Tuesday, November 17, 2015

2014 Question Paper,102 : ACCOUNTING FOR BUSINESS DECISIONS,University Of Pune Question Paper,M.M.M. (Semester – I)

University Of Pune Question Paper
M.M.M. (Semester – I) Examination, 2014
102 : ACCOUNTING FOR BUSINESS DECISIONS
(2013 Pattern)
Time : 2.30 hrs Max. Marks : 50
 Instructions : 1) All questions are compulsory.
2) Each question has an internal option.
3) Each question carries 10 marks.
4) Figures to the right indicate marks for that question/sub-question.
5) Your answers should be specific and to the point.
6) Support your answers with suitable live examples.
7) Draw neat diagrams and illustrations supportive to your answer.
8) Use of calculators is permitted.
1. A) What are the accounting concepts and conventions ? Name them and explain accounting
conventions in detail. 10
OR
B) Write note on :
i) Functions of Financial Accounting. 5
ii) Users of Financial Accounting information. 5
2. A) Define Management Accounting. Explain in detail the functions of management
accounting. 10
OR
B) What do you understand by ‘Management Accounting’ ? Distinguish between
Management Accounting and Financial Accounting. 10
3. A) Pune based Battery Company furnishes you following information. 10
 Year 2014
 First Half Second Half
Profit 21,600 64,800
Sales 8,10,000 10,26,000
From the above information you are required to find out following assuming that FC remains
fix for both period.
1) P/V Ratio
2) FC
3) Amount of profit/loss when sales are Rs. 6,48,000.
4) Amount of sales required to earn profit of Rs. 1, 08,000.
OR
Seat
No.
P.T.O.
[4673] – 102 -2-
B) ABN Ltd. Provides following information. 10
Budgeted production of 1,50,000 units
Variable Cost Rs. 14 p/u
FC Rs. 2 p/u
The company fixes its SP to faith of profit of 15% on cost
You have to calculate
1) P/V Ratio
2) BEP (RS. & Units)
3) If SP is reduced by 5%, how it will affect P/V Ratio and BEP (Rs. & units)
4) If profit increase of 10% more than budget is desired, what should be the sale at reduced
price ?
4. A) A newly started company wishes to prepare cash budget from April. Prepare a cash
budget for the last three months from the following estimated revenue and expenses : 10
Month Total Purchases Wages Production Selling & Distribution
Sales Overheads Overheads
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
January 20,000 20,000 4,000 3,200 800
February 22,000 14,000 4,400 3,300 900
March 28,000 14,000 4,600 3,400 900
April 36,000 22,000 4,600 3,500 1,000
May 30,000 20,000 4,000 3,200 900
June 40,000 25,000 5,000 3,600 1,200
Cash balance on 1st April was Rs. 27,000. A new machinery is to be installed at
Rs. 20,000 on credit, to be repaid by two equal installments in March and April. Sales
commission @ 5% on total sales is to be paid within a month following actual sales
Rs. 10,000 being the amount of 2nd call may be received in March. Share premium
amounting to Rs. 2,000 is also obtainable with the 2nd call.
Period of credit allowed by suppliers – 2 months
Period of credit allowed by customers – 1 month
Delay in payment of wages ½ month and overheads 1 month.
Assume cash sales to 50% of total sales.
OR
B) The expenses budgeted for production at 100% capacity of Tara Enterprises, Satara are
given below; 10
Particulars Amount (Rs.)
Direct Material 6,00,000
Variable Works Overheads 2,00,000
Wages 2,00,000
Fixed Production overheads 80,000
-3- [4673] – 102
Production Expense 40,000
Administrative Expense (Rigid) 40,000
Selling Overheads (10% Fixed) 1,20,000
Distribution Overheads (80% Variable) 60,000
Prepare a Flexible budget for the production at 60% and 80% capacity.
5. A) From the following particulars, calculate Material Cost Variance, Material Usage Variance
and Material Price Variance. 10
Product Std.Qty. Std. Price Actual Qty. Actual Price
A 1050 2.00 1100 2.25
B 1500 3.25 1400 3.50
C 2100 3.50 2000 3.75
OR
B) Calculate sales variance for ABC Pen Manufacture Company from the below
 information. 10
Product
Standard Actual
Qty. Sale
Price
Total
(Rs.) Qty. Sale
Price
Total
(Rs.)
A 500 5 2,500 500 5.40 2,700
B 400 6 2,400 600 5.50 3,300
C 300 7 2,100 400 7.50 3,000
1200 7,000 1500 9,000
__________________
B
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