Osmania University (OU) 2010 M.Com Accounting and Finance Managerial Accounting - Question Paper

M.Com II SEMESTER May/June 2010
Managerial Accounting

Time:3hours
Max. Marks:80

SECTION-A
ans the subsequent all at 1 place in about 10 lines.
1.State the Managerial uses of Financial Statements.
2.State the significance of Ratio analysis.
3.State the Managerial uses of Funds Flow analysis.
4.Explain the objectives of Balanced score card.
5.What is meant by make or buy decision?

SECTION-B
ans all the ques. using internal option.
6 (a) discuss the significance of single and Multi-step Financial Statements
OR
(b) How to redraft the financial statements for the purpose of analysis.

7 (a) From the subsequent information, prepare a summarized Balance sheet.
Working Capital Rs.1,20,000; Reserves and Surplus Rs.80,000
Bank overdraft Rs. 20,000 ; Fixed Assets to proprietary funds Re.0.75
Current ratio=2.5
Liquid ratio=1.5
There are no long tern debts and intangible assets
OR
(b) From the subsequent information, prepare a comparative balance sheet and interpret the position.
Particulars
Assets:
Cash = 2008-118; 2009-10
A/C Rec= 2008-209; 2009-190
Inventory = 2008-160; 2009-130
Advances = 2008-32; 2009-13
Land & building = 2008-270; 2009-170
Plant & machinery = 2008-310; 2009-786
Furniture = 2008-29; 2009-48
Investments = 2008-46; 2009-59
Total Assets = 2008-1174; 2009-1406

Liabilities:
A/C Pay = 2008-255; 2009-117
Out standings = 2008-7; 2009-10
Debentures = 2008-50; 2009-100
Mortgages = 2008-150; 2009-225
Share capital = 2008-100; 2009-600
Reserves = 2008-312; 2009-354
Total Liabilities = 2008-1174; 2009-1406
[ NOTE: 2008 TOTALS ARE NOT GETTING TALLIED IN provided ques. ITSELF, MISTAKE BY UNIVERSITY PEOLPLE]

8(a) From the subsequent information, Prepare Funds flow statement.

BALANCE SHEET
Liabilities:
Preference shares= 2008-nil; 2009-10,000
Equity shares = 2008-40,000; 2009-40,000
General Reserve = 2008-2,000; 2009-2,000
P & L A/C= 2008-1,000; 2009-1,200
Debentures = 2008-6,000; 2009-7,000
Creditors = 2008-12,000; 2009-11,000
Bank O.D = 2008-12,500; 2009-6,800
Provision for tax = 2008-3,000; 2009-4,200
Proposed Dividend = 2008-5,000; 2009-5,800
Total liabilities = 2008-81,500; 2009-88,000

Assets:
Fixed assets = 2008-41,000; 2009-40,000
(-)Depreciation = 2008-11,000; 2009-15,000
Total = 2008-30,000; 2009-25,000
Debtors = 2008-20,000; 2009-24,000
Stock = 2008-30,000; 2009-35,000
Prepaid expenses = 2008-300; 2009-500
Cash = 2008-1,200; 2009-3,500
Total assets = 2008-81,500; 2009-88,000

OR
(b)From the subsequent information, prepare a Cash Flow Statement as per AS-3 using indirect method.
BALANCE SHEET
Liabilities:
Creditors = 2008-40,000; 2009-44,000
Loan from Mr.A = 2008-25,000; 2009-nil
Loan from Bank = 2008-40,000; 2009-50,000
Capital = 2008-1,25,000; 2009-1,53,000
Total liabilities = 2008-2,30,000; 2009-2,47,000

Assets:
Cash = 2008-10,000; 2009-7,000
Debtors = 2008-30,000; 2009-50,000
Stock = 2008-35,000; 2009-25,000
Machinery = 2008-80,000; 2009-55,000
Land = 2008-40,000; 2009-50,000
Building = 2008-35,000; 2009-60,000
Total assets = 2008-2,30,000; 2009-2,47,000
During the year, a machine costing Rs.10,000 (accumulated depreciation Rs.3,000) was sold for Rs.5,000. Depreciation further made on machine Rs.15,000. Netprofit for the year 2009 was Rs.45,000.

9(a) discuss the significance and limitations of ROI.
OR
(b) State the meaning and perspectives of score card.

10(a) compute the effect of change in sales mix from the subsequent data.
Sales(Rs) Product-M=40,000; N=50,000; O=20,000; P=10,000.
Variable cost(Rs)-M=24,000; N=34,000; O=16,000; P=4,000
Total fixed cost Rs.29,400

Sales mix changed to : Rs
M=30,000
N=44,000
O=40,000
P=6,000

OR
(b) A Company manufactures and sells 3 products A,B and C. The Selling price and cost of these products are provided beneath.
volume (units) – Product A=10,000; B=25,000; C=35,000
S.P per unit – A=18; B=10; C=30
V.C per unit – A=16;B=6; C=22
Total Fixed Cost Rs.2,10,000

Fixed costs are allocated on the basis of production units among 3 products. The plant is currently fully utilizes and every unit require identical manufacturing time. The product A is unprofitable and the sales manager is in favour of dropping it. provide suggestion about dropping of product 'A'.

Earning:   Approval pending.