B.Com. (Accounting and Finance) SEM IV 2019 20 Oct 2019 ATKT MANAGEMENT ACCOUNTANCY Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) Match the following (Any 8) 8 marks
   • 2._| Plant and Machinery | b. | Tangible Asset Acid test ratio f._| Useful in decision making
   • 19. | Goodwill | Gives the idea of progress
2. Q1 B) State Whether the following statement True or False (Any 7) 7 marks
   • 1. Net profit ratio is a measure of profitability
   • 2. Own fund is external fund
   • 3. Depreciation is a selling expense
   • 4. In common size statement the capital employed is considered equal to 50%
   • 5. While calculating Working capital Creditors are calculated on Selling price
   • 6. Stock turnover ratio is measured in times Stock to working capital ratio = Working capital X 100
   • 8. Cash flow and Accounting profit are different
   • 9. A higher debt equity ratio is the safest financial position of the company
   • 10. Current ratio shows the financial condition of the Company
3. Q2 Following is the summarized Balance Sheet and Revenue statement of BMW Ltd for the ; Reserve and Surplus 20,000 | Current Assets 1,00,000 Less: Cost of Sales 1,10,000 You are required to calculate the following ratios and comment on:
   • (e) Operating Ratio (f) Return on Proprietors Equity
4. Q2 Following is the balance sheet of Wills Ltd as on 31" March, 2019. 10% Debentures 77,000 | Plant and Machinery 2,10,000 Equity Share Capital 2,50,000 | Furniture and F ittings 1,05,000 Profit and Loss A/c 1,30,000 } Investments 59,000 Income Received in Advance 10,000 | Bank 38,000 Provision for Tax 25,000 Preliminary Expenses 20,000 Accumulated Depreciation Land and Building 2,54,000 Plant & Machinery 35,000 | Discount on Shares 10,000 Furniture and Fitting 40,000 | Patents 81,000 You are required to prepare common size balance sheet (in vertical form) 15 marks
5. Q3 The Board of Directors of Alka Ltd require you to prepare a statement showing the working capital requirements forecast for a level of activity of 1,56,000 units of production. The following information is available for your calculation: (15)
   • a) Raw Materials are in stock on average one month
   • b) Materials are in process, on average two months
   • c) Finished goods are in stock, on average one month
   • d) Credit allowed by suppliers one month Time lag in payment from debtors — two months
   • f) Time lag in payment, of wages — 1 % months
   • g) Lag in payment of overheads — one month 20% of the output is sold against cash. Cash in hand and at Bank is expected to be Rs 60,000. It is being assumed that production is carried on evenly throughout the year. Wages and Overheads accrue similarly and a time period 4 weeks is equivalent to a month
6. Q3 The summarised balance sheet of A. J. Ltd for the years ended March, 2019 and March, 2018 were as follows: (15) Liabilities As on As on Assets As on As on Provision for 30 45 | Debtors 195 170 The following additional information is given to you:
   • a) Dividend amount of Rs. 30,000 was paid during the year
   • b) Provision for tax made during the year was Rs. 12,000 Machinery with a book value of Rs. 15,000 was sold at a loss of Rs. 3,000
   • d) Investments costing Rs. 10,000 was sold for Rs. 12,000
   • e) Depreciation provided Land and Building Rs. 5,000 Plant and Machinery Rs. 20,000 Prepare a Cash flow statement during the year ended March, 2002
7. Q4 Rearrange the Balance Sheet in Vertical Form and calculate the trend percentage taking 2017 figures as 100 and briefly comment on the same. (15y Balance Sheet as on December
8. Q4 From the following Profit & Loss A/c of G Ltd for the years 2018 and 2019, you are required to prepare comparative statements and comment on the performance of To Opening Stock 1,60,000 | By Sales 12,00,000 | 20,00,000 To Purchases 6,00,000 | By Closing Stock 2,40,000 6,00,000 To Factory Exp. 1,60,000 | 2,00,000 To Gross Profit c/d To Rent & Rates 16,000 20,000 | By Gross Profit 3,20,000 To Carriage 24,000} | By Interest 1,000} To Interest on 2,000 6,000 To Provision for To Net Profit - 69,000
9. Q5 A) What is Management accounting? Explain functions of management accounting? 8 marks
   • B) Difference between Management accounting and Financial accounting? 7
10. Q5 Write short notes on (Any 3) 15 marks
    • 3. Advantage of Ratio analysis
    • 4. Cash Flow
    • 5. Current Assets

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