Code No: D-14123/E/N

FACULTY OF COMMERCE
B.Com. (CBCS) VI Semester (New) Examination, June / July 2022
(Common Paper for General / Computer Applications / Advertising /
Foreign Trade / and Tax Procedure / Honours Courses)

Subject: Cost Control and Management Accounting

Time: 3 Hours Max. Marks: 80
PART A
Note: Answer any five questions. (5 x 4 = 20 Marks)
1. Explain the features of Management Accounting.
2. Explain Standard Costing.
3. Explain the importance of Financial Statement Analysis.
4. Explain about the Statement of Changes in Working Capital.
5. Explain the importance of Cash Flow Statement.
6. From the following figures Calculate the Sales required to earn a Profit of Rs.
1,20,000 Sales Rs. 6,00,000; Variable Cost Rs. 3,75,000; Fixed Cost Rs.1,60,000;
7. The Working Capital of a firm is Rs. 80,000 and its Current Ratio is 5. What are the
Current Assets and Current Liabilities.
8. Calculate Cash Flows from Operating Activities from the following information:
Sales Rs. 5,40,000
Purchases Rs. 3,40,000
Wages Rs. 50,000
Advertisement Rs. 20,000
PART B
Note: Answer all the questions. (5 x 12 = 60 Marks)
9. a) Define Management Accounting. Explain its objectives.
(OR)
b) The following information is related to Kakatiya Cements Ltd,

Sales (10,000 Tones) Rs. 5,00,000

Material Rs. 1,00,000
Labour Rs. 50,000
Direct Expenses Rs. 10,000
Fixed Cost Rs 3,00,000
Profit Rs. 40,000
You are required to find out (a) Breakeven Point (b) P/V Ratio (c) Margin of
Safety (d) Sales required to earn a Profit of Rs. 50,000 (e) Find Profit at Sales
level of Rs.9,00,000.
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10.a) The Standard Material Cost for 100kg of Chemical X is made up of
Chemical A-30kg @ Rs.4/kg
Chemical B-40kg @ Rs.5/kg
Chemical C-80kg @ Rs.6/kg
In a batch, 500kgs of Chemical X was produced from a mix of Chemical
A-140 kg at a cost of Rs.588, Chemical B-220kg at a cost of Rs. 1,056 and
Chemical C-440kg at a cost of Rs. 2,860. Calculate all Material Variances.
(OR)
b). Prepare a Manufacturing Overhead Budget and ascertain the manufacturing
rates at 50% and 70% capacities. The following particulars are given at 60%
capacity.
Variable Overheads
Indirect Material Rs. 6,000
Indirect Labour Rs. 18,000
Semi-Variable Overheads
Electricity (40% Fixed) Rs. 30,000
Repairs and Maintenance (20% Variable) Rs. 3,000
Fixed Overheads
Depreciation Rs. 16,500
Insurance Rs. 19,500
11. a) From the following information prepare Comparative Balance Sheet and
comment.
Liabilities 2020 2021 Assets 2020 2021
Amount Amount Amount Amount
Rs Rs Rs Rs
Share Capital 1,50,000 1,50,000 Bills 1,755 2,189
Receivable
Reserves 4,000 5,000 Cash 30,000 20,000
Bills Payable 6,000 6,000 Debtors 14,000 14,000
Creditors 7,472 7039 Stock 6,627 2,650
Debentures 4,000 -- Buildings 1,00,000 1,10,000
Long term 53,000 52,000 Furniture 30,000 20,000
Loan
Machinery 30,000 31,200
Bank 12,090 20,000
2,24,472 2,20,039 2,24,472 2,20.039

(OR)
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b) From the details given below. Compute
(i) Return on Capital Employed (ii) Return on Total Assets and
(iii) Return on Equity Shareholders Funds
Rs.
Net Worth (Shareholders Equity) 7,50,000
Preference Share Capital 2,00,000
Preference Share Dividend 16,000
Capital Employed 11,00,000
Intangible Assets 1,40,000
Total Assets 12,65,000
Net Profit After Taxes 1,50,000
Interest 23,500

12. a) From the following Balance Sheets of a Company, prepare a Schedule of

Changes in Working Capital and Funds Flow Statement.
2017 2018 2017 2018
Liabilities Assets
Rs. Rs. Rs. Rs.
Share Capital 63,000 1,00,000 Cash 15,000 20,000
Reserve and surplus 50,000 60,000 Debtors 30,000 28,000
Trade Creditors 42,000 39,000 Stock 55,000 72,000
Bank Overdraft 35,000 25,000 Land & Buildings 80,000 1,00,000
Outstanding Expenses 5,000 6,000 Furniture 15,000 10,000
1,95,000 2,30,000 1,95,000 2,30,000
(OR)
b) The following are the Balance Sheets of B. Ltd as on 1st December, 2018and
2019
Liabilities 2018 Rs. 2019 Rs. Assets 2018 Rs. 2019 Rs.
Equity Capital 1,00,000 1,60,000 Fixed Assets 1,52,000 2,00,000
Reserves 70,250 85,300 Inventory 93,400 89,200
Depreciation 60,000 40,000 Debtors 30,800 21,100
Fund
6%Debenture 50,000 -- Prepaid 3,950 3,000
Expenses
Creditors 28,000 48,000 Bank 28,100 20,000
3,08,250 3,33.300 3,08,250 3,33,300
The following additional information for the year 2019are also available
(a) Net Profit Rs, 27,050
(b) Depreciation charged Rs. 10,000
(c) Cash Dividend declared during the period Rs. 12,000
Prepare a Funds Flow Statement.

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13. a) Distinguish between Funds Flow Statement and Cash Flow Statement.
(OR)
b) Prepare Cash Flow Statement from the following as on 31 st December 2019
and 2020.
Balance sheet as on
Liabilities 2019 2020 Assets 2019 2020
Rs. Rs. Rs. Rs.
Equity Share Capital 20,000 25,000 Plant 46,000 45,000
Debenture 15,000 12,000 Stock 5,000 9,000
Creditors 16,000 18,000 Debtors 9,000 7,000
P&L Account 11,000 14,000 Cash 2,000 8,000
62,000 69,000 62,000 69,000
.
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