M.Com. (Semester II) (CBCS) Examination Mar/Apr-2018
ADVANCED ACCOUNTANCY II
WateriI
Time: 2½ Hours
Max. Marks: 70
Instructions: All question are compulsory Figures to right indicate full marks
Q.1
Choose the correct alternative given in the bracket.
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„The work which demands high degree of skill.‟ A system is more suitable.
Time rate
Piece rate
Minimum rate
Part time work
Pay roll provide as required by provisions of the Payment of Wages Act.
Oral information
Evidence
People source
Payment of dividend
Direct Expense which are also known as expenses.
Chargeable
Daily
Fixed
Secondary
"Travelling expenses of salesman" is a expenses.
Fixed
Current
Indirect
Prime
Wages of persons doing colouring of the factory building are wages.
Direct
Indirect
Primary
Fixed
Distribution of overheads is also known as the of overheads.
Classification
Codification
Apportionment
Generalization
Lubricants used in factory workshop are the example of material.
Direct
Indirect
Prime
Essential
A document which provides for the assembly of the estimated details cost in respect of cost center or cost unit is known as
Cost ledger
Cost statement
Cost sheet
Balance sheet
A request for purchase of material is terms as
Purchase requisition
Purchase order
Purchase receipt
Bill
10) A is a contractual document which authorizes the supplier to supply the material.
Purchase requisition
Purchase receipt
Purchase order
Store ledger
11) Under level of stock materials are issued to important jobs only.
Minimum
Maximum
Ordering
Danger
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12) The store keeper should initiate a purchase requisition when stock reaches level.
Re order
Danger
Maximum
Minimum
13) The material requisition note is generally prepared in
Duplicate
A single copy
Triplicate
Four copies
14) The objective of matching current costs with current revenues is not achieved under the method of pricing material issue.
LIFO
FIFO
Weighted average price
Notional price
Q.2
Write short Notes
14
Distinction between financial accounting and cost accounting.
Advantages of Material Control.
Q.3
Answer the following.
14
Monthly demand of product X 1500 units.
Requirement of component to produce 1 unit of product X 5 units.
Ordering, receiving and handling cost Rs. 10 per order
Trucking costs Rs. 5 per order
Deterioration and obsolescence cost Rs. 10 per unit p. a.
Interest Rate: 15% p.a.
Storage cost Rs. 4,50,000 for 90,000 units
Purchase price of a components Rs. 100
You are required to calculate Economic Order Quantity.
Standard output per hour actual output in a 40 hours week is 220 units. Wages rate per hour is Rs. 10 per hour. Calculate total earning under:
Straight Time Rate
Straight Piece Rate
Halsey Premium System
Rowan System
Q.4
Answer any one:
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Tata Ltd. has two production departments P1 and P2 and two service departments S1 and S2. The expenses of these departments are as follows.
P1 Rs. 51,837
P2 Rs. 12,163
S1 Rs. 40,000
S2 Rs. 16,000
The expenses of service department are to be apportioned as follows.
P1
P2
S1
S2
S1
50%
40%

10%
S2
30%
50%
20%

You are required to apportion the expenses of service department using Repeated Distribution Method.
Two components and are used in Swastic Industries, Pune as follows.
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Normal usages
150 units per week each
Minimum usages
75 units per week each
Maximum usages
225 units per week each
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Re order Quantity
A 900 units
B 1500 units
Re order Period
A 4 to 6 weeks
B 2 to 4 weeks
Calculate for each component.
Reorder Level
Maximum Level
Minimum Level
Average Stock Level
Q.5
Answer any one:
14
Compute machine hour rate of one machine from the following particular:
Rent and taxes (for 9 months)
Rs. 5400
Supervision charges (for 3 months)
Rs. 6000
Insurance (for 6 months)
Rs. 300
Lighting (for 1 months)
Rs. 100
Repair charges (per annum)
Rs. 2000
Power consumption
5 units per hour
Power charges
Rs. 50 for 250 units
Cost of machine
Rs. 45000
Scrap value
Rs. 5000
Life of the machine
10 years
Machine works for 2,400 hours per annum. This machine occupies half of the total area of the factory. Supervisor spends 1/6th of his time for this machine. Lighting charges must be apportioned on the basis of the space area occupied.
OR

The stores ledger account of material in the book of chemical processors Ltd. shows the followings transaction for the month of Feb 2017. (GRN denotes Goods Received Note; and SR denotes Stores Requisitions)
1
Opening stock 200 kgs at 7.50 kg.
5
Received from supplier S1, 400 kgs at Rs. 7.75 per kg (GRN No.448)
8
Issued to production department, 240 kgs (SR. No. 883)
10
Issued to production department, 160 kgs (SR. No. 897)
12
Received from supplier S2, 500 kgs at Rs. 7.90 per kg (GRN No.455)
15
Issued to production department, 400 kgs (Sr. No. 912)
16
Received from supplier S3, 250 kgs at Rs. 8.00 per kg (GRN No.461)
19
Received from supplier S1, 600 kgs at Rs. 8.25 per kg (GRN No.469)
21
Issued to production department 350 kgs (SR. No. 946)
24
Issued to production department, 260 kgs (SR. No. 959)
27
Issued to production department, 340 kgs (SR. No. 974)
You are required to price the issues and draw out the closing balances in the form of Stores Ledger Account under the pricing method suitable for any of the following two alternatives.
The closing balances should be closely related to the current prices (FIFO Method)
The material charged to production should be closely related to the current prices (LIFO Method)