Reference no: EM133494245

Part 1:

Question 1: The following is the Balance Sheet of Karim ltd) As on 31 March ,2006:

Liabilities             Rs.                             Assets.                  Rs.

Share capital         1,50,000          Fixed assets                                                92,000

Creditors                                         40,000          Bills Receivable               10,000

Bills payable            20,000          Stock                           80,000

      Provision for tax 15,000          Bad debts                                                   30,000

Prepaid expenses              3000

Short term expenses          5000

Cash                              5000

                        2,25,000             2.25.000

Explain the liquidity of the company

Question 2: A stove manufacturer sells to retailers on terms 2% discount in 10 days The Debtors and brills Receivable at the end of December of past two years and Net Sales for all these two years are as follows

              2009(Rs)                  2009(Rs)

Debtors     27,421                    16966
Bills Receivable 2.106                1,843 
Net Sales   1,34,239                 1,68,696

Find out Average Collection period for each year and interpret them

Question 3: What are the conventions of Management Accounting?

Question 4: From the particulars given below calculate P/V Ratio and with the help of that ratio find out the following (i) Fixed costs (ii) Contribution for both the periods (iii) Variable costs for 2000 and 2001 (iv) Profit, when sales are Rs 2.00,000 (v) Sales required to earn a profit of rs 40.000 (vi) sales to have a contribution of Rs 80,000

Year           Sales (Rs.)            Profit (Rs.)
2000            2,40,000              18.000
2001            2,80.000              26,000

Question 5: Prepare a flexible budget for a production level at 80% and 100%

Production at 50% capacity, 5000 units
Raw Materials Rs 80 per unit
Direct Labour Rs. 50 per unit
Variable Expenses Rs. 10 per unit
Factory Over head Rs. 50,000 (50% fixed)
Office Overhead Rs. 60,000 (40% fixed)

Question 6: Define working capital How will you classify it?

Question 7: From the following information, calculate Material Cost Variance.

Standard Material                    Actual Material
Qty.Price                                  Qty. Price     
(Ton) (Rs)                               (Ton) (Rs.)

Question 8: What is marginal cost Analysis? Explain its objects, importance and limitations.

Part 2:

Question 1: A company produces a standard product. The estimated costs per unit are as follows: Raw material Rs 5, Direct labour Rs.4, Variable overheads Re. 1. The semi-variable costs are : Indirect materials Rs.530, Indirect labour Rs.350, Maintenance and reparis Rs.275.The variable costs per unit included in semi-variable expenses are : Indirect materials Rs.0.06, Indirect labour Rs.0.10 Maintenance and repair Rs 0.15. The fixed costs are : Factory Rs.2,000, Administration Rs.3,000, Selling and distribution Rs.3,000. 00 The above costs are for 50% normal capacity producing S00 units. The selling price is Rs.30 per unit. Prepare flexible budget for 60%, 80% and 100%normal capacities with the help of above.

Question 2: What is 'Fund Flow, Discuss its rational and Examine its uses to the management.

Question 3: The gross profit of Shashi (Ltd) for 2005 is Rs.80,000. It is one- fourth of year's sale. Of the total sales 3/4 is on credit The stock turnover is 10 times and average collection period is 15 day (360 days in a year). Is 4 times and long-term debt to equity is S0%. Shareholders equity is Rs. 40,000.The current ratio is 2. Compute (i) Amount of creditors. (ii) Amount of Long-term debt, (iii) Amount of cash-in¬hand, (iv) Amount of Debtors, (v) Value of closing inventory.(vi) Value of Fixed assets.

Question 4: What is working capital? What are its Components? Explain Fixed working Capital and Variable working Capital.