|
Time: Three
hours Maximum:
100 marks
SECTION A –(5 x 6 = 30 marks)
Answer any FIVE of the following
1. Explain the
accounting principles governing the preparation of Balance Sheet.
2. What is receipts and expenditure account ?Does it differ in any way
from income account ? If so mention points of distinction.
3. Enumerate the methods of calculating depreciation.
4. “Costing is an aid to management”. Enumerate the main
points in support of this statement.
5. “The effect of a price reduction is always to reduce the P/V
ratio an to raise the BEP”. Explain.
6. Briefly describe the all financial resources concept of funds flow.
7. What procedure would you adopt to study the liquidity of a business
firm?
8. Who are all the parties interested in knowing accounting
information?
SECTION B – (5 x 10 = 50 marks)
Answer any FIVE of the following
9. From the following particulars you are required to prepare a
statement showing
(a) The cost of material consumed
(b) Prime Cost
(c) Work Cost
(d) Total Cost and
(e) Cost Of sales and profit
|
Rs
|
| Stock of finished goods on
31.12.03 |
73,000 |
| Stock of Raw –Materials on 31.12.03 |
35,000 |
| Purchase of raw- materials |
7,60,000
|
| Productive wages |
5,20,000
|
| Stock of finished goods on 31.12.04 |
82,500
|
| Stock of raw materials on 31.12.04 |
37,500
|
| Sale of finished of goods |
15,45,800
|
| Works overhead charges |
1,30,200
|
| Offices and general charges |
69,700
|
10. A company
budgets a production of 5,00,000 units at a variable costs of Rs.20
each .The fixed costs are Rs.20,00,000.The Selling price is fixed to
yield 25% on cost. You are required to calculate :
(a) P/V ratio
(b) Break even point
If the selling price is reduced by 20 % find
(i) the
effect of the price reduction on the BEP and P/V ratio
(ii) the
number of units required to be sold at the reduced selling price to
obtain an increase of 20% over the budgeted profit
11. From the following information ,prepare a summarized balance sheet
as on 31st March
|
Rs
|
| Working capital |
1,
20,000 |
| Reserves and surplus |
80,000 |
| Bank overdraft |
20,000 |
Asset (fixed
) to proprietary ratio .75
Current ratio 2.5
Liquid ratio 1.5
12. A manufacturing company purchased on 1st January 2001 ,a second
hand plant for Rs. 30,000 and immediately spent Rs 20,000 on
overhauling it .On 1st July 2001, additional machinery costing Rs.
25,000 was purchased .On 1st July 2003, the plant purchased on 1st
January 2001 became obsolete and was sold for Rs.10,000.On that date a
new machinery was purchased at a cost of Rs 60,000
Depreciation was provided for annually
on 31st December, at the rate of 10 % per annum on the original cost of
asset .In 2005 ,how ever the company changed this method of providing
depreciation and adopted the method of writing off 15% on diminishing
value.
Show the
machinery accountfor the years 2001 to 2005 (both inclusive).
13. How Cost Accounting is different in techniques and procedures from
financial accounting and management accounting.
14. How is
contribution in marginal costing important? Explain briefly its role in
profit maximisation and fixation of selling price decisions.
15. Discuss the importance of ratio analysis for inter-firm and
intra-firm comparisons including circumstances responsible for its
limitations .If any.
16. Explain the accounting standards which are applicable to a company.
SECTION
C - (1X20=20 marks)
(compulsory)
17. On 31st
March 2004, the following trial balance of R.Rama was taken out
.Prepare final accounts for the year after making the following
adjustments :
(a) Depreciation :5 % of plant and machinery and 10 % of fixtures and
fittings
(b) Reserve for bad debts 2 ½ % on sundry debtors.
(c) Insurance unexpired on 31st March 2004 Rs. 70
(d) Outstanding wages Rs 800 and salaries Rs 350.
|
Trial Balance
|
| Dr
Balances |
Rs |
| Plant
and Machinery |
55,000 |
| Fixtures
and Fittings |
1,720 |
| Fuel
and Power |
542
|
| Office
Salaries |
3,745 |
| Lighting
(factory) |
392 |
| Traveling
expenses |
925 |
| Carriage
on sales |
960
|
| Cash
at Bank |
2,245 |
| Cash
in Hand |
68
|
| Sundry
debtors |
47,800 |
| Purchases
|
66,710 |
| Wages
|
9,915 |
| Rent
and Rates |
1,915 |
| Offices
expenses |
2,778 |
| Carriage
on Purchases |
897 |
| Discount
|
422 |
| Drawings
account |
6,820 |
| Stock
on 1.4.03 |
21,725 |
| Manufacturing
expenses |
2,680 |
| Sales
returns |
7,422 |
| Insurance
|
570 |
| Closing
Stock |
16,580 |
| Cr.
Balances |
Rs. |
| Rent
outstanding |
150 |
| R.
Rama’s Capital |
93,230 |
| Sales
|
1, 26,177 |
| Sundry
Creditors |
22,680 |
| Purchases
returns |
3,172 |
| Bills
payable |
6,422 |
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