CARNE TB MS — 405 VI Semester B.Com. Examination, May/June 2014 (Fresh) (Semester Scheme) (2013-14 Only) COMMERCE Paper — 6.3 : Management Accounting Time : 3 Hours Max. Marks : 100 Instruction : Answers should be completely either in English or in Kannada. SECTION-A Answer any eight sub questions. Each sub question carriestwomarks. _ (8x2=16) 1. a) Give the meaning of Management Accounting. b) Whatis Cash Flow Statement ? c) Give the meaning of Fund Flow Statement. d) Whats a Comparative Statement ? e) State any two differences between Financial Accounting and Management Accounting. f) What is Trend Analysis ? g) Give the meaning of working capital. h) Mention two objectives of Management Reporting. i) State any four components of Current Assets. }) Gross profit of a firm is 25%, Gross profit is 1,00,000. Calculate cost of goods sold. PTO.Ms 405 Ps SECTION-B Answerany three of the following. Each question carries eight marks. (3x8=24) 2. The profits of a company are declining year by year. As a Management Accountant of the company, draft a brief report to the management explaining the reasons for declining profits. 3. Prepare a Comparative Income Statement from the following. Particulars As on 31-3-2012 As on 31-3-2013 Rs. Rs. Sales 21,50,000 25,00,000 Cost of Goods sold 13,00,000 14,50,000 Operating Expenses : Administrative Expenses 2,10,000 1,80,000 Selling Expenses 1,90,000 2,50,000 Non-operating Expenses Interest 1,40,000 4,20,000 Income Tax 4,70,000 2,30,000 4, The following information is given relating to Venu Company for the year ending 31-3-2013. Stock turnover ratio 6 times Gross profit ratio = 20%onsales Sales = Rs.3,00,000 Closing stock is Rs. 15,000 more than the opening stock.5. A 2 Ms - 405 Opening creditors Rs. 30,000 Closing creditors Rs. 45,000 Networking capital Rs. 75,000 Findout : a) Average stock b) Average payment period c) Purchases 4) Working capital turnover ratio. The summarised Balance Sheets of Suma Textile Mills Lid. as on 31-12-2010 and 31-12-2011 are as follows. Liabilities 2010 2011 Assets 2010 2011 Rs. Rs. Rs. Rs. Share capital 6,00,000 8,00,000 Landand General Reserve 2,00,000 3,00,000 Buildings 8,00,000 —9,00,000 Profit and Loss A/c 50,000 _ 60,000 Plant 3,00,000 —2,00,000 LongtermBankLoan 2,00,000 50,000 Stock 1,70,000 —3,00,000 Sundry creditors 2,00,000 1,80,000 CashatBank 30,000 20,000 Tax Reserve 50,000 30,000 13,00,000 14,20,000 13,00,000 14,20,000 Prepare Fund Flow Statement and a statement showing changes in working capital.MS - 405 4 ‘AMMO 6. From the following you are required to find out cash generated from operations under indirect method. Particulars 2011 2012 Rs. Rs. Stock 60,000 50,000 Debtors 1,00,000 95,000. BIR 20,000 25,000 Creditors 40,000 50,000 BP 20,000 15,000, O/S Expenses 1,000 1,500 Income received in advance 2,000 1,500 1) Depreciation for the year was Rs. 20,000 2) Interim dividend paid Rs. 60,000 3) The balance of profits at the beginning of the year 1, 10,000 and at the end of the year it was 3,60,000. SECTION-C Answer any four of the following. Each question carries 15 marks. (4x15=60) 7. From the following Balance Sheets of Suresh Company Ltd. and Girish Ltd. as on 31-3-2012, you are required to prepare common size Balance Sheet and comment. Liabilities ‘Suresh Girish Assets Suresh Girish Rs. Rs. Rs. Rs. Equity share Land and Buildings 4,50,000 2,20,000 capital 3,25,000 1,80,000 Machinery 3,50,000 2,50,000CEA A Preference share capital 1,50,000 Reserves and Surplus 1,25,000 Longtermloans 4,50,000 Bills payable 30,000 O/S Expenses 5,000 Creditors 20,000 11,05,000 1,00,000 1,20,000 2,50,000 15,000 2,000 7,000 6,74,000 & Investments Debtors Cash and Bank Prepaid Exps. MS-405 50,000 30,000 4,70,000 1,40,000 56,000 20,000 30,000 14,000 11,05,000 6,74,000 8. State with reasons whether the following transactions result in the increase or decrease of working capital or do not affect the working capital. 1) Acompany issued 5000 shares of Rs. 10 each at par. 2) Debentures of Rs. 1,00,000 are converted into equity shares. 3) Long term investments were sold for Rs. 5,00,000. 4) Fixed assets purchased by issue of shares for Rs. 1,00,000. 5) Cash paid to creditors Rs. 50,000. 6) Preliminary Expenses written off Rs. 10,000. 7) Advance income tax paid Rs. 75,000. 8) Bad debts written off during last year recovered 1000 during this year. 9) B/R of Rs. 40,000 was discounted for Rs. 38,000. 10) Dividend paid Rs. 50,000.MS - 405 & Me 9. The summarised Balance Sheet of Murthy Traders Ltd. for the year ended 31-3-2013 is given below : Liabilities Amount Assets Amount Rs. Rs. Equity Share Capital 70,000 Fixed Assets at cost 1,05,000 Reserves and Surplus 35,000 Current Assets : Profit and Loss A/c 10,000 Stock 12,500, Provision for tax 5,000 Debtors 15,000 Sundry Creditors 20,000 Cash 7,500 35,000 1,40,000 1,40,000 The following further particulars are also given for the year. Sales 60,000 Net Profit After Tax (PAT) = 10,000 Calculate the following : 1) Current Ratio 2) Liquid Ratio 3) NP Ratio 4) Proprietary Ratio 5) Debtors Turnover Ratio 6) Stock Turnover Ratio 7) Average collection period 8) Return on equity.HAN m MS-—405 10. The following is the Balance Sheet for the year ending 31-3-2012 and 31-3-2013. Liabilities 31-312 31-313 Share Capital 585,000 5,85,000 General Reserve 3,90,000 4,03,000 Profit and Loss a/e 72,800 88,400 Creditors 2,18,400. 1,74,200 Provision for tax 97,500 13,000 Mortgage loan — 3,51,000 13,63,700 16,14,600 Additional information : Assets 31-3-12 31-3-13 Fixed Assets 5,20,000 4,16,000 Longterm Investment 65,000 78,000 Stock 3,12,000 2,73,000 Debtors 2,73,000 5,91,500 Bank 1,93,700 2,56,100 13,63,700 16,14,600 1) Provision for tax during the year 1,10,000 2) Interim dividend paid 52,000 3) During the year fixed assets costing 13,000, were sold for Rs. 15,000 4) Investments costing 10,000 were sold during the year for Rs. 13,000. You are required to prepare a statement of working capital changes and fund flow statement. and31-3-2013. Liabilities 2012 Rs. Share Capital 20,000 General Reserve 5,000 Profitand Loss A/c 3,050 Long term loan 7,000 2013 Rs. 25,000 6,000 3,060 . Following are the Summarised Balance Sheets of a Company as on 31-3-2012 Assets 2012 = 2013 Rs. Rs. Landand Building 20,000 19,000 Machinery 15,000 16,900 Debtors 8,000 6,420 Stock 49.000 7,400MS ~ 405 * AN Sundry Creditors 15,000 13,520 Cash 50 860 Provision for tax 3,000 3,500 Goodwill * 500 53,050 51,080 53,050 51,080 Additional information : a) Dividend of Rs. 2,300 was paid. b) Assets of another company purchased were machinery Rs. 2,500, stock Rs. 2,000, Goodwill Rs. 500. c) Machinery was further purchased for cash Rs. 800. d) Depreciation written off machinery Rs. 1,200. e) Income tax provided during the year Rs. 3,300. f) Loss on sale of machinery Rs. 500 was written off. You are required to prepare the cash flow statement as per indirect method. (AS3) ay ualg ayant csnajmarite acto waijertert goa, 33 xg aded veered. (8x2=16) 1. a) dRerwes SeMntoh SAF 8B, b) aint eden ait, aodden ? C) AQ wed atiod egraa goa. d) some? sits nonidest 2 e) Bromad gus she) dsr aes SEosNcss dU Aaa. srieaty SEARO. f) Bag Oveaies aocdead 2ic a * Ms - 405 g) mobr mo words eRraity som, h) ABrBeES Sddod ade evrsesridaty IA. i) woQ wACh ctnarmdda may wourivsy wAZOA, 1) Raw eax} 25%, Rao S223 1,00,000 exten anoaks eS Zorr'o!BOw0. yr - 2 cdmabcoride saath alurert engon. a3 algf ob woerie, (3x8=24) 2. word domed enese) Sar Ood Bare PasboiRmyd. v soxdod SErimn aes, madeoridaty Noda AOA toch AdoaasainOr. @ . Send antosctood emmadbe doeangs atsptbaly SounOn. dscns 31-3-2012 31-3-2013 da. de. rots 21,50,000 25,00,000 RNs BRAG Ades Bes, 13,00,000 14,50,000 socdnr ddréon siegneb: ees ae3, 2,10,000 1,80,000 sioneacd 23, 1,90,000 2,50,000 modnr wdetangs segs De, 1,40,000 1,20,000 & smmod gor 1,70,000 2,30,000Ms - 405 “10. AA 4, Oan0831-3-2013 ¥ desiowysios sera osidadn sh Heder datcrivny ead, Rod stent usbmad = 6 dab, Ago ony = Rnootid shed Ze. 20 none = 38.3,00,000 2830 Ade Boy sa Toes Sd BO;Nog Ca. 15,000 wed, does Baris Ge. 30,000 woah Garido Ge. 45,000 ARO wowed de. 75,000 Béd0c8 wostriaty Goxes8o040000: a) AoesO Ade b) AoeA0 dems oO c) DOeQ d) wo worded anol exbane. 5. Ae) 888°63. 0° Do* J31-12-2010 B98Q31-12-2011 Demsxss Sedowosed. teaemoridd 2010 2011 warts 20102011 da. ae. de. aa. eco wodsny 6,00,000 8,00,000 sano sive mang, doe 2,00,000 3,00,000 2x 8,00,000 9,00,000 capaaans 50,000 60,000 m3i3 3,00,000 2,00,000 eqs emos*meried 2,00,000 50,000 cama 1,70,000 _3,00,000 are 2,00,000 1,80,000 wmosts@xricts 30,000 20,000 Sor Aveo 50,000 30,000 13,00,000 14,20,000 13,00,000 14,20,000 Brabeqod LBS wos aes, adey mower Seo worse waensses BisoraySoawor,le CE An MS - 405 6. Br d¥dors Natcriecd, weosesrigen word antciay sowdeoBoW0. Oacreb 2011 2012 da. de. aeAgaD 60,000 50,000 atsedrted 1,00,000 95,000 woriesad Booarid> 20,000 25,000 gard 40,000 50,000 Ba@tierad Boards 20,000 15,000 wes abs Seine 1,000 1,500 RoorideA coda emod 2,000 1,500 1) skied dake de. 20,000 ax 2) Roqhosd enepoed mmseany de. 60,000 3) etd sey Sal srodocd myCo Ben 1,10,000 sis woke dey cra. 3,60,000. ayen-2 osnabmanide meagre augon, 33/115 woeried. (4x15=60) 7, AbGee? do, se3 NOww? do, eS Tigieod OxDeeS1-3-2012 dmana mga slip, ZomwOr. mearaenpOrte wdc nO eeF wars xbdeot newt maaing, Bec wns» ada 232 —4,50,000 2,20,000 wood 3,25,000 1,80,000 omogiied 3,50,000 2,50,000 SQz Seco BaBines 50,000 — 30,000MS - 405 a2 ANE wort? 1,50,000 1,00,000 asbedrie’s 1,70,000 1,40,000 owen asQ mossdsncd 55,000 20,000 aBedgpo 1,25,000 1,20,000 avortd ssiaact Qegmrsg@me —4,50,000 2,560,000 dederied 30,000 14,000 Sneieienact atvo@re30,000 15,000 embevedarsrds 5,000 2,000 ark 20,000 7,000 11,05,000 6,74,000 11,05,000 6,74,000 8. dnd dtomnunrieh, mmabrmd wodendshakmproacies, dashainnmbaeias, em ncenedodnrbadeRee aoc weUcartd Aled BOA, 1) words Soxoxn9 5000 Bedoriday, da. 10 d aosdeseirt Acad Brad. 2) de. 1,00,000 aon moy rida s5,48 ecorideaf Bose ANG. 3) Seq ao Bowne de. 5,00,000 4 arowemnd. 4) apgriéay aiedo Aecbos staees DoeDaciy Te. 1,00,000. 5) Ganen mssac arid ce. 50,000. 6) xagne sSegyteo Sritesed de. 10,000. 7) soon emDod Fort mBIAT de. 75,000. 8) 008 aiziec dom) me do. 1,000 3: atatr booed OdIaaD. 9) aedocretera BoowrivAy de. 40,000 Awa ae aeboneod seg 38,000. 10) ereDod HOBIAT Ge. 50,000.na oe ta 9, Qs00¥31-3-2013 Cord sade sectors exon why gs evdordodeh cssemponteb Bag wart seg da. On. maine, Seto wowed 70,000 AeA sao dd 1,05,000 Aven she) wedys0 35,000 eso ware i cord aioe Sed sms 10,000 mma 12,500 | emab gon ooo 5,000 adver’ 15,000 Bane 20,000 Britto 7,500 35,000 1,40,000 1,40,000 8 8ehd Ostcrivah erate g tedeand. sip023 60,000 Sori todd Aa,¥ eae= 10,000 BoTedkoBon9 : 1) w9 emer 2) semen 3) Ry woes emdard 4) w.283 exes 5) mMOMDUT Stata eadses 6) OMA Atoamkn waded 7) HoarO oes exo 8) Octane CaF Syts,MS -405 a ‘AMI 10. word gostvod91-3-2012 ada) 31-3-2013 d wx adsd essroeno altsaday st Gert aeons. tsaraerprivo 31-3-12 x Bed wore? 5,85,000 maine, Sosa —_3,90,000 cor) aa dalam 72,800 more> 2,18,400 Zorimen doe —-97,500 eaandmo ~ 31-313 eared z 5,85,000 ag ware 31-3-12 31-313 z z 5,20,000 4,16,000 4,03,000 Banirid (Oars) 65,000 78,000 88,400 camped 1,74,200 adredried 13,000 m0" 3,51,000 13,63,700 16,14,600 wWedgwO abokod: 1) Saeed Sor Devo 1,10,000. 2) de, 52,000 adqjosd earmoodsiny zenseencnods, 3) & Bar oea0 eXob de, 13,000 vidodday da. 15,000 y snowed. 4) 2013 desir HO ce, 10,000 waeadorray da. 13,000 & stederoco2e>. 3,12,000 2,73,000 2,73,000 5,91,500 1,93,700 2,56,100 13,63,700 16,14,600 sioeda sintosored 8 wos at] pow eng wordsadclegT wcenateer ategptbay, ZosROAo. 3S senses. reareunorteo 2012 ae. Beto worden? 20,000 marr, Soeweo 5,000 2013 wxried da. 25,000 rion sive eyed 6,000 axbogiis . word doxtdox Rosairieadse 31 -3-2012 s98931-3-2013 Deeps B38 34 2012 «2013 on. on. 20,000 19,000 15,000 16,900An 15 causbeyaesms 3,050 3,060 daRFso me 7,000 - morido 15,000 13,520 Sorirmn doce 3,000 3,500 53,050 51,080 aiugp atveted: a) da. 2,300 campodeiay maeAeNnT, ates memged ana Ao MS-405 8,000 6,420 10,000 7,400 50 860 = 500 53,050 51,080 b) ee dominovootd Secorively Nee Booed wyriv, cudegris de. 2,600, coma Te. 2,000 a030500. C) dig obese) SNOT tootay de. 800. d) ctvogrie sineed delete diicich do. 1,200. e) empaigoriren e.cinaeiacta 3,300. f) osbogsdeh sinorfood wc ai te, 500 ones dal soos ame (AS3) e8Raa dich wos ‘Begosoaly SauNOX.