IGNOU MMPC-004 December 2021 Previous Year Question Paper

Q1.From the following figures extracted from the books of M/s. Silent and Humming Ltd. you are required to prepare :

(i) Trading A/c

(ii) Profit & Loss A/c for the year ended 31/3/2021

(iii) Balance Sheet as on 31/3/2021 Incorporate the effect of adjustments in these financial statements which are given : Particulars Amount Capital 4,57,600 Drawings 26,400 Plant and Machinery 1,98,000 Freehold property 1,32,000 Purchases 2,20,000 Return outwards 2,200 Salaries 26,400 Office expenses 5,500 Office furniture 11,000 Discount given 2,640 Sundry debtors 58,520 Loan to Al ice @ 10% per annum Balance on 1/4/2020

Q2.000 Cash at bank 58,520 Bills Payable 11,000 Sales 4,62,880 Stock as on 1/4/2020 77,000 Wages 70,400 Sundry creditors 88,000 Internet charges 3,080 Insurance 3,520 Gas and Fuel 5,940 Bad debts 1,320 Office rent 5,720 Freight 19,800 Loose tools 44,000 Factory lighting 2,200 Provision for doubtful bebts 1,760 Interest on loan to Alice 2,200 Cash in hand 5,280 Adjustments :

(i) Stock on 31-3-2021 was ` 1,45,200.

(ii) A new machine was installed during the year costing ` 30,800, but it was not recorded in the books as no payment was made for the same. Wages of ` 2,200 paid for its erection have been debited to wages account.

(iii) Depreciate plant and machinery by 33 %, furniture by 10% and freehold property by

(iv) Loose tools were valued at ` 3,520 on 31-3-2021.

(v) Of the sundry debtors ` 1,320 are bad and should be written off.

(vi) Maintain a provisions of 5% on sundry debtors for doubtful debts.

Q3.Explain th e basic structure of cash flow statement and describe the meaning of cash and cash equivalents. Discuss in detail the type of activities taken into consideration for preparation of cash flow statement.

Q4.What do you understand by absorption and marginal c osting ? Bring out the major differences among them and discuss the utility and limitation of marginal costing. [ 6 ]

Q5.What is Cost-Volume-Profit (CVP) analysis ?

Q6.Explain the interplay of various factors on profit. Discuss the application of profit graph and list the assumptions on which profit graph analysis is carried.

Q7.What is a budget ? Briefly discuss the types of budgets that would be prepared by a typical business concern. Discuss the significance of budgetary control in modern organisations and describe the control ratios used for this purpose.

Q8.What is ‘Ratio Analysis’ ? Describe the various ‘Profitability and Liquidity’ ratios. Explain the significance of each of these ratios and discuss how these ratios are interpreted. [ 7 ]

Q9.Discuss the following :

(i) Altman’s Z scorce

(ii) DuPont analysis

Q10.Discuss the major developments that have led to increasing focus on Human Resource function accountability. Explain the cost based methods of Human Resource Accounting.