JAYA COLLEGE OF ARTS AND SCIENCE

DEPARTMENT OF MANAGEMENT STUDIES AND COMMERCE

MODEL I
Class: I MBA Date:
Subject: Accounting for Managers Max Marks: 075
Sub code: PMD1D Time: 3 Hours
PART A
Answer any ten questions: - (10 x 1 = 10 marks)

1. Define accounting.
2. Define historical costing.
3. What do you mean by management accounting?
4. Define non – current accounts.
5. Write short notes on Funds flow statement.
6. Write short notes on Cost accounting
7. Define profit and loss account.
8. Define trail balance
9. Define current ratio
10.Write short notes on Ratio analysis
11.Write short notes on Process costing
12.Write short notes on Balance sheet
PART B
Answer any five questions: - (5 x 5 = 10 marks)

13. How do management accounting and financial accounting differ? Explain.

14. Bring out the difference between cash-flow and fund-flow statement.
15. Explain the importance of management accounting as a tool of management decision
making.
16. Prepare trading account, profit and loss account and balance sheet
Trail balance as on 31st march 2016
Debit balance Rupees Credit balance Rupees
Drawings 4,000 Capital 20,000
Cash at bank 1,700 Sales 16,000
Cash in hand 6,500 Sundry creditor 4,500
Wages 1,000
Purchases 2,000
Opening stock 6,000
Building 10,000
Sundry debtors 4,400
Bills receivables 2,900
Rent 450
Commission 250
General expenses 800
Furniture 500
The following adjustments are to be made: Closing stock 4,000,Interest on capital 6% and interest
on drawing 5%,Wages yet to be paid 100,Rent prepaid 50
 17. Following is the profit and loss a/c of a company

Particular Rupees Particular Rupees

To opening stock 1,00,000 By sales 5,60,000
To purchases 3,50,000 By closing stock 1,00,000
To wages 9,000
To gross profit b/f 2,01,000
6,60,000 6,60,000
To administration expenses 20,000 By gross profit b/d 2,01,000
To selling and distribution exp 89,000 By interest on investment 10,000
To non- operating exp 30,000 By profit on sale of investment 8,000
To net profit 80,000
2,19,000 2,19,000
Calculate

a.Gross profit ratio b.Net profit ratio c.Operating ratio d.Operating profit ratio

18. Define accounting. State the accounting rules.

19. You are required to compile a statement showing cost and profit from the information
given, showing clearly: (a) material consumed (b) prime cost (c) work cost (d) cost of
production (e) cost of sales (f) profit (g) sales

Material purchased 2,00,000

Wages 1,00,000
Direct expenses 20,000
Opening stock of material 40,000
Closing stock of materials 60,000
Factory overhead is absorbed at 20% on wages. Administration overhead is 25% on the
works cost. Selling and distribution overhead are 20% on the cost of production. Profit is
20% on sales.

PART C

Answer any four questions: - (Q.No 20th compulsory) (10 x 4 = 40 marks)

20. The following is the comparative balance sheet of p&co ltd as on 31st march 2014
st
and 31 march 2015

Liabilities 31-3-2014 31-3-2015 Asset 31-3-2014 31-3-2015

Share capital 1,80,000 2,00,000 Goodwill 24,000 20,000
Reserve fund 28,000 36,000 Building 80,000 72,000
P & L A/C 39,000 24,000 Machinery 74,000 72,000
Trade Investments 20,000 22,000
creditors
Bank 12,400 2,600 Inventories 60,000 50,800
overdraft
Provision for 32,000 34,000 Debtors 40,000 44,400
taxation
 Provision for 3,800 4,200 Cash 13,200 30,400
doubtful
debts
3,11,200 3,11,600 3,11,200 3,11,600

Additional information

a) Depreciation charged on machinery Rs.10,000 and on building Rs. 8,000

b) Investment sold during the year 3,000
c) Rs. 15,000 interim dividend paid during January 2015
d) Taxes paid during the year Rs. 30,000
21. From the following information, prepare process cost accounts and normal loss
abnormal loss or gain account.
Process A Process B
Material 30,000 3,000
Labour 10,000 12,000
Overheads 7,000 8,600
Input (units) 20,000 17,500
Normal loss 10% 4%
Sale of waste per unit (Rs) 1 2
Final output from process B (Units) - 17000

22. Give an account in detail about the element of cost and pricing.

23. Management accounting is the best tool for the management to achieve higher profits and
efficient operations”- discuss.

24. Prepare cash flow statement

Liabilities 31-6-2014 31-6-2015 Asset 31-6-2014 31-6-2015

Share capital 20,000 20,000 Goodwill 2,400 2,400
Reserve fund 2,800 3,600 Land 8,000 7,200
P & L A/C 3,200 2,600 Building 7,400 7,200
Sundry 1,600 1,080 Investments 2,000 2,200
creditors
Outstanding 240 160 Inventories 6,000 4,680
expenses
Provision for 3,200 3,600 Bills 4,000 4,440
tax receivables
Provision for 80 120 Bank balance 1,320 3,040
bad debts
31,120 31,160 31,120 31,160
Additional information

a) Land has also been sold for 800

b) Depreciation amounting to 1,400 has been charged on building
c) Provision for taxation has been made Rs 3,800 during the year.