Punjabi University 2007 M.Com Accounting and Finance FINANCIAL MANAGEMENT AND ACCOUNTING - Question Paper

Or
(b) Prepare Trading and Profit and Loss alc for the year ended 31st December, 1990 and
Balance Sheet as at that date from the subsequent Trial Balance of A.
Debit Credit
Rs. Rs.
Capital alc 50,000
Plant & Machinery 80,000
Sales 1,77,000
Purchases 60,000
Returns 1,000 750
Opening stock 30,000
Discount 350 800
Bank charges 75
Sundry Debtors 45,000
Sundry creditors 25,000
Salaries 6,800
Wages 10,000
Carriage inwards 750
Carriage outwards 1,200
Bad debts provision 525
Rent, rates & taxes 10,000
Advertisement 2,000
Cash in hand 900
Cash at Bank 6,000
----------- ----------
2,54,075 2,54,075
----------- ----------
The subsequent adjustments needed
(i) Closing stock Rs. 35,000/-
(ii) Depreciation on plant at 6% p.a
(iii) Bad debts provision to be adjusted to Rs. 500/-



11. (a) From the subsequent details prepare statement of proprietory funds with as many details as
possible.
(i) Stock velocity 6
(ii) Capital turnover ratio (on cost of sales)
(iii) Fixed assets turnover ratio (on cost of sales)
(iv) Gross profit turnover ratio 20 percent
(v) Debtors' velocity two months
(vi) Creditors velocity 73 days.
The gross profit was Rs. 60,000. Reserves and surplus amount to Rs. 20,000. closing stock
was Rs. 5,000 in excess of opening stock.
Or
(b) ABC Ltd., has provided the subsequent particulars. You are needed to prepare cash budget for
the period April to June 2000.
(i) Credit Purchase Wages
Sales
2000
February 1,80,000 1,24,800 12,000
March 1,92,000 1,44,000 14,000
April 1,08,000 2,43,000 11,000
May 1,74,000 2,46,000 10,000
June 1,26,000 2,68,000 15,000
(ii) 50 percent of credit sales are realized in the month subsequent the sales and the
remaining 50 percent in the 2nd month subsequent.
Creditors are paid on the month subsequent the month of purchase.
(iii) Cash at bank on 1.4.20009estimated) Rs. 25,000.


12. (a) “Costs may be classified in a variety of ways according to their nature and the info
needs of the management”. discuss.
Or
(b) Write short notes on:
(i) Bin Card.
(ii) Bill of materials.
(iii) Fringe benefits.
(iv) Job card.


13. (a) subsequent info has been made available from the cost records of United
Automobiles Ltd., manufacturing spare parts.
Per Unit
Direct Materials
X Rs.8 .
Y Rs.6
Direct wages
X 24 hours at 25 paise per hour
Y 16 hours at 25 paise per hour
Variable overheads 150% of wages
Fixed overheads Rs. 750
Selling price
X Rs.25
Y Rs.20
The directors want to be acquainted with the desirability of adopting anyone of the subsequent
option sales mixes in the budget for the next period.
(i) 250 units of X and 250 units of Y
(ii) 400 units of Y only
(iii) 400 units of X and 100 units of Y
(iv) 150 units of X and 350 units of Y.
State which of the option you would recommend to the management
Or
(b) From the subsequent data, compute
(i) Labour cost variance
(ii) Rate variance
(iii) Efficiency variance
(iv) Mix v.ariance
(v) Labour sub-efficiency variance.
Standard true
Hours Rate Hours Rate
Skilled labour 10 3.00 9,000 4.00
Semi-skilled eight 1.50 8,400 1.50
Unskilled 16 1.00 20,000 0.90
The true production was 1,000 articles.

Earning:   Approval pending.