Sub Code: 11 UBA

6413

Jamal Mohamed College

Department of Business Administration
Management Accounting
Assignment 1
Answer any three of the following:
1. Prepare a common size income statement from the following.
(Rs. In 000)
Particulars
Sales
Miscellaneous income
Total
Expenses
Cost of sales
Office expenses
Selling expenses
Interest

2014
500
20
520

2015
700
15
715

325
20
30
25
400

510
25
45
30
610

120
520

105
715

Expenses Total
Net Profit
Total

2. Explain the Objective and Scope of Management Accounting.

3. From the following figures relate to the trading activities of a
company for the year ended 31.12.2015.
Particulars
Sales
Purchase
Closing Stock
Sales return
Dividend received
Profit on sale of fixed
assets
Loss on sale of shares
Opening Stock

Rs.
10000
0
70000
14000
4000
1200
600

Particulars
Salary of salesman

Rs.
1800

Advertising
Travelling Expenses
Salaries office
Rent
Stationary

700
500
3000
6000
200

300
11000

Depreciation
Other expenses
Provision for tax

1000
2000
7000

You are required to calculate

a) Gross profit ratio.

b) Operating profit ratio.
c) Operating ratio.
d) Net Profit ratio.
4. Examine the factors determining working capital requirements.
5. From the summarised balance sheets of X ltd., prepare a statement
of sources and uses of funds.
Liabilities

2014
Rs.
Share Capital
9000
0
Bank Loan
1190
00
Current Liabilities 4600
0

2015
Rs.
9000
0
2100
00
4800
0

Assets

2014 2015
Rs.
Rs.
15500 1560
0
00

Gross Block
Less:
Depreciation

7000

Current Assets
Profit and Loss
a/c
2550
00

3480
00

1000
0
1480 1460
00
00
40000 1000
00
67000 1020
00
2550 3480
00
00

Sub Code: 11 UBA

6413

Jamal Mohamed College

Department of Business Administration
Management Accounting
Assignment 2
Answer any three of the following:
1. Differentiate between Fund Flow and Cash Flow Statement.
2. From the following information calculate.
a) P/V Ratio b) B.E.P and c) Margin of Safety
Total Sales
Selling price per unit
Variable cost per unit
Fixed Cost

Rs.
360000
Rs. 100
Rs. 50
Rs.
100000

b) If the selling price is reduced to Rs. 90, by how much the margin
of safety reduced?
3. The sales turnover and profit during two years were as follow.
Year Sales
200
7
200
8

14000
0
16000
0

Prof
t
1500
0
2000
0

Calculate
a) P/V ratio b) Break Even Point c) Sales required to earn profit of
Rs. 40000
d) Fixed expenses and e) Profit when sales are
Rs. 120000.

4. Prepare a flexible budget for overheads on the basis of the following

data. Ascertain the overhead rates at 50%, 60% and 70% capacity.
Particulars

At 60%
capacity
Rs.

Variable overheads:
Indirect material
Indirect labour
Semi-variable overheads:
Electricity (40% fixed 60% variable)
Repairs (80% fixed 20% variable)
Fixed overheads:
Depreciation
Insurance
Salaries
Total overheads
Estimated direct labour hours

6000
18000
30000
3000
165000
4500
15000
93000
186000

5. Calculate Labour variances.

Particulars
No of workers
Working hours p.m.
Output in units
Average wages per worker p.m
(Rs.)

Standard
10
200
5000
2000