ADAIKALAMATHA COLLEGE
MODEL EXAMINATION – NOVEMBER 2024
I - MBA
ACCOUNTING FOR MANAGERS
Time : 3 Hours Maximum : 75 Marks
SECTION - A
I. Multi choice questions (5X1=5)
1. Purpose of management accounting is to
a) past orientation b) help banks make decisions c) help managers make decisions.
d) help investors make decision.
2. Accounting principles are generally based upon:
a) Practicability b) Subjectivity c) Convenience in recording d) None of the above
3. Managerial accounting information is generally prepared for
a) Shareholders b) Creditors c) Managers d) Regulatory agencies
4. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance
charges, would be classified as a:
a) Variable cost. b) Committed fixed cost c) Direct cost d) Semi variable cost.
5. Which of these items would be accounted for as an expense?
a) Repayment of bank Loan b) Dividend to stock holders c) The purchase of land
d) Payment of current period rent.
II Fill in the blanks (5X1=5)
6. ……... and internal users of accounting.
7. The Branch of accounting concerned with collection, determining and controlling cost of
products and services is called… ……………
8. The objective of financial accounting is to find out ………………...
9. ……… ………. journal is used to record credit sale of goods
10. Cost Accounting and Management Accounting are ………….. in nature.
III Answer All the Questions: - (5X2=10)
11. Define Accounting.
12. What is meant by cost accounting?
13. What do you understand by ‘overheads’?
14. Define Break Even Point.
15. Define Budget.
SECTION – B
IV. Answer All the Questions: (5 X 5=25)
16. (a) Describe briefly various types of subsidiary book which are maintained by the large
business organization.
(Or)
(b) Journalize the following transactions in the books of Kumar and prepare necessary ledger
Accounts.
2004, Jan. 1. Kumar started a business with the capital of Rs 60,000
3. Amount received from Bank Rs. 10,000
4. Purchased goods from Ravi for Rs. 5,000
5. Returned goods to Ravi for Rs. 1,000
6. Sold goods for cash Rs. 5,000
9. Sold goods to lakshman for Rs. 3,500
10. Amount of Rs. 3,750 paid to Ravi as full settlement
12. Lakshman returned the goods worth Rs. 500.
Complaint About damages.
20. Paid salaries Rs. 2,500
21. Dividend received Rs. 1,000
22. Amount paid to Mahan through a bank at Rs.1,500
24. Withdraw money from business for private use Rs. 1,000
30. Withdraw money from bank for business use Rs. 3,000
17. (a) What are the elements of cost?
(Or)
(b) Suriya at and co-Ltd requires a statement showing the result of its production, operation
for Sep 2014.cost records give the following information.
01.09.2014 30.09.2014
Rs. Rs.
Raw materials 1,00,000 1,23,500
Finished Goods 71,500 42,000
Work in progress 31,000 34,500
Transactions during the month of Sep. 2014: Rs.
Purchase of raw materials 88,000
Direct wages 70,000
Working Expenses 39,500
Administration expenses 13,000
Sale of factory Scrap 2,000
Selling and distribution Expenses 15,000
Sales 2,84,000
18. (a) X,Y and Z have two production departments and three service deparments.Expenses
incurred for these departments and other available information is given below.
Particulars Prod. Prod. Service Service Service
Dept. A Dept. B Dept Dept Dept
Maintenance Power Personnel
As per primary 1,20,000 1,50,000 20,000 48,000 40,000
distribution
Allocation
Basis
Maintenance 80 20 - 40 20
hours
KMH consumed 4 16 2 - 2
Number of employees 60 30 30 18 -
Allocate the cost service departments to the production departments.
(Or)
(b) What is administration overheads? Also explain the various methods of controlling them.
19. (a) From the following particular you are required to calculate BEP.
(i) Fixed cost Rs. 2, 00,000, selling price per unit Rs. 40, Variable cost per unit Rs.1.5.
(ii) Fixed cost Rs. 40,000, sales Rs. 1, 00,000, Variable cost Rs.30, 000.
(Or)
(b) Find out profit from the following data.
Sales Rs. 8, 00,000
Marginal cost Rs. 6, 00,000
Break-even sales Rs. 6, 00,000
20. (a) Prepare a production budget for three months ending on March 31,2015 for a factory
producing four products on the basis of the following information.
Type of Estimated stock on Estimated during Jan. Desired closing stock
product units 1.1.2015 on March 2015 on March 31.2015
(Units) (Units)
A 2,000 10,000 3,000
B 3,000 15,000 5,000
C 4,000 13,000 3,000
D 3,000 12,000 2,000
(Or)
(b) Enumerate the advantages and limitations of Marginal Costing.
SECTION – C
V. Answer any THREE Questions: (3 X10= 30)
21. Elucidate the various accounting concepts in detail.
22. From the following Trial Balance. Prepare trading, profit and loss A/c for the year ended
31-12-2012 and a balance sheet as on that date:
Trial Balance
Rs. Rs.
Purchases 11,870 Capital 8,000
Debtors 7,580 Bad debts recovered 250
Return inwards 450 Creditors 1,250
Bank deposit 2,750 Return outwards 350
Rent 360 Bank overdraft 1,570
Salaries 850 Sales 14,690
Travelling expenses 300 Bills Payable 1,350
Cash 210
Stock 2,450
Discount allowed 40
Drawings 600
TOTAL 27,460 TOTAL 27,460
Adjustments:
(i) The closing stock on 31-12-12 was Rs. 4,200
(ii) Write off Rs. 80 as bad debts and create a reserve for bad debts at 5% on Sunday
debtors.
(iii) Three months rent is outstanding.
23. Difference between Cost Accounting and Financial Accounting briefly explain.
24. Assuming that the cost structure and selling prices remain the same in period I and II.
Find out:
(i) Profit volume ratio (ii) Fixed cost (iii) Break-even point for sales.
(iv) Profit when sales are Rs. 1,00,000 (v) Margin of safety at a profit of Rs.15,000 and
(vi) Variable cost in period II.
Period Sales Profit
Rs. Rs.
I 1, 20,000 9,000
II 1, 40,000 13,000
25. The expenses for budgeted production of 10,000 units in factory are furnished below:
Per unit
Rs.
Material 70
Labour 25
Variable Overheads 20
Fixed Overheads (Rs. 1, 00,000) 10
Variable Expenses 5
Selling Expenses (10% Fixed) 13
Distribution expenses (20% fixed) 7
Administration expenses 5
Total Cost per unit 155
Prepare a budget for production of:
(i) 8,000 units
(ii) 6,000 units
(iii) Indicate cost per unit at both the levels.
Assume that administration expenses are fixed for all levels of production.
