Bharathiar University 2008 B.Com Management Accounting - exam paper

(iii) Sales(all credit): Rs.2,00,000 (iv) Gross profit ratio: 20%
(v) Current liabilities: Rs.60,000 (vi) Quick ratio:0.75
13. (a). From the subsequent details of a Trading concern compute its working capital requirements:
Annual projected sales – 2,00,000 units;
Selling prince per unit Rs.12 per unit;
Gross profit on sales is – 20 %;
avg. credit period for creditors – four weeks,
avg. credit period to Debtors – eight weeks,
avg. carrying cost on Stock - six weeks and
avg. cash balance needed for the concern is Rs.25,000.
(or)
(b). The summarized balance sheet of M/s Sugee Ltd. As on 31.3.2003 is as follows:

Liabilities 1996 1997 Assets 1996 1997
Share capital 2,00,000 2,50,000 Land and building 2,00,000 1,90,000
Debentures 50,000 90,000 Machinery 1,50,000 1,74,000
Profit and loss a/c 30,500 30,600 Inventory 1,00,000 74,000
Bank Loan 70,000 ----- Sundry debtors 80,000 94,200
Creditors 1,50,000 1,35,200 Cash 500 8,600
Provision for taxation 30,000 35,000
5,30,500 5,40,800 5,30,500 5,40,800
You are needed to prepare schedule of modifications in working capital.

14. (a). describe Marginal Costing and discuss its features. (or)
(b). From the subsequent data, calculate:
i) Profit when sales are Rs 20,000 and
ii) New break even point if selling price is decreased by 25%.
Fixed expenses Rs 6000 Break even point Rs 15,000

15. (a). Prepare a production budget for three months ending March 31, 1999 for a factory producing five products, on the basis of the subsequent info
kind of Product Estimated Stock on
Jan.1 1999 (units) Estimated Sales during Jan-Mar’99 (units) Desired Closing Stock on Mar’31 1999 (units)
A 3,000 11,000 4,000
B 3,000 18,000 6,000
C 3,000 13,000 4,000
D 4,000 16,000 3,000
E 2,500 15,000 3,000
(or)
(b). discuss the essentials of Budgetary Control.
part C (5 x 12=60 Marks)

16. (a). discuss the Uses and limitations of Management Accounting (or)
(b). Distinguish ranging from Management Accounting and Financial Accounting.

17. (a). Enumerate the Advantages and limitations of Ratio Analysis. (or)
(b). From the subsequent information, prepare a balance sheet. Show the workings.
(i) working capital Rs.75,000
(ii) Reserves and surplus Rs.1,00,000
(iii) Bank overdraft Rs.10,000

Earning:   Approval pending.