M.B.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
First Semester
ACCOUNTING FOR MANAGEMENT
2 90115 A
Time 3 Hours Max. Marks 70
SECTION — A
Answer all FIVE questions. 2 10 Marks)
1. Real account.
2. Journal.
3. Depreciation.
4. Margin of safety.
5. Material variance.
SECTION — B
Answer ALL questions. 10 50 Marks)
6. Discuss the importance of accounting in management decision making.
Or
Explain accounting concepts and conventions.
7. Explain the term ledger and trial balance. What are the reasons for preparing
a trial balance?
Or
What are the rules of debit and credit for different accounts?
8. Explain about capital and revenue expenditure.
Or

From the following trial balance of Ram Gopal and sons, on 31st March 2016.
Prepare trading and profit and loss a/c for the year ending 31st March 2016
and balance sheet at that date.
Particular Amount Amount
Capital 3,50,000
Drawing 25,000
Plant and machinery 1,50,000
Debtors and creditors 90,000 40,000
Return 10,000 12,000
Discount 5,000 4,000
Commission 8,000
Interest on bank loan 22,000
Furniture 34,000
Provision for doubtful debts 12,000
Wages 48,000
Salaries 60,000
Advertisements 15,000
Taxes and insurance 12,000
Purchases and sales 2,40,000 4,80,000
Stock (on 31.3.2015) 50,000
Carriage 12,000
Land and building 3,00,000
Cash in hand 12,000
Cash at bank 25,000
10% bank loan (on 1.4.2015) 2,20,000
11,18,000 11,18,000
Additional information
Stock was valued at 46,000 as on 31.3.2016.
Wages and salaries were outstanding 5,000 and 4,000 respectively
on 31.3.2016.
Depreciate plant and machinery land and building and furniture at
2 2
1 and 15% respectively.
Provide for doubtful debts at 10% on debts.
3 90115-A
9. Explain various types of costs in detail.
Or
Discuss application of marginal costing in managerial decisions.
10. From the following data calculate material cost variance.
Standard Actual
Qty Unit price Qty Unit price
Material A 50% Rs. 40 88 Rs. 50
Material B 40% Rs. 20 132 Rs. 10
Standard loss 10%
Actual output 180 units.
Or
What are the several types of standards and what are the assumption as to
the factors on which these standards are based?
SECTION C — (10 marks)
11. Case study Compulsory
From the following particulars you are required to calculate contribution
break-even point in units margin of safety and profit.
Total fixed cost Rs. 4,500.
Total variable cost Rs. 7,500.
Total sales Rs. 15,000.
Units sold 5,000 units.
Also calculate the volume of sales to earn profit of Rs. 6,000.
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