Master of Business Administration- MBA Semester 1 MB0041 –Financial and Management Accounting - 4 Credits (Book ID:B1130) Assignment Set- 1 (60 Marks) Note: Each Question carries 10 marks. Answer all the questions. Q1. The Balanced Score Card is a framework for integrating measures derived from strategy. Take an Indian company which has adopted balance score card successfully and explain how it had derived benefits out of this framework. Q2. What is DuPont analysis? Explain all the ratios involved in this analysis. Your answer should be supported with the chart. Q3. Accounting Principles are the rules based on which accounting takes place and these rules are universally accepted. Explain the principles of materiality and principles of full disclosure. Explain why these two principles are contradicting each other. Your answer should be substantiated with relevant examples. Q4. Explain any two types of errors that are disclosed by trial balance with examples and rectification entry. Note - Avoid giving examples given in the self- learning material. Q5. Distinguish between financial accounting and management accounting Q6. XYZ Ltd provides the following information January 1 December 31 Sundry Debtors 65,000 1,05,000 Cash in hand 13,000 20,000 Cash at Bank 15,000 20,000 Bills Receivable 16,000 30,000 Inventory 90,000 84,000 Bills Payables 12,000 8,000 Outstanding expenses 6,000 5,000 Sundry Creditors 30,000 58,000 Bank Overdraft 30,000 42,000 Short term Loans 32,000 36,000
Spring / February 2012
Prepare a schedule of changes in working capital Hint: Net Working capital: Jan 1st 89000 and Dec31st 110000
Spring / February 2012
Master of Business Administration- MBA Semester 1 MB0041 –Financial and Management Accounting - 4 Credits (Book ID:B1130) Assignment Set- 2 (60 Marks) Note: Each Question carries 10 marks. Answer all the questions. Q1. Illustration 1: Compute the cash flow from operating activities Profit and Loss Account To By Cost of goods sold 4,00,000 Sales including cash sales 1,00,000 5,00,000 Office expenses 12,000 Profit on sale of land 30,000 Selling expenses 8,000 Interest on investment 20,000 Depreciation 6,000 Loss on sale of plant 4,000 Goodwill written off 3,000 Income tax 7,000 Net Profit 1,10,000 5,50,000 5,50,000 Balance Sheet as on ………. MARCH 31 2006 2007 Stock 30,000 28,000 Debtors 15,000 12,000 Bills Receivable 6,000 8,000 Creditors 10,000 12,000 Bills Payable 8,000 5,000 Outstanding expenses 4,000 5,000 Hint: Net cash from operating activities= 76000 Q2. The following extract refers to a commodity for the half year ending 31st March 2008. Prepare a cost statement.
Spring / February 2012
Purchase of raw materials 1, 20,000 Direct wages 1, 00,000 Rent, rate, insurance and Works expenses 40,000 Opening stock Raw materials Finished goods (1000 units) 20,000 16,000 Work in progress: opening closing 4, 800 16, 000 Closing stock: raw material F. Goods (2,000 tons) 22, 240 Carriage inwards 1, 440 Sale of finished goods 3, 00,000 Cost of factory 8,000. Advertising, discounts allowed and selling costs Re.1 per ton sold. Production during the year is 16,000 tons. Prepare a cost sheet. Hint: Total cost or cost of sales= 255000 Profit= 45000 Sales= 300000 Q3. Avon garments Ltd manufactures readymade garments and uses its cut-pieces of cloth to manufacture dolls. The following statement of cost has been prepared. Particulars Readymade garments Dolls Total Direct material Rs. 80,000 Rs. 6,000 Rs. 86,000 Direct labour 13,000 1,200 14,200 Variable overheads 17,000 2,800 19,800 Fixed overheads 24,000 3,000 27,000 Total cost 1,34,000 13,000 1,47,000 Sales 1,70,000 12,000 1,82,000 Profit (loss) 36,000 (1,000) 35,000 The cut-pieces used in dolls have a scrap value of Rs 1,000 if sold in the market. As there is a loss of Rs. 1,000 in the manufacturing of dolls, it is suggested to discontinue their manufacture. Advise the management. Hint : Total cost=Readymade garments 134000; Doll= 13000 and total=147000 Q4. Describe the essential features of budgetary control. Q5. Briefly describe labor mix variance and yield variance. Q6. How is standard costing related to budgetary control?
