Accounting for Management Question paper of MBA Semester 1, Download Question Paper 5

Roll No……

Total No. of Questions: 07

MBA/MBA (IB) (Sem.-1^st)

ACCOUNTING FOR MANAGEMENT

Subject Code: MB-103 (2009-2011)

Paper ID: [C0166]

Time: 3 Hrs.                                                                           Max. Marks: 60

Instruction to Candidates:

1.      SECTION-A is COMPULSORY consisting of TEN questions carrying  TWO marks each.

2.      SECTION-B contains SIX questions carrying TEN marks each and students has to attempt any FOUR questions.

SECTION-A

1.      Write short note on:

(a)    Accounting cycle

(b)   Accounting information system

(c)    Debt equity ratio

(d)   Acid test ratio

(e)    Working capital

(f)    Target costing

(g)   Classification of cost

(h)   Business entity concept

(i)     Principle of conservatism

(j)     Absorption costing and marginal costing.

SECTION-B

2.      Discuss the concept of human resource accounting. Explain its importance in present context.

3.      “Management accounting aims at providing financial results of the business to the management for taking decisions”. Explain by bringing out advantages of management accounting,

4.      “Analysis without interpretation is meaningless and interpretation without analysis is impossible”. Discuss.

5.      (a) The format of Trading, Profit and loss account is given as under, fill in the blanks and complete these accounts with the help of given ratios.

(5)

TRADING, PROFIT & LOSS ACCOUNT

FOR THE YEAR ENDING MARCH 31, 2010

Particulars	Amount(Rs.)	Particulars	Amount (Rs.)
To Cost of goods sold	2,70,000	By sales	------
To Gross Profit c/d	------
	------		------
To Operating expenses	------	By Gross Profit b/d	------
To Non-Operating expenses	10,000
To Net Profit
	------		------

            Accounting ratios:

(i)                 Gross profit to cost of goods sold: 33.33%

(ii)               Net Profit to sales:   12%

(b) Explain the following terms and show their importance:

(i) Price Earning ratio

(ii) Debt Service coverage ratio

(5)

6. The expenses for budgeted production of 10000 units in a factory are furnished below:

	Per units(Rs.)
Materials	70
Labour	25
Variable overhead	20
Fixed overhead (Rs. 1,00,000)	10
Variable expenses(Direct)	5
Selling expenses(10% fixed)	13
Distribution expenses(20% fixed)	7
Administration expenses(Rs. 50,000)	5
Total Cost per unit (to make and sell)	155

           

            Prepare a budget for production of

(a)    8000 units

(b)   6000 units

(c)    Indicate cost per unit at both the levels.

(Assume that administration expenses are fixed for all levels of productions)

7.      From the following trial balance of Mrs. A, prepare trading and profit and loss account and a balance sheet for the year ending 31^st March 2010.

Particulars	Debit Rs.	Credit Rs.
A’s capital		90,000
A’s drawings	6,480
Land and building	25,000
Plant and machinery	14,270
Furniture and fixtures	1,250
Carriage inwards	4,370
Wages (manufacturing)	21,470
Salaries	4,670
Bad debt reserve (as on 1st April 2009)		2,470
Sales		91,230
Sales returns	1,760
Bank charges	40
Coal, gas and water	720
Rates and taxes	440
Sales tax	400
Discount account		190
Purchases		8,460
Purchase returns	42,160
Bills receivable	1,270
Trade expenses	1,990
Sundry debtors	37,800
Sundry creditors		12,100
Stock (1st April 2009)	26,420
Apprentice premium (paid by an apprentice in factory)		500
Fire insurance	490
Cash at bank	13,000
Cash in hand	850
Bad debts	100
Total	2,04,950	2,04,950

Adjustments to be made for the current period are:

(a)    Charge depreciation on land and building at 2.5% on plant and machinery at 10% and on furniture and fixtures at 10%.

(b)   Bad debts Rs. 800. Make a reserve of 5% on the sundry debtors for bad debts.

(c)    Carry forward the following unexpired amounts:

(Rs.)

(i)                 Fire insurances            125

(ii)               Rates and taxes           240     

(iii)             Apprentice premium   400

(d)   Charge 5% interest on capital and on drawings.

(e)    Create a provision for discount on creditors at 5%.

(f)    The value of stock as on 31^st March 2010 was Rs. 29,390.