M.COM. (Semester III) Examination, 2017
MANAGEMENT ACCOUNTING (Comp. Paper III)
Day Date: Saturday, 22-04-2017 Max. Marks: 50
Time: 10.30 AM to 12.30 PM
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Use of calculator is allowed.
Q.1 Choose the alternatives given below. 10
Working capital is also called as
Net Current Assets Net Assets
Fixed Assets Total Current Assets
example of Balance Sheet Ratio.
Stock Turnover Ratio Current Ratio
Net Profit Ratio Gross Profit Ratio
Quick Ratio is also called as
Current Ratio Working Capital Ratio
Acid Test Ratio Turnover Ratio
are designed to change with the level of activity attained.
Capital Cash
Fixed Flexible
The main objectives of to obtain more economical use of capital.
Budget Financial statement
Balance Sheet None of the above
The officer who is entrusted with Management Accounting functions in
an organization is known as _____Accountant.
Financial Management
Cost Corporate G
is concerned with accounting information that is
useful to Management.
Cost Financial
Management Computerized
Short term public deposits, unclaimed dividends, bill payable, provision
for Taxation etc are the examples of
Non-Current Liability Current Assets
Non-Current Assets Current Liabilities
Page 1 of 3
SLR-Q 40
Current Assets minus current liabilities is called
Working capital Authorized capital
Issued capital Provisions
10) inflow and outflow of cash during accounting period.
Fund Flow Cash Flow
Working capital Funds from operation
Q.2 Write short notes. 10
Functions of Management Accounting.
Limitations of financial statement
Q.3 From the following information calculate Current Ratio and Liquid
Ratio Stock Rs.90,000, Debtors Rs.21, 000, Cash at Bank Rs.5000,
Furniture Rs.10,000, Bill payable Rs.12,000, Creditors Rs.28,000 and
Debentures Rs.1,00,000.
05
From the following information calculate changes in working capital. 05
31.12.1999 31.12.2000
Furniture and Fixtures 10,000 15,000
Stock 85,000 1,05,000
Creditors 1,00,000 70,000
Share Capital 3,00,000 4,00,000
Debtors 1,60,000 1,50,000
Cash 1,10,000 1,70,000
Q.4 Prepare Funds Flow Statement. 10
Balance Sheet
Liabilities 1999 2000 Assets 1999 2000
Share capital 3,00,000 4,00,000 Cash 30,000 90,000
Reserve 1,00,000 50,000 Accounts
Receivable
1,05,000 1,50,000
Retained
earnings
30,000 60,000 Inventories 1,50,000 1,95,000
Accounts
payable
45,000 1,35,000 Fixed Assets 1,90,000 2,10,000
4,75,000 6,45,000 4,75,000 6,45,000
Additional Information:
The company issued bonus shares for Rs.50,000 and for cash
Rs.50,000.
Depreciation written off during the year Rs.15,000.
OR
Page 2 of 3
SLR-Q 40
From the following information calculate Working capital, Current Ratio,
Net capital employed and Acid Test Ratio.
Balance Sheet 31.12.2015
Share capital 25,000 Fixed Assets 30,000
Preference Share Capital 5,000 Stock 6,000
Reserve and Surplus 4,000 Debtors 1,000
Debentures 8,000 Cash 500
Bank Loan 4,000 Bank 2,500
Creditors 1,000 Preliminary Exp. 8,000
Proposed dividend 1,000 Brokerage on shares 2,000
Provision for Taxation 2,000
50,000 50,000
Q.5 A Factory manufacturing plastic buckets is working at 40% capacity and
produces 10,000 buckets per month. The present cost break up for one
bucket is an under:
10
Materials Rs.10
Labour Rs.03
Overheads Rs.05 fixed)
Selling price Rs.10 per bucket
If it is desired to work the factory at 50% capacity the selling price falls by
3%. At 90% capacity the selling price falls by accompanied by a similar
fall in the price of materials.
Prepare statement showing the profit at 50% and 90% capacity.
OR
Prepare cash Budget for April to June 2016.
Months Sales Purchases Wages
February 1,80,000 1,24,800 12,000
March 1,92,000 1,44,000 14,000
April 1,08,000 2,43,000 11,000
May 1,74,000 2,46,000 10,000
June 1,26,000 2,68,000 15,000
50% of credit sales are realized in the month following sales and
remaining 50% in the second month following. Creditors are paid in the
month following the month of purchases. Wages are paid in the next
month. Cash and Bank balance on 1.04.2016 Rs.25,000.