IGNOU MMPC-004 June 2025 Previous Year Question Paper

Q1.What is a Journal ? Discuss the advantage s of using Journal and describe the process of Journalizing. How are you going to record the following transactions in Journal ?

(a) Trade Discount [ 2 ] MMPC–004

(b) Goods distributed as free sample

(c) Depreciation charged on fixed assets

(d) Bad debts recovered

Q2.Write short notes on any four of the following :

(a) Accrual concept

(b) Materiality concept

(c) Cost of goods sold

(d) Depreciation

(e) Current assets

Q3.What do you understand by cost ? Explain its different elements. How is cost classified ?

Q4.Explain how total cost is calculated.

Q5.What is a Budget ? Discuss the significance of budgetary control and describe the process involved in installing budgetary control system. Explain the control ratios used in budgetary control. [ 3 ]

Q6.Explain the following :

(a) Altman’s Z score

(b) Du Pont Analysis

Q7.What is an Annual Report ? Briefly desc ribe the information contained in financial contents of an Annual Report. Describe the information contained in Notes to the accounts and discuss their significance for the investors.

Q8.What is Human Resource Accounting (HRA) ? Describe how HRA can be us ed as a management decision tool.

Q9.A company has incurred fixed expenses of ` 9,00,000 with sales of ` 30,00,000 and earned a profit of ` 6,00,000 during the first six months. In the next six months it suffered a loss of ` 3,00,000. Calculate :

(i) The Profit/Volume ratio, break -even point and margin of safety for the first six months. [ 4 ] MMPC–004

(ii) Expected sales -volume for the next six months assuming that selling price and fixed expenses remain unchanged during the second half year.

(iii) The break -even point and margin of safety for the whole year.