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C 315

*C315*

g.
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III Year B.Com. Degree Examination, April/May 2012

(SIM Scheme)
MANAGEMENT ACCOUNTING
Time : 3 Hours

Max. Marks : 90

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PART A

Answer any three questions. Each question carries 15 marks.

(315=45)

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1. Prepare a Funds Flow Statement from the following particulars.

2010 (`)

2011(`)

9,000

15,000

27,000

25,000

40,000

35,000

5,000

73,000

44,750

5,000

1,49,000

1,29,750

Trade Creditors

29,000

31,000

Short Term Liabilities

15,000

16,500

8,000

7,500

Mortgages

15,000

10,000

Share Capital

65,000

50,000

Retained Earnings

17,000

14,750

1,49,000

1,29,750

Debtors
Stock

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Investments

Cash

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Assets :

Fixed Assets
Goodwill

Liabilities :

Accrued Expenses

Additional Information :
a) Depreciation provided during the year 2011 amounted to ` 1,750.
b) Goodwill was written off out of retained profits.
c) Dividend paid during the year amounted to ` 3,500.
P.T.O.

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C 315

*C315*

-2-

2. The following information is obtained from the records of Akash Ltd :

Sales

2,00,000

Variable costs

1,00,000

Fixed costs

60,000

Find out :

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a) P/V Ratio

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b) B.E.P.

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c) Margin of safety

d) BEP and margin of safety if fixed costs decrease by 20%

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e) BEP and margin of safety if variable costs increase by 10%.

3. For production of 10,000 Electrical Automatic Irons, the budget expenses are :
Per Unit

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Raw Materials

120
60

Variable overheads

50

Fixed overheads (` 3,00,000)

30

Direct Expenses

10

Selling Expenses (10% fixed)

30

Direct labour

Administrative Expenses (` 1,00,000 fixed for all levels of

production)

10

Distribution Expenses (20% fixed)

10
Total Cost

320

Prepare a budget for production of 6,000, 7,000 and 8,000 irons.

4. What is Cash Flow Statement ? How it is prepared ?

5. Explain the significance of ratio analysis in the interpretation of Financial
Statements.

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*C315*

C 315

-3-

PART B

6. Balance Sheet of a Company are given below :

`

35,000

37,000

Debentures

6,000

3,000

Creditors

5,180

5,920

Prov. for Bad Debts

350

400

Profit and Loss A/c

5,020

Share Capital

2010

2011

4,500

3,900

7,450

8,850

Stocks

24,600

21,350

Land

10,000

15,000

5,000

2,500

51,550

51,600

Cash

Book Debts

5,280

Goodwill

51,600

51,550

Assets

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2011

ib

2010

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Liabilities

(310=30)

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Answer any three questions. Each question carries 10 marks.

Additional Information available are :

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a) Dividend paid amounted to ` 1,750.

b) Land was purchased for ` 5,000.

You are required to prepare a Cash Flow Statement.

7. The Standard cost card for a product shows as under :
Material Cost 2 kg @ ` 2.50 = ` 5 per unit

Wages 2 hours @ ` 10 = ` 20 per unit

The actuals are as under :

Production 8000 units

Materials consumed 16500 kg @ ` 2.40 = ` 39,600

Wages paid for 18000 hours @ ` 8 = ` 1,44,000
Calculate appropriate material and labour variances.

8. Discuss the assumptions and uses of Break-even analysis.

9. Define Budget and Budgetary control. State the advantages of Budgetary control.
10. Define Marginal Costing. Discuss its usefulness and limitations.

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C 315

*C315*

-4-

PART C

11. Variable cost per unit is

` 10.

Selling price per unit is

` 20

Fixed Costs are

` 1,00,000

(35=15)

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Answer any three questions. Each question carries 5 marks.

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If the BEP is to be 8000 units, what should be the selling price ?

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12. State any five differences between Management Accounting and Financial
Accounting.

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13. Mention any five sources of Cash Inflow.

Increase in Stock

` 2,40,000

` 1,40,000

14. Net profit for the year

` 7,500

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Increase in Bills Receivable

Increase in Sundry Creditors

` 80,000

Decrease in Debtors

` 45,000

Calculate cash from operations.

15. Write a note on Managerial Reporting.

Pv B
W G

W W E. W 15 APW.

1.

(315=45)

D PX W a qr .
BW :

2010 (`)

2011(`)

9,000

15,000

M~W

27,000

25,000

40,000

35,000

5,000

wPW

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*C315*

C 315

-5-

73,000

44,750

5,000

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1,49,000

1,29,750

29,000

31,000

A gW

15,000

16,500

8,000

7,500

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gW :

vP acW

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ac :
a) 2011

10,000

65,000

50,000

17,000

14,750

1,49,000

1,29,750

JX P ` 1,750.

b)

Pwor WP PwWX.

c)

D ` 3,500.

D PX W BP SW vX :
`

2,00,000

W ac

1,00,000

15,000

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Pwor WPW

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2.

BW

ac

60,000

Pvw :
a)

&o |

b)

af

c)

d)

acW . 20 r PwW af A

e)

W ac . 10 r acW af W A .

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C 315

*C315*

-6-

3. 10,000 a C qW
r
E
Ag :

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pW
`

Pac X

120

60

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W acW

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acW (` 3,00,000)
o acW (. 10 r )

30
10
30

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acW

50

10

O acW (. 20 r )

10

BvP acW (G or EW ` 1,00,000 )

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Jor ac

320

6,000, 7,000 8,000 C qrW EW Ag qr .

4.

W a qr G ? A W wW ?

5.

|P qrW AO | O S .

W W E. W 10 APW.
J P Ay W D PW vX.

6.

(310=30)

gW

2010

2011

35,000

37,000

6,000

5,180

BW

2010

2011

4,500

3,900

3,000

M~W

7,450

8,850

5,920

24,600

21,350

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350

400

5,020

5,280

51,550

51,600

10,000

5,000
51,550

ac :
a)

w ` 1,750.

7.

51,600

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W a qr w.

2,500

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b) ` 5,000 W SX.

15,000

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Pv PR
r T

C 315

-7-

*C315*

J r ac D PX W .

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X ac 2 kg @ ` 2.50 = ` 5 pW
D PX :

P 2 WpW @ ` 10 = ` 20 pW

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E 8000 pW

XW P 16500 kg @ ` 2.40 = ` 39,600

P w 18000 WpWW @ ` 8 = ` 1,44,000
X P P W PR Q.
af O WPW EWW ab.

8.

Ag Ag | T. Ag |
APW .

9.

Ab ac T. A EP APW ab.

10.

WW E. W 5 APW.

11.

(35=15)

pW W ac

` 10

p o

` 20

acW

` 1,00,000

af 8000 pWWWP, o GrP ?

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C 315

*C315*

-8-

PR W |P PRW v I W .

13.

W J W I W .

14.

` 2,40,000

Q ac

` 1,40,000
` 7,500
` 80,000

M~W C

` 45,000

PaO W PR Q.

ik

WY q~ .

15.

ib

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W ac

g.
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P wW ac

12.

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_______________

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