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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034 B.B.A.DEGREE EXAMINATION BUSINESS ADMINISTRATION SIXTHSEMESTER APRIL 2017
BU 6603- MANAGEMENT ACCOUNTING
Date: 06-05-2017 Dept. No. Max. 100 Marks
Time: 09:00-12:00
PART A ANSWER ALL QUESTIONS. (10 X 2 =20 Marks)
1.Define management accounting.
2. Find out operating ratio and operating profit ratio. Cost of goods sold Rs 180000 Other operating expenses Rs 30000 Net sales Rs 300000
3.CalculateAverage collection period from the following. Credit sales for the year Rs 30000 Debtors- Rs 2500 Bills receivable Rs 3000
4.Ascertain the change in working capital from the following. Increase in some items of current assets Rs 12000 Decrease in some items of current assets -Rs 9000 Increase in some items of current liability -Rs 10000 d)Decrease in some items of current liabilities Rs 12000
5. Find out the funds from operations from the details given below. Net profit for the year 2006 2007 Rs 95000 Depreciation charged on fixed assets- Rs 42000 Profit on sale of long term investments included in the P L a/c Rs 13000 Goodwill written off Rs 20000
6. Calculate P/V ratio from the data given below 2006 sales Rs 600000 Profit Rs 100000 2007: Sales -Rs 1000000 Profit Rs 180000
7.Explain the meaning of Break-Even point.
8. Define Budgetary Control.
9. List out four objectives of budgetary control.
10. What is Overhead variance Analysis?
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PART B Answer any four questions. x 10 40 Marks)
11. Explain in detail the functions of management accounting.
12. Discuss the application of Marginal Costing Techniques in Managerial decision making.
13. The following figures relate to the trading activities of a company for the year ended 31-12-1987
Particulars
Rs.
Particulars
Rs.
Sales Purchases Closing stock Sales returns Dividend Received Profit on sale of fixed assets Loss on sale of shares Opening stock
100000 70000 14000 4000 1200 600 300 11000
Salary of salesman Advertising Travelling expenses Salaries(office) Rent Stationery Depreciation Other expenses Provision for tax
1800 700 500 3000 6000 200 1000 2000 7000
You are required to calculate
Gross profit ratio Operating profit ratio Operating ratio Net profit ratio
14. Calculate funds from operations from the following Profit and Loss Account
Particulars
Rs
Particulars
Rs
To Rent To salary To Depreciation on furniture To Discount on issue of shares To Goodwill written off To preliminary expenses To Netprofit
10,000 25,000 3,000 10,000 5,000 6,000 9,27,000
By Gross profit
9,86,000
Total
9,86,000
Total
9,86,000
15.Prepare a flexible budget for overheads on the basis of the following data . Ascertain overhead rates at and 70% capacity. Variable overheads At 60% capacity Rs. Indirect material 6,000 Indirect labour 18,000 Semi variable overheads Electricity(40%fixed) 30,000
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Repairs(80%fixed) 3,000 Fixed overheads Depreciation 16,500 Insurance 4,500 Salaries 15,000 Total overheads 93,000 Estimated direct labourhours 1,86,000 16. You are required to prepare a production budget for the half year ending June 2000 from the following information.
Product
Budgeted Sales Quantity
Actual Stock on 31.12.1999
Desired stock on 30.6.2000
Units
`Units
Units
S
20000
4000
5000
T
50000
6000
10000
17.Calculate material cost variances from the following data:
Standard
Actual
Quantity
400 Kgs
460 Kgs
Price
Rs.2 per Kg
Rs.1.5 per Kg
Value
Rs.800
Rs.690
PART C ANSWER ANY TWO QUESTIONS. (2x 20 40 Marks) 18. Bring out the differences between Financial accounting and Management accounting. 19. The sales turnover and profit during two years were as follows.
Year
Sales RS
Profit RS
2007
140000
15000
2008
160000
20000
Calculate P/V ratio Break-even point Sales required to earn a profit of Rs 40000 Fixed expenses e)profit when sales are Rs 120000
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20. From the following Balance Sheets of A Ltd., make out: A Statement of Changes in Working Capital A Funds Flow Statement. BALANCE SHEETS
Liabilities
31st March
Assets
31st March
1995 Rs.
1996 Rs.
1995 Rs.
1996 Rs.
Equity Share Capital
3,00,000
4,00,000
Goodwill
1,15,000
90,000
Pref. Share Capital
1,50,000
1,00,000
Land Buildings
2,00,000
1,70,000
General 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 Dividends
42,000
50,000
Stock
77,000
1,09,000
Creditors
55,000
83,000
Bills Receivables
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 and Land& Building respectively in 1996.
An interim dividend of Rs.20,000 has been paid in1996.
Income tax Rs.35,000 was paid during 1996.
21. Prepare a balance sheet with as many details as possible from the following information. Gross profit ratio 20% Debtors turnover 6 times Fixed assets to Net worth 0.80 Reserves to capital 0.50 Current ratio 2.50 Liquid ratio 1.50 Net working capital Rs. 300000 Stock turnover ratio 6 times