GUG/W/18/840 1 P.T.O
Bachelor of Commerce (Computer Application) II Fourth Semester
242 Management Accounting
P. Pages 5 GUG/W/18/840
Time Three Hours Max. Marks 80

1.

Define Management Accounting. How does it differ from Financial Accounting?
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From the following data, prepare a flexible Budget for the production of 40,000 units and 75,000 units, distinctly showing variable cost and fixed cost, as well as total cost. Also Indicate elementwise cost per unit. Budget output is 1,00,000 unit and Budgeted per unit is as follows.
Per Units Rs.
Direct Material 95
Direct Labour 50
Production overhead (variable) 40
Production overhead (fixed) 5
Administrative overhead (fixed) 5
Selling overheads fixed) 10
Distribution overhead fixed) 15
OR
8

From the following forecasts of Income and Expenditure, prepare a cash budget for the months January to April 2013.
Months
Sales credits Rs.
Purchase credit Rs.
Wages Rs.
Manufacture Exp. Rs.
Admn. Exp. Rs.
Selling Exp. Rs.
2012 Nov.
30,000
15,000
3,000
1,150
1,060
500
2012 Dec.
35,000
20,000
3,200
1,225
1,040
550
2013 Jan.
25,000
15,000
2,500
990
1,100
600
2013 Feb.
30,000
20,000
3,000
1,050
1,150
620
2013 Mar.
35,000
22,500
2,400
1,100
1,220
570
2013 April
40,000
25,000
2,600
1,200
1,180
710
Additional Information
The customers are allowed a credit of two month.
The creditors are allowed a credit of two month.
Wages are paid on the 1st of the next month.
Lag in payment of other expenses is one month.
Balance of cash in hand on 1st January 2013 is Rs. 15,000.
A devidend of Rs. 10,000 is payable in April.
Capital expenditure to be incurred. Plant purchased on 15th January for Rs. 5,000. A building has been purchased on 1st March and payment are to be made in monthly instalments of Rs. 2,000 each.
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2.

Following Information is drawn from the Books of a factory.
Direct Material Rs. 30,000
Direct Wagest Rs. 24,000
Factory overheads (variable) 25% of wages office overheads (variable) 10% of factory marginal cost.
Selling Distribution over heads Rs. 6 per unit
Fixed cost Rs. 12,000
Unit Sold 1,000 Rs. 96 per unit
From the above information calculate.
Break Even Point ii) P.V.R.
iii) Margin of safety in percentages.
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Rs.
Sales 1,25,000
Variable Cost 45,000
Gross profit 80,000
Fixe 1 Cost 50,000
Net profit 30,000
From the above information you are required.
P.V.R. ii) Break Even Point
iii) Net Profit for the sales of Rs. 1,50,000
iv) Required sales for net profit Rs. 40,000.
OR
8

Calculate Break Even Point and sales to earn a profit of Rs. 6,000.
Year
Total Sales
Total Cost
2011
42,500
38,700
2012
39,200
35,900
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3.

From the following information Calculate Nonoperating expenditure Ratio. Direct Labour Ratio Administrative Expenses Ratio, Selling Distribution expenses Ratio.
Rs.
Opening Stock 20,000
Closing Stock 30,000
Purchase 1,30,000
Purchase Returns 10,000
Sales 2,15,000
Sales Return 15,000
Direct Labour 40,000
Manufacturing Expenses 25,000
Office Expense 35,000
Sales Distribution Expenses 15,000
Interest on Debentures 6,000
Loss due to fire 1,000
Loss on sale of Asset 2,000
Other Direct Expenses 5,000
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GUG/W/18/840 3 P.T.O

Trading and Profit and Loss A/c.
Particular
Rs.
Particular
Rs.
Opening Stock
7,000
Sales
(Return)
1,00,000
Purchase
(Return)
40,000
Wages
10,000
Closing Stock
5,000
Carriage
4,000
Factory Expense
15,000
Gross Profit
29,000
1,05,000
1,05,000
Administrative Expenses
9,000
Gross profit
29,000
Selling Expenses
3,000
Profit
17,000
29,000
29,000
Calculate
Gross Profit Ratio ii) Net Profit Ratio
iii) Stock Turn Over Ratio iv) Operating Ratio.
OR
8

The Balance Sheet of a Limited Company is give and is prepared on 31st March 2014.
Liabilities
Rs.
Asset
Rs.
Equity Share Capital
3,00,000
Good Will
2,00,000
Reserve Fund
1,50,000
Lands Building
3,00,000
Debentures
2,00,000
Plant Machinery
2,50,000
Mortgage Loans
4,00,000
Patents
50,000
Sundry Creditors
50,000
Stock in Trade
1,50,000
Bills payable
25,000
Sundry Debtors
1,00,000
Bank over draft
40,000
Bills Receivable
80,000
Outstanding Exp.
10,000
Marketable securities
18,000
Tax Liability
15,000
Cash Balance
40,000
Prepaid Exp.
2,000
11,90,000
11,90,000
Calculate the following ratios.
Current Ratio
ii) Acid Test Ratio
iii) Stock (Inventory) Turnover Ratio
iv) Debtors Turnover Ratio
Creditors Turn Over Ratio
vi) Working Capital Turnover Ratio
Additional Information
Total no. of working days in the year 365 days.
Stock in Trade on 31st March 2013 Rs. 1,00,000.
Sales during 2013-2014 Rs. 5,00,000 and purchases Rs. 3,00,000.
Trade Debtors include sundry debtors and bills receivable and on 31-3-2013
The Total amount was Rs. 70,000.
Trade creditors include Sundry Creditors and Bills Payable and on 31-03-2013 the Trade creditors were Rs. 35,000.
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GUG/W/18/840 4
4.

The Balance sheets of Laxmi Co. as on 31st March 2012 31st March 2013 are given as under.
Liabilities
31st March 2013 Rs.
31st March 2012 Rs.
Share Capital
50,000
50,000
General Reserve
3,000

Profit Loss Account
35,000
15,000
Mortgage Debenture
50,000

Secured Loan
20,000

Sundry Creditors
22,000
18,000
Proposed Dividend

3,000
Provision for Tax
8,000
6,000
1,88,000
92,000
Asset
Rs.
Rs.
Plant
13,000

Plant

12,000
Land Building
1,00,000

Investment

15,000
Stocks
44,000
30,000
Sundry debtors
30,000
20,000
Cash at Bank
1,000
15,000
1,88,000
92,000
From the above information prepare the changes in working capital statement.
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Prepare the statement uses sources of fund for year ending 31st Dec. 2013.
Balance Sheet
Liabilities
2013
Rs.
2012
Rs.
Creditors
45,000
50,000
Notes Payables
35,000
20,000
Notes payables 3 years
20,000

Share Capital
1,50,000
1,25,000
Retained Income
75,000
60,000
3,25,000
2,55,000
Asset
2013
Rs.
2012
Rs.
Cash
75,000
35,000
Debtors
90,000
98,000
Stock
1,20,000
87,000
Long term Investment
10,000
15,000
Land
30,000
20,000
3,25,000
2,55,000
Other Information as follows
Increase in working capital is Rs. 55,000.
OR
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GUG/W/18/840 5 P.T.O

The following are the summarized Balance Sheets of Star Co. Ltd. On 31st March 2012 2013.
Liabilities
31-3-2012
Rs.
31-3-2013
Rs.
Shares Capital
6,00,000
8,00,000
Debentures
2,00,000
3,00,000
Profit Loss Account
1,25,000
2,50,000
Creditors
1,15,000
90,000
Provision for Depreciation
Land Building
20,000
24,000
Plant Machinery
30,000
35,000
Provision for R.B.D.D.
6,000
3,000
10,96,000
15,02,000
Asset
31-3-2012
Rs.
31-3-2013
Rs.
Plant Machinery (cost)
4,00,000
6,45,000
Land Building (cost)
3,00,000
4,00,000
Stock
3,00,000
3,50,000
Bank
20,000
40,000
Preliminary Expenses
7,000
6,000
Debtors
69,000
61,000
10,96,000
15,02,000
Additional Information
During the year a part of machinery costing Rs. 70,000 (Accumulated depreciation Rs. 2,000) was sold for Rs. 6,000.
Dividends of Rs. 50,000 were paid during the year you are required to
Changes in working capital for the year 2012 2013
Fund flow statement.
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5.
Give the short answer.
Difference between Fixed Flexible Budget?
4
Explain the Advantages of Break Even point?
4
Significance Utility of Ratio Analysis its Explain.
4
Difference between Fund Flow Statement Balance Sheet?

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