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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
U.G. DEGREE EXAMINATION MATHEMATICS,STATISTICS, ECONOMICS
THIRDSEMESTER APRIL 2018
CO 3204- ACCOUNTING FOR MANAGERS
Date: 04-05-2018 Dept. No. Max. 100 Marks
Time: 01:00-04:00
Part A
Answer All questions (10x2= 20 Marks)
1. What is financial Accounting?
2. Write a short note on 'FactoryCost'.
3. What is cost sheet?
4. State the meaning of Trial Balance.
5. Explain the term 'Budget'.
6. What is NetProfit?
7. List any two advantages of Marginal costing.
8. Calculate the Gross profit from the following figures:

Sales 1,00,000
Purchases 60,000
Sales returns 10,000
Purchase returns 15,000
Opening Stock 20,000
Closing Stock 5,000
9. Ascertain Contribution: Sales Rs. 12, 00,000; P/V ratio 35%.
10. Calculate average collection period from the following:
Rs.
Credit sales for the year 30,000
Debtors 2,500
Bills receivable 3,000
Part B
Answer any FOUR questions. (4x10= 40 Marks)
11. Discuss the advantages and Limitations of management accounting.
12. Explain the different kinds of budget.
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13. Prepare a material budget from the following information. Requirement for 100 units of production:
Material
Rate per kg
Product
Product
A
B
C
Rs. 40
Rs.30
Rs.20
20kg
10kg
40kg
40kg
10kg
30kg
Production X 4,000 units
Production 1,000 units
14. Journalize the following transactions.
a. Purchased goods for cash Rs.10,000
b. Sold goods to Richa for cash Rs.3,000
c. Received commission Rs.200
d. Paid advertisement Rs.300
e. Cash received from Jack Rs.5,000
15. From the Following information, Calculate Contribution, P/V ratio, Beak-even point, Number of units that must be sold to earn a profit of Rs.60,000 per year and Number of units that must be sold to earn a net income of 10% on sales.
Sales price Rs.20 per unit.
Variable cost Rs. 14 per unit
Fixed cost Rs.79,200
16. Prepare Trial Balance from the following
Rs.
Capital 9,000
Plant 12,000
Purchases 8,000
Sales 12,000
Creditors 8,000
Bank Loan 22,000
Rent outstanding 1,000
Opening stock 2,000
Sales return 4,000
Investment 14,000
Debtors 12,000
17. The balance sheet of XYZ ltd as on 21.12.2015 is as follows.
balance Sheet
liabilities
Rs.
Assets
Rs.
Equity capital
Preference share capital
Debentures
Profit loss A/c
Creditors
2,00,000
1,00,000
1,00,000
40,000
90,000
Fixed assets
Stock
Debtors
Bank
Bills receivables
3,60,000
50,000
1,10,000
6,000
4,000
5,30,000
5,30,000
Calculate Debt equity ratio
Current ratio.
Liquidity ratio
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Part C
Answer any TWO questions x 20 =40 Marks)
18. Describe the various concepts and conventions of accounting
19. From the data, calculate
Gross profit ratio
Net profit ratio
Return on total assets
Inventory turnover ratio
Working capital turnover ratio
Net worth of debt ratio Rs.
Sales
Cost of sales
Net profit
Inventory
Other current assets
Fixed assets
Net worth
Debt
Current liabilities
25,20,000
19,20,000
3,60,000
8,00,000
7,60,000
14,40,000
15,00,000
9,00,000
6,00,000
20. From the following trial balance of XYZ as on 31st December 2015. Prepare the Trading and P&L A/c and balance sheet taking into account the adjustment
Particular
Debit
Rs
Credit
Rs
Stock 1-1-2005
2,450

Sundry debtors
7,580

Purchase
11,870

Return inwards
450

Bank deposit
2,750

Rent
360

Salaries
850

Travelling expenses
300

Drawings
600

Cash
210

Discount allowed
40
Capital

8,000
Sales

14,690
Bad debts recovered
250
Return outwards
350
Sundry creditors

1,250
Bank overdraft
1,570
Bills payable
1,350
Total
27,460
27,460
Adjustment
1. Stock on 31-12-2015 was Rs. 4,200
2. Write off Rs. 80 as bad debts and create a reserve for bad debts at on sundry debtors.
3. Three months' rent is outstanding
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21. Nirma Moti Company wishes to arrange O.D facilities with its bankers during the period April -June, when it will be manufacturing mostly for stock.
Months
Sales
Rs.
Purchases
Rs.
Wages
Rs.
February
March
April
May
June
1,80,000
1,92,000
1,08,000
1,74,000
1,26,000
1,24,800
1,44,000
2,43,000
2,46,000
2,68,000
12,000
14,000
11,000
10,000
15,000
50% of credit sales is realized in the month following the sale and the other 50% in the second month following. Creditors are paid in the month following the month of purchase.
ii) Wages are paid at the end of the respective month.
iii) Cash at bank 1st April Rs. 25,000.