QP Code
1
6
0
1
0
7
Register Number
VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY
(An Autonomous Institution, Affiliated to Anna University, Chennai)
Semester Examinations April May 2017
Regulations-2016
Programme:
MBA
Semester:
1
Max. Marks:
100
Duration
3 Hrs
Course Code Title:
16MST16
ACCOUNTING FOR MANAGERS
Knowledge Levels
K1 Remembering
K3 Applying
K5 Evaluating
K2 Understanding
K4 Analyzing
K6 Creating
Part A Answer ALL Questions. 10 x 2 20 Marks
No.
Question
KL
1.
Specify the Accounting Concepts.
K1
2.
Identify the meaning of Final Accounts.
K2
3.
Define Management Accounting.
K1
4.
Define Financial Accounting.
K1
5.
Summarize Inventory Turnover Ratio.
K2
6.
Indicate the meaning of Total Asset Turnover Ratio.
K2
7.
Differentiate cost unit and cost centre.
K4
8.
Write short notes on activity based costing.
K1
9.
Classify the term Budget.
K2
10.
Summarize the Objectives of Budgetary Control.
K2
Part B Answer ALL Questions. 5 x 13 65 Marks
No
Question
Marks
KL
11.
a Particulars Debit Credit Particulars Debit Credit Capital 21,42,000 Insurance Premium 39,000 Purchases Sales 13,50,000 23,10,000 Rent 60,000 Purchase return sales return 22,000 20,000 Commission 24000 Miscellaneous Expenses 44,000 Debtors Creditors 150,000 113,000 Plant Machinery 14,50,000 Cash in hand 99000 Investments 11,00,000 Discount 23,000 Stock as on 1 April 2009 1,00,000 Salary 170,000 Wages 1,34,000 Cartage 10000 Bank Overdraft 100,000 Interest 90,000 47,75,000 47,75,000
13
K4
ADJUSTMENTS:
Stock on Hands as on 31st March 2010 is Rs.1,45,000
1.Bad Debts Rs.11,000
2.Provide on sundry debtors for Bad and doubtful debts.
3.Depreciate plant Machinery per annum.
4.Rent Paid in advance is Rs.12,000
5.Salary accrued is Rs.13,000
6.Prepare Trading, Profit Loss a/c.
OR
b
Explain the parties involved in Accounting.
13
K4
12.
a
Examine the functions Scope of Management Accounting.
13
K3
OR
b
"A modern banker has more onerous responsibility to perform as compared to traditional banker". To what extent management accounting can help him in efficiently discharging this role?
13
K2
13.
a
1. Stock turnover ratio 5 times
2. Gross profit 10% on sales
3. Sales for 2011 Rs.5,40,000
4. Closing stock is Rs.15,000 more than the opening stock
5. Opening creditors Rs.30,000
6. Closing creditors Rs. 30,000
7. Trade debtors at the end Rs.80,000
8. Net working capital Rs.50,000
Find out
1. Average stock
2. Purchases
3. Creditors turnover ratio
4. Average payment period
5. Average collection period
6. Working capital turnover ratio
13
K4
OR
b
Calculate Stock Turnover Ratio Debtors Turnover Ratio
Average Collection Period Creditors Turnover ratio
Average Payment Period from the following information.
13
K4
Particulars
As on 31/03/2015
As on 31/03/2016
Stock
2,00000
2,40,000
Debtors
1,00000
1,20,000
Creditors
90,000
60,000
Sales and Purchases for the year-Rs.11,00000.
14.
a
Prepare a Cost Sheet Find out the cost of Production Costing Profit.
Direct material
Rs.90,000
Direct Wages
Rs.65,000
Direct Expenses
Rs.35,000
Factory Overheads
Rs.25,000
Administration Overheads
Rs.55,000
Selling and Distribution Overheads
Rs.20,000
The Profit for the Company is estimated as 20% on cost of sales.
13
K4
OR
b
Explain the elements of cost.
13
K1
15.
a
The expenses for the production of 5000 units in a factory are given as follows
Mate
Materialsrials
50
50
Administrative expenses
Administrative expenses variable)( variable)
10
10
Labour
Labour
20
20
Selling expenses
Selling expenses fixed) fixed)
6
6
Variable overheads
Variable overheads
15
15
Distribution expenses
Distribution expenses fixed) fixed)
5
5
Fixed overheads
Fixed overheads (Rs.50,000) (Rs.50,000)
10
10
Total cost of sales per unit
Total cost of sales per unit
Rs.116
Rs.116
You are required to prepare budget for the production of 7000 units
13
K4
OR
b
Calculate 1. P/V Ratio 2. BEP 3. Number of units that must be sold to earn a profit of Rs.60,000 per year.
Particulars
Rs
Sales Price
20 Per Unit
Variable Cost
14 Per Unit
Fixed Cost
79,200
13
K4
Part-C 1 x 15 15 Marks
16
a
Following balances are extracted from the books of M/S Durga and Co on 31 Dec 2012.
Particulars
Rs
Particulars
Rs
Stock on 1st Jan
1000
Discount
400
B/R
4500
Return outwards
500
Purchases
39000
Trade expenses
200
Wages
2800
Office expenses
1000
Insurance
1100
Cash in Hand
500
Sundry Debtors
30000
Cash at bank
4750
Carriage Inward
800
Rent and Taxes
1100
Commission
800
Carriage Outward
1450
Interest on Capital
700
Sales
50000
Stationery
450
Bills Payable
3000
Return Inwards
1300
Creditors
19650
Capital
17900
i. Prepare Trading and Profit and Loss account.
ii. Prepare Balance sheet for the above ledger balances.
8
7
K4
K4
OR
b
i.
ii.
ABC Ltd provides the following information.
2016
Sales(Rs)
Purchases(Rs)
Wages(Rs)
February
180000
124800
12000
March
192000
144000
14000
April
108000
243000
11000
May
174000
246000
10000
June
126000
268000
15000
50% of sales are realized in the same month and the balance will be realized in the following month. Creditors and wages are paid in the following month. The cash balance as on 01.04.2016 was Rs.25000.
Design the cash budget for the month of April-June 2016.
Assess the utilization of cash budget for April-June 2016.
12
3
K6
K5