Assignment

1. Which are the features of Management Account ?

A) Forecasting B) Improve Efficiencies

C) Assist Management d) All of the above

2. The term management Accounting was first coins in
A) 1950 B) 1945 c) 1955 D) 1960
3. The use of Management Accounting is :

(a) Optional
(b) Legally obligatory
(c) Compulsory
(d) Compulsory to some and optional to others

4 Management Accounting can be stated on extension of :

(a) Cost Accounting (b) Financial Accounting
(c) Responsibility Accounting (d) All of the above
5) What is margin of safety, if Sales is 10,000 units and B.E.P. is 5,000 units ?
(a) 25,000 units (b) 5,000 units

(c) Rs. 5,000 (d) Rs. 25,000

6) Profit on Sales is measured as :
(a) Sales × P/V Ratio – Fixed Cost (b) Sales × P/V Ratio + Fixed Cost
(c) Sales + P/V Ratio + Fixed Cost (d) None of the above
7) Break Even Point is :
(a) Profit (b) Loss
(c) No Profit No Loss (d) None of the above
8) The ideal level of Current Ratio is :

(a) 4 : 2 (b) 2 : 1
(c) Both (a) and (b) (d) None
9) Given Sales is Rs. 60,000 and Gross Profit is Rs. 30,000 the Gross Profit Ratio is :
(a) 24% (b) 25%
(c) 50% (d) 44%
10) Budgetary Control System defines the objective and policies of the _ Department.

(a) Marketing (b) Finance

(c) Production (d) All of the above

Section B
1) Explain meaning of Management Accounting.
2) Write objectives of Management Accounting.
3) From the following data calculate BEP in units :
Fixed Exp. 2,00,000, Variable Exp. Rs. 5 per unit, Selling Price Rs. 10 per unit.
4) From the following particulars calculate the BEP in units :
Fixed Exp. Rs. 60,000, Variable Cost Rs. 12 per unit, Selling price Rs. 18 per unit.
5) Calculate Net Profit Ratio if Sales are Rs. 3,60,000, Gross Profit Rs. 1,44,000, Net Profit
Rs. 48,000.

Section C
1) Write Nature and Scope of Management Accounting.
2) From the following information of Vinod Co. Ltd. you will calculate :
(a) P/V/ Ratio
(b) BEP

(c) Net profit from the sales of Rs. 1,50,000

(d) Required Sales for Net Profit Rs. 40,000
Sales – 1,25,000, Variable Cost – 45,000, Fixed Cost – 50,000

3) the profit and loss account of vijay motors ltd as on 30 mar 2022
 Trading and profit and loss account

Particulars Amount Particulars Amount

To opening stock 99500 By Sales 850000
To Purchase 445250 By Closing stock 149000
To Direct exp 14250
To Gross profit 340000
999000 999000
To Selling exp 30000 By Gross profit 340000
To Administrative exp 150000 By non oprating income
To Financial exp 15000 Interest 3000
To no operating exp loss by 4000 Profit on sale of share 6000
fire 150000
‘To Net Profit
349000 349000
You have to calculate :

(i) Gross Profit Ratio

(ii) Net Profit Ratio
(iii) Operating Ratio
(iv) Stock Turn Over Ratio

4) You are given the Balance Sheet of Manoj Co. Ltd. for the year ending December, 2022
Balance Sheet
as on 31 Dec 2022

Liabilities Rs Assest Rs
Share capital Land and Building 50000
5000 equity shares 50000 Plant and machinery 20000
General Reserve 40000 Stock 15000
Profit and loss a/c 15000 Debtors 25000
creditors 20000 Bank Balance 15000

125000 125000
Calculate the following ratios :
(i) Current Ratio

(ii) Quick Ratio

(iii) Acid Test Ratio

5) Amol Company wishes to arrange overdraft facilities with its bankers during the period
from
March to May when it will be manufacturing most for stock. Prepare Cash Budget for the
above period from the following data indicating the extent of bank facilities the company will
require at the end of each month :
Months Sales Purchase Wages
Jan 36000 24960 2400
Feb 38400 28800 2800
March 21600 48600 2200
April 34800 49200 2000
May 25200 53600 3000

Additional Information :
(i) 50% credit sales are realized in the month following sales and the remaining 50% in
the second month following.
(ii) Creditors are paid in the month following month of purchase.
(iii) Cash as on 1st March, 2022 is Rs. 25,000.