Hemwati Nandan Bahuguna Garhwal University 2006 B.Com BUSINESS ECONOMICS - Question Paper

1. discuss the term "Management Accounting" and statte clearly its obejective and scope.
2. elaborate the essential characteristic of a good report for management? Distinguish ranging from a Control Report and info Report.
3. discuss the concept and features of Responsibility Accounting?
4. discuss clearly as how are accounting informations useful in marketing decisions.
5. Examine the role of budgetary control in the field of planning,co-ordination and control.
6. From the subsequent details,prepare statement of Proprietor Fund: Stock velocity=6 times Debtors velocity=2 months Capital turnover=2 times Creditors velocity=73 days Fixed Assets turnover=4 times Gross Profit ratio=20% Gross Profit was Rs.60000Reserve and Surplus amounted to Rs.20000.Closing stock was Rs.5000 in excess of opening stock.
7. From the subsequent comparative Balance Sheets of Doon Ltd.,repare a satement showing
8. From the subsequent comparative Balance Sheets of Doon Ltd.,repare a satement showing applications and sources of funds during the year 2005: 31st Dec,2004/2005: ASSETS: Fixed asset less depreciation-510000/620000 Investment-30000/80000 Stock-180000/200000 Book Debts-60000/160000 Cash-nil/15000 Discount on debebture-10000/5000 CAPITAL/LIABILITIES: Equity share capital-300000/350000 Pref.Share capital-200000/100000 Debenture-100000/200000 Reserve & Surplus-110000/270000 Provision for Bad Debt-10000/15000 Creditors-40000/90000 Bills Payable-25000/50000 Provision for Tax-5000/5000 Further Informations: (i) A machine costing of Rs.70000 Book value Rs.40000 was sold for Rs.25000 (ii) Preference shares were redeemed at a premium of 5%. (iii) Dividend @ 15% was paid on equity shares for the year 2004. (iv) Provision for depreciation stood at Rs.150000 in 31st Dec,2004 and at Rs.190000 on 31st Dec,2005. (v) Stock which was valued at Rs.90000 as on 31st Dec,2004 was written up to its cost Rs.100000 for preparing the Profit and Loss account for Rs.2005.
9. The subsequent data relate to Sudhir Pvt.Ltd.: Sales(18000 units @ Rs.15)-270000 Variable expences-226000 contribution-44000 fixed expences-32000 profit-12000 (i) What sales are needed to achieve the objective of no profit no loss? (ii) What sales are necessary to outcome in a net income of Rs.11000,the corporate income-tax rate being 45%? (iii) What should be the selling price per unit if break-even point is brought down to 1000 units? (iv) What will be the break-even point if 10% increase is effected in selling price? (v) What additional sales will be needed to cover an increase of Rs.9000 in fixed costs?
10. Amit Ltd.is considering the purchase of a machine.Two machines,details of which are provided below,are to be considered: Machine A/Machine B: Life-5 yrs/5 yrs Capital cost(in Rs)-80000/80000 Amount Saving(after tax and before dep.): I year(in Rs)-70000/30000 II year(in Rs)-50000/60000 III year(in Rs)-30000/50000 IV year(in Rs)-20000/30000 V year(in Rs)-15000/20000 Estimate the profitability ofthe 2 machine using: (i) Pay back period (ii) avg. Rate of Return Method (iii) current value method assuming discount rate to be 10% Year-1,2,3,4,5 current value-0.91,0.83,0.75,0.68,0.62
11. The standard labour cost per unit of product X is: hours/Rs. skilled-5/5 Semi-skilled-8/4 Unskilled-10/4 For 500 units of production the subsequent wage payments were made: Skilled-2400/2640 Semiskilled-6000/2700(1000 idle hours) Unsikkled-7000/2940(500 idle hours) Reconcile standard labour hours cost with true Labour cost for 500 units of production of X.

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