Q9/12A/04 - 15 Reg. No

St. Joseph’s College of Arts & Science (Autonomous) St. Joseph’s College Road, Cuddalore – 607001 PCM911 – ACCOUNTING FOR DECISION MAKING

Time : 3 hrs

Max Marks :75 SECTION – A (10X2=20) Answer ALL Questions

1. Define: Management Accounting. 2. State any two objectives of Management accounting. 3. State the difference between Current ratio and Liquid ratio. 4. Write a short note on: Interest coverage ratio. 5. Explain the meaning of ‘Funds’. 6. What is the need for a ‘Cash flow statement’? 7. What is a budget manual? 8. What do you understand by ‘Break -even point’? 9.

Indicate the industries in which standard costing system is most suitable.

10. What do you understand by standard hour? SECTION – B (5X5=25) Answer any FIVE Questions 11. Enumerate any five functions of ‘Management Accounting’. 12. Distinguish between ‘Fund flow statement’ and ‘Cash flow statement’. 13. A limited company made a credit sales of 2,00,000 during the year 2014. If the collection period is 36 days and the year is assumed to be 360 days, calculate: i) Debtors turnover ii) Average debtors iii)Debtors at close when debtors at the end are more than at the beginning by 3,000. 14. Calculate funds from operations from the following: Particulars Particulars To Salaries 10,000 By Gross profit To Rent 3,000 By Profit on sale of Machine To Discount allowed 1,000 By Dividend received To Provision for Depreciation 14,000 By Refund of tax To Dis. on issue of Debenture 2,000 To Preliminary expenses 3,000 To General reserve 20,000 To Loss on sale of Investments 5,000 To Provision for tax 10,000 To Selling expenses 20,000 To Net profit 1,20,000 2,10,000

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2,00,000 5,000 2,000 3,000

2,10,000

Q9/12A/04 - 15 15. Prepare production budget for the first six months: Month of Sale Product A(units) Product B(units) Jan 28 10 Feb 28 12 Mar 24 16 Apr 20 20 May 16 24 June 16 24 July 18 20 It is assumed that there is no work-in-progress and sales equal to half of the following months will be kept in stock for current month. 16. From the following information, calculate i) Breakeven point ii) Number of units that must be sold to earn a profit of 60,000 per year. iii)Number of units that must be sold to earn a net income of 10% on sales. Sales price- 20 per unit; Variable cost- 14 per unit; Fixed cost- 79,200. 17. From the following particulars ascertain the actual consumption of materials, actual price and material usage variance: Material cost variance 700 (Adverse); Standard Quantity 1,000 kgs. Material price variance 300 (Favourable). Standard price 5 per kg. SECTION – B (3X10=30) Answer any THREE Questions 18. Enumerate the differences between ‘Management Accounting’ and ‘Cost Accounting’. 19. Prepare a Balance sheet from the following data: Particulars Working capital 75,000 Reserves and Surplus 1,00,000 Bank Overdraft 60,000 Current ratio 1.75 Liquid ratio 1.15 Fixed assets to Proprietors fund 0.75 Long term Liabilities Nil 20. Following are the summary of Cash transactions extracted from the books of Exe Ltd. Particulars Particulars To Balance b/d 35,000 By Payments to suppliers 20,47,000 To Receipts from 27,83,000 By Payment for Fixed 2,30,000 customers assets To Share capital 3,00,000 By Payments for 1,15,000 Overheads To fixed Assets (Sale) 1,28,000 By Salaries 69,000 By Income tax 2,43,000 By Dividends paid 80,000 By Bank loan 2,50,000 By Balance c/d 2,12,000 32,46,000 32,46,000 Prepare Cash flow Statement of the Company for the period ended 31st December.

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Q9/12A/04 - 15 21. Prepare Cash Budget for the first four months the following estimated revenues and expenses: Month Sales Purchases Wages Admn.OH Distn OH April 60,000 60,000 12,000 2,000 1,200 May 66,000 42,000 14,000 2,200 1,400 June 72,000 40,000 16,000 2,200 1,400 July 78,000 36,000 18,000 2,400 1,600 August 84,000 34,000 20,000 2,600 1,600 Additional information: i. Cash balance on 1st April was 35,000. ii. 50% of Sales are on credit basis which are realised in the subsequent month. iii. Suppliers are paid in the month following the month of supply. iv. Delay in payment of wages and overheads are 30 days. v. Dividend on investment `10,000 may be received in April and July. vi. Company plans to purchase a machine for `60,000 for which it has to pay the consideration in three equal instalments in the month of April, June and July. 22. From the data given below, calculate the material price variance, the material usage variance and material mixture variance. Consumption per 100 units of products: Material Standard Actual A 40 units@ 50 per 50 units@ 50 per unit unit B 60 units@ 40 per 60 units @ 45 per unit unit

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