Management Accounting Past Paper PDF - Gujarat Technological University S2023

Seat No.: ________ Enrolment No.______________ GUJARAT TECHNOLOGICAL UNIVERSITY MBA– SEMESTER -I - EXAMINATION- SUMMER-2023 Subject Code: 4519201 Date:...

Seat No.: ________ Enrolment No.______________ GUJARAT TECHNOLOGICAL UNIVERSITY MBA– SEMESTER -I - EXAMINATION- SUMMER-2023 Subject Code: 4519201 Date: 11/07/2023 Subject Name: Management Accounting Time: 02:30 PM TO 05:30 PM Total Marks: 70 Instructions: 1. Attempt all questions. 2. Make Suitable assumptions wherever necessary. 3. Figures to the right indicate full marks. 4. Use of simple calculators and non-programmable scientific calculators are permitted. Q.1 Define the terms 14 (a) Solvent (b) Creditor (c) Trade Discount (d) Stock (e) Apprentice Premium (f) Bills Receivable (g) Liabilities Q.2 (a) Identify the Accounting Concepts: (Write only the name of the concept) 07 1. The production manager is interested in recording good industrial relations with clients in the books of accounts. 2. It is believed that the business of the company will last for coming 20 years only. 3. The goods were sent on approval basis the business has not recorded the same as sales. 4. The house rent paid by the entrepreneur is not shown as a business expense. 5. The outstanding salary of Rs.5,000 is shown in the books of the accounts. 6. The market value of the building is Rs.1,00,00,000 but it is shown in the books of accounts at the purchase price of Rs.10,00,000. 7. The company purchased pencils of Rs.500, these had all been issued from stock and were still in use at the end of the year. (b) Journalize the following transaction in the books of M/s. Success Ltd to provide 07 consultancy services. 1. Seema invested cash in M/s. Success Ltd, Rs.20,000. 2. Billed customers for services provided Rs.5,600. 3. Paid Assistant’s Salary Rs.600. 4. Bought computer on credit, Rs.4,400. 5. Received cash in full settlement from customers billed, earlier Rs.1,350 against Rs.1,400. 6. Received fee for professional services, Rs.8,250. 7. Paid dividends, Rs.1,100. Page 1 of 4  OR (b) State the difference between the Financial Accounting Vs. Management 07 Accounting. Q.3 (a) Prepare a Cost-Sheet for the year ended 31.12.2018 for M/s. Suman Enterprise 07 Ltd. Particulars Rs. Stock of finished goods (01.01.2018) 6,000 Stock of raw-materials (01.01.2018) 40,000 Work-in-Progress (01.01.2018) 15,000 Purchase of raw materials 4,75,000 Carriage Inwards 12,500 Factory rent and taxes 7,250 Other production expenses 43,000 Stock of Goods (31.12.2018) 15,000 Wages 1,75,000 Work Manager’s Salary 30,000 Factory Employees’ Salary 60,000 Power Expenses 9,500 General Expenses 32,500 Sales for the year 8,60,000 Stock of raw materials (31.12.2018) 50,000 Work-in-Progress (31.12.2018) 10,000 (b) Write short-note on Indian Financial Reporting Standard (IFRS). 07 OR Q.3 (a) Explain the nature of Product Cost and Period Cost. How does it affect the net 07 income of a business enterprise? (b) Sarthak Enterprise purchased a machinery for Rs.2,00,000 on 1st April, 2016. The 07 machinery is depreciated @ 10% per annum on the cost. On 1st October, 2018, the machinery was sold for Rs.1,20,000. Draw the Machinery Account and Provision for Depreciation Account for the year ending on 31st March, 2017, 2018 and 2019. Q.4 (a) Write and short-note on Break-Even Analysis. Support your answer with 07 appropriate numbers. (b) The accounts of a Company M/s. Shakti Ltd are expected to reveal a profit of 07 Rs.14,00,000 after charging fixed costs Rs.10,00,000 for the year ended 31st March, 2018. The selling price of the product is Rs.50 per unit and variable cost per unit is Rs.20. Market investigations suggest the following responses to the price changes: Alternatives Selling Price Reduced By Quantity Sold Increased By I 5% 10% II 7% 20% III 10% 25% Evaluate these alternatives and state which of the alternatives, on profitability consideration should be adopted for the forthcoming years. Suppose the available raw-material is only 80,000kgs (1kgs of raw-material is needed for making 1unit) then out of the three alternatives which alternative should be selected? Compute the profit in the selected alternative. OR Page 2 of 4 Q.4 (a) Discuss Process Costing, its applications and features. 07 (b) The Fair Deal Granary was not maintaining a perpetual inventory system for its 07 stocks unit recently. Only physical inventory was taken at the end of each month. The physical inventory at the end of December 2007 showed 200 kgs of fine rice at Rs.212.25 per bag. The following purchases were made in January, 2008: 3rd January 400 bags at Rs.218.00 per bag 10th January 900 bags at Rs.223.50 per bag 15th January 400 bags at Rs.220.00 per bag 28th January 700 bags at Rs.213.00 per bag 30th January 300 bags at Rs.224.00 per bag On 31st January, 2008 the physical stock was 1,200 bags. You are required to calculate the value of the closing stock on 31st January, 2008 according to Last- In-First-Out (LIFO) and Weighted Average Cost Method (WAM). Valuation of closing stock is highest under which method. Q.5 The following Balance-Sheets are give of M/s. Supreme Ltd. Liabilities 2011 2012 Assets 2011 2012 (Rs.) (Rs.) (Rs.) (Rs.) Equity Share 3,00,000 4,00,000 Goodwill 1,15,000 90,000 Capital Redeemable 1,50,000 1,00,000 Land and 2,00,000 1,70,000 Preference Share Building Capital General Reserve 40,000 70,000 Plant and 80,000 2,00,000 Machinery Profit and Loss 30,000 48,000 Debtors 1,60,000 2,00,000 Account Proposed 42,000 50,000 Stock 77,000 1,09,000 Dividend Creditors 55,000 83,000 Bills 20,000 30,000 Receivable Bills Payable 20,000 16,000 Cash in 15,000 10,000 Hand Provision for 40,000 50,000 Cash at Bank 10,000 8,000 Taxation Total 6,77,000 8,17,000 Total 6,77,000 8,17,000 It is also given that: 1. Depreciation of Rs.20,000 on land and building and Rs.10,000 on plant and machinery had been charged in 2012. 2. Interim dividend of Rs.20,000 had been paid in 2012. 3. Income tax Rs.35,000 had been paid during 2012. (a) Prepare Cash Flow from Operating Activities. 07 (b) Prepare Cash Flow from Investing and Financing Activities and find the closing 07 cash and bank balance. OR Page 3 of 4 Q.5 (a) From the following balances of Prapti Ltd. Prepare the Vertical Balance-Sheet. 07 Also prepare the necessary schedule: Particulars (Rs.) Particulars (Rs.) Equity Share Capital 13,00,000 Advances to Employees 75,000 General Reserve 15,000 Discount on Issue of 6,250 Debentures 12% Debentures 2,00,000 Tools and Equipments 1,87,500 Land and Building 7,77,485 Gratuity Fund 1,50,000 Goodwill 5,00,000 Debtors 69,260 Bank Overdraft 1,22,550 Cash at Bank 78,580 Proposed Dividend 41,000 Stores and Spares 88,900 Prepaid Insurance 12,500 Profit and Loss A/c (Cr.) 10,745 Mutual Fund 34,000 Bills Receivables 22,300 Investments Pre-Paid Salary 50,000 Sundry Creditors 45,000 Interest Payable 16,200 Bills Payables 1,280 (b) The following are the ratios relating to the activities of Samarth Traders Ltd. 07 Debtors Velocity 3 Months Stock Velocity 8 Months Creditors Velocity 2 Months Gross Profit Ratio 25% Net Profit Ratio 15% Number of Shares 1,00,000 Price/Earning Ratio (P/E) 6times Gross Profit for the current year ended 31st December amounted to Rs.4,00,00. Closing stock of the year is Rs.10,000 above the opening stock. Bills Receivables amount to Rs.25,000 and Bills Payables amount to Rs.10,000. Find out the following. Assume all sales to be credit sales. a) Sales b) Sundry Debtors c) Closing Stock d) Sundry Creditors e) Net Profit f) Earnings Per Share g) Market Price Per Share ************* Page 4 of 4