M.COM. (Semester III) (CBCS) Examination, 2017
MANAGEMENT ACCOUNTING (Paper III)
Day Date: Saturday, 22-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 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. 14
accounting which provides necessary information to the
management for discharging its functions.
Management Financial
Historical Integrated
Current ratio is also called as ratio.
Working capital Liquidity
Propritory Solvency
is powerful tool of financial analysis.
Break even Ratio
Inventory Cost
Increase in current asset, its result that in working capital.
Decrease Increase
No effect Constant
Sales minus cost of sales minus operating expenses is equal to
Divisible profit Gross loss
Net operating income Gross profit
The ratio between quick assets and quick liabilities is called
ratio.
Current Working capital
Acid test Solvency G
process and present the accounting data for
internal use.
Financial Company
Corporate Management
Total of all current assets is called
Quick assets Net worth
Net working capital Gross working capital
Page 1 of 5
SLR-Q 62
The officer who is entrusted with management accounting functions is
an organization is known as
Cost accountant Financial accountant
Management accountant Auditor
10) Capital gearing ratio is also known as
Debt enquiry ratio Capitalization ratio
Proprietary ratio Quick ratio
11) assets are those assets which in the ordering course of
business can be or will be converted into cash within a short period of
normally accounting year.
Fixed Ficticious
Long term Current
12) Increase in working capital is of fund.
Application Type
Source Method
13) shows the change in financial position between two dates.
Fund flow statement Balance sheets
Budget All of these
14) Bills payable, creditors, short term borrowing etc are the examples of

Current assets Current liabilities
Non- current assets Non-current liabilities
Q.2 Write short notes. 14
Management accountant
Cost accounting and Management accounting
Q.3 From the following information calculate Current Ratio, Quick Ratio,
and Inventory to working Capital Ratio.
07
Plant and machinery Rs. 3,50,000
Stock Rs. 2,00,000
Debtors Rs. 1,00,000
Bills receivable Rs. 10,000
Cash at bank Rs. 40,000
Bills payable Rs. 50,000
Creditors Rs. 1,00,000
12% debentures Rs. 4,20,000
Page 2 of 5
From the following information calculate funds from operation. 07
Profit and Loss Accounts
To operation expenses 1,00,000 By Gross profit 2,00,000
To Depreciation 40,000 By Gain on sale
of plant
20,000
To Loss on sale of
building
10,000
To Discount allowed 500
To Advertisement
suspense account
5,000
To Discount in issue of
shares written off
500
To Goodwill written off 12,000
To Net profit 52,000
2,20,000 2,20,000
Q.4 From the following information prepare funds flow statement for the year
ended 31.3.2016.
14
Balance Sheet
Liabilities 31.3.2015 31.3.2016 Assets 31.3.2015 31.3.2016
Share
capital
3,00,000 3,50,000 Goodwill 1,00,000 80,000
Debentures 1,50,000 2,50,000 Machinery 4,10,000 5,40,000
General
reserve
1,00,000 1,50,000 Investment 30,000 80,000
Profit and
loss A/c
60,000 70,000 Discount on
issue of
debentures
50,000
Provision
for dep. On
Cash at
bank
1,20,000 1,30,000
Machinery 90,000 1,30,000 Debtors 80,000 1,90,000
Creditors 75,000 1,10,000 Stock 40,000 55,000
Bills
payable
10,000 15,000
7,85,000 10,75,000 7,85,000 10,75,000
During the year investment costing Rs. 30,000 were sold for Rs. 28,000.
A new machine was purchased for Rs. 45,000 and the payment was made
in fully paid shares.
OR
Alfa manufacturing company has draw up the following profit and loss
account for the year ended 31.3.2016
Profit and Loss Account
To Opening stock 26,000 By sales 1,60,000
To Purchases 80,000 By closing stock 38,000
To Wages 24,000
To Manufacturing exp 16,000
To Gross profit c/d 52,000
1,98,000 1,98,000
To Selling expenses 4,000 By Gross profit 52,000
To Administrative exp 22,800 By Compensation of
acquisition of land
4,800
To General expenses 1,200
To Value of furniture
loss by fire
800
To Net Profit 28,000
56,800 56,800
You are required to find out:
1. Gross Profit Ratio
2. Net Profit Ratio
3. Operating Ratio
4. Operating Net Profit To Net Sales Ratio
Q.5 From the following information construct the balance sheet. 14
Gross Profit of sales) Rs. 60,000
Shareholders' equity Rs. 50,000
Credit sales to total sales 80%
Total assets turnover 3 times
Stock turnover 8 times
Average collection period
(year 360 days)
18 days
Current ratio 1.6:11
Long term debt to equity 40%
Balance sheet
Liabilities Amt Rs. Assets Amt. Rs.
Creditors Cash
Long term debt Debtors
Shareholders
fund
Inventory
Fixed assets

OR
From the following Financial Statement of M/s. Prabhat Ltd. compute-
1. Current Ratio 2. Operating Expenses Ratio
3. Quick Ratio 4. Total Debts To Shareholders
Equity
5. Debtors Turnover 6. Gross Profit Ratio
7. Stock Turnover
Balance sheet as on 31.3.2014
Liabilities Rs. Assets Rs.
Equity share capital 2,00,000 Building less depreciation 1,50,000
10% pref. share capi. 80,000 Plant and machinery 2,10,000
Profit and loss A/c 1,00,000 Stock in hand 2,00,000
10% debentures 2,00,000 Debtors (last years Rs.
1,60,000)
1,20,000
Creditors 1,00,000 Investment (short term) 40,000
Bills payable 20,000 Cash 80,000
Taxes payable 1,00,000
8,00,000 8,00,000
Profit and Loss account
For the year ended 31.3.2014
Rs. Rs.
To Opening stock 2,00,000 By Sales (credit) 11,00,000
To Purchases 4,00,000 By Stock at end 3,00,000
To Gross profit 8,00,000
14,00,000 14,00,000
By Gross Profit 8,00,000
To Operating exp. 3,00,000
To Interest on
debentures
20,000
To Income tax 2,30,000
To Net income after
tax
2,50,000
8,00,000 8,00,000