IGNOU MMPC-004 December 2022 Previous Year Question Paper

Q1.From the following balances , prepare Trading A/c and Profit & L oss A/c and Balance Sheet of M/s. Calcutta Trading for the year ending 31st March, 2022 : Debit ` Credit ` Purchase 36,000 Capital 60,000 Sundry Debtors 30,000 Bills Payable 30,000 Sales Expenses 1,400 Sundry Creditors 20,000 Insurance 1,200 Loans 20,000 Cash in hand 5,000 Return Outward 2,000 Cash at Bank 14,000 Sales 60,000 Machinery 20,000 Building 32,000 Investment 16,000 Bills Receivable 6,000 Wages 10,000 Carriage on Purchases 2,000 Rent and Rates 600 Opening Stock 14,000 Discount given 600 Bad Debts 1,000 Salaries 2,200

Q2.92,000 1,92,000 Make the following adjustments :

(a) Closing Stock ` 16,000

(b) Interest on Capital @ 5% per annum

(c) Charge Depreciation @ 10% on Machinery and 5% on Building

(d) Outstanding Salary ` 400

(e) Prepaid Insurance ` 100

(f) Create reserve of 5% on s undry debtors for bad and doubtful debts

Q3.How are the business activities classified for the purpose of cash flow classification ? Explain the indirect method of prepration of cash flow statement.

Q4.What do you understand by cost ? Explain the classification of costs based upon the variability of operations.

Q5.What is Activity Based Costing (ABC) ? Discuss the merits and demerits of this system of costing. Explain the application process of this system of costing.

Q6.What is Cost -Volume-Profit (CVP) A nalysis ?

Q7.Explain the concept of Profit Graph and discuss the assumptions on which construction of profit graph is based.

Q8.What is a budget ? Discuss the concept of budgetary control and explain the process of installing a budgetary control system. [ 4 ]

Q9.What is an Annual Repo rt of a company ?

Q10.Explain the various heads in which non-audited information is provided in annual report and discuss the significance of such information.

Q11.What is Human Resource Accounting ? Discuss the major developments that have led to an increasing focus on HR accountability.