Loyola College Management Accounts Question Papers Download
Loyola College B.Com Corporate & Secretaryship April 2008 Management Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP
|
SIXTH SEMESTER – APRIL 2008
BC 6600 / CR 6600 – MANAGEMENT ACCOUNTS
Date : 16/04/2008 Dept. No. Max. : 100 Marks
Time : 9:00 – 12:00
SECTION A
Answer ALL questions 10 x 2=20
- Define Management Accounting.
- Distinguish between ‘fixed budget’ and ‘flexible budget’
- Write a short note on Current Ratio
- What is a ‘Funds Flow Statement’?
- What is working capital?
- Sales-Rs. 1,00,000, Profit-Rs. 10,000,Variable cost-70% of sales. Find out
P/V Ratio.
- Standard time per unit 2 hrs, Standard rate per hour Rs. 3, Actual output 80 units,
Total Actual time taken 150 hours, Actual Rate per hour Rs. 3.50. Compute DLCV
(Direct Labour Cost Variance).
- Calculate the Operating Profit Ratio from the following figures,
Sales-Rs. 70,000, Production expenses-Rs. 35,000, Administration expenses-Rs.
10,000,Interest expenses-Rs. 5,000,
- A Company realized Rs. 20,000 from its debtors. The total current assets before
the realization was Rs. 3,00,000. What is the total of current asset after the realisation
from debtors.
10.Write the formula to calculate Stock Turnover ratio.
SECTION B 5 x 8=40
Answer any FIVE questions.
- Explain the uses and limitations of ratio analysis.
- Explain any four applications of marginal costing in Managerial decision making.
- What is Budget? Enumerate the advantages of budgetary control .
- The sales director of a manufacturing company reports that next year he expects
to sell 50,000 units of a particular product.
The production manager consults the store keeper and casts his figures as follows:
Two kinds of raw materials, A and B are required for manufacturing the product.
Each unit of the product requires 2 units of A and 3 units of B. The estimated opening
Balances at the commencement of the next year are:
Finished Product : 10,000 units,
Raw Material A : 12,000 units, B – 15,000 units,
The desirable closing balances at the end of the next year are:
Finished product : 14,000 units; A-13,000 units, B-16,000 units.
Draw up a Materials Purchase Budget for the next year.
- The Sales Turnover and Profit during two years were as follows:
Year Sales Profit
Rs. Rs.
2006 1,50,000 20,000
2007 1,70,000 25,000
You are required to calculate: (i) P/V Ratio, (ii) Break-Even Point, (iii) The Sales
Required to earn a profit of Rs. 40,000, (iv) The profit made when sales are
Rs. 2,50,000
- Item Budget Actual
Number of working days 20 22
Man hours per day 8,000 8,400
Output per man-hour in units 1 1.2
Total Units of output 1,60,000 2,21,760
Standard overhead rate per-man hour Rs. 0.10
From the above information calculate: (i) Volume variance, (ii) Efficiency variance,
And (iii) Calender variance.
- With the following data for a 60% activity, Prepare a flexible budget for production
At 80% and 100% activity.
Production at 60% activity 600 units
Materials Rs. 100 per unit
Labour Rs. 40 per unit
Expenses Rs. 10 per unit
Factory expenses Rs. 40,000(40% fixed)
Administration expenses Rs. 30,000(60% fixed)
- You are required to calculate:
- i) Debtor’s Turnover ratio, ii) Creditor’s Turnover ratio, iii) Stock Turnover ratio
The information available is as under:
Total Sales for the year Rs. 1,00,000
Cash Sales for the year 20,000
Debtors 15,000
Bills Receivable 5,000
Credit Purchases 1,00,000
Creditors 25,000
Gross Profit 50,000
Average stock 10,000
SECTION C 2 x 20=40
Answer any TWO questions
- From the following Balance Sheets of X Ltd. on 31-12-2005 and 2006 you are
required to prepare (a) A schedule of changes in working capital, (b) A Funds
Flow Statement.
Liabilities 2005 2006 Assets 2005 2006
Rs. Rs. Rs. Rs.
Share capital 1,00,000 1,00,000 Goodwill 12,000 12,000
General Reserve 14,000 18,000 Buildings 40,000 36,000
Profit & Loss A/c 16,000 13,000 Plant 37,000 36,000
Sundry Creditors 8,000 5,400 Investments 10,000 11,000
Bills Payable 1,600 1,400 Stock 30,000 23,400
Provision for Taxation 16,000 18,000 Debtors 20,000 22,400
Cash 6,600 15,200
1,55,600 155,800 1,55,600 1,55,800
The additional information has also been given.
- Depreciation charged on plant was Rs. 4,000 and on Building Rs. 4,000.
- Provision for taxation of Rs. 19,000 was made during the year 2006
- Dividend of Rs. 8,000 was paid during the year 2006
- A Company expects to have Rs. 37,500 cash in hand on 1st April,2008 and requires
You to prepare a Cash Budget for the three months from April to June 2008. The
following information is supplied to you.
Sales Purchases Wages Office expenses
February 75,000 45,000 9,000 18,000
March 84,000 48,000 9,750 18,750
April 90,000 52,500 10,500 20,250
May 1,20,000 60,000 13,500 23,820
June 1,35,000 60,000 14,250 28,000
Other information:
- Period of credit allowed by suppliers – 2 months,
- 20% of sales is for cash and period of credit allowed to customers for credit
Sales is one month
- Delay in payment of office expenses -1 month,
- Income tax of Rs. 57,500 is due to be paid on June 15, 2008
- The Company is to pay dividends to share holders of Rs. 37,500 in the month of April.
21 . The Standard cost of a chemical mixture is as under:
4 tons of Material X at Rs. 20 per ton,
6 tons of Material Y at Rs. 30 per ton,
Standard yield is 90% of input,
Actual Cost for a period is as under:
4.5 tons of material X at Rs. 15 per ton,
5.5 tons of material Y at Rs. 34 per ton ,
Actual Yield is 9.1 tons.
Compute (a) Material Price Variance, (b) Material Usage Variance,
(c) Material Mix Variance, and (d) Material Yield Variance.
Loyola College B.Com Corporate & Secretaryship April 2009 Management Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – CORPORATE SECRETARYSHIP
|
SIXTH SEMESTER – April 2009
BC 6600 – MANAGEMENT ACCOUNTS
Date & Time: 18/04/2009 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
PART A
Answer ALL questions: Marks: 10 x 2=20
Explain the following:
- Margin of safety
- Fund from operation
- Gang composition variance
- Earnings per share
- Limiting factor
- Zero base budget
- Budgeted overheads Rs.50000
Budgeted production 10000 units
Actual overheads Rs.54000
Actual production 11000 units
Calculate overhead volume and expenditure variance
- Sales Rs.1,00,000; margin of safety is 40% and PV ratio is 20%. Calculate Fixed cost.
- Opening stock Rs.5000; closing stock Rs.9000; Purchases Rs.81,000.
Calculate Stock turnover ratio.
- Current ratio is 2. State whether the current ratio will increase, decrease or remain unchanged in each of the following cases:
- Creditors are paid out
- Stock is purchased on credit
- Cash collected from debtors
- Stock purchased by issue of shares
PART B
Answer ANY FIVE questions Marks: 5×8=40
- The following details relate to product ‘X’ for the month of March. You are required to compute the material and labour cost variances.
Standard cost per unit:
Material 50 kgs at Rs.40 per kg
Labour 400 hours at Re.1 per hour
Actual cost for the month:
Material 4,900 kgs at Rs.42 per kg
Labour 39,600 hours at Rs.1.10 per hour
Actual production : 100 units.
- A factory is currently working at 50% capacity and produced 10,000 units at a cost of Rs.180 per unit as per details below:
Material Rs.100
Labour Rs.30
Factory overheads Rs.30 (Rs.12 fixed)
Administrative overheads Rs.20 (Rs.10 fixed)
Total Rs.180
The current selling price is Rs.200 per unit. At 80% working, material cost per unit increases by 5% and selling price per unit falls by 5%.
Estimate profit per unit and in total if it operates at 80% capacity.
- A Ltd gives you the following data for the year 2006.
Units sold 2400
Selling Price per unit Rs.100
Direct material per unit Rs.40
Direct labour per unit Rs.20
Variable overheads 100% of labour
Fixed expenses Rs.20000
Calculate:
- Break even sales in units
- Profit of sales are 3000 units
- Margin of safety in units
In the year 2007 the company expects the material price to reduce to Rs.35 per unit, but fixed expenses are expected to increase to Rs.30000. How many units should the company sell in 2007, if it expects the same profit it had earned in 2006.
- A confectioner markets three products, all of which require sugar. His average monthly sales, cost of sales and sugar consumption are as follows:
Product X Product Y Product Z Total
Sales revenue (Rs.) 10,000 12,000 8,000 30,000
Cost of sales (Rs.) 6,000 8,000 5,000 19,000
Sugar requirement 500 kg 800 kg 200 kg 1,500 kgs
Due to government restrictions, his sugar quota has been reduced to 1405 kg. per month. Suggest a suitable sales mix which would give the company maximum profit under the given circumstances.
- X Ltd earned a net profit of Rs.2,30,000 for the year 2008 after considering the following:
- Tax provided during the year Rs.25,000
- ii) 25,000 have been transferred to the general reserve fund
iii) Depreciation has been provided during the year on machinery and furniture at 20% whose
total cost is Rs.1,30,000.
- iv) Old machinery worth Rs.16,000 has been sold for Rs.13,000 during the year.
- v) Goodwill appears in the books at Rs.3,60,000 out of that 10% has been written off during the
year.
- vi) Gain on sale of building Rs.71,000.
vii) Transfer fees Rs.12,000.
viii) Refund of income tax Rs.8,000.
Calculate fund from operations.
- From the following information, calculate:
- Operating ratio
- Operating profit ratio
- Interest coverage ratio
- Earnings per share.
Sales Rs.6,00,000; Cost of goods sold Rs.4,00,000; Operating expenses Rs.1,20,000; Non-operating income Rs.12,000, Interest on debentures Rs.8,000, Provision for tax RS.20,000 and Non-operating expenses Rs.4,000.
Equity capital 10,000 shares of Rs.10 each.
- State the merits and limitations of Ratio Analysis.
- Define Budgetary control. State the steps involved in Budgetary control.
PART C
Answer ANY TWO questions Marks: 2×20=40
- From the following particulars, prepare a Balance Sheet as on 31st December 2008:
- Current ratio 5
- Acid test ratio 5
iii) Fixed assets to capital employed 0.375
- iv) Working capital 90,000
- v) Bank overdraft 15,000
- vi) Shareholders fund to long term debt 2:1
vii) Reserves to share capital 1:3
(Capital employed = shareholders’ funds + long term debt).
- The Balance Sheet of ABC Ltd on 31/12/2004 and 31/12/2005 are as follows:
2004 2005 2004 2005
Equity Capital (Rs.10) 100,000 200,000 Machinery 120,000 260,000
P/L A/c 30,000 50,000 Furniture 30,000 40,000
12% Debenture 50,000 150,000 Stock 50,000 40,000
10% ICICI bank loan 50,000 Debtors 30,000 60,000
Creditors 20,000 25,000 Cash 10,000 5,000
Tax provision 40,000 60,000 Bank 50,000 80,000
290,000 485,000 290,000 485,000
(a) Machinery worth Rs.50,000 were purchased and paid for by the issue of equity shares.
(b) Depreciation provided on machinery Rs.30000 and on furniture Rs.5000.
(c) During the year 2005, Income tax Rs.50,000 and interim dividend Rs.8,000 were paid.
(d) Machine whose Book value is Rs.8,000 is sold for Rs.5,000
Prepare Fund Flow statement.
- X Ltd., gives you the following budgeted data from which you are required to prepare a cash budget for the three months ending June 2008.
Month Sales(Rs) Purchases(Rs) Wages(Rs) Production Overheads(Rs)
February 1, 60,000 80,000 20,000 10,000
March 1, 70,000 60,000 25,000 12,000
April 1, 90,000 1,00,000 30,000 15,000
May 2,00,000 1,50,000 30,000 14,000
June 1,60,000 80,000 20,000 10,000
- 50% of the sales are for cash. Credit sales are collected as follows: 50% in the month following the sale, 40% in the next month following and 10% are bad debts.
- Suppliers allow 1 month credit.
- c) Lag in payment of wages 1 month.
- d) Production overheads are payable in the same month and include Rs.1,000 p.m. as
depreciation.
e)Fixed deposit of Rs.20,000 along with interest Rs.2000 will mature for payment in the month of
April.
- f) Advance income tax Rs.30,000 is payable in the month of March and September.
- g) A computer costing Rs.40,000 is to be purchased in June, on a down payment of Rs.10,000 and
four equal monthly instalments of Rs.10,000 each, payable at the end of each month.
- h) Sales commission of 5% on sales is payable in the month following the sales.
- i) Budgeted cash balance on 1st April 2008 Rs.10,000/-
Loyola College B.Com April 2007 Management Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – COMMERCE
|
SIXTH SEMESTER – APRIL 2007
CO 6605 – MANAGEMENT ACCOUNTS
Date & Time: 18/04/2007 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
SECTION – A
- Answer all the questions: 10 x 2 = 20 Marks
- What are Financial Statements?
- Bring out the significance of Turnover ratios.
- Mention any four limitations of funds flow statement.
- Define Marginal cost.
- What is a Master Budget?
- Find out the semi variable cost for 40,000 units. Semi variable cost for 30,000 units: Rs.15,000, which is 40% fixed and 60% variable?
- Calculate funds from operation from the following particulars:
- Net profit for the year ended 31.3.2007: Rs.6,50,000
- Profit on sale of building: Rs.40,000
- Goodwill written off during the year Rs.10,000
- Old machinery worth Rs.8,000 has been sold for Rs.6,500
- Depreciation has been provided on plant at 20% per year. The value of plant is Rs.5,00,000
- The fixed cost per month in a factory is Rs.50,000. The contribution per unit is Rs.50 for product A and Rs.25 for B. Which of the following product mixes is most yielding?
(a) 800 A and 1000 B (b) 1,500 A only
(c) 3,000 B only (d) 1,200 A and 400 B
- 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
- From the following data, calculate labour cost and rate variances for the two departments:
Dept. A Dept. B
Actual direct wages Rs.80,000 Rs.72,000
Standard hours produced 10,000 8,000
Standard rate per hour Rs.8 Rs.10
Actual hours worked 12,000 7,000
SECTION – B
- Answer any FIVE questions only: 5 x 8 = 40 Marks
- “Marginal costing is a valuable aid for managerial decisions” – Discuss.
- Highlight the advantages and limitations of Management accounting.
- Distinguish between standard costing and budgetary control.
- Following are the ratios relating to the trading activities of Neela Traders Ltd., Chennai.
Receivables turnover – 90 days (360 days year)
Inventory turnover – 3 times
Payables turnover – 3 months
Gross profit ratio – 25%
Gross profit for the year amounted to Rs.18,000. Closing inventory of the year is Rs.2,000 above the opening inventory. Bills receivable amount to Rs.2,500 and bills payable Rs.1,000. Ascertain the following:
- Sales (b) Debtors (c) Closing inventory (d) Sundry creditors
15.Following are the comparative balance sheets of Cheran Company Limited
Liabilities 31.12.2005 31.12.2006 Assets 31.12.2005 31.12.06
Share capital 70,000 74,000 Bank 9,000 —
Debentures 12,000 6,000 A/cs. Receivable 14,900 17,700
A/cs. Payable 10,360 11,840 Stock in trade 49,200 42,700
Pro. Fr. Doubtful debts 700 800 Buildings 20,000 40,600
P & L A/c 10,040 10,560 Goodwill 10,000 5,000
Bank overdraft — 2,800
————————- ———————
1,03,100 1,06,000 1,03,100 1,06,000
Additional Information:
- Buildings were acquired for Rs.20,600
- Amount provided for amortization of goodwill totaled Rs.5,000
- Dividend paid totaled Rs.3,500
- Debenture loan repaid was Rs.6,000
Explain how the overdraft of Rs.2,800 as on 31st Dec. 2006 has arisen.
16.The following are the operating details of two plants operating under the same management:
Particulars Plant A Plant B
Sales 10,00,000 8,00,000
Variable cost 6,00,000 5.00,000
Fixed cost 2,00,000 1,00,000
Capacity of operation 100% 50%
You are required to ascertain:
- Break even sales and break even capacity of the merged plant
- Profit and Profitability of operating the merged plant at 90% of the capacity
- Capacity level of operation, if profit of Rs.4,00,000 (the profit made by both plants before merger) has to be made by the merged plant.
- Fixed Expenses Rs. (lakhs) Rs. (lakhs)
Wages 16.8
Rent, taxes, etc. 11.2
Depreciation 14.0
Administration expenses 17.8
——- 59.8
Semi Variable expenses (50% capacity)
Repair and maintenance 5.0
Indirect labour 19.8
Sales Dept. salaries 5.8
Sundry administration expenses 5.2
——- 35.8
Variable expenses (at 50% capacity)
Material 48.0
Labour 51.2
Other expenses 7.6
——- 106.8
Assume that fixed expenses remain constant at all levels, semi variable expenses remain constant between 40% and 65%, 10% increase between 65% and 85% and 20% increase between 85% and 100%. Sales at various levels are as under:
Rs. (lakhs)
60% capacity 200
75% capacity 240
90% capacity 300
100% capacity 340
Prepare a flexible budget for the half-year and forecast profits at 60%, 75%, 90% and 100% capacity.
- 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
——- ——-
- 850
Loss 15% 15 —
——– ——-
- 850
——— ——–
(ii) Actual results for January 2007:
Material Quantity Rate Amount
Units Rs. Rs.
A 400 11 4,400
B 200 6 1,200
——- ——-
- 5,600
Loss 10% 60 —
——– ——–
- 5,600
——- ——–
Calculate: (1) Material price variance (2) Material mix variance (3) Material usage variance (4) Material yield variance (5) Material cost variance
SECTION – C
III. Answer any TWO questions only: 2 x 20 = 40 Marks
- You are given the following information pertaining to the financial statements of Premsai Ltd., as on 31.12.2006. On the basis of the information supplied, you are required to prepare the Trading and Profit and Loss Account for the year and a Balance Sheet as on that date:
Net current assets Rs.2,00,000
Issued share capital Rs.6,00,000
Current ratio 1.8
Quick ratio 1.35
Fixed assets to shareholders equity 80%
Rate of gross profit 25%
Net profit to issued share capital 20%
Stock turnover ratio (cost of goods
Goods sold to closing stock) 5 times
Average age of outstanding debts
For the year 36 ½ days
- Prepare a funds flow statement from the following Balance Sheets of PRR as at 31st March 2006 and 2007
Liabilities 2006 2007 Asset 2006 2007
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 Account 56,000 68,000 Stock 2,40,000 2,10,000
Creditors 1,68,000 1,34,000 Sundry Debtors 2,10,000 4,55,000
Mortgage Loan — 2,70,000 Bank 1,49,000 1,97,000
Pro. For Taxation 75,000 10,000
———————– ————————
10,49,000 12,42,000 10,49,000 12,42,000
Additional Information:
- Investments costing Rs.8,000 were sold during the year for Rs.8,500 and further investments were purchased during the year for Rs.18,000
- The net profit for the year was Rs.62,000 after charging depreciation on fixed assets Rs.70,000 for the year and provision for taxation Rs.10,000
- During the year part of fixed assets costing Rs.10,000 was disposed for Rs.12,000 and the profit was included in the P&L A/c.
- Dividend paid during the year amounted to Rs.40,000
- A newly started Pushpak Company wishes to prepare cash budget from January. Prepare a cash budget for the 6 months from the following estimated revenue and expenses:
| Month | Total Sales | Materials | Wages | Production Overhead | Selling & Distribution
Overhead
|
| January
February March April May June |
20,000
22,000 24,000 26,000 28,000 30,000 |
20,000
14,000 14,000 12,000 12,000 16,000 |
4,000
4,400 4,600 4,600 4,800 4,800
|
3,200
3,300 3,300 3,400 3,500 3,600 |
800
900 800 900 900 1,000
|
Cash balance on 1st January was Rs.10,000. A new machine is to be installed at Rs.30,000 on credit, to be repaid by two equal installments in March and April.
Sales commission at 5% on total sales is to be paid within the month following actual sales.
Rs.10,000 being the amount of 2nd call may be received in March. Share premium amounting to Rs.2,000 is also obtained with 2nd call.
Period of credit allowed by suppliers – 2 months
Period of credit allowed to customers – 1 month
Delay in payment of overheads – 1 month
Delay in payment of wages – ½ month
Assume cash sales to be 50% of the total sales
Loyola College B.Com April 2008 Management Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – COMMERCE
|
SIXTH SEMESTER – APRIL 2008
CO 6605 – MANAGEMENT ACCOUNTS
Date : 21/04/2008 Dept. No. Max. : 100 Marks
Time : 9:00 – 12:00
SECTION A
- Answer ALL questions (10×2=20 marks)
- What are cash and cash equivalents?
- What are Funds?
- What is margin of safety?
- What is Key Factor?
- What are some of the important liquidity Ratios?
- Current Ratio = 2.8
Acid Test Ratio = 1.5
Working Capital = Rs. 1,62,000
Find out a) Current Assets
- b) Current Liabilities
- c) Liquid Assets
- Sales Rs. 1,20,000
Gross profit ratio Rs.25/-
Opening stock is Rs. 10,000/- more than closing stock.
Calculate purchases.
- From the following information find out the amount of Profit using Marginal Costing Technique.
Fixed Costs Rs. 2,50,000
Variable Costs Rs. 10 per unit
Selling Price Rs.15 per unit
Output Level Rs. 75,000 units
- From the following information calculate:
- Material Cost Variance
- Material Price Variance
- Material Usage Variance
Standard Output 1 unit
Standard Material per unit 3 kg
Standard Price per kg Rs. 2/-
Actual output 80 units
Actual prices Rs.2.50 per kg.
Actual Materials used 250 kgs
- Calcualte the Pay-out ratio and the Retained Earnings ratio
From the following data;
Number of Equity Shares 3000
Dividend for Equity Share Rs. 0.40
Net Profit before tax Rs. 10,000
Provision for tax Rs. 5,000
Preference Dividend Rs. 2,000
SECTION B
- Answer any FIVE questions: (5×8=40 marks)
- State some of the important objectives of Management Accounting.
- Bring out the important differences between Funds Flow Statement and cash flow statement.
- What are the limitations of ratio analysis?
- Ms R&Co supplies the following information for the year ending 31st Dec 2007.
Credit Sales Rs. 1,50,000
Cash Sales Rs. 2,50,000
Returns Inwards Rs. 25,000
Opening Stock Rs. 25,000
Closing Stock Rs. 35,000
Calculate
- Inventory turnover when the Gross Profit Ratio is 20%.
- Stock Velocity
- Draw up a flexible budget for production at 75% and 100% capacity from the following data given for 50% activity.
Particulars Per unit
Rs.
Materials 100
Labour 50
Variable Expenses (Direct) 10
Administrative Expenses (50% fixed) 40,000
Selling and distribution expenses (60% fixed) – 50,000
Present production (50% activity) – 1,000 units
- Sale of a product amounts to 200 units per month at Rs.10 per unit. Fixed overhead cost is Rs.400 per month and the variable cost is Rs.6 per unit.
The company proposes to reduce selling price by 10%. Calculate present and future P/V ratio. How many units must be sold to earn the present total profits?
- From the following information prepare a cash budget for the months of January to April.
Months Expected Sales Months Expected purchases
January 60,000 January 48,000
February 40,000 February 80,000
March 45,000 March` 81,000
April 40,000 April 90,000
Wages to be paid to workers amounted to Rs. 5,000 each month.
Balance at the Bank as on 1st January was Rs. 8,000.
The following decisions were taken to be implemented by the management in the future.
- In case of deficit of funds within the limit of Rs. 10,000, arrangements can be made with the bank.
- In case of deficit of funds exceeding Rs. 10,000 but within a limit of Rs. 42,000 issue of debentures is to be preferred.
- In case of deficit of funds exceeding Rs. 42,000, issue of shares is preferred.
- In a Factory, the Standard Mix consists of 60kgs of X and 40kgs of Y. The standard Loss of production is 30%. The standard price of X is Rs.5 per kg and Y is Rs.10 per kg.
The actual Mix and Yield are as follows:
X-80kgs at Rs. 4.50 per kg
Y-70kgs at Rs.8.00 per kg
Actual yield = 115kgs
Calculate Material Variances.
SECTION C
III. Answer any TWO questions: (2×20=40 marks)
- You are given the following information pertaining to the financial statements of Premsai Ltd., as on 31.12.2006. On the basis of the information supplied, you are required to prepare the Trading and Profit and Loss Account for the year and a Balance Sheet as on that date:
Net current assets Rs. 2,00,000
Issued share capital Rs. 6,00,000
Current ratio 1.8
Quick ratio 1.35
Fixed assets to shareholders equity 80%
Rate of gross profit 25%
Net profit to issued share capital 20%
Stock turnover ratio (cost of goods
Goods sold to closing stock) 5 times
Average age to outstanding debts
For the year 36 \ days
- The following is the Balance Sheet for the year 2004-2005
| 2004 | 2005 | 2004 | 2005 | ||
| Share Capital | 4,00,000 | 6,00,000 | Building | 5,70,000 | 5,00,000 |
| Share Premium | 1,00,000 | 1,10,000 | Plant & Machinery | 3,60,000 | 3,51,000 |
| General Reserve | 3,00,000 | 3,30,000 | Furniture | 90,000 | 81,000 |
| Debentures | 3,00,000 | 2,90,000 | Cash in Hand | 5,000 | 8,000 |
| Provision for Taxation | 40,000 | 35,000 | Debtors
Stock |
1,80,000
1,55,000 |
1,60,000
1,45,000 |
| Secured Loans | 2,00,000 | 1,00,000 | Bills Receivable | 4,000 | 40,000 |
| Current Liabilities | 24,000 | 30,000 | Long term Investments | 2,10,000 | |
| 13,64,000 | 14,95,000 | 13,64,000 | 14,95,000 |
Adjustments:
- During the year 2005 the Company paid 12% Dividend on Equity Share Capital of Rs. 4,00,000
- The shares of Rs.100 each fully paid
- Tax paid Rs. 30,000
- Building worth Rs. 70,000 was sold for Rs. 60,000, new construction of Building for the year Rs. 25,000.
- Machinery purchased for cash Rs. 40,000
- Machinery having a book value of Rs. 10,000 was sold for Rs. 20,000.
Prepare Funds Flow Statement.
- The following particulars are extracted from the records of a company.
| Particulars | Product A | Product B |
| Sales (per unit) | Rs. 100 | Rs. 120 |
| Consumption of Material | 2 kg | 3kg |
| Material Cost | Rs. 10/- | Rs. 15/- |
| Direct Wages Cost | Rs. 15 | Rs. 10 |
| Direct Expenses | Rs. 5 | Rs. 6 |
| Machine hours used | 3 | 2 |
Overhead Expenses:
Fixed 5 10
Variable 15 20
Direct wage per hour is Rs.5. Comment on the profitability of each product (both use the same raw material) when:
- Total sales potential in units is limited
- Production capacity (in term of machine hours) is the limiting factor.
- Materials is in short supply.
- Sales potential in value is limited
- Assuming the firm has only 3,500kgs of raw material and the maximum sales potential of each of the products A and B is 1,000 units, Calculate the most profitable sales mix and the profit for that sales mix assuming that the total fixed cost is Rs. 40,000.
Loyola College B.Com April 2009 Management Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.Com. DEGREE EXAMINATION – COMMERCE
|
SIXTH SEMESTER – April 2009
CO 6605 – MANAGEMENT ACCOUNTS
Date & Time: 21/04/2009 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
SECTION-A(2×10=20)
- Answer all the questions:
1.What is fund from operation?
2.Explain stock turnover ratio
3.What is margin of safety
4.Distinguish fixed budget from flexible budget
5.Explain return on capital employed
6.Find out the quantity of raw material to be purchased from the following details:
Opening stock of raw material 10,000 kgs.
Material expected to be consumed 20,000 kgs
Closing stock of raw material required 5,000 kgs
7.If inventory turnover ratio is 5 times, G.P ratio 20% and sales Rs. 10,00,000 find out the average stock
8.A plant purchased for Rs. 55.000 ( accumulated depreciation Rs. 23.000) was sold for Rs.44.000. The gain
on sale of plant was credited to P/L account, thus increasing the net profit to Rs. 1.62,000. Calculate fund
from operation.
9.Sales Rs.1,00,000. Profit Rs.10,000. Variable cost 70%.
Find out
- P/V Ratio
- Fixed Cost
10.The budgeted and actual sales of a concern are:
Budgeted sales 10.000 units at Rs.4 per unit
Actual sales 5,000 units at Rs.3.50 per unit
8,000 units at Rs.4.00 per unit
Calculate a). sales price variance b) sales volume variance
SECTION –B (5×8=40)
- Answer any FIVE questions only:
11.Distinguish Management Accounting from Financial Accounting
12.Explain the importance of Marginal costing in managerial decision making
13.What are the different classifications of budget?
14.Statement of financial position of Mr. Arun is given below:
Liabilities 2007 2008 Assets 2007 2008
Rs Rs Rs Rs.
Accounts Payable 29,000 25,000 Cash 40,000 30,000
Capital 7,39,000 6,15,000 Debtor 20,000 17,000
Stock 8,000 13,000
Building 1,00,000 80,000
Other fixed asset 6,00,000 5,00,000
7.68,000 6,40,000 7,68,000 6,40,000
- there were no drawing
- there were no purchases or sale of building or other fixed assets.
Prepare a fund Flow Statement
15.A company shows the following results for two periods:
Year Units Total cost Sales
2003 10,000 Rs.80,000 Rs.1,00,000
2004 12,000 Rs.90,000 Rs.1,20,000
Find out the following:
- P/V Ratio
- BEP both in units and amount
- Fixed Cost
- Margin of safety in the year 2004
- Debtor velocity 3 months
Creditor Velocity 2 months
Stock velocity 8 times
Bills payable Rs.4,000
Bills receivable Rs.10,000
Total sales Rs.2,40,000
The closing stock is Rs.2,000 more than the opening stock. .Gross profit on the above sales is Rs.40,000. There are no cash sales and cash purchases and the accounting year consists of 360 days. Find out
(a) Sundry debtor (b) Sundry creditors (c) Closing stock
17.The standard mix for 100 units of product ‘X’ is
Material A 6 Kg at Rs.15 90
Material B 4 Kg at Rs.10 40
——- ——-
10 Kg Rs 130
——– ———
During January, the actual consumption was as follows
Material A 63 kg at Rs.14 882
Material B 39 kg at Rs.11 429
——- ———-
102 kg Rs.1,311
——– ———–
Actual output was 960 units. Calculate material variances
18.The monthly budgets for manufacturing overhead of a concern for two levels of activities were as follows:
Capacity 60% 100%
Budgeted production (units) 600 1,000
——————————–
Rs. Rs.
Wages 1,200 2,000
Consumable stores 900 1,500
Maintenance 1,100 1,500
Power and fuel 1,600 2,000
Depreciation 4,000 4,000
Insurance 1,000 1,000
————- ———
9,800 12,000
————- ————
You are required :
- indicate which of the items are Fixed, Variable and Semi-Variable
- prepare a budget for 80% capacity
SECTION-C (2X20=40)
Answer any TWO questions
19.From the following Balance Sheets prepare a Fund Flow Statement
Balance Sheets of A Ltd
—————————————————————————————————————————
Liabilities 2006 2007 Assets 2006 2007
Rs Rs Rs Rs
——————————————————————————————————————————
Share Capital 6,00,000 7,00,000 Fixed Asset 8,00,000 9,50,000
General Reserve 2,00,000 2,50,000 Investments 1,80,000 1,80,000
Profit on sale of Stock 2,00,000 2,70,000
Investment – 10,000 Debtor 2,25,000 2,45,000
P/L A/c 1,00,000 2,00,000 B/R 40,000 65,000
7%Debenture 3,00,000 2,00,000 Prepaid Expense 10,000 12,000
Creditors 1,60,000 2,50,000 Discount on 15,000 10,000
B/P 10,000 12,000 debenture
Proposed dividend 30,000 35,000
Provision for tax 70,000 75,000
—————————————————————————————————————————— 14,70,000 17,32,000 14,70,000 17,32,000
—————————————————————————————————————————-
Other information:
- During 2007 , Fixed asset ( Book value Rs.10,000 and depreciation written off Rs.30,000) were sold for Rs.8,000
- During 2007 investment costing Rs.80,000 were sold and new investment were bought for Rs.80,000
- Debenture were redeemed at a premium of 10%
- During 2007 income tax paid was Rs.55,000
- Provision for depreciation 31-12-2006 Rs.2,00,000 and on 31-12-2007 Rs.2,50,000
- S. Ltd wishes to prepare a cash budget from January. Prepare a cash budget for the first 6 months from
the following estimated revenue and expenditure.
Month Total sales Materials Wages Production Selling
Overheads overheads
Rs Rs Rs Rs Rs
Jan. 40,000 40,000 8,000 6,400 1,600
February 44,000 28,000 8,800 6,600 1,800
March 56,000 28,000 9,200 6,800 1,800
April 72,000 44,000 9,200 7,000 2,000
May 60,000 40,000 8,000 6,400 1,800
June 80,000 50,000 10,000 7,200 2,400
Cash balance on 1 st Jan was Rs 20,000.
A new machine is to be installed at Rs 20,000 to be paid by two equal installments in March and April. Sales commission at 5% on total sales to be paid within month following actual sales.
Rs 20,000 being the amount of share 2 nd call may be received in March.
Share premium amounting to Rs 4,000 is also obtainable with the 2 nd call.
Period of credit allowed by suppliers -2 months
Period of credit allowed to customers -1 month
Delay in payment of overheads -1 month
Delay in payment of wages -1/2 month
Assume cash sales as 50% total sales
21.From the following figures and ratios, Draw up the Balance sheet and Trading account and Profit and Loss
Account
Share Capital Rs 1,80,000
Working Capital Rs 63,000
Bank overdraft Rs 10,000
There is no fictitious asset. In current assets there is no assets other than stock, debtor and cash. Closing stock is 20% higher than the opening stock.
Current ratio – 2.5
Proprietary ratio – 0.7
Stock velocity – 4 times
Net profit – 10%(to average capital employed)
Quick ratio – 1.5
Gross profit ratio – 20% to sales
Debtor velocity – 36.5 days
Loyola College B.A. Corporate & Secretaryship April 2007 Management Accounts Question Paper PDF Download
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034 B.A. DEGREE EXAMINATION – CORPORATE & SECRETARYSHIP
|
SIXTH SEMESTER – APRIL 2007
CR 6600 – MANAGEMENT ACCOUNTS
Date & Time : 16-04-2007/9.00-12.00 Dept. No. Max. : 100 Marks
SECTION – A
Answer all the questions. 10 x 2 = 20
- What is ratio analysis?
- Define ‘Budget’.
- A project costs Rs. 5,00,000 and yields annually a profit of Rs. 80,000 after depreciation at 12% p.a. but before tax at 50%. Calculate pay-back period.
- Define Fund Flow Statement.
- Calculate Net profit ratio. Sales Rs.3,50,000, Cost of goods sold Rs.1,50,000
Administrative expenses Rs.50,000 Selling expenses Rs. 10,000.
- Define financial statements.
- Write the ‘Principles’ for preparation of Working Capital Statement.
- Define current asset.
- Suresh and company supplies the following information regarding the year ended 31-12-2000. Cash sales Rs. 80,000; Credit sales Rs. 2,00,000’ Return inward Rs. 10,000; Opening stock Rs. 25,000; Closing stock Rs. 30,000; Gross profit ratio is 25%; Find out inventory turnover ratio.
- What is the objective of ‘cash budget’?
SECTION – B
Answer any FIVE questions. 5 x 8 = 40
- Johnson Ltd. has Rs. 80,000 to invest. It has two alternative proposals at hand for consideration. The alternatives are:
| Product X
Rs. |
Product Y
Rs. |
|
| Investment outlay
Cash inflows: Year 1 2 3 4
|
80,000
32,000 32,000 36,000 — 1,00,000 |
80,000
30,000 30,000 30,000 10,000 1,00,000 |
Required:
- Which investment proposal would you recommend under pay-back method?
- Would your decision be different if proposal Y has Rs. 40,000 in the third year instead of Rs. 30,000 inflow?
- Calculate the Debtors turnover ratio from the following.
Rs.
Total sales for the year 1987 1,00,000
Cash sales for the year 1987 20,000
Debtors as on 1-1-1987 10,000
Debtors as on 31-12-1987 15,000
Bills receivable as on 1-1-1987 7,500
Bills receivable as on 31-12-1987 12,500
- From the following information show the results of operations of manufacturing concern using trend percentages with 2004 as base year.
(amount in ‘000s)
| Particulars | 2001 | 2002 | 2003 | 2004 |
| Sales
Cost of goods sold Gross profit Total selling expenses Net operating profit |
1,300
728 572 120 452
|
1,200
696 504 110 394 |
950
589 361 97 264 |
1,000
600 400 100 300 |
- Explain the characteristics of management accounting.
- You are required to calculate the following:
(a) Working capital turnover (b) Fixed assets turnover (c) Capital turnover
The information available is as under:
Capital employed : Rs. 4,00,000 Current liabilities : Rs. 40,000 Current assets ; Rs. 2,00,000
Net fixed assets : Rs. 2,50,000 Sales: Rs. 5,00,000 Cost of sales: Rs. 4,00,000
- What are the advantages of ratio analysis?
- Explain the most important techniques of analysis and interpretation of financial statements.
- Calculate funds from operations from the following profit and loss Account:
Profit and Loss Account
Dr Cr
| Particulars | Rs. | Particulars | Rs. |
To Expenses paidTo Depreciation To Loss on sale of Building To Discount To Goodwill To Net profit |
1,00,000
40,000 15,500 500 12,000 52,000 ———–2,20,000 |
By Gross Profit
By Gain on sale of machinery |
2,00,000
20,000
———– 2,20,000
|
SECTION – C
Answer any TWO questions. 2 x 20 = 40
19. The following aer the Balance sheets of Domi co. Ltd as on 31-12-2000 and 31-12-2001.
Balance Sheets
| Liabilities | 2000
Rs. |
2001
Rs. |
Assets |
2000
Rs. |
2001
Rs. |
| Share capital
General reserve P & L A/c B ank Loan Creditors Provision for taxation |
1,00,000
25,000 15,250 35,000 75,000 15,000
2,65,250 |
1,25,000
30,000 15,300 – 67,600 17,500
2,55,400 |
Building
Machinery Stock Debtors Cash in hand Cash at bank Investment |
1,00,000
75,000 50,000 40,000 250 – – 2,65,250
|
95,000
85,500 37,000 31,100 300 4,000 2,500 2,55,400 |
Additional Information:
(a) dividend of Rs. 11,000 was paid (b) Machinery was purchased for Rs. 15,000
(c) Income tax paid during the year Rs. 16,500. Prepare Cash Flow Statement.
- Using the information given below prepare a cash budget showing expected cash receipts and
disbursement for the month of May and balance expected at May – 31 – 1986. Budgeted cash balance
May 1, 1986 R. 60,000.
Sales:
March Rs. 5,00,000
April Rs. 3,00,000
May Rs. 8,00,000
Half collected in the month of sales, 40% in the next month and 105 in the third month.
Purchases:
April Rs. 2,50,000
May Rs. 4,00,000
40% paid in the month of purchase and 605 paid in the next month.
Wages due in May for Rs. 88,000. 3 years insurance policy due in May for renewal Rs. 2,000 to be paid in cash. Other expenses for May, payable in May, Rs.44,000. Depreciation for the month of May Rs. 2000. Accrued taxes for May payable in December Rs. 6,000. Fixed deposit receipts due May 15th Rs. 1,75,000 plus Rs. 10,000 interest.
- The cost of an article at a capacity level of 5,000 units is given below:
Rs.
Material cost 25,000 (100% variable)
Labour cost 15,000 (100% variable)
Power 1,250 (80% variable)
Repairs 2,000 (75% variable)
Stores 1,000 (100% variable)
Inspection 500 (20% variable)
Depreciation 10,000 (100% variable)
Administrative overheads 5,000 (25% variable)
Selling overheads 3,000 (25% variable)
———
62,750
———
Cost per unit Rs. 12.55
Find the unit cost of the product at production levels of 4,000 units and 6,000 units.
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