Amrita Vishwa Vidyapeetham 2007 M.C.A Managing Finance And Accounts - Question Paper

M.C.A. Dec 2007
Managing Finance And Accounts

Time : 3 hours Maximum : 100 marks
ans any 5 ques..
All ques. carry equal marks.
1. Discuss the different ways of classification of costs.
2. What is budget? discuss briefly the salient features of sales budget and productions budget.
3. The subsequent transactions occur in the purchase and problem of a material :
2005 Jan. 1 Opening balance 500 units @ Rs. 4
Jan. 4 Issued 200 units
Jan. 5 Received 200 units @ Rs. 4.25
Jan. 12 Received 150 units @ Rs. 4.10
Jan. 15 Issued100 units
Jan. 19 Issued 100 units
Jan. 20 Received 300 units @ Rs. 4.50
Jan. 26 Issued 200 units
Jan. 30 Issued 250 units
From the above, prepare stores ledger account by adopting FIFO method.
4. With the subsequent ratios and further info provided below, prepare the balance sheet of X Ltd. which has only 1 class of share capital.
(a) Sales for the year — Rs. 20,00,000
(b) Gross profit ratio — 25%
(c) Current ratio — 1.5
(d) Quick assets (cash and debtors) ratio — 1.25
(e) Stock turnover ratio — 15 times
(f) Debts collection period — one months
(g) Turnover to fixed assets — 1.5
(h) Ratio of Reserve the Share Capital — 0.33 (i.e. 1/3)
(i) Fixed assets to Net worth — 0.83 (i.e., 5/6).
(The term ‘‘turnover’’ refers to cost of sales and the term ‘‘stock’’ to closing stock).
5. From the subsequent balance sheet of A Ltd. on 31st December 2002 and 2003 you are needed to prepare a fund flow statement :
Liabilities 2002 2003 Assts 2002 2003
Rs. Rs. Rs. Rs.
Share capital 1,00,000 1,00,000 Goodwill 12,000 12,000
General reserve 14,000 18,000 Buildings 40,000 36,000
Profit and loss a/c 16,000 13,000 Plant 37,000 36,000
Sundry creditors 8,000 5,400 Investments 10,000 11,000
Bills payable 1,200 800 Stock 30,000 23,400
Provision for Bills receivable 2,000 3,200
taxation 16,000 18,000 Debtors 18,000 19,000
Provision for Cash 6,600 15,200
doubtful debts 400 600
1,55,600 1,55,800 1,55,600 1,55,800
The subsequent additional info are also provided :
(a) Depreciation charged on plant was Rs. 4,000 and on building Rs. 4,000.
(b) Provision for taxation of Rs. 19,000 was made during the year 2003.
(c) Interim dividend of Rs. 8,000 was paid during the year 2003.
6. From the subsequent particulars of Mr. Kannan, prepare trading and profit and loss Account and balance sheet for the year ended 31st March 2004 :
Particulars Rs. Particulars Rs.
Capital 1,50,000 Sales 1,50,000
Cash 8,000 Carriage 1,000
Building 80,000 Fuel, gas 3,800
Wages 12,000 Sundry debtors 50,000
Salary 10,000 Sundry creditors 23,200
Rent and taxes 1,600 Sales return 3,600
Printing and stationery 1,400 Purchase return 3,000
Stock 1.4.2003 24,000 Bills receivable 4,000
Insurance premium 1,200 Advertisement 3,200
Machinery 24,000 Dividend 1,600
Drawings 8,000 Furniture 4,000
Purchases 1,00,000 Loan (Cr.) 12,000
Adjustments :
(a) Closing stock was valued at Rs. 28,000.
(b) Write off Rs. 2,000 as bad debts, give 5% for bad and doubtful debts. Make provisions for discount on debtors
at 2%.
(c) Provision for discount on creditors at 2%.
7. Larsen Ltd., plans to sell 1,10,000 units of a certain product line in the 1st fiscal quarter, 1,20,000 units in the 2nd quarter, 1,30,000 unit in the 3rd quarter and 1,50,000 units in the 4th quarter and 1,40,000 units in the 1st quarter of the subsequent year. At the beginning of the 1st quarter of the current year, there are 14,000 units of product in stock. At the end of every quarter, the company plans to have an inventory equal to one-fifth of sales for the next fiscal quarter.
How many units must be manufactured in every quarter of the current year?
8. Assuming that the cost structure and selling prices remain the identical in Period I and Period II :
Period Sales Profit
Rs. Rs.
I 1,20,000 9,000
II 1,40,000 13,000
Calculate :
(a) P/V ratio
(b) B.E. sales
(c) Profit when sales are Rs. 1,00,000
(d) Sales needed to earn a profit of Rs. 20,000
(e) Margin of safety in II period.

Earning:   Approval pending.