Veer Narmad South Gujarat University 2010-3rd Sem B.B.A Management Accounting, , - - Question Paper
Second Year B. B. A. (Sem. Ill) Examination
April/May - 2010
Management Accounting
RB-1723
Time : 3 Hours]
Instructions :
[Total Marks : 70
N Seat No.:
6silq<3i Puunkiufl SnwiA u* qsq <KH=fl. Fillup strictly the details of signs on your answer book.
Name of the Examination :
S. Y. B. B. A. (Sem. 3)
Name of the Subject:
Management Accounting
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-Subject Code No.: |
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-Section No. (1,2......): Nil |
(2) Question No. 1 and 6 are compulsory.
Student's Signature
(3) Figures to the right indicate full marks.
(4) Show necessary calculations as part of your answer.
1 (a) The P/V Ratio of company is 50% and the margin of 3 safety is 40%. Fid out the break-even point and net profit if the sales volume is Rs. 50,00,000.
(b) A company has capital of Rs. 10,00,000, its turnover is 3 3 times the capital and the margin on sales is 6%. What
is the return on investment?
(d) Explain EBIT. 2
2 Prepare a statement showing "sources and application of 10 funds" after taking into account the balance sheets and additional information given below. All the calculations done by you are to be shown as part of your answer :
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Additional Information : |
(i) Depreciation written off : Land and Buildings Rs. 9,000
Machinery Rs, 13,000, Patents Rs. 5,000, Furniture and Fixtures Rs. 1,500
(ii) During the year machinery of Rs. 20,000 was sold at Rs. 15,000
(iii) During the year taxes and dividend paid were Rs. 10,000 and 20,000 respectively.
OR
2 What are the various steps involved in responsibility 10
accounting? Discuss its significance to the organization.
3 The following is the balance sheet of Prem Ltd. as on 10
31.3.2009. Rearrange it in a form suitable for analysis and calculate the following ratios (360 days to be taken for the year).
(i) Net Profit Ratio
(ii) Current Ratio
(iii) Proprietary Ratio
(iv) Debtors Ratio
(v) Working Capital turnover.
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Balance Sheet as on 31.3.2009 | ||||||||||
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Sales - 2,00,000,Net Profits Rs. 40,000 |
OR
3 Amar Ltd. will start business on 1st January 2007 when it 10 will issue 52,000 equity shares of Rs. 10 each at a premium of 30% payable in cash to finance :
(a) Capital expenditure on 1.1.2009 Rs. 5,00,000 on 31.3.2009 Rs. 1,01,000 by cash payments.
(b) Working capital for first six month on the basis of :
(i) Sales (Gross profit being 25% of sales) will be for January and February Rs. 60,000 p.m. March Rs. 80,000, April Rs. 1,00,000 May to July Rs. 40,000 p.m.
Collection to be made on the last date of the month after that in which goods were sold. Commission at 5% is payable on collections.
(ii) On the first date of each month there should be stock to supply all sales of the following month only. Payments to be made on the last date of the month after that in which goods were purchased.
(iii) Salaries and other fixed expenses :
January to March.............................Rs. 3,000 p.m.
April to June.....................................Rs. 5,000 p.m.
These are payable on the last date of the month.
Prepare month wise cash budgets for 6 months ending June, 2009.
4 The budgeted output of a factory specialising in the 10
production of a single product at the optimum capacity of 6,400 units per annum amounts to Rs. 1,76,048 as detailed below :
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Rs. |
Rs. | |
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Fixed Costs |
20,688 | |
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Variable Costs : | ||
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Power |
1,440 | |
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Repairs etc. |
1,700 | |
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Miscellaneous |
540 | |
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Direct Material |
49,280 | |
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Direct labour |
1,02,400 |
1,55,360 |
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Total Cost |
1,76,048 |
The company decides to have a flexible budget with a production target of 3,200 and 4,800 units (the actual quantity proposed to be produced being left to a later date before commencement of the budget period).
Prepare a flexible budget for production levels of 50% and 75%.
Assuming, selling price per unit is maintained at Rs. 40 as at present, indicate the effect on net profit.
Administration, selling and distribution expenses at Rs. 3,600.
OR
4 A company manufacturing a single article sells it at 10
Rs 10 per unit. The variable cost is Rs. 6 per unit and fixed cost is Rs. 4,000 per annum. Calculate :
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(i) |
The PA/ Ratio | |
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(ii) |
the break-even sales | |
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(iii) |
The margin of safety if total sales are |
Rs. 15,000 |
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(iv) |
The sales required to earn a profit of Rs. 5,000 | |
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(v) |
The amount of profit when sale is Rs. |
15,000 |
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Write short notes on : (any three) | ||
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(i) |
Role of Management Accounting | |
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(ii) |
Types of Budget | |
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(iii) |
Profitability ratios | |
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(iv) |
Common Size Statements | |
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(v) |
Limitations of Financial Statements. | |
6 The following is the Trial Balance of Span Ltd. as on 15
31st March 2009 :
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Particulars |
Debit Balance (Rs) |
Credit Balance (Rs) |
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Equity share capital (Each of Rs. 100) |
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6,00,000 |
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General Reserve |
- |
2,60,000 |
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Debenture Redemption Fund |
- |
1,00,000 |
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Debenture Redemption Fund Investments |
1,00,000 |
-- |
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Share Premium |
-- |
1,30,000 |
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Profit and Loss account (1.4.08) |
-- |
1,50,000 |
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10% Debentures (Repayable on 31.3.12) |
-- |
2,00,000 |
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Debenture Discount |
20,000 |
-- |
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Unclaimed Dividend |
-- |
20,000 |
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Building |
3,00,000 |
-- |
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Plant and Machinery |
6,00,000 |
-- |
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Furniture |
1,00,000 |
-- |
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Stock (1.4.2008) |
1,60,000 |
-- |
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10% Government loan (F.V. Rs. 2,00,000) Purchased on 1.10.08 |
1,90,000 | |
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Equity share of Prashant Ltd. of Rs. 100 each Rs. 50 paid up |
1,00,000 | |
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Debtors and Creditors |
2,00,000 |
1,80,000 |
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Cash and Bank |
18,000 |
78,000 |
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Purchases and Sales |
75,75,000 |
82,00,000 |
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Interest on Debentures |
15,000 |
-- |
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Other administrative exps. |
1,50,000 |
-- |
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Sales and Distribution exps. |
40,000 |
-- |
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Salary and unpaid Salary |
1,20,000 |
10,000 |
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Interest on DRF Investment |
-- |
10,000 |
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Advance Income tax TDS (2007.08) |
1,50,000 |
-- |
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Advance income tax and TDS (2008-09) |
3,00,000 |
-- |
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Income tax provision (2007.08) |
-- |
2,00,000 |
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1,01,38,000 |
1,01,38,000 |
After considering the folowing additional information prepare final accounts of the company for the year ended 31st March 2009 according to the provisions of the Companies Act 1956.
(i) The closing stock is Rs. 10,00,000 valued at cost. The market value is 10% more than the cost.
(ii) On 1.10.2008, one machine was purchased for Rs. 2,00,000.
(iii) Provide depreciation at 10% on building and furniture and at 20% on Machinery.
(iv) During the year income tax assessment for the accounting year 2007-08 has been completed and tax liability is determined at Rs. 2,20,000.
(v) Provision for income tax is to be made at 43% of the net profit of the year.
(vi) Interest on debentures is payable every year on 30th June and 31st December.
(vii) The Board has proposed the following appropriations :
(a) General Reserve......................................Rs. 2,00,000
(b) Debenture Redemption fund...................Rs. 50,000
(c) Dividend on Equity share capital Rs. 20 per share
RB-1723] 7 [ 3500 ]
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Attachment: |
| Earning: Approval pending. |
