Loyola College B.B.A. Business Administration April 2009 Management Accounting Question Paper PDF Download

October 13, 2017 by 01 prakash

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)

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

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

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

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

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

PART – B

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

Distinguish between Management Accounting and Financial Accounting.
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.

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

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.

Write short notes on the following.
Zero based budget b) Budgetary control c) Control ratios.
Following particulars are taken from the records of a company, calculate:
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

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
	—————		—————

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)

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

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.

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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Loyola College B.B.A. Business Administration April 2011 Management Accounting Question Paper PDF Download

October 13, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

SIXTH SEMESTER – APRIL 2011

BU 6603/BU 6600 – MANAGEMENT ACCOUNTING

Date : 09-04-2011 Dept. No. Max. : 100 Marks

Time : 9:00 – 12:00

PART – A

ANSWER ALL THE QUESTIONS: (10 x 2 = 20 marks)

What is Management Accounting?
What is ratio analysis?
What is Cash Budget?
What is fund flow statement?
What is contribution?
Give the formula for Earnings Per Share.
What is direct labour cost variance?
Ganesh purchased and used 800 tons of a chemical at Rs. 40 per ton whereas the standard price fixed was Rs.48 per ton. Calculate material price variance.
A company shows the trading results for two periods.

Period

Sales

Rs.

Profit

Rs.

10,000

400

20,000

1,000

Calculate profit volume ratio.

From the following information, calculate Fixed overhead

cost variance.

	Standard	Actual
Production in units	4,000	3,800
Fixed overheads	Rs.40,000	Rs.39,000

PART – B

ANSWER ANY FIVE QUESTIONS: (5 x 8 = 40 marks)

Explain the functions of Management Accounting.
You are required to prepare a production budget for the half year ending June 2000 from the following information:

Product	Budgeted sales quantity	Actual stock on 31-12-99	Desired stock on 30-6-2000
	Units	Units	Units
S	20,000	4,000	5,000
T	50,000	6,000	10,000

Find out fixed assets and gross profit from the following information:

Sales Rs. 10,00,000

Gross profit ratio 25%

Fixed assets turnover ratio (on cost of sales) 5 times.

Find out the funds from operations from the details given below:

	Rs.
Net profit for the year 2006-2007	95,000
Depreciation charged on Fixed assets	42,000
Profit on Sale of Long term Investments included in the P&L A/C	13,000
Goodwill written off	20,000

You are asked to compile a working capital statement from the following details:

Particulars	1-1-1999 Rs.	31-12-1999 Rs.
8% Debentures	40,000	40,000
Outstanding rent	8,000	12,000
Cash in hand	4,000	8,000
Cash at bank	12,000	15,000
Accounts payable	20,000	26,000
Machinery	25,000	16,000
Accounts receivable	30,000	34,000
Prepaid commission	4,000	–
Inventories	22,000	27,000
Share premium	15,000	15,000
Equity share capital	50,000	50,000

What are the advantages of ratios?

From the following information relating to Palani Bros. Ltd., you are required to find out

P/V Ratio (b) Break even point (c) Profit (d) Margin of safety (e) Volume of sales to earn profit of Rs.6,000.

Rs.

Total fixed costs 4,500

Total variables costs 7,500

Total sales 15,000

Calculate material cost variance, material price variance and material usage variance from the following data:

Standard Actual

Quantity 400 kgs 460 kgs

Price Rs.2 per kg Rs. 1.5 per kg

Value Rs. 800 Rs. 690

PART – C

ANSWER ANY TWO QUESTIONS: (2 x 20 = 40 marks)

Kunal Products produces and sells a product for which total capacity of 2,000 units exists.

The following expenses are for the production of 1,000 units of the product which is sold at Rs. 130 per unit.

Per Unit

Rs.

Direct materials 20

Direct Wages 30

Administration overheads (constant) 20

Selling expenses (50% fixed) 10

Distribution expenses (25% fixed) 20

100

You are required to prepare a flexible budget for the production and sale of 1,200 units, 1,600

units and 2,000 units, showing clearly the marginal (variable) cost and total cost at each level.

The following is the Comparative Balance Sheets of Pratima & Co.Ltd. as on 30^th June 1987 and 30^th June 1988.

Balance Sheet

Liabilities	30-6-1987 Rs.	30-6-1988 Rs.	Assets	30-6-1987 Rs.	30-6-1988 Rs.
Share capital	1,80,000	2,00,000	Goodwill	24,000	20,000
Reserve Fund	28,000	36,000	Buildings	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
Provision for Taxation	32,000	34,000	Debtors	40,000	44,400
Provision for doubtful debts	3,800	4,200	Cash	13,200	30,400
	3,11,200	3,11,600		3,11,200	3,11,600

Additional Information:

Depreciation charged on machinery Rs. 10,000 and on buildings Rs. 8,000.
Investments sold during the year Rs. 3,000.
15,000 interim dividend paid during January 1988.
Taxes paid during the year Rs. 30,000.

Prepare (a) a statement of changes in working capital.

(b) a funds flow statement.

A company manufactures a particular product the standard material cost of which is Rs.10 per unit. The following information is obtained from the cost records.

Standard mix

Material Quantity Rate Amount

Units Rs. Rs.

A 70 10 700

B 30 5 150

100 850

Loss 15% 15 —

85 850

Actual results for January 1987:

Material Quantity Rate Amount

Units Rs. Rs.

A 400 11 4,400

B 200 6 1,200

600 5,600

Loss 10% 60 Nil

540 5,600

Calculate: (1) Material price variance (2) Material mix variance (3) Material usage variance (4) Material yield variance (5) Material cost variance.

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Loyola College B.B.A. Business Administration April 2012 Management Accounting Question Paper PDF Download

October 13, 2017 by 01 prakash

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

SIXTH SEMESTER – APRIL 2012

BU 6603/BU 6600 – MANAGEMENT ACCOUNTING

Date : 20-04-2012 Dept. No. Max. : 100 Marks

Time : 1:00 – 4:00

PART – A

ANSWER ALL THE QUESTIONS: (10 X 2 = 20 marks)

What are the tools of management accounting?
Give the meaning of the term: Window Dressing.
State two reasons for preparing cash budget.
What is the significance of liquidity ratios?
Why Net Working Capital is computed?
What is margin of safety?
Calculate P/v ratio given that sale is Rs. 30,000 and fixed cost Rs. 15,000, contribution- Rs.12,000.
Compute Pay out Ratio: Net Profit-Rs.80, 000, Provision for Tax-40,000, Preference Dividend- Rs.10, 000, No. of equity Shares- 30,000, dividend per Equity Share-0.45.
Calculate the Material Usage variance.

STANDARD

ACTUAL

5 Kg. per unit

Rs5 per Kg

400 units are produced

2200 Kg consumed

What is FFO?

PART – B

ANSWER ANY FIVE QUESTIONS: (5X8=40 Marks)

Discuss the importance of budgeting.
What are the uses of marginal costing as a tool for managerial decision making?
How Fund Flow Statement is different from a Balance Sheet?

The Sales turnover and profit during two years were as follows

Year Sales Profit

Rs. Rs.

1991 1,40,000 15,000

1992 1,60,000 20,000

Calculate (a) P/V Ratio (b) Break even point (c) Sales required to earn a profit of

Rs.40, 000 (d) Fixed Expenses (e) Profit when Sales are Rs.1, 20,000(f) Margin of Safety.

A Factory is now Producing 10,000 units, costing information relating to the same are furnished below:

Per unit

Rs.

Direct material 70

Direct labour 25

Variable overheads 20

Fixed overheads

(Rs.1, 00,000) 10

Variable overheads (direct) 5

Selling expenses (10% fixed) 13

Distribution expenses (20% fixed) 7

Administration expenses (Rs.50, 000) 5

Total cost per unit – 155

Prepare a flexible budget for the production of 7500 units.

Calculate sales Value variance and sales price variance.

Particulars	Standard			Actual
	Qty.	S.P.	Total	Qty.	S.P.	Total
Product A	500	5.00	2500	625	5.4	3375
Product B	700	8.00	5600	875	8.2	7175

Calculate 1. Current assets, 2. Current liabilities, 3. Liquid Assets and Stock from the following data:

Current Ratio: 2.8

Acid-test Ratio: 1.5

Working Capital – Rs.1,62,000.

The summarized Balance Sheets of Ms.Kiruba & Co as on 31-12-2010 and 31-12-2011 are furnished, prepare a Schedule of changes in Working Capital.

LIABILITIES	2010	2011	ASSETS	2010	2011
Share capital	12,00,000	16,00,000	Plant and machinery	8,00,000	12,00,000
Debentures	4,00,000	6,00,000	Land and building	6,00,000	8,90,000
P& L a /c	2,50,000	5,00,000	Stock	6,00,000	7,00,000
Creditors	2,30,000	1,80,000	Bank	40,000	80,000
Bad & Doubtful debts	12,000	6,000	Preliminary expenses	14,000	12,000
Depreciation on land & building	40,000	48,000	Debtors	1,38,000	1,22,000
Depreciation on plant & Machinery	60,000	70,000
	21,92,000	30,04,000		21,92,000	30,04,000

PART – C

ANSWER ANY TWO QUESTIONS: (2X20=40)

Prepare a cash budget, for the month of April, May and June 2010.

Month	Sales	Purchases	Wages	Miscellaneous Expenses
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:

Cash Balance: as on 1^st April Rs.1, 00,000.
Sales: 20% realized in the month of sales, remaining in the subsequent month.
Purchases: These are paid in the month following the month of supply.
Wages: are paid in the same month.
Miscellaneous expenses: Paid a month in arrears
Rent: RS.1, 000 per month to be paid.
Income-tax: First installment of advance tax Rs.25, 000 due on 15^th June
Income from Investments: Rs.5, 000 to be received in April, July.

The following information is available from the records of AERO COOL Ltd. Prepare a Profit and loss account and the Balance sheet as on 31^st

Current ratio – 1.75
Acid-test ratio- 1.27
Working capital- Rs.33,000
Fixed Assets to shareholders equity – 0.625
Inventory turnover (based on Closing Stock) – 4 times
Gross profit ratio- 40%
Earnings per share – Re.0.50
Debt collection period – 73 days
of shares issued – 20,000
Return on Investment – 25%

From the following balance sheet of a company prepare a Statement showing the fund Flow.

Liabilities	2005	2006	Assets	2005	2006
Share capital	1,00,000	1,25,000	Land & building	1,00,000	95,000
General reserve	25,000	30,000	Plant & machinery	75,000	84,500
P&L a/c	15,250	15,300	Inventories	50,000	37,500
Bank loan	35,000	–	Sundry debtors	40,000	32,000
Creditors	75,000	67,500	Cash	250	300
Provision for taxation	15,000	17,500	Bank	–	4,000
			Goodwill	–	2,000
	2,65,250	2,55,300		2,65,250	2,55,300

Additional information:

Dividend of Rs.11,000 was paid during 2006.
Depreciation written off – Rs.7,000.
A provision of Rs.16,500 was made on taxation.

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