Visvesvaraya Technological University (VTU) 2010 M.C.A Accounting and Finanical Management - Question Paper

IJSN    1.1    07MCA11A

Kirst Semester IVfCA Degree Examination Dec.09/Jan*10

Accounting and Financial Management

Max. Marks:LOO

Write arty two distinctions be L ween Funds Flow statement and Cash Flow statement.

(04 Marks)

b.

2008	2009	Assets
Rs.	Rs.
139000	' 145000	Cash
1000	3000	Debtors
24000	12000	Stock
20000"	23680	Land
20800	21120	Goodwill
204800	204800

Additional information:

i) Dividend paid Rs.7000 ii) Land was purchased for Rs.20000 iii) Amount of goodwill written off was Rs. 10000 iv) Debenture loan was repaid for Rs. 12000.

Prepare statements showing changes in working capital* adjusted profit & loss account and funds flow statement    U Marks)

What is the concept of cost? How are costs classified on the basis of behaviour? (04 Marks) What is a cost sheet? Name any four items of expenses that tire excluded from cost accounts.

(04 Marks)

Following data are extracted from the books of Vinita Industries for the year 2009: Rs.

1 1 Opening stock of raw materials ........50,000" 2 Closing stock of raw materials ......""" ~ 80,000 3 Purchases of raw materials " 1,70,000 4 Carriage forwards .............10,000 ~ 5 Direct wages 1,50,000 6 : direct wages 20,000 7 ! Other direct charges 30,000 8 Rent and rates - Factory 10,000 9 i Rent and rates - Office 1,000 10 Indirect materials 1,000 11 Depreciation of plant 1,000 12 Depreciation of office furniture 200 13 Office salaries 5,000 i4 Salesmen salary 4,000 15 Other office expenses 1,800 16 Other factory expenses 11,400 I?. Managing 1 directors remuneration " 24,000 18 Other selling expenses______ _ ~ .......2,000 19 Travelling expenses _ ______ _ 2,200 20' 21 Carriage outwards_ _____________ _ Sales _ ____ _ ________ ___ 2,000 ..... 5,00,000 22" Advance income tax paid __________ 30,000 23 Advertisement __ 4,000

the office and Rs. 12,000 to the selling departments. From the above information, prepare a cost sheet shewing:

i) Prime cost ii) Works cost iii) Cost of production iv) Cost trf stiles v) Net profit

(12 Marks)

5 a. Compute P/V ratio from the lb I lowing ;

Total sales    - Rs. 3,60,000

Selling price p.u. - Rs, 100 Variable cost p,u, - Rs. 50

Fixed cost    - Rs. 1,00,000    (ot Mm-b)

b.    What do you incan by a budget? Write any four objectives of budgeting control (04 Marks)

c.    For (he production of 10,000 electrical automatic irons the budget expenses are:

Rs.

Raw materials    120 p.u.

Direct labour    60 p.u

Variable overheads    50 p.u.

Fixed overheads    31) p.u. (Ks.3*00.000)

Direct expenses    10 p.u.

Selling expenses    3f) p.u. (10% fixed)

Administrative expenses Rs. 1,00,000 (Rigid for all levels)

Distribution expenses    10 p.u. (20% fixed)

Prepare a flexible budget for production of 8000 and 12000 irons.    (12 Mrks)

6 a. Give the meaning of working capital. Why is it called circulating capital?

b. You are given the following estimates. As a financial manager, set up your calculations for the average amount of working capital required for the year after making a provision of 10% for contingencies:

Amount blockcd-up for stocks;

Finished goods Raw materials Average credit given;

Inland sales - 6 weeks credit Export sales - 1 '/* weeks credit Lag in payment of expenses:

Wages - 1 Vi weeks Purchases of materials - 1 Y* months Rent, Royalties - 6 months Clerical staff - Yx month Manager - Yz month Miscellaneous expenses -1 Vi months

Payment in Advancc:

Sundry expenses paid quarterly in advance-

7 a. Write the steps involved in capital budgeting process, b. Name any four advantages of pay back period method.

^c The following are the particulars relating to project number - 009:

Rs.

Cost of the project    - 50,000

Operating savings:

I - Year    - 5,000

II-Year    - 20,000

III    -- Year    - 30,000

IV    - Year    - 30,000 Raw materials - 10,000

Calculate discounted pay back period:

i)    Ignoring interest factor

ii)    Taking into interest factor at 10%

Note : Present value of Re.l at 10% for l^sl, 2^nd ₇ 3"* and 4^lh year is 0.909, 0.826, 0.751 and 0.683 respectively.    ^Marks)

8 Write elaborately on:

a.    Subsidiary Books    0 Marks)

b.    Accounting concepts.    (10 Marks)

* * * * *

4 oi'4

07MCA11

USN

First Semester MCA Examination, June/July 08 Accounting and Financial Management

Max. Marks: 100

Note : Answer any FIVE full questions.

a.    What do you mean by Marginal costing? Discuss its usefulness and limitation. (05 Marks)

b.    Using information given below, prepare income statement under absorption costing and marginal costing for the month of June and July.

i)    Data per unit

Selling price    Rs. 50

Material cost    Rs.18

Labour cost    Rs.4

Variable overheads Rs.3

ii)    Monthly cost.

Fixed production cost Rs. 99,000:Fixed administration cost Rs.40, 000; Variable selling cost 10% of sales revenue; Normal production capacity 11,000 units p.m;. sales in units June 10,000 July 12,000.Production in units June - 12000, July - 10,000

(15 Marks)

a.    What is profit volume ratio? How do you improve it?    (05 Marks)

b.    Swathi Ltd., a multiproduct company furnishes you the following data relating to the year 2004.

1 half of the year 2 half of the year Total sales Rs. 4,50,000    5,00,000

Total cost Rs.4,00,000    4,30,000

Calculate for the year:

i) Profit volume ratio,    ii) Break even sales

iii)    Sales required to make a profit of Rs. 1,00,000, iv) Profit when sales are Rs. 7,00,000

v) Percentage of margin of safety.    (15 Marks)

a.    Cost Accounting has come to an essential tool of management comment. (05 Marks)

b.    From the following particulars prepare cost sheet for the year ended 31-12-01

	Rs.
Stock of finished goods [1-1-01]	6000
Stock of raw materials [1-1-0]	40,000
Work in progress [1-1-01]	15,000
Purchase of raw materials	4,75,000
Carriage Inward	12,500
Factory rent and taxes	7,250
Other production expenses	43,000
Stock of finished goods [31-12-01]	15,000
Wages	1,75,000
Works manager salary	45,000
Power expenses	9,500
Selling expenses	4,250
General expenses	32,500
Sales for the year	8,60,000
Stock of raw materials [31-12-01]	50,000
Work in progress [31-12-01]	10,000

Differentiate between funds flow analysis and cash flow analysis.    (05 Marks)

From the following balance sheets of Black and company as on 31/12/04 and 31/12/05 prepare fund flow statement.

Liabilities	2001	2002	Assets	2001.	2002
Share capital	1,00,000	1,50,000	Goodwill	15,000	10,000
Reserve fund	10,000	20,000	Building	40,000	35,000
Profit & Loss A/c	15,000	28,000	Machinery	30,000	60,000
Tax Provision	25,000	42,000	Investment	22,000	50,000
Creditors	43,000	27,000	Stock	28,000	55,000
Bills Payable	12,000	13,000	Debtors	45,000	42,000
			Cash	25,000	28,000
	2,05000	2,80,000		2,05000	2,80,000

Additional information.

Depreciation on building Rs. 5,000 Depreciation on Machinery Rs. 15,000.

Taxes paid during the year Rs. 20,000.

Interim Dividend paid during the year Rs. 10,000.    (15 Marks)

Briefly explain the factors, which determine working capital needs of a firm. (05 Marks) ABC Ltd sells its product on a Gross profit of 20% on sales. The following information are extracted from its annual accounts for the year ended 31-12-05

Sales (3 months Credit)	Rs.	40,00,000
Raw materials	Rs	12,00,000
Wages (l/2months arrears)	Rs	9,60,000
Manufacturing Expenses (one month arrears)	Rs	12,00,000
Administration expenses (one month arrears)	Rs	4,80,000
Sales promotion expenses (1/2 yearly in advance)	Rs	2,00,000

Company enjoys one-month credit form supplier of raw materials and maintain 2 months stock of raw materials and 1month finished goods. Cash balance maintained at Rs.

1,00,000 as precautionary balance.    (15 Marks)

What is capital budgeting? Why is it significant for a firm?    (05 Marks)

A company is considering to purchase two machines with the following details

	Machine 1	Machine 2
Life	3 years	3 years
Capital Cost	Rs. 1,00,000	Rs. 1,00,000

Net earning after-tax

	Rs.	Rs.
1st year	80,000	20,000
2nd year	60,000	70,000
3rd year	40,000	90,000

You are required to suggest which machine should be purchased using payback period. NPV at 10% [PV factors 0.909,0.826, 0.751] and ARR.

Note: Ignore depreciation.    (15 Marks)

2 of 3

7 a. What is GAAP? State the significance of preparing trial balance.    (05 Marks)

b. Following is the trial balance of Mr. Shreyas, a trader. Prepare trading and profit and loss account for the year ended 31-03-05 and prepare balance sheet as on that date. _ (10 Marks)

Particulars	Debit Rs.	Credit Rs.
Capital A/C		50000
Loan from Karan		20000
Sales		720000
Discount		500
Creditors		20000
Current A/c	1500
Purchases	699200
Salaries	4200
Carriage inward	400
Carriage outward	500
Power	300
Rates and Insurance	400
Building	27000
Furniture	6000
Debtors	8000
Cash	250
Bank	1500
Stock on 1-4-04	61250
Total	810500	810500

Adjustments:

i)    Closing stock valued at 60850

ii)    Prepaid rate Rs. 125

iii)    Bad debts written off Rs. 500

iv)    Provision for doubtful debt at 5%

v)    Building depreciated by 2%

vi)    Manager is entitled to a commission commission.

8 Write short notes on any four of the following:

a.    Flexible Budget.

b.    Short-term solvency ratios.

c.    Journal and ledger.

d.    Dupont Analysis

e.    Internal Rate of Return.    (15 Marks)

* Jc "k Je k

07MCA11

First Semester MCA Examination, June/July 08 Accounting and Financial Management

Max. Marks: 100

Note : Answer any FIVE full questions.

a.    What do you mean by Marginal costing? Discuss its usefulness and limitation. (05 Marks)

b.    Using information given below, prepare income statement under absorption costing and marginal costing for the month of June and July.

i)    Data per unit

Selling price    Rs. 50

Material cost    Rs.18

Labour cost    Rs.4

Variable overheads Rs.3

ii)    Monthly cost.

Fixed production cost Rs. 99,000:Fixed administration cost Rs.40, 000; Variable selling cost 10% of sales revenue; Normal production capacity 11,000 units p.m;. sales in units June 10,000 July 12,000.Production in units June - 12000, July - 10,000

(15 Marks)

a.    What is profit volume ratio? How do you improve it?    (05 Marks)

b.    Swathi Ltd., a multiproduct company furnishes you the following data relating to the year 2004.

1 half of the year 2 half of the year Total sales Rs. 4,50,000    5,00,000

Total cost Rs.4,00,000    4,30,000

Calculate for the year:

i) Profit volume ratio,    ii) Break even sales

iii)    Sales required to make a profit of Rs. 1,00,000, iv) Profit when sales are Rs. 7,00,000

v) Percentage of margin of safety.    (15 Marks)

a.    Cost Accounting has come to an essential tool of management comment. (05 Marks)

b.    From the following particulars prepare cost sheet for the year ended 31-12-01

	Rs.
Stock of finished goods [1-1-01]	6000
Stock of raw materials [1-1-0]	40,000
Work in progress [1-1-01]	15,000
Purchase of raw materials	4,75,000
Carriage Inward	12,500
Factory rent and taxes	7,250
Other production expenses	43,000
Stock of finished goods [31-12-01]	15,000
Wages	1,75,000
Works manager salary	45,000
Power expenses	9,500
Selling expenses	4,250
General expenses	32,500
Sales for the year	8,60,000
Stock of raw materials [31-12-01]	50,000
Work in progress [31-12-01]	10,000

Differentiate between funds flow analysis and cash flow analysis.    (05 Marks)

From the following balance sheets of Black and company as on 31/12/04 and 31/12/05 prepare fund flow statement.

Liabilities	2001	2002	Assets	2001.	2002
Share capital	1,00,000	1,50,000	Goodwill	15,000	10,000
Reserve fund	10,000	20,000	Building	40,000	35,000
Profit & Loss A/c	15,000	28,000	Machinery	30,000	60,000
Tax Provision	25,000	42,000	Investment	22,000	50,000
Creditors	43,000	27,000	Stock	28,000	55,000
Bills Payable	12,000	13,000	Debtors	45,000	42,000
			Cash	25,000	28,000
	2,05000	2,80,000		2,05000	2,80,000

Additional information.

Depreciation on building Rs. 5,000 Depreciation on Machinery Rs. 15,000.

Taxes paid during the year Rs. 20,000.

Interim Dividend paid during the year Rs. 10,000.    (15 Marks)

Briefly explain the factors, which determine working capital needs of a firm. (05 Marks) ABC Ltd sells its product on a Gross profit of 20% on sales. The following information are extracted from its annual accounts for the year ended 31-12-05

Sales (3 months Credit)	Rs.	40,00,000
Raw materials	Rs	12,00,000
Wages (l/2months arrears)	Rs	9,60,000
Manufacturing Expenses (one month arrears)	Rs	12,00,000
Administration expenses (one month arrears)	Rs	4,80,000
Sales promotion expenses (1/2 yearly in advance)	Rs	2,00,000

Company enjoys one-month credit form supplier of raw materials and maintain 2 months stock of raw materials and 1month finished goods. Cash balance maintained at Rs.

1,00,000 as precautionary balance.    (15 Marks)

What is capital budgeting? Why is it significant for a firm?    (05 Marks)

A company is considering to purchase two machines with the following details

	Machine 1	Machine 2
Life	3 years	3 years
Capital Cost	Rs. 1,00,000	Rs. 1,00,000

Net earning afiter-tax

	Rs.	Rs.
1st year	80,000	20,000
2nd year	60,000	70,000
3rd year	40,000	90,000

You are required to suggest which machine should be purchased using payback period. NPV at 10% [PV factors 0.909,0.826, 0.751] and ARR.

Note: Ignore depreciation.    (15 Marks)

2 of 3

7 a. What is GAAP? State the significance of preparing trial balance.    (05 Marks)

b. Following is the trial balance of Mr. Shreyas, a trader. Prepare trading and profit and loss account for the year ended 31-03-05 and prepare balance sheet as on that date. _ (10 Marks)

Particulars	Debit Rs.	Credit Rs.
Capital A/C		50000
Loan from Karan		20000
Sales		720000
Discount		500
Creditors		20000
Current A/c	1500
Purchases	699200
Salaries	4200
Carriage inward	400
Carriage outward	500
Power	300
Rates and Insurance	400
Building	27000
Furniture	6000
Debtors	8000
Cash	250
Bank	1500
Stock on 1-4-04	61250
Total	810500	810500

Adjustments:

i)    Closing stock valued at 60850

ii)    Prepaid rate Rs. 125

iii)    Bad debts written off Rs. 500

iv)    Provision for doubtful debt at 5%

v)    Building depreciated by 2%

vi)    Manager is entitled to a commission commission.

8 Write short notes on any four of the following:

a.    Flexible Budget.

b.    Short-term solvency ratios.

c.    Journal and ledger.

d.    Dupont Analysis

e.    Internal Rate of Return.    (15 Marks)

* "k "k

07MCA11A

First Semester MCA Degree Examination, Dec.08/Jan.09 Accounting and Financial Management

Max. Marks: 100

Note: Answer any FIVE full questions.

a.    What do you mean by an account? What are its types?    (05 Marks)

b.    From the following Trial balance prepare Trading, Profit and loss account and Balance sheet as on 31.12.2007.

Name of the accounts	Debit (Rs.)	Credit (Rs.)
Capital	-	45000
Drawings	3000	-
Purchases	26000	-
Purchases returns	-	250
Sales	-	43650
Sales returns	350	-
Wages	500	-
Salaries	5000	-
Insurance paid	800	-
Bad debts	300	-
Rent received	-	6250
Carriage outwards	600	-
Trade expenses	1000	-
Printing and stationary	1200	-
Debtors	20500	-
Creditors	-	10000
Bills receivable	9500	-
Bills payable	-	10500
Opening stock	15000	-
Machinery	20000	-
Furniture	5000	-
Cash in hand	900	-
Cash at bank	6000	-
	115650	115650

Additional Information:

1)    Insurance prepaid was Rs. 150.

2)    Interest on drawings to be provided at 10%.

3)    Wages outstanding by Rs.400.

4)    Interest on capital to be provided at 10%.

5)    Provide depreciation on machinery at 10%.

6)    Closing stock valued at Rs. 10,000.    (15 Marks)

2 a. Discuss any five limitations of ratio analysis.    (05 Marks)

b. From the following final accounts of XYZ Ltd for the year ended 31^st March 2007, you are required to calculate the following:

(i) Current ratio, (ii) Acid test ratio (iii) Stock turnover ratio (iv)Operating ratio (v) Debtors collection period (vi)Net Profit to capital employed ratio

..... contd

Balance Sheet as on 31st march, 2007

Liabilities Rs Assets Rs Share capital (in shares of Rs.10 each) General Reserve Profit and Loss A/c Sundry Creditors 5.00.000 4.00.000 1,50,000 2.00.000 Land and buildings Plant & machinery Stock S. Debtors Cash and Bank balance 5.00.000 2.00.000 1.50.000 2.50.000 1.50.000 12,50,000 12,50,000

Profit and Loss account for the year ended 31.3.07

Particulars Rs Particulars Rs To Opening stock 2,50,000 By Sales 18,00,000 Purchases 10,50,000 By Closing stock 1,50,000 Gross profit c/d 6,50,000 19,50,000 19,50,000 To Administration Exp. 2,30,000 By Gross profit b/d 6,50,000 Selling & distribution Exp. 1,00,000 By Non operating Income:- 50,000 Expenses of Financing 20,000 Net profit 3,50,000 7,00,000 7,00,000

(15 Marks) (05 Marks) (15 Marks)

Following information was extracted from the costing records of a factory for the year ended 31.12.2007.

Raw materials    Rs. 11,000

Finished goods (800 tons) Rs. 8,800 Work in progress    Rs. 2,640

Raw materials    Rs.12,232

Finished goods(l 600 tons) Rs. ?

Work in progress    Rs. 15,200

Rs. 66,000 Rs. 55,000

Advertising, discount allowed and selling costs amounted to 75 paise per ton sold. 12800 tons of commodity were produced during the year you are required to ascertain (1) Cost of materials consumed (2) Cost of production (3) Cost of sales (4) Profit. (10 Marks)

b. Define the term working capital. Discuss the factors determining the working capital.

(10 Marks)

5    a. Define marginal costing. How does marginal costing differs from total cost? (05 Marks)

b. Raj Corporation ltd has prepared the following budget estimates for the year 2005-06.

Units sold    - 15000 units

Fixed expenses - Rs. 34,000.

Sales value    - Rs. 1,50,000.

Variable costs - Rs. 6 per unit You are required to:

(i)    Find the P/V ratio. Break -even point and margin of safety.

(ii)    Calculate the revised P/V ratio. Break -even point and margin of safety in each of the following cases.

a.    Decrease of 10% in selling price.

b.    Increase of 10% variable costs.

c.    Increase of sales volume by 2000 units.

d.    Increase of Rs. 6000 in fixed costs.    (15 Marks)

6    a. What do you mean by budgetary control? Discuss any three objectives of budgetary control.

(05 Marks)

b. The following information at 50% capacity is given. Prepare a flexible budget and forecast the profit or loss at 60%, 70% and 90% capacity.

Expenses at 50% capacity

Fixed Expenses    Rs.

Salaries    50,000

Rent Rates    40,000

Depreciation    60,000

Administrative Expenses    70,000 Variable Expenses

Materials    2,00,000

Labour    2,50,000

Others    40,000 Semi-variable Expenses

Repairs    1,00,000

Indirect labour    1,50,000

Others    90,000

It is estimated that fixed expenses will remain constant at all capacities. Semi-variable expenses will not change between 45% and 60% capacity, will rise by 10% between 60% and 75%o capacity a further increase of 5% when capacity crosses 75%.

Estimate sales values at various levels of capacity are 60 % capacity - Sales Rs. 11,00,000 70 % capacity - Sales Rs. 13,00,000

90 % capacity - Sales Rs. 15,00,000    (15 Marks)

7 a. What is capital budgeting? Examine its importance.    (05 Marks)

b. An enterprise can make either two investments at the beginning of the year 2006. Assuming the rate of return is 10%, evaluate investment proposal under (a) NPV method and

(b)Profitability index.

Cost of proposal -> Proposal A Rs. 25,000 Proposal B Rs. 30,000 Life    > Life of proposal A - 5 years Proposal B - 5 years

3 of 4

Year Cash flow after depreciation and Tax NPV@ 10% Proposal A Proposal A End of 1 year Rs. 1000 Rs. 500 0.91 2 years Rs. 2000 Rs. 1000 0.83 3 years Rs. 3500 Rs. 2000 0.75 4 years Rs. 2000 Rs. 2500 0.68 5 years Rs. 1000 Rs. 1800 0.62

Which proposal is preferable?    (15 Marks)

8 Write short notes on:    (20 Marks)

a.    Accounting concepts.

b.    Subsidiary books.

c.    Pay back period.

d.    Cost classification.

07MCA11A

First Semester MCA Degree Examination, Dec. 07 / Jan. 08

Accounting and Financial Management

Time: 3 hr s.    Max. Marks:100

Note : Answer any FIVE full questions.

1 a. Briefly explain the accounting concepts.    (05 Marks)

b. From the following trial balance of Mr. Rakesh, prepare a trading and profit and loss account for the year ending 31-12-2006 and a balance sheet as on that date:

Particulars	Debit (Rs.)	Credit (Rs.)
Rakesh Capital	-	24.000
Rakesh Drawings	4,500
Purchases and Sales	20,000	30,500
Stock (01-01-2006)	8,000	-
Returns inwards	1,500	-
Salary	4,200	-
Wages	1,200	-
Rent	350	-
Bad debts.	400	-
Discounts	700	1,900
Sundry debtors and creditors	14,000	10,000
Cash in hand	6,200	-
Insurance	700	-
Printing	150	-
Furniture	2,000	-
Machinery	5,000	-
Bills payable	-	2,500
Total	68,900	68,900

Adjustment:

i)    Closing stock was valued at Rs.7,000

ii)    Insurance was prepaid to the extent of Rs.60

iii)    Outstanding liabilities were: Salary Rs.200, Wages Rs.200

iv)    Make provision for doubtful debts at 5% on sundry debtors

v)    Calculate interest on capital 5% p.a.

vi)    Depreciate machinery at 5% and furniture at 10%

vii)Provide    for discount on creditors at 1%.    (15 Marks)

2 a. Define cost accounting and state its objectives.    (05 Marks)

b. The following figures have been extracted from the cost records of a company for the year

2006:

Rs. Direct materials 70,000 Direct wages 60,000 Factory overhead 30,000 Administrative overhead 48,000 Selling overhead 32,000 Distribution overhead 16,000 Profit 64,000

A work order has been executed in 2007 and the following expenses have been incurred. Materials Rs. 10,000 and wages Rs.6,000. Assume that the rate of factory overhead has gone up by 20%. The administrative overhead has gone up by 10%. Selling overheads are Rs.3,000 and distribution overheads are Rs.134. Prepare cost sheet and find out, at what price would be the product be sold so as to earn the same rate of net profit on the selling price.    (15 Marks)

Explain the limitations of ratio analysis.    (05 Marks)

The following information of a company is given:

Current ratio 2.5:1, Acid-test ratio 1.5:1, Current liabilities Rs.50,000.

Find out: i) Current assets ii) Liquid assets iii) Inventory.    (05 Marks)

M/s. Rakesh and Co. supplies you the following information for the year ending 31^st Dec. 2006: Credit sales Rs. 1,50,000; Cash sales Rs.2,50,000; Returns inward Rs.25,000; Opening stock Rs.25,000; Closing stock Rs.35,000. Find out:

i)    Inventory turnover when gross profit ratio is 20%

ii)    Inventory conversion period.    (05 Marks)

Particulars 31st March 2007 (Rs.) Annual credit sales 5,00,000 Debtors in the beginning 80,000 Debtors at the end 1,00,000

Days to be taken for the year: 360. Distinguish between absorption costing and marginal costing.

Per unit (Rs.) Direct materials 60.00 Direct labour 30.00 Variable overheads 20.00 Fixed overheads (Rs. 1,60,000) 16.00 Variable expenses (direct) 5.00 Selling expenses (20% fixed) 15.00 Administrative expenses (Rs.50,000 fixed for all levels of production) 5.00 Distribution expenses (20% fixed) 5.00 156.00

repare a flexible budget for production of 6,000; 7,000 and 8,000 units of articles, allowing clearly variable cost, fixed cost and total cost.    (15 Marks)

a.    What are the limitations of cash flow statement?    (05 Marks)

b.    From the following balance sheets of X Co. Ltd. for the year ending 31^st December 2005 and 2006 prepare:

i) A schedule of changes in working capital

ii) Statement of sources and application of			iinds.
Liabilities	2005 (Rs.)	2006 (Rs.)	Assets	2005 (Rs.)	2006 (Rs.)
Share capital	4,00,000	5,75,000	Plant	75,000	1,00,000
			Stock	1,21,000	1,36,000
Trade creditors	1,06,000	70,000	Debtors	1,81,000	1,70,000
Profit and loss account	14,000	31,000	Cash	1,43,000	2,70,000

a.    Explain the importance of CVP analysis.

b.    From the following particulars find out:

i)    P/V ratio

ii)    Break even point

iii)    Net profit from the sales of Rs. 1,30,000 and

iv)    Sales to be effected to earn a net profit of Rs. 10,000.

Particulars	Amount (Rs.)
Sales	1,20,000
Variable overheads	96,000
Gross profit	24,000
Fixed overheads	16,000
Net profit	8,000

(15 Marks)

a.    State the factors involved in determination of working capital.    (05 Marks)

b.    X & Co. is desirous to purchase a business and has consulted you, and one point on which you are asked to advise them is the average amount of working capital which will be required in the first years working. You are given the following estimates and are

Particulars Amount for the year Rs. i) Amount blocked up for works: Stocks of finished product stocks 5,000 Stocks of stores and materials 8,000 ii) Average credit given: Inland sales 6 weeks credit 3,12,000 Export sales 1.5 weeks credit 78,000 iii) Average time lag in payment of wages and other outgoings: Wages 1.5 weeks 2,60,000 Stocks and materials, 1.5 months 48,000 Rent, royalties etc. 6 months 10,000 Clerical staff, 0.5 month 62,400 Manager, 0.5 month 4,800 Miscellaneous expenses, 1.5 months 48,000 iv) Payment in advance: 8,000 Sundry expenses (paid quarterly in advance) v) Undrawn profits on an average throughout the year 11,000

Set up your calculations for the average amount of working capital required. (15 Marks)

8 Write short notes on the following:

a.    Capital budgeting process

b.    Methods of costing

c.    Trial balance

d.    Evaluation methods of investment proposals.    (20 Marks)

*****

3 of 3

USN    07MCA11B

First Semester MCA Degree Examination, Dec. 07 / Jan. 08

Mathematics

Time: 3 hrs.    Max. Marks: 100

Note: Answer any FIVE full questions, choosing at least TWO questions from each part.

PART-A

a. If sec A + taa A = a, prove that sin A =

b.    If A + B = 45 then show that (l + tan AXl + tan B) = 2. Hence deduce the value of tan^-1 22'.    (07 Marks)

c.    With the usual notations, prove that sin(A + B) - sin A cos B + cos A sin B.

a.    Provethat (l + cos 0 + i sin 0)ⁿ + (l+ cos0-isin0)ⁿ = 2ⁿ⁺¹.cosⁿ %-COS

b.    Prove that32cos⁶ 0 = cos60+ 6cos40+ 15cos20+ 10.

c.    Using DeMoivres theorem, solve the equation x⁴-x³+x²-x + l = 0.

	1 O i		"2 3 4
a. If A =	-1 2 1	andB =	1 2 3
	0 0 2		-1 1 2

b.    Express the matrix A as the sum of a symmetric and a skew-symmetric matrix.

4 2 -3'

A = 1 3-6

5 0 -7

c.    Find the rank of matrix "0 1-3 -f

0 0 1 1 3 10 2 1 1 2 0 _

a.    Test for consistency and hence solve 3x + y + 2z = 3 2x - 3y - z = -3 x + 2y + z = 4

b.    Find the eigen values and eigen Vectors of the matrix '1 1 3'

1 5 1 3 1 L

c.    Using Cayley - Hamilton theorem, find the inverse of the matrix 10 3

PART-B

If y = emx eos2x cos3x, find y_n.

1

, find y_n.

4x +8x + 3

If y =aeos|!ogx)+bsin(logx), prove that x¹y_n+2+(2n + l)xy_n+1+(n²+l)y_n = 0.

(06 Marks)

2a

Find the pedal equation of the curve = 1 - cos 0.

r

Find the angle between the curves r = sin 0 + cos 0 and r = 2 sin 0. Evaluate _lim * cos x - log(l ₊ x)

X->

_ , f 2x + 3 , Evaluate J-dx.

x* + x- 30 dx

+ x-x

1

dx siny + ycosy Solve (x² - y²)dx = xydy.

Solve (2xy + y - tan y)dx + (x² - x tan² y + sec² y)dy = 0.

Attachment: visvesvaraya-technological-university--vtu--2010-m-c-a--42085-1.pdf visvesvaraya-technological-university--vtu--2010-m-c-a--42085-2.pdf visvesvaraya-technological-university--vtu--2010-m-c-a--42085-3.pdf visvesvaraya-technological-university--vtu--2010-m-c-a--42085-4.pdf visvesvaraya-technological-university--vtu--2010-m-c-a--42085-5.pdf visvesvaraya-technological-university--vtu--2010-m-c-a--42085-6.pdf

Earning:   Approval pending.