S.No.

1244 19UCM16/19UAF14/|
19UCB15/19UCC13/
19UFA15

(For the candidates admitted from 2019-2020 onwards)

B.Com. DEGREE EXAMINATION, MAY 2023.

Sixth Semester
MANAGEMENT ACCOUNTING

(Common for B.Com. (CA), (A & F) (B & I) FMA)

Time: Three hours Maximum:75 marks

PART A–(15 ×
1=15 marks)
Answer ALL the questions.

1. Management accounting provides invaluable

services to management in performing

(a) All management functions

(b) Interpret the financial data

(c) Controlling functions

(d) None of the above

 (F) GDG r5Iaqo na)

2. The basic function of management

accounting is
(a) "Toserve government
(b) To serve the management
functions effectively in performing its
(c) Toserve public
(d) None of the above
GioumGOT 6)LD GAT
ÈSÐlueSl6aT

() BlouTGGSDG ABT GlsucuTG56nGT

pbUL

(F) Giopspluoa rgIOyLlcb6n)

3. Management accounting
helps management in
(a) Preparation of finalaccounts
(b) Decision making
(c) Filing tax returns
(d) Raising finance

2 S.No, l244
 (B) q.Glau65Ö

(F) gi05d
4. Return on investment depends on two ratios
(a) Net profit ratio and capital turnover ratio
(b) Gross profit ratio and net profit ratio
(c) Capital employed ratio and assets turnover
ratio
(d) Earnings per share and net profit ratio

LoDgID
(9) pgT

(F)
by
5. Liguid Ratio is equal to liquid assets divided

(a) Contingent Liabilities

(b) Total Liabilities
(c) Current Liabilities
(d) Non-Current Liabilities

3 S.No. 1244
 () sGsumer QugÜy8áT
() Qorg QumguLsdT

(r) BLÜy mg

6. Debt to equity
durgsT
ratio establishes
between the relationship
(a) Long-term debt
(external
current assets equities) and
(internal equities)
(b) Long-term debt
(external equities)
equity (internal equities), and
(external equities) and long-term debt
(internal equities) and cUrrent. assets
(c) Long-term
debt (external equities)
equity (internal equities)
(d) None of the
options are correct

() baôoT L 5TAU 5LGT (QlouatfliLp usGST) bpg

UG
(Qouafl
(2GT IŠI(E56ir), LoDgID

()BsisT L
5IT)

1244
S.No.
4
7. In fund flow statement. Increase in debtors 18

(a) Cash from financing activities

(b) Cash from operating activities
(c) Cash from investment activities
(d) None of the above

() ušs BLQJl4s6DGsoflá) 55) UGNTD

(FF)

8. In the cash flow statement, sale of fixed assets is

(a) Cash from financing activities

(b) Cash from operating activities
(c) Cash from investment activities.
(d) None of the above
T
JOOTÜLpss lS605l, slnaITGT GemŠH)Š5Gfl

()
5 S.No. 1244
9.
Comparative statement analysis sheet.
(a) Vertical analysis
(b) Horizontal analysis
(c) Either vertical or horizontal
analysis
(d) Neither vertical nor
horizontal analysis

() Qsi GSHSI
UGÜUTÚay
() lD LIDLL LGÜUTÜa
()
(PF)
l6LDLL
10.
Budgetary control system helps
to eliminate the management
(a) Undercapitalization
(b) Overcapitalization
(c) Both (a) and (b)
(d) Subjective matter

(A) S60DbS (psTDTŠSÁ)

(%) sls (pgTLDITESSSÜ
(Q) 6öoT
( Lb GsirBSE) ()
oÖgD ()
(F) aßlna ologwo

6 S.No. 1244
11. A budget is tool which helps the management in
planning and control of
(a) All business activities
(b) Production activities
(c) Purchase activities
(d) Sales activities

n
() oTGGI GJGootles 5LLGJl4sGD5S (GT5LD
() 2UB BLQliNSEeiT
(
(F)
12. Budgetary control facilitates easy introduction of
the
(a) Marginal costing (b) Ratio analysis
(c) Standard costing (d) Subjective matter

() lsl5 uGÜUmLay
(9) eaVUTGTI
BlnDUNSIT Gsay () aßlena oflagw
13. At break even point
(a) Total expenses = Total revenue
(b) Total expenses > Total revenue
(c) Total expenses < Total revenue
(d) Any of the above
7 S.No. 1244
 QGauNaT LJeTGflulc
= ouUHOur
() QuoTBs Qrvayoat GDrbs

(F)
14. What is Absorption Costing?
(a) Method, where the variable costs are
considered as the product cost and the fixed
costs, are considered ag the costs of the
period
(b) The method considers both fixed costs and
variable costs as product costs
(c) Difference between selling price and variable
COst
(d) Difference between selling price and fixed
cost

GT60T
B(65ÜuGo,

5(55p5

(PF)

8 S.No. 1244
l5. Marginal cost is computed as
(a) Prime cost + All Variable overheads
(b) Direct material + Direct
Expenses + All variable labor + Direct
overheads
(c) Total costs - All fixed
overheads
(d) Al of the above
GT60T

Glsvau

(B)GpJI4 aum(HT. +
QlsvaysT +

(F)

PART (2 x 5 = 10 marks)
B-
Answer any TWO questions.
16. Write the limitations ofmanagement
accounting.
17. Liabilities Rs.
Assets Rs.
Equity Share Land and
Capital 5,00,000 Building 1,00,000
Preference Machinery 4,00,000
share
capital 2,00,000 Furniture 50,000
9 S.No. 1244
General 1,00,000 Inventory
3,00,000
Reserve
Secured Loan 3,00,000 Sundry Debtors
3,00,000
Sundry 1,00,000 Cash/Bank
Creditors
Balance 50,000
12,00,000 12,00,000
Calculate Following Ratios from the above balance
sheet :
(a) Current Ratio
() Liquid Ratio
-(c) Proprietary Ratio.

(9) sOGunsnsu efllsD

Qunpüy5dr G

5,00,000 sLi4.LD 1,00,000

4,00,000
2,00,000 LDJŠEMLDTSTES GT 50,000
1,00,000 EJŠG 3,00,000

10 S.No. 1244
 QumIÜyseT
UnGISTÙUTET 3,00,000 ueGaum 3,00,000
5L6T. 5L6G15Tg5T
5L6T 1,00,000 uGTO/6uri

50,000

12,00,000 12,00,000

Discuss the managerial uses of fund flow

statement.

19. Prepare a flexible budget for overheads on the

basis of the following data. Ascertain the overhead
rates at 60% and 70% capacity.
:

Variable overheads At 60% capacity (Rs.)

Material 6,000

Labour 18,000
Semi-variable
:
Overheads
Electricity : 30,000

40% Fixed
60% variable

11 S.No. 1244
 : At 60% capacity (Rs.)
Variable overheads
Repairs :
80% fixed 3,000

20% Variable 3,000

-Fixed overheads:
Depreciation 16,500

Insurance 4,500

Salaries 15.000

Total overheads 93,000

Estimated direct
1,86,000
labour hours
5JAJ6oflor
Goá ßlene
sunflssaqb. 60% LoDDD 70% pflc

LDTDŠlq.J 60% Apafláo (5)

Giool6DBGT :
6,000
18.000

GodlenwsT:
30,000
40% BloDaITAIGI
60% Lom

12 S.No. 1244
 PART C-(5 x 10 = 50 marks)

Answer ALL questions.

21: (a Distinguish between Management

accounting and financial accounting.

Or
(b) Explain the advantages of management
accounting.
GLooriT GO) LD
B6TGO LDS606T

22/ (a) The balance sheet of Shield auto Ltd as on

31:12.2002 was as follows
Particular Rs. Particular Rs.
Equity share capital 40,000 Plant and
Capital Reserve 8,000 Machinery 24,000
8% loan on 32,000 Land and
Creditors 16,000 Buildings 40,000
Bank overdraft 4,000 Furnitures 16,000
Taxation 8,000 Stock 12,000
Profit and Loss Alc 12,000 Debtors 12,000
Investments
(Short) 4,000
Cash in hand 12,000
1,20,000 1,20,000
14 S.No. 1244
 Compute:
1) Current ratio
(Gi) Quick ratio
(ii) Debt equity ratio
(iv) Proprietary ratio
31.12.2002
Slull4,coT

G
40,00000 LoÓgD

8,000bgršssdr 24,000
LDTOTBSiU 8% 32,000ob oDgIb
5L6T
16,0005LlqLri56iT 40,000
4.000LDgŠSTDTGaTE5 GÌT 16,000

auflaig4 8,000U(S 12,000

12,0005L6TITaflir 12,000

(sgu srO) 4,000

12,000
1,20,000
1,20,000

15
S.No. 1244
 ()
(i)
(iii) sLciT IrHIG olsb
(iv) ofluy flo flgb.
Or
(b) Explain about. solvency and profitability
Ratio.
60TLI

23.
Ae From the following balance sheet, Prepare
cash flow statement
Liabilities June 30, June 30, Assets June 30, June 30,
1999 (Rs.) 2000 (Rs.) 1999 (Rs.) 2000 (Rs.)

Share Land 5,000 5,000

capital 8,000 8,500 Plant 2,400 3,400

Retained Debtors 1,650 1,950

Earnings 1,450 2,450 Stock 900 700

Creditors 900 500Cash 400 900

Mortgage

loan 500
3|8|
Total 10,350 11,950 10,350 11,950

16 S.No. 1244
 QunpÜLyscT 8°6T 30 gootT.30 dsnsgŠiST g°cbr 30 g6oT 30
1999 (5:) 2000 (.) 1999 (6-) 2000 ()
5,000 5,000
8,000 8,500 nD 2,400 3,400
5L61Teflscr 1,650 1,950
G
1,450 2,450 urai
900 700
5L6T 900 500 UOTLD
400 900
LomGOTŠ

5L6ÖT
500
10,350 11,950 10,350 11,950

Or
Prepare fund flow statement from. the
following particulars

Balance sheet as on 31, November

IYear IIYear
(Rs.) (Rs.)
Cash 40,000 44,400
Accounts
Receivable 10,000 20,700
Inventories 15,000 15,000
Land 4,000 4,000
Buildings 20,000. 16,000
Equipment's 15,000 17,000
S.No. 1244
17
 IYear IIYear
(Rs.) (Rs)
Accumulated (5,000) (2,800)
Depreciation
Patent 1,000 900
1,00,000 1,15,200
Current 30,000 32,000
Liabilities
Bonds Payable 22,000 22,000
Bonds Payable (2,000) (1,800)
Discount
Capital Stock 35.000 43.500
Retained earnings .15,000 19,500
1,00,000 1,15,200'

) Income for the period Rs.10,000

(ii). A
building which cost Rs.4,000 and had
a.book value of Rs.1000 is sold for
Rs.1,400
(ii) The depreciation charged for the period
was Rs.800
(iv) There was Rs.5,000 issue of capital
stock
(v) Cash dividend of Rs.2,000 and stock
dividend Rs.3,500 were declared.
(vi) Tax paid Rs.1,000.

18 S.No. 1244
 IIau(GLD
(e5.)
40,000 44,400

10,000 20,700
sJŠ(GSGT 15,000 15,000
4,000 4,000
20,000 16,000
l5,000 17,000
slgiLÜULL (5,000) (2,800)
GTÜlDLDSGT 1,000 900
1,00,000 --1,15,200
30,000 32,000

22,000 22,000

(2,000) (1,800)

35,000 43,500
15,000 19,500
1,00,000 1,15,200

) 5TWBÉbsmeT
QUGLDTETLD (G.10,000

len LoDMD 5.1,000 4Š55

(ii) (5.4,000
s(S
LDÜY. GsreioTL 5L4Lb 5.1,400
oflbsÜLGpg

19
S.No. 1244
Tt is recognized. that the estimated sales by
department represent' an unsatisfactory.
Il
target. It is agreed to increase both
estimates by 20%. Prepare sales budget for
the year 2000.

uáGaug

31.12.1999
-
gIop I-3,00,000;
J GOD
1I-5,62,500; 5160D Ill-1,80,000 LoÖgLo
Ggr-gnp I-4,00,000; 51p I[-6,00,000;
III-20,000. N6otg gopsatlgb
oljuGN60T l6naD 5.3 LDDgD 5.1.20. 5LLTW

loIn60T 1,75,000
LDBLÜULGaTag, Gogb
Lpvp, lflonG0T

III 'Ggr apIGMGTED LI

50,000

21 S.No, 1244
 oT HOTLO
Sl6n LoULÜULL

LoÊlüSGs60aTLb 20%
2000

25. (a) Margin of safety Rs. 10,000 which represents

40% of sales P.V. Ratio 50%, Calculate
1) Sales
(ii) Break even sales
(iüi) Fixed cost
(iv) Profit.
LDTggliT 5.10,000
loun6Tulc 40% (LD. P.V. ollgb 50%,

i)
(ü)
(ii)
(iv) TUD.
Or
(b) "Marginal Costing is a
valuable. aid for
ManagerialDecisions"-Discuss.
"BlitaTS lgaysãG Glaflbyslna Qsvay

22 S.No. 1244