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Mco 05

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47 views11 pages

Mco 05

Uploaded by

kavirx20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
You are on page 1/ 11

No.

of Printed Pages : 11 MCO–05


MASTER OF COMMERCE
(M. COM.)
Term-End Examination
June, 2024
MCO–05 : ACCOUNTING FOR MANAGERIAL
DECISIONS

Time : 3 Hours Maximum Marks : 100


Note : Attempt any five questions. All questions
carry equal marks.

1. Explain the role of Management Accountant in


a modern business organization. 20

2. Distinguish between the following : 5+5+5+5

(a) Product cost and Period cost

(b) Controllable cost and Uncontrollable cost

(c) Variable cost and Fixed cost

(d) Direct cost and Indirect cost

3. From the following Trial Balance of a Trader,


you are required to prepare Trading and Profit

P. T. O.
[2] MCO–05

and Loss Account for the year ended 31st


March, 2022 and a Balance Sheet as on the
date : 20
Trial Balance as on 31st March, 2022
Dr.
Particulars Amount (`)
Drawing Account 7,500
Plant and Machinery (1.4.2021) 1,25,000
Plant and Machinery (1.4.2021) 6,250
Stock (1.4.2021) 19,250
Purchases 1,02,500
Returns Inward 2,500
Sundry Debtors 25,750
Furniture 6,200
Freight 12,500
Carriage Outward 625
Rent, Rates and Taxes 5,750
Printing and Stationery 1,000
Trade Expenses 500
Insurance Charges 875
Salaries and Wages 26,625
Cash in Bank 25,675
Cash in Hand 7,250
Postage and Telegram 1,000
3,76,750
[3] MCO–05

Cr.
Amount
Particulars
(`)
Capital 1,50,000
Returns Outward 1,250
Sundry Creditors 22,500
Sales 2,00,000
Provision for Bad and Doubtful
debts 500
Discount Received 1,000
Rent (up to 30.9.2022) 1,500
3,76,750
Adjustment :

(1) Stock on 31st March, 2022 was valued at


` 15,000.

(2) Write off ` 750 as bad debts.

(3) Provision for Bad and Doubtful debt is to


be maintained at 5% on sundry debtors.

(4) Create a provision for discount on debtors


and also reserve for discount on creditors
@ 2%.

P. T. O.
[4] MCO–05

(5) Charge depreciation @ 2% p.a. on Plant


and machinery and @ 5% on furniture.
(6) Insurance prepaid was ` 125.
(7) Goods worth ` 6,250 were totally damaged
in an accident. The insurance company
admitted claim of ` 5,000 on 28.03.2022.

4. Write a note on nature and limitations of


financial statements. 20

5. From the following particulars, compute


leverage ratios : 20
Balance Sheet of Raja Ltd.
(as on March 31, 2022)
Liabilities `
Equity Share Capital 40,000
8% Preference Share Capital 20,000
Reserves 10,000
Profit and Loss Account 5,000
10% Debentures 45,000
Trade Creditors 9,000
Outstanding Expenses 2,000
Provision for Taxation 3,000
Proposed Dividend 6,000
1,40,000
[5] MCO–05

Assets `
Land 22,000
Building 24,000
Plant and Machinery 38,000
Furniture 5,000
Sundry Debtors 22,000
Stock 13,000
Cash 14,000
Prepaid expenses 2,000
1,40,000

6. What is a cash budget ? How is it prepared ?


5+15
7. Write short notes on the following : 5+5+5+5

(a) Fixed Overhead Volume Variance

(b) Sales Volume Variance

(c) Sales Margin Variance

(d) Variable Overhead Efficiency Variance

8. How does activity based costing differ from


traditional costing approach ? 20

P. T. O.
[6] MCO–05

MCO–05

2024
–

5+5+5+5

]
[7] MCO–05

]
Dr.

(`)
7,500

1,25,000

6,250

19,250

1,02,500

2,500

25,750

6,200

12,500

625

] 5,750

1,000

P. T. O.
[8] MCO–05

500

875

26,625

25,675

7,250

1,000

3,76,750

Cr.

(`)

1,50,000

1,250

22,500

2,00,000

500

1,000

1]500

3,76,750
[9] MCO–05

]
` 15,000
` 750

5%

2%

2%

5%

` 125

` 6]250

` 5]000

P. T. O.
[ 10 ] MCO–05

`
40,000
8% 20,000
10,000
5,000
10% 45,000
9,000
2,000
3,000
6,000
1,40,000

`
22,000
24,000
38,000
5,000
22,000
13,000
14,000
2,000
1,40,000
[ 11 ] MCO–05

5+5+5+5

MCO–05

P. T. O.

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