Management Accounting | ENTRANCE INDIA

State two differences between a FFS and a CFS.
How will you treat interest received on investments under the indirect method of a cash flow statement?
Explain the term notional flow of cash with an example.
M. company presents the following information and you are required to calculate funds from operations:

Profit and Loss Account Rs.
To Operational Expenses	1,00,000	By Gross Profit	2,00,000
To Depreciation	40,000	By Gain on Sale of Plant	20,000
To Loss on Sale of building	10,000
To Advertisement Suspense A/c	5,000
To Discount (allowed to customers)	500
To Discount on Issue of Shares written off	500
To Goodwill	12,000
To Net Profit	52,000
	2,20,000		2,20,000

A firm’s current assets and current liabilities are Rs.24,000 and Rs.6,000 respectively. How much can it borrow from a bank without reducing its current ratio below 1.5?

What is Trend Analysis?

What is meant by capital gearing ratio?

Distinguish between Management Accounting and Financial Accounting on the basis of
Period of reporting ii) Users of information.

How are routine reports different from special reports?

Assuming the current ratio of a company is 2, state with reasons in each case whether the ratio will improve or decline or will have no change.
Payment of current liabilities ii) Purchase of fixed assets.

SECTION – B

Answer any FOUR Each carries 5 marks. (4×5=20)

The following is the Profit & Loss Account of I.T.R. Co., for the year 2012 and its previous year:

I.T.R. Co.

Profit & Loss Account

Particulars	2011	2012	Particulars	2011	2012
	Rs.	Rs.		Rs.	Rs.
To Cost of Sales	4,63,250	4,83,899	By Sales	7,21,456	8,34,250
To Administration Expenses	46,531	54,137	Less: Returns	11,588 7,09,868	13,903 8,20,347
To Selling Expenses	91,823	1,15,632	By Other Incomes: Interests & Dividends	3,795	2,620
To Interest paid	4,275	3,500	Purchase Discount	4,250	3,792
To Loss on Sale of Fixed Assets	1,254	350	Profit on Sale of Land	3,000	–
To Income-tax	43,038	80,390
To net profit	70,742	88,851
	7,20,913	8,26,759		7,20,913	8,26,759

Present the above data in the form of a common size statement.

State by giving reasons whether the following transactions increase or decrease or do not affect the working capital :

a) A company issues Rs.1,00,000 worth of shares for cash.
b) Redemption of Debentures worth Rs.2,00,000.
c) Amount received from Debtors Rs.32,000.
d) Amount paid to creditors Rs.15,000.
e) Advance Income Tax paid Rs.1,00,000..
f) Raw materials purchased Rs.60,000 from ZB Co. on credit basis.
g) Furniture purchased Rs.40,000.
h) Purchased plant worth Rs.1,00,000 by issuing equal amount of Debentures of Rs.500 each.
i) Bills receivable Rs.30,000 discounted for Rs.29,000.
j) Debentures worth Rs.1,00,000 redeemed by raising a long-term loan of equal amount.

Calculate cash from operations from the following:

Profit made during the year Rs.2,50,000 after considering the following items:

Rs.

Depreciation on fixed assets 10,000
Amortization of goodwill 5,000
Transfer to general reserve 7,000
Profit on sales of land 3,000

The following is the position of current assets and current liabilities:

2012 2011

Rs. Rs.

Debtors 15,000 12,000

Creditors 10,000 15,000

Bills Receivable 8,000 10,000

Prepaid expenses 2,000 4,000

14) i) Calculate Stock Turnover Ratio from the following information:

Opening stock = Rs. 40,000

Closing stock = Rs. 44,000

Sales = Rs.4,15,000

Gross Profit ratio = 20%.

ii) Compute pay out ratio from the following data:

No. of equity shares = 3000

Dividend per equity share = Re. 0.40

Net profit = Rs.10,000

Provision for tax = Rs.5,000

Preference dividend = Rs.2,000.

Calculate Quick Ratio from the following Balance Sheet figures:

Liabilities	Rs.	Assets	Rs.
Capital	2,20,000	Fixed Assets	2,00,000
Loan (long-term)	50,000	Stock	50,000
Creditors	40,000	Debtors	50,000
B/P	10,000	B/P	15,000
Other current liabilities	7,500	Cash and Bank Balance	15,000
Provision for Doubtful Debts	2,500
	3,30,000		3,30,000

15) The following data relates to Wipro Ltd.

	2006	2007	2008	2009	2010	2011
	Rs.	Rs.	Rs.	Rs.	Rs.	Rs.
Capital	2,00,000	2,50,000	2,80,000	3,00,000	3,50,000	4,00,000
Fixed Assets	1,50,000	1,80,000	2,00,000	2,10,000	1,90,000	2,00,000
Current Assets	90,000	1,40,000	1,50,000	1,70,000	2,60,000	2,90,000
Current Liabilities	40,000	70,000	70,000	80,000	1,00,000	90,000

From the above figures

Calculate trend ratios for each item taking 2006 as the base year.
Establish relationships (i.e., ratio) between

Current Assets and Current Liabilities, and
Capital and Fixed Assets and convert these two ratios into trend percentages for all the six years

16) “There are no externally imposed generally accepted accounting principles for management accounting”. In light of the above statement discuss the nature of Management Accounting.

SECTION – C

Answer any THREE Each carries 15 marks. (3×15=45)

Following are the Balance Sheets of M.S. Sales Corporation as on 31^st March 2012 and 2013:

Liabilities	2012 Rs.	2013 Rs.	Assets	2012 Rs.	2013 Rs.
Equity share Capital	3,10,000	3,60,000	Goodwill	10,000	15,000
General Reserve	50,000	55,000	Buildings	3,00,000	2,90,000
Profit & Loss A/c	30,500	35,600	Machinery	1,50,000	1,69,000
Bills Payable	70,000	–	Stock	1,00,000	74,000
Creditors	1,50,000	1,35,200	Debtors	80,000	64,200
Provision for Tax	30,000	35,000	Cash & Bank	500	8,600
	6,40,500	6,20,800		6,40,500	6,20,800

The following transactions took place during the year 2013

Dividend of Rs.25,000 was paid during the year.
Assets of another company were purchased for Rs.50,000 payable in shares-assets purchased were stock Rs.20,000, machines Rs.25,000.
Machine was further purchased for cash Rs.6,000.
Taxes paid during the year Rs.28,000.

You are required to prepare a statement of Sources and Application of funds.

18) Following are the Balance Sheets of Deon and Co., as on 31.12.2011 &

31.12. 2012

Liabilities	2011	2012	Assets	2011	2012
Equity Share capital	2,00,000	3,00,000	Land	80,000	1,20,000
12% Deb.	1,00,000	2,00,000	Plant	3,00,000	6,25,000
10% pref. Capital	2,00,000	2,50,000	Investment	1,00,000	2,00,000
Reserve & Surplus	1,00,000	1,20,000	Stock	1,50,000	2,00,000
Sundry Crs.	1,50,000	4,10,000	S. Debtors	1,00,000	1,20,000
Bank O.D.	–	50,000	Bank Bal.	70,000	1,35,000
Dividend O/S	50,000	70,000
	8,00,000	14,00,000		8,00,000	14,00,000

Compare the financial position of the two companies with the help of a Comparative Balance Sheet.
Analyse the changes in the working capital position of the firm.

Has the firm used long term or short term funds to finance its fixed assets?

Comment on the overall profitability of the firm after a detailed analysis of its short and long term financial position.

19) From the following information, prepare the Balance Sheet of R.K. Motors Ltd.

Current ratio 2

Working capital Rs.4,00,000

Capital block to current assets 3 : 2

Fixed assets to turnover 1 : 3

Sales cash/credit 1 : 2

Stock velocity 2 months

Creditors velocity 2 months

Debtors velocity 3 months

Share capital Rs.6,00,000

Debenture / share capital 1 : 2

Net profit 10% of sales

Gross profit 25% of sales

Reserves 2.5% of sales.

20) i) Inspite of increasing profits of Infotel & Co., for the last three years, the company is having shortage of cash due to which dividends cannot be paid, Draft a report to management diagnosing the situation and suggesting the appropriate action to improve the situation. (10 marks)

ii) Briefly explain the different classification of management reports.

(5 marks)

i) From the following particulars calculate cash from operating activities for the year ending 31^st March 2012 using the direct method. (10 marks)

Income Statement
Income
Sales		20,000
Stock Adjustment:
Closing Stock	8,000
Less: Opening Stock	6,000	2,000
Income from Investments		2,400
		24,400
Expenditure
Raw material Consumed:
Opening Stock	4,000
Add: Purchases	10,000
	14,000
Less: Closing Stock	3,000	11,000
Wages a Salaries		5,000
Other Expenses		4,000
Depreciation		1,000
		21,000
Profit Before Interest and Tax		3,400
Interest		1,600
Profit Before Tax		1,800
Provision for Tax		200
Profit After Tax		1,600

Balance Sheet

Liabilities	31.3.2012	31.3.2011	Assets	31.3.2012	31.3.2011
Share Capital	8,000	6,000	Fixed Assets(Gross)	16,000	12,000
General Reserve	2,000	1,500	Less: Acc Dep.	(3,000)	(2,000)
				13,000	10,000
Profit Loss Account	100	200	Investments (long-term)	2,400	1,600
Loans	12,000	8,000	Investments (Risk-free, Liquid)	600	400
Sundry Creditors	8,700	9,600	Inventories	11,000	10,000
Provision for Tax	200	300	Trade Debtors	4,000	3,000
Proposed Dividend	1,200	900	Cash & Bank Balances	1,000	1,200
Other current liabilities	200	300
	32,200	26,500		32,200	26,500

ii) Following is the Profit and Loss Account to Electro Matrix Ltd. for the year ended 31^st December 2012:

Particulars	Rs.	Particulars	Rs.
To Opening Stock	1,00,000	By Sales	5,60,000
’’ Purchases	3,50,000	’’ Closing Stock	1,00,000
’’ Wages	9,000
To Gross Profit c/d	201000
	6,60,000		6,60,000
To Administrative expenses	20,000	By Gross Profit b/d	201000
’’ Selling & Distribution Expenses	89,000	’’ Interest on Investments (Outside business)	10,000
’’ Non-operating expenses	30,000	’’ Profit on Sale of Investments	8,000
To net profit	80,000
	2,19,000		2,19,000

You are required to calculate:

Gross Profit Ratio
Net Profit Ratio
Operating Ratio
Operating Profit Ratio
Administrative Expenses Ratio. (5 marks)

Section – D

Compulsory question – Case study (15 marks)

The following are the summarized Balance sheet of a company as on

December 31, 2012 and 2013

Liabilities	2012 Rs.	2013 Rs.	Assets	2012 Rs.	2013 Rs.
Share Capital	2,00,000	2,50,000	Land & Buildings	2,00,000	1,90,000
General Reserve	50,000	60,000	Machinery	1,50,000	1,69,000
Profit & Loss A/c	30,500	30,600	Stock	1,00,000	74,000
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

P.T.O……

Additional information: During the year ended 31^st December 2013.

1) Dividend of Rs.23,000 was paid.

2) Assets of another company were purchased for consideration of Rs.50,000

payable in shares. The following assets were purchased:

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

3) Machinery was further purchased for Rs.8,000

4) Depreciation written off machinery Rs.12,000

5) Income-tax provided during the year Rs.33,000

6) Loss on sale of machinery Rs.200 was written off to general reserve.

Questions:

You are required to analyse the above information and prepare the Cash Flow Statement.
What was the amount of tax that the company had paid.
Calculate the amount of cash the company had earned or lost solely from operations.
How much money did the company transfer to reserves during the year.
State the activities of the company that have resulted in the biggest inflow and outflow of cash.

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St. Joseph’s College of Commerce B.B.M. 2013 II Sem Management Accounting Question Paper PDF Download

April 6, 2018 by prasant kumar

ST.JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION MARCH/APRIL 2013

BBM – II SEMESTER (International Students)

MANAGEMENT ACCOUNTING

TIME: 1 ½ HOURS Max. Marks: 50

Answer any 5 questions. Each carries 10 marks. (5 x 10 = 50)

From the following forecast of income and expenditure, prepare a cash budget for the months March to June 2012.

Particulars	Sales (Credit) Rs	Purchases (Credit ) Rs	Wages	Factory Expenses	Office Expenses	Distribution Expenses (Rs)
Jan 2012	50,000	25,000	4,000	2,000	1,500	1,000
Feb	60,000	26,000	4,000	2,200	1,550	1,100
Mar	75,000	25,000	4,500	2,000	1,600	1,200
Apr	80,000	27,000	4,500	2,100	1,700	1,250
May	1,00,000	27,500	4,750	2,200	1,750	1,200
June	1,05,000	29,000	5,000	2,500	1,800	1,400

Additional information is as follows:

Balance of cash in hand on 1^st March 2012 is Rs. 20,000.
The customers are allowed a credit period of 2 months.
The creditors are allowing a credit of 1 month.
A dividend of Rs. 25,000 is payable in June.
Capital expenditure to be incurred :

Machinery purchased 20^th April for Rs. 10,000; a Land has been purchased on 1^st March and the payment are to be made in monthly installments of Rs. 5,000 each.

Interest on Investment of Rs. 25,000 is receivable in May.
Wages are paid on 1^st week of the next month.
Lag in payment of other expenses is one month.

The expenses for the budgeted production of 10,000 units in a factory are given below:

Particulars	Per unit (Rs)
Materials	70
Labour	25
Variable overheads	20
Fixed overheads(Rs.1,00,000)	10
Variable Expenses (Direct)	5
Selling Expenses (10% fixed)	13
Distribution Expenses (20% fixed)	7
Administrative Expenses Rs. 50,000)	5
Total cost	155

Prepare a flexible budget for the production of (i) 8,000 units and (ii) 6,000 units.

(a) From the following data calculate: (4 marks)

Number to units to be sold to earn a profit of Rs. 1,50,000.
Sales to earn a profit of RS. 1,50,000.

Selling price per unit Rs. 50.

Variable selling cost per unit Rs. 3.

Variable manufacturing cost per unit Rs. 22.

Fixed factory overhead Rs. 1,75,000.

Fixed selling cost Rs. 25,000.

(b) Assuming that the cost structure and selling prices remain the same in periods I and I

find out (6 marks)

P/V Ratio
E. Sales
Profit when sales are Rs. 1,00,000
Sales required to earn a profit of Rs. 25,000.

Period Sales (in Rs) Profit (in Rs)

I 1,20,000 9,000

II 1,40,000 14,000

(a) Calculate funds from operations from the following income statement. (4 marks)

Particulars	Rs.	Particulars	Rs.
To Salaries paid	1,00,000	By Gross profit	5,00,000
To Rent paid	25,000	By Profit on sale of vehicle	3,000
To Provision for depreciation	50,000	By Refund of tax	2,000
To Commission paid	5,000	By Dividend received	10,000
To Provision for tax	1,50,000
To General reserve	3,000
To Loss on sale of investment	10,000
To Cost of issue of shares written off	2,000
To provision for legal damages	5,000
To Net Profit	1,65,000
	5,15,000		5,15,000

(b) From the following information find out the changes in working capital: (6 marks)

Liabilities	2011	2012	Assets	2011	2012
Share Capital	545	545	Fixed Assets	3,006	2,343
Reserves	2,459	1,660	Investments	62	62
Long –Term Loan	2,796	2,295	Inventories	2,075	1,804
Current Liabilities	1,241	1,533	Debtors	1,157	687
			Cash	512	844
Provisions	434	327	Loans & Advances	663	620
	7,475	6,360		7,475	6,360

Following are the summarized Balance Sheets of Arul Ltd. as on 31^st December, 2011 and 2012.

Liabilities	2011	2012	Assets	2011	2012
Share Capital	1,00,000	1,50,000	Land & Building	1,00,000	90,000
General Reserve	50,000	60,000	Plant & Machinery A/c	1,00,000	1,19,000
P& L A/c	30,500	30,000	Stock	50,000	24,000
Bank Loan	70,000	—	Debtors	75,000	63,200
Sundry Creditors	50,000	37,200	Cash	500	1,000
Provision for taxation	32,000	35,000	Bank	2,000	15,000
			Good will	5,000	—
	3,32,500	3,12,200		3,32,500	3,12,200

Additional Information.

During the year ended 31^st December 2012.

Dividend of Rs. 23,000 was paid.
Depreciation written off on building Rs. 10,000, Machinery Rs. 14,000.
Income tax paid during the year Rs. 28,000.

Prepare a cash flow statement.

Explain in detail

The qualities of a good report. (4 marks)
The different kinds of management reports. (6 marks)

St. Joseph’s College of Commerce B.Com. 2013 V Sem Management Accounting Question Paper PDF Download

April 6, 2018 by prasant kumar

1
ST. JOSEPH’S COLLEGEOF COMMERCE (AUTONOMOUS)
END SEMESTER EXMINATION -OCTOBER 2013
B.COM – V SEMESTER
MANAGEMENT ACCOUNTING
TIME : 3 HOURS MAX MARKS:100
SECTION – A
I. Answer ANY TEN of the following question (10X2=20)
1. Give the meaning of the term Management Accounting.
2. Explain the concept of flow of funds.
3. Explain the treatment of extraordinary items in cash flow statement (as per AS 3).
4. Write a note on managerial uses of ratio analysis.
5. A Firm’s current assets and current liabilities are Rs. 24,000 and Rs. 6,000 respectively.
How much can it borrow from a bank without reducing current ratio below 1.5?
6. Give the meaning of the term Budgetary control.
7. Mention any 4 operating budgets.
8. Give the meaning of the term Marginal Cost.
9. X co has an overall PV ratio of 40% the marginal cost of Product A is estimated to be Rs.
30. Determine the selling price for Product A.
10. What do you mean by variance analysis?
11. Write a note on idle time variance.
12. A factory works on the standard costing system
The standard estimate for materials for manufacture of 1,000 units of a commodity is 400
Kgs at 2.50 per kg. When 2,000 units of the community are manufactured, it is found
that 820 kgs of materials are consumed @ Rs. 2.60 per kg. Calculate the material
variances.
SECTION – B
II. Answer ANY FOUR of the following question s. (4X5=20)
13. Write a note on the role of management accounting in the present scenario.
14. Calculate the trend percentages from the following figures of X Ltd., taking 2004 as the
base and interpret the:
Year Sales Stock Profit before tax
(Rs. In lakhs)
2004 1,881 709 321
2005 2,340 781 435
2006 2,655 816 458
2007 3,021 944 527
2008 3,768 1,154 672
2
15. Following are the balance sheets of Rachana Ltd., as on 30th June 2010 and 2011:
Liabilities 2010 (Rs.) 2011 (Rs.) Assets 2010 (Rs.) 2011 (Rs.)
Share capital 1,00,000 1,50,000 Fixed Assets 2,00,000 3,00,000
Reserves 1,00,000 1,00,000 Current
Assets
50,000 80,000
Loan 20,000 80,000
Current
liabilities
30,000 50,000
Total 2,50,000 3,80,000 Total 2,50,000 3,80,000
Prepare a comparative balance sheet.
16. The working capital of XYZ Ltd., has deteriorated in recent years and now stands as
under:
Current
assets
Rs. Current
Liabilities
Rs.
Inventory 5,60,000 creditors 4,90,000
Debtors 3,50,000 Bank loan 2,10,000
cash 70,000
total 9,80,000 total 7,00,000
a) Compute current and quick ratio
b) A further bank loan of Rs. 50,000 against debtors is under negotiation, assuming the
loan is received; calculate the revised current and quick ratio.
17. With the following data for a 60% activity, prepare a budget for production at 80%
and 100% capacity:
Production at 60%
capacity
600 units
Materials Rs. 100 per unit
Labour Rs.40 per unit
Direct expenses Rs,10 per unit
Factory overheads Rs. 40,000 (40%
fixed)
Administration expenses Rs. 30,000 (60%
fixed)
3
18. From the following data of A and Co., Ltd., relating to budgeted and actual performance for
the month of March 2009, compute the Direct Material and Direct Labour cost Variance.
Budgeted data for March:
Units to be manufactured 1,50,000
Units of Direct Material Required (based on
std rates)
4,95,000
Planned purchase of raw material (units) 5,40,000
Average unit cost of direct material Rs.8
Direct labour hours per unit of finished goods ¾ hr
Direct labour cost (total) Rs. 29,92,500
Actual Data at the end of March:
Units actually manufactured 1,60,000
Direct Material cost (purchased cost based on
units actually issued)
Rs.43,41,900
Direct Material cost (purchased cost based on
units actually purchased)
Rs. 45,10,000
Average unit cost of direct material Rs.8.20
Total direct labour hours for march 1,25,000
Total direct labour cost for march Rs. 33,75,000
SECTION – C
III. Answer any THREE of the following questions. (3X15=45)
19. K Ltd. provided the profit and loss account and balance sheet on 31st March 2006 and
2007 as follows:
Profit and Loss Account
Particulars 2006
Rs.
2007
Rs.
Particulars 2006
Rs.
2007
Rs.
To Cost of goods sold 6,90,000 8,10,000 By sales 12,00,000 14,00,000
To Administrative
expenses
1,50,000 1,20,000
To selling expenses 1,80,000 2,30,000
To net profit 1,80,000 2,40,000
12,00,000 14,00,000 12,00,000 14,00,000
4
Balance sheets
Particulars 2006
Rs.
2007
Rs.
Particulars 2006
Rs.
2007
Rs.
Equity share
capital
4,00,000 4,00,000 Land 4,00,000 3,00,000
Preference
share capital
1,00,000 2,00,000 Building 3,00,000 3,50,000
Reserves and
surplus
1,25,000 1,90,000 Plant 3,20,000 2,70,000
Debentures 2,50,000 50,000 Stock 31,000 20,000
Loan 2,00,000 1,30,000 Debtors 42,000 53,000
Sundry
creditors
40,000 50,000 Cash 35,000 22,000
Bills payable 25,000 10,000 Outstanding
interest
12,000 15,000
Total 11,40,000 10,30,000 Total 11,40,000 10,30,000
Prepare a comparative profit and loss account and a comparative balance sheet.
20. With the following ratios and further information given below, complete the trading
account, profit and loss account and balance sheet of Mr. X:
Gross profit ratio 25%
net profit ratio 20%
Sales/inventory ratio 8
Fixed assets/total current
assets
¾
Fixed assets/total capital 3/2
Capital /total outside
liabilities
2/5
Fixed assets Rs. 15,00,000
Closing stock Rs. 2,00,000
Performa trading and profit and loss account
To cost of sales ……………. By sales …………….
To gross profit (25% on
sales)
…………….
……………. …………….
To expenses ……………. By gross
profit
…………….
To net profit (20% on sales) …………….
……………. …………….
5
Performa Balance sheet
Capital balances
…………….
Add: net profit
…………….
……………. fixed assets …………….
Total liabilities ……………. Stock …………….
Other current
assets
…………….
……………. …………….
21. From the following contained in the income statement and the balance sheet of A Ltd.,
prepare Cash Flow Statement using i) direct method OR ii) indirect method
Income statement for the year ended March 31, 2011
Net sales (A) 2,52,00,000
Less: cash cost of sales 1,98,00,000
Depreciation 6,00,000
Salaries and wages 24,00,000
Operating expenses 8,00,000
Provision for taxation 8,80,000
(B) 2,4,80,000
Net operating profit (A-B) 7,20,000
Non-recurring income- profit on sale of
equipment
1,20,000
8,40,000
Retained earnings and profits brought forward 15,18,000
23,58,000
Dividends declared and paid during the year 7,20,000
Profit and loss account balance as on March 31,
2011
16,38,000
BALANCE SHEET
Assets as on March 31, 2010 March 31, 2011
Land 4,80,000 9,60,000
Building and equipments 36,00,000 57,60,000
Cash 6,00,000 7,20,000
Debtors 16,80,000 18,60,000
Stock 26,40,000 9,60,000
Advances 78,000 90,000
90,78,000 1,03,50,000
Liabilities as on March 31, 2010 March 31, 2011
Share capital 36,00,000 44,40,000
Surplus in profit and loss account 15,18,000 16,38,000
Sundry creditors 24,00,000 23,40,000
6
Outstanding expenses 2,40,000 4,80,000
Income tax payable 1,20,000 1,32000
Accumulated depreciation on building and
equipment
12,00,000 13,20,000
90,78,000 1,03,50,000
The original cost of equipment sold during the year 2007-08 was Rs. 7,20,000
22. The following are the balance sheets of Beta Ltd., for the year ending March 31, 2010 and
March 31, 2011:
Balance sheets
(as on March 31st)
Capital and liabilities 2010 (Rs.) 2011 (Rs.)
Share capital 13,50,000 15,75,000
General reserves 4,50,000 5,62,500
Capital reserves( profit on sale of investment) – 22,500
Profit and loss account 2,25,000 4,50,000
12% debentures 6,75,000 4,50,000
Accrued expenses 22,500 27,000
Creditors 3,60,000 5,62,500
Provision for dividends 67,500 76,500
Provision for taxation 1,57,500 1,71,000
33,07,500 38,97,000
Assets 2010 (Rs.) 2011 (Rs.)
Fixed assets 22,50,000 27,00,000
Less: accumulated depreciation 4,50,000 5,62,500
Net fixed assets 18,00,000 21,37,500
Long term investments (at cost) 4,05,000 4,05,000
Stock (at cost) 4,50,000 6,07,500
Debtors (net of provision for doubtful debts of Rs. 90,000 and Rs.
1,12,500 for 2010 and 2011 respectively
5,06,250 5,51,250
Bills receivable 90,000 1,46,250
Prepaid expenses 22,500 27,000
Miscellaneous expenditure 33,750 22,500
33,07,500 38,97,000
Additional information:
(i) During the year 2010-11, fixed assets with a net book value of Rs.22,500
(accumulated depreciation, Rs. 67,500) were sold for Rs. 18,000
(ii) During the year 2010-11, investments costing Rs. 1,80,000 were sold, and also
investments costing Rs. 1,80,000 were purchased
(iii) Debentures were retired at a premium of 10%
(iv) Tax of Rs. 1,23,750 was paid for 2009-2010
(v) During the year 2010-11, bad debts of Rs. 31,500 were written off against the
provision for doubtful debt account
(vi) The proposed dividend for 2009-10 was paid in 2010-11
Required: Prepare a funds flow statement for the year ended March 31, 2011.
7
23. A company is producing an identical product in two factories. The following are the details
in respect of both the factories:
Factory X Factory Y
Selling price per unit 50 50
Variable cost per unit 40 35
Fixed cost 2,00,000 3,00,000
Depreciation included in
above
40,000 30,000
Sales (units) 30,000 20,000
Production capacity (units) 40,000 30,000
You are required to determine:
a) Break even point for each factory individually
b) Which factory is more profitable
c) Cash BEP for each factory individually
d) BEP for company as a whole; assuming the present product mix
e) BEP for company as a whole; assuming that product mix can be altered as desired
f) Consequences on profits and BEP if product mix is changed to 2:3 and total demand
remains constant.
Note: BEP may be indicated in number of units.
SECTION-D
IV) Case Study-one compulsory question. (15 marks)
24. The following details of estimates are obtained in respect of the retail business of fancy
Ltd., for the months of January to March 2011:
A. Working Capital as on 1st January 2011 has been estimated as under:
Cash and bank
balances
10,900
Debtors 51,400
Creditors 42,200
Outstanding expenses 4,000
Dividend due 9,700
Tax due 6,400
Stock 26,000
B. Budgeted profit statements for the three months are:
January February March
2011
Sales 42,000 36,000 34,000
(-)Cost of sales 32,700 28,100 26,600
Gross profit 9,300 7,900 7,400
(-)Administrative, selling and distribution
expenses
6,300 5,400 5,100
Net profit before tax 3,000 2,500 2,300
8
C. Budgeted balances at the end of each month
January February March
2011
Stock 24,000 22,000 20,000
Debtors 52,000 50,000 47,000
Creditors 40,000 39,000 38,000
Outstanding expenses 4,000 4,000 4,000
Dividend due 9,700 – –
Tax due 6,400 6,400 6,000
Depreciation amounting to Rs. 1,700 has been included in the budgeted expenditure of
each month.
You are required to prepare a month-wise cash budget for the three months on receipt
and payment basis.

St. Joseph’s College of Commerce B.B.M. 2014 VI Sem Management Accounting Question Paper PDF Download

April 5, 2018 by prasant kumar

JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester examination – APRIL 2014

BBM – VI semESTER

MANAGEMENT ACCOUNTING

Duration: 3 Hrs Max. Marks: 100

Section – A

Answer ALL the questions. Each carries 2 marks. ( 10 x 2 = 20)
What is Management Accounting as per American Accounting Association?
State any 4 objectives of Management Accounting.
What is Trend Analysis?
What is Management Reporting?
Give the meaning of Ratio Analysis.
Mention any 4 Balance Sheet Ratios.
State any two uses of fund flow analysis.
What is Cash Flow Statement?
Distinguish between internal and external analysis.
State the significance of Acid Test Ratio.

Section – B

Answer any FOUR Each carries 5 marks. ( 4 x 5 = 20)
Explain any five functions of Management Accounting.

“Accounting Reports are a matter of necessity for the management and not a matter of convenience”. Explain critically the above statement.

Briefly explain the following:
Current Ratio b) Liquid Ratio c) Absolute Liquid Ratio.

State with reasons whether the following transactions result in increase/decrease/ no change in working capital.
Bills receivable Rs. 65,000 discounted for Rs. 63,000
Fixed Assets Rs. 5,00 ,000 sold
Short term loans raised Rs. 1,00,000
Issue of shares Rs. 10,00,000 against fixed assets
Good will written off Rs. 5000

From the following details, prepare Land and Buildings A/c and explain the treatment of various items in the preparation of Cash Flow Statement .

Balance in Land And Buildings A/c as at 1-4-2012 Rs. 5,60,000 and as at 31-3-2013 Rs. 8,04,000
Purchase of Land and Buildings during the year 2012-13 Rs. 3,00,000.
There was no sale of any land or buildings during the year.

From the following data, compute trend percentages taking 2008 as base.

Year

Sales (Rs.)

Closing Stock (Rs.)

Profit Before Tax (Rs.)

2008

2009

2010

2011

2012

2,58,680

3,53,460

3,68,550

4,12,430

4,87,560

1,20,580

1,25,760

1,32,540

1,34,780

1,45,730

55,750

63,520

65,120

72,460

87,290

Section – C

Answer any THREE Each carries 15 marks. (3 x 15 = 45)

From the following Balance Sheets of RKS Ltd, prepare comparative balance sheet and comment upon the financial position of the company

Particulars

2012

2013

Assets:

Land and buildings

Plant and Machinery

Furniture

Other fixed assets

Cash in hand

Bills receivables

Sundry debtors

Stock

Prepaid expenses

Total

3,70,000

4,00,000

20,000

25,000

20,000

1,50,000

2,00,000

2,50,000

–

2,70,000

6,00,000

25,000

30,000

80,000

90,000

2,50,000

3,50,000

2,000

14,35,000

16,97,000

Liabilities

Equity share capital

Reserves and surplus

Debentures

Long-term loans

Bills payable

Sundry creditors

Other current liabilities

Total

6,00,000

3,30,000

2,00,000

1,50,000

50,000

1,00,000

5,000

8,00,000

2,22,000

3,00,000

2,00,000

45,000

1,20,000

10,000

14,35,000

16,97,000

From the following information, prepare income statement and balance sheet:

Debtors turnover ratio = 2 times

Inventory turnover ratio=1.25

Fixed assets turnover ratio= 0.8

Debts assets ratio= 0.6

Net profit margin = 5%

Gross profit margin = 25%

Return on investments = 2%

Income statement:

Particulars

Amount

Sales

Less: Cost of goods sold

Gross profit

Less: other expenses

EBT

Less: Interest at 5%

EAT

1,00,000

–

Balance sheet

Equity

Long term debt

Short term debt

–

50,000

Net fixed assets

Inventory

Sundry debtors

Cash

–

Balance sheet of Anita ltd as on 31.12.2012 and 31.12.2013 were as follows:

Liabilities

2012

2013

Assets

2012

2013

Share capital

Share premium

8% debentures

General reserves

P & L account

Provision for taxation

Proposed dividend

S. creditors

2,00,000

–

1,00,000

50,000

30,000

20,000

50,000

3,00,000

10,000

50,000

80,000

70,000

40,000

30,000

70,000

Plant & Machinery

Land & buildings

Investment

Stock

Debtors

Cash and bank

2,00,000

50,000

10,000

80,000

90,000

70,000

3,00,000

1,10,000

50,000

60,000

80,000

50,000

5,00,000

6,50,000

5,00,000

6,50,000

Additional information:

Investments costing Rs. 8,000 was sold for Rs. 15,000. The profit being

credited to P & L A/c.

An interim dividend of Rs. 20,000 was paid during the year.

Accumulated depreciation on

31.12.2012 31.12.2013

Land & Building 30,000 40,000

Plant & Machinery 40,000 60,000

Depreciation charged during the year

Land & Building Rs. 10,000

Plant & Machinery Rs. 20,000

Debentures were redeemed at par

Profit & loss account balance 2012 Rs. 50,000

Add: profit for 2013 Rs. 40,000

Rs. 90,000

Less: interim dividend Rs. 20,000

Rs. 70,000

Prepare a Cash flow statement

The following schedule shows the balance sheets in condensed form of Machinery manufacturing ltd. At the end of the year 2012 and 2013.

Assets :	2012	2013
Cash and bank balance Sundry debtors Temporary investments Prepaid expenses Stock Land & buildings Machinery	90,000 67,000 1,10,000 1,000 82,000 1,50,000 52,000	90,000 43,000 74,000 2,000 1,06,000 1,50,000 70,000
	5,52,000	5,35,000
Liabilities: Sundry creditors Outstanding expenses 8% debentures Depreciation fund Reserve for contingencies P & L a/c Share capital	2012 1,03,000 13,000 90,000 40,000 60,000 16,000 2,30,000	2013 96,000 12,000 70,000 44,000 60,000 23,000 2,30,000
	5,52,000	5,35,000

The following information concerning the transactions is available:

10% dividend was paid in cash
New machinery for Rs. 30,000 was purchased but old machinery costing Rs. 12,000 was sold for Rs. 4,000, accumulated depreciation was Rs. 6,000.
Rs. 20,000, 8% debentures were redeemed by purchase from open market at Rs.96 per debentures of Rs. 100.
Rs. 36,000 investments were sold at book value.

You are required to prepare schedule of changes in working capital and fund flow statement.

The profits of Excellent ltd declined year by year. As a management accountant of the company draft a report to the management exploring the reasons for declining profit and suggest the corrective measures.

Section – D

IV) ONE Compulsory question. (1 x 15 = 15)

22.

Michael Ltd. wants to expand its operations. It needs additional funds. However, HDFC Ltd., its banker is not in a position to provide any additional funds to it due to credit squeeze. Rather it wants the company to reduce its bank overdraft substantially preferably by 50% in the next six months. The management appoints you as a Consultant to ascertain what has gone wrong with the company and suggest appropriate measures.

The Balance sheets of the company as on 31.12.2012 and 31.12.2013 are as follows:

(Rs. In Lakhs)

Liabilities

2012

2013

Assets

2012

2013

Share capital

Reserves

6% Debentures(Unsecured)

8% Mortgage on Freehold Property

Creditors

Proposed Dividend

Provision for taxation

Secured overdraft ( by a floating charge on assets)

300.00

225.00

75.00

27.00

45.00

22.50

21.00

15.00

300.00

240.00

75.00

14.25

45.00

23.25

37.50

82.50

Freehold property

Plant & Machinery

Investment on shares

Other investments

Stock

Debtors

Bank

225.00

135.00

150.00

112.50

52.50

45.00

10.50

240.00

165.00

150.00

112.50

75.00

—

730.50

817.50

730.50

817.50

The following additional information for the year 2013 is relevant:

Credit Sales 875 lakh
Credit Purchases 520 lakh
Overheads 83.75 lakh
Depreciation on Plant and Machinery 17.50 lakh
Dividend for 2012 was paid in full
Amount paid towards taxations for the year 2013 21.50 lakh

You are required to prepare a cash flow statement and briefly comment on the financial position of the company and suggest remedial measures to overcome the financial crisis.

St. Joseph’s College of Commerce B.Com. 2014 V Sem Management Accounting Question Paper PDF Download

April 5, 2018 by prasant kumar

JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – SEPT /OCT. 2014

B.Com (Travel & Tourism) – V SEMESTER

MANAGEMENT ACCOUNTING

Duration: 3 Hours Max. Marks: 100

SECTION – A

Answer ALL the questions. Each carries 2 marks. (10 x2 =20)

How does a Cash Flow Statement differ from a Fund Flow Statement?
Mention any four essentials of an effective system of Budgetary Control?
State with examples the type of transactions that do not result in a flow of funds?
Differentiate between a fund flow statement and an Income statement.
Calculate Stock Turnover Ratio from the following information:

Opening Stock Rs. 30,000

Purchase Rs. 1,15,000

Closing Stock Rs. 20,000

Current ration 2.50 Acid test ratio 1.75 Stock Rs. 1,50,000. Calculate net working capital.
Classify the following into:

Operating Activities (ii) Investing Activities (iii) Financing Activities
Interest paid on Debentures or Long term loans by a Financing Company.
Interest paid on Debentures or Long term loans by a Non Financing Company.
Sale of patents.
Issue of share capital

List the chief characteristics of Management Accounting.

The opening balance in the Provision for Taxation Account as on 1^st January 2013 was Rs. 30,000 and the closing balance on 31^st December 2013 was Rs. 40,000. The taxes paid during the year amounted to Rs. 25,000. How will you deal with this item in the fund flow statement?

Average stock of a firm is Rs. 1,00,000 and its opening stock is Rs. 10,000 less than the closing stock . Calculate opening and closing stock.

SECTION – B

Answer any FOUR Each carries 5 marks. (4×5=20)

Alpha Manufacturing Co. has drawn up the following Profit and Loss Account for the year ended 31^stMarch 2013.

Particulars	Amount	Particulars	Amount
To Opening Stock	26,000	By Sales	1,60,000
To Purchases	80,000	By Closing Stock	38,000
To Wages	24,000
To Manufacturing Expenses	16,000
To Gross Profit c/d	52,000
	1,98,000		1,98,000
To Selling & Dist Expenses	4,000	By Gross Profit b/d	52,000
To Administrative Expenses	22,800	By Compensation for acquisition of land	4,800
To General Expenses	1,200
To Value of Furniture (loss by fire)	800
To Net Profit	28,000
	56,800		56,800

You are required to calculate :

Selling and distribution expenses ratio
Gross Profit Ratio
Net Profit Ratio
Operating Ratio
Operating Profit Ratio.

State with reasons whether the following transactions result in an increase or decrease of working capital or do not affect the working capital.

(a) Issue of equity shares of Rs. 2,50,000 for cash.

(b) Land was exchanged for machinery worth Rs. 1,50,000.

(c ) Sold goods costing Rs. 25,000 for Rs. 30,000.

(d) Debtors of Rs. 10,000 paid cash.

(e) Purchased machinery for Rs. 75,000 in cash.

Calculate Fund from operations from the following Profit and Loss A/c.

Profit & Loss Account
Particulars	Rs	Particulars	Rs
To Salaries	10,000	By Gross Profit	2,00,000
To Rent	3,000	By Profit on sale of Machine	5,000
To commission	2,000	By Refund of tax	3,000
To Discount allowed	1,000	By Dividends received	2,000
To Selling Expenses	20,000
To Transfers to General Reserve	20,000
To Provision for tax	10,000
To Loss on sale of Investments	5,000
To Discount on issue of Debentures	2,000
To Preliminary Expenses	3,000
To Provision for Depreciation	14,000
To Net Profit	1,20,000
	2,10,000		2,10,000

From the following information of a manufacturing concern . Compute Trend ratios taking 2010 as the base year (interpretation not required).

Particulars

2010

2011

2012

2013

Sales (Net)

Less: Cost of goods sold

Gross Profit

Less: Operating expenses

Net operating profit

Less: taxes

Profit after tax

100

120

17.5

150

17.5

From the following particulars , prepare a Cash Flow Statement for the year ended 31^st March 2013.

(i) Total sales for the year were Rs. 20,50,000 out of which cash sales amounted to Rs. 14,20,000.

(ii) Total purchases for the year were Rs. 15,30,000 out of which cash purchases totalled Rs. 10,20,000.

Cash collected from credit customers during the year amounted to Rs. 4,80,000.
Cash paid to suppliers of goods on credit was Rs. 4,50,000.
Depreciation for year was Rs. 40,000 whereas salaries and other expenses amounted

to Rs. 1,60,000

Redeemable preference shares of the face value of Rs. 1,00,000 were redeemed during

the year at a premium of 10% .

Income tax paid Rs. 80,000.
New machinery was purchased for Rs. 30,000 on 1^st January 2013.
25,000 was paid as dividend for the year ended 31^st March 2013.
Equity shares of the face value of Rs. 2,00,000 were issued at a premium of 5% during the year .
The balance of cash and bank as on 1^st April 2012 was Rs. 85,000.

Calculate ‘Cash from operations’ from the following information:

	March 31, 2013 Rs.	March 31, 2014 Rs.
Profit & Loss Account	80,000	90,000
Stock	60,000	50,000
Debtors	25,000	23,000
Bills Receivable	8,000	9,000
Creditors	32,000	28,000
Expenses outstanding	3,500	4,500
Bills Payable	35,000	22,000

SECTION – C

III) Answer any THREE questions. Each carries 15 marks. (3×15=45)

17.a) Nike Ltd has three sales divisions at Mumbai , Bangalore and Delhi . It sells two products – Product X and Product Y. The budgeted sales for the year ending 31^st December 2012 at each place are given below:

Mumbai

Product X

Product Y

1,00,000 units @ Rs. 8 each

70,000 units @ Rs. 5 each

Bangalore

Product Y

1,10,000 units @ Rs. 5 each

Delhi

Product X

1,50,000 units @ Rs. 8 each

The actual sales during the same period were as follows:

Mumbai

Product X

Product Y

1,25,000 units @ Rs. 8 each

75,000 units @ Rs. 5 each

Bangalore

Product Y

1,25,000 units @ Rs. 5 each

Delhi

Product X

1,55,000 units @ Rs. 8 each

From the reports of the sales personnel it was considered that the sales budget for the year ending 31^st December 2013 would be higher than 2012 budget in the following aspects:

Mumbai

Product X

Product Y

8,000 units

5,000 units

Bangalore

Product Y

13,000 units

Delhi

Product X

10,000 units

Intensive sales campaign Bangalore and Delhi is expected to result in additional sales of 25,000 units in product X in Bangalore and 18,000 units of product Y in Delhi.

You are required to prepare a sales budget for the period ending 31^st December 2013.

b) Explain any five differences between Financial Accounting and Management Accounting. (10+5)
Following are the summarized balance sheets of ESS GEE Ltd. as on December , 31^st 2012 and 2013.

Liabilities	2012 (Rs)	2013 (Rs)	Assets	2012 (Rs)	2013 (Rs)
Share Capital	1,00,000	1,30,000	Land & Building	1,00,000	95,000
General Reserve	25,000	30,000	Machinery	75,000	84,500
Profit and Loss A/c	15,200	15,400	Stock	50,000	37,000
Bank Loan (Long term)	35,000	—	Sundry Debtors	40,000	32,100
Sundry Creditors	75,000	67,500	Cash	200	300
Provision for tax	15,000	17,500	Bank	—	4,000
			Goodwill	—	7,500
	2,65,200	2,60,400		2,65,200	2,60,400

Additional Information:

Dividend of Rs. 11,500 was paid.
Assets of another company were purchased for a consideration of Rs. 30,000 payable in shares .

The following assets were purchased:

Stock Rs. 10,000 Machinery Rs. 12,500

Machinery was further purchased for Rs. 4,000.
Depreciation written off machinery Rs. 6,000.
Income tax provided during the year Rs. 16,500.
Loss on sale of machine Rs. 100 was written off to General Reserve.

You are required to prepare a Funds Flow statement.

Prepare the Balance Sheet of KT Ltd as on 31^st March 2013 from the following.

Gross Profit ratio	25%
Current ratio	2.3
Liquidity ratio	1.2
Stock Turnover ratio	4.5 times
Fixed Assets Turnover ratio (Based on sales)	2 times
Debt collection period	1.5 months
Fixed Assets to Shareholders net worth	1.2
Reserves and Surplus to Equity	0.3
Net Working Capital	Rs. 2,60,000

Following is the balance sheet of AB Co Ltd as at 1/01/ 2013. And 31/12/ 2013

Liabilities	1/01/2013	31/12/2013	Assets	1/01/2013	31/12/2013
Equity share capital	3,00,000	3,50,000	Land & building	2,30,000	3,90,000
Share premium	_____	30,000	Plant & Machinery	85,400	1,40,000
General reserve	45,000	65,000	Furniture	5,500	6,500
Profit and loss	30,000	80,800	Stock	82,400	95,700
Debentures	______	70,000	Sundry debtors	75,000	85,500
Sundry creditors	85,000	90,700	Bank balance	34,200	44,300
Provision for taxation	22,500	40,500
Proposed dividend	30,000	35,000
	5,12,500	7,62,000		5,12,500	7,62,000

Additional Information:

Depreciation written off during the year.

Land and building Rs. 60,000

Plant and machinery Rs. 50,000

Furniture Rs. 1,200

Tax paid during the year Rs. 22,500 and dividend paid is Rs. 30,000

You are required to prepare a Cash Flow Statement.

The expenses budgeted for production of 10,000 units in a factory are furnished

below:

Particulars	Per unit (Rs)
Materials	70
Labour	25
Variable Expenses (Direct)	5
Variable Factory Overheads	20
Fixed Factory Overheads (Rs. 1,00,000)	10
Selling Expenses (10% fixed)	13
Distribution Expenses (20% fixed)	7
Administrative Expense (Fixed – Rs. 50,000)	5
Total cost of sales per unit	155

You are required to prepare a budget for the production of 6000 units, 8,000 units and 10,000 units showing total cost and cost per unit.

SECTION – D

IV) Case study- Compulsory questions. (15 marks)

The following are the balance sheets o Hindustan Ltd for the year 1/01/2012 and 31/12/2012.

Liabilities	1/01/2012	31/12/2012	Assets	1/01/2012	31/12/2012
Equity share capital	4,00,000	6,60,000	Fixed assets less depreciation	4,80,000	7,00,000
Pre. Share capital	2,00,000	3,00,000	Stock	80,000	1,00,000
Reserves	40,000	60,000	Debtors	2,00,000	2,50,000
Profit & Loss A/c	30,000	40,000	Bills Receivable	40,000	1,20,000
Bank O.D.	1,00,000	1,00,000	Prepaid expenses	20,000	24,000
Creditors	80,000	1,00,000	Cash in hand	80,000	1,06,000
Provision for taxation	40,000	50,000	Cash at Bank	20,000	60,000
Proposed dividend	30,000	50,000
	9,20,000	13,60,000		9,20,000	13,60,000

(a) Compare the financial position of the above two companies with the help of a

Comparative Balance Sheet.

(b) Identify the changes that have taken place in the working capital of the company

and comment.

(c ) Has the increase in fixed assets been financed from long or short term funds?

How would you evaluate the company’s policy with regard to this aspect?

(d) Comment on the short term and long term position of the concern and draw a

conclusion of the overall profitability of the organisation.

St. Joseph’s College of Commerce Management Accounting Question Paper PDF Download

April 5, 2018 by prasant kumar

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

End Semester ExaminationS– MARCH / APRIL 2015

BBm – VI SEMESTER

M111602: MANAGEMENT ACCOUNTING

Duration: 3 Hours Max. Marks: 100

SECTION – A

Answer ALL the questions. Each carries 2 marks. (10×2=20)

What is meant by Management Reporting?

Give any four examples of Current Assets.

What is the need for calculating Turnover Ratio? State any two turnover ratios.

When will there be a flow of fund? Explain with a suitable example.

Explain briefly Notional Cash Inflow and Outflow.

Distinguish between External Reports and Internal Reports.

Calculate Expenditure Ratios:

Factory Expenses = Rs. 30,000.

Administrative Expenses = Rs. 20,000.

Net Sales = Rs. 1,20,000.

Net Profit = Rs. 50,000.

Who are the users of Financial Statements of a Company? Elaborate.

Give any two points of differences between a funds flow statement and a cash flow statement.

10.

What is the procedure for preparing funds flow statement?

SECTION – B

II)

Answer any FOUR questions. Each carries 5 marks. (4×5=20)

11.

Prepare a Common-Size Income Statement for the following income statements of GT Ltd. for the year ended 31^st March 2013 and 2014.

Particulars	2013 (Rs.)	2014 (Rs.)
Gross Sales	31,00,000	39,00,000
Less: Sales Returns	1,00,000	2,00,000
Net Sales	30,00,000	37,00,000
Cost of Goods Sold	19,00,000	20,00,000
Gross Profit	11,00,000	17,00,000
Operating Expenses:
Administrative Expenses	3,75,000	5,30,000
Selling and Distribution Expenses	2,35,000	2,50,000
Total Expenses	6,10,000	7,80,000
Operating Income	4,90,000	9,20,000
Non- Operating Income	1,35,000	2,15,000
Total Income	6,25,000	11,35,000
Non-Operating expenses: Interest	1,95,000	2,15,000
Profit Before Tax	4,30,000	9,20,000
Less: Tax	2,00,000	4,00,000
Net Profit After Tax	2,30,000	5,20,000

12.

From the following balance sheets of Zain Company prepare a statement showing changes in working capital.

Particulars	31.12.2013 (Rs.)	31.12.2014 (Rs.)
I. Equity and Liabilities
Shareholder’s Funds:
a. Share Capital	1,50,000	1,25,000
b. Reserves and Surplus:
– Profit & Loss A/c	75,000	60,000
– Preliminary Expenses	(3,000)	(5,000)
Non-current Liabilities	—	—
Current Liabilities:
Short-term Borrowings: – Loans (Payable on demand)	20,000	—
Trade Payables:
– Trade creditors	45,000	50,000
– Bills Payable	35,000	20,000
TOTAL	3,22,000	2,50,000

II. Assets
Non-Current Assets:
– Tangible Fixed Assets (Land)	27,000	15,000
– Intangible Assets (Goodwill)	5000	10,000
Non-current Investments	10,000	15,000
Currents Assets:
– Inventories (Stock)	1,20,000	87,000
– Trade Receivables (Debtors)	90,000	98,000
– Cash and Cash Equivalents	70,000	25,000
TOTAL	3,22,000	2,50,000

13.

“The task of management accounting involves furnishing of accounting data to the management for basing its decisions on it”— In the light of this statement describe the various characteristics of management accounting.

14.

Calculate (i) Sales (ii) Closing stock (iii) Sundry Debtors (iv) Sundry Creditors from the following ratios.

Gross Profit Ratio = 20%; Stock Velocity = 5 times; Debtors Velocity = 3 months; Creditors Velocity = 2 months; Gross Profit as on 31^st March, 2014 is Rs. 1,40,000 and Opening stock is Rs. 80,000.

15.

Indicate whether the following transactions result in a flow of funds or not, and whether it will lead to an increase /decrease or does not affect the working capital.

Purchase of fixed assets by borrowing long term loan

ii. Redemption of Preference share capital

Received acceptances from customers
Payment or discharge of bills payable
Purchase of New Machinery.

16.

Diagrammatically depict the traditional classification of ratios.

SECTION – C

III)

Answer any THREE questions. Each carries 15 marks. (3×15=45)

17.

Prepare the Trading and Profit & Loss A/c and Balance Sheet as on 31^st March, 2014 from the following information.

Gross Profit Ratio = 20%	Fixed Assets = Rs. 12,00,000
Net Profit Ratio = 16%	Sundry Debtors = Rs. 70,000
Stock turnover ratio = 5 times	Current Ratio = 3:1
Net Profit to Capital = 1/8	Long Term Loan =Rs. 2,75,000
Fixed Assets to Capital = 6/5	Operating expenses = Rs. 20,000
Fixed Assets to Current Assets = 4	Non- operating expenses = Rs. 11,250.
Capital to Total Liabilities = 2/3	Closing stock = Rs. 1,40,000

18.

The following are the Balance Sheets of a concern for the year 2013 and 2014. Prepare a Comparative Balance Sheet.

I. Equity and Liabilities	2013 (Rs.)	2014 (Rs.)
Equity Share Capital	6,00,000	12,00,000
Reserves and Surplus	4,00,000	5,00,000
Debentures	5,00,000	9,00,000
Long Term Loans on Mortgage	2,00,000	5,00,000
Bills Payable	2,00,000	3,00,000
Sundry Creditors	90,000	2,70,000
Other Current Liabilities	10,000	30,000
TOTAL	20,00,000	37,00,000
II. Assets
Land & Buildings	6,00,000	10,00,000
Plant & Machinery	4,00,000	10,00,000
Other Fixed Assets	1,00,000	1,50,000
Cash & Bank	50,000	1,50,000
Inventories	4,50,000	6,50,000
Sundry Debtors	1,00,000	3,90,000
Bills Receivable	3,00,000	3,50,000
Prepaid Expenses	—-	10,000
TOTAL	20,00,000	37,00,000

Comment on:

a. Short term financial position of the concern showing the effect on working capital.

b. Long term financial position.

c. Profitability of the concern.

19.

The following are the summaries of the Balance Sheet of a Limited Company as at 31.12.2013 and 31.12.2014.

Particulars	2013 (Rs.)	2014 (Rs.)
I. Equity and Liabilities:
Shareholder’s Funds:
Share Capital	2,00,000	2,60,000
Reserves and Surplus:
– Reserves	50,000	50,000
– Profit & Loss A/c	39,690	41,220
Non-current Liabilities:
– Provision for Taxation	40,000	50,000
Current Liabilities:
– Bank Overdraft	59,510	—
– Trade Payables:
– Sundry Creditors	39,500	41,135
– Bills Payable	33,780	11,525
TOTAL	4,62,480	4,53,880
II. Assets
Non-Current Assets:
Tangible Assets:
– Land & Building	1,48,500	1,44250
– Plant & Machinery	1,12,950	1,16,200
Intangible Assets: (Goodwill)	—-	20,000
Current Assets:
– Inventories (Stock)	1,11,040	97,370
– Sundry Advances	2,315	735
– Trade Receivables (Sundry Debtors)	85,175	72,625
– Cash at Bank	2,500	2,700
TOTAL	4,62,480	4,53,880

The following additional information is obtained from the general ledger:

a. During the year ended 31^st December, 2014, an interim dividend of Rs. 26,000 was paid.

b. The assets of another company were purchased for Rs. 60,000 payable in fully paid shares of the company. These assets consisted of stock Rs. 21,640, machinery Rs. 18,360 and goodwill Rs. 20,000. In addition, sundry purchases of Plant were made totaling Rs. 5,650.

c. Income tax paid during the year amounted to Rs. 25,000.

d. The net profit for the year before tax was Rs. 62,530.

You are required to prepare a statement showing the sources and applications of funds for the year ended 31.12.2014 with all the necessary workings.

20.

(a) What are the objectives of reports to management? Suggest general principles to be borne in mind when designing reports.

(b) “The purpose of cost accounting is not merely ascertainment of cost, it is also performance evaluation and management decision-making”—In this context bring out the various differences between Cost and Management Accounting. (10+5)

21.

The following are the comparative balance sheets of ABC Ltd. as on 31^st March 2014 and 2013:

Particulars	2013 (Rs.)	2014 (Rs.)
I. Equity and Liabilities
Shareholders Fund’s:
Share Capital (Shares of Rs. 10 each)	3,70,000	3,50,000
Reserve and Surplus:
– Profit & Loss A/c	52,800	50,400
Non-Current Liabilities:
– 9% Debentures	30,000	60,000
Current Liabilities:
– Trade Payables (Creditors)	59,200	51,600
TOTAL	5,12,000	5,12,000

II. Assets
Non-Current Assets:
– Tangible Assets: (Land)	1,50,000	1,00,000
– Intangible Assets: (Goodwill)	25,000	50,000
Current Assets:
– Inventories (stock)	2,13,500	2,46,000
– Trade Receivables (Debtors)	84,500	71,000
– Cash and Cash Equivalents:
Cash and Bank	35,000	42,000
Temporary Investments	4,000	3,000
TOTAL	5,12,000	5,12,000

Other particulars provided to you are as follows:

a. Dividends declared and paid during the year Rs. 17,500.

b. Land was revalued during the year at Rs. 1,50,000 and the profit on revaluation transferred to Profit & Loss A/c.

You are required to prepare Cash Flow Statement for the year ended 31.3.2014 using Indirect Method.

SECTION – D

IV)

Case Study (1×15=15)

22.

KMWD Ltd. furnishes the following financial figures:

Particulars	31.3.2013	31.3.2014
Preference Share Capital	5,00,000	7,00,000
Debentures	3,00,000	2,00,000
Loan	2,50,000	3,25,000
Current Assets	5,00,000	6,00,000
Current Liabilities	2,50,000	3,00,000
Inventory (included in current assets)	15,000	25,000

(a) Calculate Cash Flow from Financing Activities from the above information. (4 marks)

(b) Compute current ratio and liquid ratio for KMWD Ltd. for the both years and Comment on the current financial position of the Company. (6 marks)

(i) Purchase of fixed assets against issue of shares or debentures.

(ii) Writing off of fictitious assets, say goodwill. (2 marks)

(d) From the table above show the Net Working Capital of the company for both the years and Comment. (3 marks)

*****************************

St. Joseph’s College of Commerce V Sem Management Accounting Question Paper PDF Download

April 4, 2018 by prasant kumar

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – SEPT/OCT. 2015

B.COM (T.T.) – V SEMESTER

C2 12 502 : MANAGEMENT ACCOUNTING

Duration: 3 Hours Max. Marks: 100

SECTION – A

Answer ALL the questions. Each carries 2 marks. (10×2=20)

Mention any two characteristics of Management Accounting.

Issue of Shares against purchase of Land Rs. 25,00,000. Does this transaction involve flow of funds? Give reason. If it does, state the amount of flow.

Mention any four tools of Financial Statement Analysis.

What is Management Accounting?

Mention any two roles of a Management Accountant in the present scenario.

‘Management Accounting is very advantageous to any organization’. Mention any two advantages to support this statement.

Working Capital is Rs. 5,40,000; Current Ratio = 2.8 : 1; Inventory = Rs. 3,30,000. Calculate Current Assets, Current Liabilities and Quick Ratio.

Under what heads do the following appear in Cash Flow Statement.

A	Interest received on Investments.
B	Dividends paid on Preference Shares.
C	Purchase of Fixed Assets.
D	Purchase of Stock against issue of shares.

From the following, calculate Debt-equity Ratio.

Particulars	Amount (Rs.)
Equity Share Capital	2,50,000
Reserves and Surplus	1,50,000
Profit and Loss	25,000
12% Debentures	2,00,000

10.

Calculate Funds from Operation from the following:

Particulars	Amount (Rs.)
Net Profit as per Profit and Loss Account	1,25,000
Interest on Investments received	1,500
Loss on sale of assets	2,000
Depreciation on Plant and Machinery	12,000
Salary paid for the year	72,000

SECTION – B

II)

Answer any FOUR questions. Each carries 5 marks. (4×5=20)

11.

Mention any five differences between Financial Accounting and Management Accounting.

12.

From the following Balance Sheets of the Hindusthan Industries Ltd. compute the trend percentages using 31^st March 2013 as the base year. (INTERPRETATIONS NOT REQUIRED)

Particulars	2012-2013	2013-2014	2014-2015
Share Capital	2,00,000	2,50,000	3,00,000
Reserves	1,00,000	1,50,000	1,50,000
Loans	2,00,000	1,00,000	50,000
Sundry Creditors	3,00,000	4,00,000	2,00,000
Buildings	2,00,000	2,50,000	3,00,000
Plant	2,00,000	2,50,000	1,00,000
Stock	2,50,000	2,50,000	1,50,000
Debtors	1,00,000	1,00,000	1,00,000
Cash at Bank	50,000	50,000	50,000

13.

Calculate funds from Operation from the following:

a.	Net Profit for the year ended 31.03.2015 is Rs. 16,50,000.
b.	Gain on sale of building Rs. 35,500.
c.	Goodwill appears in the books at Rs. 1,80,000 out of which 20% has been written off.
d.	Old Machinery worth Rs. 18,000 has been sold for Rs. 16,500 during the year.
e.	Rs. 1,75,000 has been transferred to General Reserve.
f.	Depreciation has been provided on Machinery and Furniture at 10% of total cost. Total Cost of Machinery and Furniture amount to Rs. 60,50,000.

14.

The expenses for the production of 5,000 units in a factory are given as follows:

Particulars	Per Unit (Rs.)
Materials	50
Labour	20
Variable Overheads	15
Fixed Overheads (Rs. 50,000)	10
Administrative expenses (5% variable)	10
Selling Expenses (20% Fixed)	6
Distribution expenses (10% Fixed)	5
Total cost of sales per unit	116

You are required to prepare a budget for the production of 7,000 units.

15.

From the following figures calculate cash flow from operating activities:

Particulars	2015 (Rs.)	2014 (Rs.)
Balance of Profit & Loss	5,00,000	2,50,000
Provision for Depreciation	1,60,000	80,000
Outstanding wages	8,000	15,000
Prepaid Insurance	16,000	9,000
Goodwill	25,000	32,000
Provision for Doubtful Debts	20,000	14,000
Balance of Trade Receivables	1,10,000	98,000
Provision for Income Tax	45,000	25,000
Cash and bank balance	13,000	25,000

16.

Calculate the following ratios with the help of the information given:

a) Operating Ratio	b) Gross Profit Ratio
c) Quick Ratio	d) Turnover to Working Capital Ratio
e) Shareholders’ Funds to Total Assets Ratio.

Information:

Particulars	Rs.	Particulars	Rs.
Equity Share Capital	2,00,000	Opening Inventory	24,000
8% Preference Share Capital	1,60,000	Purchases	2,40,000
9% Debentures	1,20,000	Wages	16,000
General Reserve	20,000	Closing Inventory	36,000
Sales	4,00,000	Selling and Distribution Expenses	4,000
Liquid Assets	1,00,000	Non-current Assets	4,24,000
Current Liabilities	60,000

SECTION – C

III)

Answer any THREE questions. Each carries 15 marks. (3×15=45)

17.

With the help of following ratios and further information given below, complete the Trading Account, Profit and Loss Account and Balance Sheet of Deepa and Co.

Gross Profit Ratio	20%	Net Profit Ratio	15%
Sales/Inventory Ratio	6	Fixed Assets/Total Current Assets	1:1
Fixed Assets/Total Capital	3/2	Capital/Total Outside Liabilities	1 / 2
Inventory (Rs.)	3,90,000	Fixed Assets (Rs.)	27,00,000

Trading and Profit and Loss Account

Particulars	Amount	Particulars	Amount
To Cost of goods sold		By Sales
To Gross Profit c/d

To Expenses		By Gross Profit b/d
To Net Profit

Balance Sheet as at ………

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital			Fixed Assets
Add: Profit			Current Assets:
			Stock
Outside Liabilities			Other Current Assets
Total			Total

18.

From the following prepare the schedule of changes in Working Capital and Fund Flow Statement.

Name of the Co.: ABC Ltd.

Balance Sheet as at 31^st December, 2014

Particulars	Note No.	31.12.2014	31.12.2013
I. EQUITY AND LIABILITIES:
(1) Shareholders’ Funds:
(a) Share Capital		3,60,000	2,40,000
(b) Reserves and Surplus	1	1,25,400	1,00,500

(2) Share Application Money pending allotment

(3) Non-current Liabilities:
(a) Long-term borrowings (8% Debentures)		78,000	–

(4) Current Liabilities:
(a) Short-term borrowings
(b) Trade Payables (Creditors)		1,09,200	1,00,500
( c) Other current liabilities
( d) Short-term provisions (Tax)		32,700	29,400

TOTAL		7,05,300	4,70,400

II. ASSETS:
(1) Non-current assets:
(a) Fixed Assets:
(i) Tangible Assets	2	4,98,000	2,80,200
(ii) Intangible Assets
(b) Non-current Investments

(2) Current Assets:
(a) Current Investments
(b) Inventories		78,000	66,300
( c) Trade Receivables (Debtors)		1,17,300	1,09,500
( d) Cash and Cash Equivalents (Bank)		12,000	14,400
(e) Short-term Loans and Advances
(f) Other Current Assets

TOTAL		7,05,300	4,70,400

Note: 1:
Reserves and Surplus:	31.12.2014	31.12.2013
General Reserve	27,000	18,000
Share Premium	36,000	24,000
Profit and Loss A/c	62,400	58,500
	1,25,400	1,00,500

Note: 2:
Tangible Assets
Land and Building	3,39,600	1,66,200
Plant and Machinery	1,53,900	1,06,800
Furniture	4,500	7,200
	4,98,000	2,80,200

Additional Information:

Depreciation written off during the year on Machinery is Rs. 38,400 and on Furniture is Rs. 1,200.

Assume Debentures were issued at the beginning of the year.

19.

A company is expecting to have Rs. 18,000 cash in hand on 1.4.2015 and it requests you to prepare cash budget for the three months, April to June 2015. The following information is supplied to you:

Month	Sales (Rs.)	Purchases (Rs.)	Wages (Rs.)	Expenses (Rs.)
Feb	70,000	44,000	6,000	5,000
Mar	80,000	56,000	9,000	6,000
Apr	96,000	60,000	9,000	7,000
May	1,00,000	68,000	11,000	9,000
Jun	1,20,000	62,000	14,000	9,000

Other information:

a) Period of credit allowed by suppliers is two months.

b) 15% of sales are for cash and the period of credit allowed to customers for credit sales is one month.

c) Delay in payment of wages and expenses one month.

d) Income tax Rs. 28,000 is to be paid in June 2015.

e) Dividend to be received in May 2015 Rs. 5,000.

f) Capital Expenditure to be incurred in May 2015 is Rs. 60,000.

20.

Vishnu. Ltd provides you the following information for the year ending 31^st March 2015.

1	Sales for the year amounted to Rs. 2,00,000 out of which 60% is for cash.
2	Cost of goods sold was 50% of total sales.
3	All inventories were purchased on credit.
4	Collections from debtors amounted to Rs. 60,000.
5	Payments to creditors for inventory totaled Rs. 45,000.
6	Depreciation charged during the year on machinery amounted to Rs. 15,000.
7	Goodwill written off during the year Rs.30,000
8	Total salary for the period amounted to Rs. 6,000 out of which Rs.1,000 was outstanding.
9	Office expenses paid in cash amounted to Rs.8,000 and outstanding office expenses were Rs.2,000.
10	Land was purchased for Rs. 2,50,000 and the consideration was discharged by the allotment to the vendors of zero percent convertible debentures.
11	Fully paid equity shares of the face value of Rs. 2,00,000 were issued at a premium of 20%.
12	A machine was sold for Rs. 15,000. The book value of the machine was Rs. 17,000.
13	Another machine having a book value of Rs. 4,000 was scrapped and was treated as ordinary business loss.
14	A vehicle was purchased for cash at a cost of Rs. 1,50,000.
15	Dividends paid during the period amounted to Rs. 40,000.
16	Income tax paid Rs.10,000.
17	Cash in hand and at bank as at 31^st March 2014 totaled Rs. 75,000.

You are required to prepare a Cash Flow statement using direct method.

21.

The Balance Sheets of S & Co. and K & Co. are given as follows:

Balance Sheets as at 31.03.2015

Particulars	S & Co. (Rs.)	K & Co. (Rs.)
Equity and Liabilities:
Shareholders’ Funds:
Preference Share Capital	1,20,000	1,60,000
Equity Share Capital	1,50,000	4,00,000
Reserves and Surplus	14,000	18,000
Non-current Liabilities
Long-term Loans	1,15,000	1,30,000
Current Liabilities:
Bills Payables	2,000	0
Sundry Creditors	12,000	4,000
Outstanding Expenses	15,000	6,000
Proposed Dividend	10,000	90,000
Total	4,38,000	8,08,000
Assets:
Non-current Assets
Land and Building	80,000	1,23,000
Plant and Machinery	3,34,000	6,00,000
Current Assets
Temporary Investments	1,000	40,000
Inventories	10,000	25,000
Trade Receivables	4,000	8,000
Prepaid Expenses	1,000	2,000
Cash and Cash Equivalents	8,000	10,000
Total	4,38,000	8,08,000

Prepare the Common Size Balance Sheet of the two Companies and answer the following questions:

(a) What is the position of working capital in both the companies?

(b) Which company has depended more on outsiders’ funds?

SECTION – D

IV)

Case Study (1×15=15)

22.

The Balance Sheets of Vijay Ltd., are as follows:

Liabilities	31.03.14	31.03.15	Assets	31.03.14	31.03.15
Equity Share Capital	4,00,000	5,00,000	Plant and Machinery	6,00,000	6,80,000
Term Loan	1,00,000	60,000	Non-current Investments	50,000	40,000
Reserves & Surplus	80,000	50,000	Sundry Debtors	30,000	14,000
Public Deposits	1,00,000	75,000	Stock	65,000	60,000
Provision for tax	20,000	22,000	Prepaid Expenses	5,000	0
Proposed Dividend	20,000	25,000	Cash at Bank	30,000	13,000
Sundry Creditors	60,000	75,000
Total	7,80,000	8,07,000	Total	7,80,000	8,07,000

You are required to:

a) Prepare a Statement of Changes in Working Capital. (5 Marks)

b) Calculate the Current Ratio and Liquid Ratio of the Company as at 31.03.2014 and 31.03.2015. (4 Marks)

c) Calculate the new Current Ratio of the company after it pays off the proposed dividend of Rs. 20,000 on 01.04.2015. (2 Marks)

d) Mention at least 4 transactions which will not affect the flow of funds. (4 Marks)

&&&&&&&&&&&&&&&&&&&&&&&&&

St. Joseph’s College of Commerce 2015 Management Accounting Question Paper PDF Download

April 4, 2018 by prasant kumar

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION – SEPT/OCT. 2015

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

MANAGEMENT ACCOUNTING

Duration: 1 ½ Hours Max. Marks: 50

SECTION – A

Answer ALL the questions. Each carries 2 marks. (10×2=20)

Give the meaning of Management Accounting.

State the various methods of financial analysis.

How does Ratio analysis help to analyse data? Give examples of two ratios.

Explain any two objectives of Management Accounting.

Calculate Current Assets when current ratio is 2.6:1 and current liability is Rs. 40,000.

Gross Profit is 20% on sales, cost of goods sold is Rs. 3,00,000. Find out sales.

Mention any four duties of a Management Accountant.

What are the main types of Ratio’s?

Average stock of a firm is Rs. 50,000. Its opening stock is Rs. 10,000 less than its closing stock. Find opening and closing stock.

10.

Differentiate between Financial and Management Accounting.

SECTION – B

II)

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

11.

Following is the Balance Sheet of J.K. Ltd. as on 31.3.2014 and 31.3.2015. You are required to prepare the Comparative Balance Sheet and Comment on the Financial Position of the Firm.

Liabilities	31.3.2014	31.3.2015	Assets	31.3.2014	31.3.2015
Share Capital	1,00,000	1,25,000	Building	75,000	1,50,000
Reserves & Surplus	20,000	25,000	Furniture	2,00,000	2,40,000
8% Debentures	45,000	30,000	Stock	1,00,000	35,000
Long Term Borrowings	2,00,000	2,50,000	Debtors	40,000	1,00,000
Creditors	1,25,000	1,50,000	Cash	1,32,500	1,20,000
Bills Payable	45,000	50,000
Bank Overdraft	12,500	15,000
	5,47,500	6,45,000		5,47,500	6,45,000

12.

Using the following data complete the Balance Sheet:

Gross Profit (20% of sales) Rs. 60,000

Share Capital Rs. 50,000

Credit Sales to Total sales 80%

Total assets turnover (on sales) 3 times

Closing stock turnover (to cost of sales) 8 times

Average Collection Period (for 360 days) 18 days

Current ratio 1.6

Long Term Debt to Equity 40%

Balance Sheet

Liabilities	Amount	Assets	Amount
Share Capital	?	Fixed Assets	?
Long Term Debt	?	Stock	?
Creditors	?	Debtors	?
		Cash	?
	?		?

13.

(a) Following is the details of M/S BSL as on 31.3.2014 and 31.3.2015. You are required to prepare the Common-Size Income Statement for the year ending and Comment on the Profitability of the concern. (10 marks)

Particulars	31.3.2014	31.3.2015
Sales	3,50,000	4,50,000
Cost of Goods Sold	2,75,000	4,00,000
Operating Expenses	4,500	15,000
Office Expenses	4,500	15,000
Selling Expenses	2,500	3,000
Distribution Expenses	1,250	1,000
Financial Expenses	10,000	12,500
*Tax Rate is 35%	—	—

(b) Briefly show the Traditional Classification of Ratios through a chart.

(5 marks)

***********************************

St. Joseph’s College of Commerce B.B.A. 2016 VI Sem Management Accounting Question Paper PDF Download

April 3, 2018 by prasant kumar

REG NO:

ST. JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATIONS – MARCH/APRIL 2016

B.B.M. – VI SEMESTER

M1 11 602 :MANAGEMENT ACCOUNTING

Duration: 3 Hours Max. Marks: 100

SECTION – A

Answer ALL the questions. Each carries 2 marks. (10×2=20)

Define the term ‘Management Accounting’?

Mention any two differences between Cash Flow Statement and Fund Flow Statement.

What are Financial Activities? Give any two examples of Financial Activities.

Explain the scope of Management Accounting. (any 2 points).

Mention any two objectives of Reports.

Explain Internal Reports with an example.

Average stock of a firm is Rs.50,000. Its opening stock is
Rs.10,000 less Than its closing stock. Find out the opening and closing stock.

Gross profit ratio 20% on sales. Total gross profit Rs. 1,00,000. Cash sales Rs.1,20,000. Average debtors Rs. 95,000. Calculate Debtors turn over ratio.

For calculating ‘Cash flow from Operating Activities’ from the given figure of ‘Net Profit’ earned during a year, how would you deal with:

a. Decrease in Debtors	b. Increase in Bank Balance
c. Increase in Bills Payable	d. Decrease in Debentures

10.

Calculate Inventory Turnover Ratio from the data given below:

Inventory at the beginning of the year	Rs. 20,000
Inventory at the end of the year	Rs. 10,000
Purchases	Rs. 2,50,000
Return Outwards	Rs. 5,000
Sales	Rs. 3,50,000

SECTION – B

II)

Answer any FOUR questions. Each carries 5 marks. (4×5=20)

11.

Mention any five differences between Financial Accounting and Management Accounting.

12.

Calculate the following ratios with the help of the information given:

a) Gross Ratio	b) Net Profit Ratio
c) Quick Ratio	d) Turnover to Working Capital Ratio
e) Shareholders’ Funds to Total Assets Ratio.

Information:

Particulars	Rs.	Particulars	Rs.
Equity Share Capital	2,00,000	Opening Inventory	24,000
8% Preference Share Capital	1,60,000	Purchases	2,40,000
9% Debentures	1,20,000	Wages	16,000
General Reserve	20,000	Closing Inventory	36,000
Sales	4,00,000	Selling and Distribution Expenses	4,000
Liquid Assets	1,00,000	Non-current Assets	4,24,000
Current Liabilities	60,000

13.

From the following figures calculate cash flow from operating activities:

Particulars	2015 (Rs.)	2014 (Rs.)
Balance of Profit & Loss	5,00,000	2,50,000
Provision for Depreciation	1,60,000	80,000
Outstanding wages	18,000	15,000
Prepaid Insurance	16,000	29,000
Goodwill	32,000	35,000
Provision for Doubtful Debts	20,000	14,000
Balance of Trade Receivables	1,10,000	1,98,000
Provision for Income Tax	45,000	35,000
Cash and bank balance	23,000	25,000

14.

Calculate Funds from Operation from the following:

a	Net Profit for the year ended 31.03.2015 is Rs. 3,85,000.
b	Loss on sale of building Rs. 35,500.
c	Goodwill appears in the books at Rs. 80,000 out of which 20% has been written off.
d	Old Machinery worth Rs. 18,000 has been sold for Rs. 20,000 during the year.
e	Rs. 25,000 has been transferred to General Reserve.
f	Depreciation has been provided on Machinery and Furniture at 10% of total cost. Total Cost of Machinery and Furniture amount to Rs. 8,00,000.

15.

From the following Balance Sheets of the Vivek Industries Ltd. compute the trend percentages using 2012-13 as the base year. (Interpretations not required)

Particulars	2012-13	2013-14	2014-15
Share Capital	2,60,000	3,25,000	3,90,000
Reserves	1,30,000	1,95,000	1,95,000
Loans	2,60,000	1,30,000	65,000
Sundry Creditors	3,90,000	5,20,000	2,60,000
Buildings	2,60,000	3,25,000	3,90,000
Plant	2,60,000	3,25,000	1,30,000
Stock	3,25,000	3,25,000	1,95,000
Debtors	1,30,000	1,30,000	1,30,000
Cash at Bank	65,000	65,000	65,000

16.

Explain the General Principles of a Good Reporting System.

SECTION – C

III)

Answer any THREE questions. Each carries 15 marks. (3×15=45)

17.

John Ltd provides you the following information for the year ending 31^st March 2015.

1	Sales for the year amounted to Rs. 2,00,000 out of which 60% is for cash.
2	Cost of goods sold was 50% of total sales.
3	All inventories were purchased on credit.
4	Collections from debtors amounted to Rs. 60,000.
5	Payments to creditors for inventory totaled Rs. 45,000.
6	Depreciation charged during the year on machinery amounted to Rs. 15,000.
7	Goodwill written off during the year Rs.30,000
8	Total salary for the period amounted to Rs. 6,000 out of which Rs.1,000 was outstanding.
9	Office expenses paid in cash amounted to Rs.8,000 and outstanding office expenses were Rs.2,000.
10	Land was purchased for Rs. 2,50,000 and the consideration was discharged by the allotment to the vendors of zero percent convertible debentures.
11	Fully paid equity shares of the face value of Rs. 2,00,000 were issued at a premium of 20%.
12	A machine was sold for Rs. 15,000. The book value of the machine was Rs. 17,000.
13	Another machine having a book value of Rs. 4,000 was scrapped and was treated as ordinary business loss.
14	A vehicle was purchased for cash at a cost of Rs. 1,50,000.
15	Dividends paid during the period amounted to Rs. 40,000.
16	Income tax paid Rs.10,000.
17	Cash in hand and at bank as at 31^st March 2014 totaled Rs. 75,000.

You are required to prepare a Cash Flow statement using direct method.

18.

The Balance Sheets of S & Co. and K & Co. are given as follows:

Balance Sheets as at 31.03.2015

Particulars	S & Co. (Rs.)	K & Co. (Rs.)
Equity and Liabilities:
Shareholders’ Funds:
Preference Share Capital	1,80,000	2,40,000
Equity Share Capital	2,25,000	6,00,000
Reserves and Surplus	21,000	27,000
Non-current Liabilities
Long-term Loans	1,72,500	1,95,000
Current Liabilities:
Bills Payables	3,000	0
Sundry Creditors	18,000	6,000
Outstanding Expenses	22,500	9,000
Proposed Dividend	15,000	1,35,000
Total	6,57,000	12,12,000
Assets:
Non-current Assets
Land and Building	1,20,000	1,84,500
Plant and Machinery	5,01,000	9,00,000
Current Assets
Temporary Investments	1,500	60,000
Inventories	15,000	37,500
Trade Receivables	6,000	12,000
Prepaid Expenses	1,500	3,000
Cash and Cash Equivalents	12,000	15,000
Total	6,57,000	12,12,000

Prepare the Common Size Balance Sheet of the two Companies and answer the following questions:

(a) What is the position of working capital in both the companies?

(b) Which company has depended more on outsiders’ funds?

Has fixed assets been financed by Working Capital in any of the companies?

19.

From the following prepare the schedule of changes in Working Capital and Fund Flow Statement.

Name of the Co.: ABC Ltd.

Balance Sheet as at 31^st December, 2015

Particulars	Note No.	31.12.2015	31.12.2014
I. EQUITY AND LIABILITIES:
(1) Shareholders’ Funds:
(a) Share Capital		3,60,000	2,40,000
(b) Reserves and Surplus	1	1,25,400	1,00,500

(2) Share Application Money pending allotment

(3) Non-current Liabilities:
(a) Long-term borrowings		78,000	–

(4) Current Liabilities:
(a) Short-term borrowings
(b) Trade Payables (Creditors)		1,09,200	1,00,500
( c) Other current liabilities
( d) Short-term provisions (Tax)		32,700	29,400

TOTAL		7,05,300	4,70,400

II. ASSETS:
(1) Non-current assets:
(a) Fixed Assets:
(i) Tangible Assets	2	4,98,000	2,80,200
(ii) Intangible Assets
(b) Non-current Investments

(2) Current Assets:
(a) Current Investments
(b) Inventories		78,000	66,300
( c) Trade Receivables (Debtors)		1,17,300	1,09,500
( d) Cash and Cash Equivalents (Bank)		12,000	14,400
(e) Short-term Loans and Advances
(f) Other Current Assets

TOTAL		7,05,300	4,70,400

Note: 1:
Reserves and Surplus:	31.12.2015	31.12.2014
General Reserve	27,000	18,000
Share Premium	36,000	24,000
Profit and Loss A/c	62,400	58,500
	1,25,400	1,00,500
Note: 2:
Tangible Assets
Land and Building	3,39,600	1,66,200
Plant and Machinery	1,53,900	1,06,800
Furniture	4,500	7,200
	4,98,000	2,80,200

Additional Information:

Depreciation written off during the year on Machinery is Rs. 38,400 and on Furniture is Rs. 1,200.

20.

XY Company Ltd. is unable to pay dividends to the shareholders of the company due to shortage of cash and cash equivalents, in spite of making reasonable profits for the past few years.

You are asked to submit a report to the management bringing out the reasons for the shortage of cash and cash equivalents and your suggestions to the management to overcome the situation.

21.

Using the following details, prepare Balance Sheet of Ajay Ltd.:

a) Current Ratio = 2.75

b) Quick Ratio = 2.25

c) Working Capital = Rs.7,00,000.

d) Reserves and Surplus = Rs. 1,00,000.

e) Total current assets included stock, debtors and cash only, which are in the ratio of 2 : 6 : 3

f) Total current liabilities included creditors and bills payable in the ratio of 3 : 2

g) Fixed Assets are 50% of Share Capital.

h) The Share Capital is Rs. 12,00,000. There are no other items of assets or liabilities.

SECTION – D

IV)

Case Study – Compulsory question. (1×15=15)

22.

The Balance Sheets of Deeps Ltd., is as follows:

Liabilities	2014	2015	Assets	2014	2015
Equity Share Capital	4,00,000	5,00,000	Plant and Machinery	6,00,000	6,80,000
Bank Loan	1,00,000	60,000	Goodwill	50,000	40,000
Reserves & Surplus	80,000	50,000	Sundry Debtors	30,000	14,000
Debentures	1,00,000	75,000	Stock	65,000	60,000
Provision for tax	20,000	22,000	Prepaid Expenses	5,000	0
Proposed Dividend	20,000	25,000	Cash at Bank	20,000	6,000
Sundry Creditors	60,000	75,000	Preliminary Expenses	10,000	7,000
Total	7,80,000	8,07,000	Total	7,80,000	8,07,000

You are required to calculate the following:

a) Prepare the Schedule of Changes in Working Capital for the year ending 2015 (6 Marks)

b) Calculate cashflow from Operation for the year ending 2015. (5 Marks)

c) Current Ratio and Quick Ratio for the year 2015. (4 Marks)

&&&&&&&&&&&&&&&&&&&&&&&&&&&

St. Joseph’s College of Commerce B.B.A. 2016 II Sem Management Accounting Question Paper PDF Download

April 3, 2018 by prasant kumar

JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)

END SEMESTER EXAMINATION MARCH /APRIL 2016

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

MANAGEMENT aCCOUNTING

Duration: 3 Hours Max. Marks: 100

SECTION – A

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

State any two objectives of Budgetary Control.

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

(a) Purchase of building

(b) Sale of machinery

(d) Payment of wages

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

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

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

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

Mention any two essentials of an effective Budgetary control system.

SECTION – B

II)

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

From the following data, you are required to calculate:

(a) P/V ratio

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

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

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

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

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

Estimated sales at various levels of capacity are :

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

The following details are available from a company.

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

In addition , you are given:

a. Dividend paid total Rs. 3,500.

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

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

d. Debentures paid off Rs. 6,000.

Calculate cash from operating activities.

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

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

You are required to calculate:

(i) P/V ratio

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

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

SECTION – C

III)

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

10.

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

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

Additional information:

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

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

Wages: 25% paid in arrears following month.

Miscellaneous expenses : Paid a month in arrears.

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

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

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

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

11.

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

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

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

12.

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

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

*******************************

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