GUG/W/18/802 1 P.T.O
Bachelor of Business Administration Fourth Semester
246 Management Accounting
P. Pages 4 GUG/W/18/802
Time Three Hours Max. Marks 80

Notes 1. All questions are compulsory.
2. All questions carry equal marks.
1.

Distinguish between the Cost Accounting the management accounting.
8

From the following information for 60% activity prepare a flexible budget at 80% 100% activity.
Production at capacity 600 units
Materials at Rs. 100 per unit
Labour Rs. 40 per unit
Direct Expenses Rs. 10. p.u.
Factory Exp. Rs. 40,000 fixed)
Administrative Expenses Rs. 50,000 fixed)
8
OR

A company expects to have Rs. 25,000 in Bank on 1st May 2010 and requires you to prepare an estimate of cash position during the three months May, June and July 2010 The following information is supplied
Month
Sales
Purchase
Wages

Office

Factory

Selling Exp.
March
50,000
30,000
6,000
6,000
5,000
3,000
April
56,000
32,000
6,500
6,000
5,500
3,000
May
60,000
35,000
7,000
6,000
6,000
3,500
June
80,000
40,000
9,000
6,000
7,500
4,500
July
90,000
40,000
9,500
6,000
6,000
4,500
Other Information
20% of sales are in cash remaining amount is collected in the month following that of sales.
ii) Supplies supply goods at two month credit.
iii) Wages all other expenses are paid in the months following the one in which they are incurred.
iv) The company pays dividends to share holders and bonus to workers of Rs. 15,000 and Rs. 20,000 respectively in the month of June.
Plant has been ordered and is expected to be received in May. It will cost Rs. 80,000
to be paid in July.
vi) Income tax Rs. 30,000 is payable in June.
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2.

From the following information find out.
Profit volume ratio
ii) Break even point in rupees
iii) Break even point in units
Variable cost p.u. Rs. 18
Selling price p.u. Rs. 24
Fixed cost Rs. 75,000
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*0614*
GUG/W/18/802 2

Fixed cost Rs. 30,000
Variable cost Rs. 2,00,000
Sales Rs. 2,50,000
Profit Rs. 20,000
From information furnished above find out
Profit volume ratio
ii) Break even point
iii) Profit when the sales is Rs. 1,80,000
iv) Sales to earn profit of Rs. 35,000
8
OR

From the following information relating to Darshan Company ltd. Calculate
Ratio of variable cost to sale
ii) Break even point
iii) Net profit from the sales of Rs. 66,500
iv) Sales required to earn a profit of Rs. 8,000
Margin of safety if profit is Rs. 4,800.
Year
Total Sales
Total Cost
2016
52500
48500
2017
49500
45900
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3.

From the following information calculate
Debtors turnover ratio
Average collection period
Total sales during the year Rs. 1,50,000
Cash sales during the year Rs. 30,000
Debtors on Ist Jan. 2016 Rs. 55,000
Debtors on 31st December 2016 Rs. 65,000
8

Financial statement of Sarda Ltd. for the 2015 is as follows
Particulars
Rs.
Rs.
Sales
6,00,000
Cost of goods sold
3,60,000
Gross Profit
2,40,000
Operating Expenses
Office Expenses
65,000
Selling Expenses
55,000
1,20,000
Net Profit
1,20,000
Calculate
Gross profit ratio
ii) Operating ratio
iii) Selling expenses ratio
iv) Stock turn over ratio (Average stock Rs. 72,000)
8
OR
GUG/W/18/802 3 P.T.O

Following are the Trading P L A/c of Sagar Ltd. for the year ending 31st December 2016 and the Balance Sheet as on that date.
Trading Profit Loss Account
Particulars
Rs.
Particulars
Rs.
To Opening Stock
1,45,000
By Sales
7,50,000
To Purchase
6,10,000
By Closing Stock
1,55,000
To Gross Profit
1,50,000
9,05,000
9,05,000
To Sundry Expenses
80,000
By Gross Profit
1,50,000
To Net Profit
70,000
1,50,000
1,50,000
Balance Sheet as on 31st December 2016
Liabilities
Rs.
Assets
Rs.
Share Capital
7,00,000
Fixed Assets
5,50,000
Reserve Surplus 50,000
P L A/c 70,000
1,20,000
Stock
1,55,000
Bank overdraft
35,000
Debtors
80,000
Creditors
1,50,000
Cash in hand
2,20,000
10,05,000
10,05,000
Calculate
Current Ratio ii) Quick Ratio
iii) Gross Profit Ratio iv) Stock turnover Ratio
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4.

Prepare statement of changes in working capital
Particulars
2016
2017
Building
32,000
25,600
Cash
8,000
8,000
Bank
56,000
62,400
Debtor
18,000
33,120
Machinery
24,000
27,200
Patents
1,600
1,440
Stock
24,000
24,000
Land
6,400
6,400
1,70,000
1,88,160
Current Liabilities
49,000
51,200
Provision for tax
15,200
10,200
General Reserve
25,000
36,200
Share Capital
76,000
84,000
P L Account
4,800
6,560
1,70,000
1,88,160
Additional Information
A portion of building was sold for Rs. 5,120 the depreciation was Rs. 1,280.
ii) Tax of Rs. 12,000 was paid.
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GUG/W/18/802 4

Prepare statement of sources Application of Fund.
Sales of machinery 20,000
Purchase of furniture 12,000
Dividend paid 14,000
Redemption of debenture 25,000
Good will written off 4,500
Profit from operation 18,000
Increase in working capital 13,500
Purchase of Machinery 70,500
Share capital issued 6000 shares of Rs. 10 each at a premium of Rs. 2 per share. All amount received.
8
OR

From the following information prepare fund flow statement.
Particulars
2016
Rs.
2017
Rs.
Fixed Assets
2,55,000
3,10,000
Investment
15,000
40,000
Current Assets
1,20,000
1,87,500
Discount on Issue of Debenture
5,000
2,500
3,95,000
5,40,000
Ordinary share capital
1,50,000
1,75,000
Preferential share capital
1,00,000
50,000
Debenture
50,000
1,00,000
Retain Earning surplus
55,000
1,35,000
Reserve for doubtful debt
5,000
7,500
Current liabilities
35,000
72,500
3,95,000
5,40,000
Adjustments
A machine having a book value of Rs. 20,000 was sold for Rs. 12,500
ii) Dividend at 18% was paid for 2016-2017 on ordinary share capital.
iii) Preference shares were redempted at a premium of 5%.
iv) Depreciation of Rs. 35,000 was charge on fixed assets.
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5.
Write short note
Objectives of Budget
4
ii) Features of marginal costing
4
iii) Importance of Ratio Analysis
4
iv) Sources of funds for the business
4