Nagar Yuvak Shikshan Sanstha’s
DATTA MEGHE INSTITUTE OF MANAGEMENT STUDIES
MBA-I SEM-II SESSIONAL EXAM (2013)
SUBJECT NAME
Time: 3 Hrs.
Marks: 70
Instructions:
(a) Each short answer question carries 2 marks.
(b) Attempt any 5 questions from Q2. to Q11. Each Question carries 10 marks.
Q1. Write short answer (Thirty Words). Attempt any 10.
a) Write in brief meaning and scope of Cost Accountancy.
b) Write in brief the various contents of cost sheet?
c) What are the various reasons for differences in the results shown by Cost Accounts and
Financial Accounts?
d) What is work certified in contract costing and how it is computed?
e) What are the various types of Profitability Ratios?
f) What is Marginal Cost Equation?
g) From the following compute cost of materials consumed: Prime Cost Rs. 4,77,000,
Direct Labour Cost Rs. 2,90,000, Direct Expenses Rs.
7,000.
h) Contract Price Rs. 8,00,000, Current Cost incurred to date Rs. 4,00,000, Cash
Received 80%. Calculate the amount of profit to be credited to Profit & Loss A/C by
considering the given inromatin: Value of Work Certified Rs. 2,00,000, Cost of work
uncertified Rs. 2,60,000.
i) X Ltd. has a current ratio of 3:1. Its net working capital is Rs. 2,00,000 and its inventory is
Rs. 2,20,000. Calculate liquid assets.
j) Selling price per unit Rs.10, Variable Cost per unit Rs. 6, Fixed Costs Rs. 2,000, Actual
Sales Rs. 20,000. Fixed Costs include Depreciation Rs. 300. Deferred Revenue
Expenditure w/o Rs. 100. Calculate B.E.P (in units), B.E.P. (in value).
k) X Ltd. provides you the following information:
Particulars
Budgeted
Expenses
March (Rs).
30,000
April (Rs).
50,000
May (Rs).
70,000
June (Rs).
90,000
Budgeted Expenses include depreciation amounting to Rs. 10,000. Calculate the amount
of expenses paid in the month o f April, May & June if the time lag in payment is 1/3
month.
l) Calculate the value of work certified in the following case: Cash received Rs. 4,80,000
being 80% of Work Certified.
m) Calculate the Debtors Turnover Ratio and Average Debt Collection Period for the year
2011-2012 from the following information
Sundry Debtors
Bills Receivables
Provision for Doubtful Debts
1.4.2011
Rs. 15,000
Rs. 5,000
Rs. 1,500
Total Sales Rs. 2,10,000, Sales Returns Rs. 10,000. Cash Sales Rs. 40,000.
31.3.2012
Rs. 45,000
Rs. 15,000
Rs. 4,500
n) Calculate sales in the following cases:
Cost of sales Rs. 1,20,000, Profit = 20% on sales.
o) Selling price per unit Rs. 10, Variable cost per unit Rs. 4, Fixed Cost Rs. 35,000.
Calculate B.P.E if Variable cost is decreased by 25%.
Q2. The following is the Trading & Profit & Loss A/c of Vikas Electronics for the
year ended on 31st Dec 2015.
Dr.
Particulars
To Material
To Wages
To Work Expenses
To Administrative Expenses
To Goodwill w/o
To Discount on Debentures w/o
To Net profit
Cr.
Rs.
12,000
4,000
12,000
12,000
4,000
3,000
28,000
75,000
Particulars
By Sales (350 Units)
By Finished stock (50 units)
By Interest received
Rs.
70,000
3,500
1,500
75,000
The company’s cost records show that:
i)
Works overhead have been recovered at 100% on prime cost
ii)
Administrative overheads have been recovered at 25% of factory cost
Prepare:
i)
A statement of cost indicating net profit; and
ii)
A statement reconciling the profit as disclosed by cost accounts and that
shown in financial accounts.
Q3. . From the following information, prepare a statement showing the cost and profit;
a.
b.
c.
d.
e.
f.
g.
h.
Cost of material @ Rs. 13 per unit.
Labour cost @ Rs. 7.50 per unit.
Factory overheads are absorbed @ 60% of labour cost.
Administration overheads are absorbed @ 20% of factory cost.
Selling Overheads are charged @ Rs. 2.50 per unit sold.
Opening stock of finished goods- 500 units @ 19.75
Closing stock of finished goods -250 units
Sales-10250 units at profit of 20% on sales.
Q4.
Mr. X. Undertook a Contract No. 501 for Rs. 5,00,000 on 1st July 2011. On 31st March 2012
when the accounts were closed, the following information was available.
Materials issued to site
Rs. 55,000
Direct expenses paid
Rs.
6,000
Site office Cost
Rs. 10,000
Plant
Rs. 2,00,000
Direct Expenses Prepaid at the end
Rs.1,000
Cost of Work Uncertified
Rs 20,000
Wages Paid
Rs. 18,000
General overheads
25% of Wages
Cost of Sub-contracts
Rs. 15,000
Wages accrued at the end
Rs. 2,000
Materials at site at the end
Rs. 5,000
Cash received Rs. 2,00,000 being 80% of work certified. The plant was installed on
the respective date of the contract and depreciation to be provided at 10% p.a.
Prepare Contract Account, Contractee’s A/c and show the relevant items relating to contract in
the Contractor’s Balance Sheet.
Q5. 1. Prepare Cash Budget of X Ltd. for April to June 2012 from the following
information.
a. Estimated Sales, Purchases & Expenses are as follows:
Particulars Jan Rs.
Feb Rs.
Mar Rs.
Apr Rs.
May Rs.
June Rs.
Sales
2,00,000 4,00,000 6,00,000
8,00,000 10,00,000 12,00,000
Purchases 1,52,000 3,06,000 4,60,000
6,08,000
7,56,000
9,04,000
Wages
24,000
30,000
36,000
48,000
60,000
72,000
Adm. Exp
30,000
40,000
50,000
60,000
70,000
80,000
Selling &
30,000
50,000
70,000
90,000
1,10,000
1,00,000
Dist Exp
b. Cash Sales are 20% of total sales.
c. 50% of credit sales are collected within one month and the balance in two
months.
d. Cash purchases are 25% of total purchases.
e. 50% of credit purchases are paid within one month and the balance in two
months.
f. No stock remains at the end of a month.
g. Commission on sales 10%.
h. The time lag in the payment of wages is one third of the month and that of Adm.
Expenses one month.
i. Administrative expenses for each month include depreciation amounting to Rs.
10,000.
j. 12% Rs. 2,00,000 Debentures of Rs. 100 each were issued on 1st Jan ( Half
yearly interest due on 30th June and 31st Dec).
k. Cash balance at the end of March Rs. 4,00,000.
l. 36,000 Equity Shares of Rs. 10 each were issued on 1st May at 5% premium.
Q6. From the following information prepare the Balance sheet:
•
Net profit after Interest, Tax & Preference Dividend Rs. 2,22,000
•
Tax Rate: 50%,
•
18% Preference Share Capital?
•
15% Debentures?,
•
Return on Capital Employed 50%
•
Return on Shareholder’s Funds 60%
•
Return on Equity Shareholder’s fund 74%
•
Current Ratio 2:1
•
Net Fixed Assets Rs. 9,00,000.
Q7. Calculate Margin of Safety in each of the following alternative cases:
 a. Profit Rs. 2,400 Contribution per unit Rs. 6
 B. Break even sales 1600 units, Actual sales 2000 units
 C. Profit Rs. 2,400, P/V Ratio 60%
 D. Break-Even Sales 30%, Actual Sales Rs. 20,000
 E. Profit Rs. 4,800, Total Contribution Rs. 19,200
Q8. What do you mean by the term budgetary control? What are the various objectives of
budgetary control system.
Q9. Write in detail the advantages and limitations of Cost Accountancy.
Q10. What do you mean by the term cost? Explain the various types of costs.
Q11. What do you mean by Operating Costing? Explain in brief about transport costing, hotel
costing, canteen costing and hospital costing.