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P.T.O.
MAR IVANIOS COLLEGE (AUTONOMOUS)
THIRUVANANTHAPURAM
Reg. No. :.………………… Name :.………………….
Sixth Semester B.Com. Degree Examination, April 2018
First Degree Programme under CBCSS
Core Course: Commerce XVI
AUCO643: Management Accounting
Common for Regular 2015 and Reappearance 2014 Admn.)
Time: 3 Hours Max. Marks: 80
SECTION A
Answer ALL questions in one or two sentences.
1. Define Management Accounting.
2. What is Inter firm comparison?
3. What is a Common Size Statement?
4. What is Capital Gearing Ratio?
5. What do you mean by Average Debt Collection Period?
6. What is Fund from Operations?
7. What is Budget Manual?
8. What is ZBB?
9. What do you mean by Reporting?
10. What are Activity Ratios?
(10 1 10 Marks)
SECTION B
Answer any EIGHT questions, each in a short paragraph not exceeding 50 words.
11. What are the objectives of Management Accounting?
12. What do you mean by horizontal analysis and vertical analysis?
13. Calculate Stock Turnover Ratio from the following particulars
Opening stock Rs.
Closing Stock Rs.30.000/-
Purchases Rs.1,00,000
Wages 12000/-
14. X Ltd. has a liquid ratio of 2:1. If its stock is Rs.20000/-and its total current liabilities are Rs.50000/-. Find out its current ratio
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15. What is PE Ratio?
16. Is Depreciation a source of fund? Explain.
17. What do you mean by flow of funds?
18. What are cash flows from financing activities?
19. Differentiate between fund flow statement and cash flow statement
20. What is Performance Budgeting?
21. What are the objectives of budgeting?
22. Explain the types of function wise reports.
2 16 Marks)
SECTION C
Answer any SIX questions, each in a paragraph not exceeding 120 words.
23. Find out trend percentages from the following figures of Asian Ltd. taking 2010 as base year and interpret the results.
Year Sales Stock Profit before tax
2010 1,881 709 321
2011 2,340 781 435
2012 2,655 816 458
2013 3,021 944 527
2014 3,768 1,154 672
24. From the following data calculate Sales Closing Stock Sundry Debtors and Sundry Creditors
Gross Profit Ratio 15%
Stock velocity 6 months
Debtors velocity: 3 months
Creditors velocity: 3 months
Gross profit for the year ending 31st March, 2017 amounts to Rs.60,000/-. Closing stock is equal to opening stock
25. What are the differences between Income Statement and Funds Flow Statement?
26. From the following extracts of Balance sheets of Anchor Ltd., calculate funds from operations:
31-3-2016 31-3-2017
Balance of Profit and Loss A/c 100000 150000
Additional Information:
a. Depreciation charged on assets 10000
b. Preliminary Expenses written off 5000
c. Amount transferred to Dividend Equalization fund 15000
d. A plant having a book value of Rs.60000 was sold for 65000
e. Interim Dividend paid 10000
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27. What are the differences between Fixed and Flexible budgets?
28. Differentiate Cost Accounting from Management Accounting.
29. What are the objectives of reporting?
30. The expenses for the production of 1000 units in a factory are given below
Per Unit
Material 120
Labour 80
Variable Overhead (Factory) 20
Fixed Overhead (Factory) 16
Administrative Overhead variable) 15
Selling &Distribution Overhead variable) 12
Total Per Unit 263
You are required to prepare a budget for 1200 unit.
31. Following is the Balance Sheet of Sony Ltd. for 2016 and 2017. Prepare Cash Flow Statement.
Balance Sheet
Liabilities
31.3.2016
31.3.2017
Assets
31.3.2016
31.3.2017
Share Capital
Creditors
Retained Earnings
200000
70000
10000
250000
45000
23000
Cash
Debtors
Stock
Land
30000
120000
80000
50000
47000
115000
90000
66000
280000
318000
280000
318000
4 24 Marks)
SECTION D
Answer any TWO questions, not exceeding four pages.
32. Explain the Scope and functions of Management Accounting.
33. What do you understand by Budgetary Control? Explain the necessary steps for the successful implementation of a budgetary control system in a concern.
34. From the following details, make out the Balance Sheet with all details as possible:
1. Stock Velocity 6 times
2. Capital Turnover Ratio 2 times
3. Fixed Assets Turnover Ratio 4 times
5. Gross Profit Ratio 20%
6. Debtors Velocity 2 months
7. Creditors Velocity 73 days
The Gross Profit was Rs.60000/-. Reserves and Surpluses amounted to Rs.20000. Closing stock was Rs.5000 in excess of Opening stock.
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35. The following are the Balance Sheets of Ramsons Ltd. as on 31st March, 2016 and 2017
BALANCE SHEETS
Liabilities
2016
2017
Assets
2016
2017
Share Capital
General Reserve
Profit and Loss A/c
Bank Overdraft
Creditors
Provision for Taxation
200000
50000
30500
70000
150000
30000
250000
60000
30600

135000
35000
Land Buildings
Plant
Stock
Debtors
Cash
Bank
200000
150000
100000
80000
500

190000
174000
74000
64000
600
8000
530500
510600
530500
510600
Additional Information:
1. Depreciation on Plant was written off Rs.14000 in 2017.
2. Dividend Rs.20000 was paid during 2017.
3. Income tax provision made during the year was Rs.25000.
4. A piece of land was sold during the year at cost.
You are required to prepare a statement showing sources and applications of funds for the year 2017.
15 30 Marks)