Monday, February 03, 2020

Dibrugarh University B.Com Fifth Sem: Management Accounting Question Papers (Nov' 2019)


2019
(November)
COMMERCE
(General / Speciality)
Course: 503
(Management Accounting)
The figures in the margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
Time: 3 hours
1. (a) Write True or False:             1x4=4
1)         Management Accounting includes the development of a suitable system of internal audit for internal control.
2)         According to AS-5, cash flows for a period can be classified into three categories of cash inflow and cash outflow.
3)         Selling price is not based on marginal cost plus contribution.
4)         Long-term budgets should be prepared for control purposes.
(b) Fill in the blanks:                    1x4=4
1)         _______ decision limit the usefulness of Management Accounting.
2)         Budgeting may be said to be the act of _______.
3)         Selling goods _______ the marginal cost can be followed only in a short period.
4)         Income tax refund is an _______ of cash.
2. Write short notes on any four of the following:             4x4=16
a)         Zero-base budgeting.
b)         Overhead.
c)          Tools of Management Accounting.
d)         Performance budgeting.
e)         Make-or-buy decision.
f)          Differential cost.
3. (a) “Management Accounting is nothing more than the use of financial information for management purposes.” Explain this statement and clearly distinguish between Financial Accounting and Management Accounting.         6+8=14
Or
(b) Discuss, in detail, the functions of Management Accounting.          14
4. (a) From the following Balance Sheets of X Ltd. Co. as on 31st March, 2016 and 2017, prepare a Statement of Cash Flow as per AS-3:             14
Balance Sheets
Capital and Liabilities
31.03.2017
Rs.
31.03.2016
Rs.
Equity Share Capital
Preference Share Capital
Security Premium Reserve
Profit & Loss A/c
Secured Loans:
15% Debenture
Trade Payable
Provision for Depreciation
Provision for Doubtful Debts
2,00,000
37,500
30,000
36,000

1,25,000
55,000
24,000
8,000
1,50,000
50,000
-
(5,000)

1,00,000
25,000
15,000
5,000

5,15,500
3,40,000
Assets
31.03.2017
Rs.
31.03.2016
Rs.
Fixed Assets
Investment
Discount on Debenture
Inventories
Bills Receivable
Cash at Bank
2,50,000
22,500
8,000
1,00,000
28,000
1,07,000
1,00,000
20,000
10,000
75,000
88,000
47,000

5,15,500
3,40,000

Additional Information:
1)         Dividend paid during the year Rs. 18,000.
2)         Investment costing Rs. 5,000 was sold at a profit of 40%.
3)         Fixed Assets costing Rs. 10,000 (provision for depreciation Rs. 4,000) were sold for Rs. 8,500.
4)         Additional debentures amount to Rs. 50,000 were issued at par on 1st August, 2016. Interest on Debenture has been paid regularly.
Or
(b) Define the term ‘fund flow’. What are the purposes of preparing Funds Flow Statement? Write four limitations of Funds Flow Statement.                                                                 2+8+4=14
5. (a) Prepare a cash budget of six months up to December 31 from the information given below:      14
Cash balance on July 1 was expected to be Rs. 75,000.
Months
Sales
Material
Wages
Overhead
Production
Administration
Selling
Distribution
R & D
April
50000
20000
5000
2200
1500
800
400
500
May
60000
30000
5600
2400
1450
850
450
500
June
40000
20000
4000
2500
1520
750
350
600
July
50000
30000
4200
2300
1480
850
450
600
August
60000
35000
4600
2600
1510
950
550
700
September
70000
40000
5000
2700
1540
1000
600
700
October
80000
45000
5200
2900
1560
1025
625
800
November
90000
50000
5400
3000
1570
1075
675
800
December
100000
55000
5800
3200
1600
1150
750
800

Expected capital expenditure:
1)         Plant and Machinery to be installed in August at a cost of Rs. 20,000 will be payable on September 1.
2)         Extension to research and development department amounting to Rs. 5,000 will be completed on August 1 payable Rs. 1,000 per month from completion date.
3)         Under a hire-purchase agreement, Rs. 2,000 is to be paid each month.
4)         A sales commission of 5% on sales is to be paid within the month following actual sales.
5)         Period of credit allowed by suppliers 3 months, period of credit allowed to customer 2 months. Delay in payment of overheads 1 month. Delay in payment of wages 1/8 month.
Tax of Rs. 50,000 is due for payment on October 1. Preference share dividend of 10% on capital of Rs. 1,00,000 is to be paid on November 1.
10% calls on ordinary share capital of Rs. 2,00,000 is due on July 1 and September 1.
Cash sales of Rs. 1,000 per month are expected no commission payable.
Or
(b) Explain the meaning and objectives of sales budget. Distinguish between sales budgets and production budgets. 7+7=14
6. (a) “Marginal costing is a very useful technique to management for cost control, profit planning and decision making.” Explain.      14
Or
(b) From the following information, calculate (1) P/V ratio, (2) Break-even point and (3) Margin of safety, (4) If the selling price is reduced to Rs. 90 by how much is the margin of safety reduced?  3+3+4+4=14

(Rs.)
Total sales
Selling price per unit
Variable cost per unit
Fixed cost
3,60,000
100
50
1,00,000

(OLD COURSE)
Full Marks: 80
Pass Marks: 32
Time: 3 hours
1. (a) Write True or False:                             1x4=4
1)         Management Accounting deals with the effect and impact of cost on the business.
2)         Goods sold on credit in the source of fund.
3)         P/V ratio exhibits the percentage of contribution included in fixed cost and profits.
4)         Idle Time Variance = Idle time x Actual Rate.
(b) Fill in the blanks:                    1x4=4
1)         Cash Flow Statement is useful for _______ financial planning.
2)         Marginal costing is the aggregate of prime cost plus _______ overhead.
3)         Budgetary control is a _______ function.
4)         Standard cost is a _______ cost.
2. Write short notes on any four of the following:                             4x4=16
a)         Fund from operation.
b)         Deferential costing.
c)          Performance budgeting.
d)         Cost-volume-profit relationship.
e)         Production budget.
3. (a) Define Management Accounting. Discuss the scope of Management Accounting. 3+9=12
Or
(b) “Management Accounting has been evolved to meet the need of management.” Explain this statement.                 12
4. (a) From the following Comparative Balance Sheets of X Ltd. as on June 30, 2017 and June 30, 2018, you are required to prepare:-                             5+6=11
1)         A statement of changes in working capital;
2)         A funds flow statement;
Balance Sheets
Liabilities
2017
Rs.
2018
Rs.
Assets
2017
Rs.
2018
Rs.
Share Capital
Reserve Fund
Profit & Loss A/c
Trade Creditors
Bank Overdraft
Provision for Taxation
Provision for Doubtful Debts
1,80,000
28,000
39,000
16,000
12,400
32,000

3,800
2,00,000
36,000
24,000
10,800
2,600
34,000

4,200
Goodwill
Building
Machinery
Investment
Inventories
Debtors
Cash
24,000
80,000
74,000
20,000
60,000
40,000
13,200
20,000
72,000
72,000
22,000
50,800
44,400
30,400

3,11,200
3,11,600

3,11,200
3,11,600

Additional Information:
1)         Depreciation charged on Machinery was Rs. 8,000 and on Building Rs. 8,000.
2)         Interim dividend paid on January, 2018 was Rs. 15,000.
3)         Provision of Rs. 10,000 was made for taxation during the year ending 30th June, 2018.
Or
(b) Define Cash Flow Statement. How does Cash Flow Statement differ from a Funds Flow Statement?             4+7=11
5. (a) The following data are available in a manufacturing company for the period of a year:

(Rs. in lakhs)
Fixed Expenses:
Wages and salaries
Rent, rates and taxes
Depreciation
Sundry administrative expenses
Semi-variable expenses (at 30% of capacity):
Maintenance and repairs
Indirect labour
Sales department salaries, etc.
Sundry administrative expenses
Variable expenses (at 50% of capacity)
Materials
Labour
Other expenses

9.5
6.6
7.4
6.5

3.5
7.8
3.8
2.8

21.7
20.4
7.9

98.0
Assume that the fixed expenses remain constant for all levels of production; semi-variable expenses remain constant between 45% and 65% of capacity, increasing by 10% between 65% and 80% capacity and by 20% between 80% and 100% capacity.

(Rs. in lakhs)
50% capacity
60% capacity
75% capacity
90% capacity
100% capacity
100
120
150
180
200
Prepare the flexible budgets for the year and forecast the profit at 60%, 70%, 90% and 100% capacity.                      11
Or
(b) What do you understand by the terms ‘budget’ and ‘budgetary control’? Discuss the benefits of budgetary control. (2+3)+6=11
6. (a) “Marginal costing is essentially a technique of cost analysis and cost presentation.” Discuss the statement with reference to the application, merits and limitation of marginal costing.                   3+3+3+2=11
Or
(b) The sales turnover and profit during two years were as follows:
Year
Sales (Rs.)
Profit (Rs.)
2014
2015
1,40,000
1,60,000
15,000
20,000
You are required to calculate:-
1)         P/V ratio;
2)         Sales required to earn a profit of Rs. 40,000;
3)         Profit when sales are Rs. 1,20,000.                                 3+4+4=11
7. (a) Define standard costing. How does it help in keeping control over cost? Point out its limitations.    2+6+3=11
Or
(b) From the following data, calculate MCV, MPV, MUV and MMV:    3+3+3+2=11

Standard Mix
Actual Mix
Material X:
Material Y:
60 kg at Rs. 20
40 kg at Rs. 10
72 kg at Rs. 20
31 kg at Rs. 11


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