BCom TY BCom Sem 5 BCom Sem 5 (2016 2017) Apr 2017 ATKT 26th Question Paper - Mumbai University | munotes

Questions asked in this paper

• (6) Figures to the right indicate full marks

1. Q1 (A) Fill in the blanks with most appropriate option and rewrite complete sentences serially (any eight) 8 marks
   • (1) In cash flow statement conversion of preference share capital into equity share capital is activity e Operating e None of these
   • (2) Decrease in bills payable will result in e Increase in operating profit e Decrease in operation profit e Increase in working capital e Decrease in working capital
   • (3) Payment for is financing activity Purchase of fixed assets Purchase of materials Under writing commission e Purchase of Government Bonds
   • (4) is/are not shown in cash flow statement as cash & cash
   • (5) Dividend Pay-Out Ratio brings out the relationship between profit available for equity shareholders and ————— e Equity e Interest on loan
   • (6) will decline due to decrease in debtors and stock value e Net profit ratio None of these ratio
   • (7) ratio intends to reflect the over all efficiency of the
   • (8) Generally are incurred for the purpose of increasing and maintaining the sales e Selling & Distribution expenses e All of these expenses
   • (9) Compensation received from Government for acquisition of land is a cash inflow from e Financing activity None of these
   • (10) An increase in Stock by Rs. 5,000 and decrease in Bank balance by Rs. 3,000 will result in e Decrease in working capital by Rs. 3,000 Decrease in working capital by Rs. 2,000 Increase in working capital by Rs. 2,000 Increase in working capital by Rs. 3,000
   • (B) Rewrite the following statements serially and state whether they are 7 true or false: (any seven)
   • (1) Financial statements of companies are prepared on accrual basis
   • (2) Break-even point is the level of activity where total cost is equal to total revenue
   • (3) Quantitative techniques are used in modern times to reduce the uncertainty and risk
   • (4) Balance Sheet is a historical statement indicating the financial performance of an organisation as at a particular date
   • (5) In management accounting, publication of reports is compulsory
   • (6) Operating cycle period will be reduced by increasing the period of the credit allowed by creditors
   • (7) Cash received from sale of furniture is treated as cash inflow from
   • (8) Return on capital employed is also known as return on investment
   • (10) In cash flow statement an increase in security premium is an
2. Q2 Sanjana Ltd. furnishes the following information for the year ended Annual sales for the year Rs. 25,00,000 Level of activities units During the year 2016-17, it is expected that 15 marks
   • (a) The activities will increase by 20%
   • (b) The cost per unit of
   • (i) Raw materials will increase by 20%
   • (ii) Direct wages will increase by 25%
   • (iii) Overheads will decrease by 20%
   • (iv) Selling price will increase by 20% Following further information is available :—
   • (1) The raw materials ordinarily remain in stores for 3 months before
   • (2) Every unit of production remains in the process for 2 months
   • (3) Finished goods remain in warehouse for 2 months
   • (4) Credit allowed by the creditors is 3 months from the date of the delivery of raw material
   • (5) Credit given to customers is 3 months from the date of dispatch
   • (6) Cash at Bank balance is expected to be Rs. 73,000
   • (7) Time lag in payment of wages is one month
   • (8) Time lag in payment of overheads is half month
   • (9) 20% of the purchases and 25% of sales will be on cash basis
   • (10) Sundry Debtors are valued at selling price
   • (11) There is regular production and sales cycle
   • (12) You are required to make provision of 10% for contingency on
   • (13) During the processing wages & overheads accrue evenly Estimate working capital requirements for the year ended March
3. Q2 (A) Complete the following comparative Balance Sheets of Sundar Ltd. by ascertaining the missing figures and prepare in vertical form 8 marks
   • (B) Complete the following common size revenue statement of Mrunal Ltd. 7 for the year ended March 2016 Cost of goods sold ? Gross Profit (25% on sale) > | 9 Income Tax (40% on NPBT) ? Arvind Ltd., furnishes you their Balance Sheet as on March, 2016 with 45 Balance Sheet as at March, 2016 Eq.Sh. Capital (Rs.10 8,00,000 | Fixed Assets (at Cost) | 19,05,000
   • (P.Y. Rs.1,65,000) | 2,00,000 | Cash and Bank Balance Bank Overdraft 55,000 | Expenses paid in Advance 15,000 Provision for Income Tax | 1,50,000 | Advance Income Tax | 1,20,000
   • (a) Sales for the Year: Cash Sales Rs. 16,00,000 and Credit Sales Rs From the above information you are required to calculate the following and offer your comments on Debt Equity Ratio
   • (i) Operating Ratio
   • (iii) Return on Proprietors' Fund
   • (vi) Credit period allowed by Suppliers
   • (vii) Credit period allowed to Customers Note : Vertical statement not expected
4. Q3 Following are the Balance Sheets of Honesty Enterprises Ltd., as at As | Ason! As on Profit and Loss A/c Prepaid Expenses | 20,000} Provision for depreciation | 2,20,000| 3,50,000 Advance Income Tax | 1,30,000 Proposed dividend | 2,40,000 | Profit and Loss A/c | 75,000 Provision for Taxation Half of 10% Preference Shares were converted into Equity Shares
5. Q2 12% Debentures were redeemed on 31.03.2016
6. Q3 Preference Dividend and Debenture interest are paid on
7. Q4 Last Year's Equity Dividend is paid on 31.12.2015
8. Q5 Additional Equity Shares were issued on 01.04.2015
9. Q6 Fixed Assets costing Rs.1,40,000 on which depreciation provided Rs.70,000, were sold for Rs. 80,000
10. Q7 Investments of Rs. 40,000 were sold for Rs.25,000
11. Q8 Income Tax paid during the year was Rs. 1,20,000 Prepare Cash Flow Statement by Indirect Method as per AS-3 ollowing balances as on March, 2016 are extracted from the books 15 Cash on Hand 45,000 | Expenses Payable | 37,500 Closing Stock on March, 2016 was Rs. 90,000 You are required to prepare Vertical Income Statement for the year ended 31st March, 2016 and Vertical Balance Sheet as on that date for
12. Q4 Complete the following Trend Analysis of Balance Sheets for three years Balance Sheets as at 31.03 Particulars Amount (in Rupees) | Trend Percentage Sources of Funds : 2014 2015 2016 | 2014 Total Application of Funds| 2 100 2 Note: Write the trend percentages in whole numbers (without decimal points) 15 marks
13. Q5 (A) Distinguish between Long Term Investments and Short Term 8 marks
    • (B) What are the limitations of Trend Analysis? 7
14. Q5 Write short notes on (any three) 15 marks
    • (2) Liquid Assets
    • (3) Functions of management accounting
    • (4) Cash flow from financing activities
    • (5) Different types of financial analysis
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    • (a) at arm: 9
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    • (3) WIR 2

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