Andhra University 2005 M.C.A MANAGEMENT ACCOUNTANCY - Question Paper

2005 Andhra University M.C.A Computer Applications MANAGEMENT ACCOUNTANCY ques. paper

2004-05 MODEL PAPER

MCA 1.1.5 MANAGEMENT ACCOUNTANCY

First ques. is Compulsory

ans any 4 from the remaining

ans all parts of any ques. at 1 place.

Time: three Hrs.
Max. Marks: 100

1. ans any 3 of the subsequent.
a. Master file.
b. Scope for computerization of accounts.
c. Compensating errors.
d. Solvency ratios.
e. Native of costing.

2. elaborate the managerial uses of funds flow statement? State the limitations of ratio analysis.

3. Classify budgets with example. State the methods of preparing cash budget.

4. explain the practical application of marginal costing in decision making.

5. define the principles of accounting. State the features of subsidiary books.

6. A Practicing Chartered Accountant now spends Re. 0.90 per kilometer of taxi fares for his clients; work. He is considering 2 other alternatives, the purchase of a new small car or an old bigger car. The estimated cost figures are:

Items New Small Old Bigger
Car Car
Rs. Rs.
Purchase price. 35,000 20,000
Sale price, after five years 19,000 12,000
Repairs and servicing per annum 1,000 1,200
Taxes and insurance per annum 1,700 700
Petrol consumption, per litre 10 km. seven km
Petrol price per litre 3.50 3.50
He estimates that he does 10,000 km. Annually, which of the 3 options will be cheaper? If his practice expands and he has to do 19,000 km. Per annum.
What would be his decision? At how many km. Per annum, will the cost of 2 cars break-even and why? Ignore interest and income tax.

7. Make out a cash book with discount, cash and bank columns:
June one Cash in hand Rs. 2,800; cash at bank Rs. 8,100.
June three Received from Joseph Rs. 1,500 and allowed him a discount of Rs. 20.
June seven Paid into bank Rs. 4,000
June eight Received for cash sales Rs. 100 and cheque Rs. 190.
June 10 Paid George by cheque Rs.570 in settlement of his account for Rs. 600
June 11 Cash purchases by cheque Rs 700
June 15 Drew for office use Rs. 350
June 17 Advertisement expenses Rs. 50
June 20 Sam paid direct into our account in the bank Rs. 620
June 22 Withdrew cash for personal use Rs. 170
June 26 Paid rent by cheque Rs. 200
June 27 Received from Raja a cheque for Rs. 490 and allowed him a discount of Rs. 10.
June 29 Received commission by cheque Rs. 220.
June 30 Cash in excess of Rs. 400 was paid into bank.

8. An inexperienced clerk of B and Co., prepared the subsequent Trial Balance as on 31.12.1989.

Credits Rs. Debits Rs.
Capital 2,000 Loss in fire 100
Loan at 10% 6,000 Building 4,000
Creditors 846 Furniture
Doubtful debts and Fittings 500
reserve 200 Plant and
Bills receivables 852 machinery 5,800
Returns to Debtors 4,800
suppliers 500 Bills payable 815
Carriage on Bank shares 520
sales 250 Commission
Sales 14,954 received 287
Stock (1.1.1989) 2,818
Cash in hand 88
Manufacturing expenses 782
Wages 750
Salaries 394
Postage and telegrams 54
Rates 95
Printing and stationary 86
Insurance 17
Purchases 2,986
Interest on loan
(paid up to October 31) 450
Returns from customers 110
Carriage on purchases 150
____________ _____________
25,602 25,602
____________ _____________
Prepare the accurate Trial Balance, Trading Account, Profit and Loss Account for the year ending December 31, 1989 and the Balance Sheet as on that date after taking the subsequent adjustments into account:

a. Stock on hand 31.12.89. Goods Rs. 1,600; Stationary Rs. 45.
b. Make up the reserve for doubtful debts at 5% on debtors.
c. Depreciate Plant at 7½ % and debts at 10%
d. Outstanding expenses: Salaries Rs. 75 ; Interest on Loan.
e. Dividend due on Bank Shares. Rs. 52.
f. Insurance Co. agreed to meet the loss in fire fully.
g. Commission received in advance Rs. 25.

Earning:   Approval pending.