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

Questions asked in this paper

1. Q1 (A) State Whether True or False.(Any 8) 8 marks
   • 1. Long term loans given by a bank is financial activity in cash flow statement of Bank
   • 2. Unclaimed dividend is contingent liability
   • 3. Advance paid is an item of non-quick asset
   • 4. If sales are against advance cash receipts only, then the working capital requirement will be high
   • 5. Acid test ratio depicts liquidity position of the company
   • 6. Fictitious assets are shown under tangible assets
   • 7. Machinery scrap is an example of wasting assets
   • 8. Accounting standards are required to be followed while preparing Management Accounting
   • 9. Amortization of share issue expenses is considered under non-operating expenses
   • 10. Common-size statement is a short cut for quick comparison of item in financial statements shown in Odd amounts
   • 1. Discount on issue of Debentures (a) Balance Sheet Ratio
   • 6. Calls received in advanced {f) Current Liability
   • 8. Issue of Rights Shares (h) Current Asset
   • (m) Operating Outflow
2. Q2 Summary Balance Sheet of star Ltd. for the year ended December, 2016 and 31" December Prepare Comparative Balance Sheet in Vertical from suitable for analysis
3. Q2 Following is the Balance Sheet of Pratikraj Ltd. as on March, 2017. Balance Sheet as on March, 2017 Profit and Loss Account 50,000 Debtors 75,000 Prepare a Common-Size Balance Sheet from the above in vertical form 7 marks
4. Q2 Calculate Trend Percentage from the following information extracted from financial statements of M/s. Pranita Ltd., after arranging in Vertical Form. (15) Balance Sheet as on March Income Statement for the year ended March Less: Cost of sales 30,000 36,000 36,000
5. Q3 Comment on the position of Commentary Ltd. from the following Profit and Loss Accounts and Balance Sheets after calculating following ratios: (15)
   • (3) Liquid ratio (7) Cost of sales to sales ratio
   • (4) Administrative'exp. to sales ratio (8) Selling expenses to sales ratio Capital of Rs 10 each 70,000 70,000 | Fixed Assets 90,000 92,000 Secured Loans 22,000 | Loans and Advances 52,000 40,000 Profit and Loss Account for the year Ended To Opening Stock 44,000 40,000 | 2,10,000 | 2,00,000 To Purchases 84,000 72,000 | By Closing Stock 46,000 44,000 To Factory Expenses 32,000 28,000 To Selling Expenses 6,000 10,000 To Tfd. To Reserve 2,000 2,000 To Income Tax 28,000 32,000 To Balance C/fd. 10,000 16,000
6. Q3 The summarized finat accounts of two companies are as follows: Revenue Statement for the year Less: Cost of sales 2,37,600 1,98,000 You are required to calculate the following ratios 15 marks
   • (4) Operating ratio. (5) Return on capital employed ratio
   • (6) Return on proprietor’s equity ratio. (7) Expenses ratio. (8) Net profit ratio
7. Q4 Following are summarized Balance Sheets of BDM Ltd. as on Dec, 2004 and 2005. 15 marks
   • A) Depreciation charged during 2005 was Rs. 4,000 on Furniture, Rs. 12,000 on Machinery and Rs
   • B) Part of Machinery was sold for Rs. 15,000 at a loss of Rs. 4,000 During 2005 interim dividend was paid Rs. 10,000 & Income Tax was paid Rs. 5,000
   • D) During the year part of the Building was sold at book-value You are required to prepare Cash Flow Statement as per AS-3(Use Indirect method)
8. Q4 From the following information provided by M/s. P & Co. Pvt. Ltd., Prepare a statement showing Working Capital requirements for the year 2013-14: (15)
   • A) Estimated sales for the year 2013-14 Rs 21,60,000
   • B) Estimated cost structure ratios to selling price Raw Materials 60%, Labour 20% and Overhead i0%
   • D) Raw Materials remain in stock for 2 months
   • E) Materials remain in process for 1 month
   • F) Finished Goods remain in stock for 1 month
   • G) Customers are allowed 2 months credit ) Time lag in payment of wages is one month
   • J) Time lag in payment of Overheads in half a month
   • K) Cash and Bank Balance is expected to be 25% of the Debtors
   • L) Provide a Margin of safety at 10%
   • M) Debtors are to be calculated at selling Price
   • N) During the manufacturing process Labour and Overhead accrue evenly
9. Q5 (A) Limitations of Ratio Analysis 8 marks
   • (B) Rewrite the Balance Sheet Ratio 7
10. Q5 Short Notes:- 15 marks
    • 1) Explain Cash flow from Investing Activity
    • 2) Explain Balance Sheet working capital & cash working Capital
    • 4) Objectives of financial Statement
    • 5) Explain Limitation Due to Application of Accounting Policies

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