GOVERNMENT OF KARNATAKA
DEPARTMENT OF TECHNICAL EDUCATION
BOARD OF TECHNICAL EXAMINATIONS
DIPLOMA IN COMMERCIAL PRACTICE
MODEL QUESTION PAPER
9CP61 - ELEMENTS OF MANAGEMENT ACCOUNTING (EMA)
Time: 3 Hours Max.Marks: 100
Instruction: 1) Section – I and IV are Compulsory
2) Answer any THREE Questions from Section – II
3) Answer any TWO Questions from Section – III
SECTION – I
1. (a) Fill in the blanks with appropriate word/words: 5 X 1 = 5
(i) The Term...................refers to the numerical or quantitative relationship between two figures.
(ii) .................means change in Fund or change in Working Capital.
(iii) .................means Inflow and Outflow of Cash during Accounting Period.
(iv) Total Sales minus the Sales at Break Even Point is known as the.............. of Safety.
(v) The Word ‘Budget’ is derived from a French term..............which denotes a Leather Pouch in which funds are appropriated for meeting anticipated expenses.
(b) Distinguish between Management Accounting and Financial Accounting. 5 Marks
SECTION – II
(Answer any THREE Questions from this Section) 10 x 3 = 30
2. What do you understand by ‘Management Accounting’? Briefly describe its Objectives.
. 10 Marks
- On the basis of following information, calculate:
(a) Gross Profit Ratio (b) Working Capital Turnover Ration
(c) Debt-Equity Ratio
| Particulars | Rs. |
| Net Sales Cost of Goods Sold Current Assets Current Liabilities Paid up Share Capital Debentures Loan | 30,00,000 20,00,000 6,00,000 2,00,000 5,00,000 2,50,000 1,25,000 |
10 Marks
- From the following Balance Sheets of a Company, prepare a Statement showing the Changes in Working Capital.
BALANCE SHEETS
| LIABILITIES | 2008 Rs. | 2009 Rs. | ASSETS | 2008 Rs. | 2009 Rs. |
| Creditors Capital Profit & Loss A/c | 7,000 20,000. 1,000 | 4,500 25,000 2,300 | Cash Debtors Land Stock | 3,000 12,000 5,000 8,000 | 4,700 11,500 6,600 9,000 |
| | 28,000 | 31,800 | | 28,000 | 31,800 |
10 Marks
- From the following Balances, you are required to Calculate Cash from Operations:
| PARTICULARS | 31.12.2008 Rs. | 31.12.2009 Rs. |
| Debtors Bills Receivable Creditors Expenses Outstanding Expenses Prepaid Accrued Income Income Received in Advance Net Profit Made Bills Payable. | 50,000 10,000 20,000 1,000 800 600 300 - 8,000 | 47,000 12,500 25,000 1,200 700 750 250 1,30,000 6,000 |
10 Marks
- Reddy Limited has prepared the following budget estimates for the year 2009 – 2010.
| Particulars | . |
| Sales (in Units) Fixed Expenses Sales Value Variable Costs | 15,000 Rs. 34,000 Rs. 1,50,000 Rs. 6 per Unit |
Your are required to Compute the Following
(a) P/V Ratio, (b) Break-even Point and (c) Margin of Safety. 10 Marks
SECTION – III
(Answer any TWO Questions from this Section) 2 x 15 = 30
- Prepare a Flexible Budget for Overheads on the basis of the following data. Ascertain the Overhead Rates at 70 % and 90% capacity.
| Particulars of Cost | At 80 % Capacity Rs. |
| Variable Overheads: Indirect Labour Stores including Spares Semi-variable Overhead: Power (30 % Fixed, 70% Variable) Repairs and Maintenance (60 % Fixed and 40 % Variable) Fixed Overheads: Depreciation Insurance Salaries Total Overheads
Estimated Direct Labour Hours | 12,000 4,000 20,000 2,000 11,000 3,000 10,000 62,000 1,24,000 |
15 Marks
7. Dr.Aras & Kumar Company Limited shows the following Results for Two Years:
| Year | Sales (Rs) | Profit (Rs) |
| 2008 | 1,50,000 | 20,000 |
| 2009 | 1,70,000 | 45,000 |
From the above, you are required to calculate the following:
(a) Profit-volume Ratio (P/V Ratio).
(b) Break Even Point (BEP).
(c) Sales required to earn a Profit of Rs. 40,000.
(d) Margin of Safety at a Profit of Rs. 50,000.
(e) Profit when Sales are Rs. 2, 50,000.
15 Marks
- Dr.Aras and Reddy Limited supplies the following Balance Sheets for Two Years:
| LIABILITIES | 2008 Rs. | 2009 Rs. | ASSETS | 2008 Rs. | 2009 Rs. |
| Share Capital Bonds Profit and Loss Account Accounts Payable Provision for Doubtful Debts | 70,000 12,000 10,040 10,360 700 | 74,000 6,000 10,560 11,840 800 | Cash at Bank Debtors Stock Land Goodwill | 9,000 14,900 49,200 20,000 10,000 | 7,800 17,700 42,700 30,000 5,000 |
| | 1,03,100 | 1,03,200 | | 1,03,100 | 1,03,200 |
Additional Information:
i. Dividends amounting to Rs. 3,500 were paid during the year 2009
ii. Land was purchased for Rs. 10,000
iii. Rs. 5,000 were written off on goodwill during the year.
iv. Bonds of Rs. 6,000 were paid during the year.
Prepare a Cash Flow Statement.
15 Marks
- From the following Balance Sheets of Abiram Kumar Limited, you are required to prepare a Funds Flow Statement:
| LIABILITIES | 2008 Rs. | 2009 Rs. | ASSETS | 2008 Rs. | 2009 Rs. |
| Share Capital Profit and Loss A/c Current Liabilities | 65,000 39,000 17,000 | 70,000 31,000 8,000 | Goodwill Plant & Machinery Current Assets | 35,000 65,000 21,000 | 30,000 55,000 24,000 |
| | 1,21,000 | 1,09,000 | | 1,21,000 | 1,09,000 |
Additional Information:
(a) Depreciation of Rs. 25,000 was charged on Plant and Machinery.
(b) Dividends of Rs. 17, 000 was paid during the year.
SECTION – IV
(This Section is Compulsory) 20 + 10 = 30
- (a) From the following information, prepare a summarized Balance Sheet as on 31st
December 2009 with as many details as possible:
Working Capital : Rs. 75,000
Reserves and Surplus : Rs. 1, 00,000
Bank Overdraft : Rs. 60,000
Current Ratio : 1.75
Liquid Ratio : 1.15
Fixed Assets to Proprietary Funds Ratio : 0.75
There is no Long term Loans nor any Investments in Fictitious Assets.
20 Marks
(b) Answer any FIVE of the following:
a. What is Funds Flow Statement?
ii. What is Cash Flow Statement?
iii. What is Budget?
iv. What is Contribution?
v. What is Ratio?
vi. What is a Cash Budget?
vii. What is Budgetary Control?
viii. What do you understand by ‘Items of Cash Flows’? 2 x 5 = 10
