Ca 1
Ca 1
Ca 1
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5. Given :— Debtor’s Velocity Ratio = 3 months, Creditor’s Velocity Ratio = 2 months,
Stock Velocity Ratio = 8 times, Fixed Assets Turnover Ratio = 8 times. Gross Profit Ratio = 25%.
Additional Information :— Gross Profit during the year amounted to Rs. 80,000. There are no
long term loans or overdraft. Reserves and Surplus amounted to Rs. 28,000/-. Liquid Assets are
Rs. 97,333. Closing Stock is Rs. 2,000 more than the Opening Stock. Bills Receivable and Bills
Payable are Rs. 5,000 and Rs. 2,000 resp. Find out :—
(a) Sales
(b) Debtors and Creditors
(c) Closing Stock
(d) Fixed Assets
(e) Proprietary fund.
Also make out Balance Sheet of the company with as much details as possible.
6. (A) The Asian Industries specialises in the manufacture of small capacity motors. The cost structure
of a motor is as under :— material Rs. 50, labour Rs. 80, variable overheads @ 75% of labour.
Fixed overheads amounted to Rs. 2,40,000. Selling price per motor is Rs. 230/-.
(1) Determine the number of motors that have to be manufactured and sold in order to Break
even.
(2) If the sale price is reduced by Rs. 15 each, how many motors to be sold to break even ?
(B) The following figures are extracted from the books of a manufacturing concern for the year 2013-14.
Direct material Rs. 2,05,000/-, Direct labour Rs. 75,000, Fixed Overheads Rs. 60,000/-, Variable
Overheads Rs. 1,00,000, Sales Rs. 5,00,000.
Calculate a) BEP and what will be the effect on BEP of an increase of 10% in Fixed expenses
and Variable expenses separately.
7. From the following information prepare flexible Budget for 70%, 80%, 95% and 100% Capacity
utilisation :
Particulars Amount
Variable Exp : Materials 12,00,000
(at 60%) Labour 13,00,000
Other Overheads 2,00,000
Semi-variable Exp : Repairs 1,25,000
(at 60%) Labour 5,00,000
Selling exp. 1,50,000
Other Overheads 1,25,000
Fixed Exp : Salaries and wages 4,20,000
Rent, Rates and Taxes 2,80,000
Depreciation 3,50,000
Misc. Exp. 4,50,000
Fixed expenses remain constant at all capacities. Semi variable exp. will remain constant between 55%
to 70% capacity. It will increase by 10% of the above capacity between 70% to 90% capacity. A
further increase of 5% is estimated between 90% to 100% capacity.
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8. Describe the different methods of costing and state the particular industries to which they can be
applied.
9. Discuss the meaning, importance and nature of Ratio Analysis.
10. Write notes on (any TWO) :—
(a) Zero base budgeting
(b) Importance of Marginal Costing as a tool of cost control.
(c) Quotations
(d) Difference between Cost Accounting and Management Accounting.
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