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Loyola College M.Com Nov 2006 Management Accounting Question Paper PDF Download

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                        LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com DEGREE EXAMINATION – COMMERCE

AT 27

THIRD SEMESTER – NOV 2006

CO 3806 – MANAGEMENT ACCOUNTING

 

 

Date & Time : 30-10-2006/9.00-12.00   Dept. No.                                                       Max. : 100 Marks

 

 

PART – A

Answer ALL questions                                                                                  (10 x 2 = 20 marks)

 

  1. State the objectives of Management Accounting.
  2. Differentiate Management Accounting from Financial Accounting.
  3. Discuss the uses of cash flow statement.
  4. Bring the differences between Fund flow and Cash flow statement.
  5. What is the significance of “Break Even Point”.
  6. Analyze the limitations of “Ratio Analysis”
  7. Calculate the EPS from the following data Net Profit before Tax Rs.50,000; Tax rate 50%, 10% Preference share capital (Rs.10 each) Rs.50,000. Equity share capital (Rs.10 each) Rs.50,000.
  8. Calculate PV ratio from the following details

Year                Sales (Rs)                    Profit of Loss

2005                2,40,000                      20,000 (Loss)

2006                3,20,000                      40,000 (Profit)

  1. From the following data, calculate overhead cost and budgeted variances.

Budgeted                      Actual

Fixed OH               Rs.3,00,000                      3,20,000

Output in units               30,000                         26,000

Working hours               75,000                         60,000

  1. A Factory produces 2 units of a commodity in one standard hour. Actual production during a particular year is 17,000 units and the budgeted production for the year is fixed at 20,000 units.  Actual hours operated are 8,000 hrs.  Calculate efficiency and activity ratios.

 

PART – B

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

 

  1. “Marginal Costing is a valuable aid for managerial Decisions”. Discuss.
  2. Define Budgetary control and state its advantages.
  3. Calculate cash from operations from the following

(i) Profit made during the year Rs.3,00,000 after considering the following items.

  1. Depreciation of fixed assets Rs.20,000 b) Transfer to General Revenue Rs.10,
  2. c) Amortization of good will Rs.10,000 d) Profit on sale of land Rs.7,000

(ii)  The following is the position of current assets and current liabilities.

Particulars                   I year               II year

Debtors                       15,000             18,000

Creditors                     20,000             10,000

Bills Receivable            7,000               5,000

Prepaid Expenses        10,000               7,000

 

  1. From the following prepare a Balance sheet.
  2. Working Capital Rs.75,000 b) Reserves and Surplus Rs.1,00,000   c) Bank overdraft Rs.60,000   d) Current Ratio: 1.75   e) Liquid Ratio: 1.15     f) Fixed Assets to Proprietor’s Fund 0.75    g) Long – term Liabilities – NIL.

 

 

 

  1. From the following data which product would you recommend to be manufactured in a

factory, time being the key factor.

 

Particulars Per unit of product A

                 Rs.

 Per unit of Product B

                  Rs.
Direct material 24 14
Direct Labour @ Re 1 per hour 2 3
Variable overhead @ 2 p/h 4 6
Selling Price 100 110
Standard time to produce one units 2 hrs 3 hrs

 

  1. You are required to prepare a selling overheads Budget from the estimates given below:

Advertisement Rs.1,000, Expenses of the Sales Department Fixed Rs.750 Salaries Rs.1,000;

Salaries and Dearness Allowance Rs.3,000 Commission at 1% on sales effected, Carriage

outwards; estimated at 5% sales, Agent commission 6.5% on sales.

The sales during the period were estimated as follows:

Rs.80,000 including Agent’s sales Rs.8,000

Rs.90,000 including Agent’s sales Rs.10,000

Rs.1,00,000 including Agent’s sales Rs.10,500.

 

  1. The cost, volume and profit relationship of a company is described by equation

Y =  Rs.3,00,000 + 0.7 X in which X represents sales and Y represents total cost.  Find out

  1. a) PV ratio    b) B.E. sales    c) Sales volume required to earn a profit of Rs.60,000
  2. d) Sales volume when there is a loss of Rs.30,000.

 

 

  1. The standard time and rate for one unit component are given below:
  2. Stand hours 20 b) Standard rate Rs.5 per hour   c) Actual data and related information are as under Actual production 1,000 units.  Actual hours 20,500 hrs, Actual rate per hour Rs.4.80. Calculate labour variances.

PART – C

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

 

 

  1. Following are the summarized balance sheets of Fire stone Ltd as on 31-03-05 and 31.03.06.

 

Liabilities 31.03.05 31.03.06 Assets 31.03.05 31.03.06
Share Capital 2,00,000 2,50,000 Land and Building   2,00,000   1,90,000
General Reserve    50,000    60,000 Machinery   1,50,000   1,69,000
P&L A/c    30,500    30,600 Stock   1,00,000        4,000
Bank Loan (Long Term)    70,000       – Sundry debtors      80,000      64,200
Sundry creditors 1,50,000 1,35,200 Cash          500           600
Provision for Taxation    30,000    35,000 Bank          –        8,000
Good will          –        5,000
5,30,500 5,10,800   5,30,500   5,10,800

 

 

  1. Dividend of Rs.23,000 was paid
  2. Assets of another company were purchased for a consideration of Rs.50,000 payable in shares. The following assets were purchased.

Machinery Rs.25,000 and  Stock Rs.20,000.

  1. Machinery further purchased for Rs.8,000
  2. Depreciation written off against machinery Rs12,000
  3. Income Tax Paid during the year Rs.33,000
  4. Loss on sale of machinery Rs.200 was written off to general Reserve.

You are required to prepare fund flow statement of the year ended 31st march 2006.

 

  1. Summarized below are the income and expenditure of Gemini Ltd for three months of March to August 2006.
Month Sales (all credit)

Rs.

 Purchases (all credit)

Rs

 Wages

Rs.

 Manufacturing expenses

Rs.

 Office expenses

Rs.

 Selling expenses

Rs.
March 60,000 36,000   9,000 4,000 2,000   4,000
April 62,000 38,000   8,000 3,000 1,500   5,000
May 64,000 33,000 10,000 4,500 2,500   4,500
June 58,000 35,000   8,500 3,500 2,000   3,500
July 56,000 39,000   9,500 4,000 1,000   4,500
August 60,000 34,000   8,000 3,000 1,500   4,500

You are given the following further information

  1. Plant costing Rs.16,000 is due for delivery in July payable 10% on delivery and the balance after three months.
  2. Advance Tax of Rs.8,000 is payable in March and June each.
  3. Period of credit allowed (i) by suppliers 2 months and (ii) to customers 1 month.
  4. Lag in payment of manufacturing expenses 1 month.
  5. Lag in payment of all other expenses 1 month

You are required to prepare a cash budget for three months ending July 2006 and the opening cash balance as on 1st May 2006 was Rs.8,000.

 

  1. Calculate all Material Variances from the following information:

 

Material              Standard   Total                 Actual   Total
   Qty Price     Qty    Price
A    500 6.00 3,000   400 6.00 2,400
B    400 3.75 1,500   500 3.60 1,800
C    300 3.80    900   400 2.80 1,120
1,200 1,300
(-) Less Normal Loss 10%  

 

120

  

 

220
 1,080 5,400 1,080 5,320

 

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Loyola College M.Com April 2007 Management Accounting Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

TH 48

M.Com. DEGREE EXAMINATION – COMMERCE

THIRD SEMESTER – APRIL 2007

CO 3806 / 3801 – MANAGEMENT ACCOUNTING

 

 

 

Date & Time: 28/04/2007 / 9:00 – 12:00      Dept. No.                                        Max. : 100 Marks

 

 

PART – A

 

Answer ALL questions                                                                      (10 x 2 = 20 marks)

 

  1. Explain the scope of Management Accounting?
  2. Distinguish between Management Accounting and Cost Accounting.
  3. Illustrate the uses of Cash flow statement.
  4. State the need for working capital.
  5. Discuss the advantages of Zero – base Budgeting.
  6. How do standard cost differ from estimated cost?
  7. Your are required to calculate BEP when Profit Rs.5,000 (20% sales) PV ratio is 50%.
  8. CR. 2.5, working capital Rs.63,000. Calculate current assets and current Liabilities.
  9. Calculate Sales value variance and sales price variance from the following particulars.

Product      Budget qty      Budget price p/u         Actual qty       Actual price p/u

A                 400                    30                                        500                        31

  1. Calculate cash from operations: Net profit for 2005 Rs.25,000 Depreciation Rs.1,000, Prepaid

expenses on   1.1.05 Rs.2,000,  Prepaid expenses on 31.12.05 Rs.1,000.    Outstanding  salary on

31.12.05 Rs.500.

PART – B

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

 

  1. Discuss the Managerial use of Fund Flow statement.
  2. “Ratio Analysis is a tool of management for measuring efficiency and guiding business

policies” Discuss.

 

  1. From the following details, calculate funds from operations.

 

Particulars Rs. Particulars Rs.
Salaries 5,000 Closing balance of P&L a/c 60,000
Discount on issue of debentures 2,000 Opening balance of P&L a/c 25,000
Provision for bad debts 1,000 Transfer to GR    1,000
Rent 3,000 Preliminary expenses written off    3,000
Refund of Tax 3,000 Goodwill written off    2,000
Profit on sale of building 5,000 Proposed dividend    6,000
Depreciation on plant 5,000 Dividend received    5,000
Provision for Tax 4,000
Loss on sale of plant 2,000

 

  1. The capital of Everest co ltd is as follows:

Rs.

9% Preference shares of Rs.10 each               3,00,000

Equity shares of Rs.10 each                            8,00,000

————

11,00,000

————

 

The accountant has ascertained the following information’s:

  1. a) Profit after Tax @ 60% Rs.2,70,000 b) Depreciation Rs.60,000 c) Equity dividend paid 20%   d) Reserves Rs.77,000  e) Market price per equity shares Rs.40.  Calculate  a) Dividend yield on equity shares   b) Cover for preference and equity dividends.  c) Earning per share
  2. d) The price earning ratio e) Dividend pay out ratio f) Book value per share.

 

  1. Assuming the cost structure and selling prices remain the same in periods I and II, Find

out  a) PV ratio  b) BEP sales   (c) Profit when sales are Rs.10,000   d) Sales required to

earn a   profit of Rs.20,000.

Period              Sales                Cost

 

I                       1,20,000          1,11,000

II                     1,40,000          1,27,000

 

  1. Draw a Material Procurement Budget from the following details estimated sales of a

product  40,000 units.  Each unit of the product requires 3 units of material A and 5 units

of material B.

 

Estimate opening balance Material on order
Finished product 5,000 uts —
Material A 12,000 uts Material A 7,000 uts
Material B 20,000 uts Material B 11,000 uts
Estimate closing balance Materials of order
Finished product 7,000 uts ———
Material A 15,000 uts Material A 8,000 uts
Material B 25,000 uts Material B 10,000 uts

 

  1. The standard material and standard cost per kg of material required for the production of

one unit of product A is as follows.

Material – 5 kgs standard price Rs. 5 per kg.  The actual production and related material data

are as follows 400 units of product A, Materials used 22000 kgs Price of Material Rs.4.50 per kg.  Calculate  (a) Material cost Variance   b) Material usage variance   c) Material price variance.

 

  1. From the following data calculate labour variance standard time p.u 2.5 hrs. Actual hours

2,000 standard wages rate Rs. 2 per hour, Actual out put 1,000 uts.  Actual wages

Rs.4,500.   20% of actual time has been lost due to machinery break down.

 

 

 

 

 

 

 

 

 

PART – C

 

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

 

  1. With the help of the following ratios of Edward Ltd draw balance sheet.

Current Ratio 2.5, Liquid Ratio 1.5, Networking capital Rs.3,00,000, stock turnover ratio: 6

times, Gross profit  Ratio 20% Debit collection period 2 months.  Fixed asset Turnover

Ratio: 2 times fixed asset to share holders noteworthy : 0.80

Reserve and surplus to capital  0.50.

Hint: Turn over refers to cost of sales

 

  1. The summaries Balance sheet of kumar Ltd as on 31.3.05 and 31.3.06 are as follows

 

Liabilities 31.03.05 31.03.06 Assets 31.03.05 31.03.06
Share capital 4,50,000 4,50,000 Fixed Assets 4,00,000 3,20,000
General Reserve 3,00,000 3,10,000 Investments    50,000    60,000
P&L a/c    56,000    68,000 Stock 2,40,000 2,10,000
Creditors 1,68,000 1,34,000 Debtors 2,10,000 4,55,000
Tax provision    75,000    10,000 Bank 1,49,000 1,97,000
Mortgage Loan 2,70,000
10,49,000 12,42,000 10,49,000 12,42,000

 

Additional information a) Investments castings Rs. 8,000 were sold for Rs.8,500  b) Tax provision made during the year was Rs.9,000. c) During the year part of the fixed assets costing Rs.10,000 was sold for Rs.12,000 and the profit was including in P&L a/c.  You are required to prepare cash flow statement for the year ended 31.03.2006.

 

  1. The following particulars are taken form the record of a company engaged in manufacturing two products X and Y for a certain raw material

 

Particulars Product X Product Y
Sales 125.00 250.00
Material cost (Rs.2.50 per kg) 25.00 62.50
Wages m(Rs. 15 per hour) 37.50 75.00
Variable over head 12.50 25.00

 

Total fixed over head Rs.50,000.  Comment oh the profitability of each product when

  1. Total availability of raw material is 20,000 kgs and maximum sales potential of each product is 1,000 units Find out the product mix to yield maximum profit.
  2. Total sales value of limited
  3. Labour Time is limited

Production capacity in units is a key factor.

 

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Loyola College B.Com April 2011 Management Accounting Question Paper PDF Download

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

SIXTH SEMESTER – APRIL 2011

CO 6605 – MANAGEMENT ACCOUNTING

 

 

 

Date : 07-04-2011              Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

[

SECTION   A                       (2×10= 20 marks)

Answer all the questions.

  1. What is “Flow of Funds”?
  2. State any FOUR objectives of Financial Statement Analysis.
  3. What are the important features of Marginal Costing.
  4. What is “Key Factor”?
  5. What are the components of “Material Cost Variance”?
  6. Land & Buildings –Rs 6,00,000, Equity Share Capital –Rs 5,00,000,Debentures –Rs4,00,000, Sundry Creditors –Rs 1,50,000,Bank Over-draft –Rs 50,000, Stock –Rs 2,40,000. Debtors –Rs 2,00,000, Cash & Bank –Rs 55,000, Prepaid Expenses –Rs 5,000. From the above particulars Calculate ; (a) Current Ratio  (b) Liquid Ratio.
  7. From the following figures Calculate:  Funds from Operations:

Expenses Paid                            Rs 3,00,000      Net Profit for the year Rs 1,15,800

Depreciation                               Rs    70,000

Loss on sale of Machinery         Rs       4,000

Goodwill written off                  Rs     20,000

Loss on sale of old furniture      Rs          200

Profit on sale of Land &

Building                                     Rs     60,000

  1. Calculate Break-even point from the following Particulars:

Fixed Expenses                          Rs 1,50,000

Variable Cost per unit                Rs   10

Selling Price per unit                 Rs   15

  1. Product X requires 20 kgs of material at Rs 4 per Kg. The actual consumption of

Material for the manufacturing of product X came to 24kgs of material at Rs 4.50

Per kg.    Calculate (a)       Material Cost Variance

(b)      Material Price Variance

(c)      Material Usage Variance

  1. The Standard Time and Rate unit Component are given below:

Standard Hours             20

Standard Rate                Rs 5 per Hour

Actual Production       1,000 units            Actual hours – 20,500 hrs

Actual Rate per hour  Rs 4.80

Calculate: (a)   Labor Cost Variance

  • Labor Efficiency Variance
  • Labor Rate Variance

 

SECTION      B                                  (5x 8 =40 marks)

Answer any FIVE  questions.

  1. What are the Functions of a “Management Accountant”?
  2. What is” Break-Even Analysis”? What are its merits?
  3. Define Zero Based Budgeting? Explain the steps involved in this process.
  4. From the extracts of the Balance Sheet and the additional information provided, you are required to identify how the transactions affect statement showing sources and uses of   funds.

 

 

————————————————————————————————————-                       Particulars                      2009                                  2010

————————————————————————————————————-           Equity Share Capital         Rs 2,00,000                        Rs 3,00,000

Share Premium                  Rs    20,000                        Rs    30,000

9% debentures                 Rs  1,00,000                       Rs  1,50,000

Additional Information:

9% debentures worth Rs 30,000 were redeemed during the year.

  1. The following are the ratios of a trading concern:

Debtors Velocity      – 3 months

Stock Velocity          – 8 months

Creditors Velocity     – 2 months

Gross Profit Ratio       25%

Gross Profit for the year amounted to Rs 4,00,000.

Closing stock of the year is Rs  10,000 more that the opening stock.

Bills receivable   Rs 25,000.  Bills Payable   Rs  10,000.

Find out (a) Sales Tax  (b) Sundry Debtors (c) Closing Stock  (d) Sundry creditors.

  1. Calculate Pay – out Ratio and Retained Earnings Ratio from the following

Information:

Net Profit                                  Rs  10,000

Provision for Tax                      Rs    5,000

Preference Dividend                  Rs   2,000

Number of Equity Shares           3000 shares

Dividend for Equity Share          Re. 0.40

  1. The Statement of Cost of an article is as follows:

Material                          Rs   200

Labor                              Rs   100

Variable Expenses         Rs      25

Fixed Expenses              Rs     75

Profit                             Rs    125

Selling Price                   Rs    525

The number of articles made and sold are  10,000 units.

Find out: (a)  Break – even Point

(b) How many articles must be produced and sold if the selling price is reduced by Rs 25 and the same profit is maintained.

 

  1. Prepare a Production Budget for each month and a summarized Cost Budget for the six months period ending 31st Dec 2009 from the following information of

“ Product ‘X””.

  • There will be no work -in -progress at the end of any month.
  • Finished Units equal to half the sales for the next month will be in Stock at the end of each month ( including June 2009)
  • The Units to be sold for different months are as follows:

MONTH                                           UNITS

July   2009                                      1,100

August   2009                                      1,100

September   2009                                      1,700

October      2009                                      1,900

November   2009                                       2,500

December    2009                                      2,300

January       2010                                     2,000

  • Budget Production and Production Costs for the year ending 31st Dec 2009 are as follows:

Production  (Units)            22,000

Direct Material per Unit      Rs 10

Direct Wages per Unit         Rs  4

Total Factory overhead apportioned to Product  Rs 88,000.

 

SECTION   C          (2x 20= 40marks)

Answer any TWO  questions.

19 .——————————————————————————————————————LIABILITIES                2009             2010                       ASSETS           2009             2010

Rs                Rs                                                         Rs                Rs

Share Capital                2,00,000         3,00,000           Buildings at cost       1,50,000      2,30,000

Share Premium                                                             Plant& Machinery

Capital Reserve             —                     10,000            at Cost                      2,60,000      3,20,000

Profit on Redemption                                                   Less: Depreciation       85,000          95,000

Of Debentures                   —–                 1000                                            —————————–                                                                                                                      1,75,000      2,25,000

Profit &Loss  a/c                                                          Shares in Subsidiary

Bal b/f                            40,000              40,000          Company                       20,000         20,000

Profit for the year                                    45,000          Current Assets ;

5% Debentures            1,00,000              75,000           Stock                           45,000         49,000

Current Liabilities;                                                        Sundry Debtors           15,000         18,000

Sundry creditors            60,000             1,04,000          Bank                            25,000         48,000

Taxation                         20,000                  5,000

Proposed Dividend         10,000               10,000

4,30,000            5,90,000                                          4,30,000        5,90,000

Additional Information:

During the year 2010, Plant Costing Rs 15,000 (Accumulated depreciation there on Rs 8,000) was sold for Rs 5,000.

Prepare Funds Flow Statement.

  1. From the following information, you are required to prepare a Balance Sheet.

(a)  Current Ratio              1.75

(b)  Liquid Ratio                1.25

(c)  Stock Turn-over Ratio –( Cost of Sales/Closing Stock) –  9.

(d)  Gross Profit Ratio       25%

(e)  Debt Collection Period 1 1/2 Months

(f)   Reserves and Surplus to Capital       0.2

(g)  Turn Over to Fixed Assets – ( based on Cost of Sales) – 1.2.

(h)  Capital Gearing Ratio     – 0.6

(i)   Fixed Assets to Net Worth    1.25

(j)   Sales for the year  –  Rs 12,00 000

 

  1. The Cost of an Article at a Capacity level of 5,000units is given below. The Degree of variability of the individual expenses are also given:

PARTICULARS                       RS                       (VARIABILITY)

 

Material Cost                                25,000                      ( 100% Varying)

Labor Cost                                   15,000                      ( 100% varying)

Power                                          1,250                      ( 80% varying)

Repairs and Maintenance               2,000                      ( 75%  varying)

Stores                                        1,000                      (  100% varying)

Inspection                                          500                       ( 20%  varying)

Depreciation                                 10,000                        ( 100% varying)

Administrative Overheads              5,000                        ( 25% varying)

Selling Overheads                          3,000                         (25% varying)

————————-

62,750

————————-

Cost Per Unit  = Rs 12.55

Find out the  Unit Cost of the Product at the Production Levels of  4,000 units and 6,000 units.

 

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Loyola College B.Com April 2012 Management Accounting Question Paper PDF Download

by

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.Com. DEGREE EXAMINATION – COMMERCE

SIXTH SEMESTER – APRIL 2012

CO 6605 – MANAGEMENT ACCOUNTING

 

 

 

Date : 18-04-2012              Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

PART – A

Answer ALL questions:                                                                                          (10×2=20marks)

 

  1. What is a “Master Budget”?
  2. What are “Funds”?
  3. What is “Marginal Costing”?
  4. What are some of the “Liquidity Ratios?”
  5. What is “Key Factor”?
  6. Calculate Current Ratio from the following information:

Rs.                                                                                  Rs.

Stock                        60,000                       Sundry Creditors              20,000

Sundry debtors         70,000                       Bills Payable                         15,000

Cash Balance           20,000                       Tax Payable                          18,000

Bills Receivable        30,000                      outstanding expenses              7,000

Prepaid expenses     10,000                       Bank Overdraft                      25,000

Land & Building      1,00,000                      Debentures                            75,000

Good will                   50,000

 

  1. Specify how the following transactions will appear in the statement showing sources and uses of funds:
  2. a) Stock of Raw materials purchased for Rs 3,00,000
  3. b) Sundry Creditors paid Rs 2,50,000 by cheque.
  4. c) Purchased Goodwill of another company for RS 4,50,000
  5. d) Shares issued for Rs 3,00,000 to public.
  6. e) Debentures redeemed for Rs 4,00,000
  7. f) Purchased machinery worth Rs 3,50,000 and settlement made by issuing shares in

the company.

  1. g) Long term loan repaid Rs 3,00,000.
  2. Determine the amount of fixed expenses from the following particulars:

Rs.

Sales                              2,50,000

Direct material                   80,000

Direct Labour                    50,000

Variable Overhead            20,000

Profits                                60,000

  1. ”Product X” requires 20 kgs of materials at Rs 4 per Kg. The actual consumption of

material for the manufacturing of “Product X” came to 24 kgs at Rs 4.50/ per kg.

Calculate :

  1. Material cost Variance
  2. Material Price Variance
  3. Material Usage Variance

 

  1. You are required to calculate :
  2. a) P/ V Ratio (b) Sales to earn a profit of Rs 40,000.

The following information is given:

Sales                   Rs 1,00,000

Profit                          10,000

Variable Cost    70% of Sales.

 

PART – B

 

Answer any FIVE questions:                                                                                 (5×8=40marks)

 

  1. What is Zero Base Budgeting? What are the steps involved in the process of introducing Zero Base budgeting in an Organization?
  2. What are the important advantages of “Ratio Analysis”?
  3. What is “Funds Flow Statement”? What purpose does “Funds Flow Statement” serve?
  1. From the following information given on 31st March 2005, calculate “Funds from

Operations

  1. a) Profit on Sale of Building 35,000
  2. b) Goodwill appearing in the books     1,80,000,out of that 10% has been written off

during the year.

  1. c) Rs.1,25,000 has been transferred to general Reserve.
  2. d) Old furniture worth Rs 8,000 has been sold for Rs 6,500 during the year.
  3. e) Depreciation provided during the year on Machinery at 20%, the cost of machinery in

the books Rs 6,50,000.

  1. f) Net profit for the year amounted to Rs 6,50,000.
  2. From the following information calculate:
  3. a) Mix Variance
  4. b) Revised usage Variance
  5. c) Usage Variance

STANDARD                                                         ACTUAL

Material A 60units @Rs 5 per unit                          Material A 80units @Rs 4 per unit

Material B 40units @Rs 10per unit                         Material B 40units @Rs 12perunit

—–                                                                           —–

 

100units                                                                    120units

 

  1. Calculate Current Assets from the following information:
  2. a) Sales (all credit) 2,00,000
  3. b) Gross Profit Ratio 20%
  4. c) Stock Turnover 5 times.
  5. d) Current Liabilities  60,000.
  6. e) Quick Ratio – 0.75

Stock at the end is Rs 5,000 more than the stock in the beginning.

  1. From the following particulars calculate :
  2. a) Number of units to be sold to earn a profit of Rs 1,20,000.
  3. b) Sales to earn a profit of Rs 1,20,000.

Selling price per unit                                           Rs. 40

Variable selling cost per unit                              Rs.   3

Variable manufacturing cost per unit                  Rs. 22

Fixed factory overheads                                     Rs. 1,60,000

Fixed selling cost                                                Rs. 20,000

 

  1. The Sales manager of a manufacturing Co. reports that he is expecting to sell 40,000

units of a particular product. Production Department gives the following figures:

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

The production requires 3units of Material A and 2 units of Material B.

Estimated Opening Balances:

Finished Product                  10,000units

Material A                            12,000units

Material B                            15,000units

Desirable closing stock:

Finished Product                   10,000units

Material A                              14,000units

Material B                              15,000units

Draw up a materials purchase budget.

 

PART – C

 

Answer any TWO  questions:                                                                             (2X20-40marks)

 

  1. The following is the summarized Balance Sheet of Good Luck Ltd for the year 2003 &

2004.

Liabilities                   2003              2004               Assets                   2003                2004

Equity share           2,00,000         2,40,000         Land &Building     1,05,000           1,50,000

Capital

8%Debentures           50,000             –                Plant %Machinery   2,90,000          3,20,000

(at cost)

Share Premium             —                10,000         Furniture @ cost        9,000               10,000

Gen Reserve               30,000          50,000       Inventories               1,30,000          1,05,000

P%L a/c                      48,000         68,000        Sundry Debtors            75,000            85,000

Sundry

Creditors                 1,30,000        1,50,000

Proposed                                                           Cash                         15,000               26,000

Dividend                      20,000          24,000

Provision for

Depreciation:

Plant&Machinery   1,40,000        1,50,000

Furniture                     6,000             4,000

6,24,000          6,96,000                                       6,24,000            6,96,000

 

Additional Information:

  1. Furniture which cost Rs 5,000, written down value Rs 1,000. was sold during the year 2004 for Rs 2,000.
  2. Plant and Machinery which costs Rs 20,000 and in respect of which Rs 13,000 had been written off as depreciation was sold during the year 2004 for Rs 3,000.
  3. The Dividend of 2003 was paid during 2004.
  4. Prepare Funds Flow Statement.

 

  1. From the following information, you are required to construct a Balance Sheet. You are

required to show detailed workings.

Working Capital                                             Rs.    75,000

Reserves and surplus                                     Rs. 1,00,000

Bank overdraft                                                Rs.    60,000

Current Ratio                                                               1.75

Liquid Ratio                                                                  1.15

Fixed Assets to

Proprietors Fund                                                            0.75

Long term Liabilities                                                      Nil

  1. The information regarding the composition and hourly wage rates of labour force

engaged in a job scheduled to be completed in 30 hours are as follows:

 

Category  of workers                  Standard                                            Actual

No. Of workers     Hourly wage rate          No.of workers           Hourly wage rate

Per worker                                                     per worker

Skilled                  75                             6                              70                                7

Semi-skilled          45                            4                              30                                5

Un-skilled              60                            3                              80                                2

 

The work was completed in 32 hours .

Calculate labour Variances.

 

 

 

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Loyola College B.Com Nov 2012 Management Accounting Question Paper PDF Download

by

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

B.com., DEGREE EXAMINATION –  COMMERCE

SIXTH SEMESTER – NOVEMBER 2012

CO 6605- MANAGEMENT ACCOUNTING

 

 

 

Date : 01/11/2012             Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

PART A

 

Answer ALL questions                                                                                            (10×2=20 marks)

 

  1. What is margin of safety?

 

  1. What do you mean by Limiting factor?

 

  1. State the formula for Earnings per share and Price Earnings ratio.

 

  1. Fill in the blanks:
  2. a) Labour cost variance is sub-divided into …………….variance and ………..variance.
  3. b) …………..minus Fixed cost is profit.

 

  1. State whether the following statements are TRUE or FALSE.
  2. a) Profit volume ratio  will change if the quantity sold changes.
  3. b) Machinery purchased and paid for in shares will affect fund flow statement.

 

  1. Budgetted fixed overheads Rs,40,000, budgeted production 20,000 units. Actual fixed overheads Rs.48,000; Actual production Rs.19,000. Calculate overhead volume and expenditure variance.

 

  1. Credit sales for January, February and March are Rs.1 lakh, Rs.1.20 lakhs and Rs.1.50 lakhs respectively. 20% of debtors are collected in the month of sales. 30% in the month following the sales and 50% in the second month following the sales. Calculate the amount collected from the debtors in the month of March.

 

  1. A Ltd reports the following data relating to debtors:

Net credit sales during 2006                        Rs.31 lakhs

Debtors on 31/12/2006                             Rs.4,16,000

Compute accounts receivable turnover and the collection period.  (No. of days 365)

 

  1. Budgetted production and overhead cost for two capacity levels are given below:

Budgetted productions Units                     2000             3000

Indirect material (Rs.)                            10000           15000

Depreciation                                         4000             4000

Maintenance                                         2000             2200

Calculate overhead cost for a production of 5000 units.

 

  1. Sales Rs.2,00,000; Cost of goods sold Rs.1,20,000; Operating expenses Rs.40,000. Calculate operating ratio and operating profit ratio

 

PART  B

 

Answer ANY FIVE questions                                                                     Marks:5×8=40

 

  1. Discuss the merits and limitations of Ratio Analysis.

 

  1. Distinguish between Management Accounting and Financial Accounting.

 

 

  1. The following data for the quarter ended 31st March 2012 is given to you:

Budgetted production 4000 units, Material Rs.20,000, Wages Rs.32,000, Factory overheads Rs.36,000 (4/9 fixed). It is anticipated that production will increase by 25% in the second quarter. Material prices are expected to reduce by 50p per unit. Labour rates are expected to increase by Rs.1.50 per unit. Fixed overheads remains constant, but Variable overheads is expected to increase by Re.1 per unit. Prepare a Production Cost Budget for the second quarter of 2012.

 

  1. From the following P/L statement compute fund from operations:

Sales                                                   Rs.60,000

Dividend received                                  Rs.  3,000

Interest on investments                          Rs.  3,000

Total income                                         Rs.66,000

Less: expenses:

Purchases               Rs.50,000

Salaries                  Rs.  7,000

Depreciation            Rs.  2,000

Goodwill w/o            Rs.  1,000

Preliminary expenses Rs.    500

Discount on shares    Rs.  1,500

Total expenses                                      Rs.70,000

Net loss                                               Rs.  4,000

 

  1. The following details relate to two products A and B.

A                 B

Selling price per unit(Rs.)              200              500

Material at Rs.20/kg                      40                160

Labour at Rs.10/hour                    50                100

Variable overheads (Rs.)               20                40

The total fixed overheads are Rs.50,000. Comment on the profitability of each product when,

  1. a) raw material is in short supply.
  2. b) sales in quantity is limited.
  3. c) if the company has only 4000 kgs of raw material and the maximum demand of product A is 1000 units and that of B is 1800 units, determine the most profitable sales mix and the profit for that level of sale.

 

  1. Prepare a Balance sheet from the following data:

Gross profit ratio                                   20%

Debtors turnover                                   6 times

Fixed assets to Shareholders’ funds           0.80

Reserves to Capital                                0.50

Current ratio                                         2.50

Liquid ratio                                           1.50

Net working capital                                Rs.300000

Stock turnover ratio                               6 times

 

  1. The following is budgeted cost per unit for the production of 5000 units at 50% capacity.

Material                                    Rs.20

Labor                                       Rs.10

Factory overheads                      Rs.  5 (20% fixed)

Administration overheads              Rs.  4 (fixed)

Selling overheads                        Rs.  2 (40% variable)

Prepare a budget for a production of 8,000 units and calculate the budgeted profit, if the selling price is Rs.50 per unit.

  1. Draw a Material Procurement Budget (in quandities) From the following information:

Estimated Sales of a product 40,000 units.  Each unit of the product requires 3 units of material

‘A’ and 5 units of material ‘B’ .

 

Opening stock (units) Closing stock (units)
Finished Stock 5,000 7,000
Material A 12,000 15,000
Material B 20,000 25,000
Materials on order:

A:

B:

  

7,000

11,000

  

5,000

10,000

PART  C

 

Answer ANY TWO questions                                                                     Marks:2×20=40

 

  1. The sales and profit of M Ltd for 2 years were as follows:

Year                       Sales(Rs.)                         Profit(Rs.)

2006                      1,50,000                             20,000

2007                      1,70,000                              28,000

Assuming that selling price per unit, variable cost per unit and the total fixed cost for the two years remain the same, calculate:

  1. PV ratio
  2. Break even sales
  3. Sales to earn a profit of Rs.40,000
  4. Profit when sales are Rs.2,60,000
  5. Margin of safety when profit is Rs.50,000
  6. New break even sales when selling price is reduced by 20%.

 

  1. The standard cost for manufacturing 100 kgs of product X consist of:

Material  A 80 kgs at Rs.2.50 per kg.

Material B 20 kgs at Rs.4 per kg

Material C 20 kgs at Re.1 per kg

During the month of January, 2000 kgs of Product X were produced.  The actual materials used were as follows:

Material A 1,500 kgs at Rs.2.40 per kg

Material B 400 kgs at Rs.4.20 per kg

Material C 500 kgs at Rs.1.10 per kg

Calculate material variances.

 

  1. The following are the Balance Sheets of ABC Ltd.

 

  31/12/2010

Rs.

 31/12/2011

Rs.

 31/12/2010

Rs

 31/12/2011

Rs.
Share capital

P/L Account

Term Loans

Creditors

Tax provision

Prop. dividend

  3,00,000

4,90,000

5,00,000

70,000

86,000

24,000

14,70,000

  3,50,000

6,96,000

2,00,000

58,000

1,02,000

30,000

14,36,000

 Fixed Assets

Investment

Stock

Debtors

Bank

Cash

 13,36,000

20,000

20,000

33,000

50,000

    11,000

14,70,000

 

 12,78,000

–

24,000

57,000

44,000

     33,000     

14,36,000

 

 

  1. a) Depreciation on Fixed assets provided during the year Rs.110,000.
  2. b) A fixed asset whose Book Value is Rs.25,000 was sold for Rs.12,000.
  3. c) Income tax paid during the year was Rs.75,000.
  4. d) Interim dividend paid during the year Rs.25,000.
  5. e) Proposed dividend of 2010 was paid in 2011
  6. f) Investments were sold for Rs.25,000

Prepare Fund Flow Statement.

 

 

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