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SYBAF- Management Accounting

The document contains a series of accounting questions and tasks, including true/false statements, matching pairs, preparation of revenue and balance sheets, and calculations of various financial ratios. It also includes inquiries about management accounting and cash flows. The tasks are designed to assess understanding of financial principles and reporting.

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Saniya Rafique
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5 views

SYBAF- Management Accounting

The document contains a series of accounting questions and tasks, including true/false statements, matching pairs, preparation of revenue and balance sheets, and calculations of various financial ratios. It also includes inquiries about management accounting and cash flows. The tasks are designed to assess understanding of financial principles and reporting.

Uploaded by

Saniya Rafique
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q1.

(A) state whether the following statements are true or false ( Any 8): (08)
1. Owed funds are internal source of funds.
2. Loss due to fire is non-operating income.
3. Discount on issue of debentures expense not written off is a fictitious asset.
4. Temporary working capital is required for seasonal products.
5. Loan taken is a financing activity.
6. Management accounting is a financing activity.
7. Sale of land is cash inflow from financing activity.
8. Debentures are borrowed funds.
9. Bills payable is non-quick liability.
10. Goodwill is a fictitious asset.

Q1. (B) Match the pair: (Any seven) (07)

COLUMN A COLUMN B
1. Stock a) Non-operating Item
2. Bank Overdraft b) Selling and Distribution
item
3. Standard Liquid Ratio c) Total Current Assets
4. Issue of shares d) Intangible Assets
5. Standard Current Ratio e) Combine Ratio
6. Debt Service Ratio f) Financing Activity
7. Patents and Trademarks g) 1:1
8. Gross Working Capital h) 2:1
9. Loss on sale of Furniture i) Non-quick current liability
10. Advertisement j) Non-quick current asset

Q 2 From the following Information prepare Revenue Statement in vertical form: (15)

Particulars Amount
Closing Stock 40,000
Purchases 2,00,000
Postage and Telegram 5,000
Sales 6,20,000
Carriage Outward 5,000
Opening stock 50,000
Profit on sale of Investment 5,000
Office Rent 5,000
Carriage inward 20,000
Wages 72,000
Octroi 5,000
Office staff Salaries 40,000
Audit fees 20,000
Advertisement 25,000
Finance Expense 25,000
Loss on sale of furniture 30,000
Depreciation on : Plant and Machinery 15,000
Furniture 16,000
OR
Q.2 From the following balance sheet prepare vertical balance sheet statement for the year end
31/03/2019: (15)

Liabilities Amount Assets Amount


Equity Share Capital 250000 Land and Building 300000
9% Preference share Capital 250000 Plant and Machinery 100000
General Reserve 100000 Furniture and Fixture 100000
10% Mortgage Loan 250000 Stock 150000
Accounts Payable 100000 Debtors 200000
Provision for taxation 50000 Cash balance 50000
Profit and Loss A/C 70000
Preliminary Expense 10000
Discount on issue of 20000
debentures
1000000 1000000

Q.3 Following is the Balance Sheet of Z ltd as on 31/09/2019 (15)

Liabilities Amount Assets Amount


Equity Share Capital 250000 Land and Building 300000
9% Preference share Capital 250000 Plant and Machinery 100000
General Reserve 100000 Furniture and Fixture 100000
10% Mortgage Loan 250000 Stock 150000
Accounts Payable 100000 Debtors 200000
Provision for taxation 50000 Cash balance 50000
Profit and Loss A/C 70000
Preliminary Expense 10000
Discount on issue of 20000
debentures
1000000 1000000
The following further information is also given for the year : Total Sales is Rs 800000,Cost of
goods sold –Rs 400000, Opening stock Rs 50000 and out of total sales, 20 % are cash sales.
You are required to calculate : Current Ratio, Capital Gearing Ratio, Propreitory ratio, Stock
Turn over ratio, Gross Profit Ratio.
OR
Q.3 Rose manufacturing ltd presents the following information for 2018-19 (15)
Estimated yearly production and sales = 60,000 units
Estimated cost element P.U.: Raw Material-Rs 5,Wages-Rs 3,Overheads-Rs 2, Selling Price Rs
12. Further Information is given as follows:
1) The Company extends 2 months credit to its debtors.
2) The Company maintains 2 months stock of raw materials
3) The Company maintains 1 month stock of Finished goods.
4) The processing period is 1 month.
5) The Company is allowed a credit period of 3 months from its creditors.
6) Wages and overheads are paid 1 month in arrears.
7) The cash and bank balance is expected to be equal to Rs 10,000.
8) There is regular purchase, production and sales cycle.
9) During production process wages and overheads accrue evenly.

Prepare statement showing an estimate of working capital.

Q.4 Following are the particulars of Montex ltd. For the year 2018-19. Calculate the working
capital estimate for an annual sales of 52,000 units. (15)

Cost sheet (per unit) Rs


Raw Material 20
Wages 10
Overheads 10
Profit 10
1) Production and Sales take place evenly throughout the year.
2) Suppliers give 4 weeks credit.
3) Raw material remains in stock for 4 weeks.
4) Processing period is of 1 week wherein raw material, wages and overheads accrue
evenly.
5) Finished goods remain in stock for 5 weeks.
6) Customers are given 4 weeks credit.
7) Time lag in payment of overheads is 1 week.
8) Time lag in payment of wages is 2 weeks.
9) Cash and Bank balance is maintained at Rs 22,000.
OR
Q.4 Following is the balance sheet of Rath ltd as on 31st March: (15)

Liabilities 2018 2019 Assets 2018 2019


Equity Share Capital 100000 1200000 Land and Building 1000000 1400000
0
Preference ShareCapital 800000 1000000 Equipment 500000 450000
Reserves and Surplus 200000 250000 Plant & Machinery 500000 450000
Debentures 200000 100000 Furniture 300000 400000
Profit & Loss account 250000 350000 Stock 200000 300000
Creditors 100000 150000 Debtors 100000 150000
Provision for tax 20000 30000 Cash and Bank 50000 30000
Bills Payable 80000 100000
265000 3180000 2650000 3180000
0
Other Details:
1) Tax paid during the year Rs 15000.
2) Depreciation on Equipment Rs 50000, Furniture Rs 15000 and on plant and Machinery
Rs 50000.
Prepare Cash Flow Statement for the year ended 31/03/2019.
Q.5 (a) What do you mean by Management Accounting. Give its scope. (08)
Q.5 (b) Explain Different types of Cash Flows. (07)
OR
Q.5 Write short notes on:(Any 3) (15)
1) Working Capital.
2) Cash Flow from Investing Activity.
3) Cash Flow
4) Current Assets
5) Current Liabilities

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