Management Accounting QB

LOYOLA COLLEGE (AUTONOMOUS)
CHENNAI – 600 034.
EVEN SEMESTER (2021-22)
DEPARTMENT OF COMMERCE
(SHIFT – II)
LIST OF SUBJECTS
S. No. S_Code Subject Name Page No
1 UCO 2501 Business Law
2 UCO 2302 Statistics for Decision Making
3 UCO 4501 Cost Accounting
4 UCO 4502 Entrepreneurship Development
5 UCO 4601 EXIM Procedure & Documentation
6 UCO 4602 Financial Reporting & Analysis
7 UCO 4603 Managing Innovation
8 UCO 4604 Service Marketing
9 UCO 4403 Stock Market Operations
10 UCO 4404 Supply Chain Management
11 UCO 6501 Management Accounting
12 UCO 6502 Financial Management
13 UCO 6503 Human Resource Manageent

DEPARTMENT OF COMMERCE SHIFT –II
LOYOLA COLLEGE (AUTONOMOUS) CHENNAI -600034
DYNAMIC QUESTION BANK

UCO 6501 MANAGEMENT ACCOUNTING
UNIT-1 CASH FLOW STATEMENT

Section – A
1. What is a Cash Flow Statement?
2. Explain the term ‘Cash’ and ‘Cash equivalents.
3. List any two uses of the cash flow statement.
4. What is management accounting?
5. List out the functions of a management accountant.
6. What are the cash flows from operating activities?
7. How do you deal with ‘non-cash transactions’ while preparing a ‘cash flow statement’?
8. Explain the meaning of the term fund.
9. What is working capital?
10. Compute the amount of dividend paid during 2010:
Proposed dividend on 1-1-2010 Rs.50,000
Proposed dividend on 31-12-2010 Rs.40,000
Dividend debited to P&L Appropriation A/c Rs.60,000
11. Compute the cash flow from operating activities
P &L A/c balance on 31/03/2022 ₹ 4,00,000
P &L A/c balance on 31/03/2021 ₹ 2,50,000
Transfer to general reserve ₹ 50,000
Deprecation on fixed assets ₹ 10,000
12. Calculate the net cash flow from financing
Net profit for the year 2020-21 = ₹ 95,000
Depreciation charged on fixed assets = ₹ 42,000
Profit on sale of long-term investment = ₹ 13,000
Goodwill written off = ₹ 20,000
13. Find out the amount of transfer to reserve from P &L A/c
Balance o reserves on 1-1-2021 ₹ 460000
Reserves used for redemption of preference shares ₹ 130000
Balance of Reserves on 31-12-2021 ₹ 430000
Section – B
14. Distinguish between Financial accounting and management accounting.
15. Discuss the functions of management accounting.
16. Enumerate different tools and techniques in management accounting.
17. Discuss the uses and limitations of the cash Flow Statement.
18. Describe the steps in the preparation of a ‘Cash flow statement’.
19. Distinguish between ‘cash flow statement and funds flow statement’
20. Highlight the advantages and disadvantages of management accounting.
Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

Prof. F. Antony Pradeep & Dr S. Emaldarani

21. From the following balance sheets as on 31/12/2020 and 31/12/2021, prepare a cash flow
statement
liabilities 2020 2021 Assets 2020 2021
₹ ₹ ₹ ₹
Share capital 150000 100000 Fixed Assets 150000 100000
Profit and loss a/c 80000 50000 Goodwill 40000 50000
General reserve 40000 30000 Stock 80000 30000
6% Debentures 60000 50000 Debtors 80000 50000
Creditors 40000 30000 Bills receivable 20000 30000
Outstanding exp 15000 10000 Bank 15000 10000
385000 270000 385000 270000
22. From the following P & L A/C you ae required to compute cash from operating activities
PROFIT AND LOSS ACCOUNT FOR YEAR ENDING 31/12/2021
particulars ₹ particulars ₹
To salaries 5000 By Gross Profit 25000
To Rent 1000 By profit on the sale of land 5000
To Depreciation 2000 By income tax refund 3000
To loss on sale of plant 1000
To good will return off 4000
To proposed dividends 5000
To provision or taxation 5000
To net profit 10000
10000 10000
23. ABC Ltd furnishes the following Balance Sheets as of 31-12-2011 and 31-12-2012. You
are required to prepare a cash flow statement for the year ended 31-12-2012
LIABILITIES 2011 2012 ASSETS 2011 2012
5,000 4,000 Fixed Assets 2,500 3,000
Share Capital
700 600 Debtors 2,400 2,000
Debentures
320 300 Prepaid 50 30
P&L A/c
1,400 1,700 expenses 300 500
Creditors
420 300 Preliminary exp 350 120
Prov for taxation
580 500 Bank balance 3,500 3,000
Proposed dividend
680 1,250 Stock
Bank overdraft
9,100 8,650 9,100 8,650
Additional information:
Tax paid during the year Rs.350. Dividend proposed during the year Rs.400 and Fixed assets
costing Rs.700, accumulated depreciation Rs. 300 were sold at book value.


24. Ganesh Ltd. earned a profit of Rs.2,00,000 after charging or crediting the following items
to its P&L A/c during31-3-2015.
(a) Profit on sale of investments Rs.4,000
(b) Loss on sale of building Rs.9,000
(c) Depreciation on fixed assets Rs.7,000
(d) Amortization of goodwill Rs.2,000
(e) Provision for tax made Rs.60,000
(f) Income tax paid Rs.50,000
(g) Extraordinary income Rs.10,000
The following additional details are available:
Details 1-4-2014 (Rs.) 31-3-2015 (Rs.)
Bills Payable 5,000 8,000
Creditors 12,000 16,000
Outstanding Expenses 2,000 1,000
Bills Receivable 20,000 18,000
Debtors 40,000 60,000
Prepaid Expenses 2,000 3,000
Accrued Incomes 5,000 8,000
Income Received in Advance 2,000 1,000
Calculate Net Cash from Operating Activities for the year ending 31-3-2015.
Section – C- (20 Marks)
25. The following are the summarized balance sheets of Apple Ltd. as of 31st Dec 1991 and
1992.
1991 1992 1991 1992
Liabilities Assets
Rs. Rs. Rs. Rs.
Share capital 1,00,000 1,50,000 Land & Building 1,00,000 90,000
General reserve 50,000 60,000 Plant & Machinery 1,00,000 1,19,000
P & L A/c 30,500 30,000 Stock 50,000 24,000
Bank loan 70,000 ----- Debtors 75,000 63,200
Sundry creditors 50,000 37,200 Cash 500 1,000
Provision for taxation 32,000 35,000 Bank 2,000 15,000
Goodwill 5,000 ------
Total 3,32,500 3,12,200 Total 3,32,500 3,12,200
During the year ended 31st December 1992
Dividend of Rs.23,000 was paid. Depreciation is written off on building Rs.10,000,
Machinery Rs. 14,000. Income tax paid during the years.28,000.
Prepare a statement of cash flow for the year ended 31st December 1992.


26. The summarized balance sheets of Kandan Ltd., as of 31.12.01 and 31.12.02 are as
follows:
2001 2002. 2001 2002
Liabilities Assets
Rs. Rs Rs. Rs.
Share capital 4,50,000 4,50,000 Fixed assets 4,00,000 3,20,000
General reserve 3,00,000 3,10,000 Investments 50,000 60,000
P & L A/c 56,000 68,000 Stock 2,40,000 2,10,000
Creditors 1,68,000 1,34,000 Debtors 2,10,000 4,55,000
Tax provision 75,000 10,000 Bank 1,49,000 1,97,000
Mortgage loan - 2,70,000
10,49,000 12,42,000 10,49,000 12,42,000
Additional details:
(a) Investments costing Rs.8,000 were sold for Rs.8,500.
(b) Tax provision made during the year was Rs.9,000
(c) During the year part of the fixed assets costing Rs.10,000 was sold for Rs.12,000 and the
profit was included in the P&L account.
(d)Dividend paid during the year Rs.15,000.
You are required to prepare a cash flow statement for 2002.
27. The following are the summarized balance sheets of Siva & Co as on 31st December 2020
and 2021
liabilities 2020 ₹ 2021 ₹ Assets 2020 ₹ 2021₹
Share capital 200000 250000 Land and building 200000 190000
General reserve 50000 60000 Machinery 150000 169000
P &L a/c 30500 30600 Stock 100000 74000
Bank loan (long term) 70000 - Debtors 80000 64000
Sundry creditors 150000 135200 Cash 500 600
Provision for taxation 30000 35000 Bank - 8000
Goodwill - 5000
530500 510800 530500 510800
a) Dividend of ₹ 23000 was paid
b) Assets from another company were purchased for consideration of ₹ 50000 payable in
share. The following assets were purchased stock -₹ 20000, machinery ₹ 25000
c) Machinery was further purchased for ₹ 8000
d) Depreciation has written off on machinery ₹ 12000
e) Income tax provided during the year ₹ 33000
f) Loss on sale of machinery ₹ 200 was written off to general reserve
You are required to prepare the cash flow statement. Working notes form part of your answer


28. The balance sheet of Thiru Ltd for the years 2020 and 2021 were as follows
liabilities 2020 2021 Assets 2020 2021
₹ ₹ ₹ ₹
Share capital 150000 175000 buildings 11000 150000
Profit and loss a/c 20000 80000 plant 200000 140000
Loan from bank 140000 20000 stock 50000 45000
Creditors 85000 93000 Debtors 70000 80000
Outstanding exp 5000 7000 Cash 15000 22000
Bills payable 50000 40000 Prepaid expenses 5000 3000
Loan from - 25000
450000 440000 450000 440000
a) Net profit for the year 2021 ₹ 60000
b) During the year a plant costing ₹ 13000 (accumulated depreciation ₹ 10000)
was sold for ₹ 13000
c) The provision for depreciation against plant as on 31/12/2020 was ₹ 50000
and on 31/12/2021 was ₹ 85000
Prepare a cash flow statement
UNIT II – Budgetary Control
SECTION – A- (2 Marks)
1. What is a budget?
2. Define budgetary control.
3. What is a master budget?
4. What is ZBB?
5. What is performance budgeting?
6. What is the sales budget?
7. Write any two advantages of a cash budget.
8. What is a flexible budget?
9. What is the production budget?
10. Write any two differences between forecasts and budgets.
11. What is meant by budgeting?
12. Explain the objectives of budgetary control.
13. Explain the advantages of budgetary control.
14. What is forecasting?
15. What are control ratios?
16. Explain the meaning of Responsibility centers.


17. Compute the material consumption during November 2022.

Estimated sales 5,000 units
Expected Closing stock 2,000 units
Opening stock 1,000 units.
18. Prepare production budget for the quarter ending 31st March 2020
Budgeted sales for the quarter 40,000 tones
Opening stock 8,000 tones
st
Required stock on 31 March 2020 10,000 tones.
19. Fixed cost at 50% activity level is Rs.20,000. What will be the fixed cost at 60% and
80% activity levels.?
20. Find out the semi-variable cost of 40,000 units. Semi variables cost for 30,000 units:
Rs. 15,000 which is 40% fixed and 60% variable.
SECTION – B- (10 Marks)
21. Explain the objectives of budgetary control.

22. What is Zero-based budgeting? Explain the process of ZBB and its advantages.
23. The following budget estimates are available from a factory working at 50% of its
capacity:
Variable expenses 60,000
Semi-Variable expenses 20,000
Fixed Expenses 10,000
Prepare a budget for 75% of the capacity assuming that semi-variable expenses increase
by 10% for every 25%.
24. The expenses for the production of 10,000 units in a factory are given as follows:
Particulars Amount (Rs.)
Material 70
Labor 25
Variable overheads 20
Fixed Overheads (Rs 1,00,000) 10
Variable expenses (direct) 5
Selling expenses (10% fixed) 13
Administration expenses (Rs 50,000 fixed for all levels) 5
Distribution expenses (20% fixed) 7
Total cost per unit (to make and sell) 155
Prepare a flexible budget for a production of (a) 8,000 units and (b) 6,000 units.

25. Explain the different classifications of budgets.

26. What are the essentials of a good budgetary control system?
27. Prepare a flexible budget from the following data:
Capacity 50%
Volume 10,000 units
Selling Price per unit Rs 200
Material Rs 100
Labour Rs 30
Factory Overhead Rs 30 (Rs 12 fixed)
Administration Overhead Rs 20 (Rs 10 fixed)
At 60% working, material cost per unit increases by 2% and selling price per unit falls by
2%. At 80% working, material cost per unit increases by 5% and selling price per unit
falls by 5%. Estimate the profits at 60% and 80% working.
28. The monthly budgets for manufacturing overhead of concern for two levels of activity
were as follows:
Particulars 60% (600 units) 100% (1,000 units)
Indirect Wages 1,200 2,000
Consumables 900 1,500
Maintenance 1,100 1,500
Power and Fuel 1,600 2,000
Depreciation 4,000 4,000
Insurance 1,000 1,000
Total 9,800 12,000
You are required to:

i. Indicate which of the items are fixed, variable and semi-variable;
ii. Prepare a budget for 80% capacity; and
iii. Find the total cost, both fixed and variable, per unit of output at 60%, 80%, and
100% capacity.
29. Prepare a Production budget from the following information.
Product Estimated stock on Estimated sales during Desired closing stock on

1st Jan 2007 (units) Jan to March 2007 (units) 31st March 2007 (units)
R 2,000 10,000 3,000
S 3,000 15,000 5,000
U 4,000 13,000 3,000
P 3,000 12,000 2,000


30. XYZ company wishes to arrange OD facilities with its bankers during April, May &
June when it will be manufacturing mostly for stock. Prepare cash budget for the above
period.
Month Sales Purchase Wages
February 1,80,000 1,24,800 12,000
March 1,92,000 1,44,000 14,000
April 1,08,000 2,43,000 11,000
May 1,74,000 2,46,000 10,000
June 1,26,000 2,68,000 15,000
50% of credit sales is realised in the month following the sales and the other 50% in the
second following Month.
creditors are paid in the month following the month of purchase.
Wages are paid at the end of the respective month.
Cash at bank on 1st April Rs 25,000.
31. A company at present operating at 50% capacity produces and sells 10,000 units.
The unit cost is Rs180 and the selling price is Rs200.
The expenses per unit are given below:
Particulars Amt
Direct material 100
Direct labour 30
Factory expenses (60% variable) 30
Administrative expenses (40% fixed) 20
Prepare a flexible budget at 80% capacity.
32. Arcod Electronics Ltd. had prepared its budget for the year ending 31-3-2005 based on
the production of 1 lakh units of their only product as:
Particulars Amt
Raw material 2,52,000
Direct labour 75,000
Direct expenses 10,000
Works Overhead (60% Fixed) 2,50,000
Administration overhead (80% fixed) 40,000
Selling overheads (50% fixed) 20,000
For want of demand, the actual production for that period was only 60,000 units. Prepare a
flexible budget showing the budgeted cost per unit under both the original plan & under the
actual performance.


SECTION – C- (20 Marks)

33. Given below is the flexible budget at 60% capacity. Prepare the tabulated statement giving
the budget figures at 75% and 90% capacity. When no identification has been given make
your own classification of expenses between fixed and variable expenses.
Particulars 60% capacity (Rs.)
Direct materials 1,60,000
Direct labour 40,000
Indirect materials and spares 48,000
Depreciation 60,000
Indirect labour 40,000
Rent 12,000
Electric power (40% fixed) 8,000
Repairs and maintenance (40% variable) 20,000
Insurance on machinery 12,000
34. Prepare the flexible budget on the basis of the given data below and ascertain the total
cost at 40% and 80% capacity.
Particulars @ 40% (Rs.) @ 60% (Rs.) @ 80% (Rs.)
Fixed costs:
Salaries 30,000
Insurance 20,000
Variable costs:
Materials 90,000
Labour 75,000
Semi variable costs:
Maintenance (60% variable) 24,000
Lighting (50% fixed) 16,000
Supervision (80% fixed) 30,000
Total cost ? 2,85,000 ?
35. A company at present operating at 80% capacity produces and sells 40,000 units. Given
below are the expenses per unit: Prepare a budget at 60% capacity and 90% capacity.
PARTICULARS AMT (Rs.)
Direct material 15
Direct labour 10
Factory Overhead (30% fixed) 5
Office Overhead (60% variable) 3
Selling and Distribution overhead (50% fixed) 2
Selling price 45


36. A firm expects to have Rs 25,000 in the bank on 1st May 1984 and requires to prepare
an estimate of cash position during the 3 months. May - July 1984. Information made
available:
Factory Office Selling
Sales Purchases Wages
Month expenses expenses expenses
(Rs.) (Rs.) (Rs.)
(Rs.) (Rs.) (Rs.)
Mar 50,000 30,000 6,000 5,000 4,000 3,000
Apr 56,000 32,000 6,500 5,500 4,000 3,000
May 60,000 35,000 7,000 6,000 4,000 3,500
June 80,000 40,000 9,000 7,500 4,000 4,500
July 90,000 40,000 9,500 8,000 4,000 4,500
Other information:
i. 20% of sales are for cash: Remaining amount is collected in the month following that
of sale.
ii. Suppliers supply goods at 2 months’ credit.
iii. All expenses are paid in the month following the one in which they are incurred.
iv. The company pays a dividend to shareholders bonusses to workers of Rs 10,000 and
Rs 15,000 respectively in the month of May.
v. Plant has been ordered and is expected to be received in June. It will cost Rs 80,000.
vi. Income Tax Rs 25,000 is payable in July.
37. Prepare a cash budget for the months of May, June and July 2006 on the basis of the
following info.
Month Credit Credit Manufacturing Selling
2006 sales purchases Wages Exp Off.Exp exp
March 60,000 36,000 9,000 4,000 2,000 4,000
April 62,000 38,000 8,000 3,000 1,500 5,000
May 64,000 33,000 10,000 4,500 2,500 4,500
June 58,000 35,000 8,500 3,500 2,000 3,500
July 56,000 39,000 9,500 4,000 1,000 4,500
August 60,000 34,000 8,000 3,000 1,500 4,000
(a) Cash balance on 1st May 2006 Rs. 8000
(b) Plant costing Rs.16,000 is due for delivery in July: Payable 10% on delivery and
the balance after 3 months.
(c) Advance tax of Rs.8000 each is payable in March and June
(d) Period of credit allowed (i) by suppliers two months (ii)to customers one month
(e)Lag in payment of manufacturing exp is 1/2 months
(f) Lag payment of office and selling expenses 1 month


38. A co. expects to have Rs. 37,500 cash in hand on 1st April 2006 and requires you to
prepare an estimate of cash position during the 3 months of April to June 2006.
Factory Office Selling
Month Sales Purchases Wages exp. exp exp
Feb. 75,000 45,000 9,000 7,500 6,000 4,500
March 84,000 48,000 9,750 8,250 6,000 4,500
April 90,000 52,000 10,500 9,000 6,000 5,250
May 1,20,000 60,000 13,500 11,250 6,000 6,570
June 1,35,000 60,000 14,250 14,000 7,000 7,000
(i) Period of credit allowed by suppliers - 2months
(ii) 20% of sales is for cash and a period of credit is allowed to customers for credit
sales in one month
(iii) Delay in payment of wages and all expenses - 1month
(iv) Income tax of Rs.57000 is due to be paid on June 15,2006
(v) The company is to pay dividends to shareholders and a bonus to workers of Rs.
15,000 and Rs.22,500 respectively in the month of April.
(vi) Plant has been ordered and is expected to be received and paid in May. It will cost
Rs.1,20,000.
39. Prepare a flexible budget for production at 80% and 100% activity on the basis of the
following information:
Production at 50% capacity 5000 units
Raw materials Rs.80 per unit
Direct labor Rs. 50 per unit
Direct expenses Rs.15 per unit
Factory expenses Rs.50,000(50% fixed)
Admin expenses Rs.60,000 (60% variable)
UNIT III – Ratio Analysis

SECTION A- (2 Marks)
1. What is Ratio Analysis?
2. What is a Current Asset?
3. What is the safe level for ‘The proprietary ratio?
4. State any two advantages of Ratio analysis?
5. Mention the modes of expression of ratios.
6. State any two advantages of ratio analysis.
7. What are the steps involved in ratio analysis?
8. What is a Current ratio?
9. Explain the meaning of R.O.I
10. State any two disadvantages of Ratio analysis?


11. What is the P/E ratio? What does it convey?

12. State any four profitability ratios with formulas.
13. Find out Return on shareholders’ funds from the following information:
Equity share capital Rs.12,00,000
Preference share capital Rs. 3,00,000
Reserves Rs. 5,00,000
Net profit after tax Rs. 10,00,000
14. Find out the amount of creditors from the following:

Sales Rs.60,000
Bills payable Rs. 2,500
Creditors velocity 73 days
Gross profit on sales 10%
Opening stock Rs.5,000
Closing stock Rs.10,000
15. From the following information calculate the average collection period:
Particulars Rs.
Total sales 2,00,000
Cash sales 40,000
Sales return 14,000
Debtors (31-3-2021) 18,000
Creditors (31-3-2021) 20,000
Provision for bad debts 2,000
Bills receivable (31-3-2021) 4,000
16. Determine the value of the closing stock from the following details:
Sales- Rs.4,00,000, Gross profit ratio- 10% on sales, Stock velocity- 4 times, Closing
stock was Rs.10,000 in excess of opening stock.
17. From the following information, find out-a) Current assets b) Current liabilities
Current ratio 2.5; Working capital Rs.90,000
18. Find out the debt equity Ratio for 2007:
Long term debt- Rs.2,50,000, Share capital- Rs.4,00,000, Retained Earnings-
Rs.1,00,000.
19. Find out Fixed Assets and Gross Profit from the following information:
Sales Rs.10,00,000
Gross Profit Ratio 25%
Fixed Assets Turnover Ratio (on the cost of sales ) 5 times.


20. Land & Buildings –Rs 6,00,000, Equity Share Capital –Rs 5,00,000, Debentures –
Rs4,00,000, Sundry Creditors –Rs 1,50,000, Bank Over-draft –Rs 50,000,
Stock –Rs 2,40,000. Debtors –Rs 2,00,000, Cash & Bank –Rs 55,000,
Prepaid Expenses –Rs 5,000. From the above particulars
21. From the following particulars calculate Net profit ratio:

Particulars Rs.
Opening stock 30,000
Purchases 90,000
Sales 1,60,000
Expenses 25,000
Closing Stock 35,000
22. Calculate Gross Profit Ratio from the following figures:
Sales Rs.
Sales returns 10,00,000
Opening stock 1,00,000
Purchase 2,00,000
Purchase returns 6,00,000
Closing stock 1,50,000
65,000
SECTION B- (10 Marks)

23. The following are the ratios of a trading concern:
Debtors Velocity - 3 months
Stock Velocity - 8 months
Creditors Velocity - 2 months
Gross Profit for the year amounted to Rs 4,00,000.
The closing stock of the year is Rs 10,000 more than the opening stock.
Bills receivable Rs 25,000. Bills Payable Rs 10,000.
Find out (a) Sales Tax (b) Sundry Debtors (c) Closing Stock (d) Sundry creditors.
24. Calculate Payout Ratio and Retained Earnings Ratio from the following information:
Net Profit Rs 10,000
Provision for Tax Rs 5,000
Preference Dividend Rs 2,000
Number of Equity Shares 3000 shares
Dividend for Equity Share Re. 0.40


25. From the following particulars pertaining to assets and liabilities of a

company calculate (1) current ratio (2) Liquid ratio (3) Proprietary ratio
(4) Debt-Equity ratio (5) Capital Gearing ratio.
Liabilities Rs. Assets Rs.
5,000 Equity shares 5,00,000 Land and Building 6,00,000
2,000 8% Preference shares 2,00,000 Plant and machinery 5,00,000
4,000 9% Debentures 4,00,000 Stock 2,40,000
Reserves 3,00,000 Debtors 2,00,000
Creditors 1,50,0000 Cash and bank 55,000
Bank overdraft 50,000 Pre-paid expenses 5,000
Total 16,00,000 Total 16,00,000
26. What are the advantages and limitations of Ratio Analysis?

27. State and explain how the accounting ratios are classified
28. The following ratios and other data related to the financial statement of J Co. Ltd for the
year ending 31st March 2018:
Inventory turnover ratio (based on closing stock) 4 times
Earnings per share Re. 0.50
Debt collection period 73 days
No. of shares issued 20,000
Earnings for the year on share capital 25%
Working capital ratio (current ratio) 1.75
Acid test ratio 1.27
Working capital; Rs. 33,000
Fixed assets to shareholders’ equity 0.625
29. Compute a) payout ratio b) Earnings per share c) retained earnings ratio from the
following information:
Net profit 80,000
Provision for tax 40,000
Preference dividend 10,000
No. of equity shares 30,000
Dividend per equity share Re. 0.45


30. From the following particulars calculate turnover ratios:

Rupees in
Particulars
lakhs
Sales 17,874
Sales return 4
Other income 53
Cost of sales 15,440
Administrative and selling expenses 1,843
Depreciation 63
Purchases 15,000
Purchases return 5
Debtors 10,000
Bills receivable 2,000
Creditors 5,000
Bills payable 3,000
Opening stock 4,000
Closing stock 5,000
Fixed assets 5,000
31. From the following information find out a) current assets b) current liabilities c) stock d)
fixed assets
Current ratio 2:5
Liquid ratio 1:5
Fixed assets/proprietary funds 0.75:1
Working capital 60,000
Reserves & surplus 40,000
Bank overdraft 10,000
There is no long-term loan or fictitious asset.
32. From the following details, make out the statement of proprietary funds.
Long term loans Rs.50,000
Working capital Rs.80,000
Reserves to capital 1:2
Current ratio 2:1
Liquid ratio 1.4:1
Fixed assets to proprietary funds 0.6
There are no fictitious or intangible assets


33. Rearrange the following statement in a form suitable for analysis and calculate 5
significant ratios to analyze the financial trend of the business.
PARTICULARS YEAR 1 YEAR 2
Bank 15,380 26,020
Debtors 11,260 11,210
Stock 56,160 50,460
Net fixed assets 2,17,200 2,19,810
Total 3,00,000 3,00,000
Creditors 20,000 16,500

Bills payable 12,750 6,500
Debentures 1,00,000 1,00,000
Reserves 67,250 84,500
Paid up capital 1,00,000 1,00,000
Total 3,00,000 3,00,000
SECTION- C- (20 Marks)

34. From the following information, you are required to prepare a Balance Sheet.
(a) Current Ratio 1.75
(b) Liquid Ratio 1.25
(c) Stock Turn-over Ratio –(Cost of Sales/Closing Stock) - 9.
(d) Gross Profit Ratio 25%
(e) Debt Collection Period 1 1/2 Months
(f) Reserves and Surplus to Capital 0.2
(g) Turn Over to Fixed Assets – (based on Cost of Sales) – 1.2.
(h) Capital Gearing Ratio - 0.6
(i) Fixed Assets to Net Worth 1.25
(j) Sales for the year - Rs 12,00 000
35. Following are the Ratios relating to the trading activities of Neelan Traders Ltd., Madras.
Receivables turnover = 90days (360 days year)
Inventory turnover = 3 times
Payables turnover = 3 months
Gross Profit Ratio = 25%
Gross profit for the year amounted to Rs.18,000.
Closing inventory of the year is Rs.2,000 above the opening inventory.
Bills receivable amount to Rs.2,500 and Bills payable Rs.1,000. Ascertain the
following:
a) Sales (b) Debtors (c) Closing Inventory (d) Sundry Creditors.

36. From the following information, prepare a Balance Sheet.

Gross profit ratio 20%
Inventory turnover 6 times
Fixed assets turnover 2 times
Reserves to capital 8:1
Current ratio 2.5
Acid test ratio 1.5
Sales Rs. 3,00,000
Cash Rs. 10,000
Opening Stock Rs. 30,000
Long term loan Rs. 15,000
37. From the following information, you are required to prepare a Balance Sheet.
(a) Current Ratio 2.5
(b) Liquid Ratio 1.5
(c) Stock Turnover Ratio –(Cost of Sales/Closing Stock) - 6 times.
(d) Gross Profit Ratio 20%
(e) Debt Collection Period 2 Months
(f) Reserves and Surplus to Capital 0.5
(g) Turn Over to Fixed Assets – (based on Cost of Sales) – 2 times.
(h) Net working capital Rs. 3,00,000
(i) Fixed Assets to Net Worth 0.80
38. From the following information, prepare a Balance Sheet.

Fixed assets Rs.6,00,000
Working capital Rs. 4,00,000
Current ratio 2:1
Fixed assets to turnover 4 times
Debtors’ velocity 1.5 months
Creditors Velocity 2 months
Stock velocity 2 months
Net profit 5% of turnover
Reserve 2/3 of net profits
Capital gearing 1:1


39. The following are the summarized P&L A/c of Star Ltd., for the year ending
31.12.2021and the Balance sheet as of that date.
Profit and Loss Account
PARTICULARS Rs. PARTICULARS Rs.
To opening stock 49,750 By sales 4,25,000
To purchases 2,72,625 By closing stock 74,500
To carriage inwards 7,125
To Gross Profit 1,70,000
4,99,500 4,99,500
To Selling and distribution 75,000 By Gross Profit 1,70,000
expenses
To office expenses 15,000 By Interest 1,500
To salaries 7,500 By profit on sale of assets 3,000
To loss on sale of 2,000
investment
To Net Profit 75,000
1,74,000 1,74,000
Balance Sheet
LIABILITIES Rs. ASSETS Rs.
Issued capital 2,000 equity 1,00,000 Land & Buildings 75,000
shares of Rs.50 each
Reserves 45,000 Plant & Machinery 40,000
Current liabilities 65,000 Stock-in-trade 74,500
P & L Account 30,000 Sundry debtors 35,500
Cash at bank 15,000
2,40,000 2,40,000
From the above you are required to calculate the following:
a) Current ratio
b) Operating ratio
c) Operating profit ratio
d) Stock turnover ratio
e) Proprietary ratio
f) Turnover of fixed assets
g) Return on total assets
h) Turnover of working capital
i) Acid-test ratio
j) Super quick ratio


40. The following ratios and other data relating to the financial statements of Mr. X Ltd., for
the year ending 31st Dec 2021.
Current ratio 1.75
Acid test ratio 1.27
Working capital Rs. 33,000
Fixed assets to shareholders equity 0.625
Inventory turnover (based on closing stock) 4 times
Earnings per share Re. 0.50
Debt collection period 73 days
No. of shares issued 20,000
Earnings for the year on share capital 25%
The company has no prepaid expenses, deferred charges, intangible assets or
long-term liabilities. You are required to prepare the company’s balance sheet and
Profit and Loss account.
UNIT 4 – MARGINAL COSTING

1. Define marginal Costing.
2. Define Marginal Cost.
3. What is contribution?
4. Differentiate variable cost and fixed cost.
5. What is the P/V ratio?
6. Explain the meaning of Break-Even Point.
7. What is Angle of Incidence?
8. What is the Margin of Safety?
9. What is the Key Factor?
10. What is Incremental analysis or Differential Costing?
11. Calculate the P/V ratio from the data given below:
2018: Sales Rs.6,00,000: Profit Rs.1,00,000
2019: Sales Rs.10,00,000: Profit Rs.1,80,000.
12. Find out Variable Cost:

Sales Rs.4,00,000
P/V ratio: 25%
13. Sales Rs.10,00,000

Variable Cost Rs.7,00,000 Loss Rs.1,00,000 Find out the fixed cost.


14. Ascertain contribution:

Sales Rs.12,00,000 P/V ratio 35%
15. Compute Margin of Safety:

Profit Rs.2,25,000 and P/V Ratio 25%
16. What is the Break-even point when?

P/V ratio is 40% and Fixed Cost is Rs.5,00,000?
17. From the following data, determine the break-even point:

Fixed overhead Rs.25,000 Variable Cost Rs.10 per unit
Selling Price Rs.15 per unit
What should be the sales volume to make a profit of Rs.25,000?

1. Explain the Advantages and Limitations of Marginal costing.
2. ‘Marginal Costing is a valuable aid for Managerial Decision’. Discuss. (or)
What are the Managerial Applications?
3. Differentiate Marginal Costing and Absorption Costing.
4. From the following information relating to Palani Bros.Ltd.,you are required

to find out (a)P/V Ratio (b)Break Even Point (c)Profit (d)Margin of Safety
(e)Volume of sales to earn profit of Rs.6,000.
Total Fixed Costs Rs.4,500
Total Variable Cost Rs.7,500
Total Sales Rs.15,000.
5. Two businesses S.V.Ltd. and T.R.Ltd., sell te same type of product in the same type of
Market. Their budgeted Profit and Loss Accounts for the coming yearare as follows:
S.V.Ltd., (Rs.) T.R.Ltd., (Rs.)
Sales 1,50,000 1,50,000
Less: Variable Cost 1,20,000 1,00,000
Less: Fixed Cost 15,000 35,000
Budgeted Net Profit 15,000 15,000
(a) Calculate break-even point of each business
(b) Calculate the sales volume at which each business will earn Rs.5,000 profit.
(c) State which business is likely to earn a greater profit in conditions of:
i. heavy demand for the product
ii. low demand for the product.


6. You are given the following data for the 2019 of a concern:
Variable Cost Rs.6,00,000
Fixed Cost Rs.3,00,000
Net Profit Rs.1,00,000
Sales Rs.10,00,000
Find (a)P.V.Ratio (b)B.E.P. (c)Profit when sales are Rs.12,00,000 (d)Sales in rupees to earn
a profit of Rs.2,00,000 and €Margin of Safety.
7. The information about Raj&Co., is given below:

(a) Profit-volume ratio 20%
(b) Fixed cost Rs.36,000
(c) Selling Price per unit Rs.150
Calculate (a)B.E.P. (in Rs.) (b)B.E.P. (in units) (c) Variable Cost per unit
(d) Profit on Sales of Rs.4,00,000 and €Margin of Safety.
8. Manali Corporation Ltd., has prepared the following budget estimates for the year
2018-2019:
Sales units - 15,000
Fixed Expenses - Rs.34,000
Sales Value - Rs.1,50,000
Variable Costs - Rs.6 per unit.
(a) Find P/V Ratio, B.E.P., and Margin of Safety
(b) Calculate the revised P/V Ratio, B.E.P., and Margin of Safety in each of the
following cases.
(i) Decrease of 10% in selling price
(ii) Increase of 10% in variable costs.
9. From the following find out:

(a) P/V ratio (b) B.E.P. (c) Sales for 40%P/V Ratio
(d) Margin of Safety from the Sales of Rs.3,00,000 (e) Net Profit from the Sales of
Rs.3,00,000 (f) Required Sales for the Net profit of Rs.70,000 (g) Required sales for the net
profit of Rs.70,000 after-tax, the corporate income tax rate is 60% (h)Additional Sales are
required to cover an increase of Rs.3,000p.a. in the sales manager’s salary. Position of the
company for the year 2019:
Sales Rs.2,00,000
Less: Variable Cost 1,50,000
Contribution 50,000
Less: Fixed Cost 15,000
Net Profit 35000


10. Reliance Battery Co. furnishes you the following information:

First Year (Rs.) Second Year (Rs.)
Sales 8,10,000 10,26,000
Profit 21,600 64,800
From the above you are required to compute the following assuming that the fixed cost
remains the same in both the periods:
(a) P/V Ratio (b)Fixed Cost (c)The amount of profit or loss when sales are
Rs.6,48,000 (d)The number of sales required to earn a profit of Rs.1,08,000 (e)
Sales at the Break-even point.
SECTION-C- (20 Marks)
1. Assuming that the cost structure and selling prices remain the same in periods I and II.
Find out (i)Profit Volume ratio (ii)fixed cost (iii)Break-even point for sales (iv)Profit when
sales are Rs.1,00,000 (v)Sales required to earn a profit of Rs.20,000 (vi)Margin of safety at
a profit of Rs.15,000 and (vii)Variable cost in period II
Period Sales (Rs.) Profit (Rs.)
I 1,20,000 9,000
II 1,40,000 13,000
2. The following information is obtained from ‘A’ Co. Ltd. In a certain year:
Sales Rs.1,00,000; Variable Cost Rs.60,000; Fixed cost Rs.30,000.
(a) Find the P/V ratio, Break-even point, and Margin of Safety at this level.
(b)Calculate the revised P/V ratio, Break-even point, and Margin of Safety in each of the
following cases: (1)20% increase in selling price (2)10% decrease in selling price (3) 5%
decrease in sales volume (4)10% decrease in fixed costs(5)10% decrease in variable
cost(6)20% increase in sales price accompanied by an increase of fixed overhead by
Rs.10,000(7)20% increase in sales price accompanied by 10% decrease in variable cost and
10%increase in fixed costs.
3. (a)Raman & Co. Produces 2 products X and Y. The technical labour needed to produce
the products is in short supply. The following data is available for the year ending 31-3-
2019.
Product X Product Y
Per Unit (Rs.) Per Unit (Rs.)
Material 40 60
Labour (at Rs.2 per hour) 20 12
Variable Overheads (50% of Labour) 10 6
Fixed Cost at the current capacity level


Product X Product Y
Per Unit (Rs.) Per Unit (Rs.)
15 30
Selling Price 100 120
Units sold 900 2000
Maximum labour hours available per month 3000 hours.
If maximum profit is to be made using the remaining capacity by producing and selling the
best product when labour time is limited present production of either product should be
kept as the minimum output, to determine the maximum profit.
(b)The management of B company Ltd., is considering the sales budget for the next budget
period. You are required to present to the management a statement showing
(i)the marginal cost of each product and (ii)to recommend which of the following sales
mixes should be adopted:
(1)1800 units of X (2)1200 units of Y (3)1200 units of X and 400 units of Y
(4)900 units of X and 600 units of Y.
The chief accountant has ascertained the following information:
Product X (Rs.) Product Y (Rs.)

Direct Material 10 12.50
Selling price 30 50
Direct labour 25 paise per hour 20 hrs 30 hrs
Variable overheads: 100% of labour
Fixed overheads: Rs.10,000.
4. (a)The following particulars are taken from the records of a company engaged in
manufacturing two products X and Y from a certain raw material:
Product X Product Y
(Rs. Per u nit) (Rs. Per unit)
Sales 125 250
Material cost (Rs.2.5 per kg) 25 62.50
Wages(Rs.15 per hour) 37.50 75
Variable overhead 12.50 25
Total fixed overheads Rs.50,000
Comment on the profitability of each product when:
(a) Total availability of raw material is 20,000 kgs and the maximum sales potential of
each product is1000 units. Find the product mix to yield maximum profit. Determine the
maximum profit.
(b)Total sales in value is limited.
(c)Labour Time is limited.
(d)Production capacity in units is a key factor.

(b) Following information has been made available from the cost records of united
Automobile Ltd. Manufacturing spare parts:
Direct Materials X Rs.8 per unit; Y Rs.6 per unit.
Direct Wages X 24 hours@25 ps per hour: Y 16 hours @25 ps per hour.
Variable overheads 150% of direct wages.
Fixed overheads (total) Rs.750
Selling Price X Rs.25; Y Rs.20.
The directors want to be acquainted with the desirability of adopting any one of the
following alternative sales mixes in the budget for the next period.
(a)250 units of X 250 units of Y. (b)400 units of Y.
(c)400 units of X and 100 units of Y (d)150 units of X and 250 u its of Y.
State which of the alternative sales mixes you would recommend to the management.
5) XYZ Ltd., is considering the purchase of a new machine which would carry out some
operations at present performed by manual labour. The two alternative models
under consideration is ‘Damsel’ and ’Shylock’. The following information, from which a
profitability statement is to be prepared for submission to the Board of Directors, is
available.
Damsel Shylock
Cost of the machine (rs.) 3,00,000 5,00,000
Estimated life (in Years) 10 12
Estimated savings in scrap p.a.(rs.) 20,000 30,000
The additional cost of supervision p.a. 24,000 32.000
(rs.)
The additional cost of maintenance p.a. 14,000 22,000
(rs.)
Cost of indirect material p.a. (rs.) 12,000 16,000
Estimated savings in wages:
Wages per worker p.a.(Rs.) 1,200 1,200
Workers not required 150 200
The rate of taxation may be regarded as 50% of profits. Which model can be recommended
for Purchase? Give reasons for your answer.
******


UNIT V - STANDARD COSTING

1. What is Variance Analysis?
2. Define Standard Costing.
3. When do we need to calculate (i) Material Yield Variance and (ii) Material Mix
Variance?
4. What is the ideal standard?
5. What are the limitations of standard costing?
6. Differentiate between standard cost and estimated cost.
7. Which type of Firms use Standard Costing?
8. What is Unfavorable Variance?
9. Mention any two uses of Variance Analysis.
10. What is the meaning of Standard Hour?
11. Calculate Material Cost Variance:
Standard Actual
Quantity 400 kg 460 kg
Price Rs.2 per kg. Rs.1.50 per kg
12. Calculate Material Price Variance:
Standard : 2,740 units at Rs.15 each
Actual : 3,000 units at Rs.17 each.
13. Calculate Labor Cost Variance:
Standard Hours:80; Rate: Rs.6 per hour; Actual Hours:100; Rate: Rs.8 per hour.
14. Calculate Labor Rate Variance:
Standard Hours:80; Rate: Rs.6 per hour; Actual Hours:100; Rate: Rs.8 per hour
15. Calculate Labour Efficiency Variance:
A factory planned to produce 1,000 units of a product, using 8,000 Labour hours
costing Rs.40 each. Actually, 900 units were produced by working 8,200 Labour
hours.
16. Ganesh purchased and used 800 tons of a chemical at Rs.40 per ton whereas the
standard price fixed was Rs.48 per ton. Calculate material price variance.
17. Standard rate per labor hour in a factory was Rs.20. However, a monthly payment was
made for 26,000 labor hours at Rs.22 each. Compute labor rate variance.
18. Calculate material usage variance for the following data:
a. Standard: 400 units @ Rs.10 each
b. Actual: 360 units @ Rs.7 each
19. Draw the material variances analysis chart.
20. What is Idle Time Variance? How will you calculate idle time variance?



21. Distinguish between budgetary control and standard costing.
22. Explain the Advantages and Limitations of Standard Costing.
23. From the following data compute Labor Cost Variance , Labor Rate Variance,
Labour Efficiency Variance and Labour Mix Variance.
Budgeted labour composition for producing 100 units.
20 men at Rs.1.25 per hour for 25 hours
30 women at Rs.1.10 per hour for 30 hours
Actual labour composition for producing 100 units.
25 men at Rs.1.50 per hour for 24 hours
25 women at Rs.1.20 per hour for 25 hours.
24. From the following data, calculate labour variances for the two departments:
Dept. A Dept. B
Actual direct wages Rs.80,000 Rs.72,000
Standard hours produced 10,000 8,000
Standard rate per hour Rs.8 Rs.10
Actual hours worked 12,000 7,000
25. Shahsun Chemicals Industries provide the following information:

For making 10 kg of GEMCO the standard material required is:
Material Quantity (kg) Rate per kg (Rs.)
A 8 6
B 4 4
During April, 1,000 kg of GEMCO were produced. The actual consumption of
materials is as under.
Material Quantity (kg) Rate per kg (Rs.)
A 750 7
B 500 5
Calculate Material Variances.
26. From the data given below calculate:

Material Cost Variance, Material Price Variance and Material Usage Variance.
Particulars Standard Standard Price Actual Actual Price
Quantity (Rs.) Quantity (Rs.)
(units) (units)
A 1,050 2 1,100 2.25
B 1,500 3.25 1,400 3.50
C 2,100 3.50 2,000 3.75


27. Calculate material usage variance, material mix variance and material sub-usage
variance for the following:
Standard Actual Standard Price Per
Material Quantity Quantity Unit
Kg Kg Rs.
A 500 460 10
B 300 480 12
C 200 260 8
28. Calculate material cost variance, material price variance, material usage variance and
material mix variance:
Material Standard Actual
A 90 units at Rs.12 each 100 units at Rs.12 each
B 60 units at Rs.15 each 50 units at Rs.16 each
29. You are required to compute material cost, price and usage variances from the data
given below:
• Standard material for one unit of output: 3 kg at Rs.10 per kg.
• Production during March 2020: 6000 units of output
• Materials consumed: 20,400 kgs at Rs.11 per kg.
30. Calculate all the material variances for the following data:
Standard Standard Actual Actual
Material Quantity Price Quantity Price
Kg. Rs. Kg. Rs.
A 200 8 210 7.50
B 300 6 350 6.50
31. The information regarding the composition and hourly wage rates of labour force
engaged on a job scheduled to be completed in 30 hours are as follows:
Standard Actual
Hourly Wage
Labour Type No. of No. of Hourly Wage
rate per
workers workers rate per worker
worker
Skilled 75 6 70 7
Semi-skilled 45 4 30 5
Un-skilled 60 3 80 2
The work was completed in 32 hours. Calculate:
i. Labour Cost Variance ii. Labour Rate Variance
iii. Labour Efficiency Variance iv. Labour Mix Variance
v. Labour Sub-efficiency Variance


32. From the following data, calculate labour variances:

Budgeted labour for completing job X:
• 8 skilled workers at Rs.10 per hour for 20 hours
• 12 unskilled workers at Rs.8 per hour for 20 hours
Actual labour for completing job X:
• 12 skilled workers at Rs.11 per hour for 20 hours
• 13 unskilled workers at Rs.7 per hour for 20 hours
SECTION C- (20 Marks)

33. A gang of workers usually consists of 10 men, 5 women, and 5 boys in a factory. They
are paid at standard hourly rates of Rs.1.25, Re.0.80 and Re.0.70 respectively. In a
normal working week of 40 hours, the gang is expected to produce 1,000 units of
output. In a certain week, the gang consisted of 13 men, 14 women and 3 boys. Actual
wages were paid at the rate of Rs.1.20, Re.0.85 and Re.0.65 respectively. Two hours
were lost due to abnormal idle time and 960 units of output were produced.
Calculate all possible labour variances.
34. From the following, calculate all possible sales variances:

Standard Actual
Product
Price per unit Price per unit
Type Qty. Qty.
Rs. Rs.
M 200 15 220 12.50
N 120 20 100 22.50
O 80 10 120 15.00
Total 400 - 440 -
35. Mixers Ltd engaged in producing a standard mix, using 60 kgs of chemical X and 40
kgs of chemical Y. The standard loss of production is 30%. The standard price of X is
Rs.5 per kg and of Y is Rs.10 per kg.
The actual mixture and yield were as follows:
X – 80 kgs at Rs.4.50 per kg
Y – 70 kgs at Rs.8 per kg
Actual yield 115 kgs
Calculate all the material variances.
36. The standard cost of a certain chemical mixture is:

40% of material A at Rs.25 per kg.
60% of material B at Rs.36 per kg.
A standard loss of 10% is expected in production.
During a period, the following is used:


150 kg of material A at Rs.27 per kg .

260 kg of material B at Rs.34 per kg .
The actual output is 360 kg.
Calculate material cost, price, usage, mix, and yield variances.
37. Calculate labour variances from the following:

Standard cost Hours Rate (Rs.) Amount (Rs.)
Men 800 3 2,400
Women 200 2 400
1,000 2,800
Actual cost Hours Rate (Rs.) Amount (Rs.)
Men 600 2.50 1,500
Women 500 2.00 1,000
1,000 2,500
38. The following details relating to the product X during the month of March 2010 are
available. You are required to compute material and labour cost variances:
Standard cost per unit:
Material 50 kgs at Rs.40 per kg.
Labour 400 hours at Re.1 per hour.
Actual cost for the month:
Materials 4,900 kgs at Rs.42 per kg.
Labour 39,600 hours at Re.1.10 per hour
Actual production = 100 units.
39. From the following information calculate variances:

Standard direct cost per unit:
Material Cost 10 Kg, Rs.100
Labour Cost 40 Hours, Rs.20
For the production of 250 units materials consumption amounted to Rs.25,625
against 2,600 kgs. Wages payment was Rs.5,950 for 10,900 hours including 100
hours idle time due to power failure.


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LOYOLA COLLEGE (AUTONOMOUS)

CHENNAI – 600 034.

EVEN SEMESTER (2021-22)

S. No. S_Code Subject Name Page No

1 UCO 2501 Business Law

2 UCO 2302 Statistics for Decision Making

3 UCO 4501 Cost Accounting

4 UCO 4502 Entrepreneurship Development

5 UCO 4601 EXIM Procedure & Documentation

6 UCO 4602 Financial Reporting & Analysis

7 UCO 4603 Managing Innovation

8 UCO 4604 Service Marketing

9 UCO 4403 Stock Market Operations

10 UCO 4404 Supply Chain Management

11 UCO 6501 Management Accounting

12 UCO 6502 Financial Management

13 UCO 6503 Human Resource Manageent

DYNAMIC QUESTION BANK

UNIT-1 CASH FLOW STATEMENT

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

UNIT II – Budgetary Control

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

17. Compute the material consumption during November 2022.

SECTION – B- (10 Marks)

21. Explain the objectives of budgetary control.

DYNAMIC QUESTION BANK

25. Explain the different classifications of budgets.

You are required to:

29. Prepare a Production budget from the following information.

Product Estimated stock on Estimated sales during Desired closing stock on

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

SECTION – C- (20 Marks)

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

UNIT III – Ratio Analysis

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

11. What is the P/E ratio? What does it convey?

14. Find out the amount of creditors from the following:

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

21. From the following particulars calculate Net profit ratio:

22. Calculate Gross Profit Ratio from the following figures:

SECTION B- (10 Marks)

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

25. From the following particulars pertaining to assets and liabilities of a

26. What are the advantages and limitations of Ratio Analysis?

Prepared by – Prof. Hermina Corera, Dr P. V. Saravanan, Dr D. John Benedict,

DYNAMIC QUESTION BANK

30. From the following particulars calculate turnover ratios: