2001 Hemchandracharya North Gujarat University M Tech Automobile 104 : Financial Accounting & Management Question paper
B-12704 Seat No.--------
First Year M.Sc. (CA & IT) Examination
May/June-2001
Financial Accounting & Management
Time : 3 Hours ] [Total Marks : 70
Instruction : (1) All question are compulsory.
(2) Figures to the right indicates marks of the corresponding questions.
(3) Show all necessary working clearly with respective example.
SECTION – I
1 The following trial balance relates to the Alfa Ltd.
As on 31-3-2001 Prepare final accounts : 12
Particulars Debit Credit
Rs. Rs.
Share capital ( 16000 equity shares
Each of Rs. 10) 1,60,000
Staff loan 10,000
Opening stock 4,000
Purchase and sales 90,000
Purchase sales and returns 2,000
Carriage inward 1,500
Carriage outward 2,000
Printing and stationary 4,000
Salaries 26,000
Land and building 1,40,000
Plant and machineries 50,000
Furniture 10,000
12% Term loan (From 1-4-2000) - 60,000
Commission 5,000
Discount allowed 5,000
Sales expenses 4,000
Traveling expenses 6,000
Interest and on Term loan 3,600
Debtors and creditors 20,000 18,000
Cash and Bank overdraft 1,900 4,000
3,80,000 3,80,000
Adjustments :
(1) The value of closing stock was Rs. 55,000
(2) Goods distributed as free samples not recorded in books Rs. 200.
(3) Provide depreciation on plant and machineries @ 15% and on furniture @ 10%.
(4) Salaries unpaid Rs. 4,000 and commission received in advance Rs. 100
(5) Provide 4% as provision for bad debts.
(6) The management has proposed 10% equity dividends.
2 From the following Balance sheets of XYZ Ltd. Make out :
(1) Statement of changes in the working capital and
(2) Statement showing the sources and
Application of funds :
Liabilities 31-12-'99 31-12-2000 Assets 31-12-'99 31-12-2000
Rs. Rs. Rs. Rs.
Share capital 10,00,000 11,00,000 Good will 50,000 40,000
General Land and
Reserve 2,00,000 2,30,000 Buildings 4,20,000 6,60,000
Profit and 1,10,000 1,10,000 Plant &
Loss A/c Machinery 6,00,000 8,00,000
Debentures 5,00,000 3,00,000 Stock 2,50,000 2,10,000
Creditors 70,000 3,00,000 Debtors 3,00,000 2,10,000
Provision for 40,000 1,10,000 Cash and
Tax
Provision for
doubtful debts 30,000 24,000 Preliminary Expenses 30,000 20,000
19,50,000 19,94,000 19,50,000 19,94,000
Additional information :
(1) During the year 2000 , a part of machinery
(2) Costing Rs. 7,500 (accumulated depreciation
(3) There on being Rs. 2,500) was sold for Rs.3,000.
(4) Dividend of Rs. 1,00,000 was paid during the year ended 31st December 2000.
(5) Income tax of Rs. 50,000 was paid during the year 2000
(6) Depreciation for 2000 was provided as follows :
Land and Building Rs. 40,000
Plant and machinery Rs. 50,000
OR
The Condensed balance sheet and profits and
Loss account of PQR Ltd. Are as under :
Balance sheet as on 31-03-2001
Liabilities RS Rs. Assets
Equity capital 1,00,000 Fixed assets (gross) 5,00,000
Reserves 2,25,000 Less : Accumulated
15% debenture 2,75,000 Depreciation 2,00,000
Current liabilities 1,50,000 Net fixed assets 3,00,000
Current assets 2,50,000
Inventories 2,50,000
Debtors 1,50,000
Cash and bank 50,000 4,50,000
7,50,000 7,50,000
Profit and Loss Account
For the year ended on 31-03-2001
Sales 9,50,000
Less : Cost of goods sold 7,20,000
Gross Profits 2,30,000
Less : Administrative exp. 60,000
Sales and distribution
Expenses 20,000
Depreciation 25,000 1,05,000
1,25,000
Add. Misc income 25,000
Profit before interest and taxes 1,50,000
Less : interest 30,000
1,20,000
Less : Taxes 50,000
Profit after taxes 70,000
Calculate the following ratios :
(1) Current ratio
(2) Quick ratio
(3) Gross profit ratio
(4) Rate of return on investments
(5) Debt – equity ratio
(6) Stock turnover ratio
3 (a) Answer the following : (any two )
(1) Define accounting state its function.
(2) Explain money measurement concept
(3) Briefly explain “Cash – book “ as a
Division of journal
(4) Discuss the limitations of ratio analysis.
(b) Distinguish between the following : (any one )
(1) Financial accountancy and management
Accountancy
(2) Transactions and events.
(c) Fill in the blancks : (any two)
(1) sales journal records all sales of goods.
(2) outstanding for salaries is account.
(3) Assets = Liabialites + Working capital = Current assets –
Section - II
4 Following details relates to the ABC Ltd. :
Current sales Rs. 3,00,000
Selling price = Rs. 50 per unit
Variables cost = Rs. 34 per unit
Total Fixed cost = Rs. 80,000
Answer the following :
(1) Calculate BEP in units and rupees.
(2) Calculate margin of safely at current sales
In units and rupees.
(3) P/V ratio.
(4) If selling price is increased by 20% and total
Fixed cost by 25% what will be the revised
BEP in units and rupees.
(5) Calculate the current year profits.
(6) What should be the sales in units and rupees
To get profit of Rs. 40,000.
(7) Selling price per unit, if break even point is
Brought down to 4,000 units.
5 Following details relate to the Satyam Ltd.
For March 2001 :
Standard for one unit
Material : 4 kg standard price Rs. 50 ………… 200
Labour : 50 Hours rate per hours Rs. 1 ……… 50
Standard cost per unit ……………………….. 2,50
Actuals
Actual production 100 units Rs.
Material used 390 Kg Rs. Per kg …………… 20,280
Labour 4920 hours rate per hour Rs. 1.10 …. 5,412
Calculate the following variances :
(1) Materials Price Variance (MCV)
(2) Materials Price Variance(LPV)
(3) Materials Usage Variance (MUV)
(4) Labour Cost Variance (LCV)
(5) Labour Rate Variance (LRV)
(6) Labour Efficiency Variance (LEV).
OR
5 Amita Ltd. Furnishes the following information
for 600 machine manufactured and sold during
the year, 2000 :
Materials consumed ………………………… 6,00,000
Direct wages paid …………………………… 9,00,000
Direct expenses paid ………………………… 1,50,000
Factory overhead expenses …………(fixed).. 3,00,000
Administrative overhead expenses (Fixed)…3,00,000
Selling and distribution exp. Variable ……… 90,000
Selling and distribution exp. Fixed …………. 2,70,000
Sales ………………………………………… 30,00,000
Company has accepted the tender for the Supply of 750 machines for the year 2001.
Material consumption will be Rs. 1500 and Wages Rs. 1800per machine. During 2001 the Factory overhead expenses will bear the same Percentage to direct wages as in 2000. There will Not be any change in direct expenses paid and Administrative overhead expenses incurred. In machine cost will remain as it was in 200. but In selling and distribution expenses (fixed) there Will be an increase of Rs. 90,000. These will be a rise of 20% in selling price of a machine in Comparison to 2000.From the above information prepare the Statement showing unit cost, total cost and profit
For the year 2000. also prepare a statement of Estimated profit for the year 2001.
6 (a) Answer the following : (any two)
(1) What is budget and budgetary control?
And write in brief, advantage of
Budgetary control.
(2) Define the cost accounting and state its
Usefulness to the business.
(3) Write uses of Break – even analysis in
Managerial decision – marking.
(4) Define standard costing and state its
Limitations.
(b) Write short notes on : (any one)
(1) Marginal costing
(2) Master budget
(c) State whether following statements are true
Or false : (any two)
(1) Sales minus cost t of goods sold gives us
Gross profits.
(2) Under standard costing the actual costs
Are compared with the historical cost
(3) When total fixed costs decrease , BEP
Increase
(4) Budgeting is the basis of forecasting.
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