B.Com. (Financial Management) SEM III 2022 2023 Oct 2023 MANAGEMENT ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 A) State whether following statement are True or False (Any 8) 8 marks
   • i) Stock is a liquid asset
   • ii) In common size income statement profit is considered as 100%
   • iv) Working capital is estimated for the previous financial year,
   • v) The gross profit ratio isa measurement of short-term liquidity
   • vi) Sale of plant & machinery is an investing activity
   • vii) If we get more advance from customers, we need less working capital
   • viii) Permanent working capital is also known as core working capital
   • ix) Management accounting helps management to forecast and prepare plans for the future activities of business
   • x) In trend analysis 1“ year figures are considered as 100% trend of
2. Q1 B) Fillin the blanks: (Any 7) 7 marks
   • i) Capital gearing ratio is also known as (Capital structure ratio, Acid-test ratio
   • iii) Fixed interest-bearing funds do not (Equity share capital, Debentures,
   • v) is the standard ratio (Current ratio, quick ratio. proprietary ratio)
   • vi) Return on investment is also called as . (Return on capital employed, return on net worth, return on fixed assets
   • x) is a non-quick current asset. (Prepaid expenses, cash balance, debtors) VCD: SYFMG Sem 3-Management Accounting-Marks: 75-Time: 2 Hours
3. Q2 ) From the information given below prepare a Balance Sheet ina vertical form suitable for analysis: (15 marks)
4. Q2 ) Extracts from the financial accounts of Pritam Ltd. are given below: Balance sheet as on 31st March, 2018 Convert the balance sheet into vertical form and calculate the following ratios: 15 marks
   • c) Stock to working capital ratio Debt equity ratio SY FMG Sem 3-Management Accounting-Marks: 75-Time: 2 % Hours
5. Q3 ) Following is the Balance sheet of Pankaj Ltd as on 2021; marks) Balance sheet as on March, 2021 Prepare a Common-size balance sheet from the above in vertical form
6. Q3 ) Siddhi Manufacturing Limited presents the following information for Estimated Yearly Production and Sales = 60,000 units 15 marks
   • a) Raw Material- 5
   • b) Wages -3
   • c) Overheads - 2
   • d) Selling Price- 12
   • a) The company extends two months credit to the debtors
   • b) 2The company maintains one month's stock of Raw materials
   • c) The company maintains one month's stock of Finished goods
   • d) The processing period is one month
   • e) The company is allowed two months credit by suppliers
   • f) Wages and Overheads are paid one month in arrears
   • g) The cash and bank balance is expected to be equal to 25,000
   • h) There is regular purchase, production and sales cycle
   • i) During production process wages and overheads accrue ev enly Debtors are to be calculated on cost basis
   • k) 20% of the customers pay one month in advance Prepare statement showing an estimate of working capital VCD: SYFMG Sem 3-Management Accounting-Marks: 75-Time: 2 Hours
7. Q4 ) Following are the summarised Balance sheets of Mayank private limited as on March, 2016 and March 2017. (15 marks) Dividend (Interim) of 25,000 was paid during the year
   • 2. Depreciation on Premises is provided at 5%
   • 3. Machinery of 75,000 was acquired during the year
   • 4. Income tax provision for the year was = 75,000
8. Q4 A) Calculate Trend percentage from the following information extracted from Balance sheet of M/s. Surya Ltd after arranging in Vertical form. (08 marks)
9. Q4 B) Following are the Trading and Profit & Loss A/c of Pushkar Ltd. for the year ended March, 2017 and 2018. (07 marks) By closing stock By Gross Profit b/d ‘ed To Net Profit 22,500 Prepare a Comparative Income statement from the above in vertical form
10. Q5 A) Explain Revenue statement ratio. (08
11. Q5 B) Explain functions of management accountant. 7 marks
12. Q5 Write short notes on: (Any 3) 15 marks
    • i) Cash flow from investing activity
    • ii) Importance of management accounting
    • iv) Limitations of ratio analysis
    • v) Proprietary ratio

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