BCom SY BCom Sem 3 BCom Sem 3 (2017 2018) Nov 2018 ACCOUNTING AUDITING V INTRO TO MGT ACCOUNTS Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q2 Figures to right indicates full marks
2. Q3 Working should form part of the answer
3. Q4 Simple calculator is allowed
4. Q1 A) Select the most appropriate answer [Any ten]. 10 marks
   • (1) The basic function of management accounting is
   • a) To serve Goverment
   • b) To serve the management in performing if function effectively
   • c) To serve the public
   • (2) In the vertical Balance Sheet, Bank Overdraft is considerd as
   • a) Current Asset
   • c) Fixed Asset all items of a financial statement as a percentage of some measure of
   • a) Commonsize statement
   • b) Comparative statement
   • c) Trend statement
   • (4) Satisfactory level of Current Ratio is
   • (5) shows how manytimes per period the company pays its average payable amount
   • (6) If cash flows are not uniform , the calculation of payback period takes a
   • a) Common profit
   • b) Favourable position
   • c) Cumulative form
   • (7) The current worth of a sum of money to be received at a future date is called
   • a) Future value
   • b) Present value
   • c) Salvage value
   • Q.P. Code :22501
   • (8) Total cash outflow is 85,000 and present value of total cash inflow is 75.000.The Net Present value is
   • (9) Using Profitability Index, the preference rule for selection of the machine is
   • a) The lower Profitability Index
   • b) The higher Profitability Index
   • (10) Operating cycle referes to the time required to convert the to be converted into products and the time it takes for those products to be sold and turned back into cash
   • a) Cash
   • b) Assets
5. Q11 Inventory is 20,000 and average stock held is 4,000. The stock holding period for 360 days in a year is
   • a) 72 days
   • b) 180 days
   • c) 5 days
   • (12) provides information about financial position of the company
   • a) Revenue Statement
   • b) Cashflow Statement
   • c) Balance Sheet
6. Q1 B) State whether the folowing statements are True or False. (Any ten) 10 marks
7. Q1 Financial statements of a company prepared at the end of the financial year provide information only to the owners of the business
8. Q2 Combined ratios show the relationship between two figures which are taken from the
9. Q3 Depreciation is a cash business expenditure
10. Q5 Capital Budgeting decisions are long term investment decisions
11. Q6 Trend Analysis shows the trend in the performance and position of an organisation
12. Q7 When the comparison. of financial data is over a number of accounting years relating to one company only it is called as inter company analysis
13. Q8 In preparing the estimate of Working Capital, Debtors cannot be valued at cost
14. Q10 Net Profit Ratio is a measure of profitability
15. Q11 Payback Method is a modern technique of Capital Budgeting
16. Q12 Public Deposits accepted by a company are a part of Shareholders Fund
    • Q.P. Code :22501
17. Q2 A) From the following details of A Ltd. prepare a Common Size Income Statement in vertical form suitable for analysis Revenue Statement for the year ending 31st March, 2017 Less : Cost of Sales ? Gross Profit (25% on Sales ) 4,00,000 Less : Tax(50%) on Profit 8 marks
18. Q2 B) From the following prepare a Comparative Balance Sheet of B Ltd. in a vertical form suitable for analysis 7 marks
19. Q2 You are required to prepare Trend Income Statement in vertical form suitable for analysis. Balances for the year ending on March of each year 15 marks
    • Q.P. Code :22501 Make provision for Income Tax at the rate of 40% on Net Profit Before Tax of each year Balance Sheet as on 31st 2017 Provision for Income Tax 20,000 | Prepaid Expenses 5,000 Other details of the company for the year 2016-17:
20. Q1 Sales (80% on credit)
21. Q2 Credit Purchases = 4,00,000
22. Q4 Dividend on Equity Shares = 15,000
23. Q1 Liquid Ratio
24. Q7 Return on Capital Employed 870961BE3051F1446071C8BA1E9A0BO1
    • Q.P. Code :22501
25. Q3 From the following details calculate: 15 marks
26. Q5 Operating Ratio Trading and Profit & Loss Account for the year ending on March,2017 To Opening Stock 1,30,000 | By Sales 65,00,000 To Purchases By Closing Stock 2,55,000 To Direct Expenses 1,70,000 | By Interest 15,000 To Office Expenses 1,38,000 To Selling Expenses 1,18,000 To Distribution Expenses 98,000 To Provision for Income Tax 95,000 To Net Profit 2,25,000
27. Q4 F Ltd. is considering the purchase of a machine. Two models, Model A and Model B are available each costing 1,50,000 Cash Inflows are expected as follows: With the discount factor of 12% , the Present Value of = 1 is as follows: Indicate the selection of the machine by applying 15 marks
28. Q1 Payback Period
29. Q2 Net Present Value at 12% discount factor 3). Profitability Index
    • Q.P. Code :22501
30. Q4 M/s G Ltd. has two different alternatives to buy - Machine X and Machine Y. The expected Earnings Before Tax of the two machines are as follows: Income Tax rate is to be considered at 20% on Earning Before Tax Initial Investment of Machine X is and of Machine Y is The scrap value of Machine X and Machine Y is 5,000 and 15,000 respectively Calculate Accounting Rate of Return on the basis of Average Investment 15 marks
31. Q5 M/s H Ltd. gives the following details to prepare the statement of Working Capital requirement for the year 2016-17 Projected Revenue Statement for the year 2016-17 Office and Administrative Expenses 1,80,000 During the year 2016-17 it is estimated that 15 marks
32. Q1 Raw materials will be in store for 30 days
33. Q2 Finished goods will be in stock after production for 45 days
34. Q3 The processing period will be 20 days
35. Q4 70% of purchases.and sales will be on credit of 20 days and balance on cash
36. Q5 Wages and Overheads will be paid at the time lag of 10 days
37. Q6 Office and Administrative Expenses will be paid at the time lag of 20 days
38. Q7 The expected Cash and Bank Balance will be = 78,000
39. Q8 Operations are evenly spread and expenses accrue evenly
40. Q9 Debtors are estimated at selling price
41. Q10 Company works for 300 days during the year
    • Q.P. Code :22501
42. Q5 M/s T Ltd. plans to produce 19,000 units during the year 2016-17 and to sell them for Cost structure of the product is Further details are available for the year 2016-17 : 15 marks
43. Q1 Raw materials equivalent to 1 month’s supply is stored in the godown
44. Q3 Finished goods equal to 3 month’s production are carried in stock
45. Q4 Customers get credit of 2 months and suppliers allow credit of months
46. Q5 Time lag in payment of wages and overheads is month
47. Q6 20% of sales are made on cash basis and balance on credit
48. Q7 Cash and Bank balance will be maintained at 10,000
49. Q8 Operations are evenly spread throughout the year. Expenses accrue similarly
50. Q9 Debtors are estimated at Selling Price Prepare the statement of Working Capital Requirement for the year 2016-17
51. Q6 A) Explain the meaning and functions of Management Accounting. 10 marks
    • B) Explain the techniques of Capital Budgeting. 10
52. Q6 Write short notes (Any Four). 20 marks
53. Q1 Tools of analysis of financial statements
54. Q3 Operating Cycle
55. Q4 Limitations of Ratio Analysis
56. Q5 Estimation of Working Capital requirement
57. Q6 Scope of Management Accounting

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