Saurastra University 2006 M.Com Commerce Accounting For Managerial isions - Question Paper

M. Com. (Part - I) exam
April / May – 2006
Accounting For Managerial Decisions
(New Course)
Instructions : (1) All ques. carry equal marks.
(2) Figures to the right side indicate full marks of
the ques..
1 R. K. Ltd. is established on 1-1-06. On 1-1-06, Company 20
issued 4,00,000 equity shares of Rs. 10 each, which were fully
subscribed. Company has decided to problem 6% Debentures in
multiple to Rs. 50,000 to meet the additional requirement of
cash to conduct business during 1-1-06 to 30-6-06. This
amount is collected on 1-1-06.
Other particulars of the company are as under :
(1) Initial investment on 1-1-06 :
Rs.
Land and Building ................. 18,00,000
Machinery .................................. 8,00,000
Stock ........................................... 5,00,000
Motorvan .................................... 4,00,000
(2) Sale :
Rs.
January .................................... 12,00,000
February................................... 16,00,000
March........................................ 18,00,000
April .......................................... 20,00,000
May ........................................... 22,00,000
June .......................................... 21,00,000
SX-5666] eight [Contd...
(3) Debtors are provided two months credit.
(4) Gross profit is 25% of selling cost, goods sold during
the month is purchased in the identical month.
(5) Creditors provide us 1 month credit.
(6) Administrative expenses of Rs. 50,000 will be paid in
every month, while preliminary expenses Rs. 60,000 will
be paid in February.
(7) For 1st 3 months, monthly salary of Rs. 75,000 will
be paid. After that, monthly salary will be Rs. 80,000.
Salary of every month is truly paid on 1st day of
next month.
(8) Assuming that amount of share capital and
debentures is received, you are needed to
prepare : Cash Budget, Projected Trading and Profit
and Loss A/c for the period of 1-1-06 to 30-6-06
and projected balance sheet as on 30-6-06.
OR
1 From the subsequent particulars of Aram Ltd. prepare cash 20
budget for 4 months ending on 31-7-2006 :
Month Purc- Sale Labour Factory Adm. Selling
hase exp. exp. exp. exp.
March – – 25,000 25,000 10,000 7,500
April 1,80,000 2,80,000 30,000 20,000 10,000 8,100
May 1,65,000 3,00,000 50,000 28,000 11,000 8,700
June 2,02,500 3,20,000 50,000 32,000 11,000 9,000
July 2,00,000 3,40,000 60,000 40,000 12,000 9,600
SX-5666] nine [Contd...
Additional other details :
(1) Estimated cash balance on 1-4-2006 is Rs. 97,625.
(2) 25% of sale is cash sale. 50% amount of credit sale is
received in next month of selling (i.e. March recd. in

Earning:   Approval pending.