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For CS, CA, ICWA [Foundation, Inter, Final] BMS, M.Com

301,Prestige Chambers, Opp. Thane Railway Stn. P.F.2,Thane(W):25334903
4, Vaibhav Soc., 1st Floor, Opp. Municipal Garden, Dombivli (E) Tel :2443455
2/18,Popatlal Bldg,Opp.Bank of Maharashtra,Ranade Rd.Dadar(W) Tel: 65540023

Time : 3 hrs. Accounts – CS Inter Mks : 100


Section A
Question 1 is compulsory. Answer any 2 from the rest
Q. 1 (A) Fill in the blanks: (10 marks)
1. Accounting as a ‘language of business’ communicates the financial results of corporate
enterprise to various________ by means of financial statements.
2. The bonus share can be issued only if ______ of the company permits such an issue.
3. Accounting standard 17 i.e. segment reporting is mandatory for all commercial industrial
and business reporting corporate enterprises, whose turnover for the accounting period
exceeds Rs._______
4. Consolidated financial statements are presented by a __________ company to provide
financial information about the economic activities of its group.
5. Preliminary expense is a ___________ asset.
6. If the purchase price of the debenture includes the interest for the expired period. It is
known as ________.
7. Issue of debentures to vendors is known as issue of debentures______________.
8. Accounting standards are formulated under the authority of the ____________.
9. Yield basis valuation of shares may take the form of valuation based on rate of return and
10. Collateral security implies _________ security given for a loan.

Q. 1(B) State with reasons in brief whether following statements are correct or incorrect (2 mark
1. In India, corporate financial statements are prepared recognising legal forms of the
transaction and ignoring the substance.
2. Contingent liabilities relating to outsiders must be shown on the liability side of the
consolidated balance sheet.
3. Partly paid up preference shares can be redeemed.
4. Dividend can be paid on calls in advance.
5. Accounting policies vary from enterprise to enterprise.

Q. 2 (A) write short note on redemption of debentures by sinking fund method. (10 marks)
Q. 2 (B) write short note on issue of shares other than cash. (5 marks)
Q. 3 (A) Write short note Accounting standard 9 (5 marks)
Q. 3 (B) Write short note on accounting standard 21 (5 marks)
Q. 3 (C) How will you deal with internally generated intangible assets in the books of the account?
(5 marks)
Q. 4(A) How and why is the net profit required to be reworked for the purpose of determining
managerial remuneration? Illustrate your answer (10 marks)
Q. 4 (B) Write short note on limits of managerial remuneration in various cases. (5 marks)

Section B
Question 5 is compulsory. Answer any 2 from the rest.
Q. 5(A) Fill in the blanks (1 mark each)
1. Cost is a fact where price is a ____________.
2. Imputed costs are relevant for ___________.
3. _________ in a contract provides that the contract price would be suitably enhanced on
the happening of a specified contingency.
4. Direct material + direct labour + factory overheads = __________.
5. Break even chart is the graphical relationship between ___________.
6. ________ is the allotment of proportion of items of cost to cost centre/ cost units.
7. ___________expenses are excluded from cost.
8. The process of apportionment of factory overheads among production and service
department is called ________ of factory overheads.
9. The time for which the employer pays remuneration to workers but obtains no direct
benefit is called _______.
10. A system that keeps a running and continuous record that tracks inventories and cost of
goods sold on day to day basis is called __________.

Q. 5(B) State with reasons in brief, whether the following statements are true or false. (2 marks
1. Under flux method, labour turnover is calculated by number of workers left divided by
average number of workers.
2. A profit centre whose performance is measured by its return on investment is known as
investment centre.
3. In cost plus contracts, the contractor runs a risk of incurring a loss.
4. All long term costs are controllable.
5. Liquidity ratios measure long term solvency of a concern.

Q. 6 (A) Distinguish between allocation and apportionment. (5 marks)

Q. 6 (B) B. Ltd provides following information (10 marks)
Direct Material 3,20,000
Direct Wages 8,00,000
Production overheads (25% variable) 4,80,000
Administration overheads (75% fixed) 1,60,000
Sales overheads (2/3 fixed) 2,40,000
Sales @ 125 per unit 2,50,000

For next year

1) Output and sales quantity will up by 20% by incurring

Additional advertising expenses of Rs. 45,200
2) Material price will go up by 10%.
3) Wage rate go up by 5% along with increase in labour of deficiency by 12%.
4) Variable overhead will increase by 5%.
5) Production overhead fixed will increase by 33 1/3%.
Required :
a) Calculate cost of sales for both period (6 marks)
b) Find out new selling price for next year: (1*4=4 marks)
1. If same amount of profit to be earned in next year
2. If same % of profit to sales is to be earned in next year
3. If existing % of profit to sales to be up by 25%
4. If profit per unit Rs. 10 is to be earned.
Q. 7 (A) Distinguish between cost accounting and management accounting. (5 marks)
Q. 7 (B) Following is data for 2009 and 2010
Year 09 Year 10
Sales 15,00,000 Sales 5,00,000
Profit 3,60,000 Total cost 5,40,000

During the year 2011 SP and VC are down by 20% and 33 1/3% respectively. FC up by 25%.
Required: (2*5 = 10 marks)
1) Estimate profit if sales units are up 100%.
2) Estimate sales in order to up profit Rs. 8,40,000.
3) Estimate sales so as to earn 25% on sales.
4) Estimate sales so as to earn 30% of employed working capital is 25% of sales and 20% of
capital employed.
5) Estimate BEP for year 2011.
Q. 8 (A) Write short note on Accounting Standard 7 (5 marks)
Q. 8 (B) Write short note on Accounting Standard 3 (5 marks)
Q. 8 (C) Write short note on Break even point and Margin of safety (5 marks)