Management Accounting — Winter 2018

Livestock

Contribution

Trade Discount

Bills Receivable

Fictitious Assets

Current Ratio

Define the terms

Solvent

State the difference between the Financial Accounting and Cost Accounting

Journalize the following transactions in the books of Mr. Mehta for March, 2018: 1. Started business with cash Rs.20,00,000. 2. Purchased a machinery from Walia Engineering by paying cash of Rs.9,00,000 and paid installation charges Rs.50,000 in cash. 3. Sold goods costing Rs.40,000 to Anita for cash at a profit of 20% on sales less 10% trade discount and charged 8% GST. 4. Received Rs.975 from Hari Krishan in full settlement of his account for Rs.1,000. 5. Sold goods to Shayam on credit Rs.10,000 and paid cartage of Rs.100 (to be charged from customer). Also Prepare a CASH LEDGER ONLY.

On 1st January 2002, Adani Ltd purchased a second hand machine for Rs.1,00,000. On 30th September, 2003, this machine is sold for Rs.50,000. A new machine of Rs.2,00,000 was purchased on 1st October, 2003.Depreciation is to be provided at 20% according to Written Down Value Method (WDV). Prepare the machinery account for the first three years assuming that the accounts are closed on 31st March each year. Working note should be the part of the answer.

Write a short-note on any three Classification of Cost and draw out the format of Unit Costing.

From the following details prepare a summarized balance sheet of Anitha and Company as on 31.12.2018. Fixed assets to net-worth: 0.75:1 Current ratio 2:1 Liquid ratio 3:2 Reserves included in Proprietors’’ Fund 1:4 Page 1 of Current Liabilities Rs.2,00,000 Cash and bank balancesRs.10,000 Fixed Assets Rs.6,00,000.

Write a short-note on Generally Accepted Accounting Principles (GAPP).

The following transactions of receipts and issue of item “EXE” took place during September, 2012. Prepare Stock Register Card or Stores Ledger (Perpetual) on FIFO, and LIFO method of inventory valuation. September Product Units Price Kper unit 3rd Purchase 200 50 6th Purchase 150 56 10th Issue 250 --- 14th Issue 60 --- 20th Purchase 340 58 24th Issue 225 ---

Write a note on International Financial Reporting Standards (IFRS)

The following particulars are taken from the records of a company engaged in manufacturing two products, Aand B, from a certain material: Particulars Product A (Per Unit Product B (Per Unit Rs.) Rs.) Sales 2,500 5,000 Material cost (Rs.50 per Kg) 500 1,250 Direct Labour (Rs.30 per 750 1,500 hour) Total fixed Overheads: Rs.10,00,000 Comment on the profitability of each product when: 1. Total Sales in value is limited. 2. Raw materials is in short supply. 3. Production capacity is the limiting factor. 4. Total availability of raw materials is 20,000Kgs and maximum sales potential of each product is 1,000units, find the product mix to yield the maximum profits.

Aproduct passes through three processes A, Band C. The normal wastage of each process is as follows: Process A: 3%, Process B:5% and Process C:8%. Wastage of Process Awas sold at 25paise per unit, that of Process Bat 50paise per unit and that of Process Cat Re.1per unit. 10,000units were issued to Process Ain the beginning of October 2012 at a cost of Re.1 per unit. The other expenses were as follows: Particulars Process A Process B Process C Sundry Materials (Rs.) 1,000 1,500 500 Labour (Rs.) 5,000 8,000 6,500 Direct Expenses (Rs.) 1,050 1,188 2,009 Actual Output 9,500 units 9,100 units 8,100 units Prepare the Process Accounts, assuming that there was no opening or closing stocks.

Write a short-note on Break-Even Analysis. Page 2 of

From the following balance sheets and additional information, prepare cash flow statement: Liabilities 2016 2017 Assets 2016 2017 Equity Share 3,00,000 4,00,000 Goodwill 1,15,000 90,000 Capital 8% Preference 1,50,000 1,00,000 Land and 2,00,000 1,70,000 Share Capital Building General 40,000 70,000 Plant 80,000 2,00,000 Reserve P&L 30,000 48,000 Debtors 1,60,000 2,00,000 Appropriation A/c Creditors 97,000 1,33,000 Stock 77,000 1,09,000 Bank 20,000 16,000 Bills 20,000 30,000 Overdraft Receivable e Outstanding 40,000 50,000 Cash in hand 15,000 10,000 Expenses Cash at Bank 10,000 8,000 Total 6,77,000 8,17,000 Total 6,77,000 8,17,000 Additional Information:

Depreciation of Rs.10,000 and Rs.20,000 has been provided on Plant and Land and Building, respectively.

An interim dividend of Rs.5,000 was paid during the year and the final dividend for the year was Rs.15,000.

Tax paid during the year was Rs.35,000.

Prepare the vertical final accounts (Profit and Loss and Balance-Sheet) for the year ending March 31,2010 using the trial balance given below of M/s Shakti Ltd. Particulars Rs. Particulars Rs. Stock 3,40,000 Equity Share capital (face 12,50,000 value Rs.10 each) Furniture 1,00,000 10% Debentures (As on 2,50,000 April1,2009) (Secured) Discount 20,000 Bank Loan (Unsecured) 3,22,500 Loan to Directors 40,000 Bills Payable 62,500 Advertisement 10,000 Creditors 78,000 Bad Debts 17,500 Sales 21,34,000 Commission 60,000 Rent Received 28,000 Purchases 11,59,500 Profit and Loss Account 69,500 Plant and 4,30,000 Provision for Depreciation 73,000 Machinery on Machinery Rentals 12,500 Current Account 22,500 Cash 4,000 Interest on bank 58,000 loan Preliminary 5,000 Expenses Fixtures 1,50,000 Page 3 of Wages 4,50,000 Consumables 42,000 Freehold Land 7,73,000 Tools and 1,22,500 Equipments Goodwill 1,32,500 Debtors 1,43,500 Bills Receivable 76,500 Dealers Aids 10,500 Transit Insurance 15,000 Trade Expenses 36,000 Delivery Van 27,000 Expenses Debenture Interest 10,000 Total 42,67,500 Total 42,67,500 Additional Information: 1. Closing stock was Rs.4,11,500. 2. Wages for the month of March Rs.65,000 was due but not paid. 3. Make Provision for tax @20% of EBT. 4. Transfer Rs.50,000 to reserve account. 5. Equity dividend is proposed @10% subject to the availability of sufficient profits. Page 4 of