C30255
C30255
FIFTH SEMESTER B.Com. DEGREE EXAMINATION, NOVEMBER 2017
(CUCBCSS-UG)
BCM 5B 07-ACCOUNTING FOR MANAGEMENT
Time: Three Hours Maximum: 80 Marks
Part A
Answer all questions.
Each question carries 1 mark.
(A) Fill in the blanks :
1.Cash flow statement reveals the effects of transactions involving movement of…………….
2. Building sold on credit is…………...of funds.
3. Debt equity ratio is a ………… ratio.
4. ………….. is known as 100 % statement.
5. ………….. is the cost of producing one additional unit of output.
(B) Multiple choice :
6. Management accounting rearranges for management control, data provides by ;
(a) Financial accounting. (b) Cost accounting.
(c) Revaluation accounting. (d) HR accounting.
7.The current ratio of a company is 2: 1. Which of the following suggestion would improve
the ratio :
(a) To give interest bearing promissory note to a creditor.
(b) To purchase stock for cash.
(c) To borrow money on an interest bearing promissory note.
(d) To sell a motor car for cash at a slight loss.
8. Sale of long term investment indicates
(a) Long term impact in investment.
(b) Source of funds.
(c) Application of funds.
(d) Changes in current income.
9. Which one is a investing activity?
(a) Cash sale of goods in trade.
(b) Interest received on investments.
(c) Interest paid on debentures.
(d) Cash payment of dividend.
10. At break-even point fixed cost will be:
(a) Equal to Variable cost. (b) Equal to fixed cost.
(c) More than fixed cost. (d) More than variable cost.
(10 x 1 = 10 marks)
Part B
Answer any eight questions.
Each question carries 2 marks.
11. What do you mean by average analysis
12. Define Angle of incidence.
13. List out liquidity ratios.
14. What do you mean by dynamic analysis ?
15. What is key factor ?
16. Calculate P/V ratio if Sales Rs. 5,00,000 from 10,000 units, variable cost Rs. 25 per unit
and fixed cost Rs. 1,00,000.
17. Calculate trend percentage from the following figures of the company taking 2011 as the
Base:
Year …….. 2011 2012 2013 2014 2015 2016
Sales (*000) ......... 3,000 4,000 4,800 5,600 7,000 8,000
Profit (*000) ……. 500 800 1,000 1,500 2,000 2,400
18. Calculate stock turnover ratio from the following :
Opening stock-Rs. 30,000. Closing Stock-Rs. 20,000.
Purchases-Rs. 1,00,000. Direct expenses-Rs. 10,000.
19. Calculate working capital from the following :-
Rs.
Stock 1,50,000
Debtors 1,40,000
Fixed Assets 2,00,000
Cash 60,000
Creditors 2,00,000
Bills payable 1,00,000
20. The quick ratio of a company is 1.5: 1, if working capital is Rs. 10,000 calculate value of
stock.
(8 x 2 = 16 marks)
Part C
Answer any six questions.
Each question carries 4 marks.
21. What are the limitations of ratio analysis ?
22. From the following calculate the value of debtors:-
Total sales Ra. 6,00,000
Cash sales- Ra, 2,00,000
Debtors velocity 30 days Bills receivable-Rs, 13,333 ; and no. of working days in A year
360.
23. From the following figures calculate (a) Capital turn over ratio (b) Fixed asset turnover
ratio : and ; (til) Working capital turnover ratio,
Gross profit is 20% of sales--Ra. 15,00,000
Current asseta-Ra. 4,00,000 ; and
Current liabilities- Rs. 2,00,000 ;
Fixed assets (gross)-Rs. 5,00,000 ;
Depreciation is- Ra. 1,00,000.
24. Calculate BEP and new BEP when selling price is increase by Rs. 4 from the following
details :
Sales Ra. 25 per unit, Variable production cost Rs. 10 Ra. 4 per unit, variable
administration cost R$. 4 per unit, variable administration cost per unit and fixed cost
Re. 1,20,000.
25. A manufacturing company produced 10,000 units during the month is cost Ra. 10,000,
Direct labour amounted to Rs. 1,000 and of July 2017. Direct materials variable
overhead to Rs. 2,000. Fixed overshead for the current financial year were estimated
at Rs. 24,000. The whole production was sold at Rs. 2 per unit. Prepare a statement
showing marginal cost and profit or loss for the month break-even point.
26. Prepare a changes in working capital statement with the help of following data :
Particulars March 2016 March 2017
Cash in hand and at bank 6,600 15,200
Sundry Debtors 18,000 19,000
Sundry Creditors 8,000 5,400
Bills receivable 2,000 3,200
Bills Payable 1,200 800
Stock 30,000 23,400
Provisions for doubtful debts 400 600
27. 'The earnings of Bosco Ltd. for 2016 is given below, compute Earnings Per Share
(EPS), Earnings yield ratio and Price earnings ratio.
Profit before tax R. 24,46,000 and tax rate is 60 %.
Capital of the company is 9 % Preference shares of Rs. 10 lakhs and equity shares
Rs. 30 lakhs.
Reserve in the beginning of the year is Rs. 22 lakhs and proposed dividend 20 %.
28. What are the merits of Marginal Costing ?
(6 x 4 = 24 marks)
Part D
Answer any two questions.
Each question carries 15 marks.
29, A manufacture has planned his level of production at 50 % of his plant capacity of
30,000 units. At 50 % of the capacity, his expenses are as follows
Rs.
Direct labour 11,160
Direct materials 8,280
Variable and other manufacturing expenses 3,960
Total fixed expenses regardless of production 6,000
The home selling price is Rs. 2 per unit. Now the manufacturer receives a trade enquiry
from overseas for 6,000 units at a price of Rs. 1.45 per unit. If you were the
manufacturer, would you accept or reject the offer ? Support your statement with suitable
cost and profit details.
30. Prepare the Balance Sheet with the help of the following ratios
Total Assets/Net Worth : 3.5
Sales / Fixed Assets : 6
Sales/ Current Assets : 8
Sales/ Inventory : 15
Sales/ Debtors : 18
Current ratio : 2.5
Annual Sales : Rs. 25,00,000
31. From the following balance sheets of Mr. William. Prepare a Cash Flow Statement
Liabilities 2002 2003 Assets 2002 2003
Rs. Rs. Rs. Rs.
Capital 5,00,000 6,12,000 Land and Building 3,00,000 4,40,000
Sundry creditors 1,60,000 1,76,000 Plant and Machinery 3,20,000 2,20,000
Mrs. W's Loan 1,00,000 ……. Stock 1,40,000 1,00,000
Loan from Bank 1,60,000 2,00,000 Sundry debtors 1,20,000 2,00,000
Cash 40,000 28,000
9,20,000 9,88,000 9,20,000 9,88,000
Additional Information :
A machine costing Rs. 40,000 (accumulated depreciation Rs. 12,000) was sold for Rs.
20,000. The provision for depreciation on 31-12-02 was Rs. 1,00,000 and 31-12-03 Rs.
1,60,000. The net profit for the year 2003 was 1,80,000.
(2 x 15 = 30 marks)
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