Abd Question Paper Bank

1
Total No. of Questions : 5] SEAT No. :

P1421 [5365]-1001
[Total No. of Pages : 7
M.B.A. - I
101 : ACCOUNTING FOR BUSINESS DECISIONS
(Semester - I) (2016 Pattern)
Time : 2.15 Hours] [Max. Marks : 50
Instructions to the candidates:
1) All questions are compulsory.
2) Each question has an internal option.
3) Each question carries 10 marks.
4) Figures to the righ indicate marks for question/subquestion.
5) Use of simple calculator is permitted.
Q1) Explain any five concepts used in Financial Accounting. [10]

OR
What do you mean by Business Decisions and explain briefly importance of
Business Decisions. [10]
Q2) Following is the Trial Balance of Mr. Sams proprietary firm. Prepare Trading
and Profit & Loss Account and Balance sheet as on 31st March 2017.
Dr. Cr.
Particulars (Rs.) Particulars (Rs.)
Plant & Machinery 78,000 Capital 2,00,000
Furniture 28,000 Sales 1,47,000
Purchases 60,000 Purchase Returns 750
Sales Returns 3,000 Discount 800
Opening stock 30,000 Provision for Bad debts 525
Discount 425 Creditors 30,100
Debtors 1,45,000
Salaries 7,550
Wages 10,000
Office Expenses 1,200
Rent 2,000
Advertisement Expenses 2,000
Cash 12,000
Total 3,79,175 Total 3,79,175
[5365]-1001 1 P.T.O.
2
Adjustments:
i) Closing stock was valued at Rs. 54,220.
ii) Provision for bad debts is to be made on debtors at Rs. 500.
iii) Allow interest on capital at 5% p.a.
iv) Depreciate plant and Machinery at 10% p.a.
v) Mr. Sam, a proprietary has taken goods worth Rs. 5,000 for personal
use.
vi) Goods worth Rs. 10,000 were distributed as free samples. [10]
OR
From the following Trial Balance extracted from the books of Shri Sai, Prepare
Trading and Profit & Loss Account for the year ended 31st March 2017 and
Balance sheet as on the same date
Particulars Dr. (Rs.) Cr. (Rs.)
Sundry Creditors 46,000
Rent 1,200
Cash at Bank 3,000
Cash in hand 1,400
Opening stock 16,000
Bad debts 1,000
Discounts 400 1,000
Purchases and sales 1,10,000 1,68,000
Carriage outward 3,600
Plant and Machinery 20,000
Sales Returns 8,000
Purchase Returns 4,000
[5365]-1001 2
3
Carriage Inward 1,000
Furniture and fixtures 12,000
Insurance and office Expenses 3,000
Salaries 6,000
Bills Receivables 12,000
Drawings 12,000
Wages 12,000
Provision for Doubtful Debts 2,000
Capital 50,000
Sundry Debtors 40,000
Commission 8,400
2,71,000 2,71,000
Adjustments:
i) Depreciate plant and Machinery at 10% and fixtures & Furniture at 5%.
ii) Insurance prepaid Rs. 200.
iii) Outstanding salary Rs. 1,000 and outstanding Rent Rs. 200.
iv) Maintain R.D.D. at 6% on Debtors.
v) Closing stock Rs. 20,000. [10]
[5365]-1001 3
4
Q3) a) Explain in brief classification of costs as per variability. [5]
b) From the following information prepare cost sheet.
Particulars Rs.
Direct material consumed 1,39,000
Direct wages 55,500
Factory overheads 29,200
Administrative overheads 34,875
Opening stock of WIP 5,000
Closing stock of WIP 4,000
Opening stock of Finished Goods 7,500
Closing stock of Finished Goods 5,700
Selling and Distribution overheads 30,150
Sales 3,75,000
Find out :
i) Prime cost
ii) Works cost
iii) Cost of production
iv) Cost of Goods sold
v) Profit [5]
OR
[5365]-1001 4
5
a) What are the objectives of Cost Accounting. [5]

b) From the following information prepare cost sheet.
Particulars Rs.
Opening stock of Raw Material 1,14,300
Closing stock of Raw Material 1,32,900
Purchases of Raw Material 6,32,000
Productive wages 2,30,000
Factory overheads 1,10,500
Opening stock of Finished Goods 44,000
Closing stock of Finished Goods 56,000
Selling and distribution overheads 34,000
Sales 15,30,000
Find out
i) Prime cost
ii) Works cost
iii) Cost of production
iv) Cost of Goods sold
v) Profit [5]
Q4) From the following information of S.P. Ltd, write up a stores ledger as per
FIFO method for the month of January 2017 and ascertain the value of closing
stock.
Particulars Date Quantity Rate P.U. (Rs.)
Purchases 4th January 300 2.70
Issues 5 January
th
250 -
Issues 8th January 200 -
Purchases 9 January
th
200 2.90
Issues 25 January
th
150 -
Issues 28 January
th
100 -
Other information:
a) On 1st January, there was an opening balance of 300 units at Rs. 2.50
P.U.
b) On 30th January, a shortage of 10 units was found at the time of stock
verification. [10]
OR
[5365]-1001 5
6
The Sunrise Ltd. has three production departments A, B and C and two
Service departments D and E. You are required to prepare statement showing
apportionment of overheads.
Following is the Summary of overheads.
Particulars Rs.
Rent and Rates 5,000
General Lighting 600
Indirect wages 1,500
Power 1,500
Depreciation of Machinery 10,000
Supervision 3,000
Canteen Expenses 7,000
The following other details are available.
Particulars Production Dept. Service Dept.
A B C D E
Floor Space (sq. ft) 2000 2500 3000 2000 500
Light points 10 15 20 10 5
Direct wages (Rs.) 3000 2000 3000 1500 500
H.P. of Machines 60 30 40 10 10
Value of Machinery (Rs.) 60,000 80,000 1,00,000 5,000 5,000
No. of workers 20 10 10 5 5
[10]
Q5) The expenses for budgeted production of 10,000 units in a factory are given
below
Particulars Per Unit (Rs.)
Direct Material 70.00
Direct Labour 25.00
Direct variable Expenses 5.00
Variable Factory overheads 20.00
Fixed factory overheads (Total Rs. 1,00,000) 10.00
Selling overheads (10% fixed) 13.00
Distribution overheads (20% fixed) 7.00
Administration overheads (Total Rs. 50,000) 5.00
Total Cost P.U. 155.00
Prepare a Flexible Budget of 6,000 units and 8,000 units. Assume that
administration expenses are rigid for all the levels of production. [10]
OR
[5365]-1001 6
7
Following information about material is extracted from a manufacturing

company.
a) Standard Mix for 100 units is as under:
Material A = 110 kg @ Rs. 4.50 per kg
Material B = 90 kg @ Rs. 5.40 per kg
b) Actual Mix for 450 units is as under:

Material A = 500 kg @ Rs. 5.00 per kg
Material B = 400 kg @ Rs. 5.50 per kg
Calculate :
i) Material cost variance

ii) Material price variance
iii) Material Mix variance
iv) Material Usage variacne [10]
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[5365]-1001 7
8

P1336 [Total No. of Pages :12
[5365]-101
M.B.A.
(2013 Revised Pattern) (Semester - I)
Time : 2½ Hours] [Max. Marks :50

2) All questions carry equal marks.
3) Each question has an internal options.
4) Use of simple calculator is allowed.
Q1) a) Distinguish between Financial Accounting and Management Accounting.

OR
b) Explain the classification of costs according to the functions and behaviour
along with examples.
Q2) a) Following is the Trial Balance of Mr. Sole Trader as on 31st March 2016.
You are required to prepare Trading and Profit & Loss account and
Balance sheet for the year ended 31st March 2016.
Trial Balance
Sales 3,00,000
Plant and Machinery 1,20,000
Rent, Rates and Taxes 20,000
Sales Returns 30,000
Freight 4,000
Bills Receivables 70,000
Opening stock 1,20,000
[5365]-101 1 P.T.O.
9
Purchases 2,30,000
Discount paid 5,000
Interest on Bank loan 5,000
Salaries 70,000
Cash in hand 5,000
Purchase Returns 10,000
Bank Loan 1,50,000
Capital 1,81,500
Bills Payable 66,000
Legal charges 500
General Expenses 8,000
Cash at Bank 20,000
Total 7,07,500 7,07,500
Adjustments:
i) Closing stock was valued at Rs. 1,20,000.
ii) Interest on Bank loan was outstanding Rs. 7,000.
iii) Depreciate plant and machinery @ 10%.
iv) Mr. Sole Trader has withdrawn the goods worth Rs. 20,000 for
personal use and accountant has not given the effect of the same.
OR
[5365]-101 2
10
b) Following is the Trial Balance of Mr. Poonawala who is Sole Trader as

on 31st March 2016. You are required to prepare Trading and profit and
Loss Account and Balance Sheet as on 31st March 2016.
Dr. Cr.
Particulars Rs. Particulars Rs.
Wages 6,000 Sales:
Drawings 2,000 Cash Sales 8,000
Credit Sales 18,000
Purchases 18,000 Capital 34,000
Sales Returns 300 Discount earned 340
Office Furniture 4,000 Purchase Returns 460
Building 12,000 Reserve for Doubtful Debts 1,500
Office Expenses 800 Sundry Creditors 2,800
Advertisement 500 Bank overdraft 1,300
Opening stock 5,000 Income from Investment 250
Rent 400
Commission 200
Bills Receivables 800
Travelling Expenses 250
Salaries 350
Bad debts 190
Cash in hand 1,800
Postage 50
Freight on Purchases 210
Investments 2,000
Fuel and Power 800
Debtors 11,000
66,650 66,650
Adjustments:
i) Closing stock was Rs. 8,200.
ii) Depreciation provided on building and on furniture @ 10%.
iii) Rent was outstanding Rs. 120.
iv) Provision for doubtful debts is to be maintained at 5%.
v) Income in the form of Interest accrued but not received Rs. 50.
vi) Goods worth Rs. 100 were distributed as free samples.
[5365]-101 3
11
Q3) a) Following is the record of receipts and issues of a particular material in

factory during April, May and June 2016.
i) On 2nd April, purchased 40,000 units @ Rs. 4 P.U.
ii) On 20th April, purchased 5,000 units @ Rs. 5 P.U.
iii) On 5th May, 20,000 units were issued.
iv) On 10th May, purchased 60,000 units @ Rs. 6 P.U.
v) On 12th May, 40,000 units were issued.
vi) On 2nd June, 10,000 units were issued.
vii) On 15th June, again 10,000 units were issued.
viii) On 16th June, purchased 45,000 units @ Rs. 5.50 P.U.
ix) On 20th June, 30,000 units were issued.
Write up a stores ledger as per LIFO method and find out the closing
balance.
OR
b) A company has three production Departments namely P1, P2 and P3
and one Service Department namely S1.
The indirect expenses are as follows:
P1 :- Rs. 825
P2 :- Rs. 100
P3:- Rs. 955
S1 :- Rs. 620
Details of additional expenses are as follows:
Particulars Amt. (Rs.)
Repairs of plant & machinery 1,500
Depreciation of plant & machinery 1,000
Rent 5,000
Lighting 500
Insurance of plant 1,000
Supervision charges 4,000
ESI contribution 500
Motive Power 2,000
[5365]-101 4
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Following are the other details related to production and service

departments.
Particulars P1 P2 P3 S1
Area Sq. Ft. 100 150 90 160
Number of workers 15 10 9 16
Direct wages 5,000 8,000 5,000 2,000
Value of plant 25,000 10,000 8,000 7,000
Number of light points 10 5 6 4
KWH 2,000 5,000 6,000 7,000
Prepare statement showing allocation and apportionment of overheads.
Q4) a) Write advantages of the system Budgetary Control.

b) Following data are available in a company for yearly period.
Particulars (Rs.) Amts. in lakhs
i) Fixed Expenses
Wages and salaries 9.5
Rent, Rates and Taxes 6.6
Depreciation 7.4
Admit Expenses 6.5
ii) Semivariable Expenses (at 50% capacity)
Repairs 3.5
Indirect Labour 7.9
Sales department salaries 3.8
Sundry admin salaries 2.8
iii) Variable Expenses (at 50% capacity)
Direct Material 21.7
Labour 20.4
Other expenses 7.9
Total 98.0
[5365]-101 5
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Other information:
i) Assume all fixed expenses remain constant for all levels of
production.
ii) Semi-variable expenses remain constant in between 45% to 65%
capacity and increases by 10% in between 65% to 80% capacity.
iii) Sales at various levels:
(Amts in lakhs)
60% capacity :- 120
75% capacity :- 150
Prepare a Flexible Budget and Forecast the profit at 60% and 75%
capacity.
OR
a) Explain in brief Labour variances.
b) Calculate Material Price Variance and Material Mix variance from the
following information.
Standard Mix for 100 units is as under:
Material A : 110 kg @ Rs. 4.50 per kg
Material B : 90 kg @ Rs. 5.40 per kg
Actual Mix for 450 units is as under:
Material A : 500 kg @ Rs. 5.00 per kg
Material B : 400 kg @ Rs. 5.50 per kg
Q5) a) Write a brief note on cost-volume profit Analysis.

b) Following details are related to a particular company.
Period Sales (Rs.) Profit/Loss (Rs.)
1st Half 7,00,000 10,000
2nd Half 9,00,000 30,000
Calculate: i) P/V Ratio
ii) Fixed Cost
iii) Break Even point in Rs.
OR
[5365]-101 6
14
a) What are the merits of marginal costing.

b) Following are the details of a particular company for the year 2015 and
2016.
Particulars 2015 (Rs.) 2016 (Rs.)
Sales 8,10,000 10,26,000
Profit 21,600 64,800

Calculate: i) P/V Ratio
ii) Fixed Cost
iii) Profit or Loss where sales are Rs. 6,48,000
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[5365]-101 7
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Total No. of Questions :5]
P1336
[5365]-101
M.B.A.
ACCOUNTING FOR BUSINESS DECISIONS
(2013 Pattern) (Semester - I)
Time : 2½ Hours] [Max. Marks :50
1) All the questions are compulsory.
Q1) a) Explain the Role of Financial Accounting in Business organization.
OR
b) Accounting concepts and conventions are the Basis on which all the
Accounting system are Based Elaborate.
Q2) a) What do you mean by the term financial statements. Explain in relations
to proprietary firm.
OR
b) What are the various objectives of financial statements. Explain in Details.
[5365]-101 8
16
Q3) a) Mr X furnishes the following data relating to the manufacture of standard

product during the month of April 2010.
Rs.
Raw material consumed 60,000
Direct labour charges 36,000
Machines Hours Worked 3,600
Machine Hours Rate 5
Administrative overheads 20% on work cost
Selling overheads Rs. 1 per unit
Units Produced 10,000
Unit Sold 9,000 at Rs. 20 per unit
You are required to prepare a cost sheet from the above showing:
i) Cost per unit
ii) Profit per unit sold and profit for the period
OR
b) All the Direct / Indirect items of expenses of a company are classified

under following heads.
i) Production
ii) Administration
iii) Selling
iv) Distribution
v) Applicable to all four classes of the above
vi) To be omitted from costing Records
[5365]-101 9
17
State under which the following Nature as expenses would generally

be placed and write down the Appropriate Match in Classification
Column.
Sr. No. Nature of Expenses
A Factory labourers wages
B Carriage Inward
C Advertisements
D Works Managers Salary
E Storekeepers salary
F Plant Maintenance
G Carriage outward
H Maintenance of Cranes & Hoists
I Lubricating oil
J Dividend
K Cost of free samples
L Discount Allowed
M Rent
N Income tax
O Cleaning materials
P Commission to Travellers
Q4) a) ABC Co. Ltd. has recorded the following transactions of material during
the month of Sept. 2014.
Date Particulars Quantity Rate
01/09/14 Opening Stock 300 9.7
05/09/14 Purchases 250 9.8
05/09/14 Issues 400
14/09/14 Purchases 300 10
16/09/14 Issues 200
25/09/14 Purchases 150 10.50
26/09/14 Issues 150
Calculate closing stock as on 30/09/14 on the basis of FIFO method
OR
[5365]-101 10
18
b) Modern company Ltd. has three production Departments X, Y & Z and

two service Departments A & B. The following figures extracted from
the records of the company
Rent & Rates Rs. 5,000 General Lighting Rs. 600
Indirect wages Rs. 1,500 Power Rs. 1,500
Depreciation on Rs. 10,000 Sundries Rs. 10,000
Machinery
The following further details are available.
Particulars Total X Y Z A B
Floor Space 10,000 2,000 2,500 3,000 2,000 500
(Sq ft)
Light Points 60 10 15 20 10 5
(No)
Direct wages 10,000 3,000 2,000 3,000 1,500 500
Rs.
HP of Machine 150 60 30 50 10
Value of 2,50,000 60,000 80,000 1,00,000 5,000 5,000
Machine
Apportion the cost to various Departments on most equitable basis.
Q5) a) The company furnishes you the following Income Information for the
current year Dividend in two sub pairs.
Particular First Half Second Half
Sales Rs. 8,10,000 Rs. 10,26,000
Profit Earned Rs. 21,600 Rs. 64,800
Calculate:
i) Profit volume Ratio
ii) Fixed Cost
iii) Amount of profit or loss when sales are Rs. 6,48,000
iv) Amount of sales Required to earn a profit of Rs. 1,08,000
OR
[5365]-101 11
19
b) A company is expecting to have Rs. 32,000 cash in hand on 1.4.2005

and it requests you to prepare Cash Budget for the three Months, April
to June 2005. The following informations is supplied to you.
Month Sales (Rs.) Purchase (Rs.) Wages (Rs.) Expenses (Rs.)
February 70,000 44,000 6,000 5,000
March 80,000 56,000 9,000 6,000
April 96,000 60,000 9,000 7,000
May 1,00,000 68,000 11,000 9,000
June 1,20,000 62,000 14,000 9,000
Other Information:
i) Period of credit allowed by supplier in two months.
ii) 25% of sales is for cash and the period of credit allowed to customer
for credit sales is one month.
iii) Delay in payment of wages & expenses one month.
iv) Income Tax Rs. 2,8000 is to be paid in June 2005.
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[5365]-101 12
20
Total No. of Questions :7] SEAT No. :

P1293 [5365]-12
M.B.A.
102 : MANAGEMENT ACCOUNTING
Time : 3 Hours] [Max. Marks : 70
1) Attempt any five questions.
Q1) Define and explain in brief following:

a) Entity concept.
b) Going concern concept.
c) Materiality convention.
d) Full Disclosure.
Q2) Define Marginal Costing and explain with example PV Ratio, Margin of safety
and BEP.
Q3) Differentiate between:

a) Capital Expenditure & Revenue Expenditure.
b) Management Accounting and Financial Accounting.
Q4) Write short notes on any two:

a) Cash Discount & Trade Discount.
b) Tangible Assets & Intangible Assets.
c) Labour turnover.
d) Idel time.
[5365]-12 1 P.T.O.
21
Q5) The expenses budgeted for production of 10000 units in a factory are as
under.
Cost Per Unit (Rs.)
Materials 70
Labour 25
Variable overheads 20
Fixed overheads (100000) 10
Variable Expenses (Direct) 5
Distribution Expenses (20% fixed) 7
Selling Expenses (10% fixed) 13

Admn Expenses (Rs. 50,000) 5
155
Prepare a budget for 6000 units & 8000 units.
Assume Admn Expenses are fixed.
Q6) Identify the overheads with cost centers.
Q7) Who are the users of financial statements & Accounting information Explain.
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[5365]-12 2
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Total No. of Questions :5] SEAT No. :

P3854 [Total No. of Pages :7
[5265] - 1001
M.B.A. - I
Time : 2¼ Hours] [Max. Marks :50

4) Figures to the right indicate marks for questions / sub questions.
Q1) Is there any similarity between Management Accounting and Financial

Accounting? [10]
OR
Explain any Five accounting concepts with suitable example. [10]
Q2) The following trial balance of Mr. Shah prepare the final account as on 31st
March 2017. [10]
Particulars Dr. N Cr. N
Capital 2,00,000
Land & Building 87,000

Plant & Machinery 17,500
Goodwill 20,000
Drawings 22,600
Cash in hand 1,795

Opening stock 27,000
[5265] - 1001 1 P.T.O.

23
Wages 10,000
Purchases 69,000
Carriage Inward 600
Travellers commission 6,000
Insurance Premium 2,000

Motor car 3,000
Sales 94,000
Salaries 15,000
Bank charges 105
RDD 1,500
Debtors 20,000
Creditors 7,500
3,03,000 3,03,000
Adjustments :-
a) On 31st March 2017 the stock was valued at N 46,000/-
b) Depreciation on Plant & Machinery 10% and Motor car 20%
c) Create a Reserve for Doubtful Debts at 10% on Debtors.
d) Insurance premium amounting to N 800 is prepaid.
e) Outstanding salaries amount to N 1000.
OR
The following balances were extracted from the books of Mr. Ashok as on
31st March 2017. Prepare Trading and profit and loss account for the year
ended 31st March 2017 and the Balance sheet as on that date after taking into
account the following adjustments : [10]
[5265] - 1001 2
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Particulars Dr. (N) Cr. (N)
Capital 3,30,000
Drawings 24,450
Opening stock 2,00,000
Bills receivable 25,000
Purchases 2,75,000
Sales 4,20,000
Bills payable 60,000
Return outwards 4,500
Return inward 5,000
Plant & Machinery 1,00,000
Loose tools 25,000
Sundry Debtors 1,25,000
Sundry Creditors 1,40,000
Cash at bank 77,550
Salaries & wages 50,000
Repairs & Renewals 7,500
Insurance 3,000
Power & Fuel 3,500
Printing & Stationery 2,000
General expenses 6,500
9,54,500 9,54,500
[5265] - 1001 3
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Adjustments :-
a) Closing stock was worth N 1,30,000.
b) Depreciation Land & building 15% and Plant & Machinery by 5%.
c) Provide for Bad and Doubtful Debts at 5% on Debtors.
d) Insurance paid in advance to the extent of N 750.
e) Revalue tools at N 20,000.
f) Provide for outstanding expenses as follows :
Salaries N 2,500 and wages N 1,000.
Q3) a) Explain in brief classification of cost as per elements. [5]
b) From the following information prepare cost sheet. [5]
Particulars Amt.
Sales 5,00,000
Direct wages 1,10,000
Factory Rent 30,000
Direct Material 2,90,000
Showroom Rent 15,000
Direct expenses 10,000
Printing & Stationery 5,000
Audit Fees 15,000
OR
a) Write a short note on Relevant and irrelevant cost. [5]
[5265] - 1001 4
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b) From the following information you are required to calculate Prime cost,
Works cost, total cost of production, cost of sales and profit. [5]
Particulars Amt.
Sales 1,00,000
Direct Material 40,000
Factory Overheads 7,000
Direct Wages 10,000
Selling & Distribution overheads 2,000
Q4) Modern company Ltd. furnishes following data for the month of July 2017.
Prepare store ledger account, pricing the material issue on the basis of LIFO
Method and ascertain the value of closing stock. [10]
Date Particulars
1 Opening stock - 100 units at N 1.80
5 Purchases - 150 units at N 1.50
8 Issues - 200 units
30 Spoilage - 50 units
OR
[5265] - 1001 5
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The Ultra Modern Company Ltd. is divided into four departments A, B & C
production departments and D is service department. You are required to
allocate the following common overheads expenses on the basis of information
given below. [10]
Particulars N
Power 10,700
Lighting 5,000
Insurance of Factory building 3,600
Insurance of Machinery 7,200
Supervision charges 25,000
Other Information :-
Production Dept. Service Dept.
A B C D
Horse Power hours ratio 25 35 30 10
Space occupied sq.ft 800 600 400 200
Value of Machinery (N) 40,000 60,000 30,000 70,000
Lighting Points 50 30 20 25
Time devoted for supervision 20% 30% 25% 25%
Q5) The sales turnover and profits during two years were as follows : [10]
Year Sales Profit
2016 45,00,000 5,00,000
2017 50,00,000 7,00,000

[5265] - 1001 6
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You are required to calculate
a) P/V Ratio.
b) Fixed cost.
c) Break Even point (N)

d) Sales to earn profit of N 10,00,000.
e) Margin of safety.
OR
From the following information, prepare a flexible budget at 60% and 80%
capacity. [10]
Particulars 70% capacity (N)
Variable overheads :
Indirect Material 5,000
Indirect Labour 15,000
Semi-variable overheads :
Electricity (60% variable) 50,000
Repairs & Maintenance (35% fixed) 5,000
Fixed overheads :
Salaries 10,000
Depreciation on machine 14,000
Insurance 6,000
1,05,000
R R R
[5265] - 1001 7
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P3799 [5265]-101
M.B.A.
101: ACCOUNTING FOR BUSINESS DECISIONS
Time : 2½ Hours] [Max. Marks : 50
4) Figures to the right indicate marks.
Q1) a) Explain the classification of cost as per elementwise along with suitable
example.
OR
b) Explain in brief the role of management accounting in global business.
Q2) a) From the following trial balance and additional information, prepare trading
and profit and loss A/c for the year ended 31st March 2014 and a Balance
Sheet as on that date:
Trial Balance as on 31st March 2014
Particulars Amount (Rs.) Particulars Amount (Rs.)

Cash in hand 2,400 Capital 2,00,000
Sales Return 200 Bills Payable 40,000
Purchases 2,40,000 Sundry Creditors 48,000
Opening stock 25,000 Sales 3,00,200
Sundry Debtors 1,10,000 Bad debts recovered 800
Plant & Machinery 1,20,000 Bank overdraft 2,500
Furniture 40,000 Outstanding Rent 2,000
Bills Receivable 30,000 Commission 4,000
Rent & Taxes (office) 4,000 Interest 1,500
Insurance 3,000 Interest Received
Outstanding in advance 1,000
Commission 2,000
Prepaid Insurance 1,500
Wages 21,000
Carriage Inward 900
6,00,000 6,00,000
P.T.O.
30
Additional Information.
i) Closing stock on 31st March 2014 Rs. 1,25,000 .
ii) Purchases include goods Rs. 5,000 withdrawn by proprietor for
personal use.
iii) Depreciation to be charged at 10% on plant & machinery.
iv) Further bad debts of Rs. 5,000 to be written off.
v) Reserve for discount on debtors & creditors to be created at 2%.
OR
b) From the undernoted Trial balance of M/S xyz as on 31st March 2015,
prepare a trading and profit & loss Account for the year ended 31st
March 2015 and a Balance Sheet as on that date.
Trial Balance
Particulars Amount Particulars Amount
(Rs.) (Rs.)
Cash in hand 1,200 Capital 80,000
Purchases 1,20,000 4% Bank loan 20,000
Opening stock 35,000 Bills Payable 22,000
Sundry Debtors 50,000 Sundry creditors 24,000
Plant & Machinery 60,000 Sales 2,00,000
Furniture 15,000 Bad debts reserve 1,200
Bills Receivable 20,000
Rent & Taxes 10,000
Wages 16,000
Salaries 20,000
3,47,200 3,47,200
Additional information:
i) Closing Stock Rs. 40,000
ii) Provide outstanding liabilities: Rent & Taxes-Rs. 2,000,
Wages-Rs. 3,000, Salaries - Rs. 4,000.
iii) Depreciation on plant & machinery at 5%, on furniture at 10%.
iv) Write off Rs. 500 as bad debts.
v) Create bad debts reserve at 2.5% on sundry debtors.
[5265]-101 2
31
Q3) a) Prepare the cost sheet to show the total cost incurred to manufacture
product X by m/s ABC ltd. for the month of July 2016.
Particulars Amount (Rs.)
Stock of Raw Materials on 1-7-2016 3,000
Raw Material Purchased 28,000
Stock of Raw materials on 31-7-2016 4,500
Wages (Direct) 7,000
Depreciation on plant 1,500
Factory Rent & Rates 3,000
Office Rent 500
General expenses 400
Discount on sales 300
Advertisement 600
Income tax paid 2,000
The number of units produced during July 2016, was 3,000.
The stock of finished goods on 1-7-2016 was Rs. 2,800
The stock of finished goods on 31-7-2016 was Rs. 5,184
OR
b) The stock on January, 2016 was 5,000 Nos. valued at 1.10 each. The
following purchases & issues subsequently made. Prepare stores ledger
A/c showing how the value of the issues would be recorded under LIFO
method and what value would you place on stock as on 31st January
2016.
Date Qty. Particulars
2016
Jan. 5 1,000 Purchased at Rs. 1.20 each
Jan. 11 2,000 Issued
[5265]-101 3
32
Q4) a) i) Write note on Flexible Budget.

ii) From the following information calculate
1) Material price variance.
2) Material usage variance.
3) Material Mix variance.
Material Standard Actual

A 90 units @ Rs. 12 100 units @ Rs. 12
B 60 units @ Rs. 15 50 units @ Rs. 16
OR
b) i) Explain standard costing in brief. Discuss the use of standard costing
in cost control.
ii) For production of 10,000 electrical Irons the following are budgeted
expenses:
Particulars Per unit (Rs.)
Direct materials 60
Direct labour 30
Variable overheads (Production) 25
Fixed overheads (Rs. 1,50,000) 15
Variable expenses (direct) 5
Selling expenses (10% fixed) 15
Administrative expenses (Rs. 50,000
fixed for all levels of production) 5
Distribution expenses (20% fixed) 5
Total cost of sales per unit 160
Prepare a flexible budget for production of 6,000 & 7,000 Irons
showing distinctly total cost.
[5265]-101 4
33
Q5) a) i) Explain Break even point in detail.

ii) M/s. R. Ltd. has prepared the following budget estimates for the
year 2016.
Sales units 15,000
Fixed cost Rs. 34,000
Sales value Rs. 1,50,000
Variable cost Rs. 6 per unit
You are required to find out
1) P/V Ratio.
2) Break even point
3) Margin of safety
OR
b) i) Explain the use of marginal costing in optimizing product mix.
ii) From the following particulars, calculate the sales required to earn a
profit of Rs. 1,20,000.
Sales Rs. 6,00,000
Variable costs Rs. 3,75,000
Fixed costs Rs. 1,80,000
Y Y Y
[5265]-101 5
34
Total No. of Questions : 5]
P3799 [5265]-101
M.B.A.
Q1) a) What is meant by Management Accounting? Explain the role of

Management Accounting in todays business context.
OR
b) Explain the Accounting concepts with suitable example (any five).
Q2) a) Define financial statements. Explain the objectives and importance of

financial statements.
OR
b) Explain the following financial statements in detail (any two).
i) Balance sheet.
ii) Income statement.
iii) Cash flow statement.
Q3) a) From the following information, prepare the cost sheet of M/s xyz Ltd.
for the month of January 2015.
(Rs.) (Rs.)
Stock of Raw material Factory Rent, Rates
on 1/1/2015 50,000 & Taxes 30,000
Stock of Raw Material
on 31/1/2015 45,000 Bad debts 5,000
Raw material
purchased 3,00,000 General expenses 10,000
Office Rent,
Rates & Taxes 15,000 Advertisement 6,000
Wages 80,000 Depreciation on plant 20,000
Income tax paid 15,000 Sales 6,00,000
OR
[5265]-101 6
35
b) Classify the following items into:

i) Factory overhead.
ii) Administration overhead.
iii) Selling & distribution overhead.
iv) Items excluded from cost sheet.
Sr. Particulars Sr. Particulars

No. No.
1 Indirect material 11 Office Rent
2 Audit fees 12 Postage & Telegram
3 Salaries 13 Printing & stationery
4 Bad debts 14 Travelling expenses
5 Carriage outward 15 Warehouse expenses
6 Donations 16 Delivery van charges
7 Power & fuel 17 Factory lighting
8 Interest on capital 18 Office furniture
9 Advertisement 19 Drawing office expenses
10 Repairs & maintenance Depreciation on plant
of machinery 20
Q4) a) From the following information of M/s ABC Ltd. for the month of August
2015. Prepare a store ledger account by adopting FIFO method of pricing
of issues of material.
Date Particulars Qty. Rate

1 Opening balance 200 6
2 Purchases 300 5
4 Issues 250
5 Purchases 200 6
10 Issues 150
18 Issues 200
21 Purchases 200 4
26 Issues 250
28 Purchases 250 5
31 Return to vendor,
purchased on 28/1/2015 20
OR
[5265]-101 7
36
b) M. Machines Ltd. have three production departments (A, B & C) and

two service departments (D & E). From the following figure extracted
from the records of the company, show the distribution of overheads.

(Rs.) (Rs.)
Indirect materials 15,000 Rent, Rates & Taxes 10,000
Indirect wages 10,000 Electric power for machinery 15,000
Depreciation on Electric power for lighting 5,000
machinery 25,000
Depreciation on
Building 5,000 General expenses 15,000
Items Total A B C D E
Direct materials (Rs.) 60,000 20,000 10,000 19,000 6,000 5,000
Direct wages (Rs.) 40,000 15,000 15,000 4,000 2,000 4,000
Value of machinery (Rs.) 2,50,000 60,000 1,00,000 40,000 25,000 25,000
Floor Area (sq. ft.) 50,000 15,000 10,000 10,000 5,000 10,000
Horse power of machines 150 50 60 30 5 5
No. of light points 50 15 10 10 5 10
Labour Hours 15,000 5,000 5,000 2,000 1,000 2,000
Q5) a) Draw up a flexible budget for overhead expenses on the basis of the
following data at 70%, 80% and 90% plant capacity.
Particulars Capacity level 80 % Rs.
Variable overheads
Indirect labour 12,000
Stores including spares 4,000
Semi variable overheads
Power (30% fixed, 70% variable) 20,000
Repairs & maintenance
(60% fixed, 40% variable) 2,000
Fixed overheads
Depreciation 11,000
Insurance 3,000
Salaries 10,000
Total overheads 62,000
OR
[5265]-101 8
37
b) M/s LML Ltd. have furnished the following information.

Selling price Rs. 8/- per unit
Variable cost Rs. 5/- per unit
Fixed cost Rs. 45,000
Sales 25,000 units
Calculate :
i) Contribution.
ii) P/V Ratio.
iii) BEP in units
iv) BEP in sales
v) Margin of safety in units
Y Y Y
[5265]-101 9
38

P3748 [Total No. of Pages : 4
[5265] - 12
M.B.A.
Time : 3 Hours] [Max. Marks :70

1) Q. No. 1 is compulsory.
2) From Sec. I - Q.2 to 5 - Attempt any two questions.
3) From Sec.II - Q.6 to 9 - Solve any two questions.
4) Figures to the right indicate full marks.
Q1) Identify typical users of financial reports and accounting information. Clarify
the need of these reports to them. [10]
SECTION - I
Q2) Write short notes on any three. [15]
a) Journal and Ledger.
b) Under absorption and over absorption.
c) LIFO and FIFO.
d) Balance Sheet and Profit and Loss A/c.
Q3) Distinguish between following:- [15]

a) Cash Discount and Trade Discount.
b) Financial Accounting and cost Accounting.
c) Direct Expenses and indirect Expenses.
Q4) Explain the following with example- [15]

a) Going concern concept.
b) Entity concept.
c) Conservetism convention.
d) Full Disclosure convention.
e) Materiality convention.
[5265] - 12 1 P.T.O.
39
Q5) Explain the following terms - [15]

a) Cost centre and cost unit.
b) Allocation, Apportionment and absorption of overheads.
SECTION - II
Q6) From the following Trial Balance of Harish Mehata, prepare the Final accounts
as on 31st March 2011. [15]
Particulars Debit Rs. Credit Rs.
Hs capital 2,00,000
Goodwill 20,000
Hs Drawings 22,600
Cash in Hand 1,795
Stock on 1st April 2010 27,000
Wages 10,000
Purchases less Returns 69,000
Carriage Inward 600
Travellers Commission 6,000
Insurance 2,000
Motor Car 3,000
Sales less Returns 94,000
Salaries 15,000
Bank Charges 105
Reserve for Doubtful Debts 1500
Debtors 20,000
Creditors 7,500
3,03,000 3,03,000
Following adjustments are to be considered -
a) On 31st March 2011, the stock was valued at Rs. 46,000/-
b) Insurance premium amounting to Rs. 800.00 is prepaid.
c) Outstanding salaries amounted to Rs. 1,000.00.
d) Depreciate plant and machinery at 10% p.a. and motor car at 20% p.a.
e) Create a Reserve for Doubtful Debts at 10% on Debtors.
[5265] - 12 2
40
Q7) From the following information, calculate variances - [15]

Quantity Price Total Quantity Price Total
Kg. Rs. Rs. Kgs. Rs. Rs.
A 500 6.00 3,000 400 6.00 2,400
B 400 3.75 1,500 500 3.60 1,800
C 300 3.00 900 400 2.80 1,120
1,200 1,300
Normal Loss 120 220
1,080 5,400 1,080 5,320
Calculate:-
a) Material Cost Variance
b) Material Price Variance.
c) Material Usage Variance.
d) Material Yield Variance.
Q8) Following are the details of working of ABC company [15]

Sales 1,15,000
Cost of Raw Material 50,000
Labour 10,000
Power & Fuel 8,000
Mfg. Expenses 10,000
Rent 12,000
Depreciation 5,000
Interest 6,000
Insurance 1,000
Admn. Expenses 8,000
1,10,000
Installed capacity 31428 units
Selling Price Rs. 11.50 per unit
Present Activity 35% of capacity
On the basis of above information you are required to work out following.
a) Work out fixed and variable cost.
b) Work out Break Even Point.
c) Break Even Sales/no. of units and capacity utilization.
Also draw the Break Even graph.
[5265] - 12 3
41
Q9) Following are the particulars of production of 2000 tables of K and Co. for
the year 2010. [15]
Cost of Material Rs.1,60,000
Wages Rs.2,40,000
Mfg Expenses Rs.1,00,000
Salaries Rs.1,20,000
Rent, Rates, Insurance Rs. 20,000
Selling Expenses Rs. 60,000
General Expenses Rs. 40,000
Sales Rs.8,00,000
The company plans to manufacture 3,000 tables during 2011. You are required
to submit a statement showing the price at which table should be sold so as to
show profit of 10% on selling price. Following is the additional information.
a) The price of material is expected to increase by 20%.
b) Wage rates are expected to show an increase of 5%.
c) Mfg expenses will rise in proportion to be combined cost of material

and wages.
d) Selling expenses will remain same.
e) Other expenses will remain unaffected by rise in output.

Prepare cost sheet for 2010 & Estimate for 2011.
l l l
[5265] - 12 4
42

[5165]-1001
M.B.A. (Semester - I)
(2016 Pattern)
Time : 2.15 Hours] [Max. Marks : 50

2) Each question has internal option.
Q1) Short note :
a) Users of accounting information.
b) Uses and applicability of tally in accounting.
OR
a) Differentiate between financial Accounting and management accounting.
b) What is Accounting equation? Explain the accounting equation with
suitable examples.
Q2) From the following particulars prepare Trading A/c, profit and loss A/c. for
the year ended 31st March 2016. Also prepare Balance Sheet as on 31st March
2016.
Particular Amount (Rs.)
Dinesh capital A/c 88,000
Dinesh drawing A/c 1,000
Furniture & Fixture 6,000
P.T.O.
43

Loose tools 10,000
Motor car (cost Rs. 15,000) 5,000
Stock (1st April 2015) 10,000
Purchases 1,51,000
Return inward 4,000
Return outward 2,000
Sales 2,04,000
Discount received 3,000
Wages 5,000
Salaries 20,800
General exp. & Insurance 6,000
Rent & Taxes 7,200
Postage & Telegram 2,000
Parking & Selling Exp. 4,000
Advertisement 1,000
Sundry creditors 12,000
Reserve for Bad & Doubtful Debts 1,000
Cash in hand 7,000
Bank overdraft 10,000
Adjustments :-
1) Depreciation on Motor car at 15% on original cost.
2) Loose tools valued at Rs. 8,000.
3) Stock on 31st March 2016 valued at 12,400.
4) Reserve for Bad and Doubtful Debts is to be maintained at 5% on debtors,
maintain Reserve for Discounts on creditors at 2%.
5) Unexpired Insurance Rs. 200.
6) Provide for interest on capital at 6% p.a.
[5165]-1001 2
44
OR
From the following Trial Balance of Shri Sen you are asked to prepare-Trading
A/c, P & L A/c and Balance Sheet.
Trial Balance as on 31st March 2016
Dr. (Rs.) Cr. (Rs.)
Machinery 90,000
Building 40,000
Stock 20,200
Purchases 1,10,800
Wages and Salaries 17,000
General Exp. 9,100
Rent 1,700
Bad Debts 650
Income Tax 300
Legal charges 400
Prepaid Rent 200
Loan to Mukharjee 17,000
Mr. Sen's Drawings 4,300
Cash in Hand 1,350
Cash at Bank 9,750
Capital (Prakash Sen's) 1,15,200
Sundry creditors 45,000
Bills payable 4,000
Return outward 1,500
Interest & Commission 900
Outstanding exp. 1,150
Sales 1,90,500
Reserve for Bad & Doubtful Debt 2,500
3,60,750 3,60,750
The following Adjustment should be taken into consideration.
1) Stock on 31/3/2016 valued at cost Rs. 20,900 & market price Rs. 24,000.
2) Depreciation on machinery at 10% and Building at 5%.
3) The reserve for Doubtful Debts is to be maintained at Rs. 1,000/-
4) Provide for Reserve for Discount on sundry creditors at 2%.
5) Calculate interest on capital at 5% per year.
6) No interest is chargable on Drawings.
[5165]-1001 3
45
Q3) From the following particulars you are required to prepare "Cost Sheet".
Op. Stock of Raw Material 1,00,000
Cl. Stock of Raw Material 1,50,000
Op. Stock of Finished Goods 2,00,000
Cl. Stock of Finished Goods 50,000
Purchases of Raw Material 6,00,000
Productive wages 2,50,000
Actual work expenses 1,93,750
Actual office expenses 1,52,500
Sales of finished Goods 16,25,000
You are also asked to calculate per unit profit, if selling price is Rs. 25 per
units.
OR
Bombay Manufacturing Ltd. provided costing information as under for the
half year ended on 30th June - 2016.
Raw material stock (1st Jan. 2016) 22,000
Finish Goods stock (1600 tonnes)
on 1st Jan. 2016 17,600
Raw material stock (30th June 2016) 24,464
Finish Goods stock (3200 tonnes)
on 30th June 2016 35,200
Purchase of Raw Material 1,32,000
Direct wages 1,10,000
Factory overheads 44,000
W/P as on 1st Jan. 2016 5,280
W/P as on 30th June 2016 17,600
Cost of factory supervision 8,800
Sales (Finished Goods) 3,30,000
[5165]-1001 4
46
Selling and distribution overheads are Rs. 0.75 per tonne.

During the given period 25,600 tonnes commodity was produced.
You are required to prepare "Cost statement" showing.
1) Prime cost
2) Cost of Goods sold for the period.
3) Cost of sales for the period.
4) Net profit for the period.
5) Net profit per tonne of the commodity.
Q4) a) Write in brief about inventory control techniques.

b) From the following calculate the value of inventory on 31st March 2016
by using LIFO method.
Date Particulars
1/03/2016 Op. stock of 400 units @ Rs. 3 each
7/03/2016 Purchases 600 units @ Rs. 4 each.
13/03/2016 Purchases 200 units @ Rs. 5 each.
18/03/2016 Issue 800 units
26/03/2016 Issue 300 units
31/03/2016 Issue 50 units.
OR
a) Write note on "EOQ'.
b) Manu Skill Ltd. has for departments out of which L, M, N are production
departments and K is service department. The costs are given below
relating to these departments.
Make the apportionment of the costs to these departments.
Particulars Dept.-L Dept.-M Dept.-N Dept.-S
Area (Sq. Ft.) 75 55 45 25
No. of workers 12 08 06 04
Total wage (Rs.) 4,000 3,000 2,000 1,000
Value of plant (Rs.) 12,000 9,000 6,000 3,000
Value of stock (Rs.) 7,500 4,500 3,000 -
[5165]-1001 5
47
1) Rent 1,000
2) Repairs 600
3) Depreciation 450
4) Light 100
5) Supervision 1,500
6) Power 900
7) Insurance 500
8) Employee Insurance 150
(paid by employer)
Q5) In the Manu Tech. Ltd., the selling price and cost remains the same in two
periods given below :
Particular Sales (Rs.) Profit (Rs.)
Period - I 4,00,000 36,000
Period - II 4,80,000 52,000
You are required to calculate :
1) P/V Ratio
2) BEP (Rs.)
3) Variable cost for both the period.
4) MOS in percentage for both the period
5) Profit, when sales is Rs. 6,00,000
[5165]-1001 6
48
OR
A gang of workers normally consist of 30 men, 15 women and 10 boys. They

are paid at standard hourly rate as under :
Men Rs. 80 per Hr.
Women Rs. 60 per Hr.
Boys Rs. 40 per Hr.
In a normal working week of 40 Hr., the gang is expected to produce 2,000

units of output.
During the week ended 31st March 2016, the gang consist of 40 men, 10
women, 5 boys. The actual wages were paid per hour Rs. 70, Rs. 65, Rs. 30
respectively. During the process 4 Hrs. were lost due to abnormal time and
1,600 units were produced.
Calculate : - 1) Labour Rate Variance.
2) Labour Efficiency Variance.
3) Labour Cost Variance.
4) Idle Time Variance.
M M M
[5165]-1001 7
49

P2146
[5165]-101
(2013 Pattern) (Revised)
Instructions to the candidates:-
Q1) Differentiate between financial accounting and cost accounting. [10]
OR
Briefly explain the role of management accounting in global business

environment.
Q2) Following is theTrial Balance of Mr. Dhoni as on 31st March 2016. Prepare his
Trading A/c, P&C A/c and Balance sheet. [10]
Particular Debit (Rs.) Credit (Rs.)
Dhoni's capital 5,50,000
Good will 50,000
Op. Stock 2,00,000
Bills receivables 50,000
Plant & M/c 2,50,000
Purchases 4,00,000
Sales 5,90,000
Investments 1,00,000
Furniture 30,000
Returns outward 5,000
Dhoni's Drawings 20,000
P.T.O.
50
Sundry Debtors 1,80,000

Sundry creditors 2,70,000
Salaries 25,000
Wages 40,000
Insurance 25,000
Advertisement (for 5 years from 1/4/15) 15,000
Interest & commission 15,000
Prepaid insurance 10,000
Miscellaneous income 5,000
Total 14,35,000 14,35,000
Adjustments
1) Closing stock was valued at Rs. 2,00,000
2) Depreciation on M/c@10%
3) Create reserve for doubtful debt@10%
4) Outstanding salaries amounted to Rs.10,000
5) Goods distributed as free samples Rs.10,000
OR
From the following Trial Balance of M/s Ram Co. Prepare:- Trading A/c,
P&L A/c, Balance sheet for the year ending 31st March 2016. [10]
Particulars Debit (Rs.) Credit (Rs.)
Capital 45,000
Drawings 3,250
Land and buildings 12,750
Plant & M/c 7,250
Furniture 750
Carriage 2,125
Wages 10,750
Salaries 2,350
[5165]-101 2 P.T.O.
51
Bad debts Reserve (1-4-15) 1,250

Sales 47,500
Return inward 900
Bank Charges 750
Taxes 425
Discount 60
Purchases 20,000
Bills receivable 750
Debtors 18,900
Creditors 6,125
Stock(1-4-15) 12,500
Cash is hand 7,000
Bank Loan 515
Total 1,00,450 1,00,450
Adjustments
1) Closing stock (31-3-2016) Rs. 3,625/-
2) Providing 10% depreciation p.a. on all types of fixed assets
3) Allow interest on capital @5% p.a. No interest is to be charged on
drawings.
4) Increase bad debts reserve to Rs.1,750
5) Make a provision for commission to the General Manager on gross
profit@2%
Q3) From the following transactions, prepare a store ledger A/c showing pricing
of material on LIFO basis. (Last in First out basis) [10]
Date Particulars Units cost per unit
1/5/17 Op.stock 600 units @Rs. 14 each.
3/5/17 Purchased 300 units @ Rs. 15 each
6/5/17 Issued 500 units
7/5/17 Purchased 900 units @ Rs. 16 each
23/5/17 Purchased 400 units @ Rs.18 each
OR
[5165]-101 3
52
The accounts of G.B. Manufactures Ltd. for the year ending 31st Dec. 2016.
as given below.
Particular Amt. (Rs.)
Stock of RM (1-1-2016) 16,720
Material purchased 25,900
Travellers commission 1,078
Depreciation on office furniture 42
Rent & insurance (factory) 1,190
Productive wages 17,640
Directors fees 840
General expenses 476
Gas & water (Factory) 168
Travelling exp. 294
Sales 76,000
Managers salary (Factory) 1,000
Managers salary (office) 500
Depreciation on plant & M/c 1,820
Discount allowed 406
Repairs plant & M/c 623
Carriage outward 602
Rent & insurance (Office) 280
Gas & water (office) 56
Stock of material on (31-12-2016) 8,792
Profit 8,156
Prepare a cost sheet showing
a) Material consumed
b) Prime cost
c) Factory cost
d) Cost of production
e) Total cost
Q4) "R-Dture" company limited is expecting to have cash in hand of Rs. 25,000
on 1st April 2016. [5]
i) You are required to prepare cash Budget during the three months, April
to June 2016.
The following information is supplied to you.
Month Sales(Rs.) Purchases (Rs.) Wages(Rs.) Expenses(Rs.)
February 70,000 40,000 8,000 6,000
March 80,000 50,000 8,000 7,000
April 92,000 52,000 9,000 7,000
May 1,00,000 60,000 10,000 8,000
June 1,20,000 55,000 12,000 9,000
ii) Write note on labour variance [5]
OR
[5165]-101 4
53
i) Write note on budgetory control system.

ii) From the following calculate
a) Material cost variance
b) Material price variance
Qty. Price Total Qty. Price Total
(Rs.) (Rs.) (Rs.) (Rs.)
X 2,500 6.00 15,000 2,000 6.00 12,000
Y 2,000 3.75 7,500 2,500 3.60 9,000
Z 1,500 3.00 4,500 2,000 2.80 5,600
Total 6,000 27,000 6,500 26,600
Q5) i) From the following find out

a) P/v ratio
b) Fixed cost
Sales(Rs.) Profit (Rs.)
Period I 10,00,000 1,50,000
Period II 12,00,000 2,30,000
ii) Short note on "Uses of marginal costing".
[10]
OR
i) Reno manufacturing Ltd. furnishes following data.
Particulars Amt.(Rs.)
Sales 1,50,000
(–) Variable cost 1,20,000
Contribution 30,000
(–) Fixed cost 20,000
Profit 10,000
You are required to calculate
a) P/v ratio
b) BEP (sales)
ii) Explain the use of marginal costing in "make or buy decision".
\\\
[5165]-101 5
54

P2146
[5165]-101
(2013 Pattern)
Instructions to the candidates:-
Q1) a) Distinguish between management accounting and financial accounting.

OR
b) Explain the concept of management accounting. Discuss the utility of
management accounting.
Q2) a) What is mean by financial statements? Explain the objectives of financial

statements.
OR
b) Do you think that the financial statements of proprietary and limited
companies are same? Justify.
Q3) a) The M/s Modern Ltd. Company submits the following information as
on 31st March 2015. Prepare a statement of cost and find out sales.
Opening stock of Raw materials 40,000
Purchases 3,00,000
Closing stock of Raw materials 20,000
Direct labour 1,20,000
Factory lighting 15,000
Power & fuel 30,000
Office rent 25,000
Printing & stationery 10,000
Office furniture 20,000
Opening stock of finished goods 11,200
Closing stock of finished goods 32,400
Selling & distribution overheads 20,000
Profit 1,39,700
OR
6
55
b) Classify the following items as

1) Factory overhead
2) Office overhead
3) Selling & distribution overhead
4) Items excluded from cost sheet
i) Indirect material
ii) Printing & stationery
iii) Telephone & telegram
iv) Travelling expenses
v) Factory insurance
vi) Supervisor's salary
vii) Show room expenses
viii) Bad debts
ix) Depreciation of factory building
x) Interest on capital
Q4) a) The store ledger of XYZ Ltd. company reveal the following entries of a
particular material. Calculate the value of closing stock as on 31st January
2016 by adopting FIFO method.
Date Purchases Issues
Qty. Rate Qty.
2/1/2016 4,000 1.80
5/1/2016 2,000 1.75
8/1/2016 10,000
11/1/2016 5,000
14/1/2016 3,000 1.85
28/1/2016 3,000 1.90
30/1/2016 10,000
Opening stock as on 1/1/2016 was 20,000 units valued at Rs.40,000
OR
[5165]-101 7
56
b) PH Ltd. is a manufacturing company having three production departments

(A,B & C) and two service departments (X & Y), for the month of
December 2015.
Particulars Rs.
Factory Rent 4,000
Power 2,500
Depreciation 1,000
Indirect labour 9,000
Additional information
Particulars A B C X Y
Direct materials 1,000 2,000 4,000 2,000 1,000
Direct wages 5,000 2,000 8,000 1,000 2,000
Area (sq.ft.) 500 250 500 250 500
Capital value of Assets 20,000 40,000 20,000 10,000 10,000
Horse power of machine 50 40 20 15 25
You are required to show a statement of distribution of overheads to
various departments.
Q5) a) From the following information compute

i) Direct material price variance
ii) Direct material usage variance
iii) Direct material mix variance
Particulars Standard Actual
Qty.(Kgs.) Unit Total Qty.(kgs.) Unit Total
price price
Material A 100 20 2,000 50 30 1,500
Material B 200 30 6,000 100 60 6,000
Material C 200 60 12,000 150 50 7,500
500 20,000 300 15,000
OR
b) The following data are obtained from the records of a company
2014 2015
Sales Rs.80,000 Rs.90,000
Profit Rs.10,000 Rs.14,000
Calcualte:
i) Contribution
ii) P/V ratio
iii) Fixed cost
iv) BEP in sales (Rs.)
\\\
[5165]-101 8
57
[5165]-12
M.B. A.
102 - MANAGEMENT ACCOUNTING
(2008 Pattern)
1) Question No 1 is Compulsory.
2) Solve any Two questions from Section-I and Two questions from Section-II.
Q1) Explain the concept of Budget. Briefly explain the various types of budgets?[10]
SECTION - I
Q2) What is meant by Management Accounting? Discuss its scope, nature, advantages
and disadvantages. [15]
Q3) Define standard cost. Write the advantages and disadvantages of standard
costing. [15]
Q4) Explain the Material Issue Procedure. Enumerate the different methods of
Pricing Issue of Materials. [15]
Q5) Write short notes on (Any three) [15]

a) Labor Turnover
b) Parties or users interested in accounting
c) Capital Expenditure and revenue Expenditure
d) Journal and ledger
e) Idle Time.
P.T.O.
58
SECTION - II
Q6) From the following Trial balance, Prepare Trading and Profit and Loss
accounts for the year ended 31st Mar. 2012 and a Balance Sheet as on 31st
March 2012. [15]
Trial Balance
As on 31st March 2012
Drawings 4,500 Capital 24,000
Purchases 20,000 Sales 30,500
Return In wards 1,500 Discount 1,900
Opening Stock 8,000 S. Creditors 10,000
Salary 4,200 Bills Payable 2,500
Wages 1,200
Rent 350
Bad debts 400
Discount 700
S. Debtors 14,000
Cash 260
Bank 5,940
Insurance 400
Trade Expenses 300
Printing 150
Furniture 2,000
Machinery 5.000
Total 68,900 Total 68,900
Adjustments:
1) Closing Stock was valued at Rs. 7,000/-
2) Insurance was prepaid to the extent of Rs.60/-
3) Outstanding Liabilities were:- Salary - Rs.200/-, Wages - Rs. 200/-
4) Make provision for doubtful debts at 5% on S. Debtors.
5) Interest on Capital 5% per annum.
6) Depreciate Machinery at 5% & Furniture at 10%.
7) Provide for discount on creditors at 1%.
[5165]-12 2
59
Q7) a) Two competing companies ABC Ltd & XYZ Ltd, Produce & Sell the
same type of product in the same market. For the year ended March
2012 their forecasted profit and loss account is as follows : [6]
Particulars ABC Ltd XYZ Ltd
Sales Rs. 2.50.000 Rs. 2,50,000
Less:- VC Rs. 2,00,000 Rs. 1,50,000
Fixed cost Rs. 25,000 Rs. 2,25,000 Rs. 75,000 Rs. 2,25,000
Forecasted Net
Profit before tax Rs. 25,000 Rs. 25,000
You are required to compute :-
1) P/V Ratio,
2) Break-Even Sales Volume. You are required to state which company
is likely to earn greater profits in condition of :-
a) Low demand,
b) High demand.
b) From the following particulars of a Manufacturing firm, prepare a Cost
sheet :- [9]
Items Amount
Stock of Materials on 1-1-2012 20,000
Purchase of Raw Materials in 1-1-2012 5,50,000
Stock of Finished Goods on 1-1-2012 25,000
Productive Wages 2,50,000
Finished Goods 12,00,000
Works Overhead charges 75,000
Office & General Expenses 50,000
Stock of Materials on 31-01-2012 70,000
Stock of Finished Goods on 31-01-2012 30,000
[5165]-12 3
60
Q8) For Production of 10,000 electoral automatic irons, the following are the
budgeted expenses
Items Per Unit
Direct Materials Rs.30
Direct Labor Rs.15
Variable Overheads Rs.12.5
Fixed Overheads (Rs.75,000) Rs.7.5
Direct Variables Rs.2.5
Administrative Expenses(Rs.25,000 fixed for
all levels of production) Rs.2.5
Selling Expenses (10% fixed) Rs.7.5
Distribution Expenses (20% Fixed) Rs.2.5
Total Cost Per Unit Rs.80.00
Prepare a budget for production of 6,000 unit 7,000 unit 8,000 unit irons,
showing distinctly the marginal cost and total cost. [15]
Q9) For unit of Product X, the Standard Data are given below:
Particulars Amount
Materials 5 kg @ Rs.40 per kg 200
Labor 40 hrs @ Re. 1 .00 per hour 40
Total 240
Actual Data:
Actual Production 100 Units Amount
Materials 490 kg @Rs.42 per kg 20,580
Labor 3960 hours @ Re. 1.10 per hour 4,356
Total 24,936
Calculate: - 1) Material Cost Variance, 2) Material Price Variance,
3) Material Usage Variance, 4) Labor Cost Variance,
5) Labor Rate Variance, 6) Labor- Efficiency Variance
[15]
GGG
[5165]-12 4
61

[5070]-5001
(2016 Pattern)
Time : 2¼ Hours] [Max. Marks : 50

4) Figures to the right indicates marks for question / sub question.
5) Use of simple calculator is permitted (as applicable)
Q1) "Financial Accounting and Management Accounting are not same". Explain.[10]
OR
Write in detail accounting conventions with suitable example.
Q2) Following is the Trial Balance of ABC as on 31/03/2015. Prepare Trading

Account, Profit & Loss Account for the year ended 31/03/2015 & prepare
Balance Sheet as on that date. [10]
Debit Balance Amount (Rs) Credit Balance Amount (Rs.)
Opening stock 25,000 Creditors 25,000
Plant 1,64,000 Bills payable 25,000
Rent 20,000 Capital 3,25,000
Salaries 30,000 Sales 4,00,000
Wages 20,000
Carriage Outward 3,000
Factory Rent 5,000
Purchases 2,25,000
Insurance 1,000
Furniture 80,000
Debtors 2,00,000
7,75,000 7,75,000
P.T.O.
62
Additional Information :
a) Closing stock valued Rs. 25,000/- as per market value and as per book
value Rs. 20,000/-
b) Depreciation on furniture Rs. 8,000/-
OR
Following is the Trial Balance & DEF as on 31/03/2010. Prepare Trading
Acount, Profit and Loss Account for the year ended 31/03/2010 and Balance
sheet as on that date.
Debit Balance Amount (Rs) Credit Balance Amount (Rs.)
Opening Stock 15,000 Bank Loan 50,000
Machinery 2,00,000 Capital 2,75,000
Insurance 1,000 Creditors 35,000
Printing & stationary 5,000 Sales 1,86,500
Telephone charges 500 Returns outward 1,500
Wages 25,000
Advertising 15,000
Purchases 1,00,000
Returns Inward 1,000
Motor Van 30,000
Debtors 1,50,000
Motive & Power 5,500
5,48,000 5,48,000
Additional Information -
a) Closing stock valued at Rs. 5,000/-
b) Wages outstanding Rs. 5,000/- and prepaid insurance Rs. 500/-
[5070]-5001 2
63
Q3) a) Explain sunk costs with suitable example. [5]

b) From the following information you are required to calculate prime cost,
works cost, total cost of production, cost of sales and profit. [5]
Direct Labour 1,00,000 Direct Expenses 1,50,000
Factory overheads 2,00,000 Office overheads 1,80,000
Direct Material 5,00,000 Sales 15,00,000
Selling & 50,000
Distribution
Overheads
OR
a) State in brief objectives of cost accounting.
b) Prepare a cost sheet showing prime cost, works cost, Total cost of
production, cost of sales and profit from the following information related
to Chennai pvt. Ltd. Chennai.
Sales 5,00,000 Direct Wages 50,000
Direct Expenses 50,000 Factory Rent 20,000
Storekeeper salary 10,000 Salary 1,00,000
Direct Material 2,00,000 Director's fees 30,000
Showroom Rent 7,000
[5070]-5001 3
64
Q4) ABC Ltd. Furnishes following data for the month of January, 2013. Prepare
stores ledger account, pricing the material issue on the basis of LIFO method
& ascertain the value of closing stock. [10]
Date Particulars
1st Opening stock - 200 units @ Rs. 350/- per unit
9 th
Purchases - 350 units @ Rs. 300/- per unit
12 th
Issues - 400 units
19 th
Purchases - 600 units @ Rs. 320/- per unit
20th Issues - 250 units
22nd Purchases - 400 units @ Rs. 340/- per unit
24th Issues - 400 units
25th Purchases - 100 units @ Rs. 300/- per unit
28th Spoilage - 20 units.
OR
Aim Ltd. is divided into four departments P1, P2, P3 are producing
departments and S1 is a service department.
The actual costs for a period are as follows :
(Rs.) (Rs.)
Rent 2,000 Supervision 3,000
Repairs to Plant 1,200 Fire Insurance Stock 1,000
Depreciation of Plant 900 Power 1,800
Insurance of Employees 300 Light 240
Wages 15,000 Materials 10,000
Following information is available in respect of the four departments.

Particulars P1 P2 P3 S1
Area (Sq. Meters) 1,500 1,100 900 500
No. of Employees 20 15 10 5
Total Wages (Rs.) 6,000 4,000 3,000 2,000
Value of Plant (Rs.) 24,000 18,000 12,000 6,000
Value of Stock (Rs.) 15,000 9,000 6,000 -
H.P. Plant 24 18 12 6
Total Materials (Rs.) 3,000 3,000 4,000 -
Apportion the costs to the various departments on the most equitable basis.
[5070]-5001 4
65
Q5) KLM industries furnishes following information for the level of output of
1,000 units for the year 2010. [10]
Selling Price Per Unit = Rs. 100/-
Variable Cost Per Unit = Rs. 40/-
Total Fixed Cost = Rs. 30,000/-
Find :
a) P/V Ratio
b) BEP in units
c) BEP in sales
d) The amount of sales required to earn profit of Rs. 42,000/- (assuming
fixed cost in total remains same.)
OR
From the following prepare cash budget for 3 months for January. February
and March, 2012.
Month Total Sales Materials Wages Overheads
Production Selling& Dist
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
January 40,000 42,000 8,000 6,400 1,600
February 44,000 28,000 8,800 6,600 1,800
March 48,000 28,000 9,200 6,600 1,600
April 52,000 24,000 9,200 6,800 1,800
May 56,000 24,000 9,600 7,000 1,800
June 60,000 32,000 9,600 7,200 2,000
• Cash balance on January 1,2012 was Rs.20,000/-

• A new machine is to be installed at Rs.60,000/- On credit, to be repaid
by two equal installments in March & APril, 2012
• Period of credit allowed by suppliers 1 month
• Period of credit allowed to customers 1 month
• Delay in payment of overheads 1 month
• Delay in payment of wages 1 month
• Assume cash sales to be 50% of total sales.
[5070]-5001 5
66

P3960 [5070]-1001
M.B.A. - I
(101) : ACCOUNTING FOR BUSINESS DECISIONS
(2013 Pattern) (Semester - I) (Revised)
4) Your answer should be specific and to the point.
Q1) Define management accounting. Explain role of management accounting in

the global business environment. [10]
OR
a) Differentiate between management accounting and financial accounting. [5]
b) Explain the classification of costs in detail. [5]
Q2) From the following Trial Balance of Nath Enterprises, prepare Trading A/c,
profit and loss A/c and Balance sheet for the year Ended 31.3.2010 [10]
Trial Balance As on 31.3.2010
Particulars Dr (Rs.) Cr(Rs.)
Capital 90,000
Drawings 3,000
Stock on 1.4.2009 45,000
Octroi duty 800
Purchases & Sales 2,00,000 3,12,000
Returns 6,000 2,000
Salaries 10,000
Wages 14,000
Insurance 2,000
Discount Received 600
Postage 800
Debtors and creditors 60,000 64,000
P.T.O.
67
Furniture 35,000
Cash in hand 10,000
Machinery 80,000
Rent and taxes 6,000
Printing and stationery 2,000
Bank over draft 7400
Total 4,76,000 4,76,000
Adjustments:-
a) Closing stock was valued at cost L40,000/-
b) Depreciate Machinery @5%
c) Salary L2000 and wages L1000/- were outstanding.
d) Insurance L500/- was prepaid.
OR
a) Define financial statement and state its objectives. [5]
b) Explain accounting conventions in detail. [5]
Q3) On 01.3.2014 the stock of a component in the stores was 500 units @ L3
following are the receipts are issues during the month. [10]
Purchases Issued
05.03.14 : 400 units @ L4 P.U 08.03.14 300 units
11.03.14 : 500 units @ L5 P.U 14.03.14 400 units
18.03.14 : 600 units @ L6 P.U 25.03.14 500 units
When the stock was taken on 31.03.2014 a discrepancy of 50 units was
revealed. Prepare a store ledger under first in first out method.
OR
a) Classify the following items into factory, office and selling and Distribution
overheads and also give reason if any item to be excluded from cost-
sheet. [5]
i) Indirect material.
ii) Bad debts.
iii) Bank charges.
iv) Supervisors salary.
v) Travelling expenses.
vi) Donations.
vii) Interest on Debentures.
viii) Factory if insurance
[5070]-1001 2
68
b) xyz Ltd. has 3 production and 4 service departments. Expenses for

these departments as per Primary Distribution summary. [5]
Production Dept. Rs.
A 30,000
B 26,000
C 24,000
Service Dept. Rs.
D - Stores 4000
E - Time keeping 3000
F - Power 1600
G - Canteen 1000
Following information is also available in respect of the production
departments.
Particulars Dept.A Dept.B Dept.C
Horse power of machine 300 300 200
Number of workers 20 15 15
Value of stores requisition (Rs.) 2500 1500 1000
You are required to apportion the cost of service departments over the
production department. [5]
Q4) For Production of 10,000, the following are the budget expenses. [10]
Particulars PU(Rs.)
Direct Material 60
Direct Labour 30
Fixed overheads (Rs. 1,50,000) 15
Variable expenses (direct) 5
Selling expenses (10% fixed) 15
Administrative Expenses (Rs.50,000 fixed
for all level of production 5
Distribution expenses (20% fixed) 5
160
Prepare flexible budget for production of 6,000, 7,000 and 8,000 units.
OR
From the following data for May 2012, calculate
a) Material cost variance.
[5070]-1001 3
69
b) Material price variance.

c) Material usage variance.
d) Material mix variance.
Qty (kg) Rate(Rs.) Qty (kg) Rate(Rs.)
x 8000 1.05 7500 1.20
y 3000 2.15 3300 2.30
z 2000 3.30 2400 3.50
13000 13,200
Q5) The price structure of a iron manufactured by Seema electricals is as

follows:- [10]
Particulars P.U (Rs.)
Material cost 120/-
Labour cost 40/-
Veriable overheads 40/-
Fixed overheads 100/-
Total cost 300
(+) Profit 100
Selling price 400
This cost structure is based on 1000 units of iron manufactured during the
year.
Calculate P/V ratio, BEP and margin of safety. Also find out same when:-
selling price is decreased by 10%
OR
Write short notes on :- [10]
a) Cost volume profit Analysis.
b) Factors influencing pricing decision.
zzz
[5070]-1001 4
70
P3960 [5070]-1001
M.B.A. - I
(101) : ACCOUNTING FOR BUSINESS DECISION
4) Your answers should be specific and to the point.
Q1) a) Management Accounting is inevitable in todays global competitive

world. Explain .
OR
b) Explain the following Accounting concepts with suitable example:
i) Separate entity.
ii) Dual aspect.
iii) Going concern.
iv) Money measurement.
v) Cost concept.
Q2) a) Define financial statement. Explain the objectives and importance of

financial statements.
OR
b) Do you think that the financial statements of proprietary and limited
companies are same? Justify.
Q3) a) From the following information prepare the cost sheet of M/s xyz Ltd.
for the month of July 2015.
Particulars Amount (Rs)
Stock of raw material 1/7/2015 30,000
Raw material purchased 2,80,000
Stock of raw material 31/7/2015 45,000
Wages 70,000
[5070]-1001 5
71
Depreciation on plant & machinery 15,000

Factory Rent & Rates 30,000
Office rent 5,000
Discount on sales 3,000
Advertisement 6,000
Income tax paid 20,000
Sales 4,00,000
OR
b) Classify the following items into:
i) Factory overhead.
ii) Administration overhead.
iii) Selling and Distribution overhead.
iv) Items excluded from cost sheet with reason.
Sr.No. Particulars
1 Wages
2 Advertisement
3 Works managers salary
4 Income Tax
5 Travelling expenses
6 Fuel and power
7 Factory lighting
8 Office rent and taxes
9 Interest on capital
10 Printing and Stationery
11 Showroom expenses
12 Carriage outward
13 Salary
14 Directors salary
15 Postage and Telegram
16 Office lighting
17 Depreciation on plant and machinery
18 Delivery van charges
19 Warehouse expenses
20 Plant repairs and maintenance
[5070]-1001 6
72
Q4) a) Show the stores ledger entries of M/s ABC Ltd. for the month of October
2014 as they would appear when using
i) FIFO method
ii) LIFO method
Date Particulars Qty. Rate
1 Opening balance 300 60
2 Purchases 200 45
4 Issue 150 -
6 Purchases 200 50
11 Issue 150
19 Issue 200
22 Purchases 200 48
27 Issue 250
29 Purchases 150 50
30 Return to vendor,
Purchased on 29th October 20
OR
b) The New production House Ltd. has production department A, B and C
and two service department D and E. The following figures are extracted
from the records of the company
Particulars Amount
(Rs.)
General Lighting 600
Indirect wages 1,500
Power 1,500
Depreciation on machinery 10,000
The following further details are available
Particulars Total A B C D E
Floor space (sq.ft). 10,000 2,000 2,500 3,000 2,000 500
Light points 60 10 15 20 10 5
Direct wages (Rs.) 10,000 3,000 2,000 3,000 1,500 500
H.P. of machines 150 60 30 50 10 -
Value of machinery (Rs.) 2,50,000 60,000 80,000 1,00,000 5,000 5,000
You are required to show apportionment of overheads to various departments.
[5070]-1001 7
73
Q5) a) ABC company has three alternatives to produce two products, product
P and product Q.
Alternative 1 : 100 units of product P and
200 units of product Q
Fixed cost Rs. 25,000/-
Variable cost per unit Rs. 350/- of product P and Rs. 280/- of product Q
Selling price per unit Rs. 450/- of product P and Rs. 375/- of product Q
Suggest the best possible alternative to the management.
OR
b) From the following information compute:
i) Direct material price variance.
ii) Direct material usage variance.
iii) Direct material mix variance.
Particulars Standard Actual
Qty Unit Total Qty Unit Total
(kgs) price (kgs) price
Material A 10 2 20 5 3 15
Material B 20 3 60 10 6 60
Material C 20 6 120 15 5 75
Total 50 200 30 150
zzz
[5070]-1001 8
74

P4017 [5070]-102
M.B.A.
1) Q.No. 1 is compulsory.
2) Attempt any two questions from section - I & section - II.
Q1) With the help of specimen formats, explain the role of the following in the
Inventory control process:- [10]
a) Purchase Order.
b) Bin Card.
SECTION - I
Q2) With the help of suitable examples, explain the various accounting concepts
& conventions. [15]
Q3) What is Allocation, Apportionment and Absorption of Overheads? Discuss

the accounting treatment of Under & Over Absorption of Overheads. [15]
Q4) Write short notes on any three:- [15]

a) Labour Turnover.
b) Periodic Inventory Control.
c) Budget & Budgetary Control.
d) Classification of Accounts.
e) Pricing of Issues.
Q5) What is Financial Accounting? How is it different from Cost Accounting?[15]
P.T.O.
75
SECTION - II
Q6) From the following data, compute [15]

a) Material Cost Variance.
b) Material Price Variance.
c) Material Usage Variance.
d) Material Mix Variance.
Standard Actual
Quantity Rate Amount Quantity Rate Amount
(kgs) per kg (A) (A) (kgs) per kg (A) (A)
Material 500 10.00 5000.00 600 8.00 4800.00
A
Material 1000 5.00 5000.00 1200 6.00 7200.00
B
Q7) The following figures are available from the books of K Ltd. [15]
Particulars 2011 2012
Sales A 2,00,000 A 3,00,000
Loss A 20,000 -
Profit - A 30,000
Calculate:-
a) Fixed Cost.
b) Break even point sales.
c) Margin of safety for 2012.
d) Sales required to earn a profit of A 60,000.
e) Profit or Loss at a sales of A 2,50,000.
[5070]-102 2
76
Q8) Prepare a Cash Budget for the three months ending 30th June 2012 from the
following information:- [15]
Month Sales Purchases Wages Overheads
(A) (A) (A) (A)
February 14,000 9,600 3,000 1,700
March 15,000 9,000 3,000 1,900
April 16,000 9,200 3,200 2,000
May 17,000 10,000 3,600 2,200
June 18,000 10,400 4,000 2,300
Additional Information:-
a) 1/10th of sales are on cash basis.
b) Credit terms are :
i) Debtors - 50% of the credit sales are collected next month & the
balance in the following month.
ii) Creditors :- For Materials
Purchases - 2 months.
For wages - 1/4 month.
For overheads - 1/2 month.
c) Plant & Machinery will be installed in February 2012 at a cost of A96,000.
The monthly instalment of A2,000 is payable from April 2012 onwards.
d) A dividend @ 5% on preference share Capital of A2,00,000 will be paid
on 1st June.
e) Advance Income Tax is to be paid in June of A2,000.
f) Dividend on investment amounting to A2,000 is expected to be received
in June.
g) Advance on sale of vehicle to be received in June of A9,000.
h) Estimated cash & Bank balances on 1st April 2012 is expected to be
A6,000.
[5070]-102 3
77
Q9) Given below is the Trial Balance of M/s Tejas Chaudhary for the year ending
31st March 2013. [15]
Debit Balances Amount Credit Balances Amount
(A) (A)
Leasehold Land 48,000 Purchase returns 1,000

5% Government Bonds 20,000 Sales 1,02,000
Furniture 60,000 Creditors 50,000
Insurance 1,800 Discount 500
Rent 800 Int on Government

Purchases 40,000 bonds received 500
Wages 1,600 Reserve for Bad &
Carriage Inwards 600 Doubtful debts 1,500
Carriage Outwards 1,500 Capital 1,20,000

Sales Returns 2,000
Stock on 1st April 2012 20,000
Salaries 2,400
Travelling exps. 500

Debtors 60,000
Bad debts 1,000
Machinery 12,000
Loose Tools 2,500

Interest 400
Commission 400
2,75,500 2,75,500
[5070]-102 4
78
Prepare Trading A/c, Profit & Loss A/c for the year ending 31st March 2013
& a Balance sheet as on that date after considering the following adjustments:-
a) Stock on 31st March 2013 was costing A25,000 while its market value
was A30,000.
b) Outstanding Rent A400 & wages A600 to be provided for.
c) Depreciation for the year to be charged @10% p.a on Machinery. Loose

Tools to be revalued at A2,000 at the end of the year.
d) Further Bad debts to be written off A1,000. Reserve for bad & doubtful
debts to be maintained @ 5% on debtors & a 2% reserve for discount
on debtors be created.
zzz
[5070]-102 5
79

P1717 [4970]-1001
M.B.A.
101 - ACCOUNTING FOR BUSINESS DECISIONS
3) Use of calculators (as applicable) is allowed.
Q1) a) Explain in detail the role of Financial Accounting, Cost Accounting and
Management Accounting in a business organisation.
OR
b) Classify and analyse costs on the basis of following:
i) Relevant costs
ii) Irrelevant costs
iii) Differential costs
Q2) a) What is the important objectives of Financial Statements? Elaborate the

various concepts and conventions of financial statements.
OR
b) Following is the Trial Balance of Sona and Mona. They share profit and
losses in the proportion of 3:2. Prepare Trading, Profit and Loss A/c for
the year ending 31/3/2015 and Balance sheet on that date:
Trial Balance
Stock as on 1/4/2014 45,000
Purchases and Sales 1,12,500 1,87,500
Drawings:
Sona 16,500
Mona 15,000
Returns 3,600 1,500
P.T.O.
80
Wages:
Productive 5,250
Unproductive 900
Salaries 9,300
Rent, Rates and Insurance 5,100
Bad debts 600
Discount 1,950 1,500
Machinery 22,500
Building 54,300
Sundry Debtors and Creditors 76,500 45,000
Cash 1,500
Capitals:
Sona 52,500
Mona 67,500
Bank overdraft 15,000

3,70,500 3,70,500
Adjustments:
i) On 31st March 2015 the stock was valued at Rs. 28,000.
ii) Outstanding productive wages Rs. 300.

iii) Rent, Rates and Insurance include Rs. 800 paid for one year ending 30th
June 2015.
iv) Provide for doubtful debts on debtors @5%.
v) Depreciate Building @5% and Machinery @10%.
vi) Goods worth Rs. 1,250 were distributed as free samples for which no
record has been made in the books.
[4970]-1001 2
81
Q3) a) The following is the record of receipts and issues of certain material in
the factory during the week of April 2015.
1/4/15 Opening stock 50 tonnes @ Rs. 10 per tonne.
Issued 30 tonnes.
2/4/15 Received 60 tonnes @ Rs. 10.20 per tonne.
3/4/15 Issued 25 tonnes (stock verification reveals loss of one tonne)
4/4/15 Received back 10 tonnes (previously issued at Rs. 9.15 per

tonne)
5/4/15 Issued 40 tonnes.
6/4/15 Received 22 tonnes @ Rs. 10.30 per tonne.
7/4/15 Issued 38 tonnes
Use LIFO method and show at what prices you will issue the material.
OR
b) A Factory has three production and two service departments. The

following figures have been extracted from the financial books.
Particulars Amt (Rs.)
Supervision 6,000
Repairs of Plant & Machine 3,000
Rent 8,000
Light 2,000
Power 3,000
Employers contribution to ESI 600
Canteen Expenses 1,000
The following further details of production departments A, B and C and

service departments D & E are furnished.
[4970]-1001 3
82
Particulars A B C D E
Direct Wages (Rs.) 4,000 3,000 2,000 2,000 1,000
Area of Square Feet 2,000 1,000 500 500 100
No. of employees 50 40 20 20 10
Value of Machine (Rs.) 10,000 5,000 3,000 3,000 1,000
Ligh Point (Nos) 80 60 30 30 20
Horse Power of
Machines (Hp) 200 100 50 50 20
Q4) a) The statement given below gives the flexible budget at 60% capacity.
Prepare a tabulated statement giving budget figures at 75% capacity and
90% capacity.
i) Direct Material Rs. 1,60,000 (100% variable)
ii) Direct labour Rs. 40,000 (80% variable)
iii) Indirect material and spares Rs. 48,000 (100% Variable)
iv) Depreciation Rs. 60,000 (100% Fixed)
v) Indirect Labour Rs. 40,000 (40% Fixed)
vi) Rent Rs. 12,000 (100% Fixed)
vii) Electric Power Rs. 8,000 (40% Fixed)
viii) Repairs and Maintenance Rs. 20,000 (40% Variable)
ix) Insurance and Machinery Rs. 12,000 (100% Fixed).
OR
b) From the following calculate
i) Material cost variance
ii) Material usage variance
iii) Material price variance separately for A and B.
[4970]-1001 4
83
Material Std. Qty. Price Actual Qty. Price
(kg) (Rs.) (kg) (Rs.)
A 20 8 22 4.75
B 25 10 28 8.50
45 40
Q5) a) The following information is given:

i) Fixed Cost Rs. 13,000.
ii) Variable Cost Rs. 15,000.
iii) Total Cost Rs. 28,000.
iv) Net Profit Rs. 2,000
v) Net Sales Rs. 30,000
Find out:
1) BEP.
2) Profit for Sales Volume Rs. 50,000.
3) The volume of sales to make a net profit of Rs. 10,000.
OR
b) Rahul and Sujatha have a unit each for manufacturing T.V. sets. Details
are as under.
Rahul (Rs.) Lakhs Sujatha (Rs.) Lakhs
Sales 300 120
Variable Costs 220 90
Fixed overhead 40 20
Rahuls unit runs at 100% capacity and Sujatha at 60% capacity. They
decide to merge the two units to form Kumar Bros. Calculate
i) Post merge P/V ratio and BEP.
ii) Profit of the merged firm at 75% capacity.
E E E
[4970]-1001 5
84
P1717 [4970]-1001
M.B.A.
101 - ACCOUNTING FOR BUSINESS DECISIONS
Q1) a) Define Management Accounting? Explain the relationship between

Financial, Management & Cost accounting in detail?
OR
b) Write short Notes on: (Any 2)
i) Dual Aspect Concept.
ii) Accounting Period Concept.
iii) Convention of Conservatism.
Q2) a) What do you mean by Financial Statements? Give the format of Financial
Statements of Sole proprietorship firm?
OR
b) Give the disclosure requirements of following items of Balance Sheet as
per Schedule VI of Companies Act, 1956.
i) Miscellaneous Expenditure.
ii) Secured Loans & Unsecured Loans.
Q3) a) Write Notes On:

i) Objectives of Cost Accounting.
ii) Elements of Cost.
OR
6
85
b) From the following information, prepare a Cost Sheet of Radiance Co.

Ltd.
Sales 7,80,000
Purchases 4,83,375
Salaries : Office 40,350
Selling 22,950 63,300
Rent & Taxes: Office 2,700
Selling 1,350 4,050
Consumable Stores 3,850
Depreciation on Plant & Machinery 13,950
Advertising 4,700
Indirect Materials 2,350
Travelling expenses 3,000
Opening Stock of Raw Material 1,14,375
Sundry Expenses: Office 16,500
Selling 8,250 24,750
Closing Stock of Raw Material 1,47,750
Dividend on Shares 13,500
Preliminary Expenses 4,500
Discount on issue of Shares 6,000
[4970]-1001 7
86
Q4) a) Following transactions have taken place in respect of a material during

March, 2013.
Date:
1 Opening balance 500 units @ Rs. 6 per unit.
5 Purchased 100 units @ Rs. 7 per unit
7 Issued 400 units

9 Purchased 300 units @ Rs. 8 per unit.
19 Issued 250 units.
22 Issued 50 units.
25 Purchased 300 units @ Rs. 7.50 per unit.

30 Issued 250 units.
Prepare the stores Ledger account assuming that the issues are valued
on weighted Average Basis.
OR
b) Superclass Co. Ltd. has 3 production departments X, Y and Z and two

service departments A & B.
The following estimated figures for a certain period have been made
available:
Rs.
Rent & Rates 10,000
Lighting & Electricity 1,200
Indirect Wages 3,000
Power 3,000
Other expenses 20,000
The following further details are also available:
[4970]-1001 8
87
Total X Y Z A B
Floor space (Sq. Mt) 10,000 2,000 2,500 3,000 2,000 500
Light Points (Nos.) 120 20 30 40 20 10
Direct Wages 20,000 6,000 4,000 6,000 3,000 1,000
Horse Power of Machines 300 120 60 100 20 -

Cost of Machinery 1,00,000 24,000 32,000 40,000 2,000 2,000
Working Hours - 4,670 3,020 3,050 - -
You are required to prepare Primary distribution summary of overheads.
Q5) a) The Directors of Steel Manufacturing Co. gives the following

information.
Sales - (1,00,000 units) - Rs. 1,00,000
Variable Costs - Rs. 40,000
Fixed Costs - Rs. 50,000
i) Find out P/V Ratio, Break Even Point & Margin of Safety.
ii) In case of 20% increase in Physical sales volume, calculate P/V
Ratio, Break Even Point & Margin of Safety.
OR
b) Prepare a cash budget for the month of May, June & July, 2011 on the
basis of the following information:
Month Credit Credit Wages Manufacturing Office Selling
Sales Purchases Expenses Expenses Expenses
March 60,000 36,000 9,000 4,000 2,000 4,000
April 62,000 38,000 8,000 3,000 1,500 5,000
May 64,000 33,000 10,000 4,500 2,500 4,500
June 58,000 35,000 8,500 3,500 2,000 3,500
July 56,000 39,000 9,500 4,000 1,000 4,500
August 60,000 34,000 8,000 3,000 1,500 4,500
[4970]-1001 9
88
i) Cash Balance on 1st May 2009, 8,000 Rs.

ii) Plant costing Rs. 16,000 is due for delivery in July, payable 10% on
delivery & the balance after 3 months.
iii) Advance tax of Rs. 8,000 each is payable in March & June.
iv) Period of credit allowed by Suppliers is 2 months & to customers

is 1 month.
v) Lag in Payment of Manufacturing expenses is ½ month.
vi) Lag in payment of office & selling expenses - 1 month.
E E E
[4970]-1001 10
89

P3784 [4870]-1001
M.B.A.

3) Use of Simple calculator is allowed.
Q1) a) Management accounting is an important tool for planning, control &

decision making. Explain this statement. [10]
OR
b) Write short notes on: (Any 2) [10]
i) Going Concern Concept
ii) Business Entity concept
iii) Convention of consistency
Q2) a) Explain the importance & objectives of financial statements. [10]

OR
b) Give the disclosure requirements of following items of Balance Sheet as
per schedule VI of companies Act- [10]
i) Fixed Assets
ii) Reserves & Surplus
Q3) a) Define Cost Accounting? Also explain the various types of costs? [10]
OR
b) Prepare Cost Sheet from the following information: [10]
Rs.
Raw Materials Consumed 40,000
Wages paid to labourers 10,000
P.T.O.
90
Directly chargeable expenses 2,000

Oil & Waste 100
Wages of Foreman 1,000
Storekeepers Wages 500
Electric Power 200
Lighting : Factory 500
Office 200 700
Rent : Factory 2,000
Office 1,000 3,000
Repairs & Renewals:
Factory Plant 500
Machinery 1,000
Office premises 200 1,700
Depreciation:
Office Premises 500
Plant & Machinery 200 700
Consumable stores 1,000
Managers Salary 2,000
Directors fees 500
Office Printing & Stationery 200
Telephone charges 50
Postage & Telegrams 100
Salesmens Commission & Salary 500
Travelling Expenses 200
Advertising 500
Warehouse charges 200
[4870]-1001 2
91
Q4) a) The following transactions took place in respect of a material item: [10]
Data Receipt Quantity Rate Issue Quantity
March 2 200 Rs.20
March 3 300 Rs.24
March 15 250
March 18 250 Rs.26
March 20 200
Prepare a stores Ledger A/C, using
i) Simple average method
ii) Weighted average method
OR
b) X Ltd. has two production departments & two service departments &
provides you the following data: [10]
Production Dept. Service Dept.
P1 P2 S1 S2
Direct Materials 40,000 30,000 20,000 10,000
Direct Wages 15,000 20,000 5,000 10,000
Floor Area (sq.Feet) 5,000 4,000 3,000 2,000
Value of plant & machinery 50,000 60,000 20,000 10,000
Value of stock 35,000 25,000 5,000 5,000
No.of Workers 10 50 25 25
No.of light points 200 50 25 25
Horse Power of machines 50 25 15 10
The indirect expenses for the period were:
Factory Rent, Rates, Taxes & Repairs Rs.14,000
Depreciation, Insurance & Repairs of Machinery Rs.28,000
Insurance of stock Rs.7,00
Supervision & staff welfare expenses Rs.2,000
[4870]-1001 3
92
Stores Overheads Rs.1,000

Lighting & Heating Rs.3,000
Power Rs.1,000
Prepare the statement showing the apportionment of overheads.
Q5) a) The sales turnover & profit during two years were as follows: [10]
Year Sales(Rs.) Profit(Rs.)
2011 1,40,000 15,000
2012 1,60,000 20,000
You are required to calculate:
i) P/v Ratio
ii) Sales required to earn a profit of Rs. 40,000
iii) Profit when sales are Rs.1,20,000.
OR
b) The expenses for the production of 5,000 units in a factory are given as
follows: Per Unit Rs. [10]
Materials 50
Labour 20
Variable Overheads 15
Fixed Overheads (Rs.50,000) 10
Administrative Expenses (5% variable) 10
Selling Expenses (20% Fixed) 6
Distribution Expenses (10% Fixed) 5
Total Cost of sales per unit Rs.116
You are required to prepare a budget for the production of 7,000 units.
l l l l
[4870]-1001 4
93
P4445 [4870]-1001
M.B.A.
(2013 Pattern) (Semester - I) (Revised)
Time : 2 ½ Hours] [Max. Marks : 50

3) Use of calculators as applicable is allowed.
Q1) a) What are the key areas of difference between Financial, cost and
management accounting? Elaborate in detail.
OR
b) Role of Management accounting is increasing day by day in the global
business environment. Explain the statement.
Q2) a) Write in detail the various concepts and conventions of financial

accounting.
OR
b) From the following transaction of Mrs. Sharma and company you are
required to prepare trading, profit and loss A/C and balance sheet for the
year ended 31-3-2015.
Particulars Rs. Particulars Rs.
Sales 3,55,000 Sundry debtors 30,000
Sales Returns 5,000 Rent Received 3,000
Purchase 2,52,000 Discount Received 3,000
Return out wards 2,000
Carriage out ward 1,000 Discount allowed 2,000
Carriage inward 5,000 Commission allowed 1,000
Opening stock 40,000 Taxes and Insurance 3,000
Direct expenses 5,000 Provision for doubtful
Capital 60,000 Debts 2,000
Furniture 5,000 Bad debts 1,500
Bank Over draft 10,000 Salaries 20,000
Plant and Machinery 40,000 Dividend paid 5,000
Building 45,000 General Exp 5,000
Sundry creditors 25,000 Rent paid 3,000
Bills payable 30,000 Bills Receivable 21,500
5
94
Additional Information
i) Stock at the end Rs. 42,000
ii) Depreciation made on plant and machinery Rs.2,000 and Building
Rs.1,000.
iii) Provision for doubtful Debts@5% on sundry debtors.
iv) Out standing Rent Rs.1,000.
v) Prepaid salaries Rs.1,000.
vi) Interest on capital @5%.
Q3) a) The following are the receipts and issues of coal in a factory for the
month of January 2015.
Jan 1 Opening stock 200 tonnes@Rs460 per tonne.
Jan 3 Issued 140 tonnes
Jan 6 Purchased 350 tonnes @ Rs.450 per tonne
Jan 8 Condemned due to deterioration in quality and transferred to
scrap 30 tonnes
Jan 17 Purchased 200 tonnes @ Rs.480 per tonne
Jan 25 Purchased 180 tonnes @ Rs. 470 per tonne
Show the stores ledger account under FIFO system.
b) A company has three production departments and two service departments
their primary distribution costs are as follows:
Production Dept Service Dept
A. Rs.7,810 X Rs. 4,000
B. Rs. 12,543 Y Rs.2,600
C. Rs. 4,547
[4870]-1001 6
95
The expenses of service department are charged on a percentage basis

as follows.
Particulars A B C X Y
Service Dept X 30% 40% 20% - 10%
Service Dept Y 10% 20% 50% 20% -
Show secondary Distribution under
a) Repeated Distribution Method
b) Simultaneous Equation Method
Q4) a) A company expenses to have Rs.37,500/- cash in hand on 1st January

2015 and requires you to prepare an estimate of cash position during the
three months January 2015 to March 2015. The following information is
supplied to you
Sales Purchases Wages Factory Office Selling
Expenses Expenses Expenses
Rs. Rs. Rs. Rs. Rs. Rs.
Nov 14 75,000 45,000 9,000 7,500 6,000 4,500
Dec 14 84,000 48,000 9,750 8,250 6,000 4,500
Jan 15 90,000 52,500 10,500 9,000 6,000 5,250
Feb 15 1,20,000 60,000 13,500 11,250 6,000 6,570
March 15 1,35,000 60,000 14,250 14,000 7,000 7,000
Other information
i) Period of credit allowed by suppliers - 2 months
ii) 20% of sales is for cash and period of credit allowed to customers
for credit sales is one month
iii) Delay in payment of all expenses 1 month.
iv) Income Tax of Rs.57,500 is due to be paid in March 15th 2015.
v) The company is to pay dividend to shareholders and bonus to
workers of Rs.15,000 and Rs.22,000 respectively in the month of
Jan
vi) New plant has been purchased and cash to be paid in the month of
february 2015. It will cost Rs. 1,20,000.
[4870]-1001 7
96
b) From the following information compute

i) Material Mix variance and
ii) Material usage variance
Standard Actual
Qty Unit Total Qty Unit Total
Material
kg Price (Rs) kg Price (Rs)
(Rs) (Rs)
A 10 2.00 20.00 5 3.00 15.00
B 20 3.00 60.00 10 6.00 60.00
C 20 6.00 120.00 15 5.00 75.00
TOTALS 50 200.00 30 150.00
Q5) a) The price structure of a pocket radio manufactured by M/s XYZ Ltd is
as follows.
Per Radio (Rs)
Material Cost 120
Labour Cost 40
Fixed overheads 100
Total Cost 300
Profit 100
Selling price 400
The cost structure is based on 1,000 radio per year. In order to face the
increasing intensity of the competition the company wants to reduce the
price without affecting the existing profit
You are required to find out sales volume if:
i) The selling price is decreased by 10%
ii) The selling price is decreased by 20%
b) The following information is obtained from ABC Ltd and XYZ Ltd in a
year
Particulars ABC Ltd XYZ Ltd
(Rs) (Rs)
Sales 3,00,000 3,00,000
() Variable Cost 2,00,000 2,25,000
() Fixed Cost 50,000 25,000
Estimated Profit 50,000 50,000
You are required to calculate for each company
i) Profit valume ratio and Break Even point
ii) Margin of safety
yyy
[4870]-1001 8

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1

Total No. of Questions : 5] SEAT No. :

Q1) Explain any five concepts used in Financial Accounting. [10]

i) Closing stock was valued at Rs. 54,220.

ii) Provision for bad debts is to be made on debtors at Rs. 500.

iii) Allow interest on capital at 5% p.a.

iv) Depreciate plant and Machinery at 10% p.a.

Particulars Dr. (Rs.) Cr. (Rs.)

Sundry Creditors 46,000

Cash at Bank 3,000

Cash in hand 1,400

Opening stock 16,000

Bad debts 1,000

Discounts 400 1,000

Purchases and sales 1,10,000 1,68,000

Carriage outward 3,600

Plant and Machinery 20,000

Sales Returns 8,000

Purchase Returns 4,000

Particulars Dr. (Rs.) Cr. (Rs.)

Carriage Inward 1,000

Furniture and fixtures 12,000

Insurance and office Expenses 3,000

Bills Receivables 12,000

Provision for Doubtful Debts 2,000

Sundry Debtors 40,000

ii) Insurance prepaid Rs. 200.

iv) Maintain R.D.D. at 6% on Debtors.

v) Closing stock Rs. 20,000. [10]

Q3) a) Explain in brief classification of costs as per variability. [5]

b) From the following information prepare cost sheet.

Direct material consumed 1,39,000

Direct wages 55,500

Factory overheads 29,200

Administrative overheads 34,875

Opening stock of WIP 5,000

Closing stock of WIP 4,000

Opening stock of Finished Goods 7,500

Closing stock of Finished Goods 5,700

Selling and Distribution overheads 30,150

ii) Works cost

iii) Cost of production

iv) Cost of Goods sold

a) What are the objectives of Cost Accounting. [5]

Following information about material is extracted from a manufacturing

Material A = 110 kg @ Rs. 4.50 per kg

Material B = 90 kg @ Rs. 5.40 per kg

b) Actual Mix for 450 units is as under:

Material B = 400 kg @ Rs. 5.50 per kg

i) Material cost variance

iii) Material Mix variance

iv) Material Usage variacne [10]

Total No. of Questions : 5] SEAT No. :

Time : 2½ Hours] [Max. Marks :50

Q1) a) Distinguish between Financial Accounting and Management Accounting.

Particulars Dr. (Rs.) Cr. (Rs.)

Discount paid 5,000

Interest on Bank loan 5,000

Cash in hand 5,000

Purchase Returns 10,000

Bank Loan 1,50,000

Bills Payable 66,000

Legal charges 500

Material A = 110 kg @ Rs. 4.50 per kg

Material B = 90 kg @ Rs. 5.40 per kg

Material B = 400 kg @ Rs. 5.50 per kg

State under which the following Nature as expenses would generally