Download BU (Bangalore University) MBA (Master of Business Administration) 1st Semester 2016 Feb Accounting Managers Question Paper
I Semester M.B.A. Degree Examlnatlon, February 2018
(0308) (2014-15 a. Onwards)
MANAGEMENT
Paper ~ 1.3 : Accountlng for Managers
Time : 3 Hours Max. Marks : 70
SECTION ? A
Answerany five of the following questions. Each question carriess marks. (5x545)
1 .
What are the diflarences between Financial Accounting and Management
Acoounting?
. How is depreciation for partial perlods recorded ?
. What procedure would you adopt to study the quuidlly of ?rm ?
. Calculate stock turnover ratio from the following data :
Stock at the beginning of the year: Rs. 10,000!-
Stock at the end at the yea! : Rs, 5,000!-
Purchases : Rs. 25,000!-
Carriage inwards: Rs. 2.500!-
Total Sale : Rs. 50.000/-
Cash Salas : Rs. 5,000!-
. De?ne standard costs and briefly indicate thhey may be used by management
in plannlng and control.
1] Prepare common-size income statementfor2016 and 2015.
2} What caused Karl?s profitability to decline so dramatically in 2016 ?
3) Analysis : in 2016 Karl?s operating income was less than its interestexpehse.
Does this mean that Karl was unable to make In interest payments in 2016 7
Explain.
How are the following items treated in determining net cash ?ow from operating
activities :
8} interest paid
b) interest received
0) dividend paid
n.0,
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d) dividend received
3) gain on sales of investments
f} loss on exchange of plant; and
9} gain on redemption of debenture ?
7. "Expenses are used-up assets". Explain.
SECTION ? B
Answer any three question 3. Each qu estion carriesten marks. [3x10=30]
8. Form the following pa r?culars. catculate;
I) Break-even point in terms of sales value and in unhs.
II) Number of units that most sold to earn a pro?t of Rs. 1,00,000!?.
Fixed factory Overhead cost 1.20.000
Fixed selling overhead cost . 2,400
Variable man ufacturing cost per unit 24
Variable selling cost per un It 6
Selling price per unit 45
9. What are the differs ncas between current liabilities and tong term iiablllties ?
10. In Department ?A' the following data is Submitted for the week enc?ng 31 ?October:
Standard output for 40 hours per week 1,400 units
Standard ?xed overhead 33.1.4010
Actu al output 1,200 units
Actual hours worked ~ Rs. 32 hrs.
Actual fixed overhead . Rs. 1,500
Prepare a Statement of Varlance
11. Preparation 0! Adjusting en?es and Financial Statements. Indian Business Sewice
Ltd. was set up on January 1 . 2009. its Trial Batance on Jan uary 31 . 2009 was
as follows :
Account Debit Credit
Buildings 15.000
Of?ce equipment ' 12.009 . _ '_~_
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Office SU pplies 2,140
Debtors ?1 .640
Cash 660
Prepaid Rent 3,600
Creditms 1 ,0.
Uneamed Raven ue 1,600
Share capth 20,000
Dividends 1 .000
Revenue from services 16,870
Salaries expenses 3,1 00
Electricity expen ses 380
Total 30,490 39,490
The following addltional information is available ?.
a) The building is expected to be useful for 10 years and the office equipmen?l
has an estimated useful Ilfe of four years. None ofthese assets are expected
to have any salvage value.
b) The inventory of office Supplies on Jan new 31 is Rs. 970.
0} Services for Rs. 900 were provided to customers in January although no bllls
have been raieed.
d) Services for Fts. ?20 were provided to customers who had made full advance
payments.
e} Salaries of staff for the second fortnight toialing Rs. 3,100 have not been
paid.
t) The telephone Company sent a bill for Rs. 480 for January atter the close of
the month's transactIOn.
g} The company pald six month's re nt as advance on Janu ary 1 .
Required :
1] Prepare adjusting entries and post them to the T aooou nts.
2) Prepare an adjusted Trill Balance. at Pro?t and Loss Account, a statement of
retained earnings. and a Balance Sheet.
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SECTION - C
This is a Compulsory Section. (1 x15=151
12. Determinlng Net Cash Flow from Operating Activitles-lndlrect Method : Dutt
Company's Pro?t and Loss Acc0um for the year ended June 30, 2015 is as tollow :
Dutt Company : Profit and Loss Accwnt ( In mm
For the Year Ended J une 30. 2015
Sales 75.800
Gain on sales of investments 1.200
Interest income 900
Divrden'd from subsldiaries 300
Cast of goods sold 43.900
Depreciation Expense 6.700
Selling and Administration expense 8,500
Interest Expense 1.100
Loss on sales of plant and machinery 800
Profit before income tax . 17,200
Income tax . ' 8.300
Pro?t aner Tax 8.900
Relevant Balance Sheet accomts on June 30. 2015 and 2014 are as follows :
June 30. 2015 June 30. 2014
Inventories ' 9,300 7,900
Debtors (net of prevision for
Doubtful Debts of Rs.1 .600 and Rs. 800} 6.600 5.300
Prepaid Expenses 1.100 800
Creditors 8,400 6.300
Bill Payable 2.100 6.500
Income Tax Payable 2.100 2.800
Selling and Administrative EXpenses included bad debt expense of Rs. 1,500.
During the year ended June 30, 2015. Debtors totaling R5. 700 were written off.
Required : Compute Net Cash Ffow from operating activities using the Indirect
method.
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This post was last modified on 28 January 2020