URUMU DHANALAKSHMI COLLEGE DEPARTMENT OF BANK MANAGEMENT AND COMPUTER APPLICATIONS MANAGEMENT ACCOUNTING– III B.COM (CA) TIME : 3 HRS MARKS : 75 SECTION –A (10X2=20) 1. State any two difference between management accounting and financial accounting. 2. Write a short notes on Trend Percentages. 3. What do you understand by Cash flow statement? 4. What is working Capital? 5. What do you mean by marginal costing? 6. List the features of B.E.P analysis. 7. Define ARR. 8. Bring out the essential features of a cash budget . 9. Mention any two importance of capital budgeting. 10. What is meant by labour variance? SECTION – B (5X5=25) 11. a) Bring out the functions of Management accounting. (or) b)Calculate the trend percentage from the following figures of Priya enterprises taking 2010 as the base. Year Sales Stock Profit before tax in lacs 2010 1881 709 321 2011 2340 781 435 2012 2655 816 458 2013 3021 944 527 2014 3768 1154 672 12. a) Trader purchases goods both on cash as well as on credit terms. The following particulars are obtained from the books: Rs. Total purchases 581000 Cash purchases 30000 Purchases returns 51000 Creditors at the end 105000
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URUMU DHANALAKSHMI COLLEGE
DEPARTMENT OF BANK MANAGEMENT AND COMPUTER APPLICATIONS
MANAGEMENT ACCOUNTING– III B.COM (CA)
TIME : 3 HRS MARKS : 75
SECTION –A (10X2=20)
1. State any two difference between management accounting and financial accounting.
2. Write a short notes on Trend Percentages.
3. What do you understand by Cash flow statement?
4. What is working Capital?
5. What do you mean by marginal costing?
6. List the features of B.E.P analysis.
7. Define ARR.
8. Bring out the essential features of a cash budget .
9. Mention any two importance of capital budgeting.
10. What is meant by labour variance?
SECTION – B (5X5=25)
11. a) Bring out the functions of Management accounting.
(or)
b)Calculate the trend percentage from the following figures of Priya enterprises taking
2010 as the base.
Year Sales Stock Profit before tax in lacs
2010 1881 709 321
2011 2340 781 435
2012 2655 816 458
2013 3021 944 527
2014 3768 1154 672
12. a) Trader purchases goods both on cash as well as on credit terms. The following
particulars are obtained from the books:
Rs.
Total purchases 581000
Cash purchases 30000
Purchases returns 51000
Creditors at the end 105000
Bills payable at the end 60000
Reserve for discount on creditors 8000
Calculate average payment period.
(or)
b) Calculate cash from operations from the following information.
Rs.
Sales 100000
Purchases 57000
Expenses 12000
Creditors at he the beginning of the year 20000
Creditors at the end of the year 17000
13. a) The following is the trading account of Mr.Kiru. Calculate stock turnover ratio.
Rs. Rs.
To opening stock 15920 By sales 78000
To purchases 39000 By closing stock 14400
To carriage 1000
To gross profit 36480
--------- ----------
92400 92400
---------- -----------
b) Determine the amount of fixed expenses from the following particulars.
Rs.
Sales 250000
Direct material 80000
Direct labour 50000
Variable overheads 20000
Profit 60000
14. a) From the following particulars prepare a production budget of arun sales corporation
for the year ended June 30,2007.
Product Sales (units) (as per sales Estimated stock (June)
budget )
July 1,2006 June 30,2007
A 150000 14000 15000
B 100000 5000 4500
C 70000 8000 8000
(or)
b) The standard material and standard cost per kg. of material required for the production
of one unit of product A is as follows.
Material – 5 kgs Standard Price – Rs. 5 per kg
The actual production and related material data are as follows:
400 units of product A ; Material used – 2200 kgs
Price of material – Rs.4.50 per kg
Calculate
1. Material Cost Variance
2. Material Usage Variance.
3. Material Price variance.
15. a) Calculate the pay back period for a project which requires a cash outley of Rs.200000
and generate cash inflows of Rs.80000 , Rs.40000 , Rs.70000 ,Rs. 30000 and Rs. 10000
in the first, second, third, fourth and the fifth year respectively.
(or)
b) ABC chemical company is considering two alternatives methods of processing a
chemical product for future commercial use. Equipment costs for both methods will be
evenly depreciated over a 20 year period.
Initial Cost Annual cost
Equipment A 1200000 90000
Equipment B 1500000 135000
If they are ranked by the average rate of return method which equipment is preferable.
SECTION – C (3X10=30)
16. The sales director of manufacturing company reports that next year he expects to sell
50000 units of a particular product.
The production manager consults the storekeeper and casts his figures as follows.
Two kinds of raw materials A and B are required for manufacturing product. Each unit of
the products requires 2 units of A and 3 units of B. The estimated opening balance at the
commencement of the next year are :
Finished product 10000 units ; Raw materials A 12000 units ; B 15000 units
The desirable closing balance at the end of the next year are :
Prepare Production Budget and Materials Purchase budget for the next year.
17. From the following prepare statement showing changes in working capital during 1998.
Balance sheet of XYZ as on 31.12.1997 and 1998
Liabilities Rs Rs Assets Rs. Rs.
Capital :
Equity share capital 150000 150000 Fixed assets 160000 225000
Preference share capital - 100000 Investments - 10000
Reserves and surplus : Current assets :
General reserve 40000 50000 Stock 30000 50000
P and L a/c 35000 80000 Debtors 30000 50000
Current liabilities:
Creditors 30000 20000 Bills receivable 70000 4000
Bills payable - 4000 Prepaid Expenses 10000 23000
Bank overdraft 5000 - Cash 30000 20000
Provision for taxation 8000 13000 Advances 21000 61000
Proposed dividend 20000 26000
-------- -------- ----------- --------
288000 443000 288000 443000
----------- --------- ------------ ---------
18. From the following information related to kirubakaran ltd. You are required to find out
1. PV ratio
2. Break Even Point
3. Profit
4. Margin of safety
Rs.
Total fixed costs 4500
Total variable costs 7500
Total sales 15000
19. Depreciation may be taken as 20% on original cost and taxation at 50% of net income.
Calculate
1. Pay back method
2. Rate of return on original investment.
3. Rate of return on average investment.
4. Excess present value index.
20. Rs.
Sales (net) 1600000
Cost of goods sold 720000
Administrative expenses :
Salaries 174000
Rent and rates 24000
Postage and telegram 10000
Stationary 74000
Selling and distribution expenses :
Salesman salaries 36000
Advertising 12000
Sales commission 15000
Discount on sales 4000
Non – operating expenses:
Interest 10000
Loss on sale of building 22000
Non – operating income :
Gain on sale of investments 20000
You are required to study the income statement with the help of common size statement.
URUMU DHANALAKSHMI COLLEGE
DEPARTMENT OF BANK MANAGEMENT AND COMPUTER APPLICATIONS
III B.COM (CA) - MANAGEMENT ACCOUNTING
TIME : 3 HRS MARKS : 75
SECTION –A (10X2=20)
1. Define management accounting.
2. What is common size statement?
3. Give the meaning of fund flow statement?
4. What is cash flow statement?
5. Present the meaning of budgetary control ?
6. Give any two advantages of standard costing?
7. What is variance analysis?
8. What is capital budgeting?
9. Expand CVP.
10. What is payback period method ?
SECTION – B (5X5=25)
11. a)State the objectives of management accounting?
(or)
b) M/s Asoka ltd has submitted the following balance sheet as on 30.06.2000
Rs. Rs.
Equity share capital 150000 Fixed assets 162000
Revenue expenses 30000 Current assets :
Reserves and surplus : Stock 22000
Current liabilities: Debtors 51000
Creditors 49000 Bills receivable 12000
Total 249000 249000
(or)
12. a) From the following prepare a statement showing changes in working capital
during 1999.
Balance sheet as on Ganesh ltd 31.12.
Liabilities Rs. Rs. Assets Rs. Rs.
Share capital 600000 600000 fixed assets 1000000 1120000
Reserves 50000 180000 (-) dep 370000 460000
-------------------------
630000 660000
P&L a/c 40000 65000
Debentures 300000 250000 stock 240000 370000
Creditors for goods 170000 160000 book debts 250000 230000
Provision for income tax 60000 80000 cash in hand 80000 60000
Preliminary expenses20000 15000
------------------- ----------------------
122000 1335000 122000 1335000
-------------------- -----------------------
(or)
b) From the following prepare a cash flow statement.
Liabilities 30.6.1999
Rs
30.06.2000
Rs
Assets 30.06.1999
Rs
30.06.2000
Rs
Share capital 8000 8500 Land 5000 5000
Retained earnings 1450 2450 Plant 2400 3400
Creditors 900 500 Debtors 1650 1950
Mortgage loan - 500 Stock 900 700
Cash 400 900
Total 10350 11950 Total 10350 11950
13. a) Prepare a production budget foe three months ending 31.03.2008 for a factory
producing 4 products on the basis of the following information.
Type of product Estimated stock
1.01.2008 units
Estimated sales
1.01.2008 units
Desired closing
stock 31.03.2008
A 2000 10000 5000
B 3000 15000 4000
C 4000 13000 3000
D 5000 12000 2000
(or)
b) Product X requires 20kgs of material at Rs.4 per kg. The actual consumption of material
for the manufacturing of product X came to 24 kgs of material at Rs. 4.50per kgs . Calculate
1. Material Cost Variance
2. Material Usage Variance.
3. Material Price variance.
14. a) Give the significant of variance analysis.
(or)
b) Prepare marginal cost statement from the following particulars.
Rs.
Variable cost:
Direct material 4500
Direct wages 2500
Factory overhaeds 1500
-------
8500
Fixed cost :
Administrative expenses 1250
------
Total cost 9750
Profit 5250
------
Sales 15000
--------
15. a)Project X initially costs Rs.25000. It generates the following cash inflows.
Year Cash inflows Present value Re.1 @ 10%
1 9000 0.909
2 8000 0.826
3 7000 0.751
4 6000 0.683
5 5000 0.621
(or)
b) Initial outlay Rs.50000
Life of the asset 5 years
Estimated cash flow Rs.12000
Calculated internal rate of return
SECTION – C (3X10=30)
16. From the following particulars pertaining g to Assets and liabilities of a company
calculate 1. Current ratio 2. Liquid ratio 3. Proprietary ratio 4.Debt – equity ratio
5. Capital gearing ratio.
Liabilities Rs Assets Rs
5000 equity shares of Rs.100 each 500000 Land and building 600000
2000 8% preference shares of Rs.100 each 200000 Plant and machinery 500000
4000 9% of debentures of Rs.100 each 400000 Stock 240000
Reserves 300000 Debtors 200000
Creditors 150000 Cash and bank 55000
Bank overdraft 50000 Prepaid expenses 5000
Total 1600000 Total 1600000
17. From the following summarized balance sheets of sriKrishna .prepare a schedule of
changes in working capital and a statement of sources and application of funds.
Liabilities Rs Rs Assets Rs Rs
Share capital 400000 575000 Plant 75000 100000
Creditors 106000 70000 Stock 121000 136000
P& L A/c 14000 31000 Debtors 181000 170000
Cash 143000 270000
Total 520000 676000 Total 520000 676000
BPL ltd wishes to arrange overdraft facilities with its bankers during the period april to
june 2008 when it will be manufacturing mostly for stock. Prepare a cash budget for the above
period from the following indicating the extent of the bank facilities the company will require at
the end of each month.
18.
M ONTH Credit Sales Purchases Wages
Feb 2008 180000 124800 12000
March 192000 144000 14000
April 108000 243000 11000
May 174000 246000 10000
June 126000 268000 15000
(b) 50 per cent of credit sales ae realized in the month following the sales and the
remaining 50 per cent in the second month of the following creditors are paid in the
month following data the month of purchase lag in payment of wages in 1 month.
(c) cash at bank on 1..2008 estimated Rs.25000
19. Assuming that the cost structure and selling prices remain the same in periods I and II
find out.
1. P/Vratio
2. B.E.sales
3. Profit when sales are Rs.100000
4. Sales required to earn a profit of Rs.20000
5. Margin of safety in IInd period
Period Sales Rs Profit Rs
I 120000 9000
II 140000 13000
20. From the following information of product no 777. Calculate
1. Material Cost Variance
2. Material Usage Variance.
3. Material Price variance.
4. Material sub usage variance
5. Material mix variance
Material Standard
quantity kg
SP Rs Actual
quantity Kg
AP
X 20 5 24 4.00
Y 16 4 14 4.50
Z 12 3 10 3.25
Total 48 48
URUMU DHANALAKSHMI COLLEGE
DEPARTMENT OF BANK MANAGEMENT AND COMPUTER APPLICATIONS
III B.COM (CA) - MANAGEMENT ACCOUNTING
PART-A
Answer all questions
1. What is mean by comparative statement?
2. Write any two objective of financial statement analysis?
3. How do you ascertain cash from operation?
4. Calculate the working capital
Current Asset RS.1,50,000
Current liability RS.75,000 share capital 25,000
5. Give the example of fixed expenses?
6. What is contribution?
7. Mention the different method of cash budget?
8. Define standard costing?
9. List out the discounted the cash flow method?
10. What is meaning of net present value?
PART-B
Answer all questions
11. (a) What is the function of management accounting?
(OR)
(b) Discuss in detail the scope of management accounting?
12. (a) Explain the various method of capital budgeting?
(OR)
(b) Prepare the working capital both year for the following information
Particulars 31.12.2015 31.12.2016
Assets 3,000 4,700
Accounting receivable 12,000 11,500
Land 5,000 6,600
Stock 8,000 9,000
Liabilities:
Accounts payable 7,000 4,500
Capital 24,000 25,000
Retail gaining 1,000 2,300
13. (a) From the following information prepare a comparative balance sheet of x ltd
Particulars 31.03.2013 31.03.2017
Equity share capital 50,000 50,000
Fixed asset 60,000 72,000
Reserve & surplus 10,000 12,000
Investment 10,000 10,000
Long term loan 30,000 30,000
Current asset 30,000 26,000
Current liabilities 10,000 11,000
(OR)
(b) Difference between management accounting and financial accounting?
14. (a) From the following information
Product Estimated stock
as on 01.01.2013
(unit)
Estimated sales
unit
Estimated closing
stock
X 5,000 14,000 4,000
Y 6,000 20,000 5,000
Z 7,000 18,000 6,000
(OR)
(b) What are the features of marginal costing?
15. (a) How does a cash flow statement depart from fund flow statement?
(OR)
(b)discuss the advantages and disadvantage of standard costing?
PART-C
Answer any three questions
16. Merits and importance of management accounting?
17. From the balance sheet of y ltd
Liabilities Rs Assets Rs
Equity share capital 1,00,000 cash in hand 2,000
6% preference share capital 1,00,000 cash at bank 10,000
7%debenture 10 years 40,000 Bills receivable 30,000
8%pubilc debt 5 years 20,000 investment short term 20,000
Bank over draft 40,000 Debtors 70,0000
Creditors 60,000 Stock 40,000
Outstanding 7,000 Furniture 30,000
Proposed dividend 10,000 Machinery 1,00, 000
Reserves 1,50,000 Land and building 2,20,000
Provision for taxation 20,000 good will 35,000
Profit and loss a/c 20,000 preliminary expen 10,000
Total 5,67,000 Total 5,67,000
18. Larsen ltd plans to sell 1,10,000 unite of a certain product line in the first fiscal quarter
1,20,000 unites in the second quarter 1,30,000 unit in the third quarter and 1,50,000 units in the
four the quarter and 1,40,000 units in the of following years .at the beginning of the first quarter
of the current year there are 14,000 units of product in stock .at the end of each quarter the
company plans to have an inventory equal one fifth of the sales for the next fiscal quarter
19. The project requires initial investment pf Rs.20,000 for annual cash inflow for 5 years Rs.
8000,7000, 5,000 ,6,000 and 4,000 respectively. the payback period will be year calculate as
follows?
20. The sales director of Manufacture Company report that next year he expects to sell 50,000
units
Of the particular produced .the production manager and store keeper as figures follows.
To kind of the raw material A and B Required for manufacture the products each units of
the
Product requires 2 unit of A and 3 unit of B. the estimated opening balance at the
commitments
Of next year
Finished product 10,000 units
Raw material A 12,000 units
B 15,000 units
The desirable closing balance at the end of n
SET-A
URUMU DHANALAKSHMI COLLEGE
DEPARTMENT OF BANK MANAGEMENT AND COMPUTER APPLICATION
III B.COM(CA)-INCOM TAX LAW AND PRACTICE
Part-A
1. Define previous year?
2. What you mean by casual income?
3. List any two fully exempted allowance!
4. What is the deduction allowance under section 80C?
5. What is annual value?
6. What is the deduction allowance for self-accepted house property?
7. Define Profession?
8. What is short term capital assets?
9. What you mean by bound waring transition?
10. What is the role of deprecation for intangible asset?
Part-B
11. a) Explain any 10 exempted income under the income tax? (OR)
b) Find out amount of the house rent allowance which shall be consider
for the Previous year?
12. a) From the following information pertaining the depreciation allowance
for they assessment year 2013-14 w.d.v written down value 1.04 .2012 12,00,000
machinery per on 15.05.2012 10,000 per on 10.11.2012 3,00,000 car purchase on
June 2012 4,00,000
(OR)
b) MR. RUGU as following investment in the previous year enter
31.03.2013 received RS,1200 on 12-year national rule development sawing
RS,72000 10% tax free debenture of LTC of India received RS. 4500 OR
interest on tax free debenture of JP house board RS.18000 10%ASC issue
computer taxable income from other source of income.
13. a) From the following information compute the capital gain for the
assessment year 2013 debenture purchase may 1977 cost of acquisition
RS,190000 cost of additional construction in 1980 RS,10000 fair market value
on 1.4.1981 Rs.1,75,000 cost of additional constructing in 1974 Rs.51,800 sale
of property in 2.12.13 1,90,000 Act.
(OR)
b) What are the classifications of Residential status?
14. a) Find out gross salary from the following details: