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DE–232 11 DISTANCE EDUCATION bbm DEGREE EXAMINATION_ DECEMBER 2010

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					 DE–232                                                        11


                               DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                          BUSINESS COMMUNICATION

Time : Three hours                        Maximum : 100 marks

                             PART A — (5  8 = 40 marks)

                Answer any FIVE questions in about 200 words each.

                            All questions carry equal marks.

1. Explain the importance of correspondence in business organisations.

2. Explain the points to be kept in mind while drafting minutes.

3. Describe the content of an executive report.

4. Draft a short speech on inflation.

5. You have purchased a demand draft from Indian Bank Main Branch Madurai
     and you have lost it. On intimation to the Bank for a duplicate draft, they
     asked to submit an indemnity bond. Please draft it.

6. What are the essentials of a Good report?

7. Present your Bio-data.

8. Write an essay on privatisation of banks in India.

                            PART B — (4  15 = 60 marks)

               Answer any FOUR questions in about 400 words each.

                            All questions carry equal marks.

9. Elaborate the essentials of a business letter.

10. As a book publisher draft a letter answering trade enquiry of a book seller.

11. Draft a sales letter to promote the sales of a new model of a computer.



                                           1            DE–232
12. Draft a letter on behalf of an Insurance company accepting a policy holder's
     claim over the fire accident occurred in his factory.

13. Draft a sale agreement.

14. Draft an application for the post of ‘Computer operator’ in a big business firm.

15. Explain the role of banking industry in India's economic development.



                                     –––––––––––
 DE–233                                                      12


                               DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                           PRINCIPLES OF ECONOMICS

Time : Three hours                         Maximum : 100 marks

                              PART A — (5  8 = 40 marks)

               Answer any FIVE questions in about 200 words each.

                          All questions carry equal marks.

1. Explain the concepts of GDP, GNP, NNP and Per Capita Income.
2. State the various factors affecting the growth of population
3. State the law of demand and explain the various factors affecting demand.
4. Explain consumer's equilibrium using indifference curve.
5. Distinguish between Internal and External economics.
6. Differentiate Duopoly from oligopoly.
7. Why does average cost curve always 'U' shaped?
8. Explain the marginal productivity theory of profit.

                           PART B — (4  15 = 60 marks)

               Answer any FOUR questions in about 400 words each.

                          All questions carry equal marks.
9. Explain the Malthusian Theory of Population.
10. What is elasticity of demand? Explain its various types.


                                           2             DE–232
11. Explain how price is determined under Monopoly.

12. Explain the Concept of Rent. 'Rent is surplus over transfer earnings' – Discuss.

13. Discuss the advantages and limitations of large scale production.

14. State and explain the law of diminishing Returns.

15. Critically discuss Keyne's Liquidity Preference theory of interest.




                                    ——————


 DE–234                                                       13


                              DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                              MONEY AND BANKING

Time : Three hours                        Maximum : 100 marks

                          SECTION A — (5  8 = 40 marks)

                             Answer any FIVE questions.

                           All questions carry equal marks.

                       Each answer should not exceed a page.

1. State the characteristics of money and explain its functions.

2. Describe Inflation and Deflation.

3. Explain the characteristics of under developed money markets.

4. Explain the organisation and structure of banks.

5. Bring out the role of the State Bank of India in Rural Financing.

6. Write a note on monetary policy and discuss any four features of the recent
    monetary policy.

7. Sketch out the organisational structure of the RBI



                                           3            DE–232
8. Discuss the functions of the RBI.

                         SECTION B — (4 × 15 = 60 marks)

                            Answer any FOUR questions.

                          Each question carries 15 marks.

                      Each answer should not exceed 3 pages.

9. Examine the significance of money in a modern economy.

10. Explain the quantity theory of money.

11. Explain the constituents of the money market.

12. Explain the functions of commercial banks.

13. Discuss about the problems and prospects of Indian Private Sector Banks.

14. What is a Central Bank? Discuss its role in a developing economy.

15. Discuss the evolution and organisation of the RBI.



                                  –––––––––––––––
 DE–235                                                      14

                             DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                                 RURAL BANKING

Time : Three hours                       Maximum : 100 marks

                            PART A — (5  8 = 40 marks)

                Answer any FIVE questions in about 200 words each.

                          All questions carry equal marks.

1. Explain the composition of Indian rural economy.
2. Elaborate the functions of co-operative banks.
3. State the objectives of establishing regional rural banks.



                                            4            DE–232
4. Explain the need for extending credit to priority sector.
5. Briefly explain the Bio-gas programme.
6. Explain the features of scavengers rehabilitation programme.
7. What do you mean by technical feasibility of a project? How it is evaluated?
8. Explain the role of the SIDBI in developing small industries.

                            PART B — (4  15 = 60 marks)
               Answer any FOUR questions in about 400 words each.
                           All questions carry equal marks.

9. Bring out the different sources of rural finance in India.

10. Discuss the role of commercial banks in lending agricultural credit.

11. Explain the features of the economic new 20-points programme.

12. How would you evaluate a particular rural development project?

13. Critically evaluate the working of lead bank scheme in a particular district.

14. Discuss the role of the RBI in lending rural credit.

15. Explain the objectives and functions of TAHDCO in rural development.

                                  –––––––––––––––
 DE–236                                                         15


                              DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                             FINANCIAL ACCOUNTING

Time : Three hours                        Maximum : 100 marks

                          SECTION A — (5  8 = 40 marks)

                             Answer any FIVE questions.

                           All questions carry equal marks.

1. What is capital receipt? Give some examples.

2. Explain     the    accounting        treatment          of   (a)   Entrance      fees
    (b) life membership fees


                                           5               DE–232
3. Under what circumstances, the valuation of shares is done?

4. Write a note on dissolution.

5. List down the objectives of single entry system.

6. A and B share profits in the ratio of 3 : 2. C is admitted and the new ratio
    between A, B and C is 2 : 5 : 3. C bring Rs. 3,000 toward good will. Pass journal
    entries.

7. From the following extracts of receipts and payments account and the additional
     information, you are required to calculate the income from subscription for the
     year ending December, 2006 and show them in income and expenditure
     account and the balance sheet of a club.

                           Receipts and payment account

                      For the year ending 31 December, 2006
                     Receipts                           Payment
                To Subscriptions :
                   2005                5,000
                   2006               30,000
                   2007                6,000    41,000

Additional information:
(a)   Subscription outstanding on December, 31 2005 – Rs. 6,000
(b)   Subscription outstanding on December, 31 2006 – Rs. 5,000
(c)   Subscription outstanding on December, 31 2007 – Rs. 6,000

8. According to SJ’s cash book, there was a balance of Rs.3,000 overdrawn on 30th
    June 2002. On investigation you find that
(a)   Cheques drawn amounting to Rs. 5,000 had been presented.
(b)   Cheques Rs. 2,500 entered in the cash book as paid into bank, had not yet been
          cleared
(c)   The payment side of the cash book had been under cast by Rs.700
(d)   A dividend Rs.400 paid direct to the bank had not been recorded in the cash
           book
(e)   Bank charges of Rs.300 entered in the bank statement had not been entered in
          the cash book




                                          6           DE–232
(f)   A Cheque, Rs.500 paid into the bank had been dishonored and shown as such
          by the bank, but no entry of the dishonor had been made in the cash
          book.
(g)   A charge of Rs. 10 had been entered in the bank statement but entered in the
           cash book.
      You are required to prepare Bank Reconciliation Statement after making
          appropriate adjustments in the cash book.

                            SECTION B — (4  15 = 60 marks)

                               Answer any FOUR questions.

                             All questions carry equal marks.

9. Under what circumstances assets and liabilities are revalued? Explain how such
    revaluation is done in a partnership.

10. What do you understand by the following term?
(a)   Del credere commission
(b)   Account sale.
(c)   Joint venture.

11. Explain the factors affecting the value of goodwill.

12. Mr. Eden who keeps his books by single entry gives you the following
     information for the year 2002 :

                                 Summary of Cash Book.
           Dr.                                                             Cr.
                                           Rs.                           Rs.
           To Balance at Bank              4,350   By Eden’s Drawing     7,520
           To Sundry debtors              38,400   By Trade Creditors   27,100
           To Bills Receivable realized   12,000   By Bills Payable      9,300
           To Commission received          1,500   By Wages             12,000
           To Cash sales                   8,600   By Salaries           6,500
           To Balance c/d                  3,350   By Rent & Taxes       4,400
                                                   By Insurance           800
                                                   By Carriage            250
                                                   By Advertising         330
                                          68,200                        68,200
                                                   By balance b/d        3,350


                                            7              DE–232
             Particulars of other assets and liabilities   Jan. 1, 2002   Dec. 31, 2002
             Stock on hand                                      18,700          23,400
             Debtors                                            12,000          14,000
             Creditors                                           9,000           1,500
             Bills receivable                                    4,000           5,000
             Bills payable                                       1,000             200
             Furniture                                             600             600
             Building                                           12,000          12,000

A provision of Rs. 1,450 is required for doubtful debts and depreciation at 5% is to be
     written off on Building and Furniture. Rs. 3,000 is outstanding for wages and
     Rs. 1,200 for salaries. Insurance has been prepaid to the extent of Rs. 250.
     Legal expenses are outstanding to the extent of Rs. 700.
Find out the profit or loss made by Mr. Eden during 2002. Also prepare his balance
     sheet at the end of the year.

13. R & Co. traders had three partners A, B and C who shares profit and losses in
      the proportion of 6 : 4 : 3. The partnership deed provided amongst other thing
      that on retirement or death of a partner the firm would continue in the same
      name and the amount due to the retiring or deceased partner would paid by
      the firm in three installment on the next three success anniversaries of the
      date of the retirement or death. The amount due would be calculated by taking
      into consideration the following.
(a)   The amount of the capital at the end of the year preceding the one in which he
           retires or dies.
(b)   His share of profit in the year of retirements or death the profit being
           calculated prorates over the 12 months of the year.
(c)   His share of the goodwill of the firm, the goodwill being equivalent to two years
           purchase of the average of the profit of the immediate preceding three
           years and of that part the year of his retirement or death during which
           he continued in the firm.
(d)   His drawings to the date of retirement or death.
      A dies on 1st January, 2006, the book are closed on 3lst march every year. The
           profit were
      2002-03      –         Rs.     42,000;     2003-04      –      Rs.     46,500;
           2004-05 – Rs. 48,000; 2005-06 – Rs. 52,250. (Interest allowed on capitals
           Rs. 2,750).
      The capital of each partners on March 31, 2005 was Rs. 20,000. Drawings up to
           A’s                              death                               were:
           A - Rs. 6,200; B - Rs. 7,000; C — Rs. 6,150. Show the account of A for the
           year 2005-06 and the account of executors till the amount due if fully


                                                 8               DE–232
              paid. Assume that the executors excised their rights u/s 37 of the
              Partnership Act.

14. SS Company Ltd was newly formed with an authorized capital of Rs. 5,00,000
     divided into 50,000 equity share of Rs.10 each. The company issued 25,000
     equity shares at a premium of Re. 1 per share payable Rs. 2 on application, Rs.
     4 on allotment (incl. premium) Rs.3 on first and Rs. 2 on final call.
Applications for 30,000 shares were received. Directors allotted the shares and the
     excess money received on application was returned. All the shareholders paid
     the allotted and call money expect a shareholder who failed to pay call money
     on 800 shares. The directors forfeited those shares. The forfeited shares were
     re-issued at Rs.9 per share as fully paid.
Pass journal entries and prepare necessary ledger accounts

15. From the following balances of Indian Bank Ltd. as on 31st December, 2004
      prepare its Balance sheet in the prescribed form.
                                                                        Rs. (in ‘000)
Paid up share capital (share of Rs.100 each
fully paid)                     2,000
Bills discounted                      1,800
Reserve fund                          770
Cash credits                          2,000
Overdrafts                      800
Unclaimed dividends                   10
Loans                           4,600
Current deposits                      3,800
Furniture                       40
Profit and loss account (Cr.)         220
Stamps and stationery                                        10
Cash in hand                          500
Cash with RBI                         1,300
Branch adjustments (Dr.)              170
Investments                           950
Loans (Cr.)                           1,200
Recurring deposits                    1,000
Fixed deposits                        2,000
Cash certificate                      1,000



                                              9      DE–232
Contingency reserve                 170
Adjustments:
(a)   rebate on bills discounted Rs. 10,000
(b)   provide Rs.80,000 for doubtful debts
(c)   Bank’s      acceptance        on         behalf    of      customers   were
          Rs. 6,50,000.



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 DE–237                                                  21


                             DISTANCE EDUCATION

                 B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                      PRACTICE AND LAW OF BANKING — I

Time : Three hours                        Maximum : 100 marks

                            PART A — (5  8 = 40 marks)

                            Answer any FIVE questions.

1. How will you classify banks on the basis of ownership?

2. Discuss the merits and demerits of unit banking.

3. Define a promissory note and explain its features.

4. Define crossing. Who can Cross a cheque?

5. Emphasize the need for better customer relationship in banks in modern days.

6. Explain the precautions to be observed by a banker while opening an account for
      a minor.

7. Define the term illiterate and explain the procedure to be adopted by a banker
      for opening an account for him.

8. Write notes on :

(a)   Demand draft.



                                          10            DE–232
(b)   Safe deposit lockers.

                              PART B — (4 × 15 = 60 marks)

                              Answer any FOUR questions.

9. Explain the general relationship between a banker and a customer.

10. What are the circumstances under which payment to a cheque can be refused?
     Explain.

11. What is endorsement? What are the different kinds of endorsement?

12. Explain the procedures to be followed in opening an account for the following
      customers.
(a)   Partnership firms.
(b)   Joint stock companies.

13. Explain the circumstances in which the account of customer can be closed by a
      banker.

14. Write notes on :
(a)   ATM
(b)   Merchant banking.

15. State the different types of credit cards and explain their uses.

                                    ————————




                                           11           DE–232
 DE–238                                                      22


                              DISTANCE EDUCATION

                B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                              MANAGEMENT PRACTICE

Time : Three hours                       Maximum : 100 marks

                           PART A — (5  8 = 40 marks)

                Answer any FIVE questions in about 200 words each.

                          All questions carry equal marks.

1. Define management and explain its salient features with proper example.

2. Discuss fully any two modern management approaches with their merits.

3. Analyse the difficulties in Decision making by Indian Bank.

4. Explain the organisational structure prevalent in a bank with which you are
     familiar with?

5. Bring out the merits of Decentralisation.

6. Critically analyse the placement practices followed in Indian Banks.

7. Job Enrichment Vs Job Satisfaction - Discuss.

8. Explain any four accounting ratios which are used in the ratio analysis.

                          PART B — (4  15 = 60 marks)

                Answer any FOUR questions in about 400 words each.

                          All questions carry equal marks.

9. Analyse the role of a manager in any one organisation of your choice.

10. Explain :
     (a)   Deposit planning
     (b)   Operational planning
     (c)   Credit planning.



                                         12           DE–232
11. Explain any six types of decisions.

12. Formal organisation Vs informal organisations - Explain.

13. How effectiveness in delegation can be achieved?

14. Discuss fully the principles of effective communication.

15. Critically evaluate any three control techniques.



                                            –––––––––––
 DE–239                                                                    23


                                       DISTANCE EDUCATION

                  B.B.M DEGREE EXAMINATION, DECEMBER 2010.

                                       BUSINESS STATISTICS

Time : Three hours                                 Maximum : 100 marks

                                   PART A — (5  8 = 40 marks)

                                   Answer any FIVE questions.

                                 All questions carry equal marks.

1. Define statistics. Discuss its applications in the management of business
enterprises.

2. The daily profits in rupees of 100 shops are given as follows :
             Profit (in Rs.) :   0-100   100-200   200-300   300-400   400-500      500-600

             No. of shops :       12       18        27        20           17        6

Find the modal value.

3. What do you understand by standard deviation? Explain its usefulness.

4. Distinguish between Karl Pearson’s and Bowley’s measure of skewness.

5. Find the coefficient of rank correlation. Two managers are asked to rank a group
     of employees in order to be potential for eventually becoming top managers.
     The rankings are as follows :
Employee :                        A      B C D E F G H                 I        J


                                                   13               DE–232
Ranking by Manager I :                   10       2     1        4     3        6     5      8     7        9
Ranking by Manager II :                  9        4     2        3     1        5     6      8     7 10

6. Explain briefly the different methods of measuring trend.

7. What do you mean by cost of living index? How will you construct it?

8. What is a time series? What are its components?

                                         PART B — (4  15 = 60 marks)

                                         Answer any FOUR questions.

                                        All questions carry equal marks.

9. The following table gives the distribution of weekly wages of 600 workers of a
    factory.
      Weekly wages                  Below 375 Below 450 Below 525 Below 600 Below 675 Below 750
      (in Rs.) :
      Cumulative frequency :              69                 236                443              508            566    600

Calculate the median value.

10. Find the coefficient of correlation between price and sales from the following data
      :

Price (Rs.) :      103     98      85        92        90        84        88         90     93        95

Sales (units) :    500    610      700    630          670       800       800      750      700       600


11. Calculate Bowley’s coefficient of Skewness from the following :
                Weekly wages (Rs.) :     Below 200 200–250 250–300 300–350 350–400 400 and above
                No. of workers :              10             25            145         220         70             30


12. Calculate standard deviation and coefficient of variation from the data given
     below :
                            Marks        No. of students
                                       Less than 20                                   18
                                                  ’’        40                        40
                                                  ’’        60                        70
                                                  ’’        80                        90
                                                  ’’    100                         100

13. Define Index number and give its uses.

                                                                      14                     DE–232
14. What is whole sale price index? Discuss its importance in business and industry.

15. Explain the following terms :
(a)   Secular trend
(b)   Seasonal variation
(c)   Cyclical fluctuations.



                                      ——————
  DE–240                                                     24

                                DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                       COMMERCIAL LAW / BUSINESS LAW

                                     (1999 onwards)

Time : Three hours                         Maximum : 100 marks
                               PART A — (5  8 = 40 marks)
                               Answer any FIVE questions.
                        Each answer should not exceed 1 page.

1. State the necessary requirements for a valid agreement.

2. Enumerate instances where incapacity to a contract will arise out of status.


3. State the differences between contract of indemnity and guarantee.


4. Explain the rights and liabilities of a partner.


5. What are the differences between bailment and pledge?


6. Define sale. How does it differ from agreement to sell?


7. Explain the contents of memorandum of Association.


8. State the reason for variation in stamp duty from state to state.

                               PART B — (4  15 = 60 marks)

                                           15          DE–232
                             Answer any FOUR questions.

                       Each answer should not exceed 3 pages.

9. Narrate the rights and duties of the bailee.

10. Define contract of agency. How an agency is terminated?

11. What are the duties of finder of lost goods?

12. Partnership is based on mutual principal agency relationship. Discuss.

13. Who is an unpaid seller? What are the rights of an unpaid seller?

14. Explain the process of the formation of a company.

15. Discuss the effect of document not being duly stamped.



                                     ——————
   DE-241                                                  25

                              DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

         FOREIGN EXCHANGE AND FINANCING OF FOREIGN TRADE

Time : Three hours                        Maximum : 100 marks

                          SECTION A — (5  8 = 40 marks)

                             Answer any FIVE questions.

                          Each answer not to exceed 1 page.

1. What are the components of Balance of Payments?

2. What is disequilibrium?

3. How does the marine insurance policy cover the risks of foreign trade?

4. Explain the features of Bill of Lading.



                                          16             DE–232
5. What do you mean by Nostro Account and Vostro Account?

6. How are foreign currencies sold?

7. What is Consignment Export?

8. What are different project exports?

                          SECTION B — (4  15 = 60 marks)

                             Answer any FOUR questions.

                          Each answer not to exceed 4 pages.

9. What are the functions of Foreign Exchange Department?

10. What are the documents used in the export of goods?

11. Explain different types of letter of credit.

12. What are the factors to be considered while considering a proposal for project
     exports?.

13. What are the objectives of Exchange Control?

14. Explain the role of Pre-Shipment credit in the foreign trade.

15. Explain the role of EXIM Bank in financing the exporters.

                                      ——————
 DE–242                                                        31


                               DISTANCE EDUCATION

                B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                       PRACTICE AND LAW OF BANKING – II

Time : Three hours                          Maximum : 100 marks
                             PART A — (5  8 = 40 marks)
                              Answer any FIVE questions.
                        Each answer should not exceed a page.
                            All questions carry equal marks.

1. What is bill of exchange? State the types of it.


                                            17         DE–232
2. Distinguish between loan and cash credit.

3. What is meant by lien? List out the types of it.

4. What are advantages of stock exchange securities?

5. List out the rights of creditor.

6. State the essential features of contract of guarantee.

7. What is Technical appraisal of a Loan?

8. State the essential features of a limitation Act.
                            PART B — (4 × 15 = 60 marks)
                             Answer any FOUR questions.
                           All questions carry equal marks.

9. Discuss the precautions to be taken by the banker in sanctioning credit limit for
     purchasing/discounting of bills.

10. Explain the rights and duties of a Banker as Pledgee.

11. Discuss briefly the Obligation of a creditor towards surety.

12. What is commercial appraisal of a Loan? How it is differ from financial appraisal
     of a Loan?

13. How the manager of a commercial bank make appraisal of financial statements
     of a company for sanctioning of a Loan?

14. Discuss briefly the various causes for Industrial Sickness.

15. What are the ways to rehabilate the Industrial sickness?



                                      ————————
 DE–243                                                       32


                              DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                      MARKETING OF BANKING SERVICES

Time : Three hours                        Maximum : 100 marks

                             PART A — (5  8 = 40 marks)

                                          18            DE–232
                              Answer any FIVE questions.

                          Each answer not to exceed 1 page.

1. What are the various functions of marketing?

2. What criteria are used for segmenting a market?

3. Explain the importance of marketing environment for a banker.

4. Describe the various product mix strategies .

5. What are the benefits of market segmentation to the banker?

6. Explain product pricing.

7. Discuss the problems in new product development in Banks.

8. What are the factors affecting promotion mix of a Banker?

                           PART B — (4 × 15 = 60 marks)

                            Answer any FOUR questions.

                         Each answer not to exceed 3 pages.

9. Discuss various marketing concepts which is the best concept. Why

10. There is close relationship between market segmentation and marketing mix.–
      Discuss.

11. What are the various pricing strategies?

12. What is product diversification? What is the need for new product in Banks?

13. Explain the importance of motivation and training to bank marketing personnel.

14. Explain the importance of suitable location for a bank branch and branch layout.

15. Explain the factors affecting price mix of a banker.



                                   ————————
 DE–244                                                      33


                               DISTANCE EDUCATION


                                          19               DE–232
               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                          MANAGEMENT ACCOUNTING

Time : Three hours                       Maximum : 100 marks

                          SECTION A — (5 × 8 = 40 marks)

                            Answer any FIVE questions.

                          All questions carry equal marks.

1. What are the functions of Management Accounting?

2. Distinguish between cash flow statement and fund flow statement.

3. What is Marginal costing? Explain its merits and limitations.

4. Explain the importance of capital budgeting.

5. Discuss the various kinds of reports prepared by the Management Accountant for
     different levels of Management.

6. Draw up a flexible budget for overhead expenses on production of 5,000 units in
    a factory are given below :
                                                           Per Unit
                                                               (Rs.)
                 Material                                           50
                 Labour                                             20

                 Variable O.H.                                      15

                 Fixed O.H. (Rs. 50,000)                            10

                 Administrative expenses (5% variable)              10

                 Selling expenses (20% fixed)                       6

                 Distribution expenses (10% fixed)                  5

                 Total cost of sale per unit                    116

You are required to prepare budget for production of 7,000 units.

7. B Ltd. is producing articles mostly on hand labour and is considering to replace it
     by a new machine. There are two alternative models X and Y of the new
     machine. Prepare a statement of profitability showing the pay back period
     from the following information.

                                           20          DE–232
                                                       Machine X Machine Y

             Estimated life machine                      4 years         5 years

             Cost of Machine                           Rs. 9,000           18,000

             Estimated saving in scrap                 Rs. 500                800

             Estimated saving in direct wages Rs. 6,000                     8,000

             Additional cost of maintenance            Rs. 800              1,000

             Additional cost of supervision            Rs. 1,200            1,800

                  Ignore taxation.

8. Calculate the current assets from the following information.
(a)   Sales (all credit) Rs. 2,00,000
(b)   G.P. ratio : 20%
(c)   Stock turnover : 5 times
(d)   Current liabilities : Rs. 60,000
(e)   Quick ratio : 0.75.
                            SECTION B — (4 × 15 = 60 marks)
                                Answer any FOUR questions.
                               All questions carry equal marks.
9. Explain the objectives of analysis an interpretation of financial statements.
10. What do you understand by ‘cost volume profit’ analysis? What is its
     significance?
11. What is capital expenditure proposal? Critically examine the various methods of
     evaluation capital expenditure proposals.
12. Dhandapani & Co. Ltd. furnishes the following Balance Sheets for the years
     2006 and 2007. Prepare common size balance sheet.
                                Balance sheets
                 Liabilities      2006      2007      Assets      2006     2007

                                  Rs.        Rs.                   Rs.      Rs.

               Share capital     2,00,000 3,00,000 Building      4,00,000 4,00,000

               Reserves          6,00,000 7,00,000 Machinery     6,00,00010,00,000

               10% debentures 2,00,000 3,00,000 Stock            2,00,000 3,00,000

               Creditors         3,00,000 5,00,000 Debtors       2,00,000 2,50,000

               Bills payable     1,00,000   80,000 Cash at Bank 1,00,000   50,000




                                               21              DE–232
                Tax payable       1,00,000 1,20,000

                                 15,00,00020,00,000                 15,00,00020,00,000



13. From the following balance sheet of Kamal Ltd. as on 31st December 2003 and

      2004, you are required to prepare

(a)   A schedule of changes in working capital

(b)   A fund flow statement.

                      Liabilities        2003     2004     Assets     2003     2004


                                          Rs.       Rs.               Rs.       Rs.


                 Share capital           80,0001,20,000 Building      55,400 1,13,200


                 Share premium            8,000 12,000 Plant          35,600 57,300


                 General reserve          6,000    9,000 Furniture     2,400    1,500


                 P & L a/c               19,500 20,800 Stock          22,100 26,000


                 Debentures                     – 26,000 Debtors      36,500 33,100


                 Income tax provision     9,800 10,900 Bank            4,800    4,000


                 Creditors               33,500 36,400


                                        1,56,8002,35,100            1,56,800 2,35,100


Depreciation written off during the year 2004 was plant Rs. 12,800, furniture Rs.

      400.

14. Manoj Corporation Ltd. has prepared the following budget estimates for the year
      2005–06

Sales units 15,000

Fixed expenses Rs. 34,000



                                                  22                DE–232
Sales Rs. 1,50,000

Variable cost Rs. 6 per unit.

You are required to

(a)   Find the P/V ratio break even point and margin of safety

(b)   Calculate the revised P/V ratio, BEP and margin of safety in each of the
              following cases.

      (i)     Decrease of 10% in selling price

      (ii)    Increase of 10% in variable cost.

15. Following are the ratios to the trading activities of National Traders Ltd.

Debtors velocity 3 months

Stock velocity 8 months

Creditors velocity 2 months

Gross profit ratio 25%

Gross profit for the year ended 31st December 2004 amounts to Rs. 4,00,000. Closing
      stock                  of                   the                   year                is
      Rs.      10,000     above     the    opening      stock.        Bills    receivable   to
      Rs. 25,000, Bills payable to Rs. 10,000.

Find out :

(a)   Sales

(b)   Sundry Debtors

(c)   Closing Stock

(d)   Sundry Creditors.



                                     ————————
  DE–245                                                         34

                                  DISTANCE EDUCATION



                                            23             DE–232
               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                          COMPUTERS AND BANKING

Time : Three hours                      Maximum : 100 marks

                           PART A — (5  8 = 40 marks)

                  Answer any FIVE questions about 200 words each.

                          All questions carry equal marks.

1. Explain the features of any two output devices.

2. Compare the capabilities of conventional personal computers and early
     computers.


3. Explain the method of representing non-numeric data in computers.


4. Obtain the decimal and octal valves for the binary number 111101.010110.


5. Distinguish RAM and ROM.


6. Explain the functions of language translators.


7. What is batch update? Explain.


8. Discuss the advantages of ATM.

                           PART B — (4  15 = 60 marks)

                Answer any FOUR questions about 400 words each.

                          All questions carry equal marks.

9. Discuss the generations of computers.

10. Explain the method of obtaining binary, octal and hexadecimal valves for the
      given decimal number with an example.

11. What is peripheral? Explain any two peripheral controllers.

12. Explain the components of CPU and its functions.


                                         24            DE–232
13. Explain the features of any two programming languages.

14. Discuss computerisation in banks with respect to interbranch reconciliation and
      accidental damage.

15. Explain the terms EFT and MICR and their advantages.



                                     ———————
  DE–246                                                      35

                             DISTANCE EDUCATION

               B.B.M. DEGREE EXAMINATION, DECEMBER 2010.

                            DEVELOPMENT BANKING

Time : Three hours                          Maximum : 100 marks

                           PART A — (5  8 = 40 marks)

               Answer any FIVE questions in about 200 words each.

                          All questions carry equal marks.

1. Narrate the significance of development banking.

2. Discuss the objectives of IDBI.

3. Write a note on Technical Consultancy Organisation (TCD).

4. What are the functions of ICICI?

5. Write a note on EXIM bank.

6. State the role of National small industries corporation.

7. State the importance of credit rating.

8. Distinguish between LIC and GIC.

                           PART B — (4  15 = 60 marks)

               Answer any FOUR questions in about 400 words each.

9. Explain in detail the evolution of development banking concept in India.



                                            25         DE–232
10. Elaborate various forms of assistance provided by IFCI.

11. Discuss in detail the schemes of indirect assistance provided by IDBI.

12. Explain the functions of SIDBI.

13. Elaborate the objectives and activities of UTI.

14. Discuss in detail the functioning of State financial corporation.

15. Examine the role of LIC as a capital mobiliser.

                                    ———————




                                          26            DE–232

				
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