Loyola College B.Com April 2009 Management Accounts Question Paper PDF Download

             LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

KP 33

SIXTH SEMESTER – April 2009

CO 6605 – MANAGEMENT ACCOUNTS

 

 

 

Date & Time: 21/04/2009 / 9:00 – 12:00  Dept. No.                                                  Max. : 100 Marks

 

 

SECTION-A(2×10=20)

  1. Answer all the questions:

1.What is fund from operation?

2.Explain stock turnover ratio

3.What is margin of safety

4.Distinguish fixed budget from flexible budget

5.Explain return on capital employed

6.Find out the quantity of raw material to be purchased from the  following details:

Opening stock of raw material 10,000 kgs.

Material expected to be consumed  20,000 kgs

Closing stock of raw material required 5,000 kgs

7.If inventory turnover ratio is 5 times, G.P ratio 20% and sales Rs. 10,00,000 find out the average stock

8.A plant purchased for Rs. 55.000 ( accumulated depreciation Rs. 23.000) was sold for Rs.44.000. The gain

on sale of plant was credited to P/L account, thus increasing the net profit to Rs. 1.62,000. Calculate fund

from operation.

9.Sales Rs.1,00,000. Profit Rs.10,000. Variable cost 70%.

Find out

  1. P/V Ratio
  2. Fixed Cost

10.The budgeted and actual sales of a concern are:

Budgeted sales 10.000 units at Rs.4 per unit

Actual sales       5,000 units at Rs.3.50 per unit

8,000 units at Rs.4.00 per unit

Calculate a). sales price variance          b) sales volume variance

 

SECTION –B (5×8=40)

  1. Answer any FIVE questions only:

11.Distinguish Management Accounting from Financial Accounting

12.Explain the importance of Marginal costing in managerial decision making

13.What are the different classifications of budget?

14.Statement of financial position of Mr. Arun is given below:

Liabilities              2007                2008                            Assets                          2007                2008

Rs                    Rs                                                                    Rs                    Rs.

Accounts Payable    29,000     25,000                              Cash                            40,000             30,000

Capital                   7,39,000  6,15,000                              Debtor                         20,000             17,000

Stock                           8,000              13,000

Building                  1,00,000              80,000

Other fixed asset     6,00,000           5,00,000

7.68,000   6,40,000                                                             7,68,000           6,40,000

  • there were no drawing
  • there were no purchases or sale of building or other fixed assets.

Prepare a fund Flow Statement

 

15.A company shows the following results for two periods:

Year                Units               Total cost                    Sales

2003                10,000             Rs.80,000                    Rs.1,00,000

2004                12,000             Rs.90,000                    Rs.1,20,000

Find out the following:

  • P/V Ratio
  • BEP both in units and amount
  • Fixed Cost
  • Margin of safety in the year 2004

 

 

 

  1. Debtor velocity 3 months

Creditor Velocity                    2 months

Stock velocity                         8 times

Bills payable                            Rs.4,000

Bills receivable                        Rs.10,000

Total sales                               Rs.2,40,000

The closing stock is Rs.2,000 more than the opening stock. .Gross profit on the above sales is Rs.40,000. There are no cash sales and cash purchases and the accounting year consists of 360 days. Find out

(a) Sundry debtor                          (b) Sundry creditors                (c) Closing stock

 

17.The standard mix for 100 units of product ‘X’ is

Material A                   6 Kg at Rs.15        90

Material B                   4 Kg at Rs.10        40

——-               ——-

10 Kg              Rs 130

——–              ———

During January, the actual consumption was as follows

Material A                63 kg at Rs.14                882

Material B                 39 kg at Rs.11               429

——-                           ———-

102 kg                       Rs.1,311

——–                         ———–

Actual output was 960 units. Calculate material variances

 

18.The monthly budgets for manufacturing overhead of a concern for two levels of activities were as follows:

Capacity                                        60%                 100%

Budgeted production (units)        600                  1,000

——————————–

Rs.                   Rs.

Wages                                           1,200               2,000

Consumable stores                           900               1,500

Maintenance                                  1,100               1,500

Power and fuel                              1,600               2,000

Depreciation                                  4,000               4,000

Insurance                                       1,000               1,000

————- ———

9,800             12,000

————-          ————

You are required :

  • indicate which of the items are Fixed, Variable and Semi-Variable
  • prepare a budget for 80% capacity

SECTION-C (2X20=40)

Answer any TWO  questions

 

19.From the following Balance Sheets prepare a Fund Flow Statement

Balance Sheets of A Ltd

—————————————————————————————————————————

Liabilities                    2006                2007                Assets              2006                2007

Rs                  Rs                                            Rs                    Rs

——————————————————————————————————————————

Share Capital                     6,00,000          7,00,000          Fixed Asset     8,00,000          9,50,000

General Reserve                2,00,000          2,50,000          Investments     1,80,000          1,80,000

Profit on sale of                                                                Stock               2,00,000          2,70,000

Investment                                         –                     10,000          Debtor             2,25,000          2,45,000

P/L A/c                              1,00,000          2,00,000          B/R                     40,000             65,000

7%Debenture                    3,00,000          2,00,000          Prepaid Expense 10,000            12,000

Creditors                           1,60,000          2,50,000          Discount on         15,000            10,000

B/P                                       10,000             12,000          debenture

Proposed dividend                           30,000             35,000

Provision for tax                  70,000             75,000

——————————————————————————————————————————                                                           14,70,000        17,32,000                                14,70,000        17,32,000

—————————————————————————————————————————-

 

Other information:

  • During 2007 , Fixed asset ( Book value Rs.10,000 and depreciation written off Rs.30,000) were sold for Rs.8,000
  • During 2007 investment costing Rs.80,000 were sold and new investment were bought for Rs.80,000
  • Debenture were redeemed at a premium of 10%
  • During 2007 income tax paid was Rs.55,000
  • Provision for depreciation 31-12-2006 Rs.2,00,000 and on 31-12-2007 Rs.2,50,000

 

  1. S. Ltd wishes to prepare a cash budget from January. Prepare a cash budget for the first 6 months from

the following estimated revenue   and expenditure.

 

Month                   Total sales       Materials         Wages             Production      Selling

Overheads       overheads

Rs                    Rs                    Rs                    Rs                    Rs

Jan.                        40,000             40,000             8,000               6,400               1,600

February                44,000             28,000             8,800               6,600               1,800

March                    56,000             28,000             9,200               6,800               1,800

April                      72,000             44,000             9,200               7,000               2,000

May                       60,000             40,000             8,000               6,400               1,800

June                       80,000             50,000           10,000               7,200               2,400

 

Cash balance on 1 st Jan was Rs   20,000.

A new machine is to be installed at Rs  20,000 to be paid by two equal installments in March and April. Sales  commission at 5% on total sales to be paid within month following actual sales.

Rs  20,000 being the amount of share 2  nd call may be received in March.

Share premium amounting to Rs   4,000 is also obtainable with the 2 nd call.

 

Period of credit allowed by suppliers                   -2 months

Period of credit allowed to customers                  -1 month

Delay in payment of overheads                            -1 month

Delay in payment of wages                                  -1/2 month

Assume cash sales as 50% total sales

 

21.From the following figures and ratios, Draw up the Balance sheet and Trading account and Profit and Loss

Account

 

Share Capital               Rs 1,80,000

Working Capital          Rs    63,000

Bank overdraft            Rs    10,000

 

There is no fictitious asset. In current assets there is no assets other than stock, debtor and cash. Closing stock is 20% higher than the opening stock.

Current ratio                – 2.5

Proprietary ratio          – 0.7

Stock velocity             – 4 times

Net profit                    – 10%(to average capital employed)

Quick ratio                  – 1.5

Gross profit ratio         – 20% to sales

Debtor velocity           – 36.5 days

 

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