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B. COM DEGREE END SEMESTER EXAMINATION . MARCH 2018

SEMESTER - 5: COMMERCE (CORE COURSE)
COURSE: USCRCOMtT: ACCOUNTING FOR MANAGERIAL DECISIONS
(For Supplementory - 20L4 Admission)

Time: Three Hours Max. Marks:75

PART A

Answer all questions. Each question carries 1 mark.

VWhat are financial statements?

>A\Nhat are Common Size Statements?
/,
3.)gthat is ROI?
4..v7ffiis EPS?
SJlhat is working capital?
6. What is interim dividend?
7,{$lhat do you mean by cash flow?
e\fnat
\ are operating activities?
g.X{Vhat is cost centre?

10. What is EVA? (1x 10 = 10)

PART B
Answer any eight questions' Each question carries 2 marks.
/
f frr/Wfrat are the components of financial statement?
L2. Difierentiate between horizontal analysis and vertical analysis of financial statements.
13. Name any four profitability ratios in relation to investment'
14. What are quick assets?
ts. iabulate Gross Profit Ratio;
' Total Sales- Rs. 5,20,000, Sales return- Rs. 20,000, Cost of goods sold- Rs. 4,00,000
116, Give any two differences between fund flow statement and balance sheet.
.l

t
t/ Calculate working capital:
I
i
Cash- Rs. 30,000
Account Receivables - Rs. 70,000
trade
Stock in - Rs. 1,50,000
Account Payables - Rs. 90,000
PaYable - Rs. 20,000
\Frest
lf\hat do you mean by flow of funds?
19. Write any two limitations of cash flow statement.
20. Which are the various types of responsibility centres? (2x8-16)

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 PART C
Answer any five questions. Each question carries 5
marks.
21. Explain the rimitations of financiar statement
anarysis.
Zl-Dif{erentiate between Fund Flow Statement and Cash Flow
Statement.
23. what is current ratio? what are the components of current ratio?
24' rroffiefollowing information, prepare a comparative income statement of Java
Ltd.
-/
20L4 2015
Sales nO% of cost of goods sold L20% of cost of goods sold
sold
Cost of goods Rs. 20,00,000 Rs. 25,00,000
lndirect expenses ro% of gross profit L0% of gross profit
lncome tax of profit before tax
SO% 50% of profit before tax
25. The following information of a company is given:
Current ratio- 2.5: L Acid test ratio_ L.5: 1, Current liabilities- Rs. 50,000
Find out:
a. Current assets
b. Liquid assets
c. lnve ntory ,

ZA.3l6l"te funds from operations as on 31,t March, 2015:

i. Net profit for the year ended 31't March, 5015- Rs.
G,50,000.
ii.Gain on the sale of building_Rs. 35,500.
iii' Goodwillappears in the books at Rs. 1,80,000.
out of that ::o%hasbeen written off durin
year.
iv. old machinery worth Rs. g,000 has been sord for Rs. 6,500 during the year.
v. Rs. 7,25,000 have been transferred
to General Reserve.
vi' Depreciation has been provided during the year on
machinery and furniture at 20% w
total cost is Rs. 6,50,000.
27 ' Find out a) Debtors Turnover Ratio and b) Average
collection period from the following
information:
31.03.2014 31.03.20L5
Rs. Rs.
Annual credit sales 5,00,000 6,00,000
Debtors in the beginning 90,000 1,00,000
Debtors at the end L,00,000 L,20,000

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PART D
Answer any two questions. Each question carries 12 marks.
28' Define Responsibility Accounting. Explain the features of Responsibility
Accounting.
29. The financial statement of AB Ltd. for the year 2015 reveal the following:
Current ratio 3,.75

1,.25
Equity capital of Rs. 10 each Rs. 60,000
Net current assets Rs.30,300
Fixed assets as a percentage of shareholders'equity 60%
G ross p rof it rat i o 20%
stock turnove r ratio (based on cost on 31.12.2015) o times
Average age of outsta n ding de btors 2 months
Net profit as a percentage of issued capital 1,6%
on31'.12.2015 the current assets consist of stock, debtors and bank balance. you
are required
to prepare:
a. Trading and Profit and Loss Account for the year ended 31,.1,2.20L5 and
b. Balance Sheet as on 31.12 .2O1-S
30' The following are the summaries of the Balance sheets of Praveen Ltd. as at
31st December, 20i-4
and 2015:
Lio bilities 2014 2015 Assets 201,4 ZA1"S
Rs. Rs. Rs. Rs.
Sharecapital 2,0A,000 2,5A,000 Land 2,00,000 L,9a,000
General reserve 50,000 60,000 plant 1,50,000 1,,74,000
P & L Account 30,500 30,600 stock 1,00,000 74,000)LA
Short term loan 70,000 Debiors 90,000*___ 6/i.200 D Cts
Creditors L,50,000 L,35,200?^- Cash 500 600 L.\
Provision for tax 30,000 35,occ Bank 8.000 (e
5,30,500 5 10,E00 s.10 800
Additionol in'crq' ci : -,
- \-&
a. Depreciation on plant was written off Rs. 14,000 in 2Al5 \'l ett t\
b. Dividend of Rs . 20,000 was paid durin g 2a1,5
c. lncome tax provision made during the year was Rs. 25,000
d. A piece of land has been sold during the year at ccst.
You are required to prepare
a statement showing sources and applications of f und for the
year 2015 and a Schedule of Changes in Working Capital.
11. Explain the various methods and techniques used in fi,rancial analysis. (1,2x2=24)

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