M.Com. (Semester III) (CBCS) Examination Oct/Nov-2017
MANAGEMENT ACCOUNTING I
Day Date: Saturday, 18-11-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Choose the correct alternative:- 14
The term used for management accountant by U.S.A. is
Auditor Cost Auditor
Treasurer Controller
External Analysis is an analysis conducted by
Employee Financial institution
Management Proprietor
Long term loan is called
Equity Debt
Equity share capital Current Liability
The balance of Fund Flow Statement is the increase or decrease of

Cash Cash from Operations
Current Assets Working Capital
The statement of changes in cash is known as
Fund Flow Statement Cash Flow Statement
Adjusted Profit and Loss Account Balance Sheet
The presentation of accounting information in such a way so as to assist the
management in the creation of policy and in the day-to-day operation of an
undertaking is termed as
Management Accounting Operational Accounting
Environmental Accounting National Accounting
Management Accounting provides accounting data and statistical information
required for process in management.
Co-ordination Decision-making
Reporting Communication
Base year is a concept for
Comparative Income statement Comparative Balance Sheet
Trend Analysis Common Size Statement
The equity and debt is called
Fixed Assets Reserves and Surplus
Owner's Fund Capital Employed
10) Fund lost in operation is the debit balance of the
Balance Sheet
Profit and Loss Account
Cash Account
Adjusted Profit and Loss Account
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11) Cash from financing activity is related to increase or decrease of
All assets Fixed assets
Non Current liabilities Current l liabilities
12) Percentage of each items of assets and liabilities on total assets and liabilities
and analyzed in
Comparative Balance Sheet
Comparative income Statement
Common size Income statement
Common size Balance Sheet
13) The ratio between Net Profit and Sales is called
G.P. ratio Current ratio
Quick ration N.P. ratio
14) Stock Turnover ratio is the ratio between Sales and
Opening Stock Closing Stock
Average Stock Purchases
Q.2 Write Short Notes:- 14
What is Management Accounting? State the limitations of Management
Accounting.
Give brief account of the tools and techniques of Management Accounting.
Q.3 Answer the following question:- 14
Prepare a Common size balance sheet of Kamal Ltd and Mohan Ltd from
the Balance Sheets as on 31st March 2017.
Balance Sheet as on 31st March 2017
Particular Kamal
Ltd.
Mohan
Ltd.
Particular Kamal
Ltd.
Mohan
Ltd.
Equity Share
Capital
9,00,000 5,00,000 Land building 7,00,000 5,00,000
Preference
Share Capital
2,50,000 2,00,000 Plant and
Machinery
6,00,000 4,00,000
Reserve and
Surplus
1,40,000 70,000 Furniture and
Fittings
3,00,000 1,00,000
Debentures 2,00,000 1,00,000 Stock 61,000 30,000
Loan 2,20,000 2,00,000 Debtors 35,000 25,000
Sundry Creditors 30,000 25,000 Cash 54,000 50,000
Bills Payable 17,000 15,000 Prepaid
Expenses
20,000 15,000
Outstanding
Expenses
13,000 10,000
17,70,000 11,20,000 17,70,000 11,20,000
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Q.3 Moon Ltd. Is providing the following information as on 31st March 2007.
Fixed Assets Rs.12,00,000
Stock Rs. 1,50,000
Debtors Rs. 60,000
Creditors Rs. 80,000
Cash Rs. 1,10,000
Sales Rs. 8,00,000 (Rs. 6,00,000 for Credit)
Purchase Rs. 5,00,000 on Credit
Cost of goods sold Rs. 7,00,000
Calculate
Stock turnover Ratio
Debtors Turnover Ratio
Creditors Turnover Ratio
Fixed Assets Turnover Ratio
Current Assets Turnover Ratio
Working Capital Turnover Ratio
Average Collection Period
Average Payment Period
Total Assets Turnover Ratio.
Q.4 Answer any one of the following:- 14
Prepare a statement of Fund Flow and Statement of Changes in Working
Capital from the Following particulars.
Liabilities 2016 Rs. 2017 Rs. Particular 2016 Rs. 2017 Rs.
Equity Share Capital 7,50,000 7,50,000 Land
building
7,00,000 8,20,000
Profit Loss A/c 80,000 1,50,000
Plant and
Machinery
5,00,000 4,10,000
General Reserve 50,000 90,000 Stock 70,000 1,00,000
Workmen
Compensation Fund
60,000 50,000
Debtors 40,000 80,000
Loan 2,00,000 2,20,000 Cash 60,000 40,000
Debentures 2,00,000 1,40,000
Preliminary
Expenses
50,000 30,000
Sundry Creditors 70,000 76,000
Outstanding
Expenses
10,000 4,000
14,20,000 14,80,000 14,20,000 14,80,000
Depreciation for Fixed Assets is 10%. During the year plant sold for
Rs.60,000. Assume that sale of plant and purchase of land is at the end.
OR
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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
Cotton King Ltd. Is providing the following information related to the year
ending 31st March 2017.
Stock Turnover Ratio 6 times
Debtors Turnover Ratio is 5 times
Creditors Turnover Ratio is 3 times
Gross profit Ratio 25%
Working Capital Turnover Ratio 4 times
Capital Turnover Ratio 0.8
Debt to Equity Ratio 0.4
Equity Share Capital Rs. 4,50,000
Preference Share Capital Rs. 2,00,000
Debentures and Loan are in the Ratio 2:3
Gross Profit Rs.2,40,000
50% of Purchase and 60% of sales are on the credits basis
Direct expenses Rs.1,40,000
Opening Stock Rs.80,000
Opening debtors Rs. 95,400
Opening Creditors Rs. 1,25,000
Ratio of Land and Building, Plant and Machinery and Furniture and Fittings is
4:3:1. Prepare the Balance Sheet as on 31st March 2017.
OR
Prepare a statement of Fund Flow and a Statement of changes in Working
Capital from the following Balance Sheet.
Particular 2016 Rs. 2017 Rs. Particular 2016 Rs. 2017 Rs.
Share Capital 5,00,000 5,50,000 Fixed Assets 4,95,000 5,50,000
Profit Loss A/c 1,00,000 1,20,000 Stock 49,000 77,000
Sundry Creditors 15,000 20,000 Debtors 30,000 10,000
Cash 41,000 53,000
6,15,000 6,90,000 6,15,000 6,90,000