M.Com. (Semester III) (CBCS) Examination Mar/Apr-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
Accounting to management is known as
Cost Accounting
Financial Accounting
Management Accounting
Revenue Accounting
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
The different between Current Assets and Current Liabilities is called
Working Capital
Debt
Capital Employed
Fixed Assets
Fund in narrow sense means
Bills
Working Capital
Cash and Cash Equivalents
Current Assets
Cash and cash equivalent means in the narrow sense as
Fund
Current Assets
Fixed Assets
Total Assets
Double entry system was first introduced during 1340 by
India
Italy
Japan
Iran
The term Management Accounting is first used in the Anglo American Council on production during
1650
1850
1950
1750
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 different between the Current Assets and Current Liabilities is known as
Working Capital
Cash from operation
Fund from operation
Investment
11) Fund from operation after adjusted with current items of balance sheet is called
Fund Lost in Operation
Working Capital
Capital
Cash from operation
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12) Management Accounting and Cost Accounting are
Contradictory by nature
Supportive in nature
Complementary in nature
Co operative in nature
13) Increase or decrease of each items of balance sheet is compared by 2 periods in
Comparative Balance Sheet
Comparative income Statement
Common size Balance Sheet
Trend Analysis
14) The ration between Current Assets and Current Liabilities is called
Current Ratio
Fixed Ratio
Debt Equity Ratio
Turnover Ratio
Q.2
Write Short Notes:-
14

What is Management Accounting? Explain scope of Management Accounting.

Distinguish between Management Accounting and Financial Accounting.
Q.3
Answer the following question:-
14

The balance sheets of Suresh Ltd. And Ramesh Ltd. As on 31st March 2017 are stated as follows.
Particulars
Suresh Ltd.
Ramesh Ltd.
Assets
Cash
75,000
95,000
Sundry Debtors
70,000
77,000
Outstanding Income
79,000
85,000
Prepaid Expenses
20,000
10,000
Fixed Assets
10,46,000
12,33,000
Total Assets
12,90,000
15,00,000
Liabilities
Sundry Creditors
45,000
32,000
Bills Payable
25,000
13,000
Long term Loan
4,00,000
5,55,000
Capital
8,20,000
9,00,000
Total Liabilities
12,90,000
15,00,000
Prepare a common size Balance Sheet and interpret the result.

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
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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
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

Kamal Ltd. Provided the Profit and Loss Account and Balance Sheet as on 31st March and 2007 as follows.
Profit and Loss Account
Particular
2006 Rs.
2007 Rs.
Particular
2006 Rs.
200 7 Rs.
To Cost of Goods sold
6,90,000
8,10,000
By sales
12,00,000
14,00,000
To Operating expenses Administration Exp Selling Expenses
1,50,000 1,80,000
1,20,000 2,30,000
To Net Profit
1,80,000
2,40,000
12,00,000
14,00,000
12,00,000
14,00,000
Balance Sheet
Particular
2006 Rs.
2007 Rs.
Particular
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
Reserve 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
11,40,000
10,30,000
11,40,000
10,30,000
Prepare a Comparative Profit and Loss Account and Comparative Balance Sheet.
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Q.5
Answer any one of the following.
14

Surya Ltd. Provided the following information for the year ended 31st March 2017.
Gross Profit Ratio 30%
Operating Profit Ratio 20%
Tax 50%
12% Debentures Rs. 2,00,000
10% Loan Rs. 3,00,000
Gross Profit Rs. 3,90,000
Stock Turnover Ratio 8
Closing Stock is Rs. 41,500 more than the Opening Stock
Wages Rs. 1,50,000
Profit on sale of Plant Rs. 40,000
Loss on sale of Furniture Rs. 20,000
Ratio of Administration and Selling expenses is 3:2
Prepare Trading and Profit and Loss Account.
OR

Calculate Cash from Operating Activities from the following.
Profit and Loss Account as on 31st March 2017
Particulars
Rs.
Particulars
Rs.
To salary
40,000
By Gross Profit
2,75,000
To Electricity
10,000
By Profit on sale of Investment
25,000
To Telephone
12,000
To Selling Expense
19,000
To Depreciation on Land Building
21,000
To Depreciation on Plant Machinery
27,000
To Depreciation on Furniture
10,000
To Loss on sales of Machinery
9,000
To Provision for Taxation
60,000
To Net Profit
92,000
3,00,000
3,00,000
Adjustments:
31st March 2016 Rs.
31st March 2017 Rs.
Inventories
30,000
45,000
Debtors
29,000
20,000
Cash
50,000
70,000
Outstanding Salary
10,000
12,000
Sundry Creditors
19,000
11,000
Bank overdraft
12,000
17,000