Tamil Nadu Open University (TNOU) 2009-3rd Year B.Com .>>MANAGEMENT ACCOUNTING>>E, .>> - Question Paper

B.Com. DEGREE exam —
JUNE, 2009.
Third Year
(AY 2003–04 and CY 2004 batches only)
MANAGEMENT ACCOUNTING
Time : three hours Maximum marks : 75
part A — (3 ´ five = 15 marks)
ans any 3 ques..
1. elaborate the objectives of Management Accounting?
2. elaborate the advantages of Budgetary Control?
3. From the subsequent Profit and Loss A/c for the year
ending 2005 and 2006, you are needed to prepare a
comparative income statement.
P & L A/c
2005 2006 2005 2006
Rs. Rs. Rs. Rs.
To Cost of goods sold 6,000 7,500 By Sales 8,000 10,000
To Operating expenses :
To Administrative 200 200
To Selling 300 400
To Net Profit 1,500 1,900
8,000 10,000 8,000 10,000
4. From the subsequent Profit and Loss Account, you are
needed to calculate cash from operations.
P & L A/c
Rs. Rs.
To Salary 5,000 By Gross Profit 25,000
To Rent 1,000 By Profit on sale of land 8,000
To Depreciation 3,000
To Goodwill written off 4,000
To Provision for taxation 10,000
To Net Profit 10,000
33,000 33,000
5. To produce 1 unit of ‘‘Product X’’ the standard
volume of material needed is five kg at Rs. five per kg.
true production of ‘‘X’’ was 400 units. The true
material used was 2200 kgs at Rs. 4.50 per kg.
calculate material cost variance.

part B — (4 ´ 15 = 60 marks)
ans any 4 ques..

6. From the subsequent 2 balance sheets as on 31.3.06
and 31.3.07, you are needed to prepare a fund flow
statement.
Balance Sheets
Liabilities 31.3.06 31.3.07 Assets 31.3.06 31.3.07
Rs. Rs. Rs. Rs.
Share capital 2,00,000 2,50,000 Cash 30,000 47,000
Creditors 70,000 45,000 Debtors 1,20,000 1,15,000
P & L A/c 10,000 23,000 Stock 80,000 90,000
Land 50,000 66,000
2,80,000 3,18,000 2,80,000 3,18,000

7. Q Ltd. has prepared the subsequent budget estimates :
Sales value = Rs. 1,50,000.
No. of units sold = 15,000.
Fixed expenses = Rs. 34,000.
Variable cost = Rs. six per unit.
You are asked to obtain :
(a) P/V Ratio.
(b) BEP in units.
(c) Margin of Safety.

8. The subsequent budget estimates are available from a
factory working at 50% of its capacity.
Variable expenses – Rs. 60,000.
Fixed expenses – Rs. 10,000.
Semivariable expenses – Rs. 20,000.
Prepare a budget for 75% of the capacity assuming that
semi-variable expense increase by 10% for every 25%
increase in capacity.

9. You are provided the subsequent info :
31.3.08
Rs.
Closing stock 10,000
Debtors 20,000
Bills receivable 10,000
Prepaid advances 2,000
Cash 18,000
Creditors 25,000
Bills payable 15,000
Sales 3,50,000
Gross Profit 70,000
compute the subsequent ratios :
(a) Gross Profit Ratio.
(b) Current Ratio.
(c) Stock Turnover Ratio.
(d) Debtors Turnover Ratio.

10. Who are the persons interested in financial
statements?

11. Briefly discuss various capital budgeting appraisal
methods.

12. Project ‘‘A’’ initially cost Rs. 25,000. It generates the
subsequent cash inflows :
Year Cash in
flow
Rs.
current value
of Re. one @ 10%
1 9,000 0.909
2 8,000 0.826
3 7,000 0.751
4 6,000 0.683
5 5,000 0.621

———————

Wk 3

UG-710    BCO-8

B.Com. DEGREE EXAMINATION JUNE, 2009.

Third Year

(AY 2003-04 and CY 2004 batches only) MANAGEMENT ACCOUNTING Time : 3 hours    Maximum marks : 75

SECTION A (3 x 5 = 15 marks)

Answer any THREE questions.

1.    What are the objectives of Management Accounting?

2.    What are the advantages of Budgetary Control?

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3. From the following Profit and Loss A/c for the year ending 2005 and 2006, you are required to prepare a comparative income statement.

P &    L A/c

2005    2006

Rs.    Rs.

To Cost of goods sold 6,000    7,500 By Sales To Operating expenses :

To Administrative 200    200

To Selling 300    400

To Net Profit 1,500    1,900

8,000 10,000

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4. From the following Profit and Loss Account, you are required to compute cash from operations.

	P & L A/c
	Rs.		Rs.
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To Rent	1,000	By Profit on sale of land	8,000
To Depreciation	3,000
To Goodwill written off	4,000
To Provision for taxation	10,000
To Net Profit	10,000
	33,000		33,000

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5. To produce one unit of Product X the standard quantity of material required is 5 kg at Rs. 5 per kg. Actual production of X was 400 units. The actual material used was 2200 kgs at Rs. 4.50 per kg.

Compute material cost variance.

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SECTION B (4 x 15 = 60 marks)

Answer any FOUR questions.

6. From the following two balance sheets as on 31.3.06 and 31.3.07, you are required to prepare a fund flow statement.

Liabilities Share capital Creditors P & L A/c

Balance Sheets 31.3.06 31.3.07 Assets Rs. Rs. 2,00,000 2,50,000 Cash 70.000    45,000 Debtors 10.000    23,000 Stock Land

31.3.06 31.3.07 Rs. Rs. 30.000    47,000 1.20.000    1,15,000 80.000    90,000 50.000    66,000 2.80.000    3,18,000

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7. Q Ltd. has prepared the following budget estimates Sales value = Rs. 1,50,000.

No. of units sold = 15,000.

Fixed expenses = Rs. 34,000.

Variable cost = Rs. 6 per unit.

You are asked to find :

(a)    P/V Ratio.

(b)    BEP in units.

(c)    Margin of Safety.

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8. The following budget estimates are available from a factory working at 50% of its capacity.

Variable expenses - Rs. 60,000.

Fixed expenses - Rs. 10,000.

Semivariable expenses - Rs. 20,000.

Prepare a budget for 75% of the capacity assuming that semi-variable expense increase by 10% for every 25% increase in capacity.

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9. You are given the following information :

31.3.08

Rs.

Closing stock    10,000

Debtors    20,000

Bills receivable    10,000

Prepaid advances    2,000

Cash    18,000

Creditors    25,000

Bills payable    15,000

Sales    3,50,000

Gross Profit    70,000

Calculate the following ratios :

(a)    Gross Profit Ratio.

(b)    Current Ratio.

(c)    Stock Turnover Ratio.

(d)    Debtors Turnover Ratio.

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10. Who are the persons interested in financial statements?

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11. Briefly explain different capital budgeting appraisal methods.

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12. Project A initially cost Rs. 25,000. It generates the following cash inflows :

Year	Cash in	Present value
	flow	of Re. 1 @ 10%
	Rs.
1	9,000	0.909
2	8,000	0.826
3	7,000	0.751
4	6,000	0.683
5	5,000	0.621
Suggest whether the project should be acceptec
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3	7,000	0.751
4	6,000	0.683

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