B.Com In Banking & Insurance (BCBI) Sem III 2019 2020 Oct 2020 MANAGEMENT ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 All questions are compulsory subject to internal choice
2. Q2 Working notes form part of your answer
3. Q3 Use of simple calculator is permitted
4. Q1 a) Multiple Choice Questions: (Any 8) 8 marks
   • (1) Debentures is a securities
   • (a) Ownership
   • (b) Creditorship
   • (c) Government
   • (d) None of the above
   • (2) Which of the following is a tax-deductible expenditure?
   • (a) Interest on Debt
   • (b) Preference Dividend
   • (c) Equity Dividend
   • (d) All of the above
   • (3) Which of the following is an item of Current Assets?
   • (a) Bank Overdraft,
   • (b) Receivables
   • (c) Outstanding Expenses,
   • (d) Short Term loan taken
   • (4) Inventories are also termed as
   • (a) Stock
   • (b) Fixed assets
   • (c) Current Assets
   • (d) Shares
   • (5) Working Capital source of finance is a
   • (a) Short Term Source
   • (d) None of the above
   • (6) In the Balance - Sheet stock is indicated
   • (a) Opening
   • (b) Closing
   • (c) Average
   • (d) Finished Goods
   • (7) The abbreviation "NAV" in a mutual fund stands for
   • (b) Value
   • (8) The abbreviation "SIP" in Mutual Funds stands for
   • (9) Present Value of Re. 1 discounted @ 10% for "0" years is
   • (a) Zero
   • (10) Share Certificates can be issued in
   • (a) Dematerialized form
   • (b) Physical form
   • (c) Both (a) and (b)
   • (d) Credited to Bank A/c
   • b) State whether the following statements are true or false. (Any 7) 7
5. Q1 All current liabilities are quick liabilities
6. Q2 Bills payable is show under Quick Liabilities
7. Q4 The standard for current ratio is 2 marks
8. Q5 Owed funds are internal source of finance
9. Q6 Advance to suppliers are classified as Quick assets in vertical Statements
10. Q7 When the processing time is not given, calculation of stock of work-in-progress should be ignored
11. Q8 If wages ure paid at the beginning of every month for the previous month then the period of lag in payment of wages is one month Working capital requirement is high when supply of Raw Material is low
12. Q2 ABC Ltd. furnishes you their Balance Sheet as on 31* March, 2017 with some additional information. Balance Sheet as on 31* March, 2017 10% Preference Share Capital (at cost) 2,00,000 Reserves (at cost) 1,00,000 Profit and Loss Account 25,000 75,000 12% Debentures 1,50,000] Vehicle (at cost) 1,75,000 Provision for Income Tax 50,000} Advance Income-Tax 40,000 Provision for Dividend 60,000|Preliminary Expenses 5,000 15 marks
    • (a) Total Sales for the year Rs. 24, 00,000 (70% on Credit) Calculate the following ratios and offer your comment only on Current Ratio,
    • (i) Current Ratio
    • (iii) Return on Capital Employed
    • (vi) Creditors Turnover Ratio and Note: - Converting statement in vertical form is not expected
13. Q2 Comment on the position of Ltd. from the following: Profit and Loss Accounts and Balance Capital of Rs10 each 70,000 70,000 | Fixed Assets 90,000 92,000 Profit and Loss A/c For the year ended Transfer to Reserve 22,000 24,000
14. Q5 Stock Working capital ratio 6. Liquid ratio 7. Cost of sales to sales ratio
15. Q3 The following information is presented by Data and Sons Ltd. for the year 2016-17. Estimated Yearly
16. Q1 The company extends two months credit to the customers
17. Q2 The company maintains one month's stock of raw materials
18. Q3 The company maintains two month's stock of finished goods
19. Q4 The processing period is month
20. Q5 The company is allowed one month's credit by suppliers
21. Q6 Wages and Overheads are paid one month in arrears
22. Q7 The cash and bank balance is expected to be Rs. 16,250
23. Q8 There is regular purchase, production and sales cycle 9, During production, process wages and overheads accrue evenly
24. Q10 Debtors are to be calculated on sale price basis Prepare an estimate of Working Capital
25. Q3 A Factory produces 48,000 units during the year and sells them @Rs. 50 per unit. Cost structure of a product is as follows : (i5) The following additional information is available :
    • (1) The activities of purchasing, producing and selling occur evenly throughout the year
    • (2) Raw Materials equivalent to | 1/2 months supply is stored in godewn
    • (3) The production process takes 15 days
    • (4) Finished goods equal to one month's production are carried in stock
    • (7) Time lag in payment of wages and overheads is | month
    • (8)--Cash & Bank Balance is to be maintained at 15% of the working capital
    • (9) 25% of purchases are for cash Draw a forecast of working capital requirements of the factory
26. Q4 A) Being a Company Secretary you are asked to calculate the revised Share capital for following companies using the information below -- (8) Company Existing Total Proportion of Equity Capital to
27. Q4 R) Calculate the operating cycle for OM traders and JAY traders with the help of available information and also comment which company shall have higher working capital requirements. (7) Stock of Raw Material 90 2 Stock of Finished Goods 20
    • A) From the information furnished below details regarding Stock Splits are given calculate the Revised Number of Shares and Share Capital - (8) to ( Value per share
28. Q4 B) Calculate Dividend Payout Ratio from the following data and advise which company is feasible for Investment from shareholders point of (7) Provision for Tax 25% of Net Profit No of equity shares 2,50,000 QS. A. Discuss the functions of Management Accountant in the public Itd company. (8)
    • B. Discuss the steps involved in the issue of bonus shares as per SEBI guidelines 7
29. Q5 Write Short notes. (any 3) 15 marks
30. Q1 Importance of financial Statements
31. Q2 Profitability Ratios
32. Q3 Forms of Dividend
33. Q4 Components of Working Capital
34. Q5 Components of Return on Capital Employed

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