Hemchandracharya North Gujarat University 2006 B.Sc Computer Science 104 : Financial Accounting

of SUZUKI Ltd. For the years 2004 and 2005 :





Balance Sheet as on
31-12-04 31-12-05 31-12-04 31-12-05
Equity Capital
Gen. Reserve
P. & L. A/C
8% Debenture
Sundry Creditors
Proposed Div. 1,00,000
50,000
50,000
50,000

40,000
10,000 1,00,000
50,000
1,00,000
80,000

50,000
20,000 Fixed Assets
Stock
Debtors
Cash & Bank
Prepaid Exp.
2,00,000
40,000
30,000
1,20,000
10,000 2,50,000
.60,000
40,000
30,000
20,000
3,00,000 4,00,000 3,00,000 4,00,000


Profit and loss Account for the year ended

31-12-04 31-12-05 (Rs.) (Rs.)


Sales …………………………………………….1,00,000………………1,50,000
Less:- Cost of goods sold ………………………. 80,000……………….1,00,000
Gross profit……………………………………….20,000………………...50,000
Less:- Operating Expenses………………………..10,000………………..25,000
Net Profit…………………………………………..10,000……………….25,000

You are needed to compute the subsequent ratios for the year 2005 :

(1) Gross Profit Ratio.
(2) Net Profit Ratio
(3) Stock-turnover Ratio.
(4) Debtors’ Turnover Ratio
(5) Current Ratio.
(6) Liquid Ratio.
(7) Return on Capital Employed (ROCE).

OR

(b) Discuss the objectives and importance of accounting ratios.

4 (a) Ajanta Watch Co. manufactures special 10
type of watch. The subsequent details are
furnished in respect of the factory operation
in the year ending 31st March, 2005 :

Stock as on 01-04-2004 : Rs.
-Raw Material…………………………….60,000
-Finished Goods (2,000 clocks)…………4,00,000
- W.I.P. :
Material…………………20,000
Labour…………………15,000
Factory Expenses……….5,000………
……………………………40,000
Stock as on 31-03-2005 :
-Raw Materials…………………….40,000
-finished Goods
(1,000 Clocks) ………………….2,34,000
-W.I.P. :
Material……………………28,000
Labour…………………….15,000
Factory Expenses…………7,000…50,000
Rs.
Purchases of Raw materials……………...6,00,000
Sale of Raw Materials Waste……………..12,000
Direct wages……………………………..4,00,000
Factory overhead expenses………………1,00,000
Administrative overhead expenses………..80,000
Sale of factory waste……………………….8,000
Salling expenses per clock…………………Rs. 10
Selling price per clock……………………Rs.250

During the year 2004-05 10,000 clocks were
Manufactured. Prepare a cost sheet and obtain
Out profit per clock.

(b) Write a note on : (any two) 7
(i) Flexible budget and fixed budget
(ii) Limitations of Budgetory control
(iii) Objectives of Budgetory control
(iv) Zero-Based Budgeting


5 (a) The standard cost of certain chemical mixture 7
is as follows :

40% Material A at Rs. 20
60% Material B at Rs. 30

A standard loss of 10% is expected in
Production. During a period, there is used :
180 Kgs. Of material A at Rs. 18 per Kg.
220 Kgs. Of material B at Rs. 34 per Kg.
The weight produced is 378 Kgs. Of good
Production.
Calculate the subsequent :-
(1) Material price variance
(2) Material Mix variance
(3) Material yield variance
(4) Material Cost variance
OR
5 (a) Write short note : (any three)
(i) Labour cost variance
(ii) Labour rate variance
(iii) Labour Efficiency variance
(iv) Labour Mix variance
(v) Idle Time variance
(vi) Labour yield variance
(b) The subsequent details relate to digdam 10
Woolen Mills for the standard product :
Sales 50,000 units @ Rs. 20 per unit
Variable costs Rs. 10 per unit
Total fixed cost Rs. 4,00,000

Answer the subsequent :
(1) Calculate the B.E.P. in (i) Unit and
(ii) rupees
(2) Ascertain the Margin of Safety at the
current level of Sales
(3) If the company plans to increase its
profit by 20% in the next year how many
units it should sell.
(4) The management estimates that if selling
price is decreased by 10%, it may get a new
order of 10,000 units , Is this desirable ?
OR
5 (b) Write a short note : (any three)
(i) Margin of safety
(ii) Contribution
(iii) To make or buy decision
(iv) p/v ratio
(v) B.E.P.

6 Write notes in brief : ( any two)
(i) Features of Tally
(ii) Role of Computer in Tally
(iii) Hardware and software needed for Tally




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Earning:   Approval pending.