Download BU (Bangalore University) MBA (Master of Business Administration) 1st Semester 2015 Feb Accounting Managers Question Paper
l Semester MBA. Degree Examination, JanJFeb. 2015
' (CBCS) (2014-15 & Onwards)
MANAGEMENT
Paper ? 1.3 : Accounting for Managers
Time :3 Hours Max. Marks : 70
SECTION ?A
Answerany five of the following questions. Each question carriesS marks.
Answer to each theoretical question should not exceed 250 words. (5x5=25)
1. Explain the assumptions underlying accounting measurement.
2. Write a note on Quality of Earnings.
3. Distinguish between cost control and cost reduction.
4. Explain the practical applications of Marginal Costing.
5. On September 1, 2012, Rashmi Sinha established Lovely Beauty Salon. The
business engaged in the following transactions in the first month :
a) Rashmi Sinha invested Rs. 50,000 cash in business
b) Bought eduipment for cash Rs. 15,000
0) Took a bank loan Rs. 25,000
d) Bought supplies on credit Rs. 3,000
P.T.O.
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e) Paid rent Rs. 12,500
1) Paid creditors Rs. 1,500
9) Received fee for services provided Rs. 29,000
You are required to analyze the effect of the above transactions on the accounting
equation.
6. XYZ Ltd., has prepared the following budget estimates for the year2009-10.
Sales in units 15,000
Fixed expenses Rs. 34,000
Sales in volume Rs. 1,50,000
Variable cost per unit Rs. 6
You are required to :
i) Find out P/V ratio, break-even point and margin of safety.
ii) Calculate the revised PN ratio, break-even point and margin of safety in
each of the cases :
a) Decrease of 10% in selling price
b) Increase of 10% in variable costs.
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7. Ajay Company reported a net profit after tax of Rs. 3,40,000 for the year ended
31-3?2007. The relevant balance sheet accounts on 31 -3-2006 and 31-3-2007
are as follows :
(Amount in Rs.)
Particulars 31 ~3-2007 31-3-2006
Inventories 59,000 72,000
Debtors 94,000 61 ,000
Pre paid Expenses 14,000 3,000
Creditors 82,000 78,000
Income Tax Payable 13,000 19,000
Depreciation expenses of Rs. 49,000 and gain on sale of investment of Rs. 8,000
appeared on the Profit and Loss account for the year ended 31 -3-2007.
Calculate net cash flow from operating activities using indirect method.
SECTION ? B
Answer any three of the following questions. Each question carries 10 marks.
Answer to each theoretical question should not exceed 500 words. (1 0x3=30)
8. Define Human Resource Accounting. Explain the various valuation techniques of
human resource accounting.
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9.
10.
What are Annual Reports ? Discuss the mandatory disclosures in a Company?s
Annual Reports.
The profitability statement of G Co. Ltd., has been summarized as given below.
Sales 15,00,000
Direct Material 4,50,000
Direct Wages 3,00,000 \
Variable Overheads 1 20,000
Fixed Overheads 4,40,000 13,10,000
Profit 1 ,90,000
The budgeted capacity of the company is Rs. 20,00,000 but the key factor is
sales demand. It is proposed that in order to utilize the existing capacity, the
selling price of the only product manufactured by the company should be reduced
by 5%. You are requeeted to prepare a forecast statement which should show
the effect of the proposed reduction in selling price and include any changes in
costs expected during the coming year. The following additional information ,is
given.
a) Sales forecast Rs. 19,00,000 (after reduction)
b) Direct material prices are expected to increase by 2%
0) Direct wage rates are expected to increase by 5% per unit
d) Variable overheads are expected to increase by 5% per unit
e) Fixed overheads will increase by Rs. 20,000.
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Balance Sheet of Prashant Ltd.
Liabilities and Equity
Share capital
Equity shares of
10% each 4.00.000
1 .000 12% Preference
shares of ? 100
each 1 ,00.000
Reserve and surplus
12% Debentures
Current liabilities
Creditors
1 20,000
Bank Overdraft 30,000
Amount
?
5.00.000
1 .00.000
2.00.000
1 ,50.000
9,50,000
as at 31 March 2013
Assets
Fixed assets
(Less: Depreciation)
Current assets :
Stock-in?trade 1 .60,000
Sundry debtors 1.20.000
Bills receivable 25,000
Cash in hand
and bank 35,000
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11. The following is the Balance Sheet of Prashant Ltd., as on 31?3-2013
Amount
?
6.10.000
3.40.000
9.50.000
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Reven ue Statement
For the Year Ended 31 March 2013
Particular Amount R)
Net sales (credit) 7,30,000
Cost of sales M
Gross profit 1,09,500 \?
Administrative expenses 18,250
Selling and distribution expenses M 54,750
Operating profit (before tax) 54,750
Taxation w
Operating profit (after tax) 29,200
From the given information, you are required to compute the following ratios :
1) Current ratio
2) Liquidity ratio
3) Gross profit ratio
4) Debtor?s velocity
5) Net profit ratio
6) Capital gearing ratio
7) Proprietary ratio
8) Stock working capital ratio
9) Administrative expenses ratio
10) Debt-equity ratio.
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SECTION ? C
12. Case Study ? Compulsory: (1 x15=15)
The following is the trial balance of Venkateshwara Ltd., as at 31 .3.2012
Debit Credit
Stock on 1st April 2011 7,50,000 ?
Sales ? 35,00,000
Purchases 24,50,000 ?
Wages 5,00,000 ?
Discounts 70,000 50,000
Salaries 75,000 ?
Rent 49,500 ?
General Expenses Including lnsqr?nce 1,75,000 ?
Profit and Loss Account on 1St April 201 1 ? 1,50,300
Dividends Paid 90,000 ?
Bad Debts 48,300 ?
General Reserve ' ? 1,55,000
Cash in hand and at Bank 1,62,000 ?
Authorized capital and Issued Capital
(Fully Subscribed) (1 ,00,000 Shares of Rs. 10 Each) ? 10,00,000
Sundry Debtors and Creditors 3,75,000 1,79,500
Plant and Machinery 2,590,000
Total 50,34,800 50,34,800
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You are required to prepare a statement of Profit or Loss and a Balance Sheet for
year ended 31St March, 2012 as per the Revised Schedule VI of the Companies
Act.
a) Closing Stock Rs. 820,000
b) Depreciate machinery at 15% p.a.
c) One month?s rent at Rs. 54,000 p.a. was due on 31St March 2012
d) Six months insurance was unexpired Rs. 3,750
e) The Directors proposed adividend of 8%.
This post was last modified on 28 January 2020