MBA - MB0041 1st Semester Assignment, Spring / Feb 2012
MB0041 –Financial and Management AccountingAssignment Set- 1
Note: Each Question carries 10 marks. Answer all the questions.
Q1. The Balanced Score Card is a framework for integrating measures derived from strategy. Take an Indian company which has adopted balance score card successfully and explain how it had derived benefits out of this framework.
Q2. What is DuPont analysis? Explain all the ratios involved in this analysis. Your answer should be supported with the chart.
Q3. Accounting Principles are the rules based on which accounting takes place and these rules are universally accepted. Explain the principles of materiality and principles of full disclosure. Explain why these two principles are contradicting each other. Your answer should be substantiated with relevant examples.
Q4. Explain any two types of errors that are disclosed by trial balance with examples and rectification entry.
Note - Avoid giving examples given in the self- learning material.
Q5. Distinguish between financial accounting and management accounting
Q6. XYZ Ltd provides the following informati
January 1 December 31
Sundry Debtors 65,000 1,05,000
Cash in hand 13,000 20,000
Cash at Bank 15,000 20,000
Bills Receivable 16,000 30,000
Inventory 90,000 84,000
Bills Payables 12,000 8,000
Outstanding expenses 6,000 5,000
Sundry Creditors 30,000 58,000
Bank Overdraft 30,000 42,000
Short term Loans 32,000 36,000
Prepare a schedule of changes in working capital
Hint: Net Working capital: Jan 1st 89000 and Dec31st 110000
Assignment Set- 2
Q1. Illustration 1: Compute the cash flow from operating activities
Profit and Loss Account
Profit and Loss Account
To By
_________________________________________________________________
Cost of goods sold 4,00,000 Sales including cash
sales 1,00,000 5,00,000
Office expenses 12,000 Profit on sale of land 30,000
Selling expenses 8,000 Interest on investment 20,000
Depreciation 6,000
Loss on sale of plant 4,000
Goodwill written off 3,000
Income tax 7,000
Net Profit 1,10,000
Cost of goods sold 4,00,000 Sales including cash
sales 1,00,000 5,00,000
Office expenses 12,000 Profit on sale of land 30,000
Selling expenses 8,000 Interest on investment 20,000
Depreciation 6,000
Loss on sale of plant 4,000
Goodwill written off 3,000
Income tax 7,000
Net Profit 1,10,000
__________________________________________________________________
5,50,000 5,50,000
Balance Sheet as on ……….
5,50,000 5,50,000
Balance Sheet as on ……….
MARCH 31
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2006 2007
Stock 30,000 28,000
Debtors 15,000 12,000
Bills Receivable 6,000 8,000
Creditors 10,000 12,000
Bills Payable 8,000 5,000
Outstanding expenses 4,000 5,000
2006 2007
Stock 30,000 28,000
Debtors 15,000 12,000
Bills Receivable 6,000 8,000
Creditors 10,000 12,000
Bills Payable 8,000 5,000
Outstanding expenses 4,000 5,000
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Hint: Net cash from operating activities= 76000
Hint: Net cash from operating activities= 76000
Q2. The following extract refers to a commodity for the half year ending 31st March 2008. Prepare a cost statement.
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Purchase of
raw materials 1, 20,000 Direct wages 1, 00,000
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Rent, rate, insurance
and Works expenses 40,000 Opening stock
Raw materials 20,000
Finished goods
Purchase of
raw materials 1, 20,000 Direct wages 1, 00,000
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Rent, rate, insurance
and Works expenses 40,000 Opening stock
Raw materials 20,000
Finished goods
(1000 units) 16,000
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Work in progress: Closing stock:
opening 4, 800 raw material 22, 240
closing 16, 000 F. Goods (2,000 tons)
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Work in progress: Closing stock:
opening 4, 800 raw material 22, 240
closing 16, 000 F. Goods (2,000 tons)
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Carriage inwards 1, 440 Sale of finished goods 3, 00,000
Cost of factory 8,000
Cost of factory 8,000
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Advertising, discounts allowed and selling costs Re.1 per ton sold. Production during the year is 16,000 tons. Prepare a cost sheet.
Hint: Total cost or cost of sales= 255000
Profit= 45000
Sales= 300000
Q3. Avon garments Ltd manufactures readymade garments and uses its cut-pieces of cloth to manufacture dolls. The following statement of cost has been prepared.
Particulars Readymade Dolls Total
garments
_________________________________________________
Direct material 80,000 6,000 86,000
Direct labour 13,000 1,200 14,200
Variable overheads 17,000 2,800 19,800
Fixed overheads 24,000 3,000 27,000
Total cost 1,34,000 13,000 1,47,000
Sales 1,70,000 12,000 1,82,000
Profit (loss) 36,000 (1,000) 35,000
The cut-pieces used in dolls have a scrap value of Rs 1,000 if sold in the market. As there is a loss of Rs. 1,000 in the manufacturing of dolls, it is suggested to discontinue their manufacture. Advise the management.
Hint : Total cost=Readymade garments 134000; Doll= 13000 and total=147000
Q4. Describe the essential features of budgetary control.
Q5. Briefly describe labor mix variance and yield variance.
Q6. How is standard costing related to budgetary control?
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