nu SM - 494 ViSemester B.Com. Examination, May/June 2018 (2016-17 and Onwards) (CBCS) (Fresh + Repeaters) COMMERCE Paper — 6.4 : Management Accounting Time : 3 Hours Max. Marks : 70 Instruction : Answers should be written completely in English or in Kannada. SECTION -A ‘Answer any 5 sub questions. Each sub-question carries 2 marks. (5x2=10) 1. a) Give the meaning of Management Accounting. b) Whatis Trend Analysis ? c) Mention two objectives of Management Reporting. d) Write any four components of current liabilities. e) What is a Cash Flow Statement 7 f) How do you calculate ‘Dividend Payout Ratio’ ? g) Give the meaning of working capital. SECTION -B Answer any three questions. Each question carries 6 marks. (3x6=18) 2. Briefly explain the advantages of Management Accounting. 3. Given: Current Ratio 1.4 Liquid Ratio 1 Stock turnover ratio (Closing stock) 8 Gross profit ratio 20% Sales for the year Rs. 10,00,000 From the above calculate working capital. PTO.SM- 494 2: SON 4, From the following prepare a Comparative Income Statement : Particulars 31-3-2017 —31-3-2018 Rs. Rs. Sales 21,50,000 25,00,000 Cost of goods sold 13,00,000 14,50,000 rattir ns Administrative expenses 2,10,000 1,80,000 Sellings Expenses 1,90,000 2,50,000 -operatin, Interest paid 1,40,000 1,20,000 Income tax 1,70,000 2,30,000 5. Prepare a schedule of changes in working capital from the following : Particulars 31-3-2017 —-31-3-2018 Rs. Rs. Bank Overdraft 8,000 = Creditors 40,000 45,000 Bills Payable 5,000 8,000 O/S Expenses 3,000 5,000 Debtors 20,000 40,000 Stock 15,000 25,000 Bills Receivable = 5,000 Cash in hand 1,000 8,000 Pre-paid Rent 2,000. 3,000‘ANE SM - 494 6. From the following details find out funds from Operation/Funds lost in operation : Particulars Rs, P and L Alc balance as on 1-4-2017 6,54,450 P and L A/c balance as on 31-3-2018 7,45,650 Depreciation on Plant and Machinery 47,740 Profit on Revaluation on Investments 34,430 Goodwill written off 25,070 Preliminary expenses written off 51,250 Provision for Tax 25,520 Proposed Dividend 52,250 Profit on sale of buildings 65,560 Dividend received 41,140 Interest on Investments 9,050 SECTION ~C Answer any three questions. Each question carries 14 marks. (3x14=42) 7. Following is the Balance Sheet of AB Ltd. as on 31% March 2018 : Liabilities Rs. Assets Rs. Equity Share Capital 5,00,000 Land and Buildings 9,00,000 8% preference share capital 4,00,000 Plant and Machinery 8,00,000 Reserves and surplus 4,00,000 Closing stock 3,00,000 9% Debentures 6,00,000 Debtors 2,00,000 Current liabilities 4,00,000 Bank 90,000 Prepaid expenses 10,000 23,00,000 23,00,000nal Information : Sales during the year Rs. 8,00,000, Cost of goods sold Rs. 6,00,000, Administrative expenses Rs. 1,12,000, Commission and Discount earned Rs. 12,000, loss on sale of machinery Rs. 34,000, profit on sale of building Rs. 54,000. You are required to calculate : Current Ratio Liquid Ratio Stock Turn over Ratio a) } b) °) d) Gross Profit Ratio Operating Cost Ratio f) Net Profit Ratio g) Debt — Equity Ratio h) Solvency Ratio i e) Proprietary Ratio. 8. From the following Balance Sheets of Gowri Co. Ltd, prepare : i) Statement of changes in working capital and ii) Fund flow statement. Liabilities 313.2017 31-3.2018 Assets Share Capital 4,00,000 5,00,000 Land and General Buildings Reserve 80,000 1,40,000 Machinery PandL A/c 64,000 78,000 Stock Bank loan Debtors (longterm) 3,20,000 80,000 Bank | Creditors 3,00,000 2,860,000 Provision for taxation 60,000 80,000 12,24,000 11,38,000 31-3-2017 4,00,000 3,60,000 2,00,000 1,60,000 1,04,000 12,24,000 3-3-2018 4,80,000 2,60,000 2,52,000 1,28,000 18,000 11,38,000COT OE cS SM-494 Additional Information : 1) During the year 1-3-2018 dividend of Rs. 84,000 was paid. 2) Assets of another company were purchased for a consideration of Rs. 1,00,000 payable by the issue of shares and the assets include land and Buildings Rs. 50,000 and stock Rs. 50,000. 3) Income tax paid during the year Rs. 70,000. 4) Depreciation written off Machinery Rs. 24,000 and Land and Building Rs. 45,000. 9. From the following Balance Sheets of A Ltd, and B Ltd. as on 1-3-2018, you are required to prepare a common size Balance Sheet and comment. Assets A. Ltd. B. Ltd. Rs. Rs. Land and Building 9,00,000 4,40,000 Machinery 7,00,000 5,00,000 Investments 1,00,000 60,000 Debtors 3,40,000 2,80,000 Cash and Bank 1,10,000 40,000 Prepaid Expenses 60,000 28,000 22,10,000 13,48,000 Liabilities A. Ltd. B. Ltd. Equity share capital 6,50,000 3,60,000 Preference share capital 3,00,000 2,00,000 Reserves and surplus 2,50,000 2,40,000 Long term loans 9,00,000 5,00,000 Bills payable 60,000 30,000 Ols expenses 10,000 4,000 Creditors 40,000 14,000 22,10,000 13,48,000SM ~ 494 6 {ANU 10. State with reasons whether the following transactions result in increase or decrease of working capital or do not affect the working capital a) A company issued Debenture for Rs. 2,00,000. b) Creditors took over investments Rs. 17,500. ©) Stock Rs. 10,000 was sold for Rs. 15,000. qd) e) Income tax paid Rs. 25,000. Underwriting commission paid Rs. 6,000. Machinery purchased by issue of Equity Shares for Rs. 60,000. Investment Rs. 50,000 were sold for Rs. 15,000 (Assumed Investments are long term) hh) Rs. 40,000 was transferred from P and L A/c to General Reserve. Creditors Account for Rs. 40,000 were settled at 5% discount, 9) Amount paid for Insurance Rs. 7,000 includes Rs, 1,500 pre-paid insurance. . Following are the summerised Balance Sheets of a Company as on 31-3-2017 and 31-3-2018. Liabilities 31-3-2017 1-3-2018 Rs. Rs. Share capital 40,000 50,000 General Reserve 10,000 12,000 Profit and Loss A/c 6,000 6,000 Long Term loan 14,000 - Sundry Creditors 30,000 27,000 Provision for tax 6,000 7,000 Total 1,06,000 1,02,000‘000000 7 ‘SM -494 Assets : Land and Buildings 40,000 38,000 Machinery 30,000 33,800 Debtors 16,000 12,800. Stock 17,000 14,800 Cash 3,000 1,600 Goodwill = 1,000 1,06,000 1,02,000 Additional Information : a) b) Dividend of Rs.4,600 was paid. Assets of another company purchased were Machinery Rs. 5,000, Stock Rs. 4,000 and Goodwill Rs. 1,000 by issuing Equity shares. ) Machinery was further purchased for cash Rs. 1,600. dq) Depreciation written off machinery Rs. 2,400. e) Income tax provided during the year Rs. 7,000. f) Loss on sale of machinery Rs. 400 was written off. Prepare Cash Flow Statement as per AS — 3 (Indirect method). ep egy aypnr- a cinacncide 5 cus délen eugoa. 33 G8A2 veered. (6x2=10) 1. a) dere Sezex, aoridest ? b) Bag deeaiss aocdea 9 ¢) ddram adamodsob aingymade ada cnorfesinday wdon0.