Management Accounting Assignment - 1: Q-3 Prepare The Following Statements From The Balance Sheet of Y Ltd. As On 31
Management Accounting Assignment - 1: Q-3 Prepare The Following Statements From The Balance Sheet of Y Ltd. As On 31
Assignment -1
Q-1 What is management accounting? Discuss the various tools and techniques of
management accounting
Q-2 “Management accounting is presentation of accounting information in such a way so as
to assist the management in creation of policy and in day to day operation of an undertaking”
Elucidate this statement.
Q-3 Prepare the following statements from the balance sheet of Y Ltd. as on 31st
December, 2014 and 2015. You are required to prepare:
Additional Information
Q-4 From the following information you are required to prepare Balance Sheet.
Current Ratio 1.75
Liquid Ratio 1.25
Stock turnover Ratio(cost of sales/closing stock) 9
Gross profit ratio 25%
Debt collection period 1.5 months
Reserves and surplus to capital 0.2
Fixed asset turnover(cost of sales/fixed asset) 1.2
Capital gearing ratio(long term debt to equity capital) 0.6
Fixed asset to net worth 1.25
Sales during the year 12,00,000
Assignment -2
Q-1 From the following data calculate all the material variances:
Q-2 With the following data of 60% activity, prepare budget for production oat
80% capacity
Q-3 A company annually manufactures 10,000 units of a product at a cost of Rs.4 per unit
and there is home market for consuming the entire volume of production at a sale price of
Rs.4.25 per unit. In the year 2009 there is fall in demand which can consume 10,000 units
only at sale price of Rs.3.72 per unit.
The analysis of cost per 10,000 unit is:
Materials Rs 15,000
Wages Rs 11,000
Fixed overheads Rs. 8,000
Variable overheads Rs. 6,000
The foreign market is explored and it is found that this market can consume 20,000 units
of product if offered at a sale price of Rs. 3.55 per unit. It is also discovered that for
additional 20,000 units to be sold at foreign market fixed cost will increase by 20%. Is it
worthwhile to try to capture the foreign market.
Q-4 What do you mean by marginal costing .Discuss its various applications