DISTANCE EDUCATION
B.B.A. (Banking)/B.B.A. (Banking) Lateral DEGREE
EXAMINATION, MAY 2017.
MANAGEMENT ACCOUNTING
(2005 Onwards)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
1. What are the functions of management accounting?
2. State the classification of budgets.
3. Examine the need for capital budgeting.
4. State the limitations of Break even analysis.
5. Distinguish between cash flow and fund flow analysis.
6. State the general principles of reporting.
7. Prepare a schedule of changes in working capital from
the balance sheets given below
Liabilities 31.12.00 31.12.01 Assets 31.12.00 31.12.01
Share capital 3,00,000 3,75,000 Machinery 70,000 1,00,000
Creditors 1,06,000 70,000 Stock 1,21,000 1,36,000
P and L a/c 14,000 31,000 Debtors 1,81,000 1,70,000
Cash 48,000 70,000
4,20,000 4,76,000 4,20,000 4,76,000
You are required to prepare statement of changes in
working capital.
8. A project requires investment of Rs. 10,00,000 and has an
expected life of 5 years. It is estimated to yield
Rs. 3,00,000 p.a before depreciation and tax (Tax rate is
Ascertain pay back period.
Sub. Code
33
DE-168
2
Sp 1
SECTION B — × 15 60 marks)
Answer any FOUR questions.
9. Distinguish between financial accounting and
management accounting.
10. State the essentials of effective budgeting.
11. You are required to calculate the following.
Working capital turnover
Foxed assets turnover
Capital turnover
The information available is as under:
Capital employed Rs. 4,00,000
Current assets: Rs. 2,00,000
Current liabilities: Rs. 40,000
Net fixed Assets: Rs. 2,50,000 sales: Rs. 5,00,000
Cost of sales: Rs. 4,00,000.
12. Jane and Co proposes to take up a project which needs an
investment of Rs. 2,40,000. The net income before
depreciation and tax is estimated as follows for the
ensuing 5 years.
Year Income
1 60,000
2 72,000
3 84,000
4 96,000
5 1,20,000
Income tax rate may be assumed as 50% and depreciation
is to be provided on straight line basis.
Calculate the accounting rate of return.
DE-168
3
Sp 1
13. State the classification of different management reports.
14. The sales turnover and net profit during two years were
as follows:
Year Sales Profit
1999 1,50,000 20,000
2000 1,70,000 25,000
You are required to calculate
P/V ratio
BEP
Sales required to earn a profit of Rs. 40,000
Profit when sales are Rs. 2,50,000
15. Prepare cash flow statement from the following
information:
Liabilities 2004 2005 Assets 2004 2005
Share capital 1,00,000 1,50,000 Fixed
Assets
1,00,000 1,50,000
P L a/c 50,000 80,000 Good
will
50,000 40,000
General
reserve
30,000 40,000 Stock 50,000 80,000
Debentures 50,000 60,000 Debtors 50,000 80,000
Creditors 30,000 40,000 B/R 10,000 20,000
Outstanding
expenses
10,000 15,000 Bank 10,000 15,000
2,70,000 3,85,000 2,70,000 3,85,000