B.B.A. DEGREE EXAMINATION, NOVEMBER 2017
Fifth Semester
Business Administration
MANAGEMENT ACCOUNTING
(CBCS 2011 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
1. Explain the term Management accounting.
2. Write short notes on internal analysis.
3. What do you mean by operating ratio?
4. X Ltd., submit the following data relating to sales and
cost
Rs.
Sales 80,000
Cost of sales 60,000
Find out gross profit ratio.
5. What are non-cash items?
6. What is cash flow statement?
7. Write short notes on Angle of incidence.
8. What is meant by key factor?
Sub. Code
1BBA5C2
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9. Write short notes on unfavourable variance.
10. What is sub-variance?
Part B x 5 25)
Answer all questions by choosing either or
11. What are the objectives of management accounting?
Or
What are the importances of financial statements?
12. Explain the profitability ratio.
Or
From the following balance sheet of a company, you
are required to calculate current ratio and solvency
ratio.
Balance sheet as on 31st December
Liabilities Amount
Rs.
Assets Amount
Rs.
Share capital 10,00,000 Fixed Assets 12,00,000
Fixed Liabilities 5,00,000 Current Assets 8,00,000
Current Liabilities 5,00,000
20,00,000 20,00,000
13. What are the advantages of cash flow statement?
Or
From the following calculate funds from operations
for the year ending 31st December 2014;
Rs.
Profit for year 2014 1,60,000
Depreciation 90,000
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Goodwill written off 20,000
Loss on sale of machinery 10,000
Profit on sales investment 3,000
Tax provision 2,000
Dividends received 7,000
Preliminary expenses written off 4,000
Transfer to General reserve 30,000
Commission paid on a non-trading
activities debited to P/L a/c 10,000
14. What are the assumptions of Break even analysis?
Or
The following figures of sales and profits for two
periods are available in respect of a concern.
Particulars Sales
Rs.
Profit
Rs.
Period I 75,000 7,500
Period II 60,000 11,500
You are required to find out
P/V ratio
Fixed cost.
15. What are principal variances?
Or
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From the following, calculate labour variance of
department A
Department A
Actual direct wages Rs. 2,000
Standard hours 8,000
Standard rate per hour 30 paise
Actual hours worked 8,200
Part C x 10 30)
Answer any three questions.
16. Explain the merits and demerits of management
accounting.
17. From the following particulars of X company calculate
Sales Debtors Closing Stock Creditors.
Debtor's velocity 3 months
Stock Turnover ratio 8
Creditors velocity 2 months
Gross profit ratio 25%
Gross profit for the year was Rs. 4,00,000. Clsing stock
was Rs. 10,000 more than the opening stock.
18. From the following balance sheets of ABC Co. Ltd make
out the statement of sources and uses of cash.
Balance sheet
Liabilities 2013 2014 Assets 2013 2014
Rs. Rs. Rs. Rs.
Equity Share capital 6,00,000 8,00,000 Goodwill 2,30,000 1,80,000
Preference Share
capital
3,00,000 2,00,000 Land and
building
4,00,000 3,40,000
General Reserve 80,000 1,40,000 Plant 1,60,000 4,00,000
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Profit and loss A/c 60,000 96,000 Stock 1,54,000 2,18,000
Proposed dividend 84,000 1,00,000 Debtors 3,20,000 4,00,000
Creditors 1,10,000 1,66,000 Bills receivable 40,000 60,000
Bills payable 40,000 32,000 Cash in hand 30,000 20,000
Provision for tax 80,000 1,00,000 Cash at bank 20,000 16,000
13,54,000 16,34,000 13,54,000 16,34,000
Additional information
Depreciation of Rs. 20,000 and Rs. 40,000 have been
charged on plant and land and building respectively
in 2014.
An interim dividend of Rs. 40,000 has been paid in
2014.
Rs. 70,000 income tax was paid during the year
2014.
19. Given: Sales Rs. 5,00,000; Fixed cost Rs. 1,00,000;
Variable cost 3,00,000
Find out the following
P/V ratio
B.E.P
Sales volume required to earn a profit of Rs. 90,000
Sales volume when there is loss of Rs. 30,000
20. From the following particulars calculate
Material Cost Variance
Material Price Variance
Material Usage Variance
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Quantity of material purchased Rs. 3,000 Units. Value of
material purchased Rs. 9,000. Standard Quantity of
material required per tonne of finished product is
25 units
Standard Rate of material Rs. 2 per unit
Opening stock of raw material Nil units
Closing stock of raw material 500 units
Finished production during the year 80 tons.
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