Loyola College B.B.A. Business Administration April 2009 Management Accounting Question Paper PDF Download

LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

JQ 19

B.B.A. DEGREE EXAMINATION – BUSINESS ADMINISTRATION

SIXTH SEMESTER – April 2009

BU 6603 – MANAGEMENT ACCOUNTING

 

 

 

Date & Time: 23/04/2009 / 9:00 – 12:00          Dept. No.                                                          Max. : 100 Marks

 

 

PART – A

Answer ALL questions:                                                                               (10 x 2 = 20)

  1. What is Marginal costing?
  2. Define Management accounting.
  3. What do mean by ‘Variance analysis’?
  4. What is meant by break – even analysis?
  5. What is margin of safety?
  6. Write short notes on:
  7. Debt Equity ratio
  8. Debt Collection period
  9. Calculate the material usage variance from the following;

Standard:        2,000 units at Rs. 2 each.

Actual:                        2,500 units at Re.1 each.

  1. Calculate current ratio from the following:
Rs.
Cash in hand 2,000
Debtors 10,000
Stock 40,000
Land 12,000
Bills receivable 30,000
Bank overdraft 35,000
Creditors 60,000
Debentures 10,000
  1. Compute the P/V ratio: Sales Rs. 10,000, variable cost Rs.3,000 and fixed costs Rs. 5,000.
  2. What is overhead variances?

PART – B

Answer any FIVE questions:                                                                       (5 x 8 = 40)

  1. Distinguish between Management Accounting and Financial Accounting.
  2. From the following compute 1) Fixed assets turnover ratio        2) Debtors turnover ratio

3) Net profit ratio                          4) Stock turnover ratio.

Profit and Loss Account for the year ending 31st dec. 1998.

To opening stock 2,50,000 By sales 18,00,000
To purchases 10,50,000 By closing stock 1,50,000
To Gross profit 6,50,000
           ————- ————-
19,50,000 19,50,000
           ————– ————-
To Administration expenses 3,30,000 By Gross Profit 6,50,000
To other expenses 20,000 By Interest 50,000
To Net profit 3,50,000
————-             ———-
7,00,000 7,00,000
 ————-            ———–

Other information are:

Fixed assets Rs. 7,00,000

Debtors Rs. 2,50,000.

 

 

 

  1. From the following particulars, prepare a production budget of sales company for the year ending on 31st March 2005.
Product Sales (Units)             Estimated Stocks (Units)
          1.4.2004 31.3.2005
A 1,50,000 14,000 15,000
B 1,00,000 5,000 4,500
C 70,000 8,000 8,000
  1. Compute the break even point in rupees and in units. The fixed expenses of the concern is Rs.

1,80,000.  Its variable cost per unit is Rs. 29 and selling price is Rs. 44 per unit.

  1. Write short notes on the following.
  2. Zero based budget    b) Budgetary control            c) Control ratios.
  3. Following particulars are taken from the records of a company, calculate:
  4. Operating ratio b) Operating profit ratio          c) Current ratio            d) Liquidity ratio
    Rs.
Gross profit 55,000
Selling expenses 4,000
Administration expenses 22,000
Sales 1,54,000
Debtors 1,20,000
Cash 10,000
Inventory 30,000
Creditors 25,000
Bills payable 12,000
  1. Calculate funds from operations from the following Profit and Loss Account:
Particulars Rs. Particulars Rs.
To expenses 50,000 By Gross Profit 1,00,000
To depreciation 20,000 By gain on sale of machinery 10,000
To loss on sale of building 7,750
To discount allowed 250
To goodwill written off 6,000
To net profit 26,000
————– —————
1,10,000 1,10,000
————— —————
  1. Calculate material cost variances from the following data:
Standard Actual
Quantity 800kgs 920kgs
Price Rs. 4 per kg Rs. 3 per kg
Value Rs. 1600 Rs. 1380

 

PART – C

Answer any TWO questions                                                                        (2 x 20 = 40 marks)

  1. For the production of 10,000 units of a product, the following are the budgeted expenses. Prepare a budget for the production of 6,000 and 7,000 units.
         Rs.
Direct materials 60
Direct labour 30
Variable overheads 25
Fixed overheads (Rs. 1,50,000) 15
Variable expenses (direct) 5
Selling expenses (10% fixed) 15
Administration expenses (Rs. 50,000 rigid at all levels) 5
Distribution expenses (20% fixed) 5
  1. From the following Balance Sheet of ABC Ltd., Prepare a Fund Flow Statement.

Balance Sheets

Liabilities 2002 2003 Assets 2002 2003
Rs. Rs. Rs. Rs.
Equity share 4,50,000 5,00,000 Goodwill 1,15,000 90,000
Reserve fund 40,000 70,000 Building 2,00,000 1,70,000
P&L A/C 30,000 48,000 Plant 80,000 2,00,000
Proposed dividend 42,000 50,000 Debtors 1,60,000 2,00,000
Creditors 55,000 83,000 Stock 77,000 1,09,000
Bills payable 20,000 16,000 Bills  receivable 20,000 30,000
Provision for taxation 40,000 50,000 Cash in hand 25,000 18,000
————– ————- ————- ————-
6,77,000 8,17,000 6,77,000 8,17,000
————– ————- ————- ————-

Additional information:

  • Depreciation on plant Rs. 10,000 and building Rs. 20,000 charged in 2003.
  • An interim dividend of Rs. 20,000 has been paid in 2003.
  • Income tax Rs. 35,000 was paid during 2003.

 

  1. a) The sales and profit for 2006 and 2007 are as follows:

Sales                Profit

Rs.                     Rs.

2006                1,50,000          20,000

2007                1,70,000          25,000

Compute:

  • P/V Ratio
  • BEP
  • Sales for a profit of Rs. 40,000
  • profit for sales of Rs. 2,50,000 and
  • Margin of safety at a profit of Rs. 50,000

 

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