Code No.

: BB-336
Roll No. ......................... Total No. of Printed Pages : 16 2.
Code No. : BB-336 What is contingent Liabilities ?
Online Annual Examination, 2022 3.
B.Com. Part III
What are the two objects of Financial Statement ?
GROUP- II
Paper II 4.
[Management Accounting]
What is Ratio Analysis ?

5.

What is Operating Ratio ?

6.
Note : Section ‘A’ containing 10 very short answer type
questions, is compulsory. Section ‘B’ consists of What is Cash flow statement ?
short answer type questions and Section ‘C’
consists of long answer type questions. Section ‘A’ 7.
has to be solved first. What is meant by differential cost ?

8.
Section ‘A’
What is Flexible Budget ?

9.
Answers the following very short answer type
questions in one or two sentences. 1×10=10 What is Zero-base Budgeting ?
1. 10.
Write any two characteristics of management
What is material variance ?
Accounting.
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 Code No. : BB-336 Code No. : BB-336
From the following information calculate the amount
Section ‘B’ of net cash flow from the investing activities :

150-200 (Particulars) 31-3-2014 31-3-2015

` `
Answer the following short answer type questions (Land) 20,000 10,000
with word limit 150-200. 5×5=25
1. (Plant and Machinery) 81,000 1,00,000
What is meant by Financial Analysis ?

(Long-term Investment) 4,000 10,000

(Additional informations) :
` 75,000; ` 20,000; `
(1) ` 5,000
5,000; ` 60,000;
Depreciation charged on Plant and Machinery
` 5,000
Liquid assets ` 75,000; Stock ` 20,000; Prepaid
(2) ` 6,000
expenses ` 5,000; Working capital ` 60,000.
` 4,000
Calculate current ratio.
Plant and Machinery with a book value of
2.
` 6,000 was sold for ` 4,000.
What is statements of changes in working capital ?
(3) ` 6,000
Land was sold at a profit of ` 6,000.
3. ` 150
120 `

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 Code No. : BB-336 Code No. : BB-336

`
60
Calculate B.E.P. of from the following informations :
40
(Sales) ` 10,000
10
(Variable Cost) ` 50,000
40
(Profit) ` 20,000
150
(Fixed cost) ` 40,000
(P/V Ratio) 20%
A manufacturing company finds that while its cost is
4. 80% 60%
` 150 each to make component, the same is available
in the market at ` 120 each with an assurance of
800 80%
continued supply. The breakdown of cost is :
` 100
`
` 50
Material per unit 60
` 20
Labour per unit 40
` 50,000 40%
Variable Expenses 10
` 40,000 60%
Fixed cost 40
With the following data for 80% capacity prepare a
150
flexible budget for 60% :
Should the company go for buying in place of making
Unit Produced 800 capacity 80%
the part ?
Materials ` 100 Per unit
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 Code No. : BB-336 Code No. : BB-336
Labour ` 50 Per unit The production of a certain unit requires 10 kg. of
material costing ` 5 per kg. On completion of the
Direct Expences ` 20 Per unit
production of a unit it was found that 12 kg of material
Factory Expenses ` 50,000 40% Fixed
costing ` 4.50 per kg. has been consumed. Calculate
Administration Material Variance.
Expenses ` 40,000 60% Fixed
Section ‘C’

300-350

Answer the following long answer type questions

with word limit 300-350. 8×5=40
What is Sales Buget ? State the principal factors that
should be considered in developing a sales budget. 1.

5.
What do you mean by Management Accounting ?
Differentiate Zero-base Budgeting and Traditional
Explain its main objectives.
Budgeting

`5
10 –
` 4.50 The following is the Balance sheet of Prabhakar
12 Manufacturing Co. Ltd.

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 Code No. : BB-336 Code No. : BB-336
(Balance Sheet) (a) (Total Assets Turnover)

(Particulars) (b) (Fixed or Non-

Amount current Assets Turnover)
I. (Equity and Liabilities) : ` (c) (Current Assets Turnover)
(Shareholdre’s fund) :
(d) (Working Capital Turnover)
(Share capitals) 40,000
2.
(Reserve & surplus) 1,00,000
(Non-current liabilities) :
(Debentures) 1,00,000 From the following data you are required to prepare
(Current Liabiliies) : a statement of Changes in working Capital and a fund
(Trade Payables) 50,000 flow statement.

6,50,000 (Particulars) 31-3-14 31-3-15

II. (Assets) : ` `
(Non-current asses) 4,50,000 (Cash) 20,000 25,000
(Current assets): (Trade Receivables) 24,000 27,000
(Inventories) 1,00,000 (Inventories) 39,000 39,000
(Trade receivables) 70,000 (Fixed Assets) 50,000 58,000
(Cash & cash eq.) 30,000 (Provision for Dep.) 21,000 25,000
6,50,000 (Trade payable) 20,000 21,000
` 8,00,000 (Long term Loan) 14,000 13,000
(Share capital) 50,000 53,000
Sale for the year amounted to ` 8,00,000. Calculate (Retained Earnings) 28,000 37,000
the following ratios :
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 Code No. : BB-336 Code No. : BB-336
(Additional Information) home market at ` 25 per unit. The cost sheet (per
unit) on the basis of this output is as under.
(i) ` 4,000
` 1500) `
(Material) 8.00
[Fixed assets costing ` 4,000 (accumulated
depreciation ` 1,500) was sold at book value] (Labour) 6.00

(ii) ` 3,000
(Fixed factory Expenses) 2.00
[During the year a dividend of ` 3,000 was paid]

(iii) ` 12,000
(Variables factory Expenses) 1.50
[Net Profit for the year was ` 12,000] (Office Expenses) 1.00
(Selling Expenses) :
(Fixed) 0.50
(Variable) 1.00
(Total cost) 20.00
Following are the Balance Sheet of Pratibha Ltd.
Prapare (cash flow statement.)
5,000
3. 15,000 ` 18
1000
` 25 A foreign customers is interested in the product but
he is willing to buy only 5,000 units and that too at a
A firm having a capacity of 15,000 units per year price of ` 18 per unit. Do you advice the firm to
produces. 10,000 units which are consumed in the accept the order.
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 Code No. : BB-336 Code No. : BB-336
4.

What do you mean by Performance Budgeting ?

The statement of marginal Profit of Pooja Ltd. is as Explain its importance. Has it any limitations ?
under : `
(16,000
[Sales (16,000 units)] 3,20,000 20,000
(` 15 10,000
[Variable cost (` 15 per unit)] 2,40,000
(Contribution) 80,000 `
(fixed cost) 60,000 40
(Profit) 20,000 50% 20
(40% 10
— 5
Calculate the project volume ratio and then on the
(60% 5
basis of P/V Ratio, determine : 80
(i) 20
(Break even point in rupees) ` 100
(ii) ` 4,000
70% 100%
(Margin of safety when profit) in ` 4,000)
(iii) ` 40,000
60%
(Sales to earn a profit of ` 40,000)
90% 5% 90%
(iv) ` 2,56,000
5% 2½%
(Variable cost when sales ammount to ` 2,56,000.
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 Code No. : BB-336 Code No. : BB-336
A manufacturing concern has the production capacity
of 20,000 unit per annum. The expences budgeted for
10,000 units for a period are listed below :
Per unit ` : 4
Material 40 : `6
Wages 50% variable (50% variable) 20 : 2,000
: 8,500
Manufacturing Exp. (40% Fixed) 10
: 200
Administration Exp. (All Fixed) 5
: ` 5.80
Selling & Distribution Exp. (60% Fixed) 5 Calculate labour variance from the following data :
Total Cost 80 Standard time : 4 hours per unit
Profit 20 Standard rate : ` 6 per hours
Selling Price ` 100 Actual Production : 2,000 units
Prepare a flexible budget to show 70% and 100% Total hours taken : 8,500 hours
level of activity. It is expected that the present unit Idle time : 200 hours
selling price will remain constant up to 60% activity
Actual rate : ` 5.80 per hour.
beyand which a 5% reduction is contemplated up to
90% activity level. Above 90% a 2½% reduction in
orginal price is contemplated for every 5% increase
in volume.

5.

What is labour cost variance. Explain its various

component alongwith their formulae.
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