Saturday, September 29, 2018

2013
(August)
COMMERCE
Paper: 103
(Cost and Management Accounting)
Full Marks – 80
Time – Three Hours
The figures in the margin indicate full marks for the questions.
1. (a) “Cost Accounting is an unnecessary luxury for a business establishments.” Do you agree with this statement? Discuss.                                 16
Or
(b) What are the various techniques of cost control? Distinguish between cost reduction and cost control?           10+6=16
2. (a) From the following information, calculate the
1)      Effective kilometers per annum.
2)      Effective passenger kilometers per annum.
3)      Total cost of fuel.
4)      Cost of fuel per kilometer.
 Distance of one-way route Round trips per day Days operated in a month Seating capacity Seating capacity occupied Fuel consumption Rate of fuel = 40 kilometer = 3 = 25 = 50 passengers = 50% = 1 litre per 6 kilometer = Rs. 15 per litre

(b) A transistor manufacturer who commenced his business on 1st April 2011 supplies you with the following information and asks you to prepare a statement showing the profit per transistor sold.                                                        16
Wages and materials are to be charged at actual cost, works overhead at 75% of wages and office overhead at 30% of works cost. Number of transistors manufactured and sold during the year was 540.
Other particulars are –
 Materials per set Wages per set Selling price per set = Rs. 240 = Rs. 80 = Rs. 600
If the actual works expenses were Rs. 32,160 and office expenses were Rs. 61,800, prepare a Reconciliation Statement.
3. (a) What are the objectives of Financial Statement Analysis? Distinguish between Analysis and Interpretation of Financial Statements?                                      10+6=16
Or
(b) What are the Trend Ratios? Explain the techniques of computing Trend Ratios.                       6+10=16
4. (a) From the following information, prepare a summarised Balance Sheet as on 31st March 2010 (Your workings should form part of the answer).                                            16
 Rs. 1)      Working capital 2)      Reserve and surplus 3)      Bank overdraft 4)      Fixed assets / proprietor ratio 5)      Current ratio 6)      Liquid ratio 1,20,000 80,000 20,000 0.75 2.50 1.50
Or
(b) Discuss the ratios which assess the company’s debt capacity.                               16
5. (a) XYZ Ltd. sells its products on a gross profit of 20% on sales. The following information is extracted from its annual accounts for the year ended 31st March 2010:                                                     16
 Rs. Sales at 3 months credit Raw materials Wages paid – 15 days in arrears Manufacturing expenses paid one month in arrear Administrative expenses – one month in arrears Sales promotion expenses payable half yearly in advance 40,00,000 12,00,000 9,60,000 12,00,000 4,80,000 2,00,000
The company enjoys one month credit from the suppliers of raw materials and maintains 2 months stock of raw materials and one and half month finished goods. Cash balance is maintained at Rs. 1,00,000 as a precautionary balance, Assuming a 10% margin, find out the working capital requirements of XYZ Ltd.
Or
(b) Define ‘operating cycle concept’. What are the important factors which determine the working capital of a business? 6+10=16