Punjabi University 2008-3rd Year B.Com MANAGEMENT ACCOUNTING-302 ( ) - Question Paper

Trade Debtors 1,03,000 96,000
Outstanding Expenses 13,000 12,000
8% Debentures 90,000 70,000
Depriciation Fund 40,000 44,000
Reserves for Contingency 60,000 60,000
P & L Account 16,000 23,000
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5,52,000 5,35,000
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Additional Information:

1. 10% dividend was paid in cash

two New machinery for Rs 30,000 was purchased and old machinery costing Rs 12,000 was sold
for Rs 4,000 Accumulate Depriciation was Rs. 6000.

3. Rs. 20,000, 8% Debentures were redeemed by purchase from open market at rate Rs 96 for a debenture of Rs. 100.

4. Rs. 36,000 investments were sold at book value.


part -B


3. What do you mean by Comparative Balance Sheet and Comparative Profit and Loss Account ?
discuss and illustrate.

4. From the subsequent info prepare Balance Sheet with as many details as possible

Current Ratio 1.75
Liquid Ratio 1.25
Inventory Turnover Ratio nine times
Gross Profit Ratio 25%
Debt Collection Period 45 days
Reserve and Surplus to capital 0.2
Turnover to Fixed Assets 1.2
Capital Gearing Ratio 0.6
Fixed Assests to Net Worth 1.25
Sales for the year Rs. 12 Lakh

(Assume 360 days in a year)

SECTION-C

5. What is Marginal Costing ? explain its advantages and limitations.

6. A company manufactures annually 10,000 units of a product at a cost of Rs. 4. per unit and there is a home market for entire production @ Rs. 4.25 per unit in 2006 .However, in 2007 there is fall in demand in the home market which can now consume 10,000 units only@ Rs.3.72 per unit. The analysis of the cost per 10,000 units is :-

Materials Rs. 15,000
Wages Rs. 11,000
Fixed Overheads Rs. 8,000
Variable Overheads Rs. 6,000

Foreign market can consume 20,000 units offered @ Rs.3.55 per unit . It is provided that for additional 10,000 units of the product (over initial 10,000 units) the fixed overheads will increase by 10%. Is it worthwhile to capture the foreign market ?

SECTION-D

7. What is variance analysis ? Why is it called as a tool of management?

8. What is Budgetary Control ? explain its main objectives.


SECTION-E

9 Write short notes on the subsequent :

(a) Cash Flow Statement

(b) Limitations of Financial Statements

(c) Turnover Ratios

(d) Limitations of Accounting Ratios

(e) Absorption Costing

(f) Break Even Analysis

(g) Zero Base Budgeting

(h) Responsibility Accounting

Earning:   Approval pending.