Register Number :

Name of the Candidate :

5 5 0 1B.Com. ( Accounting & Finance )

DEGREE EXAMINATION, 2011

( THIRD YEAR )

( PART - III )

( PAPER - XI )

760 / 752. ACCOUNTING FORMANAGERIAL DECISIONS /

ACCOUNTING FOR BUSINESS DECISIONS

( Common with B.B.S. /B.Com. [ Business Statistics ] )

December ] [ Time : 3 Hours

Maximum : 100 Marks

Answer any FIVE of the following questions.ALL questions carry equal marks.

1. What is Management Accounting? How doesmanagement accounting differ from financialaccounting?

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2.What are the uses and limitations of funds flowstatement? How is funds flow statementdifferent from cash flow statement?

3.Define standard costing. Explain its advantagesand limitations.

4.What is budgetary control? What are its meritsand demerits?

2

10.ˇµ ÔVbD s√´∫ÔπoÚÕm

(∂)ÂÁ¶ xÁ≈ s˛>D.

(g)¿ÏÁ\ s˛>D.

(÷) cˆÁ\BV·Ï s˛>D

(~) Ô¶[ á x>_ s˛>D

g˛BkuÁ≈¬ Ô¬˛|Ô.

ÿ√VÆ©AÔ^ ÿƒV›mÔ^

ƒV>V´ √∫zWÈD \uÆD,

x>_5,00,000Ô‚Ω¶∫Ô^6,00,000

8% x[–ˆÁ\

√∫z x>_2,00,000÷BÕ]´D5,00,000

9% Ô¶[

√›]´∫Ô^4,00,000ƒ´¬˛Ú©A2,45,000

ÔV©A3,00,000√u√È

Ô¶™VπÔ^2,00,000

√u√Èÿ´V¬ÔD \uÆD

Ô¶ÃÕº>VÏ2,00,000k∫˛lÚ©A55,000

16,00,00016,00,000

15

3

5.Fr

om th

e fo

llow

ing

Bal

ance

She

ets

of X

Ltd

., pr

epar

e a

com

para

tive

Bal

ance

She

et.

( I

n La

khs)

Liab

ilitie

s31

.12.20

0831

.12.20

09A

sset

s31

.12.20

0831

.12.20

09

Bills

Pay

able

150

225

Cash

5070

Sund

ry c

redi

tors

150

200

Sund

ry d

ebto

rs30

045

09

% D

eben

ture

s10

015

0St

ock

100

200

10%

Pre

fere

nce

shar

e ca

pita

l20

020

0La

nd10

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0Eq

uity

sha

re c

apita

l30

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0Bu

ildin

gs25

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5Re

serv

es20

025

0Pl

ant

200

180

Furn

iture

100

8011

0013

2511

0013

25]‚¶D - I ]‚¶D - II

1-gD gı|

֮]l_ 48,000 20,000

2 ,, 32,000 24,000

3 ,, 20,000 36,000

4 ,, - -- 48,000

5 ,, 24,000 16,000

6 ,, 12,000 8,000

WÔ´ WÔµ \]©A xÁ≈l[ JÈD ÷´ıΩ_ ®Á>

º>Ï° ÿƒFB √ˆÕmÁ´©√m? WÆ\›][ x>_

∂¶¬ÔD 10% gzD. 10% >^”√Ω ÔV´Ël_ WÔµ

\]©A √u§B s√´\Vkm

gı| 1 2 3 4 5 6

WÔµ

\]©A 0·909 0·826 0·751 0·683 0·621 0·564

14

6.Rajan Ltd. supplies you the following balancesheets.

Liabilities20082009Assets20082009

ShareCapital21,00022,200Bank2,7002,340

Deben-Sundrytures3,6001,800Debtors4,4705,310

SundryStock inCreditors3,3183,792trade14,76012,810

Reserves3,0123,168Land6,0009,000

Good will3,0001,500

30,93030,96030,93030,960

Additional information:

(i)Dividends amounting to 1,050 werepaid during the year, 2009.

(ii)Land was purchased for 3,000.

(iii) 1,500 was written-off on Goodwillduring the year.

4

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(g)Ìo T> ºkÆ√V|,

(÷)Ìo ]≈Á\ ºkÆ√V|

g˛BkuÁ≈ Ô¬˛|Ô:

]‚¶ ºÂ´Dá 20 \ËÔ^

]‚¶ Ìo T>Dá ŒÚ \ˬz 5

cıÁ\BV™ cu√›]á 1,000 ∂ÈzÔ^

cıÁ\BV™ ºÂ´Dá 20,500 \ËÔ^

cıÁ\BV™ Ìo T>Dá ŒÚ \ˬz 4.80

9.ŒÚ WÆk™›][ W] º\ÈV·Ï ®[≈ xÁ≈l_

WÏkVÔ›]uz ˇµÔVbD ÷´ı| ]‚¶∫Ôπ_

∞º>–D Œ[Á≈ º>Ï° ÿƒF•D ÿ√VÚ‚|

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ÿ>ˆs¬Ô©√‚|^·m. ŒÀÿkVÚ ]‚¶›]uzD

1,00,000 g´D√ x>‹| º>Ák©√|˛≈m. gı|

º>VÆD ∂ÁkÔπ[ ÿ´V¬Ô c^k´° ∏[ kÚ\VÆ.

13

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(iv) Debentures of 1 ,800 wereredeemed during the course of the yearyou are required to prepare a cashflow statement.

7. From the following particulars, prepare a cashbudget for the period from August to October.

Month Credit Credit WagesSales Purchase

June 2,00,000 1,20,000 6,000

July 2,10,000 1,40,000 8,000

August 1,80,000 1,00,000 10,000

September 2,20,000 1,60,000 12,000

October 2,40,000 1,80,000 14,000

(i) Period of credit allowed by creditors2 months and to debtors 1 month.

(ii) Lag in payment of wages 1 month.

(iii) Estimated cash balance on 1st August 30,000.

5

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7. ˇµÔVbD sk´∫ÔπoÚÕm gÔ¸‚ x>_

∂¬º¶V√D \V>D xΩB c^· ÔVÈ›]uÔV™

ÿ´V¬Ô›]‚¶›Á> >BVˆ¬Ô°D.

\V>D Ô¶[ Ô¶[ Ìo

su√Á™ ÿÔV^x>_

h[ 2,00,000 1,20,000 6,000

hÁÈ 2,10,000 1,40,000 8,000

gÔ¸‚ 1,80,000 1,00,000 10,000

ÿƒ©¶D√Ï 2,20,000 1,60,000 12,000

∂¬º¶V√Ï 2,40,000 1,80,000 14,000

(∂) Ô¶ÃÕº>VÏ kw∫zD Ô¶[ kƒ] ÔVÈD

2 \V>∫Ô^ \uÆD, Ô¶™VπÔ”¬z ∂π¬zD

Ô¶[ kƒ] ÔVÈD 1 \V>D gzD.

(g) Ìo kw∫z>K¬ÔV™ ÔVÈ ÷Á¶ÿkπ 1 \V>D

gzD.

(÷) gÔ¸‚ x>_ º>]l_ c›º>ƒ ÿ´V¬Ô

ÁÔlÚ©A 30,000.

12

8.From the following data, calculate:

(i)Labour cost variance.

(ii)Labour rate variance.

(iii)Labour efficiency variance.

Standard time- 20 hours

Standard rate- 5 per hour

Actual production- 1,000 units

Actual hours- 20,500 hours

Actual rate per hour- 4·80.

9.The financial manager of the company has toadvise the board of directors on choosingbetween two compelling project proposalswhich require an equal investment of 1,00,000and are expected generate cash inflows asunder:

6

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kw∫˛•^·m:

ÿ√VÆ©AÔ^20082009ÿƒV›mÔ^20082009

√∫z x>_21,00022,200k∫˛

lÚ©A2,7002,340

Ô¶[√u√È

√›]´∫Ô^3,6001,800Ô¶™VπÔ^4,4705,310

√u√È

Ô¶ÃÕº>VÏ3,3183,792ƒ´¬˛Ú©A14,76012,810

ÔV©A3,0123,168WÈD6,0009,000

Âuÿ√BÏ3,0001,500

30,93030,96030,93030960

Ì|>_ sk´∫Ô^:

(∂)2009áD gı|¬z √∫ÔV>VBD 1,050

ÿƒK›>©√‚¶m.

(g) 3,000á¬z WÈD kV∫Ô©√‚¶m.

(÷)Âuÿ√BÏ ®ø] ¿¬Ô©√‚¶m 1,500.

(~)Ô¶[ √›]´∫Ô^ *‚A ÿƒFB©√‚¶m 1,800

ÿ´V¬Ô ‚¶ ∂§¬ÁÔÁB› >BVÏ ÿƒFÔ.

11

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Project-I Project-II

End of year 1 48,000 20,000

2 32,000 24,000

3 20,000 36,000

4 NIL 48,000

5 24,000 16,000

6 12,000 8,000

Which pro jec t proposa ls should berecommended using Net Present Value method?The company’s cost of capital is 10%. Thefollowing are the present value at 10% Discountfactor:

Year 1 2 3 4 5 6

PresentValue 0·909 0·826 0·751 0·683 0·621 0·564

7

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10.From the following particulars, calculate

(i)Current ratio.

(ii)Liquid ratio.

(iii)Proprietory ratio

and(iv)Debt - equity ratio.

Liabilities Assets

Equity shareLand andcapital5,00,000Buildings6,00,000

8% Preferenceshare capital2,00,000machinery5,00,000

9% Debentures4,00,000Stock in trade2,45,000

Reserves3,00,000Sundry Debtors2,00,000

Sundrycreditors2,00,000Cash and bank55,000

16,00,00016,00,000

89

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∂>[ Â[Á\Ô^ \uÆD, zÁ≈√V|Ô^ BVÁk.?

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