SE- 255

VI Semester B.Com. Examination, September 2020

(CBCS) (F+R) (2016 -17and Onwards)
LIERA:y COMMERCE
Paper - 6.4 : Management Accounting
Time:3 Hours Max. Marks : 70

Instruction : Answers should be written completely either in English or

in Kannada.

SECTION -A

Answer any five sub-questions from the following. Each correct answer carries
2marks. (5x2=10)
1. a) Give the meaning of Management Accounting.
b) Mention any four disciplines which fall in the scope of Management
Accounting.
c) What is the meaning of Financial Statement Analysis ?
d) Write any four Activity Ratios.
e) What is the meaningof funds from operations ?
f) State the meaning of Cash Flow Statement.
g) Write the objectives of Management Reporting.
SECTION -B

Answer any three questions from the following. Each correct answer carries
6 marks. (3x6=18)
2. Who is Management Accountant ? Briefly explain the role of Management
Accountant in business organisation.
3. From the following figures of Rock Ltd. calculate the Trend Percentages for
the years 2015 to 2019 taking 2014 as the base.
Items 2014 2015 2016 2017 2018 2019

Sales 1,880 2,350 2,820 3,384 3,948 4,230

Cost of goods sold 1,020 1,122 1,530 1,836 2,091 2,142
Operating expenses 420 483 546 693 777 861
P.T.O.
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4. Given Gross Profit- 1,60,000, Net Profit

-96,000, Gross Sales - 8,24,000.
Sales Retuns -724,000, Opening Stock-1,80,000 and Closing
Stock- 1,40,000
Compute:
i) Gross Profit Ratio

ii) Net Profit Ratio

i) Cost of goods sold and

iv) Stock turnover ratio

5. Prepare a schedule of changes in workingcapital from the

following:
Particulars 2016 2017

Sundry creditors 80,000 1,00,000

Tax payable 50,000 80,000

Outstanding expenses 20,000 28,000

Bills payable 10,000 8,000

Sundry Debtors 70,000 1,25,000

Stock 27,000 33,000

Bills Receivable 5,000 4,000

Work-in-Progress 3,000 5,000

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6. You are given below the statement of profit and loss of S Ltd. for the year
ended 31-3-2020. Compute cash from operating activities.

Particulars

Sales 30,00,000

Less : Operating expenses 23,00,000

Operating profit 7,00,000

Add: Profit on sale of investments 1,00,000

Profit before tax 8,00,000

Less: Provision for tax 1,50,000

Profit after tax 6,50,000

Additional information :

i) Operatingexpenses include loss on sale of buildings 35,000 and

depreciation 1,50,000.
ii) The balances relatingto current assets and current liabilities are :

Particulars As on 31-3-2019 As on 31-3-2020

Trade Debtors 1,20,000 1,75,000

Inventory 2,84,000 1,98,000

Trade creditors 95,000 75,000

Bills payable 65,000 95,000

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SECTION C

Answer any three questions from the following. Each correct answer carries
14 marks. (3x14=42)
7. The extracts of Balance Sheets of Ram Ltd. as on 31-3-2018 and 31-3-2019
are given below:
Prepare Common-size Balance Sheet and comment.
Particulars As on 31-3-2018 As on 31-3-2019

I) Equity and Liabilities

1) Shareholders' funds :
Share capital 18,00,000 24,00,000
Reserves and surplus 6,00,000 8,00,000
2) Non-current Liabilities:
Long-term borrowing 2,40,000 2,00,000
3) Current Liabilities :
Trade payables 2,70,000 5,00,000
Other current liabilities 90,000 1,00,000
Total 30,00,000 40,00,000
II) Assets
1) Non-current assets
Fixed assets

i) Tangible assets 21,60,000 30,00,000

i) Intangible assets 75,000 60,000
2) Current assets
Inventories 3,00,000 4,00,000
Trade receivables 3,60,000 3,20,000
Cash and cash equivalents 1,05,000 2,20,000
Total 30,00,000 40,00,000
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8. From the following Balance Sheets of Saturn Ltd. for the years ending
31 March 2019 and 2020. Prepare i)Schedule of changes in Working Capital
and ii) Funds Flow Statement.
Balance Sheets as at 31st March

Liabilities 2019 2020 Assets 2019 2020

Equity share capital 6,00,000 8,00,000 GoodwilI 72,000 60,000

General reserve 1,40,000 2,10,000 Buildings 4,00,000 5,60,000

Profit & Loss A/c 1,66,000 2,70,000 Plant 6,70,000 7,40,000

Long-term loans 8,00,000 6,00,000 Investments

92,000 54,000 in shares 5,00,000 4,20,000

Sundry creditors
Bills payable 12,000 17,000 Stock 1,30,000 1,23,000

Provision for tax 88,000 90,000 Debtors 98,000 1,09.000

Bills receivable 12,000 13.200

Cash at bank 16,000 15.800

18,98,000 20,41,000 18,98,000 20,41,000

The following additional information has also been given for year ending 31-3-2020.
i) 20% depreciation wascharged onopening balance of plant.
ii) A new buildingat the cost of ? 2,40,000 was added.
i) Provision for tax of 99,000was made.
iv) 72,000 interest was paid on long-term loans.
v) 30,000dividends were received on investments in shares.
(Treat provision for tax as non-current liability).
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9. From the following Balance Sheets of Adithya Company as at 31 March 2019

and 31 March 2020 prepare a Cash Flow Statement as per AS-3(Indirect
Method).

Balance Sheets as on

Liabilities 31-3-2019 31-3-2020 Assets 31-3-2019 31-3-2020

Equity share capital 3,00,000 3,50,000 Land

Share premium 30,000 and Buildings 2,30,000 3,90,000

General reserve 45,000 65,000 Plant

Profit and Loss A/c 30,000 80,800 and machinery 85,400 1,40,000

6% Debentures 70,000 Furniture 5,500 6,500

Sundry creditors 85,000 90,700 Stock 82,400 95,700

Provision for taxation 22,500 40,500 Sundry debtors 75,000 85.500

Proposed dividend 30,000 35,000 Bank balance 34,200 44,300

5,12,500 7,62,000 5,12,500 7,62,000

Additional Information :

) Depreciation written off during the year : Land and Buildings 60,000; Plant
and Machinery 50,000 and Furniture 1,200.
i) lgnore interest on debentures.
i) Tax paid during the year 20,000.
iv) Dividend of 30,000 was paid.
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10. a) Prepare a Comparative Income Statement from the following Income

Statement and comment.

Particulars 31-3-2018 31-3-2019

(? '000) ('000)
Net sales 6,000 5,600
Less : Cost of goods sold 4,200 3,600
Gross profit 1,800 2,000
Less : Operating expenses 1,200 1,200
Operating profit 600 800

Less: Non-operating expenses 500 400

100 400

Add: Non-operating income 50 40

Net profit/Loss 150 440

b) The folowing transactions took place during a week in the books of Prasad
Ltd. State whether the following transactions increase or decrease or do not
affect the net working capital.
i) Issue of preference shares 2,00,000.

ii) Receipt of cash from debtors 50,000.

ii) Bills receivable dishonoured 3,000.
iv) Plant sold 80,000.

v) Stock purchased on credit ? 1,00,000.

vi) Furniture purchased 9,000.

vii) Purchased plant by issue of debentures 1,00,000.

viii) Paid cost of issue of debentures 2,000.
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11. Following is the extracted information from the financial statement or Hellable
Company Ltd. as at 31s March 2019.
Particulars

Equity share capital (shares of 10 each) 32,00,000

8% Preference share capital 10,00,000

Reserves and surplus 6,00,000

9% Secured debentures 12,00,000

Trade payables 10,00,000

Short-term provisions 6,00,000

Inventories 16,00,000
Trade receivables 4,50,000

Cash and cash equivalents 3,50,000

Fixed assets 52,00,000

Profit before interest and tax for the year 18,00,000

Tax paid 1,72,000
Calculate :

i) Current Ratio.
i) Liquid Ratio.
iü) Return on Capital Employed.
iv) Long-term Debt-Equity Ratio.
v) Earnings Per Share (EPS) and
vi) Shareholders' Funds to Total Assets Ratio.