LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.A. DEGREE EXAMINATION – CORPORATE SECR.
SUPPLEMENTARY EXAMINATION – JUNE 2007
CR 6600 - MANAGEMENT ACCOUNTING
Date & Time: 27/06/2007 / 9:00 - 12:00
Dept. No.
Max. : 100 Marks
SECTION - A
Answer all the questions.
10 x 2 = 20
1. What is net working capital?
2. Calculate Gross Profit Ratio from the following information.
Sales Rs. 1,00,000, Sales returns Rs. 20,000 and cost of sales Rs.50,000.
3. Define Cash Flow Statement.
4. What is Cash Budget?
5. A project costs Rs. 20,00,000 and yields annually a profit of Rs. 3,00,000 after depreciation at 12 ½ %
but before tax at 50%. Calculate pay-back period.
6. Define management accounting.
7. What is inventory control?
8. From the following particulars, prepare a production budget
Product
Sales (nits)
Estimated stocks (units)
(as per sales budget)
1-7-2001
1-7-2002
A
1,50,000
14,000
B
1,00,000
5,000
C
70,000
8,000
9. Define current liability.
10. From the following particulars calculate the Stock turnover ratio.
Opening stock Rs. 40,000
Closing stock Rs. 44,000
Sales Rs. 4,15,000
Gross profit ratio 20%
15,000
4,500
8,000
SECTION - B
Answer any FIVE questions.
5 x 8 = 40
11. Following is the Profit and Loss Account of Sundar Ltd.
Particulars
To Opening stock
To Purchase
To Manufacturing Expenses
To Office expenses
To Selling expenses
To Preliminary Exp. Written
off
To Net Profit
Rs.
50,000
1,25,000
12,500
15,000
12,000
3,000
57,500
2,75,000
Particulars
By Sales
Less Returns
By Closing stock
Rs.
2,60,000
10,000
2,50,000
25,000
2,75,000
Calculate: (a) Gross profit ratio
(b) Net profit ratio
(c) Operating ratio
(d) Inventory turnover ratio
12. Prepare a common size statement form the following balance sheets:
Balance sheets
1997
Liabilities
Share capital
Reserves
Debentures
Creditors
Bills payable
200
80
100
70
50
500
1998
250
100
80
95
75
Assets
Fixed Assets
Investments
Stock
Debtors
Bill receivable
600 Cash at bank
13. What are the objectives of budgetary control?
14. What are the advantages of ratio analysis?
1997
100
50
65
80
95
110
500
(Rs. in Thousands)
1998
120
60
75
90
105
150
600
15. You are required to calculate the following:
(a) Working capital turnover (b) Fixed assets turnover (c) Capital turnover.
The information available is as under:
Capital employed :
Rs. 4,00,000
Current assets :
Rs. 2,00,000
Current liabilities :
Rs. 40,000
Net fixed assets:
Rs. 2,50,000
Sales:
Rs. 5,00,000
Cost of sales:
Rs. 4,00,000.
16. What are the functions of management accounting?
17. From the following calculate cash from operations for the year 2000.
Particulars
31-12-1999 31-12-2000
Rs.
Rs.
Goodwill
50,000
40,000
Provisions for depreciation
75,000
80,000
P & L a/c balance (Cr)
50,000
75,000
Bills receivable
45,000
35,000
Outstanding salaries
10,000
4,000
Prepaid insurance
3,000
3,500
Debtors
45,000
35,000
18. A company produces two products X and Y. the following are the materials consumed for the production of
100 tons of output.
Product X
Product Y
Material
Quantity
Price
Quantity
Tons
Rs.
Tons
A
20
10 per ton
40
B
30
5 per ton
-C
40
8 per ton
20
D
20
20 per ton
30
E
5
50 per ton
20
During the quarter ended 31st march 2000, 500 tons of X and 400 tons of Y were planned to be produced.
Prepare a material consumption budget showing the total cost of material budgeted to be consumed for the
quarter.
SECTION - C
Answer any TWO questions.
2 x 20 = 40
19. From the following Balance Sheets of Sundaram Ltd., prepare a Funds Flow Statement.
Balance Sheets
Liabilities
Equity share capital
Pref. Share capital
General reserve
P & L A/c
Proposed dividend
Creditors
Bills payable
Provision for
taxation
1992
Rs.
3,00,000
1,50,000
40,000
30,000
42,000
55,000
20,000
40,000
6,77,000
1993
Rs.
4,00,000
1,00,000
70,000
48,000
50,000
83,000
16,000
50,000
8,17,000
Assets
Goodwill
Building
Plant
Debtors
Stock
Sills receivable
Cash in hand
Cash at bank
1992
Rs.
1,15,000
2,00,000
80,000
1,60,000
77,000
20,000
15,000
10,000
6,77,000
1993
Rs.
90,000
1,70,000
2,00,000
2,00,000
1,09,000
30,000
10,000
8,000
8,17,000
Additional information:
a. Depreciation : Plant – Rs. 10,000 and buildings Rs. 20,000 charged in 1993.
b. Income tax Rs. 35,000 was paid during 1993.
c. An interim dividend of Rs. 20,000 has been paid in 1993.
20. Given below the flexible budget at 60% capacity. Prepare a tabulated statement giving the budget figures at
75% capacity and 90% capacity.
When no indication has been given make your own classification of expenses between fixed and variable
overheads.
Expenses
At 60% capacity
Direct materials
1,60,000
Direct labour
40,000
Indirect material and spares
48,000
Depreciation
60,000
Indirect labour
40,000
Rent
12,000
2
Electric power (40% fixed)
Repairs and maintenance (40% variable)
8,000
20,000
Insurance on machinery
12,000
21. Prepare cash budget for the period April – June from the following dats.
Months
Rs.
February
March
April
May
June
Sales
Rs.
1,80,000
1,92,000
1,08,000
1,74,000
1,26,000
Purchases
Rs.
1,24,800
1,44,000
2,43,000
2,46,000
2,68,000
Wages
Rs.
12,000
14,000
11,000
10,000
15,000
(i) 50% of credit sales is realized in the month following the sale and the other 50% in the second month
following. Creditors are paid in the month following the month of purchase.
(ii) Wages are paid at eh end of the respective month.
(iii) Cash at bank – 1st April – Rs. 25,000.
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