M.Com (Semester III) (CBCS) Examination Oct/NoV-2017
MANAGEMENT ACCOUNTING
Day Date: Tuesday, 21-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Use of calculator is allowed.
Q.1 Choose the correct answer among the alternatives given for each question. 14
Planning and Policy Formulation, helps in decision making, controlling,
reporting, motivating etc are the objectives of accounting.
Financial Corporate
Historical Management
In accounting, costs and revenue are mostly reported by
responsibility centers or profit centers.
Farm Financial
Management All of the above
The officer who is entrusted with management accounting in an organization
is known as
Cost accountant Management accountant
Financial accountant Auditor
The is statement which reports the values owned by the enterprise
and the claims of the creditors and owners against these properties.
Balance sheet Fund flow statement
Cash flow statement Profit and loss account
Patents and trademarks, Copyright, License, Goodwill etc are
assets.
Current Non current
Other Intangible
The liabilities payable over a longer period of time, say after one year are
known as
Current liabilities Noncurrent liabilities
Contingent liabilities Owners equity
Total Assets minus total liabilities is equal to
Equity capital Preference capital
Owner's equity Current liability
is an important and age old technique of financial analysis.
Break even Cash flow
Ratio Cost
comprise all current assets minus stock and prepaid expenses.
Liquid Current
Fixed Non current
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10) Prepaid expenses, debtors, bills receivable, income earned but not received
etc are the components of assets.
Total Current
Non current Fixed
11) The indicates the inflows and outflows of funds during a particular
accounting period.
Balance sheet Cost sheet
Funds flow Ratio analysis
12) If the working capital at the end of the current year is more than the working
capital at the previous year the excess is called
Increase in working capital Reduction in working capital
Decrease in working capital No change in working capital
13) Loss from operation, repayment of loans, redemption of debentures etc are
of funds.
Sources Application
Flow Cash flow
14) statement is useful for short term financing.
Fund flow Financial
Cash flow Balance sheet
Q.2 Answer the following. 14
Types of ratios.
Functions of management accounting.
Q.3 From the following Balance sheet calculate current ratio, quick ratio, debts to
equity ratio.
07
Balance sheet as on 31-3-2016
Liabilities Amt. Assets Amt.
Share capital 2,00,000 Land and building 1,40,000
Profit and loss A/c 30,000 Plant and machinery 3,50,000
General Reserve 40,000 Stock 2,00,000
12% Debentures 4,20,000 Debtors 1,00,000
Creditors 1,00,000 Bills receivable 10,000
Bills payable 50,000 Cash at bank 40,000
8,40,000 8,40,000
From the following balance sheet prepare statement showing changes in
working capital
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Particulars 31-12-2014 31-12-2015
Assets:
Cash 3,000 4,700
Accounts receivable 12,000 11,500
Land 5,000 6,600
Stock 8,000 9,000
28,000 31,800
Accounts payable 7,000 4,500
Capital 20,000 25,000
Retained earnings 1,000 2,300
28,000 31,800
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Q.4 Balance sheet of Ram and Shyam as on 1st January 2014 and 31st December
2014 were as follows.
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Particulars 1-1-2014 31-12-2014
Assets: Cash 10,000 7,000
Debtors 30,000 50,000
Stock 35,000 65,000
Machinery 80,000 55,000
Land 40,000 10,000
Building 35,000 60,000
2,30,000 2,47,000
Liabilities: Creditors 40,000 44,000
Mrs. Ram's loan 25,000
Loan from party 40,000 50,000
Capital 1,25,000 1,53,000
2,30,000 2,47,000
During the year a machine costing Rs. 10,000 (accumulated depreciation Rs.
3,000) was sold Rs. 5,000.The balance of provision for depreciation against
machinery as on 1.1.2014 was Rs. 25,000 and on 31.3.2014 Rs. 40,000. Net
profit for the year 2014 amounted to Rs. 45,000. Prepare cash flow statement.
OR
From the following balance sheet of X Ltd. make out statement of changes in
working capital and fund flow statement.
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Balance Sheet
Liabilities 31-3-2014 31-3-2015 Assets 31-3-2014 31-3-2015
Equity share
capital
3,00,000 4,00,000 Goodwill 1,15,000 90,000
Redeemable
Preference
share capital
1,50,000 1,00,000 Land
Building
2,00,000 1,70,000
Capital
reserve
40,000 70,000 Plant 80,000 2,00,000
Profit Loss
A/c
30,000 48,000 Debtors 1,60,000 2,00,000
Proposed
dividend
42,000 50,000 Stock 77,000 1,09,000
Creditors 55,000 83,000 Bills
receivable
20,000 30,000
Bills payable 20,000 16,000 Cash in
hand
15,000 10,000
Provision for
taxation
40,000 50,000 Cash at
bank
10,000 8,000
6,77,000 8,17,000 6,77,000 8,17,000
Additional Information:
Depreciation of Rs. 10,000 and Rs. 20,000 have been charged on plant,
Land Building respectively in the ending 31.3.2015
A dividend of Rs. 20,000 has been paid during the year.
Income tax of Rs. 35,000 has been paid during the year.
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Q.5 From the following particulars prepare balance sheet of the company.
Current ratio 2.5
Quick ratio 1.5
Net working capital Rs. 30,000
Stock turnover ratio (Cost of sales/closing stock) 6 times
Gross profit ratio 20%
Fixed assets Turnover ratio (Cost of sales) 2 times
Debtors turnover ratio 2 times
Fixed Assets to shareholders Net worth 0.8
Reserve and Surplus to capital 0.5
Long term Loans Rs. 15000
OR
From the following Balance sheet of Sunshine Ltd. as on 31st March, 2016.
Calculate:
Current Ratio,
Liquid Ratio,
Proprietary Ratio,
Debt Equity ratio,
Capital Gearing Ratio,
Net Profit Ratio and
Stock turnover ratio
Balance sheet as on 31.3.2016
Liabilities Amt. Assets Amt.
preference Share
capital
1,50,000 Goodwill 20,000
Equity share capital 2,50,000 Land and building 2,50,000
General reserve 20,000 Machinery 1,75,000
Profit and loss A/c 15,000 Furniture 10,000
Debentures 1,00,000 Stock 90,000
Creditors 28,000 Debtors 21,000
Bills payable 12,000 Cash at bank 5,000
Preliminary expenses 4,000
5,75,000 5,75,000
Total sales Rs. 4,00,000 20% of which is made on credit. Gross profit and
net profit (after tax) for the year ended amounted to Rs. 80,000 and Rs.
20,000 respectively.