B.Com In Banking & Insurance (BCBI) Sem III ATKT MANAGEMENT ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) Match the column (Any8) 8 marks
2. Q4 Sources Of Fund d) Reserves and surplus
3. Q6 Bank overdraft f)Reduction in par value of
4. Q1 b) State whether the following statement are true or False: (Any 7) 7 marks
5. Q1 A balacesheet tallies because of the double entry system of accounting
6. Q2 There is low cost, high risk and high profit in aggressive approach of working capital
7. Q3 A high gearing ratio represents a high proportion of debt to equity,
8. Q4 Inter firm analysis is used to compare the financial figures of two firms from the different
9. Q5 Inthe NPV method, the discounting rate is assumed to have known to the evaluator
10. Q6 Financial statements are reports prepared by a company’s management to present the financial performance and position at a point in time
11. Q7 Higher the stock working capital ratio, greater is the weakness of working capital
12. Q8 Net working capital is known as Current Assets = 9. In the periods of boom and depression more working capital is required than the other stages of cyclical fluctuations
13. Q10 Discounted payback period is a variation of payback period which accounts time value of money by discounting the cash inflows form a project
14. Q2 A cost sheet of a company provides the following particulars: (15 Element of cost ~ Amount per Unit The following further particulars are available:
15. Q1 Raw Materials are in stock on average one month
16. Q2 Materials are in process on an average half a month,
17. Q3 Finished goods are in stock on an average one month
18. Q4 Credit allowed by suppliers is one month
19. Q5 Credit allowed to debtors is two months;
20. Q6 lag in payment is one and half weeks
21. Q7 Lag in payment of overhead expenses is one month
22. Q8 One fourth of the output is sold against cash
23. Q9 Cash in hand and at bank is expected to be Rs. 25,000 You are required to prepare a statement showing the working capital needed to finance a level of activity of 1,04,000 units of production. Assume that production is carried on evenly throughout the year, wages and overheads accrue uniformly and a time period of 4 weeks is equivalent to a
24. Q2 The Board of Directors of Shaurya 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 Marks)
    • 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
    • e) 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
25. Q3 A) Authorised Capital: Equity Shares: 1, 00,000 @ 100 each ‘ Preference Share capital: 15 % redeemable preference shares @ 100 each 18% Convertible Preference shares @ 100 each Equity Share: 30,000 shares @ 100 each, fully paid up ; 19,800 Equity shares of Rs. 100 each, rs.80 Called up and paid up. Amount received on 200 shares forfeited for non payment of allotment and First call of Rs.30 and Rs.40 each, Final call was not made on those shares. Amount payable on application Rs. 10 per share Preference Share Capital: 15 % redeemable Preference Shares, 10,000 shares @100 each 18 % Convertible Preference Shares, 20,000 shares @ 100 each How will this be shown in the working schedules, assuming first year of operation? 8 marks
    • B) Prepare Fixed Assets scheduled Depreciation is charged on the original cost 7
26. Q3 C) Calculate the Market price of shares as per Walter Model and Gordon Model. Inter rate of return | 20 % Cost of Capital 8 marks
27. Q3 D)Being a Company secretary you asked to calculate the revised Share capital for following companies using the information below:(7Marks) Share capital Equity Capital to | Ratio
28. Q4 Following are the Profit And Loss Account and Balance Sheet of L & T Ltd. N Profit and Loss Account for the year ended December, 2004 ( 15 Marks) To cost of sales By Sales 4,00,000 To Gross Profit 1,20,000 To Expenses 20,000 | By Gross Profit b/d 1,20,000 To Net Profit To Provision for Tax 40,000 | By Net Profit b/d 1,00,000 To Net Profit Balance Sheet as on December, 2004 Share Capital (Rs. 10 each) 2,00,000 | Plant and Machinery 80,000 Reserve and Surplus 10,000 | Land and Building 20,000 Profit and Loss Account 30,000 | Stock 50,000 Cash at Bank 60,000 Calculate the following ratios and comment:
    • (c) Creditors Turnover Ratio (d) Return on Capital Employed
    • (e) Return On Proprietor’s Capital
29. Q4 Profit and Loss A/c for the year ended March( To Opening Stock 1,00,000 | 99,000 | By Sales 3,47,000 | 2,71,450 To Purchase 1,98,000 | 1,40,000 | Less: Sales Return 5,000 10,050 To Interest on By Profit on sale of To Sales Expense 4,000 6,000 By Dividend 12,000 9,800 To Office Rent 16,000 14,000 By Closing Stock 62,000 1,00,000 To Loss on Sale of To Loss by Fire 2,800 1,200 To Tax Provision 22,000 28,000 To Prop. Dividend 20,000 30,000 To Pref. Dividend 3,000 4,000 Prepare Vertical income statements Calculate the following ratios: 15 marks
    • e) Expenses ratio
30. Q5 a) Discuss the legal aspects associated with dividend decision. ) Discuss the factors determine working capital requirements. (7 Marks) 8 marks
31. Q5 Write Short Notes (Any3 ) 15 marks
32. Q1 Contingent liabilities 2.Tools of financial analysis 3.Balancesheet ratios 4.Operating Cycle 5.Gordon Model 6.Stock Split

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