M.Com (Semester III) (CBCS) Examination Mar/Apr-2018
ADVANCED COSTING (Paper III)
Time: 2½ Hours
Max. Marks: 70
Instructions: All questions are compulsory. Figures to the right indicate full marks. Use of calculator is allowed.
Q.1
Choose the alternatives given below.
14
If Sales are Rs. G.P. 22% then Cost of goods sold Rs.




Bills payable paid will the present current ratio which is 2:1.
not affect
improve
decline
none of these
Net worth is also termed as
Proprietors' fund
Capital employed
Net current assets
All of these
Liquid ration shows position of business.
Short term solvency
Profitability
Liquidity
Long term solvency
If, EOQ 3,00,000 kg, then no. of orders to be placed in a year are 5. Then annual usage is kg.
60,000
15,00,000
6,00,000
1,20,000
If rate of consumption is 500-1000 kg per week. Reorder period is 2-3 weeks, Reorder Quantity is 3000 kg, then Reorder level is kg.
1000
2000
3000
1500
Acid test ratio is also called as ratio.
Liquid
Quick
Liquidity
All of these
If proprietors fund Rs. Reserves and surplus to share capital is there were no fictitious assets and losses, then share capital is Rs.




If Net profit ratio is Net profit is Rs. then sales are Rs.




10) If total asset turnover is 4 times, sales are Rs. then total assets are Rs.
400,00,000/-



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SLR-CX-27
11) Total of current assets minus current liabilities
Fixed capital
Working capital
Issued capital
Paid up capital
12) Carrying cost is also called as cost.
Buying
Procurement
Stock holding
Purchases
13) Liquid liabilities current liabilities minus
Bills Payable
Stock
Bank overdraft
Prepaid expenses
14) Share Capital plus Reserves and Surplus minus Proprietors Fund
Long term loans
Fictitious assets
Current assets
Shareholders fund
Q.2
Write short notes.
14
Advantages and limitations of Ratio Analysis
Classification of Ratio
Q.3
Cost of goods sold Rs. 6,00,000, closing inventory is Rs. 10000 less than opening inventory, stock velocity is 4 times. Calculate.
Average inventory
Opening inventory
Closing inventory
Purchases
07
Following information relating to a type of raw material is available.
07
Annual demand
2400 units
Unit price
Rs. 2.40
Ordering cost per order
Rs. 4
Storage cost
p.a.
Interest rate
10% p.a.
Lead time
Half month
Calculate EOQ and total annual inventory cost in respect of raw material.
Q.4
Cash Balance on 01.04.2017 Rs. 25,000
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Month
Sales Rs.
Purchases Rs.
Wages Rs.
Expenses Rs.
Feb 2017
3,00,000
1,80,000
31,000
7,500
March 2017
4,00,000
2,50,000
34,000
10,000
April 2017
3,50,000
2,75,000
35,000
11,000
May 2017
4,20,000
2,80,000
30,000
15,000
June 2017
3,80,000
3,20,000
37,000
13,500
It is estimated that:
Cash sales are 20% of total sales.
Realization of credit sales subject to discount if realized in the same month and 2.5% discount if realized in next month, it is estimated that 50% of the credit sales are realized in the month of sales and 50% in the immediate subsequent month.
Creditors are either paid on prompt or on 30 days basis, it is estimated that 10% of the creditors are in prompt category.
Lag in payment of wages is ¼ month.
Expenses are paid in the month in which they are incurred.
You are require to prepare cash budget for 3 months ended 30.06.2017
OR
Explain techniques of inventory control.
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SLR-CX-27
Q.5
From the following information, prepare statement of Proprietors Fund with as many details as possible.
Current Ratio 2.5 Liquid Ratio 1.75 Fixed assets to Net worth 0.80 Bank Overdraft Rs.20,000 Reserves and surplus to Share Capital 0.25 Working Capital Rs.9,00,000 There were no long term loans and fictitious assets.
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OR
Gross Profit Rs. 3,00,000
Gross Profit Ratio 20% Stock Velocity 6 months Debtor's Velocity 2 months Creditors Velocity 1 month Fixed Assets Turnover Ratio 5 times Capital Turnover Ratio 3 times Bills receivable and bills payable amounts to Rs. 10,000 and Rs. 5,000 respectively. Closing stock was Rs. 20,000 more than opening stock.
From the above information, you are require to compute the following
Sales
Cost of Goods Sold
Purchases
Opening and closing stock
Sundry debtors and sundry creditors
Fixed assets
Capital employed