Ws 2

(6 pages)

NOVEMBER 2014 77354/PMD1D

Time : Three hours Maximum : 75 marks

PART A — (10 × 1 = 10 marks)

Answer any TEN questions.
Write short notes on the following:

1. Financial Accounting

2. Single entry system

3. Trading Account

4. Balance sheet

5. Structural Ratios

6. Leverage ratios

7. Budget

8. Incremental cost

9. Cost center

10. Process costing

11. Absorption Costing

12. Cost control.

 Ws 2

PART B — (5  5 = 25 marks)

Answer any FIVE questions.

13. Describe the scope of management accounting.

14. From the following particulars calculate stock

turnover ratio:
Rs.
Opening stock of finished goods 40,000
Purchases 1,20,000
Carriage on Purchases 10,000
Sales 2,00,000
Closing stock of finished goods 30,000

15. Explain the rules for preparing the statement of

changes in working capital.

16. Describe the objectives of budgetary control.

17. The following figures relate to the costing of a

manufacturer of electric fans of one uniform size
and quality for a period of three months:
Rs.
Completed stock on 1.10.2009 Nil
Completed stock on 31.12.2009 2,02,500
Stock of Raw materials on 1.10.2009 50,000
Stock of raw materials on 31.12.2009 35,000

2 77354/PMD1D
 Ws 2

Rs.
Factory wages 7,50,000
Indirect charges 1,25,000
Material purchased 3,25,000
Sales (2500 fans) 11,25,000

The number of fans manufactures during the

three months was 3,000
Prepare a statement, showing the cost per fan and
the price to be quoted for 750 fans to realize the
same percentage of profit as was realized during
the months referred to above assuming identical
costs.

18. Describe the advantages of process costing.

19. Explain the assumptions of Break-even analysis.

PART C — (4  10 = 40 marks)

Answer Q. No. 20 compulsory and answer any THREE

questions from Q. No. 21 to 24.

20. The following are the balances in the ledger of

miss Priya for the year ended 31st March 2011.
Rs. Rs.
Discount (Dr.) 1,250 Carriage Inwards 5,100
Rent, Taxes and 6,200 Printing and Stationery 1,300
Rates

3 77354/PMD1D
 Ws 2

Rs. Rs.
Purchase of Raw 1,74,900 Sales 2,80,000
materials
Factory wages 29,850 Opening stock of
Opening stock of Finished goods 31,900
Raw materials 62,200 Carriage outwards 6,200
Advertisement 6,000 Miscellaneous Expenses 1,650
Interest paid 5,396 Fuel and coal 5,600
Factory power 11,450 Insurance (fire) 880
Staff salaries 6,350 Electricity 1,150
Bad debts 3,040

You are required to prepare manufacturing,

trading and profit and loss account for the year
ended 31st March 2011 after taking into account
the following information.
(a) Depreciation on plant and machinery
Rs. 5,845 and furniture and fixtures Rs. 1,430.
(b) Expenses outstanding and payable are
salaries Rs. 550; Rent Rs. 450; Electricity
Rs. 100 and Factory power Rs. 1,050.
(c) Stock as at 31.3.2011; Raw materials
Rs. 23,450; Finished goods Rs. 76,150.

21. “Management Accounting is the best tool for the

management to achieve higher profits and
efficient operations”. Discuss.

4 77354/PMD1D
[P.T.O.]
 Ws 2

22. Calculate the EPS or Return on Equity capital

from the following information:

Rs.

Equity share capital

(Rs. 10 each) 10,00,000

9% Preference share

Capital (Rs. 100 each) 5,00,000

Taxation rate 50 percent

Net Profit before tax 4,00,000

23. The following standard and actual data relate to a

manufacturing concern.

Standard Rs.

Material X 40 kgs at Rs. 6 240

Material Y 60 kgs at Rs. 4 240

Standard output is 80% of input i.e., 800 units.

Process less is 20%

Actual

Material X 600 kgs at Rs. 4

Material Y 400 kgs at Rs. 6.

5 77354/PMD1D
 Ws 2

Actual output is 70% of input i.e., 700 units

process loss is 30%. You are required to calculate
material cost variances.

24. Explain the steps to be followed to prepare

effective and efficient reporting.

———————

6 77354/PMD1D