IGNOU MMPC-004 June 2023 Previous Year Question Paper

Q1.From th e following Trial Balance of M/s. Bombay Trading, prepare a Trading and Profit & Loss A/c for the year ending 31st March, 2022 and also Balance Sheet as on that date : Particulars Dr. Amount Cr. Amount Capital 1,80,000 Drawings 13,000 Land and Building 52,000 Plant and Machinery 28,000 Furniture and Fixtures 3,000 Carriage on purchases 8,500 Wages 43,000 Salaries 9,400 Bad debts reserves as on 1-4-2021 5,000 Sales 1,90,000 Sales return 3,600 Bank charges 3,000 Taxes 1,700 Discount received 240 Purchase 80,000 Bills Receivable 3,000 Debtors 75,600 Creditors 24,500 Stock (1-4-2021) 50,000 Cash in hand 28,000 Bank loan 2,060 Total 4,01,800 4,01,800 Make the following adjustments :

(i) Closing stock on 31-3-2022 ` 16,000.

(ii) Provide 10% depreciation on all fixed assets.

(iii) Increase bad debts reserve to ` 8,000.

(iv) Outstanding salaries ` 600.

(v) Prepaid taxes ` 100.

Q2.What do you understand by cash and cash equivalents ? Explain the basic structure of Cash Flow Statement and explain the Direct Method of preparation of Cash Flow Statement.

Q3.Explain the concept of Absorption costing and Marginal costing. Discuss the differences between these two technique s and explain how marginal costing is an improvement over absorption costing. Also discuss the utility and limitation of marginal costing. [ 4 ]

Q4.Write short notes on the following :

(i) Margin of Safety

(ii) CVP Analysis

(iii) Performance Budgeting

(iv) Current Liabilities

Q5.What do you understand by budgeting ? Briefly explain the various types of budget s. Discuss the significance of budgetary control.

Q6.What is Variance ? Why is variance computed and how can it be controlled ? Explain the process for calculation of Direct Material Cost Variance (DMCV) and list some possible reasons for Direct Material Price Variance and Direct Material Usage Variance.

Q7.Discuss the importance and significance of information contained in Notes to the Annual Accounts as given in the Annual Report of the company.

Q8.What is Forensic Accounting ? Explain the concept of Fraud Triangle and discuss the application of Forensic Accounting. MMPC–004 11,830