University Of Pune Question Paper
P. G. D. B. M. ( Semester - I ) Examination - 2010
MANAGEMENT ACCOUNTING
(Old 2005 Pattern)
Time : 3 Hours] [Max. Marks : 60
Instructions :
(1) Answer any two questions from each section.
(2) All questions carry equal marks.
(3) Answers to both sections should be written in one and the
same answer-book.
SECTION - I
Q.1) “Budget without Budgetary Control is useless and Budgetary Control without
Budget is impossible.” Explain this statement elaborating its meaning and
inter-relationship.
Q.2) Describe in detail various steps involved in recording Business Transactions
in the books of accounts upto the stage of preparing Final Account.
Q.3) Write short notes : (Any Three)
(a) Flexible Budget
(b) Double Entry System of Accounting
(c) Labour Turnover
(d) Bank Reconciliation
(e) Rectification of Errors
Q.4) Distinguish between : (Any Three)
(a) Time Keeping and Time Booking
(b) LIFO and Weighted Average Method of Pricing of Issues
(c) Fixed Costs and Variable Costs
(d) Labour Utilisation and Labour Efficiency
(e) Apportionment and Absorption of Overheads
SECTION - II
Q.5) Superfine Ltd. has furnished the following particulars for the half year ended
31-3-07. Compute departmental overhead rates for each Production Department
given that the overheads are to be recovered as percentage of direct
wages :
Production Departments Service Departments
A B C X Y
Direct Wages Rs. 4,000 6,000 8,000 2,000 4,000
Direct Materials Rs. 2,000 4,000 4,000 3,000 3,000
No. of Employees 100 150 150 50 50
Electricity KWH 8,000 6,000 4,000 2,000 2,000
Light Points Nos. 10 16 4 6 4
Asset Value Rs. 1,20,000 80,000 60,000 20,000 20,000
Area Occupied M2 150 250 100 50 50
The Overhead Expenses for the above period were :
Rs.
Motive Power 3,300
Lighting 400
Stores Expenses 800
Staff Welfare Expenses 4,800
[3887]-12 2 Contd.
Depreciation 30,000
Repairs 15,000
Rent, Rates and Taxes 1,200
General Expenses 12,000
Apportion Service Department X’s expense in proportion to the Direct
Wages and that of Service Department Y’s in the ratio of 5 : 3 : 2 to
Production Departments A, B and C.
Q.6) For completing a job the following standards were set :
10 Skilled operators working 40 hours each and paid at the rate of
Rs. 20 per hour per person, and
20 Unskilled labour working 40 hours each and paid at the rate of
Rs. 15 per hour per person.
The job was completed with the same number of persons, each of them
working for 42 hours and actually paid at the rate of Rs. 21 per hour for
skilled operators and at Rs. 13 per hour for unskilled labour.
Calculate various Labour Cost Variances and show their Tally.
Q.7) Following information is available in respect of a certain product :
Selling Price Rs. 200 per unit
Variable Cost Rs. 140 per unit
Fixed Overheads Rs. 3,00,000 per annum
Present Sales Volume 8,000 units per annum
Using above information, calculate :
(a) Break-even Point in units as well as money value.
(b) Margin of Safety as percentage of present volume.
(c) No. of units to be sold to earn a profit of Rs. 2,40,000.
(d) How much profit can be made if sales are increased to 9,000 units ?
[3887]-12 3 P.T.O.
Q.8) From the following particulars, prepare a Cash Budget from June to August,
2007 :
Month Sales Purchases Expenses
Rs. Rs. Administrative Prodction Selling
Rs. Rs. Rs.
April, 07 12,00,000 7,00,000 1,25,000 1,30,000 90,000
May, 07 14,50,000 9,00,000 1,25,000 1,60,000 1,15,000
June, 07 16,00,000 11,00,000 1,75,000 1,70,000 1,45,000
July, 07 19,00,000 13,00,000 2,00,000 1,95,000 1,60,000
August,07 19,00,000 14,00,000 2,10,000 2,00,000 1,70,000
Additional Information :
(1) On 1st June, 07 expected Cash Balance is Rs. 80,000.
(2) 20% of the total sales are on cash basis. Customers are allowed one
month credit.
(3) All purchases are on credit of 2 months.
(4) Capital Expenditure proposed to be incurred on acquisition of
machinery in August, 07 is Rs. 4,00,000.
(5) Advance Tax of Rs. 90,000 is payable in June, 07.
(6) Interest on Investment is receivable in July, 07 – Rs. 35,000.
(7) All expenses are paid in the following month.
P. G. D. B. M. ( Semester - I ) Examination - 2010
MANAGEMENT ACCOUNTING
(Old 2005 Pattern)
Time : 3 Hours] [Max. Marks : 60
Instructions :
(1) Answer any two questions from each section.
(2) All questions carry equal marks.
(3) Answers to both sections should be written in one and the
same answer-book.
SECTION - I
Q.1) “Budget without Budgetary Control is useless and Budgetary Control without
Budget is impossible.” Explain this statement elaborating its meaning and
inter-relationship.
Q.2) Describe in detail various steps involved in recording Business Transactions
in the books of accounts upto the stage of preparing Final Account.
Q.3) Write short notes : (Any Three)
(a) Flexible Budget
(b) Double Entry System of Accounting
(c) Labour Turnover
(d) Bank Reconciliation
(e) Rectification of Errors
Q.4) Distinguish between : (Any Three)
(a) Time Keeping and Time Booking
(b) LIFO and Weighted Average Method of Pricing of Issues
(c) Fixed Costs and Variable Costs
(d) Labour Utilisation and Labour Efficiency
(e) Apportionment and Absorption of Overheads
SECTION - II
Q.5) Superfine Ltd. has furnished the following particulars for the half year ended
31-3-07. Compute departmental overhead rates for each Production Department
given that the overheads are to be recovered as percentage of direct
wages :
Production Departments Service Departments
A B C X Y
Direct Wages Rs. 4,000 6,000 8,000 2,000 4,000
Direct Materials Rs. 2,000 4,000 4,000 3,000 3,000
No. of Employees 100 150 150 50 50
Electricity KWH 8,000 6,000 4,000 2,000 2,000
Light Points Nos. 10 16 4 6 4
Asset Value Rs. 1,20,000 80,000 60,000 20,000 20,000
Area Occupied M2 150 250 100 50 50
The Overhead Expenses for the above period were :
Rs.
Motive Power 3,300
Lighting 400
Stores Expenses 800
Staff Welfare Expenses 4,800
[3887]-12 2 Contd.
Depreciation 30,000
Repairs 15,000
Rent, Rates and Taxes 1,200
General Expenses 12,000
Apportion Service Department X’s expense in proportion to the Direct
Wages and that of Service Department Y’s in the ratio of 5 : 3 : 2 to
Production Departments A, B and C.
Q.6) For completing a job the following standards were set :
10 Skilled operators working 40 hours each and paid at the rate of
Rs. 20 per hour per person, and
20 Unskilled labour working 40 hours each and paid at the rate of
Rs. 15 per hour per person.
The job was completed with the same number of persons, each of them
working for 42 hours and actually paid at the rate of Rs. 21 per hour for
skilled operators and at Rs. 13 per hour for unskilled labour.
Calculate various Labour Cost Variances and show their Tally.
Q.7) Following information is available in respect of a certain product :
Selling Price Rs. 200 per unit
Variable Cost Rs. 140 per unit
Fixed Overheads Rs. 3,00,000 per annum
Present Sales Volume 8,000 units per annum
Using above information, calculate :
(a) Break-even Point in units as well as money value.
(b) Margin of Safety as percentage of present volume.
(c) No. of units to be sold to earn a profit of Rs. 2,40,000.
(d) How much profit can be made if sales are increased to 9,000 units ?
[3887]-12 3 P.T.O.
Q.8) From the following particulars, prepare a Cash Budget from June to August,
2007 :
Month Sales Purchases Expenses
Rs. Rs. Administrative Prodction Selling
Rs. Rs. Rs.
April, 07 12,00,000 7,00,000 1,25,000 1,30,000 90,000
May, 07 14,50,000 9,00,000 1,25,000 1,60,000 1,15,000
June, 07 16,00,000 11,00,000 1,75,000 1,70,000 1,45,000
July, 07 19,00,000 13,00,000 2,00,000 1,95,000 1,60,000
August,07 19,00,000 14,00,000 2,10,000 2,00,000 1,70,000
Additional Information :
(1) On 1st June, 07 expected Cash Balance is Rs. 80,000.
(2) 20% of the total sales are on cash basis. Customers are allowed one
month credit.
(3) All purchases are on credit of 2 months.
(4) Capital Expenditure proposed to be incurred on acquisition of
machinery in August, 07 is Rs. 4,00,000.
(5) Advance Tax of Rs. 90,000 is payable in June, 07.
(6) Interest on Investment is receivable in July, 07 – Rs. 35,000.
(7) All expenses are paid in the following month.
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