Bangalore University 2007 B.Com Management Accounting - Question Paper

Purchase returns Rs. 10000
Cash paid to creditors Rs. 260000
Closing creditors Rs. 30000

part - C

ans any three ques.. every ques. carries 15 marks. (15x3=45)

10. Using the subsequent data, complete the balance sheet beneath :

Gross profit (20% on sales) Rs. 120000
Shareholders equity Rs. 100000
Credit sales to total sales 80%
Total assets turn-over 3 times
(sales / total assets)
Inventory turnover 8 times
(to cost of sales)
avg. collection period 18 days.
(360 days in a year)

Current Ratio 1 : 6
Long term debt to equity 40%


Balance Sheet
Liabilities Amount Assets Amount

Shareholder Equity --- Fixed assets ---
Long term debts --- Sundry debtors ---
Sundry creditors --- Inventory ---
Cash ---

Total Rs. --- Total Rs. ---

11. The subsequent are the Balance Sheet of a concern for the year 2005 and 2006. Prepare a comparative Balance Sheet and study the financial position of the concern.

X Co. Ltd.
2005 2006 2005 2006
Equity share capital 1200000 1600000 Land & Building 740000 540000
Reserves and surplus 660000 444000 Plant & machinery 800000 1200000
Debentures 400000 600000 Furniture & Fixtures 40000 50000
Long term loans Other fixed assets 50000 60000
On mortgage 300000 400000 Cash in hand and
Bills payable 100000 90000 at bank 40000 160000
Sundry creditors 200000 240000 Bills receivable 300000 180000
Other current Sundry Debtors 400000 500000
Liabilities 10000 20000 Stock 500000 700000
Prepaid expenses 4000

2870000 3394000 2870000 3394000

12. From the subsequent Balance Sheets of ABC Co. Ltd. make out the statement of sources and uses of cash under Indirect method (As per accounting standards).

Liabilities 2005 2006 Assets 2005 2006

E.S. capital 600000 800000 Goodwill 230000 180000
9% P.S. capital 300000 200000 Land & Building 400000 340000
Gen. reserve 80000 140000 Plant 160000 400000
Profit & loss 60000 96000 Stock 154000 218000
Proposed dividend 84000 100000 Debtors 320000 400000
Creditors 110000 166000 Bills recoverable 40000 60000
Bills payable 40000 32000 Cash in hand 30000 20000
Provision for taxation 80000 100000 Cash at bank 20000 16000

1354000 1634000 1354000 1634000

Additional info :

a) Depreciation of Rs. 20000 and Rs. 40000 have been charged on plant and land and building respectively in 2006.
b) An interim dividend of Rs. 40000 has been paid in 2006.
c) Rs. 70000 income-tax was paid during the year 2006.

13. The subsequent are the summaries of the Balance Sheets of a Limited company on at 31st December 2005 and 31st December 2006.

Liabilities 31-12-2005 31-12-2006 Assets 31-12-2005 31-12-2006

Equity share capital 300000 400000 Goodwill 60000 55000

10% Preference Land & Building 125000 85000
share capital
(Redeemable) 80000 50000 Plant & Machinery 120000 225000

Capital Reserve --- 20000 Furniture 15000 12000

General Reserve 30000 40000 Trade investments 12000 48000

Profit & Loss A/c 26000 35000 Sundry Debtors 65000 105000

Sundry Creditors 30000 58000 Stock 90000 84000

Bills payable 12000 8000 Bills receivable 16000 30000

Outstanding exp. 6000 5000 Cash in hand 13000 20000

Proposed dividend 30000 42000 Cash at Bank 15000 20000

Provision for taxation 32000 36000 Preliminary exp. 15000 10000

546000 694000 546000 694000

Additional info :

1) A piece of land has been sold in 2006 and the balance has been revalued.
Profits on sale and revaluation being transferred to Capital Reserve Account.

2) Depreciation on plant and machinery has been written off Rs. 24000 and no depreciation has been charged on land and buildings.

3) A machinery was sold for Rs. 16000 (w.d.v. being Rs. 20000) and no furniture has been sold during the year.

4) An interim dividend of Rs. 20000 has been paid in 2006.

5) Rs. 3000 has been received as dividend on Trade Investments.

Prepare a statement of modifications in working capital and a Fund Flow Statement for the year 2006.

14. “Accounting reports are a matter of necessity for the management and not a matter of convenience” discuss.


-------------------------------------------------------------

Earning:   Approval pending.