JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION MARCH /APRIL 2016

B.B.A . (International Students ) – II SEMESTER

MANAGEMENT aCCOUNTING

Duration: 3 Hours Max. Marks: 100

SECTION – A

Answer ALL the questions. Each carries 2 marks. (5×2=10)

State any two objectives of Budgetary Control.

Classify the following operating investing or financing activities under the cash flow statement.

(a) Purchase of building

(b) Sale of machinery

(d) Payment of wages

From the following information find out the amount of profit earned during the year using the marginal costing technique:

Fixed Cost	Rs. 2,50,000
Variable Cost	Rs. 10 per unit
Selling price	Rs. 15 per unit
Output level	75,000 units

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

Find out (i) P/V ratio , (ii) Fixed cost

Mention any two essentials of an effective Budgetary control system.

SECTION – B

II)

Answer any TWO questions. Each carries 5 marks. (2×5=10)

From the following data, you are required to calculate:

(a) P/V ratio

(b) Break-even sales with the help of P/V ratio.

Fixed Expenses	Rs. 90,000
Variable Cost per unit
Direct Material	Rs. 5
Direct Labour	Rs. 2
Direct Overheads	100 % of Direct Labour
Selling Price per unit	Rs. 12

The following information at 50% capacity is given. Prepare a flexible budget and forecast the profit or loss at 60% capacity.

Particulars	Amount (Rs)
Fixed Expenses:
Salaries	50,000
Rent and Taxes	40,000
Depreciation	60,000
Administrative Expenses	70,000
Variable Expenses:
Materials	2,00,000
Labour	2,50,000
Others	40,000
Semi–Variable Expenses
Repairs	1,00,000
Indirect Labour	1,50,000
Others	90,000

It is estimated that fixed expenses will remain constant at all capacitates. Semi- Variable expenses will not change between 45% and 60% capacity, will rise by 10% between 60% and 75% capacity .

Estimated sales at various levels of capacity are :

Capacity	Sales (Rs)
60%	11,00,000
70%	13,00,000

The following details are available from a company.

Liabilities	31/12/2014 (Rs)	31/12/2015 (Rs)	Assets	31/12/2014 (Rs)	31/12/2015 (Rs)
Share Capital	70,000	74,000	Cash	9,000	7,800
Debentures	12,000	6,000	Debtors	14,900	17,700
Reserve for doubtful debts	700	800	Stock	49,200	42,700
Trade Creditors	10,360	11,840	Land	20,000	30,000
P/L A/c	10,040	10,560	Goodwill	10,000	5,000
	1,03,100	1,03,200		1,03,100	1,03,200

In addition , you are given:

a. Dividend paid total Rs. 3,500.

b. Land was purchased for Rs. 10,000.

c. Amount provided for amortisation of goodwill Rs.5,000.

d. Debentures paid off Rs. 6,000.

Calculate cash from operating activities.

The sales turnover and profit during two years were as follows:

Year	Sales (Rs)	Profit (Rs)
2014	1,40,000	15,000
2015	1,60,000	20,000

You are required to calculate:

(i) P/V ratio

(ii) Sales required to earn a profit of Rs. 40,000

(iii) Profit when sales are Rs. 1,20,000

SECTION – C

III)

Answer any TWO questions. Each carries 15 marks. (2×15=30)

10.

From the following budget data, forecast the cash position at the end of April, May and June 2015:

Month	Sales (Rs)	Purchase (Rs)	Wages (Rs)	Miscellaneous (Rs)
February	1,20,000	84,000	10,000	7,000
March	1,30,000	1,00,000	12,000	8,000
April	80,000	1,04,000	8,000	6,000
May	1,16,000	1,06,000	10,000	12,000
June	88,000	80,000	8,000	6,000

Additional information:

Sales: 20% realised in the month of sales, discount allowed 2% . Balance realised equally in two subsequent months.

Purchases: These are paid in the month following the month of supply.

Wages: 25% paid in arrears following month.

Miscellaneous expenses : Paid a month in arrears.

Rent: Rs. 1,000 per month paid quarterly in advance due in April.

Income –tax : First instalment of advance tax Rs. 25,000 due on or before 15^th June.

Income from investments: Rs. 5,000 received quarterly , in April , July , etc.

Cash in hand: Rs. 5,000 on 1^st April ,2015

11.

You are given the following data for the coming year of a factory:

Particulars	Amount (Rs)
Budgeted Put	80,000 units
Fixed Expenses	4,00,000
Variable Expenses per unit	10
Selling Price per unit	20

Draw a break – even chart showing the break-even point. If the selling price is reduced to Rs. 18 per unit, what will be the new break-even point?

12.

From the following information you are required to prepare a Cash Flow Statement of C.P Ltd. For the year ended 31^st December 2015 using the indirect method.

Liabilities	31/12/2014 (Rs)	31/12/2015 (Rs)	Assets	31/12/2014 (Rs)	31/12/2015 (Rs)
Share Capital	70,000	70,000	Plant & Machinery	50,000	91,000
Secured Loans (Repayable in 2020)	—–	40,000	Inventory	15,000	40,000
Creditors	14,000	39,000	Debtors	5,000	20,000
Tax Payable	1,000	3,000	Cash	20,000	7,000
P& L A/c	7,000	10,000	Prepaid Expenses	2,000	4,000
	92,000	1,62,000		92,000	1,62,000

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