University Of Pune Question Paper,204 : ACCOUNTING FOR MANAGEMENT,2013 Question Paper,M.C.A. (Commerce Faculty) (Semester – II),

University Of Pune Question Paper
M.C.A. (Commerce Faculty) (Semester – II) Examination, 2013
204 : ACCOUNTING FOR MANAGEMENT
Time : 3 Hours Max. Marks : 80
Instructions : 1) All questions are compulsory.
2) All questions carry equal marks.
3) Use of calculator is allowed.
1. Define the term mangement accounting. State the advantages and limitations of
management accounting.
OR
1. What is financial statements ? Explain the various objectives of analysis of
financial statements.
2. From the information given below, calculate the following ratios :
a) Current Ratio
b) Quick Ratio
c) Stock Turnover Ratio
d) Debt-Equity Ratio
e) Return on Investment.
Information : Current Assets Rs. 5,00,000; Opening Stock Rs. 50,000; Closing
Stock Rs. 1,50,000; Cost of Goods Sold Rs. 12,00,000; Gross Profit Rs. 2,00,000;
Indirect Expenses Rs. 20,000; Equity Share Capital Rs. 7,00,000; 10% Preference
Share Capital Rs. 3,00,000; 12% Debentures Rs. 2,00,000; Current Liabilities
Rs. 2,00,000; General Reserve Rs. 1,00,000.
OR
2. What do you mean by ratio analysis ? State the advantages and limitations of
ratio analysis.
Seat
No.
P.T.O.
[4370] – 264 -2-
3. The following are the summarised of the Balance Sheet of SMS Limited for two
years.
 31/03/2011 31-03-2012
 Rs. Rs.
Share Capital 2,00,000 2,60,000
Profit and Loss Account 39,690 41,220
Reserves 50,000 50,000
Sundry Creditors 39,500 41,135
Bills Payable 33,780 11,525
Bank Overdraft 59,510 –
Provision for Taxation 40,000 50,000
Total Rs. 4,62,480 4,53,880
Goodwill – 20,000
Land and Building 1,13,450 1,16,200
Plant and Machinery 1,48,000 1,44,250
Stocks 1,11,040 97,370
Sundry Debtors 85,175 72,625
Bills Receivable 2,315 735
Cash 2,500 2,700
Total Rs. 4,62,480 4,53,880
You are required to prepare Statement of Changes on Working Capital, treating
provision for taxation as a current liability. Also prepare a Funds Flow Statement.
OR
3. What is fund flow statement ? Explain the difference between fund flow analysis
and cash flow analysis.
4. You are given the following data :
Year Sales Profit
2011 Rs. 1,20,000 Rs. 8,000
2012 Rs. 1,40,000 Rs. 13,000
Find out :
a) P/V Ratio
b) B.E. Point
c) Profit when sales are Rs. 1,80,000
d) Sales required to earn a profit of Rs. 12,000
e) Margin of safety in year 2012.
OR
4. The following data relate to Noteshop Limited :
The financial manager has made the following sales forecasts for the first five
months of the coming year, commencing from 1st January, 2013 :
Month Sales (Rs.)
January 40,000
February 45,000
March 55,000
April 60,000
May 50,000
Other data :
a) Debtors’ and Creditors’ balance at the beginning of the year are Rs. 30,000
and Rs. 14,000 respectively. The balance of other relevant assets and liabilities
are :
Cash balance Rs. 7,500
Stock Rs. 51,000
Accrued Sales Commission Rs. 3,500
-3- [4370] – 264
b) 40% sales are on cash basis. Credit sales are collected in the month following
the sale.
c) Cost of sales in 60% on sales.
d) The only other variable cost is a 5% commission to sales agents. The sales
commission is paid in a month after it is earned.
e) Stock is kept equal to sales requirements for the next two month budgeted
sales.
f) Trade creditors are paid in the following month after purchases.
g) Fixed costs are Rs. 5,000 per month including Rs. 2,000 depreciation.
You are required to prepare a cash budget for the months of January, February
and March, 2013 respectively.
5. Write short notes (any two) :
a) Techniques of management accounting.
b) Trend analysis.
c) Application of marginal costing in decision-making.
d) Scope of budgetary control.
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