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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.B.A.DEGREE EXAMINATION -BUSINESS ADMINISTRATION
SIXTH SEMESTER APRIL 2018
BU 6603- MANAGEMENT ACCOUNTING
Date: 03-05-2018 Dept. No. Max. 100 Marks
Time: 01:00-04:00
PART A
ANSWER ALL THE QUESTIONS: (10 X
1. Give the meaning for the term management accounting.
2. Explain the meaning of capital gearing.
3. What is a fund flow statement?
4. What is working capital?
5. What is zero based budgeting?
6. Write a note on master budget.
7. What is meant by break-even point?
8. Ascertain the gross profit ratio from the following particulars:
Gross profit Rs 27,000 cost of sales RS 33000 opening stock RS 12000 closing stock RS 16000.
9. From the following information, find out the amount of profit earned during the year using marginal costing technique. Fixed cost Rs 00,000 variable cost Rs 10 per unit, selling price Rs 15 per unit and output level 1,50,000 units.
10. B Ltd has a liquidity ratio of 2:1. If its inventory is Rs 15000 and total current liabilities are Rs 30000, ascertain the current ratio.
PART-B
ANSWER ANY FIVE QUESTIONS ONLY: X
11. Explain the characteristics of management accounting.
12. What are the limitations of ratio analysis?
13. What do you mean by funds from operations? How is it determined?
14. What is budgetary control? Bring out its advantages.
15. From the following particulars, calculate gross profit ratio net profit ratio operating ratio. Sales Rs.500000 Cost of goods sold Rs.300000 Operating expenses Rs.100000
Non-operating expenses Rs.20000
16. Calculate the funds from operations from the information given below as on 31.12.2008.
i. Net profit for the year ended 31.12.08 Rs.13,00,000
ii. Rs.2,50,000 have been transferred to the general reserve fund.
iii. Depreciation has been provided during the year on machinery and furniture at 20% whose total cost is Rs.13,00,000
iv. Old machinery worth Rs.16000 has been sold for Rs.13000 during the year.
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v. Goodwill appears in the books at Rs.3,60,000 out of that 10% has been written off during the year.
vi. Gain on sale of building Rs.71,000.
17. Using the information below, prepare a cash budget showing expected cash receipts and disbursements for the month of June and balance expected on June 30, 2009.
Budgeted cash balance June 1 2009 Rs.1,20,000. Sales for June Rs.16,00,000, half collected in the month of sale, 40% in next month, 10% in the third month.
Customer receivables as of June Rs 140000 from April sales Rs.900000 from May sales. Purchases for June Rs.1000000, 40% payment in the month of purchase, 60% paid in the next month. Wages due in June Rs.176000.Three years insurance policy due in June for renewal Rs. 4000 to be paid in cash.Other expenses in June payable in June Rs.88000. Depreciation for the month of June Rs 4000. Accrued taxes for June, payable in December Rs.12000. Fixed deposit receipts due June 15 Rs 350000 plus Rs 20000 interest.
18. You are given the following data for the year 2008 of a company.
Rs.

Variable costs
600000
60
Fixed costs
300000
30
Net profit
100000
10
Total Sales
1000000
100
Find out P.V.Ratio, B.E.P. Margin of Safety ratio
PART C
ANSWER ANY TWO QUESTIONS ONLY. X 20 40)
19. From the following balance sheets prepare a sources and uses of following statement.
LIABILITIES
2002(Rs)
2003(Rs)
ASSETS
2002(Rs)
2003(Rs)
Share capital
200000
210000
Fixed assets
350000
475000
Retained earnings
160000
300000
Inventory
100000
95000
Premium on shares

5000
Bills receivable
43000
50000
Accumulated depreciation
80000
100000
Prepaid expenses
4000
5000
Debentures
60000

Cash
15800
10200
Bills payable
37800
40200
Commission on shares
25000
20000
Total
537800
655200
537800
655200
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Additional information: Depreciation for the year Rs 20000, Income tax paid Rs 40000; Interim dividend paid during the year was Rs 20000.
20. Given below are the details taken from the books of a manufacturing concern:
Variable cost 75% of sales price, and fixed cost per annum Rs 800000.
Calculate P.V.Ratio, Break-even Sales, Sales required to earn a profit of Rs.700000, Profit made, if sales amount to Rs 50, 00,000.
21. From the following financial statements of a company for the year ending 31st march 2003 you are required to calculate the following ratios, giving the formulae and the purpose they serve. Gross profit ratio, proprietary ratio, debtors turnover ratio, current ratio, stock turnover ratio.
Trading and Profit and Loss Account
Particulars
Rs.
Particulars
Rs.
To Opening Stock
43,500
By Sales
225000
To Purchases
183000
By closing stock
46500
To gross Profit c/d
45,000
Total
271500
271500
To sundry expenses
24000
By Gross profit b/d
45000
To net profit
21000
Total
45000
45000
Balance Sheet
Liabilities
Rs.
Assets
Rs.
Equity share capital
210000
Fixed Assets
165000
General Reserve
15000
Current assets
Profit and Loss A/c
21000
Stock
46500
Bills Payable
10500
Sundry debtors
24000
Creditors
45000
Bank
66000
Total
301500
301500