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ASSIGNMENT
DRIVE FALL 2017
PROGRAM Master of Business Administration- MBA
SEMESTER Semester 1
SUBJECT CODE & NAME MBA 104 - FINANCIAL AND MANAGEMENT ACCOUNTING
BK ID B1624
CREDIT & MARKS 4 Credits, 60 marks
Note The Assignment is divided into 2 sets. You have to answer all questions in both sets. Average
score of both assignments scored by you will be considered as your IA score. Kindly note that
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answers for 10 marks questions should be approximately of 400 words.

Q.No Questions Marks Total Marks

SET 1
1 Following information obtained from a manufacturing company:
01-04-2016 31-03-2017
Stock of Raw Material 75000 80000
Stock of Finished Goods 120000 140000
Stock of Work-in-progress 20000 26000

Indirect Labour - 65,000, Lubricants 15,000, Insurance on Plant 5,000, Purchase of Raw
Materials 3,00,000, Sales Commission - 75,000, Salaries to salesman 1,00,000, Administrative
Expenses 1,50,000, Carriage Outward 20,000, Power 20,000, Direct Labour - 2,00,000,
Depreciation on machinery 40,000, Factory Rent 50,000, Property Tax on Factory Building
14,000, Sales - 10,11,000

Prepare a statement of Cost and Profit showing:

(a) Cost of Raw Materials Consumed (b) Prime Cost (c) Total Manufacturing Cost or Factory
Cost or Works Cost (d) Cost of Goods available for Sale (e)Profit

A Prepare Cost Sheet 5*2=10 10

2 Calculate Creditors Turnover Ratio & Creditors Velocity from the data given below:

Total Purchase Rs 100000

Cash Purchases Rs 25000
Discount Provision on Creditors Rs 1000
Bills Payable at close Rs 25000
Creditors at close Rs 30000
Purchase returns Rs 2000
A 1. Creditors Turnover Ratio 5 10
2. Creditors Velocity 5
3 1. Briefly explain the Functions of Management Accounting

2. State and explain the various types of errors that are not disclosed by trial balance.
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A 1. Explain Function of Management Accounting 5
2. Explain the types of accounting errors not 5
disclosed by trial balance 10
SET 2
1 Fixed Overheads Rs 150000, variable cost per unit Rs 3, selling Rs 25. If the company is earning a
profit of Rs 450000 express the Margin of Safety (MOS) available also Calculate the BEP (Break
Even Point)
1. Calculate BEP 5
A 2. Calculate MOS 5 10
2 From the following information and assumption that the balance in hand on 1st Jan 2016 is
Rs.1,35,000, prepare a cash budget for January 2016 to June 2016
Month Materials Sales Wages Sales & Production Administrative
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Distribution Overhead Overhead

Overhead
January 60900 154000 25000 10000 12000 2500
February 70000 145000 25900 12000 12000 2700
March 61000 123000 23000 15000 12000 2200
April 71000 113000 32000 19000 13000 4000
May 84000 170000 29500 21000 16000 3500
June 87600 155000 25600 24000 16000 3000
Assume that 50% are cash sales. Assets are to be required in Feb. and April. Therefore, provision
should be made for payment of Rs. 26,000 and Rs. 60,000 for the same. An application has been
made to a bank for grant of loan of Rs. 50,000 and it is hoped that it will be received in the month
of May. It is anticipated that a dividend of Rs. 70,000 will be paid in June. Debtors are allowed 1-
month credit. Sales commission @ 3% on sales is to be paid. Creditors (for goods and overhead)
grant one months credit.
A From the above information prepare a Cash Budget
for six months from January 2016 to June 2016 10 10
3 Rectify the following errors:
1. A cash sale of Rs 405 to Sobiita posted as Rs
40
2. Salaries Rs 400 posted to salaries account as
Rs 420
3. Purchases from Kobita Credited to her
account as Rs 200
4. Sale made to Krishna Rs 5000 is transferred
to the credit Side of Krishna;s Account in the
ledger
A Rectify the errors (4x2.5) 10
# A- ANSWER