B.Com In Banking & Insurance (BCBI) Sem III 2023 2024 2024 MANAGEMENT ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (A) Fill in the blanks with appropriate answers (Any 8). 8 marks
   • 1. In Balance Sheet, securities premium should be shown the balance sheet of a
   • a. Share Capital b. Reserves and Surplus Current Fixed assets
   • 2. is not a Quick liability
   • 3.Bonus shares are also termed as
   • 4. produces information for managers within an Organization 7 5. Current Ratio serves as an index of solvency
   • a. long-term b. short-term c. immediate d. permanent
   • 6. Increase in the current assets would , the working capital
   • a. Increase b. Decrease c. Constant d. not change
   • 7. Payment of fixed dividend is known as
   • 8. Management Accounting is oriented
   • 9. Part of Income distributed to shareholders is known as
   • 10. In Common Size Income Statement the basis is
2. Q1 (B). State whether the following statements are True or False. (Any 7). information is used by lower level management 7 marks
   • 2.Companies must prepare their financial statements in vertical format only
   • 3.Ratio is the proportion between two numbers
   • 4. Investors are risk averse
   • 5.Current ratio includes stock and prepaid expenses
   • 6. Dividend is paid in kind
   • 7.Owners fund and owed fund are the same
   • 8.Management Accounting is known as Corporate Accounting
   • 9.Stock is a liquid asset
3. Q2 (A) Given below is the Balance Sheet of JOY-Ltd. Balance Sheet as on March 2014. Provision for Taxation 10,000 Cash and Bank 60,140 Rearrange the above Balance Sheet in vertical form 15 marks
4. Q2 (B) You are given the following information of MTT Ltd. Prepare Vertical Statement. Trial Balance As on 31/03/2014 Land and Building 76,50,000 Cash and Bank balance 3,00,000 Additional Information: Closing Stock as on 31/03/2014 was Rs. 12,00,000 15 marks
5. Q3 (A) From the following Balance Sheet calculate Balance-Sheet ratios. Balance Sheet as on 31* March, 2016 Preference Share Capital 4,00,000 | Plant and Machinery 10,00,000 Profit and Loss Account 5,00,000 | Stock 10,00,000 Creditors 6,00,000 | Short Term Investments 2,00,000 Taxes Payable 5,00,000 | Cash and Bank balances 5,00,000 15 marks
   • (B) Calculate the Market price of share as per Walter Model and Gordon Model. Internal Rate of Return 20% Cost of Capital 16% 15
   • (A) The following are the particulars of Ajay & Company for the year 2016-17. Calculate the working capital estimate for a sale of 1500 units per Weeks. (15)
   • 1. Cost Sheet
   • 2. Production and Sales take place evenly throughout the year
   • 3. Raw Material is purchased on eight weeks credit
   • 4. Raw Material remains in stock for eight weeks
   • 5. Processing period is of two weeks, wherein raw material, wages and overheads accrue evenly
   • 6. Finished Goods remain in stock for ten weeks
   • 7. Customers are given nine weeks’ credit,
   • 8. Time lag in payment of wages is four weeks
   • 9. Time lag in payment of overheads is two weeks
   • 10. Cash and Bank Balance is maintained at Rs. 1,05,000,
   • 11. Calculate Debtors on sales
6. Q4 (B) The following particulars appear in the balance sheet of Shrinivasan Limited Balance sheet as on 31% March 2021 2,00,000 shares of Rs. 100 each 00,00,000 Issued and Paid Up: 1,00,000 shares of Rs. 100 each Rs, 80 Reserves and Surplus: The company declared bonus: 15 marks
   • (1) Convert the partly paid shares as fully paid up shares and
   • (2) Issue of 10,000 fully paid up shares of Rs. 100 each to the existing shareholders. For this purpose, general reserve should be utilized to the minimum extent Pass necessary Journal Entries and Prepare Revised Balance-sheet as on 315t March 2021
7. Q5 (A) Explain in brief various tools of Management Accounting. 8 marks
   • (B) Explain various factors influencing Dividend Policy. 7
8. Q5 (C) Write a short note on (Any 3). 15 marks
   • 1. Classification of Accounting Ratios
   • 2. Advantages of vertical form of presenting financial statement
   • 3. Functions of controller and treasurer 5S. Elements of working capital

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