ST.

ANTONY’S COLLEGE OF ARTS AND SCIENCES FOR WOMEN, THAMARAIPADI

VI SEMESTER – I INTERNAL
MANAGEMENT ACCOUNTING
MAJOR : III B.COM & B.COM (CA) MARKS : 45
DATE : TIME : 1.30 HOURS

PART-A (5X3=15)

I. Answer the Following Any 5 Questions:

1. Define Management Accounting?
2. List out the main tools of Management Accounting.
3. Write the Objectives of Analysis and Interpretation.
4. Explain the Nature of Financial Statements.
5. What is mean by Flow of Fund.
6. What do you mean by Funds from Operations.
7. Write Short notes on Importance of Fund Flow Statement.
8. What is the meaning of Schedule of Changes in Working Capital.

PART-B (2X5=10)

II. Answer the Following any 2 Questions:

9. From the following P&L A/c of Ramco Ltd. For the year ended 2003 and 2004, You are required to
prepare a Comparative income statement.
2003 2004 2003 2004
To Cost of goods sold 6,000 7,500 By Net Sales 8,000 10,000
To Operating Expenses:
Administrative 200 200
Selling 300 400
To Net Profit 1,500 1,900
8,000 10,000 8,000 10,000

10. What is a Fund Flow Statement? How is it Prepared?

11. From the following information relating to A Ltd.,Prepare Funds Flow Statement:
(Rs. ‘000)
2003 2004 2003 2004
Share Capital 300 400 Cash 30 90
Reserve 100 50 Accounts Receivable 105 150
Retained Earnings 30 60 Inventories 150 195
Accounts Payable 45 135 Fixed Assets 190 210
475 645 475 645
Additional Information:
i). The Company issued bonus shares for Rs.50,000 and for Cash Rs.50,000
ii). Depreciation written off during the year Rs.15,000
12. Explain the Scope of Management Accounting.
 PART-C (2X 10=20)
III. Answer the following Questions:
13. a). Differentiate between Management Accounting and Financial Accounting. (OR)

13.b). i). From the following data relating to the purchase of a firm, Prepare Trend Percentages and Trend Ratios.

Year Purchases (’00,000) Rs.

1999 1,672
2000 1,789
2001 1,873
2002 1,923
2003 2,123
2004 1,463
ii). From the following figures, Compute Trend percentage using 2001 as the base Year:

Year Sales Cost of goods Sold Profit before tax

2001 600 360 120
2002 680 414 138
2003 840 512 186
2004 960 574 204
2005 1040 600 228
2006 1200 666 300
14.a). i). Differentiate between Fund Flow Statement and Income Statement.

ii). Distinction between Fund Flow Statement and Receipt and Payment A/c. (OR)

14. b). The following are the summarized Balance sheets of X Ltd. As at 31st December 2003 and 31st
December 2004:
2003 (Rs.) 2004 (Rs.) 2003 (Rs.) 2004 (Rs.)
Share Capital 5,00,000 5,00,000 Land & Buildings(at cost) 2,00,000 2,50,000
P&L A/C 1,50,000 2,52,000 Plant & Machinery (at cost) 3,50,000 3,60,000
Debentures 2,00,000 2,00,000 Sundry Debtors 1,47,000 1,38,000
Sundry Creditors 1,20,000 1,05,000 Stock 2,50,000 2,74,000
Provision for Doubtful Debts 5,000 4,000 Bank 83,000 1,01,000
Provision for Depreciation: Preliminary Expenses 5,000 4,000
Land & Buildings 30,000 34,000
Plant & Machinery 30,000 32,000
10,35,000 11,27,000 10,35,000 11,27,000
The following additional information is available:
a). The Net Profit for the year ending 31st December,2004 was Rs.2,52,000 and is arrived at after charging
loss on sale of machinery and written off preliminary expenses and adjusting provisions for doubtful debts.
b). During the year a part of the machinery costing Rs.7,000 accumulated depreciation thereon being Rs.1,000
was sold for Rs.5,000.
c). Dividend of Rs.50,000 was paid during the year ended 31st December.,2004.
Prepare statements to show the changes in working capital for the year 2004 and the Sources and Applications
of Funds for 2004.