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

Q. six subsequent financial statement for the year ended 31st March, 2005 are submitted to you by the accountant of Star Ltd. 16

Trading and Profit and Loss Account for the Year ended 31st March, 2005

Particulars Rs. Particulars Rs.
To Opening Stock 70,000 By Sales 16,60,000
To Purchases 15,30,000 By Closing Stock 1,60,000
( - ) Returns 30,000 15,00,000
To Gross Profit 2,50,000
18,20,000 18,20,000

To Depreciation 36,000 By Gross Profit 2,50,000
To Administration Expenses 50,000 By Interest 10,000
To Selling & Distribution Expenses 24,000
To Provision for Income-tax 40,000
To Proposed Dividend 16,000
To Profit Balance 94,000
2,60,000 2,60,000

Balance Sheet as at 31st March, 2005

Liabilities Amount
Rs. Assets Amount
Rs.
Share Capital 3,00,000 Goodwill 20,000
Profit and Loss Account 1,80,000 Cash in Hand 8,000
Proposed Dividend 16,000 Stock in Trade 1,60,000
Bank Overdraft 38,000 Sundry Debtors 1,78,500
Sundry Creditors 26,000 Land & Building 92,150
Provision for Depreciation 55,750 Plant & Machinery 1,28,600
Provision for Tax 40,000 Prepaid Expenses 1,500
Expenses on problem of Shares 7,000
Short Term Investments 60,000
6,55,7500 6,55,750

Rearrange the above statements in a form suitable for analysis and determine Net Worth, Quick Assets, Quick Liabilities, Operating Profit and Retained Earnings.

Q.7 From the subsequent Profit and Loss Account info for year ending 2004 and 2005 prepare Common Size statement. organize info in Vertical Form suitable for analysis 16
2004
Rs. 2005
Rs.
Sales 10, 00,000 15, 00,000
Closing Stock 2, 50,000 3, 00,000
Opening Stock 1, 50,000 2, 50,000
Purchases 3, 00,000 4, 50,000
Wages 2, 00,000 3, 00,000
Manufacturing Expenses 1, 00,000 1, 50,000
Administrative Expenses 50,000 50,000
Selling & Distribution Expenses 50,000 75,000
Loss on Sale of Furniture 25,000 0
Interest on Debenturess 10,000 10,000
Profit on Sale of Shares 50,000 0

(i) Stock at the end Rs. 40,000 more than the stock, in the beginning.
obtain Out:
(a) Cost of Goods Sold
(b) Gross Profit
(c) Net Profit
(d) Current Assets
(e) Capital
(f) Total Liabilities
(g) Closing Stock
(h) Total Assets
Q.8 From the subsequent data given by M/s Alpha Ltd. showing working capital requirements for the year ended 31st March, 2006: 16
(a) Estimated activity/operations for the year 2, 60,000 units (52 weeks).
(b) Raw material remains in stock for two weeks and production cycle takes two weeks.
(c) Finished Goods remaining in stock for two weeks.
(d) two weeks credit is allowed by suppliers.
(e) four weeks credit is allowed to Debtors.
(f) Time lag in payment of wages and overheads is two weeks every.
(g) Cash & Bank Balance to be maintained Rs. 25,000.
(h) Selling price per unit is Rs. 15.
(i) Analysis of cost per unit as follows:-
(1) aterial 331/3% of sales.
(2) Labour and overheads in the ratio of six : four per unit
(3) Profit is at Rs. five per unit.
presume that operations are evenly spread throughout the year; Wages and Overheads accrue similarly. Manufacturing process requires feeding of material fully at the beginning. Degree of work-in-progress is 50%. Debtors are to be estimated at selling Price.


Q.9 Write short notes on any four: 16
(a)Window dressing of current ratio.
(b)Uses of ratio.
(c)Cash from operating activities.
(d) MIS report.
(e) Limitation of financial statmentsts.
(f) Cost of goods sold.

Earning:   Approval pending.