2008
(August)
Paper:
103
Full
Marks: 80
Time:
3 hours
1. (a)
What is cost accounting? Discuss the nature and objectives of cost
accounting. 5+6+5=16
Or
(b) Give the meaning of
activity based costing. Narrate its advantages. Distinguish between Activity based
costing and Conventional costing.
5+4+7=16
2. (a)
From the following data relating to a tempo compute the cost per running km.
|
Particulars
|
Amount
|
|
Kms. Run
(Annual)
Kms. Run per
litre
Estimated life
in Kms.
Cost of vehicle
Road Licence
(Annual)
Insurance
(Annual)
Garage Rent
(Annual)
Supervision
(Annual)
Driver’s wages
per hour
Cost of petrol
per litre
Repairs and
Maintenance per km.
Tyre allocation
per km.
|
20000
25
120000
30000
1000
800
500
1500
5
2
1.50
0.75
|
You are to charge interest on the cost of
vehicle at 5% per annum. The vehicle runs 25 kms. Per hour on average. 16
Or
(b) A certain product
passes through three distinct processes before it is completed. The output of
each process is charged to the next process at
a price calculated to give a profit of 20% on transfer price. The output of
process III is charged to the finished stock account on a similar basis. There
was no work-in-progress at the beginning of the year and overheads have been
ignored. Stock in each process have been valued at the price cost of the
process. The following data have been obtained at the end of 31st
December, 2007:
|
Particulars
|
Process-I
|
Process-II
|
Process-III
|
Finished
Stock
|
|
Direct Materials
Direct Wages
Stock
(31.12.2007)
Sales during the
year 2007
|
4000
6000
2000
------
|
6000
4000
4000
------
|
2000
8000
6000
------
|
--------
--------
3000
36000
|
From the above information
prepare:
(i)
Process cost account showing profit element at
each stage;
(ii)
Actual realised profit; and
(iii)
Stock valuation as would appear in the balance
sheet. 10+3+3=16
3.
(a) From the following Balance sheet of A. Ltd.,
Prepare a position statement as on that date and comment on the financial
position of the company: 16
Balance Sheet of A Ltd.
As on 31st December, 2010
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Share Capital
Authorised:
Issued and
Subscribed:
15000 equity
shares of Rs.10/- each called up
Reserves and
Surplus:
Capital reserve
General Reserve
Secured and
Unsecured Loans
Current
Liabilities
|
150000
40000
30000
80000
45000
|
Fixed Assets:
Plant and
Machinery
Other Fixed
Assets
Investments
(Long Term)
Current assets
|
105000
85000
25000
130000
|
|
Total
|
345000
|
|
345000
|
Or
(b)Explain trend
percentages as a tool of analysis highlighting on methods of calculation,
advantages, limitations and precautions to be taken. 5+5+6=16
4. (a)
The profit of a company is Rs. 50,000 after charging interest of Rs. 6000 on
debentures and providing Rs. 24000 for taxes, the assets of the company
consists of fixed assets Rs. 200000, current assets Rs. 600000 and preliminary
expenses Rs. 30000, Discount on issue of debenture is Rs. 10000. Compute the
return on capital employed. 16
Or
(b) What is ratio analysis? State the objects
of Balance sheet ratios. 5+11=16
5. (a)
In calculation of figures for working capital projection, what are the time lag
for payments to creditors for goods and time lag in payment of expenses and how
they are calculated? 8+8=16
Or
(b) Show the
classification of working capital on different basis, depending on the purpose
of analysis. 16
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