Assignment BMarks 10Answer all questions.
1.From the following particulars, determine the bank balance as per pass book of Priya &Co. as on 28th February 2008.a)Credit balance as per cash book on 28th February, 2008 was Rs. 15,000
Interest charged by the bank up to 28th February Rs. 500 was recorded in the passbook.c)Bank charges made by the bank Rs. 125 were also recorded only in the pass book.d)Out of the cheques of Rs. 25,000 paid into the bank, cheques of Rs. 18,750 werecleared and credited by the bankers.e)Two cheques of Rs. 7,500 and Rs. 15,000 were issued but out of them only onecheque of Rs. 7,500 was presented for payment upto 28th February.f)Dividends on shares Rs. 4,500 were collected by the bankers directly, for which Priya &Co. did not have any information.2. A company manufactures a single product in its factory utilizing 600% of its capacity. Theselling price and cost details are given below:Rs.Sales (6,000 units)5,40,000Direct materials96,000Direct labour1,20,000Direct expenses19,000Fixed overheads :Factory2,00,000Administration21,000Selling and Distribution25,00012.5% of factory overheads and 20% of selling and distribution overheads arevariable with production and sales. Administrative overheads are wholly fixed. Since theexisting product could not achieve budgeted level for two consecutive years, the Companydecides to introduce a new productwith marginal investment but largely using the existing plant
and machinery.The cost estimates of the new product are as follows:Cost elementsRs. per unitDirect materials16.00Direct labour15.00Direct expenses1.50Variable factory overheads2.00Variable selling and distributionoverheads1.50It is expected that 2,000 units of the new product can be sold at a price of Rs. 60 per unit.The fixed factory overheads are expected to increase by 10%, while fixed selling anddistribution expenses will go up by Rs. 12,500 annually. Administrative overheads remainunchanged.