Reg. No ..................... Name ...............................

24U643

B. COM DEGREE END SEMESTER EXAMINATION - MARCH 2024

SEMESTER 6 - COMMERCE
COURSE : 19U6CRCOM21 - ACCOUNTING FOR MANAGERIAL DECISIONS
(For Regular 2021 Admission and Supplementary 2020/2019 Admissions)
Time : Three Hours Max. Marks: 75
PART A
Answer any 10 (2 marks each)
1. Give any three managerial uses of fund flow statement.
2. How will you calculate cash from opera�ons ?
3. What is net profit Ra�o ? Show the formula.
4. What is window dressing ?
5. When does flow of funds take place ?
6. What is the need for calcula�ng Turnover Ra�o ?
7. List out four advantage of ra�o analysis.
8. Is deprecia�on a source of finance ?
9. Give any two limita�ons of cash flow statement.
10. What is Bogey Standard?
11. Define Standard Cost.
12. What do you mean by compara�ve statement?
(2 x 10 = 20)
PART B
Answer any 5 (5 marks each)
13. List out the steps involved in the determination of Standard Costs.
14. "Ra�os are indicators some�mes pointers but not in themselves powerful tools of
management.”Explain.
15. Calculate ‘Fund from Operations’ from the following Income Statement
Rs Rs
To Rent Paid 25,000By Gross Income 4,90,000
To Salaries Paid 1,00,000By Profit on Sale of Machinery 3,000
To Provision for Depreciation 50,000By Refund of Tax 2,000
To Commission Paid 5,000By Dividend 10,000
By Profit on Revaluation of
To Depletion of Natural Resources 10,000 10,000
Investment
To Provision for Taxation 1,50,000
To Discount on Issue of Shares 2,000
To Loss on Sale of Equipment 10,000
To Provision for Doubtful Debts 3,000
To Goodwill Written off 5,000
To Transfer of General Reserve 6,000
To Premium on Redemption of
1,000
Debentures
To Interim Dividend 25,000
To Net Income 1,23,000
5,15,000 5,15,000
16. (a) What is the significance of ra�os ?
(b) What are the limita�ons of ra�o analysis ?
17. "Retained earnings and the allowance for deprecia�on are the two primary sources of funds."
Comment.

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18. Prepare a common size income statement from the following information and comment on the
statement.
Particulars 2020 2021
Sales 800000 1000000
Cost of sales 560000 600000
Expenses 80000 100000
Other Incomes 20000 20000
19. Classify the following into cash flows from operating activities investing
activities financing activities
(a) Cash sale of goods
(b) Cash paid to suppliers of raw material
(c) Cash payments of salaries and wages to employees.
(d) Cash payment to acquire fixed assets
(e) Cash proceeds from issues of shares at premium.
(f) Payment of dividend
(g) Interest received on investment
(h) Interest on debenture
(i) Payment of income tax
(j) Cash payment of a long term loan
20. From the information, show the result of opinion of a manufacturing company using trend percentages
will 2008 as base year.
Particulars 2011 2010 2009 2008
Sales 1300 1200 950 1000
Cost of goods sold 728 690 589 600
Selling expenses 120 110 97 100
Office expenses 20 22 23 25
Insurance 6 5 7 6
Depreciation 20 30 10 30
Bad Debts 15 13 16 19
Interest on loan 28 24 25 28
(5 x 5 = 25)
PART C
Answer any 3 (10 marks each)
21. From the following information you are asked to prepare a Balance sheet

1. Current liabilities 100000

2. Reserves and surplus 50000
3. Bills payable 40000
4.Debtors 35000
5. Current ratio 1.75
6. Acid test ratio 1.15
7. Fixed assets to proprietors fund 0.75
8. Ratio of fixed assets to current assets 3
22. Following is the B S of sweety Ltd as on 31-3-21
Liability ₹ Assets ₹
Preference share capital 400000 L&B 350000
ESC 600000 P&M 400000
reserves and surplus 150000 Investment 150000
Long term loan 100000 Stock 180000
B/P 20000 Sundry Debtors 120000
Sundry Creditors 30000 Cash 120000
O/S Expenses 8000
Proposed dividend 12000
1320000 1320000

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 Prepare common size B S and comment on the B S
23. Prepare cash flow statement from the following balance sheet of Vysali Pharmaceuticals ltd. for the
year ended 31st March 2017:
Particulars Note No. 01.04.2016 01.04.2017
I. Equity and Liabilities
Shareholders’ Funds:
Share capital 17,00,000 18,35,000

Reserves and surplus 1

Reserves 42,000 83,700
P/L A/c 1,00,000 1,30,000
Preliminary expenses (10,000) (2,000)
Non Current Liabilities
Long term borrowing (10% Mortgage Loan) 10,000 70,000
Current Liabilities:
Short term borrowings (Bank OD) 8,000 18,000
Trade Payable 2 1,14,000 1,08,000
Creditors
Bills payable 14,000 13,000
Short term Provision (proposed dividend) 70,000 50,000
TOTAL 20,32,000 22,92,700
II. Assets
Non- current assets:
Fixed asssets: 3
Tangible asets
Buildings 8,00,000 10,00,000
Plant and Machinery 2,50,000 3,70,000
Furniture 5,000 6,000
Intangible Assets (Goodwill) 3,00,000 3,43,700
Non-current investments 1,64,000 1,70,000
Current Assets:
Inventories (Stock) 4,00,000 3,43,700
Trade Receivables (Debtors) 4
Debtors 1,00,000 45,000
Bills receivables 8,000 9,000
Cash and Cash Equivalents 2,000 2,200
Other CA (prepaid expenses) 3,000 3,100
TOTAL 20,32,000 22,92,700

Additional information:

1. Depreciation is charged on building at 3% of cost Rs 9,00,000, on plant and machinery at 8% of

cost Rs 4,00,000 and on furniture at 5% of cost Rs. 8,000.
2. Investments were purchased and interest received Rs 3000 was used in writing down the book
value of investments.
3. The declared dividend for 2015-16 was paid and interim dividend of 20,000 was also paid out of
the profit and loss account.
4. Income tax paid during the year 2016-17 amounted to 40,000.

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24. The following are the summarised Balance Sheets of Ess Kay Ltd. As at 31st March, 2020 and 2019:
Particulars 31- 03- 2020 ₹ 31- 03- 2019 ₹
I. Equity and Liabilities
Shareholders’ Funds:
Share capital:
10% Preference share capital 1,10,000 1,00,000
Equity share capital 2,50,000 2,20,000
Reserves and surplus:
Securities Premium 26,000 20,000
P&L (Balance) 1,34,000 1,04,000
Non- current liabilities:
12% Debentures 64,000 70,000
Current Liabilities:
Trade Payables:
Sundry Creditors 46,000 38,000
Bills Payable 4,000 5,000
Provision for Taxation 12,000 10,000
Dividends Payable 8,000 7,000
TOTAL 6,54,000 5,74,000
II. Assets
Non- current Assets:
Fixed Assets:
Machinery 2,30,000 2,00,000
Buildings 1,76,000 1,50,000
Land 18,000 18,000
Current Assets:
Inventories (Stock) 98,000 84,000
Trade Receivables:
Sundry Debtors 38,000 38,000
Bills Receivable 62,000 42,000
Cash and cash equivalents:
Cash 32,000 42,000
TOTAL 6,54,000 5,74,000
You are required to prepare a statement of sources and applications of funds along with a supporting
schedule of changes in working capital.
25. From the data calculate :
(i) Gross Profit Ratio (ii) Net Profit Ratio (iii) Return on Total Assets
(iv) Inventory Turnover (v) Working Capital Turnover (vi) Net worth to Debt
Sales 25,20,000 Other Current Assets 7,60,000
Cost of sale 19,20,000 Fixed Assets 14, 40,000
Net profit 3,60,000 Net worth 15,00,000
Inventory 8,00,000 Debt. 9,00,000
Current Liabilities 6,00,000
(10 x 3 = 30)

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