Gujarat University 2007 B.C.A Computer Application _ Financial Accounting and Management (Old ) - Question Paper

respectively.


(iv) Write off Rs. 800 as bad debt and maintain provision for doubtful debt at 5% on debtors.




3. (a) Define Financial Management and discuss the functions of the Financial
Manager. (6)

(b) Write a note on Zero Base Budgeting. (4) OR
Prepare cost sheet for the year ended on 31–12–2006 from the subsequent info of
Zenith Manufacturing Company Ltd.

Particulars Rs.

Opening Stock of Raw Materials 10,000

Purchase of Raw Materials
2,10,000

Carriage Inward
5,000

Closing Stock of Raw Materials
4,000

Sale of Raw Material Scrap
1,000

Direct Wages
1,50,000

Direct Expenses
50,000

Indirect Wages
10,000

Electricty
50,000
(Factory–office ratio eight : 2)





Salaries
(Including Salary of Factory Engineer
Rs. 20,000 and Salary of Sales Manager Rs.
30,000)

1,00,000


Advertisement 20,000

Depreciation :

on Factory Building
15,000

on Office Furniture
5,000

on Delivery Van
5,000

Gas and Water
5,000
(Factory–Office Ratio 3 : 2)

Counting House Exps.
8,000

Drawing Office Exps.
2,000

Sundry Exps.
10,000

Branch Office Exps.
20,000
Opening Stock of Finished Goods 20,000

Closing Stock of Finished Goods
10,000

Sales
7,00,000




4. (a) From the subsequent information, compute subsequent accounting ratios : (6)

(i) Net Profit Ratio.

(ii) Stock Turnover Ratio. (iii) Liquid Ratio.
(iv) Return on Capital Employed. (v) Debtors Ratio.
(vi) Gross Profit Ratio.






Revenue Statement
Balance Sheet

Sales


Less: Cost of Goods Sold


Opening Stock 75,000


+ Purchases + 2,50,000


+ Purchase Exps. + 50,000


3,75,000


– Closing Stock 1,05,000


Gross Profit


Less: Operating Expenses


Net Profit
4,50,000
















– 2,70,000
(i) Owned Capital Equity Share Capital Reserves
(ii) Borrowed Capital





(i) Fixed Assets (ii) Investments (iii) WC
Current Assets


Stock 1,05,000


Debtors 45,000


Bank 30,000


1,80,000


Less: Current

Liabilities

Creditors 45,000


Bills Payable 30,000


Prov. For tax 15,000



3,00,000


1,50,000


–

4,50,000

3,15,000


45,000






























90,000

1,80,000


67,500

1,12,500


4,50,000

OR

(a) State advantages and disadvantages of Ratio Analysis. (6)



(b) From the subsequent particulars, prepare Fund Flow statement. (4)

(i) Funds from operations Rs. 10,000. (ii) Purchase of Land Rs. 40,000.
(iii) Sale of Furniture Rs. 20,000.

(iv) Purchase of Investment Rs. 10,000

(v) Increase in working capital Rs. 20,000. (vi) Issue of Equity Shares Rs. 70,000.
(vii) Redemption of Debentures Rs. 30,000.

OR

(b) Write a note on : Fund Flow Statement. (4)


5.

(a)

The subsequent info is supplied in respect of an article produced in X Ltd.

(4)

Selling price Rs. 10 per unit.

Variable Cost Rs. six per unit. Fixed Cost Rs. 20,000.

compute :

(i) Break–Even Point (in Units and in Rupees). (ii) Profit quantity Ratio.
(iii) Necessary Sales to make a profit of Rs. 1,00,000.

(iv) New Break–Even Point, if selling price is decreased by 10%.

OR

(a) Write a note on : Break–Even Analysis. (4)

(b)
The standard cost of 1 unit is as under :
(6)
Material – two kg @ Rs. 10 per kg.
Wages – two hours @ Rs. 10 per hour.



true data were as under :

Output – 10,000 units.

Material – 19,000 kg @ Rs. 11 per kg. Wages – 21,000 hours @ Rs. nine per hour.

compute :

(i) Material Cost Variance. (ii) Material Price Variance. (iii) Material Usage Variance. (iv) Labour Cost Variance.
(v) Labour Rate Variance.

(vi) Labour Efficiency Variance.

OR

(b) State limitations of Standard Costing.

Earning:   Approval pending.