University of Mumbai 2006 B.A Economics Management Accounting - A%2Fc 3 - Question Paper

Management Accounting
April 2006
Time: three HoursMarks: 100
NB:
ques. No. one is compulsory and carries 20 marks.
Attempt any 5 questions, every carrying 16 marks from remaining ques..
Working notes should form part of your ans.
Proper presentation and neatness is essential.
Q.1 M/s. Rajesh & Co. provide you the subsequent info. Prepare trading and profit and loss account for the year ended 31st March, 2004 and balance sheet as on that date in as much detail as is possible. 20
Opening Stock Rs. 90,000
Stock Turnover Ratio 10 times
Net Profit Ratio on Turnover 15%
Gross Profit Ratio on Turnover 20%
Current Ratio 4: one
Long Term Loan Rs. 2, 00,000
Depreciation on Fixed Assets @ 10 Rs. 20,000
Closing Stock Rs, 1, 02,000
Credit period allowed by suppliers 1 month
avg. Debt collection period 2 months

On 31st March, 2004 current Assets consisted of stock, debtors and cash only. There was no bank overdraft. All purchases were made on credit. Cash sales were 1/3rd of credit sales.

Q 2. From the subsequent Balance Sheet and info of TNG Ltd., prepare fund flow statement and schedule of item wise modifications in working capital for the year ended 31-12-2005 :- 16
Balance Sheet

Liabilities 2004
Rs. 2005
Rs. Assets 2004
Rs. 2005
Rs.
Equity Share Capital 40,000 70,000 Land 80,000 80,000
P & L A/c 13,420 16,000 Buildings 40,000 36,000
General Reserve 13,180 14,200 Furniture 5,000 7,000
Long Term Loan 16,400 14,000 Debtors 12,200 16,600
Creditors 36,720 17,000 Bills Receivable 2,000 13,000
Bills Payable 15,100 5,800 Goodwill 19,000 16,000
Prov. for Tax 9,000 12,000 Cash 620 5,400
Proposed Dividend 15,000 25,000
1, 58,820 1,74,000 1, 58,820 1,74,000

Additional Information:
Additional land was purchased during the year at a cost of Rs. 1, 20,000 and later on sold at a profit of Rs. 20,000 during the year.
Furniture having book value of Rs. 2,000 was sold for Rs. 1,000.
An interim dividend of Rs. 5,000/- was paid during the year.
Income Tax paid Rs. 8,500/ .
Charged depreciation on Building Rs. 4,000 and Furniture Rs. 300/.
Proposed dividend for last year has been paid during the year.
Q 3. subsequent are summarized Balance Sheets of BDM Ltd. as on 31st Dec., 2004 Balance Sheet 2005. 16
Balance Sheet

Liabilities 2004
Rs. 2005
Rs. Assets 2004
Rs. 2005
Rs.
Equity Share Capital 2,00,000 2,50,000 Bank 35,000 16,000
12% Debentures 1,00,000 80,000 Stock 40,000 75,000
10% Preference Share Capital 50,000 80,000 Debtors 90,000 1,50,000
Bank Loan 70,000 1,10,000 Machinery 75,000 60,000
Reserves 20,000 25,000 Furniture 10,000 8,000
P & L A/c 50,000 60,000 Land 1,70,000 2,80,000
Creditors 60,000 75,000 Buildings 1,40,000 99,000
Bills Payable 40,000 33,000 Goodwill 30,000 25,000

Earning:   Approval pending.