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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
M.COM.DEGREE EXAMINATION COMMERCE
THIRD SEMESTER APRIL-2018
C 911/C 916 MANAGEMENT ACCOUNTING
Date: 08-05-2018 Dept. No. Max. 100 Marks
Time: 9:00 12:00
Section A Answer all questions:- 10 x 2 20
1. Mention the scope of Management Accounting.
2. What do you mean by Management Information System?
3. Why do we prepare Fund Flow Statement?
4. Give meaning of Working Capital.
5. Give the formula of Current Ratio.
6. What is Ratio Analysis?
7. Mention the application of marginal costing.
8. Illustrate the Break- Even Point.
9. How is budget prepared?
10. What is the need to prepare Variance Analysis?
Section B Answer any FIVE questions:- 8 x 5 40
11. Discuss the uses of Fund Flow Statements.
12. Explain the advantages of disadvantages of Management Accounting.
13. Distinguish between Standard Costing and Budgeting
14. Discuss the application of Marginal Costing in decision making.
15. The standard material and standard cost per kg. of material required for the production of
One unit of product A is as follows:
Material 5 Kgs. Standard Price Rs.5 per kg.
The actual production and related material data are as follows:
400 units of Product A
Material used 2,200 kgs.
Price of Material Rs.4.50 per kg.
Calculate Material Cost Variance Material Usage Variance
Material Price Variance
16. From the following details, calculate funds from operations:
Particulars
Rs.
Particulars
Rs.
Salaries
Rent
Refund of tax
Profit on sale of building
Depreciation on plant
Loss on sale of plant
Closing balance of P& L A/c
Opening balance of P L A/c
10,000
2,000
10,000
1,000
7,000
3,000
40,000
15,000
Discount on issue of debentures
Provision for bad debts
Transfer to general reserve
Preliminary expenses written off
Goodwill written off
Proposed dividend
Dividend received
Provision for tax
1,000
2,000
4,000
5,000
4,000
5,000
2,000
5,000
17. Assuming that the cost structure and selling prices remain the same in periods I and II find out P V ratio . B. E. Sales .(iii) Profit when sakes are Rs. 1,00,000 Sales required to earn a profit of Rs. 20,000 .(vi)Margin of safety in Iind period
Period Sales Profit(Rs.)
I 1,20,000 9,000
II 1,40,000 13,000
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18. From the following particulars pertaining to assets and liabilities of a company calculate
Current ratio Liquid ratio Proprietory ratio Debt-Equity ratio Capital Gearing
ratio.
Rs.
Assets
Rs.
5,000 Equity shares of
Rs. 100 each
2,000 Preference
shares of Rs. 100 each
4,000 Debentures
of Rs. 100 each
Reserves
Creditors
Bank overdraft
5,00,000
2,00,000
4,00,000
3,00,000
1,50,000
50,000 16,00,000
Land and Building
Plant and Machinery
Stock
Debtors
Cash and bank
Pre-paid expenses
6,00,000
5,00,000
2,40,000
2,00,000
55,000
5,000
16,00,000
Section C Answer any TWO questions:- 2 x 20 40
19. From the particulars given below prepare a Cash Budget for the month June 1999:
a. Expected sales:
April 99 Rs.2,00,000; May Rs.2,20,000;
June Rs.1,90,000.
Credit allowed to customers is two months and 50% of the sales of every month is on cash basis.
b. Estimated purchses:
May 99 Rs.1,20,000; June 1,10,000
40% of the purchase of every month is on cash basis and the balance is
payable next month.
c. Rs.2,000 is payable as rent every month.
d. Time lag in payment of overhead is ½ month.
Overhead For May Rs.12,000; For June Rs.11,000
e. Depreciation for the year is Rs.12,000.
f. Interest receivable on investment during June and Dec. Rs. 3,000 each.
g. Tax payable during April 99 Rs.10,000.
h. Estimated Cash Balance as on 1-6-99 is Rs.42,500.
20. .From the following information, prepare a Balance Sheet. Show the Workings.
1. Working capital Rs.75,000
2. Reserves and surplus 1,00,000
3. Bank overdraft 60,000
4. Current ratio 1.75
5. Liquid ratio 1.15
6. Fixed assets to proprietors' funds 0.75
7. Long term liabilities Nil
21. Following information has been made available from the cost records of United Automobiles
Ltd. Manufacturing spare parts.
Direct Materials Per Unit
X Rs. 8
Y 6
Direct Wages
3
X 24 hours at 25 paise per hour
Y 16 hours at 25 paise per hour
Variable overheads 150% of wages
Fixed overheads Rs. 750
Selling price
X Rs. 25
Y 20
The directors want to be acquainted with the desirability of adopting any
one of the following alternative sales mixes in the budget for the next period.
250 units of X and 250 units of Y 400 units of Y only. 400 units of X
and 100 units of Y 150 units of X and 350 units of Y.
State which of the alternative sales mixes you would recommend to the management?
15. 22. From the following the Balance sheet prepare a Fund Flow Statement for 2015.
Balance Sheets of Sree Ganesh Ltd., as on 31st March
Liabilities
2014
2015
Assets
2014((Rs.)
2015(Rs.)
Share capital
Reserves
Profit and Loss account
Debentures
Creditors for goods
Provision for Income tax
6,00,000
50,000
40,000
3,00,000
1,70,000
60,000
6,00,000
1,80,000
65,000
2,50,000
1,60,000
80,000
Fixed Assets
Less Depreciation
Stock
Book debts
Cash in hand and at Bank
Preliminary Expenses
10,00,000
3,70,000
6,30,000
2,40,000
2,50,000
80,000
20,000
11,20,000
4,60,000
6,60,000
3,70,000
2,30,000
60,000
15,000
12,20,000
13,35,000
12,20,000
13,35,000