M.Com. (Semester III) (CBCS) Examination Nov/Dec-2018
MANAGEMENT ACCOUNTING I
Time: 2½ Hours Max. Marks: 70
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the correct alternative:- 14
A study about the relationship of various items of the financial statement is
known as the analysis of
Standard time Cost-volume-Profit
Budgeting Financial Statement
Internal Analysis is an analysis conducted by
Management Creditors
Government Public
The different between Current Assets and Current Liabilities is called
Working Capital Debt
Capital Employed Fixed Assets
Identify the source of funds from the followings:
Purchase of Plant Redemption of Debentures
Funds lost in Operation Sales of Land
The balance of Cash Flow Statement is the increase or decrease of
Working Capital Current Assets
Cash and Bank Balance Total Assets
Identify the Current Liabilities from the following:
Inventory Sundry Creditors
Debentures General Reserve
The process of recording the different elements of cost in an organization is
called
Management Accounting Cost Accounting
Financial Accounting Inflation Accounting
Analysis of financial statement for different period is called
Vertical Analysis Balance Sheet
Horizontal Analysis Income Statement
Share Capital and reserve are called
Debt Current Liabilities
Equity Preference Share Capital
10) The credit balance of the adjusted profit and loss account is known as
Funds from Operation Cash for Operation
Working Capital Funds lost in Operation
11) Management Accounting provides accounting data and statistical information
required for process in management.
Co-ordination Decision-making
Reporting Communication
Page 2 of 3
SLR-CZ-11
12) Management Accounting provides the tools and techniques for of
data.
Recording and classification Identification and tabulation
Recording and summarizing Analysis and interpretation
13) Percentages of each items of expenses on sales is analyzed in
Common Size Balance Sheet Common Size Income Statement
Comparative Balance Sheet Comparative Income Statement
14) The ratio between Net Profit and Sales is called
G.P. ratio Current Ratio
Quick ratio N.P. ratio
Q.2 Write Short Notes:- 14
What is Management Accounting? Explain scope of Management
Accounting.
Distinguish between Management Accounting and Cost Accounting.
Q.3 Answer the following question:- 14
The following are the information related to Sales and Profit of New India Ltd.
Calculate the Trend Percentage by taking 2003 as base. Also interpret the
result.
Year Sales Stock Profit before Tax
2003 4500 340 420
2004 5300 450 370
2005 6000 700 510
2006 6500 550 300
2007 7000 400 750
Calculate:
Gross Profit Ratio
Net Profit Ratio
Operating Profit Ratio
Cost of Goods Sold Ratio from the following.
Sale Rs. 5,00,000
Cost of Goods Sold Rs. 2,80,000
Operating Expenses Rs. 50,000
Interest Rs. 30,000
Tax Rs. 40,000
Q.4 Answer any one of the following: 14
Prepare a Statement of Fund Flow from the following Balance Sheets.
Liabilities
2016
Rs.
2017
Rs.
Particular
2016
Rs.
2017
Rs.
Capital 3,00,000 4,00,000 Land and Building 3,00,000 5,00,000
Profit Loss A/c 1,15,000 1,40,000 Plant and Machinery 2,70,000 2,10,000
General Reserve 40,000 60,000 Stock 60,000 90,000
Debentures 2,00,000 2,50,000 Debtors 25,000 15,000
Loan 50,000 Cash 35,000 50,000
Sundry Creditors 30,000 43,000 Bills Receivable 20,000 15,000
Bills Payable 15,000 17,000 Preliminary Expenses 40,000 30,000
7,50,000 9,10,000 7,50,000 9,10,000
Page 3 of 3
SLR-CZ-11
Adjustment:
Depreciation for Land and Building Rs. 35,000.
Depreciation for Plant and Machinery Rs. 20,000 Profit on sale of a Plant
is Rs. 10,000
Drawings of Capital for the year Rs. 25,000.
OR
Calculate Cash from Operating Activities from the following
Particulars Rs. Particulars Rs.
To Operating Stock 53,000 By Sales 5,50,000
To Purchases 1,80,000 By Closing Stock 70,000
To wages 20,000
To Gross Profit 3,67,000
6,20,000 6,20,000
To Salary 59,000 By Gross Profit 3,67,000
To Telephone 14,000 By Profit on sale of
Plant
13,000
To Electricity 19,000 By Refund of Income
Tax
15,000
To Rent 24,000
To Depreciation 30,000
To Loss on sale of Furniture 7,000
To Goodwill written off 14,000
To Provision for Taxation 90,000
To Net Profit 1,38,000
3,95,000 3,95,000
Q.5 Answer any one of the following. 14
Prepare the Balance Sheet of Konark Ltd. as on 31st March 2017 from the
following.
Gross Profit Ratio 25%
Current Ratio 4,60,000
Liquidity Ratio 1.2
Stock Turnover Ratio 4.5 times
Fixed Assets Turnover Ratio 2 times
Debt Collection Period 1.5 months
Fixed Assets to shareholders Net worth 1.2
Reserve and Surplus to equity 0.3 and
Net Working Capital is Rs. 2,60,000
OR
Geetanjali Ltd. provides the Balance Sheet as on 31st March 2016 and 2017
as follows.
Liabilities
2016
Rs.
2017
Rs.
Particular
2016
Rs.
2017
Rs.
Share Capital 9,00,000 10,50,000 Land 4,00,000 3,40,000
Profit Loss A/c 90,000 1,10,000 Premises 3,60,000 4,50,000
Mortgage Loan 1,70,000 85,000 Plant 3,50,000 4,20,000
Sundry Creditors 12,000 55,000 Stock 25,000 40,000
Bank Overdraft 18,000 10,000 Debtors 20,000 16,000
Cash 35,000 44,000
11,90,000 13,10,000 11,90,000 13,10,000
Prepare a Statement of Changes in Working Capital and Statement of Fund Flow.