24000840
QP CODE: 24000840 Reg No : .....................
Name : .....................
B.COM DEGREE (CBCS) REGULAR / REAPPEARANCE EXAMINATIONS, MARCH 2024
Sixth Semester
CORE - CO6CRT20 - MANAGEMENT ACCOUNTING
(Common to all B.Com Degree Programmes)
2017 Admission Onwards
2C9CC2BF
Time: 3 Hours Max. Marks : 80
Instructions to Private candidates only: This question paper contains two sections. Answer SECTION I
questions in the answer-book provided. SECTION II, Internal Examination questions must be answered in
the question paper itself. Follow the detailed instructions given under SECTION II
Part A
Answer any ten questions.
Each question carries 2 marks.
1. What is meant by Window Dressing ?
2. What is Performance Budgeting ?
3. Write a short note on Financial Statement Analysis.
4. List the objectives of Trend Analysis.
5. List four uses of Ratio Analysis.
6. Write a note on Secondary ratios.
7. What is Current ratio and state an ideal current ratio?
Compute Interest Coverage Ratio. Given; Net Profit after Interest and Tax Rs. 9,00,000; Tax rate
8.
40%; Long Term Debt of the company 20,00,000 ( Average interest rate 8%).
9. Write a short note on the concept of 'Flow of Fund'.
10. Compute Funds from Operations: Profit after tax: Rs. 53,000, Provision for Tax: Rs. 15,000,
Income tax paid: Rs 15,900, Depreciation Rs.5, 500.
11. What is meant by Cash Flow from Financing Activity ?
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12. A Company had the following balances:
PARTICULARS (Rs.)
Investments in the beginning 34,000
Investments at the end 28,000
During the year the company sold 40% of its investment held in the beginning of the year at a
profit of Rs. 8,400. Calculate Cash Flow from investing activity.
(10×2=20)
Part B
Answer any six questions.
Each question carries 5 marks.
13. Management Accounting has been evolved to meet the needs of the management'. Explain the
statement.
14. Explain the uses of Financial Statements.
15. Prepare a Comparative Statement of Profit and Loss from the following information.
Particulars 31-03-2018 31-03-2019
Net Sales 15,00,000 18,00,000
Cost of Goods Sold 9,00,000 10,00,000
Administrative expenses 1,20,000 1,50,000
Selling Expenses 1,80,000 1,90,000
Interest on Loan 50,000 60,000
Income Tax 1,25,000 1,45,000
16.
Calculate the Trade Payable Turnover Ratio and Average Payment Period.
Credit purchases during 2018 1,05,000
Purchases returns 5,000
Creditors on 1.1.2018 20,000
Creditors on 31.12.2018 10,000
Bills payable on 1.1.2018 4,000
Bills payable on 31.12.2018 6,000
17. From the following information, compute:
(a) Gross Profit Ratio
(b) Net Profit Ratio
(c) Operating Ratio
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(d) Operating Profit Ratio
Income Statement
Note
Particulars Current Year Amount
No.
I. Revenue from Operations 12,00,000
II. Other income -
III. Total Revenue (I+ II) 12,00,000
IV. Expenses:
Cost of materials consumed -
Purchase of Stock in trade 7,00,000
Changes in inventories of finished goods, Work in progress & stock in trade (40,000)
Employee Benefits expenses( Wages) 80,000
Finance Costs (Interest) 10,000
1
Depreciation & amortization expenses -
Other expenses(Administration & selling expenses) 40,000
Total Expenses 7,90,000
V. Profit before Tax (III-IV) 4,10,000
VI. Tax 1,10,000
VII. Profit after Tax (V-VI) 3,00,000
Notes to Account
Particulars Amount
1. Change in Inventories
Opening Stock 1,20,000
Closing Stock (1,60,000)
(40,000)
18.
The Balance Sheets of Texas Ltd as on 31/03/2018 and 31/03/2019 is given below;
31-12-2018 31-12-2019
I. Equity and Liabilities:
1. Share Holder's Fund
a) Share Capital 5,00,000 6,50,000
b) General reserve 74,000 78,000
c) Profit and Loss Account 86,000 94,000
2. Current Liabilities
a) Trade Creditors 1,87,000 1,90,000
b) Outstanding Expenses 13,000 16,500
c) Provision for Taxation 50,000 75,000
d) Proposed Dividend 50,000 65,000
Total Liabilities 9,60,000 11,68,500
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II. Assets:
1. Non-Current Assets
a) Fixed: Tangible Assets
i)Land and Building 4,75,000 4,17,500
ii) Machinery 2,20,000 3,98,000
iii) Furniture 8,500 7,650
2. Current Assets
i) Stock 1,33,100 1,86,500
ii) Debtors 1,08,500 1,15,300
iii) Bills Receivable 29,550
iv) Cash 14,900 14,000
Total Assets 10,60,000 11,68,500
Prepare a schedule of changes in working capital. Your assumptions will form part of the answer.
19. "Funds Flow Statement presents a decision view of business" Comment.
20.
Calculate Cash from Operations from the following:
I. Profit made during the year Rs.3,00,000 after considering the following items:
a. Depreciation – Rs.10,000
b. Amortisation of Goodwill – Rs.6,000
c. Transfer to General Reserve – Rs.8,000
d. Profit on sale of land – Rs.3,000
II. Following is the position of the current assets and current liabilities :
PARTICULARS 31st March 2019 31st March 2020
(Rs.) (Rs.)
Debtors 15,000 12,000
Creditors 10,000 15,000
Bills Receivable 8,000 10,000
Prepaid Expenses 2,000 8,000
21. XYZ Ltd. provides the following information. Calculate Cash Flow from Financing Activities:
PARTICULARS 31st March 2020 31st March 2019
(Rs) (Rs)
Equity Share Capital 15,00,000 10,00,000
10% Debentures …. 1,00,000
8% Debentures 2,00,000 …
Additional Information :
1. Interest paid on Debentures Rs.10,000.
2. Dividend paid Rs.50,000.
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3. During the year 2019-20, XYZ Ltd. issued bonus shares in the ratio 2:1 by capitalising
reserve.
(6×5=30)
Part C
Answer any two questions.
Each question carries 15 marks.
22. Prepare common size statement of profit and loss of AB Ltd from the following;
2018 2019
Particulars
( Rs '000) ( Rs '000)
Sales 500 700
Miscellaneous income 20 15
Purchases 325 510
Opening Stock 15 10
Closing Stock 10 8
Office Expenses 20 25
Selling Expenses 30 45
Interest Paid 25 30
23.
From the following particulars, draw up the Balance Sheet of the company:
Current Ratio 2.5
Quick Ratio 1.5
Net Working Capital Rs. 30,000
Stock Turnover Ratio
(cost of sales/ Closing stock) 6 times
Gross Profit Ratio 20%
Fixed Assets Turnover Ratio 2 Times
( Cost of Sales)
Debtors Turnover Ratio 2 Times
Fixed Assets to Shareholders Net worth 0.8
Reserves b& Surplus to Capital 0.5
Long-term Loans Rs. 15,000
24. Prepare Funds Flow Statement from the following.
31-03-2018 31-03-2019
I. Equity and Liabilities:
1. Share Holder's Fund
a) Share Capital 6,00,000 8,00,000
b) Profit and Loss Account 1,25,000 2,50,000
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2. Non-Current Liabilities
a) Debentures 2,00,000 3,00,000
b)Provision for Depreciation
i) Land and Building 20,000 24,000
ii) Plant and Machinery 30,000 35,000
3. Current Liabilities
a) Provision for bad and doubtful
6,000 3,000
debts
b) Trade Creditors 1,15,000 90,000
Total 10,96,000 15,02,000
II. Assets:
1. Non-Current Assets
a) Fixed: Tangible Assets
i) Plant and Machinery 4,00,000 6,45,000
ii) Land and Building 3,00,000 4,00,000
b) Intangible Assets
i) Preliminary Expenses 7,000 6,000
2. Current Assets
i) Stock 3,00,000 3,50,000
ii) Debtors 69,000 61,000
iii) Bank 20,000 40,000
Total 10,96,000 15,02,000
Dividends of Rs. 60,000 were paid during the year.
25. Following are the summarized Balance Sheet of Philips India as at 31st March 2019 and 31st
March 2018:
Particulars Note No. 31st March 2019 (Rs) 31st March 2018(Rs)
I. EQUITY AND LIABILITIES
1. Shareholder’s Funds
(a) Share Capital 13,50,000 13,50,000
(b) Reserves and Surplus 1 11,34,000 10,68,000
2. Non - Current Liabilities
Long Term Borrowings : 10% Mortgage Loan 8,10,000 ….
3. Current Liabilities
(a)Trade Payables (Creditors) 4,02,000 5,04,000
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(b) Provision for tax 30,000 2,25,000
TOTAL 37,26,000 31,47,000
II. ASSETS
1. Non- Current Assets
(a) Fixed Assets 9,60,000 12,00,000
(b) Non- Current Investments 1,80,000 1,50,000
2. Current Assets
(a) Current Investments 21,000 17,000
(b) Inventories 6,30,000 7,20,000
(c) Trade Receivables 13,65,000 6,30,000
(d) Cash and Cash Equivalents : Bank 5,70,000 4,30,000
TOTAL 37,26,000 31,47,000
Notes to Accounts:
31st March 2019 31st March 2018
Particulars
(Rs) (Rs)
1. Reserves and Surplus
General Reserve 9,30,000 9,00,000
Surplus A/C 2,04,000 1,68,000
11,34,000 10,68,000
Additional Information
1. Investments Costing Rs.24,000 were sold during the year Rs.25,500.
2. Provision for tax made during the year was Rs.27,000.
3. The interim dividend paid during the year amounted to Rs.1,20,000.
4. During the year, a part of the fixed Assets costing Rs.30,000 was sold for Rs.36,000. The
profits were included in the statement of profit and loss.
(2×15=30)
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