P/ID 28506/PCMF

MAY 2011

Time : Three hours

Maximum : 100 marks

PART A (10 2 = 20 marks)
Answer ALL the questions.

All questions carry equal marks.

Answer to each question should not exceed 50 words.
1.

State the objectives of cost accounting.

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2.

What is cash flow statement?

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3.

What is the significance of preparing schedule of changes in

working capital?

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4.

State the advantages of standard costing.

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5.

State the difference between marginal costing and absorption

costing.

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AhUP
PnUQUS,
Cv{
PnUQUS E miU TP.
6.

State the limitations of ratio analysis.

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7.

What is meant by flexible budget?

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8.

What is responsibility accounting?

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9.

What is Just in time costing?

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10.

State the features of process costing.

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PART B (5 6 = 30 marks)
Answer ALL the questions.
All questions carry equal marks.
Answer to each theory question should not exceed 250 words.
11.

(a)

From the following Balance sheets of a company prepare

the statement showing changes in working capital.

Liabilities
Share capital
Profit

31.03.07 31.03.08
2,50,000
80,000

S. creditors

2,00,000

B/P

1,00,000

Assets

31.03.07 31.03.08

3,50,000 Fixed assets 4,00,000

5,00,000

95,000 Stock

1,00,000

2,00,000

3,30,000 Debtors

1,50,000

2,00,000

80,000

70,000

90,000 Bills

Bank o/d

80,000

90,000

Receivable

O/s expense

15,000

11,000 Investment

60,000

40,000

Provision for tax

35,000

39,000 Bank

10,000

50,000

Proposed dividend

40,000

55,000

8,00,000 10,60,000

8,00,000 10,60,000

J P RUPq C{U Sx
|h u k AUP J uUP.
P
[S u
C
Phu

31.03.07 31.03.08
2,50,000
80,000
2,00,000

\zxUP

3,50,000 {
\zxUP
95,000 \US
3,30,000 PhP
2

31.03.07 31.03.08
4,00,000

5,00,000

1,00,000

2,00,000

1,50,000

2,00,000

P/ID 28506/PCMF

31.03.07 31.03.08

\zxuS
a^mk

1,00,000

[Q

80,000

\zxUP

31.03.07 31.03.08

uUS
90,000 a^mk

80,000

70,000

90,000 ukP

60,000

40,000

10,000

50,000

\zusi
\P

[Q
15,000

11,000

JxUS

35,000

39,000

Ezu\ D

40,000

55,000

8,00,000 10,60,000

8,00,000 10,60,000

Or
(b)

How will you control wastage and scrap in cost accounts?

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12.

(a)

Find current asset and current liability if the current ratio

is 2.5 and the working capital is Rs. 30,000.

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Qu 2.5, |h u . 30,000 BPU Psk.
Or
(b)

State the benefits of activity based costing.

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13.

(a)

Calculate :
(i)

PV ratio

(ii)

Break even point

(iii) Margin of safety

(1)

sales = 200000 units

(2)

selling price Rs. 6 per unit

(3)

variable cost Rs. 4 per unit

(4)

fixed cost Rs. 30,000

3

P/ID 28506/PCMF

Pski :
(i)

[P Qu

(ii)

|mh

(iii) xP G.

(1)

20,000 ASP

(2)

. 6/& AS

(3)

\ . 4/& AS

(4)

u . 30,000
Or

(b)

Explain the advantages of responsibility accounting.

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14.

(a)

Calculate :
(i)

labour cost variance

(ii)

labour rate variance

(iii) labour efficiency variance

(1)

standard rate/hour = Rs. 5, standard time

500 hours

(2)

actual rate/hour = Rs. 6, actual time 490 hours

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(i)

T k

(ii)

T u k

(iii) T v k

(1)

{ u/o . 5,
500 oP

{ |

(2)

Es u/o . 6, Es |
490 oP
Or

(b)

Explain the features of balanced score card.

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4

P/ID 28506/PCMF

15.

(a)

Prepare process accounts for the following.

Process A Process B
Materials (Rs.)

30000

3000

Labour (Rs.)

10000

12000

7000

8600

Input (units)

20000

17500

Output (units)

17500

17000

Normal loss %

10%

4%

Overheads (Rs.)

Scrap value per unit (Rs.)

RUPq [P Aih i{U PnUSP

uUP.
i{ A i{ B
.

30000

3000

T .

10000

12000

7000

8600

E\zxP (ASP) .

20000

17500

Ezv (ASP) .

17500

10000

10%

4%

\ .

\un |mh (%)

Gv K AS (.)
Or
(b)

What are the merits and limitations of budgetary

control?

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?

vmh

Pmkmi

|P,

wP

P/ID 28506/PCMF

PART C (5 10 = 50 marks)
Answer ALL the questions.
All questions carry equal marks.
Answer each question should not exceed 500 words.
16.

(a)

The expenses for budgeted producting of 10000 units in a

factory are as follows :
Per unit
Rs.
Material

70

Labour

25

Variable overhead

20

Fixed overhead (Rs. 100000)

10

Variable expenses (Direct)

Selling expenses (10% fixed)

13

Distribution overhead (20% fixed)

Administration expenses (fixed Rs. 50000)

5
155

Prepare a flexible budget for

(i)

8000 units and

(ii)

6000 units.

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Ezv \P :
J AQS
.

70

25

\P

20

{ \P (. 100000)

10

\P (|i)
6

5
P/ID 28506/PCMF

.
\P (10% {x)

13

{P \P (20% {x)

{P \P ({x . 50,000)

5
155

8000 ASP 6000 ASP uuP |Q

vmhzu uUP.
Or
(b)

How will you carry out cost reduction and cost control in an
organization?

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J {zv G |hkzx?
17.

(a)

From the following information of a product calculate :

(i)

material cost variance

(ii)

material price variance

(iii) material usage variance

(iv)

material mix variance

Material Std Qty Std price Actual Qty Actual price

Kgs.

Rs.

Kgs.

20

24

16

14

4.5

12

10

3.25

48

Rs.

48

J UP [PU Psk
(i)

AhUP k

(ii)

(iii) k
(iv)

P k BQ PsP.
7

P/ID 28506/PCMF

vmh
A

vmh Es Es

20

24

16

14

4.5

12

10

3.25

48

48
Or

(b)

Explain the
performance.

recent

trends

in

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\P
|hP USP.
18.

(a)

reporting

corporate

US

uP

Frame balance sheet with details below :

Gross profit ratio (20% of sales) = Rs. 600000
Share capital = Rs. 50000
Credit sales and total sales = 80%
Assets turnover = 3 times
Inventory turnover = 8 times
Average collection period (360 days) = 18 days
Current ratio = 1.6
Long term debt equity = 40%

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uUP.

RUPq

[P

Psk

zu C Qu (20% x) . 6,00,000
[S u . 50,000
Ph zu = 80%
{ \zx Qu = 3
\US Qu = 8
\\ \zxu P (360 |mP) = 18 |mP
|h Qu = 1.6
}sh Ph J Qu = 40%
Or
8

P/ID 28506/PCMF

(b)

Explain

the

importance

of

marginal

costing

in

management decision making.

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ikv

Cv{

AhUPU PnUQ UQzu USP.

19.

(a)

From the following balance sheets of X Co. Ltd. Prepare

cash flow statement.

Liabilities

2007

2008

Rs.

Rs.

Assets

Equity share capital 3,00,000 4,00,000 Goodwill

2007

2008

Rs.

Rs.

1,15,000

90,000

8% P.Share capital 1,50,000 1,00,000 Land and

G.reserve

40,000

70,000

Building 2,00,000 1,70,000

P&L

30,000

48,000 Plant

Proposed dividend

42,000

50,000 Debtors

Creditors

55,000

83,000 Stock

Bills payable

20,000

16,000 Bills

Provision for tax

40,000

50,000 Receivable
Bank

6,77,000 8,17,000

80,000 2,00,000
1,60,000 2,00,000
77,000 1,09,000

20,000

30,000

25,000

18,000

6,77,000 8,17,000

Additional information :
(i)

Depreciation of Rs. 10,000 and Rs. 20,000 have been

charged on plant and land and buildings during the
year 2008.

(ii)

An interim dividend of Rs. 20,000 has been paid in

2008.

(iii) Rs. 35,000 income tax was paid in 2008.

9

P/ID 28506/PCMF

 X P C{U Sx UP
Kmh AUP u \P.
2007
.

[S u

2008
.

\zxUP

3,00,000 4,00,000 |

8%

2007
.
1,15,000

2008
.
90,000

[S u

1,50,000 1,00,000 Pmih[P 2,00,000 1,70,000

xP

40,000

70,000

C|mh PnUS

30,000

48,000 PhP 1,60,000 2,00,000

mh

80,000 2,00,000

\UQ

77,000 1,09,000

42,000

50,000 uS

Phu

55,000

83,000 ^mk

\zxuS
a^mk

20,000

16,000

JxURk

40,000

50,000

6,77,000 8,17,000

20,000

30,000

[Q C 25,000

18,000

6,77,000 8,17,000

Tku uPP :
(i)

2008 Bsi { Pmih[P

x u . 10000 . 20000
PnUQhmhx.

(ii)

2008 Bsi . 20,000 ChUP [Pu

[Pmhx.

(iii) 2008 Bsi . 35,000 \zumhx.

Or
(b)

What is standard costing? Explain its objectives.

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10

P/ID 28506/PCMF

20.

(a)

A company shows the following results for two periods.

Calculate :
(i)

PV ratio

(ii)

Fixed cost

(iii) BEP
(iv)

Profit when sales are Rs. 30,000.

Period Sales Rs. Profit Rs.
I

20,000

10,000

II

10,000

4,000

J {zv Csk P[PU zvU

Psk
(i)

[P Qu

(ii)

{a \P

(iii) |mh {
(iv)

.
PnUQkP.

30,000

BQ

P . C .
I

20,000

10,000

II

10,000

4,000

Or
(b)

What is funds flow statement? Explain its various uses.

{v |hmh AUP G G? Au P
USP.

11

P/ID 28506/PCMF