Bachelor Of Management Studies (BMS) SEM III 2016 2017 Sep 2017 ACCOUNTING FOR MANAGERIAL DECISION Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 Answer any two (7.5 marks each) 15 marks
   • a. From the following information prepare Common size Balance Sheet Balance Sheet as on 31 March 2001 Outstanding Expenses 20,000 | Cash on Hand 15,000
   • b. Following are the Balance Sheets of Gayatri Ltd. As on December 2001 & 2002 Provision for Tax | 10,000 15,000 Debtors 46,500 77,250 You are required to prepare Comparative Financial Statements in Vertical Form VCD-300916 SYBMS (2) ACCOUNTING FOR MANAGERIAL DECISION
   • c. You are furnished with the revenue statements for the four years ended Dec Cost of Sales 32,000 — | 38,000 | 46,000 56,000 Interest on Loans 3,000 4,000 | 5,000 6,000 You are required to prepare trend analysis
2. Q2 Answer any two (7.5 marks each) 15 marks
   • a. Following are the Balance Sheets of ANC Ltd. As on March 2011 Calculate following ratios:- 1.Current Ratio Equity Ratio 4, Inventory to Working Capital Ratio
   • b. Calculate following Ratios
   • 2) Stock to working capital ratio
   • 3) Current ratio
   • 1) Debtors at the beginning of the year 13,750
   • 2) Debtors at the end of the year 11,000
   • 3) Total Sales 70,000 VCD-300916 SYBMS (3) ACCOUNTING FOR MANAGERIAL DECISION
   • 4) Cash Sales 20,000
   • 5) Creditors 4,000
   • 6) Bank overdraft 2,200
   • 7) Cash 1,500
   • 8) Stock. A 4,200
   • 9) Gross Profit 14,000
   • c. Explain uses of Ratio Analysis
3. Q3 Answer any two (7.5marks each). 15 marks
   • a. RM Ltd gives you the following balance sheet for the year ended Mar 2013 and Mar 2014. Prepare cash flow statement for the year ended 31 Mar 2014
   • 1. The company redeemed preference shares @ 10 % premium
   • 2. Interim Dividend paid during the year amount to Rs. 10,000
   • b .Following are the Balance Sheets of Anna Ltd.as on 31* March 2013 & 2014 VCD-300916 SYBMS (4) ACCOUNTING FOR MANAGERIAL DECISION
   • 1. Depreciation charged on Fixed Asset was Rs.50,000
   • 2. A piece of machinery costing Rs.12,000(book value Rs. 5,000)was sold at 60 % profit on book value during the year C Cash Flow Statement & describe classification of cash flows
4. Q4 Answer any two (7.5 marks each) 15 marks
   • a .You are required to prepare a statement showing the estimate of working capital required to finance the level of activity of 18,000 units per year from the following information obtained from the Books of BIJAL LTD Raw materials are in stock on an average for two months
   • 2. Materials are in process on average for half a month
   • 3. Finished goods are in stock on average for two months
   • 4. Credit allowed by Creditors is two months
   • 5. Credit allowed to Debtors is three months
   • 6. Lag in payments of wages is half month
   • 7. Cash on hand and at bank is expected to be Rs.10,500
   • b. Radiance Garments Ltd. Manufacturers readymade garments and sells them on credit basis through a network of dealers. Its present sales are Rs.60 Lakh per annum with 20 days credit period .The contemplating an increase in the credit period with a view to increasing sales Present variable cost is 70% of sales and the total fixed cost Rs. 8 lakh per annum. The company expects pretax return on investment @25%. Some other details are given as under Required: Which credit policy should the co. adopt? VCD-300916 SYBMS (5) ACCOUNTING FOR MANAGERIAL DECISION
   • C. Write short note on Factors determining working capital
5. Q5 Answer the following. Following are the Profit & Loss A/c and Balance Sheet of AB Ltd Profit & Loss Account for the year ended 31" March,2015 To Cost of Sales By Sales 4,00,000 To Gross Profit To Expenses . | By Gross To Net Profit c/d 1,00,000 To Provision for tax By Net Profit b/d To Net Profit 40,000 Balance Sheet as on March ,2015 Share Capital (Rs.10 each) 2,00,000 | Plant & Machinery 80,000 Cash at Bank 60,000 Convert Balance Sheet and Profit & Loss A/C into Vertical Form & Calculate following ratios and Comment on the position of AB Ltd 15 marks
   • 2. Creditors Turnover Ratio 7. Return on Capital Employed
   • 3. Return on Proprietors Fund 8.Gross Profit Ratio
   • 4.Net Profit Ratio 9. Stock to Working Capital Ratio
   • 5.Expenses Ratio

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