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$ec -D'lRollNo.... tJ te) O. c.\,lu\ectrA egp(A. tuTotalNo.of Questions071

- - 0 tTutalNo. fbug., r OAPaper D [M8103]

(Please fill this Paper ID in OMR Sheet )

MBA (Sem. 1")ACCOUNTTNG FOR MANAGEMENT (MB-103)Time : 03 Hours Maximum Marks : 60Instruction to Candidates:

1) Section A is Compulsory.2) Attempt any Four questionsrom Section B.

Section- A(10x2=20)I)

a) "The emphasisof financial accounting s different from that of CostAccounting". Comment.b) Explain the steps in sequenceorm) involved n the accounting ycle.c) "Depreciation s an important sourceof funds (working capital)".Doyou agree. ustifyyour answer.d) What do you meanby CashFlow Statement?e) "Fixed Costsare really variabie.The more you produce he less heybecome".Do you agree?Expiain.0 DistinguishbetweenMaterials Price Varianceand MaterialsUsageVariance.g) During the currentyear,AB Ltd. showeda profit of Rs.1,80,000 n asale of Rs.3O00,000. he variableexpenses ere Rs.21,00,000.You are required o work out:

(i ) Break-even ales t present(ii) Break-even ales,f variableexpensesncrease y 5 percent.

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h) .

i)

l ' . , . 1 , . . i . ' ,-What.art-rhe'pdirits-of siririilrlty ahd'pitlhtr of differencebetweenbudgetsand standard osts?DefineHumanResourceAccounting.Enlist the advantages f HumanResource ccounting.How doesActivity BasedCostingdiffer from the traditionaicostingapproach?

j)

Section- B (4x10=40)Q2) From the ollowing Trial Balanceextracteclrom the booksof Ravi.preparea Trading Account, Profit and Loss Account for the year ending 3 tst

March, 2006 anda BalanceSheetas on that date.

CapitalDrawingsPlant & MachineryHorses& CartsDebtorsCreditorsPurchases SalesWagesCashat bankSalariesRepairsOpeningStockRentManufacturingExpensesBills PayableBad DebtsCarriage

IJr"(Rs.)1,700

12, i i002,6ACI3,6002,404

8002.600

800190

1,60045015t)500160

Cr.(Rs.)

2 .6004,240

2,350

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The foilor,vingadjustinents re to be madb:(a) Clos ingStockRs.1,600.(b) Depreciate lantandMachinery lATo;Horses& carts 157a(c) Allow interest n capitalat 57op.a.fd) Rs.150 s due or wages(e) Paid Rs.50as Rent n advance.

Q3) Explain. n detail, he differentmethods serJor analysis nd nterpretationof financialstatements.Q4) The follorving rrforinationwas aken rom the financialstatements f XYZLtd. (anrountn thousand f rupees)

Particulars Year 1 Y ear2 Ycar 3TotalAssetsCreditSalesCost of GoodsSoldCashDebtorsInventoryNet Fixed AssetsCreditorsShort-terrnDebtLong-termDebtliquity

75042045050

15013012075

125125t25

85052059560

165160264

85175185200

860550645

55180170250100t701752r0

Calculatebllowing ratios(indicatingefficient use of assets) nd discusspotentialsources f trouble.(a) CurrentAssetsTurnover(b) Debtors' furnovet(c) Inventory Turnover(d) Fixed AssetsTurnover(e) Total AssetsTurnoverNote: Debtors and Inventory at the end can be taken where openingbala:rccs renot availatrle.

QS) DiscusstypesofJ-9008

in detail. he variousbasisof classification f cost and variouscost.-3-

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Q6) XYZ Ltd. operates chainof shoestores. he stores ell 10 differentstylesof men'sshoes ith dentical urchaseosts ndsellingprices. hecompanyis trying to determinehe desirabilityof openinganother tore,whichwouldhave he following expense ndrevenue elationships er pair.Variable data:

SellingPriceCost of shoesSalesmen's ommissionTotal VariableExpenses

AnnualFixedExpenses:RentSalariesAdvertisingOtherFixed ExpensesTotal Fixed Expenses

Rs.30.0019.501.5021.00Rs.

60,0002,00,000

80,00020,0003,60,000

Required o calculatehe following. (consider achquestion eparately)(a) What is the Annual Break-E,ven oint in salesamount and in unitsales?(b) If 35,000pairsof shoesare sold,what would the store'snet incomebe'?(c) If the storemanagerwas paid Rs.0.30per pair as commission,whatwould the annual break-evenpoint be in salesamount and in unitsales?(d) Ref'er o the originaldata. f the storemanagerwas paid Rs.0.30perpairascommission n eachpairsold n excess f the break-even oint,what wouldbe the store'snet ncome f 50,000pairswere soid?(e) Refer o the original data.If sales ommissions ere discontinuednfavour of Rs.81,000ncreasen fixed salaries, hat would the annualbreak-cven oint be in amountand n unit sales?

87) Define a Responsibilit"v"entre.Why are responsibilitycentrescreated?Explain he variouskinds of responsibility entres.

xx)K-4-J-9008