Hemwati Nandan Bahuguna Garhwal University 2007 M.Com Commerce MANAGEMENT ACCOUNTING - Question Paper

1. describe Accounting and write their significance.
2. What do you understand by the term Reporting to Management? explain briefly the matters that you would deal with while reporting to Board of Directors.
3. What is Responsibility Accounting? Distinguish ranging from Cost Centres and Responsibility Centres.
4. discuss clearly as how are accouting informations useful in operational decisions.
5. explain the pattern Analysis in the area of Financial Analysis.
6. The subsequent are the ratios relating to the activities of National Trader ltd.: Debtors velocity-3 months Stock velocity-8 months Creditors velocity-2 months Gross Profit Ratio-25% Gross Profit for the year ended 31st December,2006 amounts of Rs.400000.Closing stock of the the year is Rs.10000 above the opening stock.Bills receivable amount to Rs.25000 and Bills Payable to Rs.10000.Find out the subsequent figures: (i) Sales (ii) Sundry Debtors (iii) Closing stock (iv) Sundry Creditors
7. Ahead are the summerised Balance sheet of Doon Ltd.as on 31st Dec,2005 and 2006; LIABILITIES: 2005/2006(Rs): Share Capital-450000/450000 General Reserve-300000/310000 P/L A/c-56000/68000 Creditors-168000/134000 Provision for tax-75000/10000 loan--/270000 ASSETS: 2005/2006(Rs): Fixed asstes-400000/320000 Investment-50000/60000 Stock-240000/210000 debtors-210000/455000 Bank-149000/197000 Additional Informations: (i) Investment costing Rs.8000 were sold during the year 2006 for Rs.8500. (ii) Provision for taxation made during the year 2006 was Rs.9000. (iii) During the year 2006 part of fixed asset costing Rs.10000 was sold for Rs.12000.No depreciation was changed on that asset.The profit was included in Profit and Loss Account. (iv) Dividend paid during during the year 2006 amounted to Rs.40000. Prepare a statement of sources and uses of funds and statement showing modifications in working capital.
8. Modern Machine Co.Ltd.Place before you the subsequent figures: Sales(Rs): 2004-200000 2005-180000 Profits(Rs): 2004-10000 2005-2000 You are needed to: (i) Determine Profit quantity Ratio(P/V Ratio) (ii) Fixed Costs (iii) Determine Sales at Break-even point (iv) Predict the expected profit or loss with sales of: (a) Rs.150000 (b) Rs.300000
9. Ram Ltd.is contemplating to invest in a new machine so that the current method of production by mannual labour is eliminated.The management has 2 option A and B in respect of which the ahead info is available: Machine A(Rs)/Machine B(Rs): Cost of machine-45000/72000 Estimated Savings in Scrap-3000/4500 Estimated Cost of Indirect Materials-2400/2700 Estimated Savings Indirect wages-27000/36000 Additional Cost of Maintenance-1500/3000 Additional Cost of Supervision-3600/4800 Deprication may be taken on straight line method.Assume tax rate is 50%.Evaluate the 2 option by using: (i) Pay-back period (ii) avg. Rate of Return method (iii) Net current value method,assuming discount rate to be 8%: Year-1,2,3,4,5,6 current value-0.926,0.857,0.794,0.681,0.630
10. The standard output per week in a factory is 2000 units but the true output for the week was 24000 units.The total overhead expences for the period were as follows: Actual(Rs)/Standard(Rs): Fixed-900/800 Variable-500/500 Semivariable-1050/900 The overtime work done during the week was equal to 1 day work.Semivariable expences are one-third fixed and two-third variables.Find out the various variances as follows: Total overhead varience: variable overhead varience (b) Fixed overhead varience-(i) Fixed expenditure varience (ii) quantity varience-(1)Efficiency varience (2) Calender variance (3) Capacity varience

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