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Total No. of Pages : 6

6737

Register Number :
Name of the Candidate :

M.B.A. (2 Years) DEGREE EXAMINATION DECEMBER 2013.

(FIRST YEAR)
120 FINANCIAL AND MANAGEMENT ACCOUNTING
Time : Three hours

Maximum : 75 marks

SECTION A
Answer any FIVE questions.

(5 3 = 15)

All questions carry equal marks.

1.

(a)

Describe the scope of management accounting.

(b)

Discuss any three types of capital expenditure.

(c)

What is a trial balance?

(d)

Explain the term ratio analysis.

(e)

Write the objectives of fund flow statement.

(f)

State any three advantages of marginal costing.

(g)

Explain margin of safety.

(h)

State the functions of budget committee.

SECTION B
Answer any THREE questions.

(3 10 = 30)

All questions carry equal marks.

2.

Discuss the nature and objectives of management accounting.

3.

Define capital budgeting. Discuss the importance of capital budgeting.

4.

Discuss how accounting ratios are classified.

5.

What do you understand by the term Break Even Analysis? What are its
assumptions? State its merits.

6.

Discuss the various types of report that are required by management.

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SECTION C
(1 15 = 15)

Answer any ONE question.

7.

From the following information calculate :

(a)

Break even point

(b)

P/V ratio

(c)

Margin of safety

(d)

If the selling price is reduced to Rs. 90

How much is the BEP and margin of safety?
Rs.
Total sales

3,60,000

Selling price per unit

100

Variables cost per unit

Fixed cost
8.

50
1,00,000

From the following information of Raj Trading prepare final accounts for the
year ended 31.12.2005.
Rs.
Raj capital

50,000

OD

8,400

Sales

3,01,000

Return inwards

5,000

Taxes

4,000

Opening stock

44,000

Commission allowed

4,400

Rent received

2,000

Purchase

2,20,000

Bad debts return off

Discount (Cr)

1,600
800

Furniture

5,200

Building

40,000

Creditors

26,600

General expenses

8,000

Salaries

18,000

Debtors

36,000

Carriage on purchase

3,600

Provision for doubtful debts

1,000

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Adjustments :
(a)

Stock on hand on 31 December Rs. 40,120

(b)

Write off depreciation building Rs. 600 and furniture 10%

(c)

Make a provision of 5% on debtors and doubtful debts

(d)

Allow interest on capital @ 5% and carry forward Rs. 1,400 for unexpired
insurance.

9.

Prepare a production budget for 3 months ending 31 March 2009 for a factory
producing 4 products on the basis of the following.
Type of

Estimated stock

Estimated sales Jan-

Desired closing stock

product

1.1.09

March 2009

31.3.09

2,000

10,000

5,000

3,000

15,000

4,000

4,000

13,000

3,000

5,000

12,000

2,000

SECTION D
(1 15 = 15)

Compulsory questions.
10.

From the following balance sheet of Moon Ltd. you are required to prepare
fund flow statement. Dividend paid Rs. 17,500
Liabilities

Share capital
Debentures

2008
3,50,000

2009

Assets

3,70,000 Cash

2008

2009

45,000

39,000

74,500

88,500

60,000

30,000 Debtors

3,500

4,000 Stock

2,46,000

2,13,500

Creditors

51,800

59,200 Land

1,00,000

1,50,000

P and L a/c

50,200

52,800 Goodwill

50,000

25,000

5,15,500

5,16,000

Reserve for doubtful debts

5,15,500

5,16,000

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1.

(5 3 = 15)

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(B) u \zvP Hu USP.
(C) C \u G G?
(D)

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(G)

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(3 10 = 30)

2.

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4.

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.
zu

3,60,000

(K AS)
\P

50

{ \P
8.

100

1,00,000

RPq [P Cx 31.12.2005 i E {zv

Cv {U PnUQ u \P.
.
u

50,000

8,400

3,01,000

z v

5,000

4,000

B \US C

44,000

[Pmh P

4,400

mh hP

2,000

Pu

2,20,000

UPh AUPmhx

1,600

800

uh[P

5,200

Pmih

40,000

Phu

26,600

xa \P

8,000

18,000

PhP

36,000

Pu siU Pmhn

3,600

UPh JxURk

1,000

[P :
(A) 31 i\ 2005 \US C . 40,120.
(B) Pmihz u . 600 uh[P 10%.
(C) PhP UPhUS 5% JxURk \.
(D)

uzvP mi JxURk 5%
. 1,400 Gkzxa \.

P i PmiS

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K Ezv { |S mP Ezv \x Qx.

RPkzx [P Cx 31 a 2009 i E PzvS Ezv
vmhzv u \P.

1.1.09 A
GvUPk
Gv
P
GvUS \US
&a
Cv \US C
C
31.3.09

9.

2,000

10,000

5,000

3,000

15,000

4,000

4,000

13,000

3,000

5,000

12,000

2,000

Sv D
(1 15 = 15)

Pmh
10.

PkUPmk C {U S (/m) Psk {v Jmh

AUP u \P. [Pu [Pmhx . 17,500.
2008
2009
\zxUP
2008
2009
P

[S u
Ph zv
UPh&P

3,50,000
60,000
3,500

3,70,000 UP
30,000 PhP
4,000 \US C

Phu

51,800

59,200 Pmih

|mh P/S

50,200

52,800 |

5,15,500

5,16,000

45,000

39,000

74,500

88,500

2,46,000

2,13,500

1,00,000

1,50,000

50,000

25,000

5,15,500

5,16,000

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