THE NEW cOLLEGE (AUTONOMOUS)

CHENNAI-600 014
A
20BKM614 Management Accounting
Maximum Marks: 75 April 2024 Duration: 3 Hours

Section -A Answer Any Five Questions (5 X6= 30 Marks)

1. What do you mean by capital budgeting?

2. What is Margin of Safety?
3. From the following data you are required to prepare cash from operation:
Funds from operation for the year 2020 was Rs.84,000. Current Assets and Liabilities as
on 01 -01 - 2020 and 31 - 12 - 2020 were as follows:
Particulars 01-01 - 2020(Rs.) 31-12-2020 (Rs.)
Trade Creditors 1,82,000 1,94,000
Trade Debtors 2,75,000 3,15,000
Bills Receivable 40,000 35,000

|BillsPayable 27,000 31,000

Inventories 1,85,000 1,70,000

Trade Investments 40,000 70,000

Outstanding Expenses 20,000 25,000

Prepaid Expenses 5,000 8,000

4. You are required to prepareaproduction budget for the half year ending June 2022 from
the following information:
Budgeted Sales Actual Stock as on Actual Stock as on
Product
Quantity (Units) 31-12 - 2021 (units) 30-06- 2022 (nits)

20,000 4,000 5,000

T 50,000 6,000 10,000
5. The following information is obtained from XY and Co. for 2006:

Sales Rs. 20,000

Variable costs Rs. 10,000
Fixed costs Rs. 6,000
(a) Find P/V Ratio
(b) Break even point and
(c) Margin of safety at the current sales level.
6. Anil enterprises presents the following income statement and request you to calculate ()
Operating Profit Ratio, (b) Gross Profit Ratio, (c) Net Profit Ratio
Page 1 of 4
 Income Statement
Particulars Amount (Rs) Amount (Rs)
Sales 8,60,000
Less: Sales Returns 60,000
Net Sales 8,00,000
Less: Cost of Goods Sold 3,50,000
Gross Profit 4,50,000
Add: Non-Operating Incomes:
Profit on Sale of Investment 30,000
Income from Investment 20,000 50,000
5,00,000
Less: Operating Expenses
Administration Expenses 40,000
SellingExpenses 60,000
Distribution Expenses 20,000
Non-Operating Expenses
Finance Expenses 30,000
Loss on Sale of Plant 20,000
Provision for Income Tax 30,000 2,00,000
Net Profit 3,00,000
7. The following are the income statements of Jeevan Ltd. for the year ending 31*
December, 2021 and 2022. You are required to prepare a Comparative Income Statement
for the two years:
Particulars 31-12-2021 (Rs.) 31-12 -2022 (Rs.)
Net Sales 10,00,000 12,00,000
Cost of Goods Sold 5,50,000 6,05,000
Operating Expenses
Administration 80,000 1,00,000
Selling 60,000 80,000
Non-Operating Expenses
Interest 40,000 50,000
Income Tax 50,000 80,000
829/1226
8. Calculate Funds from Operation from the following Profit and Loss A/
PROFIT & LOSS ACCOUNT
Particulars Amount (Rs.) Particulars Amount (Rs.)
To Expenses Paid 3,00,000 By Gross Profit 4,50,000
To Depreciation 70,000 By Gain on Sale of Land 60,000
To Loss on Sale of Machine 4,000
To Discount 200
|To Goodwill 20,000
|To Net Profit 1,15,800
5,10,000 5,10,000

Page 2 of 4
Section -B Answer Any Three Questions (3 X 15 = 45 Marks)

9. Explain Pay Back Period Method. Write its advantages and disadvantages.
10. Given below is the summarised Balance Sheet and Profit & Loss A/c of Rajalaxmi Sugar
Mills Ltd. as on 31 - 12-2022. You are required to calculate.
(a) Current Ratio
(b) Debt Equity Ratio
(c) Stock Turnover Ratio
(d) Debtor Turnover Ratio
(e) Net Profit Ratio
() Operating Ratio
(g) Gross Profit Ratio
BALANCE SHEET AS ON 31- 12- 2022
Liabilities Amount (Rs.) Assets Amount (Rs.)

Issued Capital
40,000 Shares of Rs.100 each 40,00,000Land &Building 30,00,000
Reserves 18,00,000 Plant &Machinery 16,00,000
Creditors 26,00,000 Stock 29,60,000
Profit & Loss a/c 6,00,000 Debtors 14,20,000
6% Debentures 6,00,000Cash at Bank 6,20,000
96,00,000 96,00,000
PROFIT & LOSS A/C FOR THE YEAR ENDED 31-13- 2022
Amount Amount
Particulars Particulars
(Rs.) (Rs.)
To Opening Stock 19,90,000 By Sales 1,70,00,000
To Purchases 1,09,05,000 By Closing Stock 29,80,000
To Direct Expenses 2,85,000
To Gross Profit 68,00,000
1,99,80,000 1,99,80,000
To Administrative Expenses 30,00,000By Gross Profit 68,00,000
To Selling Expenses 6,00,000 By Non-Operating Income 1,80,000
To Financial Expenses 3,00,000
To Other Non -Operating Exp 80,000
To Net Profit 30,00,000
69,80,000 69,80,000
11. Malar Ltd. furnishes the following Balance Sheet for the years ending 31-12-2022 and 31
12-2023. You are required to prepare a Cash Flow Statement for the year ended 31-12
2023
 BALANCE SHEETS OF MALAR LTD
As On As On As On As On
Liabilities 31-12-22 31-12-23 Assets 31-12-22 31-12-23
(Rs.) (Rs.) (Rs.) (Rs.)

Equity Share Capital 20,000 20,000 Goodwill 2,400 2,400

General Reserve 2,800 3,600 Land 8,000 7,200
Profit & Loss a/c 3,200 2,600 Building 7,400 7,200
Sundry Creditors 1,600 1,080 Investments 2,000 2,200
Outstanding Expenses 240 160 Inventories 6,000 4,680
Provision for Tax 3,200
Accounts
3,600 4,000 4,440
Receivable
Provision for Bad Bank
80 120 1,320
Debts 3,040
Balance
TOTAL 31,120 31,160 TOTAL 31,120 31,160
The further information is given:
(i) A piece of land has also been sold for Rs.800
(ii)Depreciation amounting to Rs.1,400 has been charged on building
(iii) A tax provision of Rs.3,800 has been made during the year
12. Kunal Products produces and sells a product for which total capacity of 2,000 units
exists. The following expenses are the production of 1,000 units of the product which is
sold at Rs.130 per unit
PER UNIT
PARTICULARS
AMOUNT (RS.)
Direct Materials 20
831/1226
Direct Wages 30
Administration Overheads (Constant) 20
|Selling Expenses (50% Fixed)
Distribution Expenses (25% Fixed) 20
TOTAL 100
You are required to prepare a flexible budget for the production and sale of 1,200 Units,
1,600 Units and 2,000 Units, showing clearly Marginal (Variable) Cost and Total Cost at
each level.

13. From the following information, calculate

(a) Break- Even Point
(b) Number of units that must be sold to earn a profit of Rs. 60,000 per year
(c) Number of units that must be sold to earna net income of 10% on Sales
Sales Price Rs. 20 per unit
Variable Cost Rs. 14 per unit
Fixed Cost Rs. 79,200
Page 4 of 4
 THE NEW COLLEGE (AUTONOMOUS) A
CHENNA- 600 014
20BKM615 Income Tax Law & Practice - II
Maximum Marks: 75 April 2024 Duration: 3 Hours

Section -A Answer Any Five Questions (5X6= 30 Marks)

1. What are the ircumstances in which income of other person is included in the total
income of an assessee?
2. Explain the various assets which are not incduded in capital assets.
3. From the following details, compute the taxable income from business. Profit before
adjusting the following items Rs.7,00,000. Trade Expenses Rs.5,000. Establishment
charges Rs.10,000. Household expenses Rs.2,000. Discount allowed Rs.1,000. Income
Tax Rs.700. Provision for bad debts Rs.1,000. Donation to National Defence Fund
Rs.1,000, Audit Fees Rs.200.
4. Mt. R provides the following data regarding his transaction for the sale of his
residential house for the A.Y. 2023-24. Compute the amount of capital gain for the A.Y.
2023-24. House purchased in 2003-04 Rs.4,36,000; Sold in November 2022 Rs. 95,00,000;
Purchased another house in December 2022 Rs.3,00,000; Mr. R acquires another house
in January 2022 Rs.4,00,000. The CII for 2003-04, 2021-22 and 2022-23 was 109 & 317 and
331 respectively.
5. From the following investments and other income of Mr. Akilesh, compute income
from other sources.
1 Winnings received from Sikkim lottery Rs 70000
2 Winnings from horse races Rs 2000
3 Winnings from cross word puzzles Rs 4000
4 Dividend received Rs 10000 from an Indian Company
5 Dividend from co-operative society Rs 5000
6 Directors fees receivedR 4000
7 Royalty income by writing books Rs 40000 (Expenses allowed Rs 4000)
8 Family Pension received Rs 36000
6 (A) Calculate the Total Income of Mr. Suresh from the following.
House property Loss 20,000 ncome from other source 25,000
Short term capital gain 25,000 Long term capital loss 10,000
(B)Calculate the total income from business of Raju for the assessment year2014-15
Profit from 'A' Business 5,00,000 Loss from "B' Business 1,00,000
Loss profession C" 1,50,000 Profit from speculation
Business 'D' 2,00,000
Loss from speculation Business 3,00,000
'E'
7. Mr. Nerekar's previous year Gross Total Income is Rs.4,50,000. He has made the
following donations. Calculate his Net Income. Jawaharlal Nehru Memorial Fund
Rs.12,000; Rajiv Gandhi Foundation Rs.8,000; Africa Fund Rs.15,000; Indira Gandhi
Page 1 of 3
 Memorial Fund Rs, 14,000.
Compute the amount of deduction admissible u/s 80G for the assessment year 2023-24.
8. Profit & Loss account of Mr. Sukumar is as follows:
Particulars Rs. Particulars Rs.
To General Expenses 13,400 By Gross Profit 3,00,000
To Bad debts 22,000 By Commission 40,000
To Salary to Staff 26,000| By Bad Debts
Salary to Sukumar 45,000 (Earlier disallowed) 11,000
Interest to over draft 4,000
Interest on own capital 23,000
|To Net profit 2,17,600
3,51,000 3,51,000
Compute Income from business.
Section -B Answer Any Three Questions (3 X 15 = 45 Marks)

9. Explain the admissible deductions under profit and gains of business or

professions.
10. Mr. X provides the following information regarding his ransaction for the sale of
residential house during the assessment year 2023-2024:

House purchased in 1988 for 1,50,000

Fair market value on 01-04-2001 (C.I.I. : 100) 6,20,000
Sold in Oct. 2022 (C.LI.:331)
28,00,000
Amount invested in purchase of another house in April 2022 7,00,000
Compute the amount of taxable Capital Gain.
11. The following are particulars of income of Mr Bell for the Assessment Year
2023-2024.
|Particulars
Amount (Rs)
Income House Property 70000
Business Income
60000
Dividend from a co operative Society 500
Long Term Capital Gain- Land 1000
Long term Capital Gain -Listed Shares 8000
LIC Premium paid on his own life on a policy of 20000
Rs 2000000

Donation given to approved charitable Institution 20000

Interest accrued on NSC purchased in Nov 2019 2,260
for Rs 30,000
|Deposited in an equity linked saving scheme 20000
notified u/s 80 C
Deposited in National Saving Scheme 1992 12500

Compute Taxable Income for the previous Year 2022-23.

12. From the following investments arnd other income of Mr. Akilesh, compute income
from other sources.
1 Winnings received from Sikkim lottery Rs 70000
2 Winnings from horse races Rs 2000
3 Winnings from cross word puzzles Rs 4000
4 Dividend received Rs 10000 from an Indian Company
5Dividend from co-operative society Rs 5000
6 Director's fees received R4000
7 Royalty income by writing books Rs 40000 (Expenses allowed Rs 4000)
8Family Pension received Rs 36000
Residential House Property taken on rent Rs 1,000 p.m. half of which is
sublet for Rs 1200 p.m.
10 Daily Allowances as M.P. Rs 15,000
11 Salary as M.P. Rs 36,000
Salary for part time job with a firm Rs 21,000
13 Received cash gift from sister Rs55,000; from Friend Rs 27,000; from
another friend Rs 29,000
13. From the following particulars compute the total income of Mr. D for the assessment
year 2023- 2024

Particulars Amount (Rs)|

Income From Salary (Computed) 68,000
Income from House A 36,000
Loss from House B 24,000
Loss from House C 22,000
Profit from Business A 60,000
Profit from Business B 70,000
Profit from share business (Speculative) 82,000
Loss from share business (Speculative) 94,000
Long term capital gain of shares on which transaction tax was Paid 22,000
Short term capital loss on sale of land 44,000
Income from card games 22,000
Winning from lotteriestgross) 60,000
Loss from horse races in Barngalore 21,000
Income from horse races in Delhi (gross) 40,000

Page 3 of 3
 THE NEW CoLLEGE (AUTONOMOUS) A
CHENNI-600 014
20BKM616 Goods and Services Tax
Maximum Marks: 75 April2024 Duration: 3 Hours

Section -A Answer AIl Questions (10 X2 = 20 Marks)

1. Write a short note on Direct Tax.

2. List two examples of Indirect Tax.

3. Write short notes on IGST.

4. List the taxes subsumed with GST

5. Write short note on Input Tax Credit.

6. What is Reverse Charge?
7. Write short notes on CPIN.

8. Write short notes on GST Audit.

9. What do you mean by infringement.

10. What is Customs Duty?
Section-B Answer Any Five Questions (5 X5= 25 Marks)

11. Differentiate Direct and Indirect Taxes.

12. Explain the types of GST in India

13. Explain the provisions relating to composition scheme of GST.
14. Elucidate the provisions relating to TDS under GST Act.
15. Explain the objectives of Customs Act.
16. Summarise the contents of Tax invoice under GST Act.
17. Explain the scope and coverage under GST.
18. Explain the import procedure under the Customs Act.
Section -C Answer Any Three Questions (3 X 10 = 30 Marks)

19. Enumerate the advantages and disadvantages of Indirect taxes.

20. Describe the advantages of GST.
21. Elucidate the provisions related to eligibility of ITC and the Goods and Services on which it

is exempted.
22. Explain the provisions relating to the payment of GST.
23. Explain the procedure for claiming duty drawback.
 THE NEW COLLEGE (AUTONOMOUS) A
CHENNAI- 600 014
20BKM618 Commodities Market
Maximum Marks: 75 April 2024 Duration: 3 Hours

Section -A Answer Al Questions (10 X 2=20 Marks)

1. What you mean by commodity market?

2. What do you mean by Commodity?
3. State the meaning of derivatives market.
4. What is forward contract?

5. What you mean by expected spot price?

6. What is the concept of convergence?
7. What is hedging in simple words?
8. Write short note on arbitrage.
9. What is SEBI?

10. What do you mean by trading mechanism?

Answer Any Five Questions (5X5= 25 Marks)

Section -B

11. Bring out the features of commodity market in India.

12, Explain the major commodity exchanges in India?
13. Distinguish between forwards and futures.

14. Examine the different types of derivatives markets.

15. Point out the factors determining the price of future contracts.

16. Write a note on perfect and imperfect hedge.

17. Explain features of speculation.
18, Discuss the different types of clearing mechanism.

Section -C Answer Any Three Questions (3X 10 = 30 Marks)

19, Explain the various participants in the commodities market.

20. Analysis the advantages and disadvantages of derivatives market.
21. Discuss the specifications of futures contract.

22. Distinguish between arbitrage and speculation.

23. Enumerate the major functions of SEBI.