Management Accounting — Winter 2025

Who are the users of accounting information, and why do the users need accounting information?

Name various accounting concepts. Explain any four in detail.

What is the role of Accounting? Explain the critical steps involved in accounting.

Differentiate between Financial, Cost and Management Accounting. Page 1 of

Discuss various methods of financial statement analysis in brief (tools & techniques).

Mr. Anand has started a company to carry on the business of selling fast-food. Following are the transaction for the month of November. Journalized the transactions: 1: Commence business with cash of Rs. 2,00,000. 3: Opened a current account with Bank of Baroda for Rs. 1,00,000 8: Purchased office equipments. Paid Cash. Of Rs. 60,000 9: Purchase materials worth Rs. 30,000. 10: Sold 500 packs of pizza for Rs. 50,000 14: Issued cheque of Rs. 25,000 to Mr. Anand for his personal use. 16: Paid Rs. 20,000 for office rent.

The Balance Sheet of Grace Corporation is as follows: PARTICULARS 2014 2013 SHAREHOLDER‟S FUNDS Share Capital 25,000 25,000 Reserve & Surplus 11,800 8,600 36,800 33,600 LIABILITIES Secured Loans 9,000 8,000 Unsecured Loans 3,000 1,000 Current Liabilities 23,300 17,100 35,300 26,100 Total equities and liabilities 72,100 59,700 ASSETS Fixed Assets 32,200 26,500 Investments 2,800 4,300 Inventories 10,600 4,900 Debtors 20,900 15,600 Cash 4,400 7,000 Other current assets 1,200 1,400 Total assets 72,100 59,700 Prepare the Common Size statement.

Explain the types of Accounts with suitable examples and the rules of Debit and Credit applicable to them. Page 2 of

Write a short note on IFRS.

From the following Income Statement of Mehra Trading Company for the year ending 31st March, 2022 and 2023, you are required to prepare a Comparative Income Statement and give your comments: Particulars 31.03.2022 31.03.2023 Rs. Rs. Revenue From Operations 6,00,000 7,20,000 Add: Dividend Received 30.000 90,000 Total Revenue 6,30,000 8,10,000 Less: Cost of Goods Sold 4,20,000 5,60,000 Administration Expenses 50,000 66,000 Selling and Dist. Expenses 25,000 23,000 Interest on Debentures 12,000 12,000 Loss on Sale of Plant 6,000 4,000 Provision for Taxation 40,000 48,000 Net Profit 77,000 97,000

Aretail shop dealing in knitwear has the following transactions during June 2008. Date Purchase/ sales Units Rate per unit June 2 Purchase 1,000 50 June 8 Purchase 500 60 June 12 Sale 500 70 June 15 Purchase 800 70 June 18 Sale 1,000 85 June 24 Purchase 500 85 June 28 Sale 800 100 You are required to compute: 1. The gross profit earned during June. 2. The value of closing stock by using FIFO and LIFO method.

Aproduct passes through the three processes A, Band C. The normal wastage of each process is as follows : Process A -3 %, Process B – 5% and Process C – 8% 1. Wastage of process Awas sold at 25 paise per unit and 2. Wastage of process Bwas sold at 50 paise per unit and 3. Wastage of process Cwas sold at 1 Rs per unit. 10000 units were issued to Process Ain the beginning of the October 2014 at a cost of Rs. 1 per unit. The other Expenses were as follows: Process A Process B Process C Sundry Materials Rs. 1000 Rs. 1500 Rs. 500 Labour Rs. 5000 Rs. 8000 Rs. 6500 Direct Expenses Rs. 1050 Rs. 1188 Rs. 2009 Actual Output 9500 units 9100 units 8100 units Prepare the process accounts A , Band C. Page 4 of

Solve the Following.

Xltd. purchased a second hand machine on 1 January 2001 for Rs. 37,000 and immediately spent Rs. 2,000 on its repairs and Rs. 1,000 on erection. On 1 July 2002, it purchased another machine for Rs. 10,000 an on 1 July 2003 sold off the first machine purchased on 1 January 2001 for Rs. 28,000. On the same day, it purchased a machine for Rs. 25,000. On 1 July 2004 the second machine purchased for Rs. 10,000 was also sold off at Rs. 2,000. Depreciation was provided on the machine at the rate of 10% on the original cost annually on 31 December. The company follows the year end at December.

From the Following information, calculate :

Break Even point Expressed in terms of sales in Rupees and Units (ii) Number of units that must be sold to earn a Profit of Rs. 60000 per year. (iii) If the Sales Price reduced by 10% what will be new P/V Ratio. Particulars Amount (Rs.) Sales Price 20 per unit Variable Manufacturing cost 11 per unit Variable Selling cost 3 per unit Fixed Factory overhead 540000 per year Fixed Administrative Cost 252000 per year

From the following ledger balances of Hardik Ltd. prepare the Balance-Sheet of the company as on 31st March, 2019 in vertical format. Particulars Rs. Particulars Rs. Equity Share Capital 26,00,000Advances to employees 1,50,000 General Reserve 30,000Discount on Issue of 12,500 Debenture 12% Debentures 4,00,000Tools and Equipments 3,75,000 Land and Building 15,54,970Gratuity Fund 3,00,000 Goodwill 10,00,000Debtors 1,38,520 Bank Overdraft 2,45,100Cash at Bank 1,57,160 Proposed Dividend 82,000Stores and Spares 1,77,800 Prepaid Insurance 25,000Profit and Loss A/c (Cr.) 21,490 Mutual Fund 68,000Bills Receivable 44,600 Pre-Paid Salary 1,00,000Sundry Creditors 90,000 Interest Payable 32,400Bills Payable 2,560

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