his question paper

contains 8 printea pagC.

Your RolI Noz.?0.18.54300

Sr. No. of D
Question Paper: 3036

Unique Paper Code 2922101102

Name ot the Paper Accounting for Managers

Name ot the Course B.A. (Hons.) Business

Economics

Semester

Duration: 3 Hours Maximum Marks : 90

Instructions for Candidates

1. Write your Roll No. on the top immediately on receipt
of this question paper.

2
2. This paper contains 6 questions. Attempt ANY FIVE

questions.

3 All questions carry equal marks

4. Use of simple calculator is permitted.

State whether each of the following statements is

True' or 'False'. Give reasons for the same.

P.T.O.
3036 2

(i) The convention of conservatism takes into

account all prospective profits but leaves al

prospective losses.

(i) In accounting all business transactions have dual

aspect.

(iii) Accounting can be useful only for recording

business transactions.

iv) IFRS is a roadblock to operations of multinational

companies,

(v) Trial balance is not a conclusive proof as to the

absolute accuracy of books of accounts.

(vi) Standard costing aids management in planning

and control.
(6x3)

From the following Trial Balance of Star Ltd. as on

31/3/2022, prepare trading and profit and loss account

for the year
ending 31/3/2022 and balance sheet as

on 31/3/2022.
3036

Debit Balance Rs Credit Balance Rs

Drawings 6,000 Bank Ovcrdraft 25,000
Wages 15,500
Interest on Investment 5,800
Stock as on 1/4/2021
12,800 Bills Payable 4,600
Loan to X Interest on Loan to X 320
4,000

E
Rent 5,000 Capital 1,00,000
General Expenses 1,480 Reserve for bad and doubtful
Investments debts 250
60,000
Purchases 1,60,000 Sales 2,30,000
Freight and Carriagc 2,100 Sundry Creditors 12,590
Goodwill 40,000
Bills Roceivable 6,200
Rates and Taxes 1,800
Sales return 2,100
Insurance 900
Cash 3,700
Debtors 16500
Postage and Telegram 3,800
Land and Building 25,000
Plant and Machinery 10,000
Packing Charges 400
Bad Debts 1,280

3,78,560 L 3,78,560

Adjustments

() Closing stock as on 31/3/2022 Rs. 16,000.

(11) Goods worth Rs. 800 were sent to customer on

approval basis. The cost price of the goods was
Rs. 700 and no approval was received till date.

(ii) 20% of the Goodwill is to be written off.

(iv) Further Bad debts were estimated at Rs. 350.

Increase the reserve for bad debts to the extent

of Rs. 1500.

P.T.O.
3036
Depreciate Latnd ana bulding by 3% and Plant
(v)
and Machineryby 10%.

800 were distributed as free

(vi) Goods worth Rs.
samples. (18)

3 ( From the following information of Phoenix Ltd.,

prepare Cash Flow Statement as per AS3

(Revised):

Liabilities 2022 (in Rs)| 2021 (in Rs)

Equity share capital 80000 55000
10% preference share 20000 25000
capital
General reserve 7600 4000
Profit & loss account 2400 2000
15% debentures 14000 12000
Creditors 22000
24000
Proposed dividend 8000 10000
Provision for taxation 8400 6000
162400 138000
Assets
Fixed assets 80000
| Less: accumulated 82000
30000 22000
depreciation
Stock
50000 60000
70000 60000
Debtors 34,400
Cash 15000
7000 2400
| PrepaidExpenses 1000 600
162400 138000
3036

Additional information

() Provision for tax made Rs. 9400.

(accumulated
(11) Fixcd assets costing Rs. 20000
them
depreciation till date of sale on

Rs. 6000) were sold for Rs. 10000.

(iü) Interim dividend paid during the year

Rs. 9000. Proposed dividend of last year

was declared and paid during the year.

Ignore corporate dividend tax.

iv) New debentures were issued on 3 1st march,

2022.

(6) A company had a liquid ratio of 1.5 and current

ratio of 2 and inventory turnover ratio 6 times. It
had total current assets of Rs. 800,000 in the year
2020. Find out the annual sale if goods are sold at
25% profit on cost. (12+6)

. (a) XYZ Ltd. is producing three products X, Y and

Z. The data for the three products is given
below

P.T.O.
3036 6

Particulars 5,000 Units2,000 Units

Maximum Capacity
Rs.10
3,000 Units
Direct Material @Rs.10 per Kg Rs.40 Rs.30
Other Variable Costs Rs.36 Rs.25 Rs.10
Selling Price Rs.100 Rs.50 Rs.60
Fixed Cost Rs.20,000 Rs.15,000 Rs.10,000

Calculate the best product-mix in both of the

following independent cases

i) Total availability of raw material is limited

to 18,000 Kg. 2 o , 18 , yTo

(ii) Under a trade agreement the firm cannot

produce more than 7,500 units of the three
products taken together, Stos, %

)A company produces a single product and sells it

at Rs. 200 each. The variable
cost of the
is Rs. 120 per unit and
product
the fixed cost for the
year
is Rs. 96,000.
Calculate:

i) P/V Ratio

(ii) Sales at break-even point.

11) Sales units required to earn a target net
profit of Rs. 1,20,000. (12+6)
3036 1

(a) For production of 10,000 Electrical Automatic

Irons, the following are budgeted expenses :

Direct Materials

Direct Labour

Variable Overheads

Fixed Overheads

Variable Expenses (Direct)

Selling Expenses (10% Fixed)

Administration Expenses (Rs. 50,000 rigid for all
levels of production)

Distribution Expenses (20% Fixed)

Total Cost of Sales per unit

Prepare a budget for the production of 6,000, 7,000

and 8.000 Irons.

difference between estimated cost

and
(b) Explain the
standard cost.
(12+6)

.
Explain any three from the following:

Z e r o based budgeting
P.T.O.
3036 8

bShutdown Costs

(Accrual Concept
(d) Users of accounting information
(6x3)