M.Com. (Semester III) (CBCS) Examination, 2017
ADVANCED COSTING(PAPER-III)
Day Date: Tuesday, 18-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. All questions are compulsory.
Use of Calculator is allowed.
Q.1 Choose the correct alternatives form the following. 14
Excess of current assets over current liabilities is called
Quick Assets Quick Liabilities
Gross working capital Working capital
Management provides effective system of financial
control to ensure plan progress toward the set objectives.
Middle Cost Financial Production
Quick assets is Rs. 8,00,000, Fixed Assets and Current Liabilities are
Rs. 6,00,000 and 4,00,000 respectively then the Quick Ratio is
4:3 2:1 4:5 1:2
The common name for 2:1 ration is
Current Ratio Quick Ratio G. P. Ratio Gearing Ratio
is process of critically examining in detail accounting
information given in the financial statement.
Evaluation Management Interpretation Analysis
is explaining the meaning and signification of data so
simplified.
Working capital Ratio analysis
Interpretation Managerial analysis
ABC analysis divided material according to their importance
Use and Rate Value and quantity
Supplier and dealer Production capacity
Sales minus Gross Profit are equal to
Cost of goods sold Operating cost
Total purchases Net profit
Average stock is Rs. 000 and closing stock was Rs. 10,000
more than the opening stock then the amount of closing stock is Rs_
1,10,000 55,000 95,000 1,05,000
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SLR-Q 49
10) Maximum Rate of consumption multiplied by maximum delivery
period is equal to
Maximum level Minimum level
Re-order level Danger level
11) Conventionally a liquid ratio of is considered
satisfactory.
3:2 1:1 1:2 2:1
12) The is an arithmetical relationship between two figures in
Statement of accounts stated either as proportion, rate or
percentage.
Ratio Interpretation Analysis Comparisons
13) EOQ is also called
Danger level Inventory control
Stock level Reorder quantity
14) Current ratio is a example of ratio.
Income statement Combined
Balance sheet Profit and loss account
Q.2 Write short notes on any two. 14
1. Evaluation of Credit Policy
2. Nature Financial Management
3. Comparative Statement Analysis.
Q.3 Form the data given below compute current ratio, Net capital
employed, Debt equity ratio.
07
Ashirvad Company Ltd.
Balance Sheet
As on 31.12.2016
Liabilities Amt. Assets Amt.
Equity share capital 25,000 Fixed Assets 30,000
Preference share capital 5,000 Current Assets:
Reserve and Surplus 4,000 Stores 2,000
Debentures 8,000 Debtors 1,000
Bank loan 4,000 Cash 500
Creditors 1,000 Bank 2,500
Proposed dividend 1,000 Preliminary Expenses 8,000
Provision for taxation 2,000 Brokerage on shares 2,000
Stock 4,000
50,000 50,000
From the following information calculate Economic Order Quantity
of product ZED.
07
Demand of ZED varies from 500 units to 1500 units per month.
Semiannual carrying cost
Ordering cost per order Rs. 90
Raw material required per unit of finished products 2kg.
Purchases price of input unit Rs. 25 per kg.
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SLR-Q 49
Q.4 From the following information prepare balance sheet of ABC Company
Ltd. as on 31.3.2016.
14
Gross Profit Ratio 25%
Net Profit Ratio 20%
Stock Turnover Ratio 10
Net Profit Capital 1 ⁄ 5
Capital to total liability ½
Fixed Assets to capital 5⁄4
Fixed Assets to total current Assets 5⁄7
Fixed Assets Rs. 10,00,000
Closing stock Rs. 1,00,000
OR
From the following information calculate 14
Current ratio Quick ratio
Inventory turnover ratio Inventory current asset
ratio
Average collection period Debt equity ratio
Proprietary ratio
31.3.2015 31.3.2016
Particulars Assets Liabilities Assets Liabilities
Stock 10,000 20,000
Debtors 30,000 30,000
Payment in Advance 2,000
Cash in hand 20,000 15,000
Creditors 25,000 30,000
Acceptance 15,000 12,000
Bank overdraft 5,000
Sales amounted to Rs.3,50,000 in the year ends on 31.3.2015 and
Rs.3,00,000 in the year ends on 31.3.2016.
Q.5 Explain the motives of cash management. Discuss the theories of
cash Management.
14
OR
From the following information calculate. 14
1. Re-order level
2. Minimum level
3. Maximum level
4. Average stock level
5. Danger level
Rate of consumption
Minimum 750 kg per week
Maximum 2250 kg per week
Normal 1200 kg per week
Re-order period
Minimum 3 weeks
Maximum 7 weeks
Normal 4 weeks
For emergency purchase 2 weeks
Re-order quantity 6000 kg.