GUG/W/18/10684 1 P.T.O
Master of Business Administration (CBCS And Old Pattern) Second Semester Old+CBCS
C23 PCB2C03 Cost And Management Accounting Paper III
P. Pages 3 GUG/W/18/10684
Time Three Hours Max. Marks 70

Notes 1. Attempt any five question.
2. All questions carry equal marks.
1.
What is cost Accounting? Discuss about the elements of cost.
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2.
Explain the purpose of reconciliation the profit of cost account and financial account.
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3.
"Ratio are indicated- Sometimes pointer but not in themselves powerful tool of management." In the light of this statement draw out the limitations of ratios.
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4.
Explain the objectives and limitations of fund flow statement.
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5.
Define budget and budgetary control. State the advantages of budgetary control in an organization.
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6.
A firm manufactural and Sold 1000 Typewriters in the year 2002 at Summarized trading and Profit and Loss Account for the year 2002 is set cut below.
Particulars
Amount
Particulars
Amount
To, cost of materials
80,000
By, Sales
4,00,000
To, Direct Wages
1,20,000
To, Manufacturing charges
50,000
To, Gross Profit
1,50,000
4,00,000
4,00,000
To, Management& Staff Salaries
60,000
By, Gross Profit
1,50,000
To, Rent Rates Insurance
10,000
To, General exp.
20,000
To, Selling exp.
30,000
To, Net Profit
3,000
1,50,000
1,50,000
For the year 2003 it is estimated that.
Output and Sales will be 1200 Typewriters
ii) Price of material will rise by 20% on the previous year level.
iii) Wage rate will rise by
iv) Manufacturing charges will increase in proportion to the combined cost of material Wages.
Selling cost per unit will remain unchanged.
vi) Other expenses will remains unaffected by the rise in the output.
Prepare a statement showing the price of which the Typewriter to be manufactured in 2003 should be marketed so as to show profit of 10% on Selling price.
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7.
Following information are obtained from cost records of a Rahul electronic co. ltd. Prepare cost Sheet, financial account and Reconciliation Statement Two types of Transistors were manufactured.
Particulars
Type A
Type B
Unit Produced
100
200
Material per unit
22
20
Wages per unit
45
50
Sales per unit
125
150
Works on cost 60% of wages office on cost 25% of works cost Actual works on cost Rs. 9000, Actual office on cost Rs. 4500.
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8.
The contract ledger of a company showed the following expenditure on account of contract No. 340 at 31st Dec. 2003.
Material
Rs. 94,000
Plant
Rs. 12,000
Wages
Rs. 1,03,000
Establishment charges
Rs. 6,000
Wages accrued
Rs. 700
The contract commenced on 1st Jan. 2003 and the contract price was Rs. 4,00,000 cash received on account to date was Rs. 1,72,000 representing 80% of the work certified, the remaining 20% being retained unit completion. The value of materials in hand was 4500 and the work finished out but not certified was Rs. 4000.
Prepare an account in respect of the contract assuming depreciation an plant at 10% and state the proportion of profit to be taken to the credit of profit and loss account and loss account and also show the particulars relating to the contract would appear in the Balance- Sheet of the company as at 31st Dec. 2003.
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9.
Balance Sheet of Prakash Co. ltd. are as under.
Liabilities
2001 Rs.
2002 Rs.
Assets
2001 Rs.
2002 Rs.
Share capital
4,50,000
4,50,000
Fixed Assets
4,00,000
3,20,000
General Reserve
3,00,000
3,10,000
Investments
50,000
60,000
Profit Loss A/c
56,000
68,000
Stock
2,40,000
2,10,000
Creditors
1,68,000
1,34,000
Debtors
2,10,000
4,55,000
Provision for tax
75,000
10,000
Bank
1,49,000
1,97,000
Mortgage loan

2,70,000
10,49,000
12,42,000
10,49,000
12,42,000
Adjustment
Investments costing of Rs. 8000 and sold during the year 2002 for Rs. 8500.
ii) Provision for tax made during the current year Rs. 9000.
iii) A part of fixed assets costing of Rs. 10000 sold for Rs. 12000 and the Profit
included in the profit and loss account.
iv) Dividend paid in current year Rs. 40000.
Prepare statement of working capital and fund flow statement for the year ending 31st Dec. 2002
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GUG/W/18/10684 3 P.T.O
10.
By the help of following information prepare cash budget for the end of April, May June.
Months
Sales
Purchase
Wages
Miscellaneous expenses
February
1,20,000
84,000
10,000
7,000
March
1,30,000
1,00,000
12,000
8,000
April
80,000
1,04,000
8,000
6,000
May
1,16,000
1,06,000
10,000
12,000
June
83,000
80,000
8,000
6,000
Adjustments
Sales 20% Sales are in cash, discount allowed on cash a sale balance realized equally in 2 subsequent months.
ii) Purchase are paid in the month following the month of Supplier.
iii) Wages 25% paid in arrears following month.
iv) Miscellaneous expenses paid a month in arrears.
Rent Rs. 1000 per month paid quarterly in advance due in April.
vi) Income tax 1st instalment of advance tax Rs. 25000 due on or before 15th June.
vii) Income from Investments Rs. 5000 received quarterly in April in July extra.
viii) Cash in hand Rs. 5000 on 1st April.
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