problem1) Answer all the problems:
i) What do you mean by costing? describe its objectives.
ii) What is operating coating? In which industries is operating coating used?
iii) What is idle time variance? How is it find outd?
iv) describe the meaning of the term “Analysis of Financial Statement”.
v) If the current ratio is 2.5, liquidity ratio is 1.5 and working capital Rs 60,000. Find current assets and current liabilities.
problem2) What do you understand by absorption of overhead? describe different methods of factory overhead absorption.
problem3) describe the meaning of management accounting and state its objectives and functions.
problem4) From the following information, prepare a fund flow statement and a schedule of changes in working capital:
BALANCE SHEET AS ON 31st December
Liabilities 2007 2008 Assets 2007 2008
Equity Share Capital 10,00,000 11,00,000 Goodwill 50,000 40,000
General Reserve 2,00,000 2,00,000 Land & Building 4,20,000 6,60,000
Profit & Loss a/c 1,10,000 1,90,000 Plant & Machinery 6,00,000 8,00,000
Debenture 5,00,000 3,00,000 Closing Stock 2,50,000 2,10,000
Creditors 50,000 40,000 Debtors 3,00,000 2,40,000
Bills Payable 30,000 24,000 Cash 3,00,000 24,000
Provision for Bad Debts 20,000 30,000 Preliminary Expenses 30,000 20,000
Provision for tax 40,000 1,10,000
19,50,000 19,94,000 19,50,000 19,94,000
ADDITIONAL INFORMATION:
1) During the year 2008 a part of machinery costing Rs 7,500 (accumulated depreciation thereon being Rs 2,500) was sold for Rs. 3,000.
2) Dividend of Rs. 1, 00,000 was paid during the year ended 31st December, 2008.
3) Income Tax of Rs. 50,000 was paid during the year 2008.
4) Depreciation for the year 2008 was provided on Land & Building Rs. 10,000 and Plant & Machinery Rs. 50,000.