Reg. No………………………..…………………..
Name……………………………………………… 18U630
B. COM. DEGREE END SEMESTER EXAMINATION - MARCH 2018
SEMESTER – 6: COMMERCE (CORE COURSE)
COURSE: 15U6CRCOM17: ACCOUNTING FOR MANAGERIAL DECISIONS
(For Regular 2015 Admission)
Time: Three Hours Max. Marks: 75
SECTION A
Answer all questions, each carries 2 marks
1. What is standard cost?
2. What is a cost center?
3. What is meant by Static Analysis?
4. What are trend ratios?
5. What is meant by combined ratios (with one example)?
6. Calculate current liabilities, if current asset is 1,20,000 and current ratio is three times.
7. What is meant by flow of funds?
8. What is fund from operation?
9. Differentiate between cash flow and fund flow statements on the basis of change in current
assets and liabilities.
10. What is meant by variance analysis? (2 x 10 = 20)
SECTION B
Answer any Five questions, each carries 5 marks
11. Current Ratio = 2.8, Acid-test Ratio = 1.5, Working Capital = 1,62,000.
Calculate (i) Current Assets (ii) Current Liabilities (iii) Liquid Assets (iv) Stock.
12. Prepare statement of sources and application of funds.
i. Increase in working capital 4000
ii. Net Profit before writing off goodwill and charging dividend 10,750
iii. Depreciation provided 1750
iv. Dividend Paid 3500
v. Goodwill written off out of profit 5000
vi. Share capital issued for cash 5000
vii. Machinery purchased for cash 10000
13. Compute cash from operation from the following:
i. Net profit before tax 55000
ii. Income tax paid 22000
iii. Depreciation written off on fixed asset 2500
iv. Profit on sale of land 5000
v. Interest on debentures paid 1500
vi. Dividend received 1000
vii. Proceeds from earth quake disaster management 2000
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viii. Increase in the amount of stock 750
ix. Decrease in debtors 300
x. Decrease in creditors 250
14. Product M requires 100kgs of materials @ Rs. 40 per kg. The actual consumption of material for
the manufacturing of that product came to 120kgs of materials @ Rs. 45 per kg.
Calculate MCV, MPV, MUV.
15. From the following prepare schedule of changes in working capital.
Liabilities 2002 2003 Assets 2002 2003
Share capital 4,50,000 4,50,000 Land 2,00,000 2,00,000
General 3,00,000 3,10,000 &buildings 2,00,000 1,20,000
reserve 56,000 68,000 Machinery 50,000 60,000
Profit &Loss 1,68,000 1,34,000 Investments 2,40,000 2,10,000
A/c 75,000 10,000 Stock 2,10,000 4,55,000
Creditors ........... 2,70,000 Debtors 1,49,000 1,97,000
Provision for Cash
tax
Mortgage
loan
10,49,000 12,42,000 10,49,000 12,42,000
16. Fund flow statement is an important tool in the armoury of the finance manager. Explain.
17. Explain the classification of ratios according to its nature. (5 x 5 = 25)
SECTION C
Answer any Three questions, each carries 10 marks
18. From the following prepare fund flow statement.
Liabilities 2002 2003 Assets 2002 2003
Share Capital 2,00,000 2,50,000 Land & building 2,00,000 1,90,000
General Reserve 50,000 60,000 Plant & Mach. 1,50,000 1,69.000
Profit & Loss A/c 30,500 30,600 Stock 1,00,000 74,000
Bank loan 70,000 ------- Sundry debtors 80,000 64,200
Sundry Creditors 1,50,000 1,35.200 Cash in hand 500 600
Provision for tax 30,000 35,000 Cash at bank ----- 8,000
Goodwill ----- 5,000
5,30,500 5,10,800 5,30,500 5,10,800
Additional information:
During the year 2003:
i. Dividend of Rs.23000 was paid.
ii. Assets of another company were purchased for a consideration of Rs.50,000 payable in
shares.
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The following assets were purchased: Stock – Rs.20,000; Machinery – Rs.25000.
iii. Machinery was purchased for Rs.8000.
iv. Depreciation written off: building – Rs.10,000 and machinery – Rs.14000.
v. Income tax paid during the year amounted to Rs.28,000.
19. From the following given information complete the Balance Sheet for the year 2003.
Liabilities Amt. Assets Amt.
Share capital ………. Fixed assets ……….
Reserves and surplus ………. Stock ……….
Long term borrowings (bal. Debtors ……….
fig.) ………. Bank ……….
Current liabilities ……….
………. ……….
Current ratio 2.5
Liquidity ratio 1.5
Net working capital Rs.3,00,000
Stock turnover ratio 6 times
Gross profit ratio 20%
Fixed Assets turnover ratio 2 times
Debt collection period 2 months
Fixed assets to shareholders net worth 0.80
Reserve and surplus to capital 0.50
20. The income statement of a concern is given for the year ending 31 st march 2010 and 2011.
Rearrange the figures in comparative form and interpret the result.
Particulars 2010 2011
Net sales 15,70,000 18,00,000
Cost of goods sold 9,00,000 1,00,000
Operating expenses:
General & administrative expense 1,40,000 1,44,000
Selling expense 1,60,000 1,80,000
Non-operating expenses:
Interest paid 50,000 60,000
Income tax 1,40,000 1,60,000
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21. From the following prepare Cash Flow Statement.
Liabilities 31.3.03 31.3.04 Assets 31.3.03 31.3.04
Equity share 3,00,000 4,00,000 Goodwill 1,15,000 90,000
capital Land & Building 2,00,000 1,70,000
12% Machinery 80,000 2,00,000
Redeemable 1,50,000 1,00,000 Debtors 1,60,000 2,00,000
preference 40,000 70,000 Stock 77,000 1,09,000
share capital 30,000 48,000 Bills Receivable 20,000 30,000
General Reserve 42,000 50,000 Cash in hand 15,000 10,000
Profit & Loss A/c 55,000 83,000 Cash at bank 10,000 8,000
Proposed 20,000 16,000
Dividend 40,000 50,000
Creditors
Bills Payable
Provision for tax
6,77,000 8,17,000 6,77,000 8,17,000
Additional Information:
i. Depreciation of Rs.10000 and Rs.20000 has been charged on machinery and land &
buildings respectively in the year ended 31.3.04.
ii. An interim dividend of Rs.20,000 has been paid in October 2003.
iii. Rs.35000 income tax was paid during the year 2003-04.
22. Explain the procedure for establishment of standards.
(10 x 3 = 30)
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