# M.Com Previous Year Question Papers: Cost and Management Accounting (August' 2008)

2008 (August)
Paper: 103
Full Marks: 80
Time: 3 hours

1.       (a) What is cost accounting? Discuss the nature and objectives of cost accounting.    5+6+5=16

Or
(b) Give the meaning of activity based costing. Narrate its advantages. Distinguish between Activity based costing and Conventional costing.   5+4+7=16

2.       (a) From the following data relating to a tempo compute the cost per running km.
 Particulars Amount Kms. Run (Annual) Kms. Run per litre Estimated life in Kms. Cost of vehicle Road Licence (Annual) Insurance (Annual) Garage Rent (Annual) Supervision (Annual) Driver’s wages per hour Cost of petrol per litre Repairs and Maintenance per km. Tyre allocation per km. 20000 25 120000 30000 1000 800 500 1500 5 2 1.50 0.75

You are to charge interest on the cost of vehicle at 5% per annum. The vehicle runs 25 kms. Per hour on average.  16
Or
(b) A certain product passes through three distinct processes before it is completed. The output of each process is charged to the next process       at a price calculated to give a profit of 20% on transfer price. The output of process III is charged to the finished stock account on a similar basis. There was no work-in-progress at the beginning of the year and overheads have been ignored. Stock in each process have been valued at the price cost of the process. The following data have been obtained at the end of 31st December, 2007:
 Particulars Process-I Process-II Process-III Finished Stock Direct Materials Direct Wages Stock (31.12.2007) Sales during the year 2007 4000 6000 2000 ------ 6000 4000 4000 ------ 2000 8000 6000 ------ -------- -------- 3000 36000
From the above information prepare:
(i)                  Process cost account showing profit element at each stage;
(ii)                Actual realised profit; and
(iii)               Stock valuation as would appear in the balance sheet.   10+3+3=16

3.       (a) From the following Balance sheet of A. Ltd., Prepare a position statement as on that date and comment on the financial position of the company:    16
Balance Sheet of A Ltd. As on 31st December, 2010
 Liabilities Amount Assets Amount Share Capital Authorised: Issued and Subscribed: 15000 equity shares of Rs.10/- each called up Reserves and Surplus: Capital reserve General Reserve Secured and Unsecured Loans Current Liabilities 150000 40000 30000 80000 45000 Fixed Assets: Plant and Machinery Other Fixed Assets Investments (Long Term) Current assets 105000 85000 25000 130000 Total 345000 345000

Or
(b)Explain trend percentages as a tool of analysis highlighting on methods of calculation, advantages, limitations and precautions to be taken.  5+5+6=16

4.       (a) The profit of a company is Rs. 50,000 after charging interest of Rs. 6000 on debentures and providing Rs. 24000 for taxes, the assets of the company consists of fixed assets Rs. 200000, current assets Rs. 600000 and preliminary expenses Rs. 30000, Discount on issue of debenture is Rs. 10000. Compute the return on capital employed.  16
Or
(b) What is ratio analysis? State the objects of Balance sheet ratios.  5+11=16

5.       (a) In calculation of figures for working capital projection, what are the time lag for payments to creditors for goods and time lag in payment of expenses and how they are calculated?   8+8=16
Or
(b) Show the classification of working capital on different basis, depending on the purpose of analysis.  16