Bangalore University 2010-1st Sem B.Com Vester , /e (Semester scheme)(New) COMMERCE (-6.3) MANAGEMENT ACCOUNTING - Question Paper

VI semester B.Com examination, May/June 2010
(Semester scheme)(New)
COMMERCE (Paper-6.3)
MANAGEMENT ACCOUNTING
Time : three hrs
max. marks:90
SECTION-A

1. Answer any ten sub-questions. every ques. carries two marks: (10x2=20)
a. State any 2 limitations of management accounting.
b. What is common size statement?
c. What is earnings per share? How do you calculate it?
d. What is return on capital employed?
e. List out the important tools of management accounting.
f. What are the steps involved in the preparation of fund flow statement?
g. What is management reporting?
h. What do you mean by cash and cash equivalents?
i. Average stock of a firm is Rs. 50,000 its opening stock is Rs.10,000 less than its closing stock. obtain out the opening, closing stock.
j. Turnover to fixed assets ratio is 4:5.4, cost of sales is Rs.4,28,000. calculate the value of fixed assets.
k. Given: current ratio is 3.75, working capital is Rs.3,57,500, compute the amount of current assets and current liabilities.
l. Gross profit ratio of a firm is 25%. Gross profit is Rs.1,00,000. compute sales and cost of sales.

SECTION-B

ans any 5 sub-questions. every ques. carries five marks: (5x5=25)

2. Management Accounting has been Evolved to meet the needs of management. explain.

3. What are the objectives of Management Reporting?

4. Give analytical note on comparative statement and state the procedure
of computing it.

5. Given:
Current ratio 1.4
Liquid ratio 1
Stock turnover ratio(Closing stock) 8
Gross profit ratio 20%
Sales for the year Rs.10,00,000
From the above compute working capital.

6. The profit and loss account of a company for the years ending 31-3-2008 and
31-3-2009 showed the profits RS.20,000 and Rs.30,000 respectively.
For the year ending 31-3-2009 provision for dividend was made to the
extent of Rs.50,000. Transfer to reserve amounted to Rs.40,000.
Depreciation written off was Rs.25,000.
Loss on sale of old machinery amounting to rs.5,000 was debited to P& L a/c.
sale of investment resulted in a profit of Rs.3,000 which was taken to P&L a/c .
sale of furniture resulted in a profit of Rs.3,000 which was taken to P&L a/c.
A commission of Rs.4,000 received on a non-trading activity was credited to P&L account.
You are needed to compute the 'Funds' from operation.

7. A published report shows:
1-1-2009 31-12-2009
Rs. Rs.
Machinery a/c 1,80,000 2,50,000
Provision for depreciation a/c 50,000 60,000

Earning:   Approval pending.