B.Com In Banking & Insurance (BCBI) Sem III 2022 2023 Oct 2023 MANAGEMENT ACCOUNTING Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q1 (a) Match the following columns (any eight): 8 marks
   • 2) Balance Sheet
   • 4) Bottom lines d)
2. Q1 (b) State whether the following statements are True or False (any seven): 7 marks
   • 1. In the NPV method, the discounting rate is assumed to have known to the evaluator
   • 2. Inter firm analysis is used to compare the financial figures of two firms from the different industry and different period
   • 3. In the periods of boom and depression more working capital is required than the other stages of cyclical fluctuations 4, Discounted payback period is a variation of payback period which accounts fer time value of money by discounting the cash inflows from a project
   • 5. A high payout firm gives more current dividends but has less retained earnings
   • 6. The cash conversion cycle cannot be negative
   • 7. In a stock split the par value per share is reduced and the number of shares is increased
   • 8. Owned funds is an internal source of finance
3. Q2 The following are the particulars of Vijay & Company for the year 2016-17. Calculate the Working capital estimate for an annual sales of 78,000 units
   • a. Cost Sheet
   • b. Production and Sales take place evenly throughout the year
   • c. Raw material is on eight weeks credit
   • d. Raw material remains in stock for eight weeks
   • e. Processing period is of two weeks, wherein Raw material, Wages and Overheads ba Sem: Management Accounting Marks: 75 Time: 2% Hours
   • f. Finished Goods stock for Ten weeks
   • g. Customers are given 9 weeks credits
   • h. Time lag in payment of wages is four weeks
   • i. Time lag in payment of Overheads is Two weeks
   • j. Cash and Bank balance is maintained at Rs 1,05,000
   • k. Calculate Debtors on Sale
4. Q2 Radhika Manufacturing Limited presents the following information for 2016-17. Estimated Yearly production and sales = 60,000 units 15 marks
   • a. The company extends two months credit to the debtors
   • b. The company maintains one month’s stock of Raw material The company maintains one month’s stock of Finished Goods
   • d. The Processing period is one month The company is allowed two months credit by Suppliers. = Wages and Overheads are paid one month in Arrears
   • g. The Cash and Bank balance is expected to be equal to Rs. 25000/
   • h. There is a regular purchase, production and sales cycle:
   • i. During the production process wages and overheads accrue evenly
   • j. Debtors are to be calculated on a Cost basis
   • k. 20% of the customers pay one month in advance Prepare a statement showing an estimate of working capital
5. Q3 Following information is available relating to Quick Ltd. And Slow Ltd. 15 marks
   • (a) Earnings per share (b) P/E Ratio (c) Dividend pay-out ratio (d) Return on equity shares Assuming Net Profit Ratio is 10%. Comment on policy of the companies. As an analyst inform the investor which of the two companies are worth investing Sem: II] Management Accounting Marks: 75 Time: 2% Hours
6. Q3 (a) Being a Company Secretary you are asked to calculate the revised number of shares and Share Capital in for following companies using the information below: (8) Sr. No. | Company Existing Total Bonus Ratio | Stock Split Value Note: Stock split was initiated after bonus issue
7. Q3 (b) Calculate Dividend Payout Ratio from the following data. Provision for Tax (25% of Net Profit) Rs. 75,000 Number of Equity Shares 5,000 The company also had 10% Preference share capital of Rs. 2,50,000. (FV Rs. 100 each) 7 marks
8. Q4 Following are the Profit and Loss account and Balance Sheet of L&T Ltd. Profit and Loss Account for the year ended March, 2022 To Cost of Sales 30,00 To Gross Profit 1,20,000 To Expenses 20,000 | By Gross Profit 1,20,000 To Provision for Tax 40,000 | By Net Profit To Net Profit 40,000 Balance Sheet as on March, 2022 Share Capital (Rs. 10 each) Machinery 80,000 Reserve 10,000 | Land and Building 20,000 Profit and Loss Account 30,000 | Stock 50,000 Cash at Bank 60,000 SYBBI Sem: III Management Accounting Marks: 75 Time: 2% Hours Calculate the following ratios and comment: 15 marks
   • (c) Creditors Turnover ratio (d) Return on Capital Employed
   • (e) Return on Proprietor’s Fund,
9. Q4 Following are the Profit and Loss account of Chaywala Ltd. For the year ended Profit and Loss Account for the year ended March, 2018 To Opening Stock 2,00,000 | By Sales 10,50,000 To Purchases 5,75,000 Less: Return 50,000 10,00,000 Less: Return 25,000 5,50,000 | By Closing Stock 2,50,000 To Factory Rent 1,25,000 To Direct wages 1,25,000 To Gross Profit 2,50,000 To Office rent 12,500 | By Gross Profit b/d 2,50,000 To Salaries 25,000 | By Interest 17,500 To Selling Expenses 18,750 | By Profit on Sale of 1,250 To Discount Allowed 6,250 | Investment To Bank charges 2,500 To Loss on Sale of Assets 5,000 To Income Tax 45,000 To Net Profit 113,750 Calculate the following ratios and Prepare vertical Income Statement:
   • b. Operating Ratio
10. Q5 (a) Distinguish between own funds and owed funds. 8 marks
    • (b) Explain objectives of Management Accounting. 7
11. Q5 Write a short note on (any three): 15 marks

Read from the scan above, so a character or two may differ. The scan is the original.