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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI 600 034
B.Com.DEGREE EXAMINATION -COMMERCE
SIXTH SEMESTER APRIL 2018
CO 6605- MANAGEMENT ACCOUNTS
Date: 19-04-2018 Dept. No. Max. 100 Marks
Time: 01:00-04:00
PART
ANSWER ALL QUESTIONS: 10 X 20 Marks
1. What do you mean by management accounting?
2. What is Zero based Budget?
3. Define budgetary control.
4. What is Return on Investment ratio?
5. Define fund flow statement.
6. From the following details of a business concern calculate net profit ratio.
Sales Rs.3,50,000
Cost of goods sold Rs.1,50,000
Administration Expenses Rs. 50,000
Selling Expenses Rs.10,000
7. Compute the payout ratio from the data provided by equipment Leasing company Ltd.,
Net profit Rs.80,000
Provision for tax Rs.40,000
Preference dividend Rs.10,000
No.of equity shares 30,000
Dividend per equity shares 0.45
8. From the following data calculate:
a). P/V ratio and b). Variable cost
Sales Rs.80,00
Fixed expenses Rs.15,000
Break evenpoint Rs.50,000
9. What do you mean by direct material cost variance?
10. Write a short note on direct labourIdle time variance?
PART
ANSWER ANY FOUR QUESTIONS: 4 X 10= 40 Marks
11. Distinguish between Management Accounting and Financial Accounting.
12. Distinguish between Standard Costing and Budgetary Control.
13. Describe the various advantages of ratio analysis.
14.). From the following Balancing Sheets, prepare a statement showing flow of funds.
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Balance sheet
Liabilities
31-12-01
Rs.
31-12-02
Rs.
Assets
31-12-01
Rs.
31-12-02
Rs.
Share Capital
2,00,000
2,50,000
Land
50,000
66,000
Retained earnings
10,000
23,000
Stock
80,000
90,000
Creditors
70,000
45,000
Debtors
1,20,000
1,15,000
Cash
30,000
47,000
2,80,000
3,18,000
2,80,000
3,18,000
15. Calculate short term solvency and long term solvency of the company and comment on it.
Balance Sheet of Raj Kumar, as on 31-12 -2008
Liabilities
Rs.
Assets
Rs.
Equity Share Capital
2,00,000
Good will
1,20,000
Reserves
40,000
Fixed Assets
2,80,000
Profit Loss A/c
60,000
Stock
80,000
Secured Loans
1,60,000
Debtors
40,000
Creditors
1,00,000
Bills Receivable
20,000
Provision for Tax
40,000
Cash
60,000
Total
6,00,000
6,00,000
16.A company manufacture two products A and B A forecast for the number of units to be sold in the first four months of the year is given below:
Months
Product A
Product B
January
February
March
April
3,000
3,400
4,200
5,000
6,000
6,000
5,200
4,400
It is anticipated that There will no work -in progress at the end of any month and Finished units equal to half the sales for the next month will be in stock at the end of each month (including previous December). Prepare for the three months endings March 31, a production budget for each month.
17. From the following data, Calculate labor variances:
Budgeted labour for completing job
8 skilled workers at Rs.10 per hour for 20 hours
12 unskilled workers at Rs.8 per hour for 20 hours
Actual labour for competing job
12 Skilled workers at Rs.11 per hour for 20 hours
13 unskilled workers at Rs.7 per hour for 20 hours.
PART
3
ANSWER ANY TWO QUESTIONS: 2 X 20= 40 Marks
18) The following are the summarized balance sheets of XYZ Ltd., as on 31st December 1998 and 1999.
Balance Sheet
Liabilities
Rs.
1998
Rs.
1999
Assets
Rs.
1998
Rs.
1999
Capital:
Redeeemablepref.shares
Equity shares
General reserve
Profit and loss account
Debentures
Current liabilities:
Creditors
Provision for taxation
Proposed dividend
Bank overdraft

40,000
2,000
1,000
6,000
12,000
3,000
5,000
12,500
10,000
40,000
2,000
1,200
7,000
11,000
4,200
5,800
6,800
Fixed assets
Less: Depreciation
Debtors
Stock
Prepaid expenses
Cash
41,000
11,000
30,000
20,000
30,000
300
1,200
40,000
15,000
25,000
24,000
35,000
500
3,500
81,500
88,000
81,500
88,000
You are required to prepare:
i). a statement showing changes in the working capital
ii). a statement of sources and application funds.
19) The standard material inputs required for 1000 kg of a finished product are given below
Material
Quantity
Standard rate per kg
(inRs.)
P
450
10
Q
400
20
R
250
30
1100
Standard loss
100
Standard output
1000
Actual production in a period was 20000 kgs of the finished product for which actual quantities of material used and the prices paid thereof are as under:
Material
Quantity used
Purchase price per kg
P
10000
9.50
Q
8500
21.00
R
4500
32.50
Calculate the
i). Material cost variance ii).Material price variance iii) Material usage variance
iv)Material mix variance Material yield variance
20) The following particulars are taken from the records of a company engaged in manufacturing
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Particulars
Product X
Rs. per unit
Product Y
Rs. per unit
Sales
125
250
Material Cost 9Rs.2.5 per k.g)
25
62.50
Wages Rs.15 per hour)
37.50
75
Variable overhead
12.50
25
Total fixed overhead Rs.50,000
Comment in the profitability if each product when:
Total availability f raw material is 20,000 kgs and maximum sales potential of each product is 1000 units. Find the product mix to yield maximum profit. Determine the maximum profit.
Total sales in value is limited
Labour time is limited
Production capacity in units is a key factor.
21) With the help of the following ratios regarding J Ltd draw the Balance Sheet of the company for the year 2015:
Current ratio 2.5
Liquidity ratio 1.5
Net working capital Rs.3,00,000
Stock turnover ratio (Cost of sales/closing stock) 6 times
Gross profit ratio 20%
Debt collection period 2 months
Fixed assets turnover ratio on cost of sales) 2 months
Fixed assets to shareholders net worth 0.80
Reserves and surplus to capital 0.50