IGNOU MCO-05 June 2015 Previous Year Question Paper

Q1.What do you understand by 'Management Accounting' ? Explain and state the functions of a Management Accountant.

Q2.What is ratio analysis ? Discuss the various ratios that are generally calculated to determine the liquidity and solvency of a business organisation. 4+8+8

Q3.What is Cash Flow Statement ? Give its broad format and state its uses. 5,10,5

Q4.Define 'flexible budget'. How does it differ from fixed budget ? Outline the advantages of flexible budget. 6+7+7

Q5.Explain briefly the terms 'standard cost' and 'standard costing'. Enumerate the advantages and limitations of standard costing. 6+7+7

Q6.Write notes on any two of the following : 10+10

(a) Inflation accounting

(b) Human resource accounting

(c) Responsibility accounting

Q7.Prepare Funds Flow Statement on the basis of the following data : 10+10 Balance Sheet of XY Co. Ltd. 31-12-12 31-12-13 Z Z Gross Block 1,00,000 1,40,000 Less : Depreciation 40,000 55,000 Net Fixed Block 60,000 85,000 Current Assets Cash 20,000 10,000 Investments 10,000 - Closing Stock 60,000 1,00,000 Sundry Debtors 30,000 40,000. Total Assets 1,80,000 2,35,000 Capital and Liabilities Equity Capital 50,000 50,000 Reserve Fund 80,000 1,10,000 6% Debentures NIL 30,000 Sundry Creditors 20,000 25,000 Bills Payable 20,000 5,000 Other current liabilities 10,000 15,000

Q9.ABC Ltd. has 1,00,000 share capital and 12,000 reserve against ? 80,000 invested in Fixed Assets. Stock and Debtors were 8,000 and 26,000 and trade and other creditors ? 4,000. To sustain the increase in activity stock level is proposed to be increased by 100% by the end of the year. Machinery worth ! 4,000 is proposed to be acquired during the year as per capital expenditure budget. Estimated profit for the year is ? 14,000 after charging ? 8,000 depredation and 50% of profit for taxation. Advance Income-tax payment is estimated at ? 12,000. Trade and other creditors are likely to be doubled. A 5% dividend is to be paid and provision for 10% dividend for next year is to be made. Debtors are estimated to be outstanding for 3 months. Sales budget shows ! 2,00,000 sales. Make an estimate of Cash position as at the end of the Budget period.

Q10.The statement of marginal profit of MN Ltd. is as under : Sales (16,000 units) 3,20,000 Variable Costs (? 15 per unit) 2,40,000 Contribution 80,000 Fixed Costs 60,000 Profit 20,000 Calculate the profit-volume ratio and then on the basis of P/V Ratio, determine : 5x4=20

(a) Sales for 40% P/V Ratio.

(b) Break-even point in Z.

(c) Contribution when sales amount to

Q11.56,000.

(d) Margin of safety when profit is ! 4,000.

(e) Variable costs when sales amount to

Q15.31-friff rakr)tiuf WIT ildi t? 37 fell -9. 31-170 T fqkff7WW-A-4't -cr- 06111kilrich 441.61 Clt(ltli 74 Ot9k1 1:17T ,31I'a t r14 LiRct)Frici . 1. quo') t I 4+8+8

Q21.R1,1 79. fa. WI cam' PT i NCRUI fizq t : tight' (16,000 7* -T) 3,20,000 (ci 01'1d (Z 15 3rrff wr) 2,40,000 3#KTff 80,000 ovicf 60,000 713T 20,000 -r4T-Trr-gr aTT:IFff Trum 3 dt4 3TNR Pp-IR-11w' TrivrEri Tic -41-44 : 5x4=20

(a) 40% 9PT-TITT aTTIM TIT 1Gist)

(c) 2,56,000 Pohl 3#7F

(d) 4,000 "k 7PT TIT IpiT

(e) 2,56,000 Rohl TR wftacitikil C't cIlld