IGNOU MCO-05 June 2020 Previous Year Question Paper

Q1.What do you understand by 'Financial Statements' ? Discuss the utility and significance of financial statements for the various parties interested in a business concern. 8,

Q2.What is the importance of comparative statements to management ? How are these statements prepared ? Elucidate. 8,

Q3.Following are the summary of cash transactions extracted from the books of AB Ltd. : 20 Balance on 1-7-2016 35,000 Receipts from customers 27,83,000 Issue of shares 3,00,000 Sale of fixed assets 1,28,000

Q4.46,000 Payments to suppliers 20,47,000 Payments for fixed assets 2,30,000 Payments for overheads 1,15,000 Salaries 69,000 Income-tax 2,43,000 Dividends paid 80,000 Repayment of Bank Loan 2,50,000

Q5.34,000 Prepare a cash flow statement of the company for the year ended 30th June, 2017 in accordance with AS-3 (revised) by direct method. I

Q6.The following figures are available from sales and costs forecasts of M/s. XY Ltd. for the year ending 31st December, 2017 at 50% (5000 units) capacity utilization : 20

(i) Fixed expenses remain constant for all levels of production and sales.

(ii) Selling price between 50% and 75% capacity is t 25 per unit.

(iii) Semi-variable expenses will remain unchanged at 50% to 65% capacity but will increase by 10% between 65% to 80% capacity and by 30% between 80% to 100% capacity.

(iv) At 90% level material cost increases by 5% and selling price is reduced by 5%.

(v) At 100% both material and labour costs increase by 10% and selling price is reduced by 8%.

(vi) Semi-variable expenses are t 50,000.

(vii) Fixed expenses are t 58,000. [4 l MC0-005

(viii) Variable expenses are Materials 5 per unit • Labour 7 2 per unit Direct expenses i per unit Prepare a profit forecast statement through flexible budget at 60%. 75%, 90% and 100% capacity.

Q7.Explain the term 'Budgetary Control' and mention some of its advantages. On what does the success of such control depend? 7, 6,

Q8.What is meant by Standard Costs ? How are the standards fixed ? Illustrate your answer.

Q10.Define 'Responsibility Accounting'. Discuss its salient features. 10,

Q11.(a) X Products Ltd. produces one standard type of article. Their results during the last five months of the year were as follows : 10 Month Output August September October November December 100 units 200 units 300 units 400 units 500 units Prime Cost ! 5 per unit Variable Overheads 7 1 per unit Fixed Overheads ! 36,000 per annum Prepare a Cost Statement on the basis of Marginal Costing.

(b) From the following data of AB Ltd., you are required to prepare Profit & Loss Account in traditional form as well as in contribution form : 5, 5 16 3 MC0-005 Sales 8,40,000 Depreciation, salaries and other fixed costs 1,80,000 Variable production costs 2,20,000 Operating expenses — Administration 1,60,000 Selling expenses 2,00,000 50% of administration expenses and 60% of selling expenses are fixed.

Q12.What is Break-even Analysis ? Discuss the assumptions, uses and limitations of this technique. 5, 5, 5, 5 (73 MC0-005 ra4 trunct) Tit SMtIk TT. Wit. ) TRIvr v, 2020 : uq-qc4Iti tl • 74 .1197 : 3 iv aftrew3i : loo : fm-i1 rif-a w9 .1 * 37 -{ tr -471 .4714 an will ei

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Q17.i cstrtsAccf aisittre t Nittri yid VINRI §ticti el wig NAtinfaii 10,

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Q21.60,000 tilitcti &fq—AZTITR

Q22.00,000 raa,q WI W#4 AFT 50% 'UR4T'NWT 60% iTR-Tt *I