University of Mumbai 2005 B.Com Management accounting - Question Paper

Test Papers / Previous ques. Papers of University of Mumbai
March – 2005

Time: three Hours
Marks: 100

Q.1. Brijesh started business by introducing capital of Rs. 1,00,000 on 1-4-2004. He has taken Term Loan from Bank of India of Rs. 4,00,000 at 12% interest & purchased premises of Rs. 3,00,000 & Furniture & Equipment of Rs. 1,50,000. His projected Trading & Profit & Loss Account for the 1st year ended 31st March, 2005 is as follows :-

Rs. Rs. Rs. Rs.
To Opening Stock -- By Sales
To Purchases Cash Sales 1,70,000
Cash Purchases 50,000 Credit Sales 8,50,000
Credit Purchases 6,50,000 10,20,000
7,00,000 Less : Returns 20,000 10,00,000
Less : Returns 10,000 6,90,000 By Closing Stock 50,000
To wages 60,000
To Gross Profit c/d. 3,00,000
10,50,000 10,50,000
To Administrative Expenses 60,000 By Gross Profit b/d 3,00,000
To Selling Expenses 1,00,000 By Profit on sale of Equipment 5,000
To Interest on Bank Loan 48,000 (Cost of Equipment sold Rs. 20,000)
To Depreciation on Equipment 30,000
To Net Profit 67,000
Total 3,05,000 Total 3,05,000

Prepare Cash Flow Statement for the year ended 31st March, 2005 as per AS-3 & compute cash & Bank Balance as on that date. Use Indirect Method. Balances on 31st March, 2005 expected are Debtors Rs. 1,50,000. Creditors Rs. 50,000. Last quarter Interest on Bank loan is not yet paid. Reconcile your ans by preparing projected Balance Sheet (in vertical form) as at 31st March, 2005. (16)

Q.2. The Balance Sheets of Chetan Ltd. as at 31st March, 2003 & 2004. (16)

31-3-2003 Rs. 31-3-2004 Rs.
Equity Share Capital (shares of Rs. 10 every fully called) 10,00,000 14,50,000
Less: Calls-in-Arrears (Rs. two per share) 5,000 --
9,95,000 14,50,000
Add: Share Forfeiture Balance (Rs. eight per share) 8,000 1,600
Paid up Equity Capital 10,03,000 14,51,600
8% Redeemable Preference Share Capital 5,00,000 4,00,000
Securities Premium 1,00,000 40,000
Capital Reserve (Net profit on Forfeited Shares reissued) -- 16,500
General Reserves 2,47,000 3,49,000
Profit & Loss Account 1,50,000 7,42,900
Loans 5,00,000 10,00,000
25,00,000 40,00,000
Fixed Assets (At cost Less Dep.) 12,00,000 20,00,000
Investments 3,00,000 4,00,000
Working Capital 10,00,000 16,00,000
25,00,000 40,00,000

Other info :-

(1) During the year Equity shares on which calls were in arrears have been forfeited.
(2) Part of the forfeited shares have been reissued at Rs. seven per share.
(3) Bonus shares are issued by using securities premium of Rs. 60,000 and General Reserve of Rs. 1,40,000.
(4) Depreciation on Fixed Assets for the year was Rs. 1,80,000.

Earning:   Approval pending.