Loyola College B.B.A. Business Administration Nov 2006 Cost & Management Accounting Question Paper PDF Download

             LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034  B.B.A DEGREE EXAMINATION – BUSINESS ADMINISTRATION

AU 09

FIFTH SEMESTER – NOV 2006

         BU 5501 – COST & MANAGEMENT ACCOUNTING

(Also equivalent to BUA 507)

 

 

Date & Time : 27-10-2006/9.00-12.00         Dept. No.                                                       Max. : 100 Marks

Section –A

( Answer all Questions)                                    (10×2=20)

1.Define cost Accountancy.

2.Give four examples of indirect expenses.

3.What do understand by perpetual inventory system?

4.What do you mean by Normal idle time?

5.Calculate the value of cost of goods sold.

Rs

Net works cost                                         2,00,000

Office overhead                                          40,000

Selling overhead                                         30,000

Opening stock of finished goods                  8,000

Closing stock of finished goods                 10,000

6.Calculate average collection period from the following particulars

Rs

Credit sales for the year             12,000

Debtors                                         1,000

Bills receivable                             1,000

7.What is meant by stock turnover ratio?.

8.Ascertain provision made for tax during 2005-06

Rs

Provision for tax on 1-4-2005            80,000

Provision for tax on 31-3-2006       1,00,000

Tax paid during the year                     60,000

9.Define marginal costing.

10.Calculate p/v ratio from the particulars.

2004; Sales   Rs.6,00,000 ; Profit  Rs.1,00,000

2005; Sales Rs.10,00,000 ; Profit.Rs.1,80,000

 

SECTION-B

( Answer any five questions, choosing not less than TWO from each group)

(5×8=40)

GROUP-I

 

  1. Explain in detail the advantages and disadvantages of Cost accounting.

12.Apportion the overheads among the departments A,B,C an D.

Rs                                                        Rs

Works manager’s salary            4,000       Power                                21,000

Contribution to P.F.                   9,000      Depreciation                      20,000

Plant maintenance                     4,000       Rent                                     6,000

Canteen expenses                    12,000

 

 

 

 

 

Additional information;

 

Particulars          A         B           C           D
Number of employees

Area occupied

( sq.feet)        Value of the plant

(Rs)

Wages (Rs)

Horse power

               16

 

2,000

 

75,000

 

40,000

3

              8

 

3,000

 

1,00,000

 

20,000

3

              4

 

500

 

25,000

 

10,000

1

                 4

 

500

 

—-

 

5,000

—-

 

 

  1. .The following information is pertaining to a Firm

Annual consumption  – 12,000 units (360) days

Cost per unit               – Re.1

Cost per order             – Rs.12

Inventory carrying cost – 20%

Lead time                (maximum, normal, minimum)  30-15-5 (days)

Daily consumption  (maximum, normal, minimum)  ,45-33-15 (units)

Calculate EOQ and Inventory levels.

 

14.a) From the following particulars , workout the total amount payable to the three

workmen and the rate earned by them under;

i)Halsey plan and b) Rowan plan .

Standard time allowed     ; 12 hours

Actual time taken by;

A-8 hours, B-6 hours , C-4 hours.               (4)

  1. b) A company presents the following information ;

Number of employees 0n 1-1-2005           ;     200

Number of employees as on 31-12-2005;       240

Number of employees resigned                 ;      20

Number of employees discharged             ;        5

Number of employees replaced                 ;      18

Calculate labour turnover ratios under all the methods.                     (4)

 

 

GROUP-II

 

15 a) Compare and contrast between Management Accounting and Cost Accounting.(4)

 

  1. b) Write short notes on the following (4)
  2. i) BEP ii) Margin of safety

 

 

 

 

 

16.A company presents the following information,

     year     units Total cost  (Rs)      Sales(Rs)

 

   2004     10,000      80,000     1,00,000
   2005     12,000      90,000     1,20,000

Find out the following;

  1. P/V ratio b) BEP both in units and amount c) Fixed cost d) margin of safety for the year 2005.

17.From the following data, calculate the following ratios.

a)Current ratio b) Liquid ratio c) Debt Equity ratio d) Fixed assets ratio.

Balance sheet as on 31-3-2004

——————————————————————————————————–

Liabilities                     Rs                        Assets                       Rs

Equity capital                      1,00,000          Land & building             75,000

Reserve fund                          50,000          Plant& machinery          80,000

Profit&loss a/c                       20,000          Stock in trade                 30,000

10% debentures                     50,000          Sundry debtors               50,000

Sundry creditors                    30,000          Bills receivable               20,000

Bills payable                         15,000          Cash in hand                   10,000

———–                                                ————-

2,65,000                                               2,65,000

————                                               ————-

18.From the following profit& loss a/c , calculate the following ratios.

  1. A) G/P ratio b) N/P ratio c) Operating profit ratio d) Operating ratio

 

—————————————————————————————————

Particulars                  Rs                              Particulars                          Rs.

—————————————————————————————————-

To opening stock               1,00,000        By sales                                        5,60,000

To purchases                     3,50,000        By closing stock                           1,00,000

To wages                                9,000

To Gross profit                  2,01,000

———–                                                            ————

6,60,000                                                             6,60,000

———–                                                           ————-

To Administrative exp          20,000       By Gross profit                             2,01,000

To selling expenses               89,000       By interest on investments              10,000

To Non- operating exp          30,000       By profit on sale of investments       8,000

To Net profit                         80,000

————                                                           ————

2,19,000                                                             2,19,000

————-                                                          ————-

 

 

 

 

 

 

 

 

 

 

SECTION-C

(Answer any two questions  )                           (2X20=40)

 

19.a) From the following transactions, prepare separately the stores ledger account,

using  The following methods; a) FIFO b) LIFO

Jan 1. Opening  balance              100 units @ Rs.5 each.

5   Received                           500 units @ Rs.6 each.

7   Issued                                300 units

9   Issued                                200 units

10 Received back from work order 10 units issued on 9th February.

13.Received                             600 units @ Rs.5 each.

16.Issued                                  300 units.

  1. Returned to supplier 50 units purchased on 13th January
  2. Issued                     200 units.
  3. Received 500 units at Rs.7 per unit.
  4. Issued 300 units.

Stock verification on 27th January revealed a shortage of 10- units..

OR

19.b) I)  Following data is obtained in the books of –V –Ltd for the year2005

 

Opening stock of raw materials                                          25,000

Closing stock of raw materials                                           40,000

Purchase of raw materials                                                   85,000

Carriage inwards                                                                   5,000

Direct wages                                                                       75,000

Indirect wages                                                                     10,000

Other direct charges                                                           15,000

Rent and rates  –

Factory                                                                      5,000

Office                                                                           500

Indirect consumption of materials                                           500

Depreciation of plant                                                            1,500

Depreciation of office furniture                                               100

Office salary                                                                         2,500

Salesmen salary                                                                    2,000

Other office expenses                                                              900

Other factory expenses                                                         5,700

Managing director’s remuneration                                     12,000

Other selling expenses                                                          1,000                                              Travelling expenses                                                               1,100

Carriage outwards                                                                  1,000

Sales                                                                                  2,50,000

Advance income tax paid                                                     15,000

Advertisement                                                                        2,000

 

Managing director’s remuneration is allocated as Rs.4,000  to the factory , Rs.2,000

To the office and Rs.6,000 to the selling departments.

Prepare a cost sheet showing the following;

  1. Prime cost b) Works cost c) cost of production d) cost of sales e) Net profit.

 

 

 

 

20 a).The following are the summarized Balance sheets of L- Ltd as on 31-st

Dec.2003 and 2004, you are required to prepare , a) Schedule of changes in the

working capital

  1. Fund flow statement.

Balance sheet

—————————————————————————————————-

Liabilities     30-6-2003      30-6-2004        Assets           30-6-2003      30-6-2004

(Rs)                  ( Rs)                                      (Rs)                ( Rs)

—————————————————————————————————-

Share capital      1,80,000        2,00,000         Goodwill            24,000         20,000

Reserve fund        28,000           36,000          Building             80,000         72,000

P&L A/c               39,000           24,000          Machinery         74,000         72,000

Trade creditors      16,000           10,800          Investments       20,000         22,000

Bank overdraft      12,400             2,600          Inventories         60,000         50,800

Prov. For tax.        32,000           34,000          Cash                   13,200         30,400

Prov. For doubtful  3,800             4,200          Debtors              40,000         44,400

Debts

—————————-                                 ————————–

3,11,200        3,11,600                                   3,11,200     3,11,600

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

Additional information;

  1. i) Depreciation charged on machinery Rs.10,000 and on buildings Rs.8,000
  2. ii) Investments sold during the year Rs.3,000

iii) Rs.15,000 interim dividend paid during Jan.2004

  1. iv) Taxes paid during the year Rs.30,000.

OR

20.b)Balance sheets of A and B are as follows, You are asked to prepare cash flow statement.

Balance sheets

——————————————————————————————————–

Liabilities                  2003         2004                Assets              2003        2004

Rs              Rs                                          Rs             Rs

 

Equity share capital         3,00,000    4,00,000     Goodwill            1,15,000   90,000

 

Land& building   2,00,000 1,70,000

8% Red.pre.cap.              1,50,000    1,00,000       Plant                     80,000 2,00,000

General reserve                  40,000       70,000       Debtors              1,60,000 2,00,000

P&L A/C                            30,000       48,000      Stock                      77,000 1,09,000

Proposed dividend             42,000       50,000       Bills receivable      20,000   30,000

Creditors                            55,000       83,000       Cash in hand          15,000    10,000

Bills payable                      20,000       16,000       Cash at bank          10,000      8,000

Provision for taxation        40,000       50,000

—————————                               ———————–

6,77,000     8,17,000                                  6,77,000 8,17,000

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

Additional information;

  1. Depreciation of Rs.10,000 and 20,000 have been charged on plant account and

Land  and building account respectively in2004

  1. An interim dividend of Rs.20,000 has been paid in 2004.
  2. Income tax of Rs.35,000 was paid during the year 2004.

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