONSIBILITY ACCOUNTING
{añnm°pÝg{~{bQ>r AH$mC§qQ>J bmJy H$aZo H$s à{H«$¶m
Q.44. What are cost and revenue centre in responsibility accounting?
[añnm°pÝg[~{bQ>r AH$mCpÝQ>¨J ‘| H$m°ñQ> Ed§ aodoݶy goÝQ>a ³¶m h¢? [2015]
OR
Discuss the process of applying responsibility accounting in an organization.
EH$ Am°J}ZmBOoeZ ‘| {añnm°pÝg{~{bQ>r AH$mC§qQ>J bmJy H$aZo H$s à{H«$¶m H$s {ddoMZm H$s{OE&
[2011] 329
 Review Questions ............................................................................................ 332

5.2 Budgeting and Budgetary Control

MEANING AND OBJECTIVES OF BUDGETARY CONTROL
NP ~OQ>ar H§$Q´>moc H$m AW© Ed§ CÔoí`
Q.45. Explain the concept of Budget and Budgetary Control. [2015]
~OQ> VWm ~OQ>ar H§$Q´>mob H$s AdYmaUm g‘PmB¶o&
OR
What is Budgeting? Mention the objectives of Budgetary Control.
~OqQ>J Š`m h¡? ~OQ>ar H$ÝQ´>moc Ho$ CÔoí`m| H$m dU©Z H$s{OEŸ& 333
INSTALLATION OF BUDGETARY CONTROL SYSTEM
~OQ>ar H§$Q´>mob {gñQ>‘ H$s ñWmnZm
Q.46. Discuss the process of establishing a budgetary control system in an organiza-
tion. [2011]
EH$ Am°J}ZmBOoeZ ‘| EH$ ~OQ>ar H§$Q´>mob {gñQ>‘ ñWm{nV H$aZo H$s à{H«$¶m H$s ì¶m»¶m H$s{OE&
OR
Write in brief the steps taken for installation of an effective system of budgetary
control in an organization. / EH$ Am°J}ZmBOoeZ ‘| ~OQ>ar H§$Q´>mob Ho$ EH$ à^mdr {gñQ>‘
H$s ñWmnZm Ho$ {bE CR>m¶o OmZo dmbo H$X‘ g§jon ‘| {b{IE& 336

TYPES OF CLASSIFICATION OF BUDGET/~OQ> Ho$ dJuH$aU Ho$ àH$ma

Q.47. What are the type of Budget? / ~OQ> Ho$ àH$ma Š`m h¢? [2012]
OR
What do you understand by 'Budgeting'? Mention the types of budgets that the
management of a big industrial concern would normally prepare.
'~OqQ>J' go Amn Š`m g_PVo h¢? CZ ~OQ>m| Ho$ àH$ma ~VmB`o Omo gm_mÝ`V… EH$ ~‹S>r Am¡Úmo{JH$
g§ñWm Ho$ _¡ZoO_oÝQ> Ûmam ~Zm`o OmVo h¢Ÿ& 340

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SIGNIFICANCE AND LIMITATIONS OF BUDGETARY CONTROL
~OQ>ar H§$Q´>moc H$m _hËd Ed§ gr_mE±
Q.48. Describe the significance and limitations of Budgetary Control Techniques.
~OQ>ar H$ÝQ´>moc Q>opŠZŠg Ho$ _hËd Ed§ gr_mAm| H$m dU©Z H$s{OEŸ&
OR
"Budgeting is an important technique but it must be used carefully." Comment.
''~OqQ>J EH$ _hËdnyU© VH$ZrH$ h¡ {H$ÝVw BgH$m Cn`moJ gmdYmZrnyd©H$ hmoZm Mm{hEŸ&'' {Q>ßnUr
H$s{O`oŸ& 354

 Solved Practical Questions .......................................................................... 345

 Review Questions ............................................................................................ 358

5.3 Introduction to Tally

BASICS OF TALLY / Q>¡br Ho$ ‘yb VÎd
NP
Q.49. Discuss the main features of Tally version 7.3.
Q>¡br de©Z 7.3 H$s ‘w»¶ {deofVmAm| H$s {ddoMZm H$s{OE& [2015]
OR
Give a brief introduction to Tally. / Q>¡br H$m EH$ g§{já n[aM¶ Xr{OE& 359

INTRODUCTION TO TALLY SCREEN / Q>¡br ñH«$sZ H$m n[aM¶

Q.50. Give a brief introduction of Tally screen when you start it for the first time.
Q>¡br ñH«$sZ H$m g§{já n[aM¶ Xr{OE O~ Amn Bgo nhbr ~ma àma§^ H$aVo h¢&
OR
Describe various parts of "Gateway of Tally" Screen.
''JoQ>do Am°’$ Q>¡br'' ñH«$sZ Ho$ {d{^ÝZ ^mJm| H$m dU©Z H$s{OE& 365

ACCOUNTING APPLICATIONS / AH$mC§qQ>J EpßbHo$e§g

Q.51. What do you understand by Tally? Explain its accounting application.
Q>¡br go Amn ³¶m g‘PVo h¢? BgHo$ AH$mCpÝQ>¨J EpßbHo$eZ H$s ì¶m»¶m H$s{O¶o& [2019]
OR
Explain the creation of master accounts in Tally.
Q>¡br ‘| ‘mñQ>a AH$mC§Q²>g H$m {Z‘m©U g‘PmB¶o& 370

 Review Questions ............................................................................................ 383

 Solved Question Papers

 T-20 Questions

BRILLIANT’S / Accounting for Managers/ 18