SALEM SOWDESWARI COLLEGE (SFCW), SALEM-10

DEPARTMENT OF COMMERCE
CLASS: III-B.COM & B.COM [CA]
MODEL EXAMINATION – I
MANAGEMENT ACCOUNTING
Subject Code: 17UCC13 Time: 3 Hours
Date : 21/04/2021 Max.Marks:75
SECTION A-(10X2=20MARKS)

Answer ALL questions

1. Define management accounting.

2. What is mean by cost accounting?
3. Give the meaning of financial accounting.
4. What do you meant by ‘Ratio Analysis’?
5. What is mean by ‘fund flow statement’?
6. Explain Debt/equity ratio.
7. Define changes in working capital.
8. List out the current liabilities.
9. Explain ‘tangible assets.
10. Write the meaning of average collection period?
SECTION B-(5X5=25MARKS)
11. a) Discuss about the objectives of management accounting. (OR)
b) Explain the nature and scope of management accounting.

12. (a) Parani Ltd. Sells goods on cash as well as on credit basis. The following
information is extracted from their books of accounts for 1993.
Rs.
Total sales 1,00,000
Cash sales (included in the above) 20,000
Sales returns 7,000
Total debtors for sales as on 31-12-1993 9,000
Bills receivable as on 31-12-1993 2,000
Provision for doubtful debts 1,000
Trade creditors as on 31-12-1993 10,000
You are required to calculate ;
(1) Debtors/ Receivables turnover ratio;
(2) The average collection period (OR)

(b) Calculate Gross Profit Ratio from the following figures:

Rs
Sales 10,00,000
Sales returns 1,00,000
Opening stock 2,00,000

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 SALEM SOWDESWARI COLLEGE (SFCW), SALEM-10
DEPARTMENT OF COMMERCE
CLASS: III-B.COM & B.COM [CA]
MODEL EXAMINATION – I
Purchase 6,00,000
Purchase returns 1,50,000
Closing stock 65,000 (OR)
13. (a) Calculate funds from operations from the following Profit and Loss A/c.

Particulars Particulars
Rs Rs
To Expenses paid 3,00,000 By Gross Profit 4,50,000
To Depreciation 70,000 By Gain on sale of land 60,000
To Loss on sale of machine 4,000
To Discount 200
To Goodwill 20,000
To Net profit 1,15,800
5,10,000 5,10,000

(OR)
(b) Sriman Ltd., has provided the following details relating to its working for the year
1999 and you are required to ascertain ‘ Funds from operations’ for the year;
The opening and closing balances of P & L A/c were Rs. 40,000 and Rs. 60,000
respectively. Profit on sale of Motor car Rs. 8,000 was credited to the P & L A/c whereas
it was debited with loss on sale of machinery Rs. 20,000. Preliminary expenses written
off Rs. 4,000, goodwill written off Rs. 10,000, were also debited to the P & L A/c.
transfer and appropriations shown were.
To the general reserve 15,000, to debentures sinking fund Rs. 10,000 and
dividend proposed Rs. 20,000. Depreciation on fixed assets charged was Rs. 18,000.

14. (a) Calculate operating ratio from the following details.

Particulars Amount in lucks

Sales 17874
Sales return 4
Other income 53
Cost of sales [COGS] 15440
Administrative & selling expenses 1843
Depreciation 63
Interest expenses [Non operating] 456
(OR)

(b) Current Ratio 2.5, Working capital Rs. 63,000. Calculate current assets and current
liabilities.

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 SALEM SOWDESWARI COLLEGE (SFCW), SALEM-10
DEPARTMENT OF COMMERCE
CLASS: III-B.COM & B.COM [CA]
MODEL EXAMINATION – I
15. (a) Calculate gross profit ratio from the following details.
1.Sales Rs.1,00,000
2.Sales return Rs. 10,000
3.Opening stock Rs. 20,000
4.Purchases Rs. 60,000
5.Purchases returns Rs. 15,000
6.Closing stock Rs. 5,000 (OR)
(b) Calculate Gross profit ratio, Net profit ratio and Operating profit ratio from the
following details :
Total sales Rs.5,00,000, Gross profit Rs. 50,000, Net profit Rs.30,000 and
Operating profit Rs.20,000.

SECTION C-(10X3=30MARKS)
Answer any THREE questions
16. Distinguish between management account with cost account and financial account.
17. Following is the Balance Sheet Ltd. As on 31-12-1988;
Assets
Liabilities Rs Rs
Equity share capital 1,00,000 Fixed assets 3,60,000
7% Preference share capital 20,000 Less : Dep. 1,00,000 2,60,000
Reserves and Surplus 80,000
6% Mortgage debentures 1,40,000 Stock 60,000
Creditors 12,000 Debtors 40,000
Bills payable 20,000 Trade investments 30,000
Outstanding expenses 2,000 cash 10,000
Taxation provision 26,000
4,00,000 4,00,000

Additional information ; (i) Net sales Rs. 6,00,000 (ii) Cost of goods sold Rs. 5,16,000
(iii) Net income before tax Rs. 40,000 (iv) Net income after tax Rs. 20,000
calculate Short term solvency ratios and Long term solvency ratios.

18. Find out the debtors turnover ratio and average collection period from the following
details.
Particulars 2017 2018
[Rs] [Rs]
Annual credit sales 6,00,000 5,00,000
Debtors in the beginning 90,000 80,000
Debtors at the end 1,10,000 1,00,000
No.of days for the year 365 days 365 days

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 SALEM SOWDESWARI COLLEGE (SFCW), SALEM-10
DEPARTMENT OF COMMERCE
CLASS: III-B.COM & B.COM [CA]
MODEL EXAMINATION – I
19. From the following Profit and Loss Account, calculate funds from operations.

Profit and Loss Account

Particulars
Particulars Rs Rs
To Salaries 28,000 By Gross Profit 1,50,000
To Rent 12,000 By Profit on sale of furniture 12,000
To Printing & Stationery 6,000 By Interest on investments 8,000
To Depreciation on plant 25,000
To Goodwill written off 10,000
To Loss on sale of plant 5,000
To Provision for tax 15,000
To Provision for dividend 14,000
To Net profit transferred to 55,000
Balance Sheet 1,70,000 1,70,000

20. From the following details find out the

1. Current Assets
2. Current Liabilities
3. Liquid Assets
4. Stock.
Current ratio 2.5, Liquid ratio 1.5, Working capital 90,000.