6
Total No. of Pages: 8
Register Number: 6444
Name of the Candidate:
M.Com. DEGREE EXAMINATION - 2013
(CO-OPERATIVE MANAGEMENT)
(first YEAR)
(paper – Iv)
540. ACCOUNTING FOR DECISION MAKING
(Common to M.Com. Marketing & Entrepreneurship)
(Old Regulation)
May) (Time: 3 Hours
Maximum: 100 Marks
SECTION - A
Answer any FIVE questions. (5 × 8 = 40)
2. / Draw up a Proforma Balance Sheet of a company showing all the major heads as per statutory order.
3. / Discuss the uses and limitations of financial statements.
4. / What is Fund Flow Statement? Explain its significance to management.
5. / Define the term cost volume profit analysis and explain how it is useful for managerial decision making.
6. / A company has fixed expenses of 90,000 with sales at 3.00,000 and a profit of
60,000 during the first half year. If in the next half year, the company suffered a loss of 30,000. Calculate.
(a) The P/V ratio, break even point and margin of safety for the first half year.
(b) Expected sales volume for next half year assuming that selling price and fixed
expenses remain unchanged.
(c) The break even point and margin of safety for the whole year.
7. / The Balance Sheet of S. Mitra as at 31-12-1995 shows the following:
- .
Cash / 9,500
Marketable securities / 15,000
Inventories / 1,00,000
Debtors / 85,000
Prepaid expenses / 5,000
Long-term loans / 1,06,000
Trade creditors / 64,000
Income Tax payable / 9,000
Accrued expenses / 12,800
You are asked to compute:
(i) Working capital (ii) Current Ratio (iii) Acid-Test ratio (or quick ratio).
8. / Cost sheet of a company provides the following particulars elements of cost on sales: Raw materials – 40% labour 10% and overheads 30%.
The following particulars are also available:
i) Raw-materials remain in stock for 6 weeks.
ii) Processing time 4 weeks.
iii) Finished goods are in stock for 5 weeks.
iv) Period of credit allowed to debtors – 10 weeks.
v) Lag in payment of wages – 2 weeks.
vi) Period of credit allowed by creditors – 4 weeks.
vii) Selling price 50 per unit.
viii) Production in units 13,000 p.a.
Prepare an estimate of working capital.
SECTION - B
Answer any THREE questions. (3 × 20 = 60)
10. / From the following Trial Balance of a trader, prepare the following and Profit and Loss A/c for the year ended 31st December 1993 and a Balance Sheet as on 31st December 1993 after taking into account the following:
Particulars / Dr.
/ Cr.
Capital of properties / -- / 35,000
Purchases / 65,000 / --
Sales / -- / 95,000
Drawings / 5,500 / --
Stock (1.1.1992) / 21,000 / --
Bank / -- / 12,100
Furniture / 7,300 / --
Creditors / -- / 17,900
Premises / 40,000 / --
Debtors / 9,000 / --
Rent / -- / 1,500
Sales Returns / 2,000 / --
Discount / -- / 200
Insurance / 1,000
Sundry expenses / 2,000 / --
Commission / 1,100 / --
Carriage inwards / 1,900
Bad debts / 400 / --
Carts and Vans / 5,000 / --
Cash / 500 / --
1,61,700 / 1,61,700
Closing stock was valued at Rs. 19,900. Write off 10% as depreciation on furniture, 5% on carts and vans and 3% on premises. Provide a reserve of 5% on debtors for bad and doubtful debts. Provide interest on capital at 5%.
11. / The following data have been extracted from the books of Sunshine Industries Ltd., for the year 2001:
Opening stock of Raw Materials / 25,000
Purchase of Raw material / 85,000
Closing Stock of Raw Material / 40,000
Carriage Inward / 5,000
Wages – Direct / 90,000
Wages – Indirect / 10,000
Rent - Factory / 5,000
- Office / 500
Depreciation
-- Plant and Machinery / 1,500
-- Office furniture / 100
Cash Discount / 5,000
Indirect Consumption of Material / 500
Salary – Office / 2,500
- Salesmen / 2,000
Other Factory expenses / 5,700
Other Office Expenses / 900
Manager’s Remuneration / 12,000
Bad Debts written off / 1,000
Advertisement expenses / 2,000
Travelling expenses of salesmen / 1,100
Carriage and Freight Outward / 1,000
Sales / 2,50,000
Advance Income-tax paid / 15,000
The manager has the overall charge of the company and his remuneration is to be allocated as 4,000 to the factory, 2,000 to the office and 6,000 to the selling operations.
From the above particular prepare a statement showing (a) prime Cost (b) Factory Cost, (c) Cost of Production (d) Cost of Sales and (e) Net Profit.
12. / The expenses budgeted for production of 10,000 Units in a factory are furnished below:
Materials / 70
Labour / 25
Variable Factory Overheads / 20
Fixed Factory Overheads
(. 1,00,000) /
10
Variable Expenses (Direct) / 5
Selling Expenses (10% fixed) / 13
Distribution Expenses (20% fixed) / 7
Administrative Expenses (Fixed 50,000) / 5
Total cost of sales per Unit / 155
You are required to prepare a budget for the production of 6,000 units and 8,000 units.
13. / There are projects M and N. Both of them require an investment of 1,00,000 each. The net cash inflows are estimated as under:
Year / M
/ N
1 / 10,000 / 30,000
2 / 40,000 / 50,000
3 / 30,000 / 80,000
4 / 60,000 / 40,000
5 / 90,000 / 60,000
The company’s targeted rate of return on investment is 12%. You are required to assess the projects on the basis of their present values, using NPV method.
Present values of Re. 1 at 12% interest for five years are given below:
1st Year: 0.893 and Year : 0.797; 3rd Year : 0.712 4th Year: 0.636; 5th Year 0.567.
jkpHhf;fk;
gFjp - m
vitnaDk; Ie;J tpdhf;fSf;F tpilaspf;ft[k; (5 × 8 = 40)
1. epjp epiyf; fzf;fpaiy nkyhz;ikf; fzf;fpaypypUe;eJ ntWgLj;Jf.
2. epWkr; rl;lg;go khjphp ,Ug;g[epiyf; Fwpg;igj; jiyg;g[fSld; tpsf;Ff.
3. epjp epiy mwpf;iffspd; gad;ghLfs; kw;Wk; FiwghLfis tpthp.
4. epj Xl;l mwpf;if vd;why; vd;d? nkyhz;ikapy; ,jd; Kf;fpaj;Jtj;ij tpthp.
5. mlf;ftpiy-bfhs;sst[-yhgk; Ma;t[ vd;why; vd;d? ,J vt;thW nkyhz;ikf;Fj; jPh;khd';fs; eph;zak; bra;tjw;F cjtp bra;fpd;wJ?
6. xU epWtdj;jpd; Kjy; miuahz;od; bryt[fs; - 9,000 tpw;gid - 3/00/000 kw;Wk; yhgk; 60/000 MFk;. me;epWtdj;jpw;F mLj;j miuahz;oy; 30/000 el;lkhdhy;
(m) Kjy; miuahz;od; yhg tpw;gid tpfpjk;/ yhg el;l rkepiyg;g[s;sp
kw;Wk; yhgg; ghJfhg;g[ Mfpatw;iwf; fz;lwpf.
(M) tpw;gid tpiy kw;Wk; epiyahd brytpy; ve;j khw;wKk; Vw;glhky;/
mLj;j miu Mz;ow;F vjph;ghh;f;fg;gLk; tpw;gid kjpg;igf; fz;lwpf.
(,) KG Mz;ow;fhd yhg el;l rkepiyg;g[s;sp kw;Wk; yhgg; ghJfhg;g[
Mfpatw;iwf; fz;lwpf.
7. r. kpj;uhtpd; 31.12.1995k; Mz;ow;fhd ,Ug;gha;tpypUe;J fPnH tpgu';fs; bfhLf;fg;gl;Ls;sJ.
buhf;fk; / 9,500re;ijaplf; Toa KjyPl;L Mtz';fs; / 15,000
ruf;fpUg;g[ / 1,00,000
fldhspfs; / 85,000
Kd;Tl;ona brYj;jpa brytpd';fs; / 5,000
ePz;l fhy flz;fs; / 1,06,000
fldPe;njhh;fs; / 64,000
brYj;Jjw;Fhpa tUkhzthp / 9,000
bfhLgl ntz;oa bryt[fs; / 12,800
fz;wpf:
(1) eilKiw _yjdk;.
(2) elg;g[ tpfpjk;
(3) ePh;ikj; jd;ik tpfpjk;.
8. xU epWtdj;jpd; mlf;f tpiyg;gl;oay; gpd;tUk; tpgu';fis mspf;fpwJ. mlf;ftpiyf; TWfs;: tpw;gidapd; - _yg;bghUs; - 40%/ Typ - 10% kw;Wk; nkw;bryt[fs; - 30%.
1. _yg; bghUs; 6 thu';fSf;F ,Ug;g[.
2. cw;gj;jpf;fhd fhyneuk; - 4 thu';fs;.
3. Koe;j ruf;F 5 thu';fSf;F ,Ug;ghf itf;fg;gl;Ls;sJ.
4. fldhspfSf;F 10 thu';fs; - fhyf;bfL tH';fg;gl;lJ.
5. Typ brYj;Jtjw;fhf tH';fg;gLk; fhy mtfhrk; - 2 thu';fs;.
6. fldPe;njhh; mspf;Fk; fhyf;bfL - 4 thu';fs;.
7. tpw;gid tpiy 50 xU myF.
8. cw;gj;jp myFfs; xU thuj;jpw;F - 13/000 eilKiw _yjdj;ijf; fzf;fpLf.
gFjp - M
vitnaDk; _d;W tpdhf;fSf;F tpilaspf;ft[k; (3 × 20 = 60)
9. nkyhz;ikf; fzf;fpaypd; gzpfs; kw;Wk; tuk;g[ vy;iyfisf; Fwpg;gpLf.
10. fPH;fz;l tpgu';fs; xU epWtzj;jhhpd; ,Ug;gha;tpy; ,Ue;J vLf;fg;gl;Ls;sJ. ePtPh; 31-ork;gh; 1993k; Mz;Lf;fhd tpahghu yhg el;lf; fzf;F kw;Wk; ,Wjpepiyf; Fwpg;igj; jahh; bra;f.
tpgu';fs; / Dr./ Cr.
KjyPL / -- / 35,000
bfhs;Kjy; / 65,000 / --
tpw;gid / -- / 95,000
vLg;g[ / 5,500 / --
tpgu';fs; / Dr.
/ Cr.
Ruf;fpUg;g[ (1.1.1992) / 21,000 / --
t';fp / -- / 12,100
miwfyd; / 7,300 / --
fldPe;njhh;fs; / -- / 17,900
fl;ol';fs; / 40,000 / --
fldhsh;fs; / 9,000 / --
Thlif / -- / 1,500
tpw;gidj; jpUg;gk; / 2,000 / --
js;Sgo / -- / 200
fhg;gPL / 1,000 / --
gw;gy bryt[fs; / 2,000 / --
juF / 1,100 / --
cs;nsw;w bryt[ / 1,900
thuhf;fld; / 400 / --
tz;o kw;Wk; thfd';fs; / 5,000 / --
buhf;fk; / 500 / --
1,61,700 / 1,61,700
,Wjp ,Ug;g[r;ruf;F 19/900-khf kjpg;gPL bra;ag;gl;Ls;sJ. 10% miwfyd;/ 5% tz;othfd';fs; kw;Wk; 3% fl;ol';fs; kPJ nja;khdk; vGJf. thuh kw;Wk; Iaf;fld;fSf;fhf 5% fhg;g[ Vw;gLj;Jf. KjyPL kPJ tl;o 5% tif bra;f.
11. fPH;fz;l tpgu';fs; rd;ird; epWtdj;jhhpd; 2001 Mk; Mz;ow;fhd fzf;FfspypUe;J vLf;fg;gl;Ls;sJ.
bjhlf;f _yg;bghUs; ,Ug;g[ / 25,000_yg;bghUs; bfhs;Kjy; / 85,000
,Wjp _yg;bghUs; ,Ug;g[ / 40,000
cs;nsw;wr; bryt[ / 5,000
neuof;Typ / 90,000
kiwKff;Typ / 10,000
thlif - bjhHpw;rhiy / 5,000
- mYtyfk; / 500
nja;khdk;
-- ,ae;jpuKk;/ jsthl';fSk; / 1,500
-- mYtyf miwfyd; / 100
buhf;fk; js;Sgo / 5,000
kiwKfkhfg; gad;gLj;jpa bghUl;fs; / 500
rk;gsk; - mYtyh; / 2,500
- tpw;gidahsh;fs; / 2,000
,ju bjhHpw;rhiyr; bryt[fs; / 5,700
,ju mYtyfr; bryt[fs; / 900
nkyhshpd; Cjpak; / 12,000
tuhf;fld; nghf;bfGJ / 1,000
tpsk;gur; bryt[fs; / 2,000
tpw;gizahshpd; nghf;Ftuj;J bryt[fs; / 1,100
Btsp J]f;Ff; Typa[k; kw;Wk; thlifa[k; / 1,000
tpw;gid / 2,50,000
Kd;Tl;ona brYj;jpa tUkhdthp / 15,000
epWtdj;jpd; midj;J eltof;iffSk; nkyhshplk; xg;gilf;fg;gl;Ls;sJ. mjdhy; mtUila Cjpaj;ij bjhHpw;rhiy nkyhz;ikf;F - 4/000/ mYtyf nkyhz;ikf;F - 2/000 kw;Wk; tpw;gid eltof;iffSf;F 6/000 vd;W gphpj;J bfhs;st[k;.
nkw;fz;l tpgu';fspypUe;J (m) gpujk mlf;f tpiy (M) bjhHpw;rhiy mlf;ftpiy (,) cw;gj;jp mlf;f tpiy (,) tpw;gid mlf;f tpiy (<) epfu yhgk; Mfpatw;iwf; fz;lwpf.
12. xU epWtdj;jpy; 10/000 myFfs; jahhpg;gjw;F cz;lhd bryt[fs; fPnH bfhLf;fg;gl;Ls;sd:
_yg;bghUs; / 70Typ / 25
khWgLk; bjhHpw;rhiy nkw;bryt[fs; / 20
epiyahd bjhHpw;rhiy nkw;bryt[fs; ( 1/00/000) / 10
khWgLk; bryt[fs; (neuoahf) / 5
tpw;gird; bryt[fs; (10% epiyahdJ) / 13
tpepnahfr; bryt[fs; (20% epiyahdJ) / 7
eph;thfr; bryt[fs; ( 50/000 epiyahdJ) / 5
bkhj;j tpw;gird; bryt[ xU myF / 155
13. M kw;Wk; N Mfpa ,uz;L jpl;l';fs; cs;sd. ,uz;L jpl;l';fSf;Fk;
1/00/000 tPjk; KjyPL njitg;gLfpwJ. epfu cs;tUk; buhf;fk; gpd;tUkhW vjph;ghh;f;fg;gLfpwJ.
/ N
1 / 10,000 / 30,000
2 / 40,000 / 50,000
3 / 30,000 / 80,000
4 / 60,000 / 40,000
5 / 90,000 / 60,000
epWtdj;jpd; KjyPLfs; kPjhd tUkhd tpfpjk; 12 % vd eph;zapf;fg;gLfpwJ. jw;nghija epfu kjpg;g[ Kiwg;go (NPV Method) ,uz;L jpl;l';fisa[k; kjpg;gPL bra;a ePtph; nfhug;gLfpwPh;.
12 tl;oapyhd xU %ghapd; Ie;J Mz;ow;fhd jw;nghija kjpg;g[ gpd;tUkhW.
Kjyhk; Mz;L kjpg;g[ 0.893
,uz;lhkhz;L kjpg;gp 0.797
_d;whkhz;L kjpg;g[ 0.712
ehd;fhkhz;L kjpg;g[ 0.636
Ie;jhkhz;L kjpg;g[ 0.567.
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