University of Mumbai 2006 B.A Economics Auditing

Office Overheads 50,000 Loans 1,50,000
Total 12,50,000 Total 12,50,000

Additional info :

Materials worth Rs. 4,00,000 were sent to site.
Out standing sub-contracting charges Rs. 20,000 at the year end.
Allocate 50% of Office overheads and 100% wages to contract.
Plant and Machinery were used for the whole year on contract and give depreciation @ 10%. p.a.
Partner A was entitled to salary of Rs. 20,000 for site supervision for the year. give the identical in Account
Contractee pays 75% of the work certified.
Partner A & B share profit and Losses in the ratio of six : four respectively.
At the end of the year, work uncertified valued at Rs. 10,000 and materials at site Rs. 20,000. Prepare Contract Account. Profit and Loss Account for the year ended 30-09-2004 and Balance sheet as on that date.
Q.7 Tea Estate Ltd. manufactures flavored Tea which passes through 3 processes. The subsequent particular are available for the year ended 30-06-2003:- 15
Particulars Process I Process II Process III
Raw Material (kg) 10000 4600 1500
Cost of Raw Materials Per kg (Rs.) five six eight
Direct Wages (Rs.) 24,000 18,000 12,250
Direct Expenses (Rs.) 15,200 10,736 8,590
Factory Expenses (Rs.) 20,960 6,000 4,255
Normal Loss (%) 4% 8% 5%
Weight Loss (%) 6% 2% NIL
Scrap Value Per kg (Rs.) 1.80 2.50 four
Output Transferred
to next Process 60% 50% NIL
Output Sold 40% 50% 80%
Selling Price of Output Per kg 14 16 17
Transferred to Finished Stock NIL NIL 20%

% of normal Loss and % of weight loss are based on total input in the process.
Prepare Process Account and Profit and Loss Account.
Q.8 (a) The XL Ltd. furnish the subsequent info :10 Ist Period IInd Period
Sales 2000000 3000000
Profit 200000 400000


From the above, compute the followings:
P/V Ratio
Fixed Expenses.
BEP
Sales to Earn Profit Rs. 5,00,000
Profit when sales are Rs. 15,00,000
(b) From the subsequent information, compute labour variances:- five
Standard for 100 units

500 Labour Hours

Rate Rs. 24/- Per Hour
true production

1000 units were produced.
Total wages paid Rs. 1, 30,000 for 5200 Hours.
Rate Rs. 24/- Per Hour Q.9 (a) From the subsequent particulars prepare cost sheet showing different elements of cost:-: 10
Opening Stock of Raw Materials Rs. 1, 10,000
Purchases of Raw Material Rs. 8, 25,000
Carriage Outwards Rs.28,500
Direct Wages Rs.4, 21,400
Direct Power Rs.25,840
tech. Directors Salary Rs.40,590
Factory Rent, Rates & Insurance Rs.10,140
Sale of Factory Scraps Rs.1,460
Depreciation on Factory Buildings Rs.75,200
Closing Work in Progress Rs. 1, 20,260
Factory Stationary Rs.12,340
Opening Stock of Finished Goods Rs.45,280
Opening Stock of Raw Materials Rs.36,920
Fees to Brand Ambassador Rs. 2, 00,000
Stationery and Printing Rs.12,200
Staff Salaries Rs. 6, 30,000
Trade Discount Rs. 1, 20,000
Office Rent Rs.60,000
Free Sample Expenses Rs.20,320
Closing Stock of Finished Goods Rs.50,240

Sales are made to earn profit @ 10% on Cost Price (b) From the following, prepare Reconciliation Statement of M/S XYZ and Company as on 30-6-2004: five
Net profit as per Financial Accounts Rs. 40,340.
Income Tax Provision made Rs. 30,000.
Material Purchases of 5,000 units were recorded in cost at standard cost Rs. 24/- per unit whereas in Finance it was recorded at true cost Rs. 22/- per unit.
Old Bad debts recovered Rs. 20,500.
Loss on sale of furniture was Rs. 4,120.
Q.10 Write short notes on any 3 : 15
(a) Classification of Costs.
(b) Material Purchases Requisition.
(c) Labour Idle Time.
(d) Advantages of Job Order Costing.

Earning:   Approval pending.