(OV 14524 Reg. No. V Semester B.B.A. Degree Examination, March - 2021 BUSINESS ADMINISTRATION : Management Accounting CBCS (F) (2018 Batch Only) Paper : 5.4 Time : 3 Hours Maximum Marks : 70 Instructions to Candidates: 2. 3. 4. Answer should written in English only. SECTION-A Answer any Five of the following sub-questions. Each sub-questions carries Two marks. (5*2=10) a) Define Management Accounting. b) What do youmean by operating profit? c) Giveany two advantages of Ratio Analy 4) State any two differences between Fund Flow statement & Cash Flow statement. ©) Write any 4 components of current assets. £) Mention any 4 types of profitability Ratios. 2) Whatis meant by Budgetary control? SECTION-B Answer any Three of the following. Fach questions carries Six marks. (3x6=18) Differentiate between cost Accounting and Management Accounting. What is meant by Fund flow statement? What are the uses of preparing fiand flow statement? ‘The following are the sales and profit for two periods are given below you are required to find out a) PWRatio b) BEP Sales for 2019 : Rs.8,00,000 and for 2020 : Rs.10,00,000 Profit for 2019 : Rs.40,000 and for 2020 : Rs.1,00,000 [eT.O.‘A @ 14524 3. From the following details calculate funds from operations as on 31/12/2020. ‘The current year’s profit of Sharada Ltd is Rs.80,000, after in corporating the following. Depreciation Rs.45,000 Goodwill written off Rs.12,000 Loss on sale of furniture Rs.5,000 Profit on sale of Investment Rs.15,000 ‘Tax Provision Rs.35,000 Dividend paid Rs.40,000 Preliminary expenses Rs.5,000 Transfer to General Reserve Rs.25,000 Draw up a flexible budget for overhead expenses on the bi Determine the over head rate at 70% & 90% capacity. Overheads at the capacity level of 80% is given below. of the following data, —e] : | lindirect labour | 9,00,000 | ‘Stores including Spares 3,00,000 | |Semi - variable Over heads: (ower - (30% Fixed, 70% Variable) 15,00,000 Repairs - (60% Fixed, 40% Variable) 1,350,000 \Eixed overheads [Depreciation | 8,25,000 Insurance 2.254000 [Salary a a ae 004 SECTION-C Answer any Three of the following. Each question carries 14 marks. (@x14=42) Current Ratic aF Liquidity Ratio= 1.5 Stock tumover Ratio = 6 Fixed asset to networth = 1.1 Reserves to share capital = 0.5:1 ‘Net working capital = Rs.3,00,000 Gross Profit Ratio = 20% 2 Fixed assets turnover Rati Average debt collection period = 2 months: From the above details draw up a balance sheet.0A 8) 14524 8. The cost ofan article ata capacity level of 5,000 units is as under. Prepare. flexible budget from the following informations at production level of 4,000 units é 6,000 units, also calculate CPU for all the levels. 25,000 15,000 | Power 1,250 Repair & Maintenance 2,000 Stores 1,000 | | Inspection 500 | Depreciation 10,000 Administration Overhead : 5,000 Selling Overhead 3,000 Total 22750 9. The following data are available from the records of a company. Sales Rs.60,000 Variable cost Rs.30,000 Fixed cost —_Rs.15,000 Calculate: a) P/v Ratio, Break even point and Margin of safety: at this level b) Calculate the effect of 10% increase in sale price. c) Calculate the effect of 10% decrease in sale price. 10. The following are the summarised Balance sheet ofa company as on 31st December 2019 & 2020. [Liabilities Tee 2019 | 202 ~ 2019, ~ 2020) Share capital 00,000 | 1,00,000) 95,000, General Reserve 25,000 30,000 | Machinery |> 75.000 85,500) Profit & Loss a/e 15.250 | 15,300 | Stock | 50,000 37,000) [Bank Loan (longterm) | 35,000 | >| Sundry debtors | 40,000/ 32,100) ‘Sundry creditoés | 75,00 | 67,600 | Cash | 250, 300) Provision for taxation 15,000 | 17,500 | Bank | -| 4,000 Prepaid Expenses} -| 0 |__ Total ([2,65,250 2 35a00" Total | 2,65,250) 2,55,400 IP-T.O.AEA “@ 14524 a Additional Informations: During the year ended December 31* - 2020: a) Dividend of Rs.11,500 was paid. © b) Assets of another company were purchased fora consideration of Rs.25,000. Payable in shares, the following assets were purchased stock Rs.10,000 and Machinary Rs.15.000. ¢)” Machinery was further purchased for Rs.4,000. 4) Depreciation written offan machinery Rs.6,000. ©) Income tax Provided during the year Rs. 16,500. £) Loss on Sale of Machinery Rs.100 was written off to General Reserve. You are required to prepare a cash flow statement. Following is the Balance sheet of M/s Manu & Sons for the year Ending 31st March 2018 & 2019. Prepare. d flow statement. | Rs. Rs. | Assets | ; Equity Shares |10.00,000 /10,00,000 | Goodwill |Reserves & Surplus | 14,000 | 18,000 / Buildings | 77,000 | 72,000 [Profit & Loss A/e 16,000 | 3.000 | Investments! 9,10,000 | 9,03,000 Sundry creditors 8,000 | 5,400 | Stock ——|-32,000| 26,000) Bills Payable 1,200/ + 800 | Debtors 18,000 | 19.000 Pro" ion for taxation | 16,000 18,000 | Cash | 6,600, | 15,800) jprovisionfordoubtul debts | ___400 600 | | | | Total 10,55,600 |10,45,800 | Total 10,55,600 10,45, 800 “Additional Information: a) Depreciation provided during the year on Building is Rs.8,000 b) Provision for taxation Rs.19,000 was made during the year ©) _ Interim in dividend paid Rs.8,000