toy Time : Three hours we Nee 1. 2. MBA 14 NR/14 R/14 M.B.A. DEGREE EXAMINATION, - NOVEMBER/DECEMBER 2019. ‘Business Administration ACCOUNTING FOR MANAGERS (For 2011 - 12 to 2018 - 19 batches onwards) Maximum : 100 marks PART A — (6 x 5 = 30 marks) Answer any SIX questions. Describe the various branches of accounting. What is depreciation? Explain the necessity of providing depreciation. What are turnover ratio? Discuss about any three turnover ratios. State the meaning of break-even analysis. Explain its assumptions and uses. Define Cost accounting. Describe the various classifications of cost. Write a detailed note on Cost unit and Cost centre.An asset is purchased for Rs. 25,000. Depreciation is to be provided annually according to the straight line method. The useful life of the asset is 10 years and the residual value is Rs. 5,000. You are required to find out rate of depreciation and A prepare the Asset A/c for the first three years. From the following details, you are required to calculate the value of creditors: ‘Rs. ‘Sales 2, 50,000 Gross profit ratio 20% Creditors velocity 73 days Opening stock 25, 000 Closing stock 50, 000 Bills payable 15,000 2 MBA 14 NR/14 R/14(eo ‘c we mee 10. a The following are obtained from the records of a factory: Rs. Sales (4,000 units @ Rs. 25 each) —_1,00,000 Variable cost 72,000 Fixed cost 16,800 Calculate: (a) P/V Ratio (b) Break — even sales (c) Margin of safety (d) What addition unit should be sold to obtain the same amount of profit if the selling price is reduced to Rs. 20? You are required to compile a statement showing cost and profit from the information given, showing Cleary: (a) Material consumed (b) Prime cost (c) Works cost . 3 MBA 14 NR/I4 R/14(d) Cost of production \x (e) Cost of sales () Profit and (g) Sales. Particulars Rs. Material Purchased 2,00,000 Wages 1,00,000 Direct expenses . 20,000 Opening stock of materials 40,000 Closing stock of materials 60,000 Factory overhead is absorbed at 20% on wages. Administration overhead is 25% on the works cost. Selling and distribution overhead is 20% on the cost of production. Profit is 20% on sales. 4 MBA 14 NR/14 R/14le 4 PART B-— (5 x 10 = 50 marks) Answer ALL questions. ll Explain briefly the various accounting concepts. Or 12. Prepare trading, profit and loss account and balance sheet as on 31.3.2018 from the following trail balance of Mr. X. Particulars Debit Credit Capital 3,00,000 Bank overdraft 50,400 Sales -18,06,000 Furniture 61,200 Business Premises 2,40,000 Creditors 1,59,600 Opening stock 2,64,000 Debtors 2,16,000 Rent, 12,000 Purchase 13,20,000 Discount 4,800 Insurance 32,000 Wages 48,000 5. MBA 14 NR/14 R/14Particulars Debit Salaries 1,08,000 Advertisement 26,400 Carriage on purchase 21,600 Provision for bad and doubtful debts Bad debts 1,600 Income tax 8,000 ; 23;46,800 Adjustment: \\o Credit 14,000 23,46,800 (a) Closing stock on 315 March 2018 was Rs. 2,40,000 (b) Make a provision of 5% on sundry debtors by bad and doubtful debts (c) Rent received in advance Rs. 4,000 (d) Provide 10% depreciation on furniture and business premises. 6. MBA 14 NR/14 R/14» sa 13. Describe the features of capital and revenue expenditure with suitable examples. es — ce Or ca A limited company purchased a machinery on 1.6.2015 for Rs. 2,10,000. On 1 October 2017 it purchased another machinery for Rs.1,00,000. On {Gy Ist October 2017, it sold the first machinery purchased on 1.6.2015 for Rs. 1,80,000. Accounts Sq are closed every year on 315t March. Depreciation is written off at 10% per annum on Diminishing Balance method. & Prepare Machinery account and Depreciation account for the first three years. e& 15. What is Ratio analysis? Explain the merits and -& , demerits of ratio analysis. ey € Or ¢ 16. From the following Balance sheet of a concern, prepare a Funds Flow statement. € 4 Liabilities 2016 2017 Assets 2016 2017 Rs. Rs. Rs, Rs. Share Capital 60,000 65,000 Goodwill 30,000 25,000 Profit & Loss 34,000 26,000 Plant Ale and Current Machinery 60,000 50,000 ! Liabilities 12,000 3,000 Current . Assets 16,000 19,000 1,06,000 _ 94,000 1,06,000 __ 94,000 7 MBA 14NR/14 R/14e@ rT ww ee % x rT. = Additional Inform ation: (a) Depreciation of Rs, 20,000 on plant and machinery was charged to profit and ‘Loss Account. (b) Dividends of Rs. 12,000 were paid during year, Describe the merits and demerits of marginal . costing. Or The sales turnover and profit during two years were as follows: Your ‘Sales Profit Rs. Rs. < 2015 1,50,000 20,000 rx ,0U, > wie 2016 1,70,000 25,000 or ent You are required to calculate: (a) The P/V Ratio (b) The Break-even point ‘() «The sales required to earn a profit of Rs. 40,000 (a) The profit made when sales are Rs. 2,50,000; and (e) The margin of safety at profit of Rs. 50,000. 8 MBA 14 NR/14 R/1419. Explain the various techniques of costing. Or 20. M/S. Indu Industries Ltd., are the manufactures of Moonlight Torches. The following data relate to manufacture of torches during the month of March nanthoanoaonnno py 2015. Rs. Raw materials consumed 20,000 Direct wages 12,000 Machine hours worked a 9,500 hours Machine hour rate $e 2 , < x Office overheads e SS 20% of works cost Selling overheads 50 paise per unit Units produced. 20,000 units 4 Units sold - 18,000 @ Rs. 5 per unit 4 Prepare cost sheet showing the cost and the profit per unit and the profit earned. ! 9. MBA14 NR/14 R/14) PART CG — (1 x 20 = 20 marks) Compulsory 21, Following informiation has been made available > from the cost records of a company, manufacturing spares parts ' Per'unit , Rs. Direct Materials i} xX 8 Y 6 Direct wages: x 24 hours @ 25 paise per hour z 16 hours @ 25 paise per hour . Variable Overheads - 150% of wages Fixed Overheads 750 - Selling Price of X 25. oe Selling Price of Y 20 The directors want fo 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 and 250 units of Y . (b) 400 units of Y only (c) 400 units of X and 100 units of Y (d@) 150 units of X and 350 units of Y State which of the alternative sales mixes you would recommend to the management. 10 MBA14 NR/14 R/14At MBA 14. NR M.B.A. DEGREE EXAMINATION, APRIL/MAY 2019. First Semester ; Business Administration ACCOUNTING FOR MANAGERS Liner: (From 2018-2019 Batch onwards) VER. . ime : Three hours Maximum : 100 marks PART A — (6 x 5 = 30 marks) Answer any SIX out of Ten of the following questions. 1. Highlight the objectives of Financial Accounting. 2. Journalise the following transactions : (a) Purchased goods for cash Rs. 10,000 c (b) Purchased stationery for cash Rs. 500 - (c) Sold goods to Mr. Paul Rs. 15,000 -(d) Paid salary Rs. 5,000. 3. - What are the causes of depreciation? 4, A machine purchased on 1* July 2013 at a cost of Rs. 14,000 and Rs. 1,000 was spent on its ’. installation. The depreciation is written. off at 10% on the original cost every year. The books are closed on 31st December each year. The machine was sold for Rs. 9,500 on 31st March 2016. Show the machinery account for all the years.From the following information calculate current ratio. Sales Rs. 30,00,000 ; Cost of sales Rs. 20,00,000 ; Net profit Rs. 4,00,000 ; Average inventory Rs. 8,00,000 ; Other currerit assets Rs. 7,00,000 ; Fixed assets Rs. 15,40,000 ; Net worth Rs. 15,00,000; Debts (Long term) Rs. 9,00,000 * Current Liabilities Rs. 5,00,000 ; Net profit before tax and interest Rs. 8,00,000. Point out the uses of fund flow analysis. From the following particulars you are required to calculate BEP. (a) Fixed cost Rs. 2,00,000 (b) Selling Price per unit Rs. 40 (c) Variable cost per unit Rs. 1.5. What are the key factors of Break Even Analysis? \ 4 Elaborate the concept of cost. o& x What are the various methods of costing? PART B — (5 x 10 = 50 marks) Answer ALL questions. cus Examine the salient features of Tally Package. Or 2 MBA 14 NRa4 12. The following are the balances extracted from the books of Jeeva as on 31.12.2017. Prepare Trading and P & L account for the year ending 31.12.2017 and a Balance Sheet as on that date : Debit balances Rs. Creditbalances Rs. Drawings 4,000 Capital 20,000 Cash atbank ~~ 1,700Sales 16,000 Cash in hand 6,500 Sundry Creditors 4,500 Wages 1,000 ~ Purchases 2,000 Stock on 1/1/2017 6,000 - Buildings 10,000 Sundry Debtors 4,400 Bills receivable 2,900 - Rent 450 Uibrary, Commission 250 conte Sc. Generalexpenses 800 : Furniture 500 Total 40,500 Total 40,500 , The following adjustments are to be made : \ (a) Stock on 31.12.2017 was Rs. 4,000 \ (b) Interest on capital at 6% to be provided (©) Interest on Drawings.at 5% to be provided (d) . Wages yet to be paid Rs. 100 (e) Rent prepaid Rs. 50. 3 MBA 14 NR13. 14. 15. A company: whose accounting year is the calendar year purchased on 1.1.2013 a machine for Rs. 40,000. It purchased further machinery on 1st October 2013 for Rs. 20,000 and on 1* July 2014 for Rs, 10,000. On 1.7.2015, 1/4 of the machinery installed on 1.1.2013 became obsolete and was sold for’ Rs. 6,800. Show how the machinery account would appear in the books of the company for all the 3 years under Diminishing Balance Methods. Depreciation is to be charged at 10% p.a. . Or Explain various methods of Depreciation. Given the following data : : Re Working Capital Rs. 45,000 Ore’ Current Ratio 2.5 ce sf Liquidity Ratio 1.5 Proprietary Ratio — (fixed assets. to’ proprietary funds) 0.75 Overdraft Rs. 10,000 - Retained Earnings Rs. 30,000 There are no long term loans and fictitious assets. Find out : (a) Current Assets (b) Current Liabilities (c) Fixed Assets Ae MBA 14 NR30 16. 17. 18. -(b) . Break-even Point R.. (d) Quick Assets (e) Quick Liabilities () = Stock (g) Equity. Or Tabulate the differences between funds flow and cash flow analysis. a Vijay . Enterprises Ltd.,” has supplied- you the. following information in respect one of its products: : : Total fixed costs Rs: 18,000 Total Variable costs Rs. 30,000: Total Sales Rs. 60,000 Units sold 20,000 Find out : (a) Contribution per unit ~aananenoer ee eas (c) Margin of Safety (a) Profitand —~ : ‘ (ec) Volume of sales to earn a profit of Rs. 24,000. = Or Summarize the benefits of marginal costing. 5 MBA 14 NR19. Enumerate various elements of Cost. , Or 20. Prepare the cost sheet to show the total cost of production and cost per unit of goods manufactured by a company for the month of December 2018. Also find out the cost of sales. Stock of raw materials 1.12.2018 Rs. 3,000 ~ Raw materials purchased Rs. 28,000 “— Stock of raw materials 31.12.2018 Rs. 4,500 Manufacturing wages Rs. 7,000 Depreciation of plant Rs. 1,500 Loss on sale of a part of plant Rs. 300 Factory rent and rates Rs. 3,000 Office rent Rs. 500 General expenses Rs. 400 Discount on sales Rs. 300 Advertisement expenses to be fully charged: Rs. 600 Income-tax paid Rs. 2,000 The number of units produced during December, 2018 was Rs. 3,000 The stock of finished goods was 200 and 400 units on 1.12.2018 and 31.12.2018 respectively. The fotal cost of units on hand on 1.12.2018 was Rs. 2,800. All these have been sold during the month. 6 MBA 14 NRAB 21. PART C — (1 x 20 = 20 marks) ~ (Compulsory) The following is the M/s. Vendan & Bros, as on 31% March, 2016. Prepare Trading and P.& L A/c for the year ended 81st March, 2016 and a Balance Sheet on that date. Particulars Capital Drawings Buildings Furniture and Fittings Motor van Loan from Hari 12% interest Interest paid on above Sales Purchases Opening stock Establishment expenses Wages Trail Balance of Dr Cr. Rs. Rs. 1,00,000 18,000 15,000 7,500 25,000 15,000 900 1,00,000 75,000 25,000 15,000 2,000 MBA 14 NR a fea. iy da ad de ded Sed aoa (& ne” Particulars : Dr Cr. 2 Rs. Rs. Insurance 1,000 Commission received 4,500 5 Sundry debtors 28,100 Bank balance 20,000 Creditors ° 10,000 bare Interest : 3,000 cel Total 2,32,500 2,32,500 Adjustments : _ (a) The value of stock.on 31% March .2016 was Rs. 32,000 (b) Outstanding wages Rs. 500 (c) Prepaid insurance Rs. 300 (a) Commission received in advance Rs. 1,300 (e) — Allow interest on Capital at 10% (f) Depreciate. Building 2Y%%, Furniture and ; Fittings 10%, Motor Van 10%. : (g) . Charge interest on drawings Rs. 500 (h) Accrued Interest Rs. 500. 8 MBA 14 NRAW MBA 14 NR M.B.A. DEGREE EXAMINATION, NOVEMBER 2018. First Semester Business Administration ACCOUNTING FOR MANAGERS (2018 — 2019 Batch onwards) Time : Three hours Maximum : 100 marks PART A — (6 x 5 = 80 marks) Answer any SIX questions out of Ten questions. 1. Pass Journal Entries for the following : (a) Mahesh who owes Rs. 3.000 pays Rs. 2,850 in full settlement. (b) Received a first and final dividend of 75 paise in the rupee from Ralu who owed us Rs. 3,500 (c) Sold goods to X Rs. 50.000. (d) Salaries paid to office staff Rs. 15,000 (ec) Cash withdrawn for personal use Rs. 25,000. 2. (State any five Accounting Concepts...AS 3. Bring out the difference between Capital and Revenue Expenditure. 4. Define the term Depreciation. Explain the necessity for providing Depreciation. 5. Explain the advantages of Ratio Analysis. 6. Bring out the assumptions of Marginal Costing. ” a 7. Prepare a Schedule of changes in working capital $e, from the following Balance Sheets : ey Te Liabilities 1998 1999 Assets 1998 1999 2: ‘= Rs, Rs. Rs. Rs. ES Share capital 50,000. 50,000 Fixed assets 18,000 28,060 10% debentures ‘10,000 “20,000 Investments : Bills payable 18,000 6,000 Non-trading 10,000 10,000 Outstanding Trading 8,000 9,000 expenses 6,000 9,000 Trade creditors 33,000 40,000 Inventories 12,000 18,000 Trade debtors 40,000 48,000 Accrued interest 4,000 ~ 6,000 * Unexpired — 3,000 insurance Cash at bank 17,000 2,000 Cash in hand 8,000 1,000 1,17,000 1,25,000 ’ 1,17,000 8. Bring out the Uses & Limitations of Break Even Analysis. 2 MBA 14 NR4H 9. State the objectives of Cost Accounting. 10. Bring out the classification of cost. PART B _ (5 x 10 = 50 marks) Answer ALL questions. 11. Following balances were taken from the books of Shri Ram on 31* March 2011 : Capital Drawings Purchases Sales Purchases Returns Opening Stock Bad debts Bad debts Provision(1.4.10) Rates & insurance Rs. Rs. 1,00,000 Rent(Cr.) 2,100 17,600 Railway freight & other expenses on 16,940 sales 80,000 Carriage Inwards 2,310 1,40,370 Office Expenses 1,340 2,820 Printing & Stationery 660 11,460 Postage & Telegrams 820 1,400 Sundry debtors 62,070 Sundry creditors 18,920 3,240 1,300. Cash at Bank 12,400 3 MBA 14. NRRs. Rs. Discount (Cr.) 190 Cash in hand ° 2,210 Bills Receivable 11,240 Office furniture 3,500 Sales Returns 4,240 Salaries & a 9,870 Commission Wages 6,280 Additions to Buildings 7,000 Buildings 25,000 Prepare Trading and P & L A/c and Balance sheet as on 31s March 2011, after ‘keeping in view the following adjustments : (a) (b) © (d) (e) ® (g) -(h) Depreciate old Buildings @ 2.5%; new additions to Buildings @ 2%; Office furniture @ 5%. Write off further bad debts Rs.570. Unexpired Insurance — Rs. 240 Increase Bad debts provision to 6% of Debtors. On 31* March 2011, 570 are outstanding for salary. Rent Receivable Rs. 200. Interest on Capital @ 5%. On 31 March 2011, stock is valued’ at Rs. 14,290. Or 4 MBA 14 NR | “E Mt ' 0.8, fan12. The following Trial Balance is extracted from books of a merchant on 31.12.89. . Particulars Debit (Rs.)' Credit (Rs.) Furniture and Fittings 640 - Motor Vehicles 6,250 - Buildings 7,500 - Capital 12,500 Bad debts 125 ~ ‘ - Provision for bad debts 200 Debtors and Creditors - 3,800 2,500 Stock on January 1** 1989 3,460 = Purchases and Sales 5,475 . 15,450 Bank overdraft 2,850. Sales and Purchases return 200 125 Advertising 450 Interest : : 118" = Commission 375 ‘Cash . . 650 Taxes and insurance 1,250 General expenses 782 Salaries © 3,300 : 34,000 34,000 _< MBA 14.NR abd. The following adjustments are to be made : (a) Stock in hand on 31% December 1989 was Rs. 3,250. (b) Depreciate buildings @ 5%; furniture & fittings @ 10% and motor vehicles @ 20%. (c) Rs. 85 is due for interest on bank overdraft. (a) Salaries Rs. 300 &. Taxes Rs. 120 are outstanding. (e) Insurance amounting to Rs. 100 is prepaid. (, One-third of the commission received is in respect of work to be done next year. (g) Write off a further Rs.. 100 as bad debts & provision for bad debts is to be made at 5% on debtors. (h) Purchases included. purchase of furniture Rs. 200, on January 1* 1989. Prepare a Trading and Profit & Loss A/c for the year ending 31 December 1989 anda Balance sheet as on that date. = o A company whose accounting year is the calendar year, purchased on. 1.1.93 a machine for Rs. 40,000. It purchased further machinery on 1st Oct. 1993 for Rs. 20,000 and on 1*. July for Rs. 10,000. On 1.7.1995 1/4 of the machinery installed on 1.1.1993 became obsolete and was sold for Rs. 6,800. Show how Machinery account would appear in the books of the company for all the 3 years under Diminishing Balance Method. Depreciation is to be provided at 10% pa. Or 6 MBA i4 NR14, aL So Sy 3, at a cost of A Machine purchased on 1* July ant on its Rs. 14,000 and Rs. 1,000 was § 9 installation. The depreciation is written off a 10” on the original cost every year. The boo chine closed on 31: December each year. The 6 Sh w was sold for Rs. 9,500 on 31% March 1986. Sho the Machinery Account for all the years. From the following information calculate : (a) Fixed Assets (b) Debtors (ce) Stock (d) Creditors. - Stock Velocity — 6 Capital Turnover Ratio — 2 Fixed Assets Turnover Ratio — 4 Debtors Velocity — 2 Months Gross Profit —Rs. 60,000 Gross Profit Turnover Ratio — 20% Reserves — Rs. 20,000 Creditors Velocity — 73 days. Closing Stock was Rs. 5,000 in excess of Opening Stock. Or 7 MBA 14 NR16. Brin, 17. 18. sl are gcllowing information is obtained from G & ss e year ending 31.3.2011: Sales — Rs. 2,00,000 ; Variable cost — Rs. 1,50,000; Fixed cost — 30,000. Calculate : Present P/V Ratio; Breakeven point & Margin of Safety. Revised P/V Ratio; Breakeven point & Margin of Safety in the following cases: _ (a) 25% increase in selling price (b) 10% decrease in selling price ot (c) 20% increase in fixed cost ws (d) 10% decrease in fixed cost Sie" (e) 10% increase in variable cost oe Sf . Or : R & Co., produces 2 products X & Y. The technical labour needed to produce the products is on short supply.’ The following data is available for the year ending 31.3.2000. Particulars Product X Product Y Per Unit (Rs.) Per Unit (Rs.) Material 40 60 Labour @ Rs. 2 perhour 20 12 Variable Overheads 10 6 (50% of labour) 8 MBA 14 NRParticulars Product X Product ¥ Per Unit (Rs.) Per Unit Rs.) Fixed cost @ the current 15 30 capacity level Selling Price 100 120 Units Sold 900 2,000 10 Maximum labour hours available per month 3,00} hours. If maximum profit is to be made using the remaining capacity by producing and selling the xs best. product when labour time is limited present. 7 production of either product should be kept as the ry a : i fit. © minimum output), determine the maximum profit. S19, Explain the methods of costing. Or ' 20. From the following Prepare Cost Sheet & Tender = statement for the Plant. Particulars . Rs.' Stock of Finished Goods on 1.1.2009 - - 72,800 Stock of Raw Materials on 1.1.2009 33,280 Purchase of Raw Materials 7,59,200 Productive Wages 5,16,880 Sale of Finished Goods 15,39,200 9 _ MBA14NRParticulars Rs. Stock of Finished Goods on 31.12.2009 78,000 Stock of Raw Materials on 31.12.2009 33,360 Works overhead charges . 1,29,220 Office & General Expenses 70,161 The company is about to send a Tender for a large Plant. The Costing department has estimated that the materials required would cost. Rs. 52,000 and the wages to workmen for making the plant would cost Rs. 31,200. The tender is to be made at a net profit of 20% on the selling price. yor - PART 0 —(1 x 20 = 20 marks), oO GeO" ( etn’ Compulsory. 21, Given below is the Balance sheet and Profit & Loss of R Sugar Mills as on-31.12.15. Liabilities Rs. Assets, Rs. Issued Capital : 40,000 shares of ‘ 40,00,000 Land and Building 30,00,000 Rs. 100 each 18,00,000 Plant & Machinery 16,00,000 Reserves Creditors 26,00,000 Stock 29,60,000 Profit & Loss A/c 6,00,000 Debtors 14,20,000 6% Debentures ~ 6,00,000 Cash at Bank 6,20,000 96,00,000 96,00,000 10 MBA 14 NR ost “Waq MBA 14 M.B.A. DEGREE EXAMINATION, APRIL/MAY 2018. First Semester Business Administration ACCOUNTING FOR MANAGERS ~ (Prior to 2015 — 2016 Batch) Time : Three hours Maximum : 100 marks PART A — (6 x 5 = 80 marks) Answer any SIX questions out of TEN questions. 1. Discuss the different types of vouchers. 2. Differentiate between journal and ledger. 3. | What are capital and revenue expenditures? Give examples. 4. Differentiate between straight line and written down methods of depreciation.Nn From the following details : AEy Current ratio : 2:5 Liquidity ratio 21:5, Working capital Rs.60,000. Find out (a). Current assets (b) Current liabilities (c) . Liquid assets and : (d) .. Stock. Following are the ratios relating to the trading activities of National. Traders for the year ended 31st December 2000. : Debtors Velocity— 3 months . Gross profit ratio— 25% Gross profit for the year — Rs. 4,00,000 Pre > 6 SV ee Bills Receivable — Rs. 25,000 Find out: . & S$ 66 (a) Sales- G (b) . Sundry Debtors. 2 MBA 14al 10. Ld What are the advantages of break even analysis? The sales turnover and profit during two periods were as follows : Period . Sales (Rs.) Profit (Rs.) I 20 lakhs 2 lakhs II 30 lakhs 4 lakhs Calculate : (a) Sales required to earn a profit of Rs.5 lakhs (b) Profit when sales are Rs.10 lakhs Explain the elements of cost in detail. Define ‘Cost Accounting’. What are the advantages of Cost accounting? PART B — (5x 10 = 50 marks) Answer ALL the questions. Discuss the accounting concepts and conventions in detail. O antral jure save 3 MBA 1412. From the following Trial Balance prepare Trading and Profit and Loss account for the year ended 31* Mar 2008 and Balance Sheet as on that date : Trial Balance as on 31% Mar 2008 Dr. Balances Rs. Credit Balances Rs. Cash in hand 3,050 Sales 99,000 Purchases 40,650 Sundry Creditors 6,000 Wages 11,000 Capital 56,000 Opening stock 7,800 Building 30,000 Land 5,000 Machinery 25,000 . Patents 8,000 & Salaries 17,000 ° RX General 8,000 & ie Expenses 600 ss Insurance 8,700 e. © Sundry Debtors 1,200 Bills Receivable 1,61,000 1,61,000 Value of closing stocks is Rs.9,800 13. What are capital and revenue receipts? Illustrate with suitable examples. Or 4 . MBA 14“we 14. 15. A. Machinery was purchased for Rs. 10,000 on 1.1.2005. Erection’ charges incurred were Rs, 2,000. The machinery is expected to last for four years. Show the machinery account and depreciation account for its entire life. Assume 10% depreciation rate. Straight line method of depreciation is followed by the company. From’ the following information, Prepare Cash From Operations and Cash Flow Statement : Particulars 31.3.2012 31.3.2013 Rs, Rs. Assets : Cash Balances 5,000 3,500 Trade Debtors 15,000 . 25,000 Stock 17,500. 12,500 Machinery 40,000 27,500 Land 20,000 - 25,000 Building 17,500 30,000 © 1,15,000 _ 1,23,500 Capital and Liabilities : Capital - 62,500 76,500 Long — Terms Loans 20,000 25,000 Mortgage Loans 12,500 - Trade Creditors 20,000 22,000 1,15,000 _ 1,23,500 Additional Information : (a) During the year a machine costing Rs. 5,000 (accumulated depreciation Rs. 1,500) was sold for Rs. 2,500. (b) “The provision for depreciation ‘against machinery during the year 2012 was Rs. 12,500 and Rs. 20,000 in 2013. (c) Net Profit earned during the year 2013 was Rs. 22,500. Or ' 5 MBA 14ry] 16. Differentiate between fund flow and cash flow statement. 17. From the following data calculate: (a) Break-even point expressed in amount of sales in rupees. (b) , Number of units that must be sold to earn a profit of Rs. 60,000 per year. Sales price Rs. 20 per unit - Variable manufacturing cost Rs. 11 per unit cost Variable selling cost Rs. 3 per unit Fixed factory overhead Rs. 5,40,000 per year Fixed selling cost Rs. 2,52,000 per year Or 18. Find out the-Sales Mix which has the highest contribution and profit form the following data : 5 Particulars Product Per unit (Rs.) Direct Materials A 10 B 9 Direct wages A 3 B 2 Sales Price A 20 B 15 6 i MBA 14Fixed Expenses Rs.800. ses are allocated to products ag 4 wages. Va le expe 100 % of Dir Sales Mixtures : ‘ (a) 1,000 units of product A and 2,000 units of B r (b) 1,500 units of product A and 1,500 units of B Is (c) 2,000 units of product A and 1,000 units of B 19. Discuss the various methods of costing in detail. Or. 20. The following particulars are extracted from the books of P Ltd. relating to Cotton Z for the year ending 31/03/2010. Rs. Purchase of raw materials 1,382,000 Direct Wages 1,10,000 Rent, rates, insurance and works on cost 44,000 Carriage inward 1,584 Stock on 01.04.2009 Raw Materials . 22,000 Finished product (1600 Kgs.) 17,600 Stock on 31.03.2010 . Raw Materials _. 24,464 Finished products (3,200 Kgs.) . 35,280 Work — in — progress on 01.04.2009 5,280 Work— in — progress on 31.03.2010. 17,600 Factory supervision 8,800 Sales — Finished products ~ 8,80,000 7 MBA 14Advertising, discount allowed and selling cost at Rs, 2.50 per Kg. sold. 25000 kgs. were sold during the period 01.04.2009 to 31.03.2010. Ascertain : (a) Prime Cost , ds (b) . Factory Cost yo J Dx (c) Cost of Sales wry! Z (d) Profit. ce ow PART C — (1 x 20 = 20 marks) Question 21 : COMPULSORY (Case / Problem depending upon the subject) 21. From the following financial statements for the year 2007 and 2008, prepare a fund flow statement : Capital and 2007 2008 Assets 2007 2008 liabilities Rs. Rs. Rs. ~ Rs. Sundry 8,26,000. 12,54,000 Cash 1,06,000 62,000 creditors Bills 4,52,000 + 6,28,000 Investments 1,74,000 - payable . Loan from 2,00,000 4,70,000 Sundry bank debtors 6,92,000 10,56,000 Reserves 13,84,000 17,28,000 Stock-in- and 5 trade 8,64,000 13,66,000 Surplus . Share 12,00,000 12,00,000 Net fixed capital assets 22,26,000 . 27,96,000 40,62,000 52,80,000 40,62,000 52,80,000 Depreciation of Rs. 3,78,000 was written off for 2008 on fixed assets. MBA 14OF ' MBA14R M.B.A. DEGREE EXAMINATION, APRIL/MAY 2018, First Semester Business Administration ACCOUNTING FOR MANAGERS (2015-16 batch onwards) Time : Three hours Maximum : 100 marks PART A — (6 x 5 = 30 marks) Answer any SIX questions. 1. Differentiate between financial accounting and managément accounting. 2. Explain any accounting concepts. 3. What are the reasons for providing depreciation? 4. Differentiate between fund flow statement and cash flow statement. 5. Discuss the’ uses of cost volume profit analysis. 6. Write short notes on cost unit.and cost centre.Sales Rs. 2,00,000; Variable Cost Rs. 1,00,000; Fixed Cost Rs. 60,000 Find out : (a) P/V Ratio and BEP when there is 10% increase in variable cost. (b) P/V Ratio and BEP when there is 10% decrease in variable cost. “From the following, find out : Current assets Current liabilities Liquid assets Stock Information: Current ratio 2.5 Liquidity ratio 1.5 Working capital Rs. 60,000 Give journal entries for the following : Paid into bank Paid salary by cheque Computer purchased Received dividend Introduced capital Goods sold to Ram Rs. Rs. 6,000 Rs. 20,000 Rs. Rs. Rs 1000 . 50,000 . 15,000 14,000 © MBA 14 R10. Prepare a Trial Balance from the following : Rs. Capital 2,00,000 _ Drawings 12,000 Sales 2,50,000 Purchase Return 4,000 Sundry Creditors 23,000 Bills Payable . 11,000 Purchases - 1,45,000 Sales Returns 6,000 Wages 26,000 Carriage inwards 4,000 Salaries 48,000 Office expenses 9,000 Bills Receivables : 12,000 Opening stock 12,000 Advertisements 18,000 Debtors 34,000 Plant : 80,000 Cash in hand . 4,000 Cash at bank 82,000 Machinery 70,000 be eft 3 MBA 14R oe corewe™”ll. 12. PARTB — (5 x 10 = 50 marks) Answer ALL questions. Explain different types of vouchers used in Tally. Or From the following particulars of Mr. X prepare a Trading -and Profit and. Loss Account and a Balance Sheet as on 31-3-2012 : Stock (opening) Purchases Salaries Wages - Carriage inwards Carriage outwards Purchase Returns Sales Returns Sales Capital Debtors: Creditors Bills Receivables Rs. 20,000 90,000 24,000 9,000 3,000 4,000 6,000 - 8,000 1,60,000. 60,000 20,000 43,000 5,000 MBA 14R4l 13. 14. Rs, Bills Payables . 7,000 " Trade expenses 10,000 Insurance 8,000 Machinery 80,000 Adjustments: Closing Stock on 31-3-2012 Rs. 18,000 Outstanding Salary Rs. 6000 Depreciate Machinery at 5%. Bring out the differences between capital and revenue expenditure with examples. Or On‘ 1* April 2002, X Ltd purchased a machinery for Rs. 1,00,000 and on 1* July. 2002, it acquired an additional machinery of Rs. 50,000. On 31st March 2004, machinery costing Rs. 50,000, which was purchased ‘originally, was sold for Rs, 38,000. On 1s April 2004, a new machinery was purchased for Rs. 75,000. Depreciation was provided at 10% under Written Down Value Method. Show the machinery account for three years. MBA 14 RAdi 16. Period I Period II Sales Rs. 4,00,000 Rs. 4,50,000 Profit Rs. 20,000 ‘Rs. 35,000 Calculate: P/V Ratio, BEP , Fixed Cost Profit when sales are Rs. 5,00,000 Sales required to earn a profit of Rs. 60,000 Or 16. How are costs classified ? Explain them in brief. ‘17. The following are the balance sheets of Srimaan Ltd for the years 1997 and 1998 : Liabilities 1997 1998 Assets 1997-1998 Rs. Rs. Rs. Rs. Equity Shares 2,20,000 2,50,000 Land and Building 1,50,000 1,80,000 Reserve 20,000° 26,000 Debtors 28,000 28,000 Creditors 26,000 32,000 -Cash 42,000 32,000 BP 9,000 8,000 BR 37,000 48,000. Overdraft 12,000 14,000 Stock “39,000 42,000 ~ 2,87,000 8,30,000 2,87,000 0 Depreciation provided on Land and Building Rs. 10,000. Prepare Cash Flow Statement. Or 6 MBA 14R 1.18. (The following are the balance sheets of MFC Ltd for the years 2007 and 2008 : Liabilities 2007 2008 Assets Rs. Rs Equity Shares 2,00,000 2,50,000 Fixed assets capital Retained earnings 1,60,000 © 3,05,000 Stock Debentures 60,000 — Debtors Creditors’ 1,17,800 1,00,200 Bills : receivable Cash » 5,37,800 65,52,000 Additional information : 1997 1998 Rs. Rs. 3,50,000 4,75,000 1,00,000 95,000 43,000 50,000 4,000 5,000 40,800 30,200 5,37,800 65,52,000 (a) Net income for the year Rs. 1,45,000 (b) Prepare Fund Flow Statement. 19.° Following is the P/L Account of a company : Rs. ‘To Opening stock 99,500 By sales To purchases 5,40,250 By-closing stock To wages . 14,250 To Manufacturing Exp.’ 5,000 To Gross profit 3,40,000 9,99,000 "Rs. 8,50,000 1,49,000 9,99,000 MBA 14RTo Selling exp. 30,000 By Gross profit To Administrative Exp. 1,65,000 By Non-operating income Rs. To Loss on sale of asset 4,000 To Net profit 1,50,000 20. Find out 3 (a). Net Profit Ratio (b) Operating Ratio (c) Operating Profit Ratio. Or Rs. 3,40,000 9,000 3,49,000 From the following ,prepare a Cost Sheet : Direct wages Purchase of raw-materials. Indirect wages Factory manager salary Electric power Fuel Rs. 4,00,000 5, 16,000 42,000 24,000 54,000 . 32,000 MBA 14RPrinting and Stationery Direct expenses Advertisement Stock of Materials (Opening) Stock of Materials (Closing) Work-in-Progress (Opening) Work-in-Progress (Closing) Office Manager Salary Income Tax Sales Telephone Charges Salary to administrative staff Bad Debts Insurance on Machines Depreciation on Machines Rs. 1,000 50,000 34,000 12,000 18,000 24,000 57,000 30,000 20,000 17,50,000 12,000 60,000 5,000 _ 4,000 16,000 MBA 14RPART C — (1 x 20 = 20 marks) FI Compulsory — Answer the following Question. Direct wages per hour is Rs. 5. 21. The following are the particulars from the records of a company .: Product A Product B Sales — per unit Rs. 100 Rs. 120 Consumption of materials 2keg 3kg Material cost Rs. 10 Rs. 15 Direct wages cost Rs. 15 Rs. 10 Direct Expenses Rs. 5 Rs. 6 _ Machine hours used ‘ 3 hours Qhours Overhead expenses — Fixed. Rs. 5 Rs. 10 —Variable_ Rs. 15 Rs. 20 Comment on the profitability of each product: (a) Total sales potential in units is limited. (b) Production capacity in terms of machine hours is the limiting factor. (c) Material is in shod supply. (d) Sales potential in value is limited. 10 ' MBA14R —MBA 14 M.B.A. DEGREE EXAMINATION, NOVEMBER 2017. First Semester Business Administration ACCOUNTING FOR MANAGERS (Prior to 2015-16 batch) ‘Time: Three hours - : Maximum : 100 marks _ PART A — (6x 5 = 30 marks) . Answer any SIX out of Ten questions. 1. Discuss the tally package applicable to reports generation. . . 2. ° Distinguish between. cost Accounting. ‘and Management Accounting 3. Write: skont notes. on Deferred _Revenue Expenditure. Tet 4, Explain the advantages of straight line method of depreciation. 5. What are the uses of fund flow statement? 2 State the significance of Turnover Ratios. n What are the advantages of marginal costing?10. 11. What are the assumptions of Break — Even Analysis? Briefly explain the various elements of costing. What are the objectives of Cost Accounting? PART B — (5 x 10 = 50 marks) Answer ALL the questions. , Prepare Trading and Profit and Loss ‘Ale and balance sheet as on 31st March 2016. Rs. : _ Rs. Machinery 27,000. Capital 60,000 Debtors , 21,600 Bills Payable 2,800 Drawings 2,700 Creditors 1,400 Purchases 58,500 Sales ~ 73,500 Wages 15,000 - Repairs 600 Rent and Taxes 1,350 oe Carriage in 450 ae Cash at Bank 4,500 oe Stock on 1.4.2015 6,000 & @ 1,37,700 1,37,700 (a) Stock on 31st March 2016 Rs. 22,400 (b) Write off Bad debts Rs. 600 (c) Depreciate on Machinery 10%: Or 2 MBA 14 eetBS 12, Journalise the following in the books of . Murugan & Co. and Post them into proper Ledger accounts. 2001 + March 5 Sold on credit to Sitaran & Co 325 8 Purchased on credit from Han ~ 1,200 10 Purchased for cash from Mohan & Co. 300 15 Sold to Gopal Bros: on Credit 125 — 18 Returned to Han 200 20 Purchased froni Kesavi & Co. 500 25 Returned from Gopal Bros . 25° 13. -How can you distinguish between Capital and. Revenue Expenditure? Explain with ‘suitable examples. 3. Or 14, Can 1s April 2005 a firm purchases machinery worth Rs. 1,50,000. On 1%t October 2007 it buys additional machinery worth Rs. 30,000 and spends Rs.3,000 on its erection. The accounts are closed each year on 3ls March. Assuming annual - depreciation to be 10 percent, show the machinery account for 5 years under : (a) The straight line method and (b) Written down value method MBA 1415. From the following particulars pertaining to assets and liabilities of a company, calculate Or 16. Statement of financial given below : (a) | Current Ratio . (b) Liquid Radio ; (c) Proprietary Ratio ) (d) Debt — Equity Ratio (e) Capital gearing ratio. Liabilities Rs. Assets Rs. ’ Equity share capital Share capital 5,00,000 Plant and machinery 11,00,000 8% preference share Stock 2,40,000 capital. 2,00,000 Debtors / “ 2,00,000 ¢ 9% debentures 4,00,000 . Cash and bank 55,000 Reserves 3,00,000 Prepaid expenses 5,000 Creditors 1,50,000 Bank overdraft 50,000. 16,00,000 000 position of Mr. Arun is Liabilities 01.04.2000 31.03.2001 Assets 1,4.2000 * 31. 03.2000 Account Cash 40,000 °30,000 Payable 29,000 25,000 Debtors 20,000 17,000 Capital 7,39,000 6,15,000 Stock 8,000 13,000 Building 1,00,000 80;000 "Other fixed ‘assets 6,00,000 _5,00,000 68,000° _6,40,000 ~7,68,000 6,40,000 oe : ——— U MBA 14Additional Information : { (a) There were no drawings , (b) . There were no purchases or sales of either building or other: fixed assets. Prepare a statement of cash flow. ‘ 17. “The Technique of marginal cost can be valuable ( jaid to management” — Discuss. Neo , Or aa "18. The sales turnover.and ‘profit -during two periods > were as follows : . Sales. Profit. 4 . Rs. : Rs. ® con PeriodI 20,00,000 2,00,000 =i , Period II 30,00,000- 4,00,000 > Calculate é : - (a) B.V. Ratio: - (b) Fixed Cost wn (c) Break Even point an (d) Profit when sales are Rs. 10,00,000 : eed (e) Margin of Safety of I Period ; a B%, MBA 14 uy a19, 20. 21. Briefly explain the various methods and techniques of costing. Or Prepare a cost sheet from the following details : Rs. Raw Materials consumed 80,000 Wages 20,000 Works expenses are gharged at 10% on wages office over head is charged at 25% on works cost: and selling overhead at 10% on works cost. » 4 ‘PART C— (1x 20 = 20-marks) (Compulsory) The budgeted results of PQR Ltd include the following : . Product Sales Value P.V, ratio oe (Rs.) et yo" P 90,000 40% oe Ae Q 1,44,000 40% ~ ¢@ * R 2,16,000 30% Fixed cost for the period Rs. 1,80,000. Prepare ‘a statement showing the amount of Loss expected - and recommend a change in sales of any of the. products which will eliminate the expected loss, 6- MBA 14 JAM ae * MBA 14R M.B.A. DEGREE EXAMINATION, MAY 2017. First Semester _ Business Administration ACCOUNTING FOR MANAGERS (From 2016 —17 Batches) Time : Three hours Maximum : 100 marks PART A — (6 x 5 = 30 marks) Answer any SIX questions out of Ten questions. All questions carry equal marks: 1. ‘Analyse any four differences between financial ‘accounting and cost accounting. 2. Enumerate the types of vouchers. 3. Give the meaning of capital receipts. State its features. 4, Analyse the causes of providing depreciation 5. Explain how financial statements are analysed. 6. Discuss the uses of cash flow analysis.10. 11. fr Explain the limitations of marginal costing. Discuss the importance of key factor. Analyse the classification of cost. Discuss the objectives of costing, PART B — (5 x 10 = 50 marks) Answer ALL questions. All questions carry equal marks. When a Trail Balance failed to agree, = 3,790 was transferred to the credit of suspense a/c. The following errors were discovered. Give journal entries and prepare suspense account. (a) (b) (©) @) (©) Sales day book was undercast by = 4,000. ‘ e Purchase of machinery for 6,000 was passed © through the purchase book. Goods sold’ to Velu for % 450 was posted to his account as € 540, Purchase Returns Book - was overcast by = 200. The total of sales book from one page was carried forward to the next page as & 1,222 instead of = 1,129. Or 2 “ MBA14RA] n pe 12. From the following Trial Balance of Mr. X, prepare the Trading and Profit and Loss account for the year ended December 31, 2005 and a Balance Sheet date as at that date. Trial Balance Debit x Capital Sales Purchases . 20,000 Salaries 3,000 Rent 2,000 Insurance 500 Drawings 6,000 yor ‘Machinery 30,000 RCN ee Bank 4,500 ow Cash 18,000 Stock 7,000 Debtors 5,000 Creditors Baddebts __1,000 97,000 Adjustment: (a) () Credit z 60,000 35,000 2,000 97,000 Stock on hand on December 31, 2005 = 5,000. Salaries owing € 500. 3 MBA 14R13. 14. 15. (c) _ Rent paid in advance & 500, (da) Insurance paid in advance € 200. (e) Depreciation Machinery by 10 percent. () During December Mr. X took € 500 in goods. Discuss the . ‘differences between capital expenditures and revenue expenditures. Or- A company whose accounting year is the calendar year purchased on 1 April 2006 machinery costing & 30,000. It purchased further machinery on 1 October 2006 costing % 20,000 and on 1 duly 2007 costing = 10,000. On 1s January 2008 one third of the machinery in stalled on 1st April 2006 became obsolete and was sold for % 3,000. Show how machinery account would appear in the books of the company, it being given that machinery was depreciated under fixed instalment method at 10% p.a. From the following information Prepare Fund Flow Statement for the year 31-12-2015: (a) - Increase in working capital = 4,000. (b) Net Profit before writing off goodwill = 10,750. : 4 MBA 14Ry py (c) Depreciation for fixed assets € 1,750. (d) Dividend paid & 3,500. . } (e). Goodwill € 5,000 written out of profits. ‘ © © 5,000 share capital was issued for cash. 4 (g) Machinery was purchased for = 10,000. , Or 16. Explain any four techniques of financial analysis. 17. Kattu Bava multiproduct company furnishes, you’ the following data relating to the year 2015. ! First Second , half of the year half of the year sy z z 4 ws Sales 45,000 50,000 OA” Total cost 40,000 43,000 a co o Assuming that there is no change in prices and! variable costs and that the fixed expenses: are incurred equally in the two half year periods. Calculate for the year 2015. (a) The PN ratio (b) Fixed expenses (c) Break even sales (d) Percentage of margin of safety. : Or 5 MBA 14R18. 19. 20. py A company has annual fixed cost of € 14,00,000. in 2001, sales amounted to = 60,00,000 as compared with % 45,00,000 in 2000 and profit in 2001 was & 4,20,000 higher than in 2000. (a) At what ‘level of sales does the company break even? (b) Determine profit or loss on a present sales volume of =.80,00,000. (ce). If there is reduction in selling price in 2002 by 10% and the company desires to earn the same profit as in 2001, what would be the - required sales volume? Discuss the methods of costing. Or A Ltd. manufacture fans, which are sold at = 800 per fan. The cost of sale is composed of 40% of direct material, 30% wages and 30% overhead: An increase int material price by 25% and in wage rate by 10% is expected in the forthcoming year;.as a result of which the profit at current selling price may dwindle by-39% of present gross profit. With the above information, you are required to (a). prepare a statement showing current and future cost and profit at present selling price, and (b) determine the future selling price if the present rate of gross profit.is to be maintained. aa MBA 14R A ce un / ‘21, PART C — (1 x 20 = 20 marks) Compulsory Two businesses, A Ltd and B Ltd, sell the same type of product in the same type of market. Their budgeted profit and loss accounts for the coming year are as follows : A Ltd B Ltd z. = Sales 3,00,000 3,00,000 Less : Variable cost -_2,40,000 / 2,00,000 Contribution 60,000 1,00,000 Less : Fixed cost 30,000 - 70,000 Budgeted Net Profit 30,000 30,000 You. are required to (a) | Calculate the BEP of each business. (b) Calculate the sales volume at which each of business will earn = 5,000 profit. (©) Calculate at which sales volume. both the , firms will earn equal profits, (d) State which business is likely to earn greater - profits in conditions of. (i) ~ heavy demand for the product Gi) low demand for the product. 7 MBA 14RMBA 14 M.B.A. DEGREE EXAMINATION, DECEMBER 2015. First Semester , Business Administration . ACCOUNTING FOR MANAGERS Time : Three hours Maximum : 100 marks PART A — 6 x 5 = 30 marks) Answer any SIX questions out of Ten questions. 12 Explain briefly conventions of Accounting. 2; Journalize the following transactions in the books of Swamy. & Sons : Date ‘Particulars Oct.1° A cheque for Rs.400: was received . from Anand in full and final settlement of the debt of Rs. 500 owed by him Oct.4 Paid. cash to Madhan Rs.1,750 in full settlement of the debt of Rs.2,000 owed to him Oct.9 Ram & Co. owed Rs.10,000 to Swamy & Oct.14 Sons, The Company was declared insolvent and a sum of Rs.6,000 was received from the official liquidator by cheque in final settlement= Oct. 14 The proprietor of Swamy & Sons purchased furniture for personal use from JFK & Qo: for Rs.3,000 and issued a cheque from the bank account of Swamy & Sons Oct. 15 A debt of Rs.5,000 owed by Siva was earlier written off as bad. Now, Siva pays Rs. 2,000 by cheque to Swamy & Sons towards the dues Define Accounting cycle. Explain depreciation. What are factors influence depreciation policies? , Calculate depreciation’: based. on straight line method as well as WDV method for the following machine whose value is Rs.25,00,000, expected economic life is 5 years and residual value at the end of 5 years is Rs.2,50,000. Explain profitability ratios with suitable examples. i Define Fund. How it differs from cash? A company has earned a profit of Rs.30,000 during 2013. If the marginal cost and selling price of the product sold by the company ate Rs.8 and Rs.10 per unit respectively, what is the margin of safety? 2 MBA 14 oa |10. 11. 12, - 18. 14, What the elements. of Cost? And what is cost centre? ‘ Explain process costing. PART B — (5 x 10 = 50 marks) Answer the following questions. What is Trial Balance? Explain. advantage of preparing trial balance. Or Explain objectives of Financial Accounting?. Which are all the groups interested in accounting information. Distinguish between capital and revenue expenditure with suitable examples. Explain differed revenue expenditure. Or Hasini Enterprises purchased 3 similar printing machines at a cost of Rs.1,00,000 each on April 01, 2011, which is also the first.day of the accounting year and the following developments took place subsequently : (a). On Oct. 01, 2012, one machine was affected by voltage fluctuation and the same was sold for Rs.92,000 (b) On Jan. 01, 2014, another machine was damaged in a fire accident and the same was sold for Rs.60,000 ‘115. 16. - 17. Draw up necessary accounts of the firm for 3 years from April 01, 2011 to March 31, 2014. The firm charges depreciation at 10% SLM and follows Asset charging method. : Draw Accounting Standard - 3 format of Cash Flow statement. 3 Or What are various types of financial analysis? Explain limitations of ratio analysis. Assuming that the cost structure and selling prices remain the same during 2012 and 2013, calculate (a) PV Ratio (b) Break even sales - (©) Profit when sales are Rs. 50,000 and (d) Sales required to earn a profit of Rs. 10,000 from the following : Amount in Rupees Year Sales Profit 2012 20,000 — 1,000° 2013 22,000 1,600 Or ae MBA 1418. Explain marginal costing importance in pricing decisions. Also explain assumptions behind marginal costing. 19. Explain methods of costing. Also contract costing. Or + 20. Explain cost elements and stages of Cost Sheet. PART C — (1 x 20 = 20 marks) Compulsory 21. The following is the trial balance of Somnath Agencies'as on March 31, 2014: Particulars Amount in Particulars . Amount in Rs. Rs. Opening stock 95,280 Capital ~ 1,46,900 Purchases 2,62,590 Loan with interest @ 35,000 : 6% pa. Wages 45,970 Sundry Creditors 86,270 Plant & 34,800 Sales 3,62,030 a * , “machinery Furniture 13,970 Provision for doubtful 8,500 debts x Sundry debtors 67,500 Commission received 10,640 Bills Receivable 15,000 ‘purchase returns 13,360 Sales returns 8,780 Salaries 16,000 5 MBA 14Particulars Bad debts Repairs and renewals Rent and taxes Travelling expenses Insurance Drawings Cash on hand Cash at bank Interest and discount Total Amount in Rs. 8,620 9,370 11,120 6,880 6400 16,050 8,030 24,970: 11,370 6,62,700- Particulars Amount in Rs, Total 6,62,700 You are required to prepare a Trading and Profit and Loss account for the year ended March 31, 2014 and a Balance Sheet as on that date taking into consideration the following adjustments : (a) _ Closing stock is valued Rs.1,27,000 (b) Depreciate Plant and Machinery by 5% and furniture by 10% per annum (c) Outstanding interest on loan is Rs.350 (d) Sales include Rs.1,030 worth of goods taken by the proprietor for his private use (e) The manager is entitled for a commission of 10% on the net profits after charging such commission. MBA 14