1 B.

COM III MANAGEMENT ACCOUNTING

TIME: - 3 Hrs MAX. MARKS: - 75

UNIT I Explain any how management accounting help in removing the limitation off financial accounting? Also explain the role of management accounting decision making? OR From the following information, you are required to prepare the Balance Sheet of Ekta Ltd. As on 31st March 2010. Current Ratio 1.75 : 1, Liquid Ratio 1.25 : 1, Stock Turn over 9 times, Gross Profit Ratio 25% , Debt Collection Period 1.5 months, Fixed Assets Turnover 1.2 times, Reserves and surplus to capital 0.2 : 1, Long term loan to capital 0.6 : 1 , Fixed assets to net worth 1.25 : 1, Sales for the year Rs. 1200000 UNIT II Prepare Cash Flow Statement by indirect method from the following balance sheet of Prakhar Limited as on 31st march 2009-10 Balance Sheet 31.3.200 Capital and Liabilities 9 31.3.2010 Equity Share Capital (Rs 10/- Each) 200000 230000 Share Premium ------6000 Profit & loss Account 76000 76000 Profit for the year -----110000 6% debentures 120000 60000 Creditors 111000 80000 Provision for Tax 24000 41000 Proposed Dividend 30000 44000 Accumulated on plant and machinery 72000 80000 633000 727000 Assets Land & Building 100000 110000 Plant & Machinery Cost 240000 290000 Shares in Susidiary Co. 80000 90000 Stock 72000 80000 Debtors 120000 128000 Cash at Bank 21000 29000 633000 727000 Additional information: 1. A machinery costing Rs. 60000 was sold during the year for Rs. 36000. The depreciated value of machine was Rs. 24000. the difference between the depreciated value and sale proceeds was transferred to P/L A/c 2. Income Tax paid during the year Rs. 30000 3. Debentures have been redeemed partially during the year at their face value OR

2 The following are the summaries of Balance sheets 2010. Liabilities 2009 2010 20000 Share capital 0 260000 Sundry creditors 39500 41135 Bills Payable 33780 11525 Bank Overdraft 59510 ---------Provision for Tax 40000 50000 Reserves 50000 50000 Profit & Loss A/c 39690 41220 46248 0 453880 of a limited company as at 31st Dec 2009 and 31st march Asstes Cash Sundry Debtors Sundry Advances Stock Land & Building Plant & Machinery Goodwill 2009 2500 85175 2315 111040 148500 112950 ---------462480 2010 2700 72625 735 97370 144250 116200 20000 453880

The following additional information is obtain from the general ledger (i) During the year ended 31st Dec 2010 an interim dividend of Rs. 26000 was paid (ii) The asset of another company was purchased for Rs. 60000 payable in fully paid shares of the company. These assets consists of stock Rs. 21640 machinery Rs. 18360 and goodwill Rs. 20000 In addition sundry purchase of plant were made totaling Rs. 5650 (iii) Income tax paid during thje year announced to Rs. 25000 (iv)The net profit for the year before tax was Rs. 62530 Prepare statement showing sources and application of fund for the year 2010 and a schedule setting out changes in working capital. UNIT III Marginal costing is essentially a technique of costing analysis and cost presentations discuss this statement with reference to application, merits and limitation of marginal costing. OR The following data relate to the production and sales of a company for a company 2010 Sale in unit 10000 units Loss Rs. 20000 Fixed cost Rs. 60000 Variable cost per unit. Rs. 16 On the basis of above determine a. How many unit should be sold to earn zero profit if rupee 1 per unit is spent extra on attractive packing? b. How many units should be sold if Rs. 10000 extra should be spent on advertising and an annual profit of Rs. 20000 is desired? c. How many units should be sold if sales price is reduced by 5% and a profit of Rs. 12000 is desired? UNIT-IV The following data relate to the working of a factory for the year 2010. Capacity worked at 50% Fixed Cost Salaries Rs 80000 Rs

3 Rent & Rates Depreciation Other Administrative Expenses Variable Cost Materials Labour Other Expenses Possible sales at various levels of working are:Capacity 60% 75% 90% 100% Sales(Rs) 1000000 1200000 1390000 1540000 40000 50000 30000 200000 Rs Rs 300000 200000 50000 550000

Prepare a flexible budget and show the forecast of Profit at 60%, 75%, 90% and 100% capacity operations. OR What do you understand by zero based budgeting? What are the steps involved in its preparation? What are its merits? UNIT-V In the brass foundry the standerd mixture consists of 70% copper and 30% of Zinc. The standard loss of production is 10% of input from the following (actual). Production in a month, calculate variances from the standard:: Copper 2900 kg @Rs14 2800 Kg (Standard) Zinc 1100 kg @ Rs 4 1200 kg (Standard) Total 4000 kg 4000kg Actual output 3690 kg OR In a factory a product requires following standard labour force:Skilled Unskilled Total Actual Labour force Skilled Unskilled Total Calculate labour cost variances. 3000 hrs @Rs 3.75 per Hour 4500 hrs @Rs 3.40 per hour 7500 hrs Rs 11250 Rs 15300 26550 2000 hrs @Rs 4/ - per Hour 4000 hrs @Rs 3.50 per hour 6000 hrs Rs 8000 Rs 14000 22000

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