LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

JQ 19

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

SIXTH SEMESTER – April 2009

BU 6603 – MANAGEMENT ACCOUNTING

 

 

 

Date & Time: 23/04/2009 / 9:00 – 12:00          Dept. No.                                                          Max. : 100 Marks

 

 

PART – A

Answer ALL questions:                                                                               (10 x 2 = 20)

1. What is Marginal costing?
2. Define Management accounting.
3. What do mean by ‘Variance analysis’?
4. What is meant by break – even analysis?
5. What is margin of safety?
6. Write short notes on:
7. Debt Equity ratio
8. Debt Collection period
9. Calculate the material usage variance from the following;

Standard:        2,000 units at Rs. 2 each.

Actual:                        2,500 units at Re.1 each.

8. Calculate current ratio from the following:

	Rs.
Cash in hand	2,000
Debtors	10,000
Stock	40,000
Land	12,000
Bills receivable	30,000
Bank overdraft	35,000
Creditors	60,000
Debentures	10,000

9. Compute the P/V ratio: Sales Rs. 10,000, variable cost Rs.3,000 and fixed costs Rs. 5,000.
10. What is overhead variances?

PART – B

Answer any FIVE questions:                                                                       (5 x 8 = 40)

11. Distinguish between Management Accounting and Financial Accounting.
12. From the following compute 1) Fixed assets turnover ratio        2) Debtors turnover ratio

3) Net profit ratio                          4) Stock turnover ratio.

Profit and Loss Account for the year ending 31^st dec. 1998.

To opening stock	2,50,000	By sales	18,00,000
To purchases	10,50,000	By closing stock	1,50,000
To Gross profit	6,50,000
	————-		————-
	19,50,000		19,50,000
	————–		————-
To Administration expenses	3,30,000	By Gross Profit	6,50,000
To other expenses	20,000	By Interest	50,000
To Net profit	3,50,000
	————-		———-
	7,00,000		7,00,000
	————-		———–

Other information are:

Fixed assets Rs. 7,00,000

Debtors Rs. 2,50,000.

 

 

 

13. From the following particulars, prepare a production budget of sales company for the year ending on 31^st March 2005.

Product	Sales (Units)	Estimated Stocks (Units)
		1.4.2004	31.3.2005
A	1,50,000	14,000	15,000
B	1,00,000	5,000	4,500
C	70,000	8,000	8,000

14. Compute the break even point in rupees and in units. The fixed expenses of the concern is Rs.

1,80,000.  Its variable cost per unit is Rs. 29 and selling price is Rs. 44 per unit.

15. Write short notes on the following.
16. Zero based budget    b) Budgetary control            c) Control ratios.
17. Following particulars are taken from the records of a company, calculate:
18. Operating ratio b) Operating profit ratio          c) Current ratio            d) Liquidity ratio

	Rs.
Gross profit	55,000
Selling expenses	4,000
Administration expenses	22,000
Sales	1,54,000
Debtors	1,20,000
Cash	10,000
Inventory	30,000
Creditors	25,000
Bills payable	12,000

17. Calculate funds from operations from the following Profit and Loss Account:

Particulars	Rs.	Particulars	Rs.
To expenses	50,000	By Gross Profit	1,00,000
To depreciation	20,000	By gain on sale of machinery	10,000
To loss on sale of building	7,750
To discount allowed	250
To goodwill written off	6,000
To net profit	26,000
	————–		—————
	1,10,000		1,10,000
	—————		—————

18. Calculate material cost variances from the following data:

	Standard		Actual
Quantity		800kgs		920kgs
Price		Rs. 4 per kg		Rs. 3 per kg
Value		Rs. 1600		Rs. 1380

 

PART – C

Answer any TWO questions                                                                        (2 x 20 = 40 marks)

19. For the production of 10,000 units of a product, the following are the budgeted expenses. Prepare a budget for the production of 6,000 and 7,000 units.

	Rs.
Direct materials	60
Direct labour	30
Variable overheads	25
Fixed overheads (Rs. 1,50,000)	15
Variable expenses (direct)	5
Selling expenses (10% fixed)	15
Administration expenses (Rs. 50,000 rigid at all levels)	5
Distribution expenses (20% fixed)	5

20. From the following Balance Sheet of ABC Ltd., Prepare a Fund Flow Statement.

Balance Sheets

Liabilities	2002	2003	Assets	2002	2003
	Rs.	Rs.		Rs.	Rs.
Equity share	4,50,000	5,00,000	Goodwill	1,15,000	90,000
Reserve fund	40,000	70,000	Building	2,00,000	1,70,000
P&L A/C	30,000	48,000	Plant	80,000	2,00,000
Proposed dividend	42,000	50,000	Debtors	1,60,000	2,00,000
Creditors	55,000	83,000	Stock	77,000	1,09,000
Bills payable	20,000	16,000	Bills  receivable	20,000	30,000
Provision for taxation	40,000	50,000	Cash in hand	25,000	18,000
	————–	————-		————-	————-
	6,77,000	8,17,000		6,77,000	8,17,000
	————–	————-		————-	————-

Additional information:

• Depreciation on plant Rs. 10,000 and building Rs. 20,000 charged in 2003.
• An interim dividend of Rs. 20,000 has been paid in 2003.
• Income tax Rs. 35,000 was paid during 2003.

 

21. a) The sales and profit for 2006 and 2007 are as follows:

Sales                Profit

Rs.                     Rs.

2006                1,50,000          20,000

2007                1,70,000          25,000

Compute:

• P/V Ratio
• BEP
• Sales for a profit of Rs. 40,000
• profit for sales of Rs. 2,50,000 and
• Margin of safety at a profit of Rs. 50,000

 

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