M.B.A (Financial Management) Degree Examination, 2011

M.B.A (Financial Management) Degree Examination, 2011

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M.B.A (FINANCIAL MANAGEMENT) DEGREE EXAMINATION, 2011

(FIRST YEAR)

(PAPER-V)

150. FINANCIAL AND MANAGEMENT ACCOUNTING

Dec.) (Time: 3 Hours

Maximum: 75 Marks

SECTION-A (5×3=15)

Answer any FIVEquestions

All questions carry equal marks

  1. Discuss the role management accounting in modern era.
  2. State the importance of Ratios.
  3. List out the limitations of cash flow statements.
  4. Discuss the features of Balance sheet.
  5. Briefly discuss the applications of marginal costing.
  6. Distinguish fixed and flexible Budget.
  7. Explain the different levels of management reports.

SECTION-B (3×10=30)

Answer any THREE questions

All questions carry equal marks

  1. Explain the role and functions of a management accountant.
  1. Enumerate the merits and demerits of capital Budgeting techniques.
  1. Explain the major tools of financial statement.
  1. Explain in detail how to prepare fund flow statement.
  1. Explain the basic requisites of a good report.

SECTION-C (1×15=15)

Answer any ONE question

  1. Describe the various functional Budgets.
  1. The following information has been obtained from the accounts section of a store having three departments.

Departments
Q / R / S
Rs / Rs. / Rs.
Sales / 50,000 / 75,000 / 1,25,000
Marginal costs / 45,000 / 50,000 / 75,000
Fixed costs
(app on the basis of sales) / 10,000 / 15,000 / 25,000
Total costs / 55,000 / 65,000 / 1,00,000
Profit(loss) / (5,000) / 10,000 / 25,000

2

On the basis of the above information management wants to discard department Q immediately as it shows a loss. Also it requests you to give your opinion on the comparative profitability of different departments if specific fixed costs are ascertained to be Rs.2,000 for department Q: Rs. 28,000 for department R; and Rs. 15,000 for department S: the remaining Rs. 5,000 being general fixed costs.

  1. The following details are available from a company.

Liabilities / 31.12.85 / 31.12.86 / Assets / 31.12.85 / 31.12.86
Rs. / Rs. / Rs. / Rs.
Share Capital / 70,000 / 74,000 / Cash / 9,000 / 7,800
Debentures / 12,000 / 6,000 / Debtors / 14,900 / 17,700
Reserve for doubtful debts / 700 / 800 / Stock / 49,200 / 42,700
Trade creditors / 10,360 / 11,840 / Land / 20,000 / 30,000
P&L A/C / 10,040 / 10,560 / Good will / 10,000 / 5,000
1,03,100 / 1,03,200 / 1,03,100 / 1,03,200

a)Dividend paid- Rs. 3,500

b)Land was purchased for Rs.10,000

c)Amount provided for amortization of goodwill Rs. 5000

d)Debentures paid off Rs. 6,000

Prepare cash flow statement

SECTION-D (1×15=15)

(Compulsory)

  1. A Perform cost sheet of a company provides the following data

Costs (per unit) / Rs.
Raw materials / 52.0
Direct labour / 19.5
Overheads / 39.0
Total cost (per unit) / 110.5
Profit / 19.5
Selling price / 130.0

The following is the additional information available.

Average raw materials in stock / One month
Average materials in process / Half month
Credit allowed by suppliers / One month
Credit allowed to debtors / Two months
Time lag in payment of wages overheads / One and a half weeks
Overheads / One month

One forth of sales are on cash basis.

Cash Balance is expected to be Rs. 1,20,000

You are required to prepare a statement showing the working capital needed to finance a level of activity of 70,000 units of output. You may assume that production is carried on evenly throughout the year and wages and overheads accure similarly.

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