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# Register Number

SATHYABAMA UNIVERSITY
(Established under section 3 of UGC Act, 1956)

Course & Branch: M.C.A Title of the Paper: Management Accounting Sub. Code: SBAX5028 Date: 18/12/2010

## Max. Marks: 80 Time: 3 Hours Session: FN (8 x 5 = 40)

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## PART A Answer Any EIGHT Questions 1. 2. 3. 4. 5. 6. 7. 8. 9.

State different classification of Accounts. Also state the rules of Accounting. Differenciate between Management Accounting and Financial Accounting. Define marginal cost and marginal costing. What are the assumptions of Break even analysis? Define Ratio and its classification. Explain zero Based Budgeting. Give a Proforma of a cash Budget with an imaginary figures. Define Capital Budgeting. What are its uses? Calculate: (a) Purchases (b) Stock Turnover Ratio (c) G.P. Ratio Sales `33604; Opening stock `1378; Closing Stock `1814; Gross Profit `8068

10. From the following Draw a Break even chart: Fixed cost `8000; Variable Cost `4 per unit; selling price per unit `6; Units produced 4000; 6000, 8000 and 12000. 11. From the following data which product would you suggest time being the KEY FACTOR: A B Selling Price `100.00 `110.00 Variable Cost `30.00 `23.00 Time to produce (Hours) 2 3 12. Compute PAYBACK METHOD: Cost of the projects `1000000 Profit Before Depreciation and TAX = 300000 Depreciation 20% TAX Rate 50% PART B Answer Any FOUR Questions (4 x 10 = 40)

13. Discuss in detail the various accounting Concepts. 14. Explain the different methods in capital Budgeting 15. From the following Trial Balance prepare (a) Trading, Profit and Loss Account and (b) Balance Sheet Trial Balance as on 31.12.2008 Debit Balance Credit Balance ` ` Cash in hand 2000 Capital 200000 Machinery 60000 Sales 254800 Stock 50000 Creditors 40000 Bills Receivable 1600 Overdraft 22000

Debtors Wages Land Carriage inwards Purchases Salaries Rent Postage Sales Return Drawings Furniture Interest Cash at Bank

50000 70000 40000 2400 180000 24000 4000 1000 3200 10000 18000 600 6600 523400

## 3000 1800 1800

523400

Adjustments: (i) Stock on 31.12.2008 `100000 (ii) Rent outstanding `4000 (iii) Baddebts `5000 16. From the following information, prepare a Balance Sheet (a) Working Capital `75000 (b) Reserve and Surplus `100000 (c) Bank Overdraft `60000 (d) Liquid Ratio 1.75 (e) Fixed Assets to Proprietors fund 0.75 17. A Radio manufacturing company finds that while it costs `6.25 each to make component X2734, the same is available in the market `5.75 each, with an assurance of continued supply. The breakdown of costs is Materials `2.75 each Labour `1.75 each Variable Expenses `0.50 each Fixed Costs `1.25 each

`6.25 each (a) Should you make or buy? (b) What would be your decision if the supplier offered the component at `4.85 each? 18. Draw a flexible budget for overhead expenses on the basis of the following data and determine the overhead rate @ 70%, 80% and 90% plan capacity: Capacity Levels. 70% 80% 90% ` ` ` VARIABLE OVER HEADS: Indirect Labour 12000 Stores & Spares 4000 SEMI-VARIABLE OVERHEADS: Power (30% Fixed 70% Variable) 20000 Repairs (60% Fixed, 40% Variable) 2000 FIXED OVERHEADS: Depreciation 11000 Salaries 13000 TOTAL OVERHEADS 62000 ESTIMATED DIRECT LABOUR HOURS 124000