Loyola College B.Com Corporate & Secretaryship April 2008 Management Accounts Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

    B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP

GF 16

 

SIXTH SEMESTER – APRIL 2008

BC 6600 / CR 6600 – MANAGEMENT ACCOUNTS

 

 

 

Date : 16/04/2008             Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

 

SECTION      A

Answer ALL questions                                                                                10 x 2=20

  1. Define Management Accounting.
  2. Distinguish between ‘fixed budget’ and ‘flexible budget’
  3. Write a short note on Current Ratio
  4. What is a ‘Funds Flow Statement’?
  5. What is working capital?
  6. Sales-Rs. 1,00,000, Profit-Rs. 10,000,Variable cost-70% of sales. Find out

P/V Ratio.

  1. Standard time per unit 2 hrs, Standard rate per hour Rs. 3, Actual output 80 units,

Total Actual time taken 150 hours, Actual Rate per hour Rs. 3.50. Compute DLCV

(Direct Labour Cost Variance).

  1. Calculate the Operating Profit Ratio from the following figures,

Sales-Rs. 70,000, Production expenses-Rs. 35,000, Administration expenses-Rs.

10,000,Interest expenses-Rs. 5,000,

  1. A Company realized Rs. 20,000 from its debtors. The total current assets before

the realization was Rs. 3,00,000. What is the total of current asset after the realisation

from debtors.

10.Write the formula to calculate Stock Turnover ratio.

 

                                                            SECTION    B                                      5 x 8=40

Answer any FIVE questions.

  1. Explain the uses and limitations of ratio analysis.
  2. Explain any four applications of marginal costing in Managerial decision making.
  3. What is Budget? Enumerate the advantages of budgetary control .
  4. The sales director of a manufacturing company reports that next year he expects

to sell 50,000 units of a particular product.

The production manager consults the store keeper and casts his figures as follows:

Two kinds of raw materials, A and B are required for manufacturing the product.

Each unit of the product requires 2 units of A and 3 units of B. The estimated opening

Balances at the commencement of the next year are:

Finished Product    : 10,000 units,

Raw Material A     :  12,000 units, B – 15,000 units,

The desirable closing balances at the end of the next year are:

Finished product     : 14,000 units; A-13,000 units, B-16,000 units.

Draw up a Materials Purchase Budget for the next year.

  1. The Sales Turnover and Profit during two years were as follows:

Year                           Sales                       Profit

Rs.                             Rs.

2006                      1,50,000                  20,000

2007                     1,70,000                   25,000

 

You are required to calculate: (i) P/V Ratio, (ii) Break-Even Point, (iii) The Sales

Required to earn a profit of Rs. 40,000, (iv) The profit made when sales are

Rs. 2,50,000

  1. Item                        Budget                        Actual

Number of working days                          20                              22

Man hours per day                                 8,000                         8,400

Output per man-hour in units                     1                               1.2

Total Units of output                           1,60,000                     2,21,760

Standard overhead rate per-man hour Rs. 0.10

From the above information calculate: (i) Volume variance, (ii) Efficiency variance,

And (iii) Calender variance.

  1. With the following data for a 60% activity, Prepare a flexible budget for production

At 80% and 100% activity.

Production at 60% activity     600 units

Materials                          Rs. 100 per unit

Labour                              Rs. 40 per unit

Expenses                           Rs. 10 per unit

Factory expenses Rs. 40,000(40% fixed)

Administration expenses Rs. 30,000(60% fixed)

  1. You are required to calculate:
  2. i) Debtor’s Turnover ratio, ii) Creditor’s Turnover ratio, iii) Stock Turnover ratio

The information available is as under:

Total Sales for the year    Rs. 1,00,000

Cash Sales for the year              20,000

Debtors                                      15,000

Bills Receivable                           5,000

Credit Purchases                     1,00,000

Creditors                                    25,000

Gross Profit                                50,000

Average stock                             10,000

 

SECTION    C                              2 x 20=40

Answer any TWO questions

 

  1. From the following Balance Sheets of X Ltd. on 31-12-2005 and 2006 you are

required to prepare (a) A schedule of changes in working capital, (b) A Funds

Flow Statement.

Liabilities                     2005        2006          Assets                 2005                2006

Rs.           Rs.                                          Rs.                 Rs.

Share capital                1,00,000   1,00,000     Goodwill           12,000            12,000

General Reserve             14,000      18,000     Buildings           40,000            36,000

Profit & Loss A/c           16,000      13,000     Plant                   37,000            36,000

Sundry Creditors              8,000        5,400     Investments        10,000            11,000

Bills Payable                      1,600        1,400     Stock                  30,000            23,400

Provision for Taxation   16,000      18,000     Debtors               20,000           22,400

                                                                        Cash                      6,600           15,200

                                          1,55,600      155,800                            1,55,600        1,55,800

The additional information has also been given.

  1. Depreciation charged on plant was Rs. 4,000 and on Building Rs. 4,000.
  2. Provision for taxation of Rs. 19,000 was made during the year 2006
  • Dividend of Rs. 8,000 was paid during the year 2006

 

 

  1. A Company expects to have Rs. 37,500 cash in hand on 1st April,2008 and requires

You  to prepare a Cash Budget for the three months from April to June 2008.  The

following information is supplied to you.

 

Sales          Purchases           Wages          Office expenses

February           75,000            45,000              9,000              18,000

March               84,000            48,000              9,750              18,750

April                 90,000            52,500            10,500              20,250

May                1,20,000           60,000            13,500              23,820

June                1,35,000           60,000            14,250              28,000

Other information:

  1. Period of credit allowed by suppliers – 2 months,
  2. 20% of sales is for cash and period of credit allowed to customers for credit

Sales is one month

  • Delay in payment of office expenses -1 month,
  1. Income tax of Rs. 57,500 is due to be paid on June 15, 2008
  2. The Company is to pay dividends to share holders of Rs. 37,500 in the month of April.

 

21 . The Standard cost of a chemical mixture is as under:

4 tons of Material X at Rs. 20 per ton,

6 tons of Material Y at Rs. 30 per ton,

Standard yield is 90% of input,

Actual Cost for a period is as under:

4.5 tons of material X at Rs. 15 per ton,

5.5 tons of material Y at Rs. 34 per ton ,

Actual Yield is 9.1 tons.

Compute (a) Material Price Variance, (b) Material Usage Variance,

(c) Material  Mix Variance, and (d) Material Yield Variance.

 

 

 

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