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SUBJECT : MANAGEMENT ACCOUNTANCY
Total Marks : 80
N.B. : 1) All questions are compulsory
2) All questions carry equal marks.
Answer the following questions :
1) Why is Accounting regarded as an aid to Management (Marks : 15)
2) Explain the term convention of disclosure (Marks : 10)
3) Differentiate between Casn and Mercantile system of Accounting (Marks : 10)
4) Explain the term Accounting Cycle (Marks : 15)
5) Explain the rules regarding posting of transactions into the Ledger (Marks : 15)
6) What are the precautions to be taken by an investor to protect himself against the
possible misuse
of ratios by a company. (Marks : 15)
SUBJECT : COST ACCOUNTING
Total Marks : 80
N.B. : 1) All questions are compulsory
2) All questions carry equal marks.
Q1) Which are the different ways by which the cost can be analysed?
Q2) Define Budgetary Control and explain the pre-requisites for its successful introduction
and
implementation?
Q3) Standard costing is a valuable aid to management discuss. State in brief limitation of
standard
costing?
Q4) Explain the importance of the Marginal cost technique in managerial decision making?
Q5) What are the advantages of cost audit?
Q6) Enumerate the steps involved in the installation of budgetary control system in an
organization?
Q7) Differentiate between idle cost and standard cost?
Q8) How the total cost, variable cost and marginal cost differ from each other?
SUBJECT : AUDITING
COURSE : CCA Total Marks : 80
N.B. : 1) All questions are compulsory
Power and light includes Rs 20,000 for general heating and lighting, which is an allocation
based on
the light points. Indirect labour is attributed mainly to the manufacturing of fans. About 75%
of it
can be dispensed with along with direct labour if manufacturing is discontinued. However,
the
supervisor who receives annual salary of Rs 75,000 will have to be retained. The machines
used for
manufacturing fans which have a book value of Rs 3,00,000 can be sold for Rs 1,25,000
and the
amount realized can be invested at 15% return. Factory rent is allocated on the basis of
area, and the
company is not able to see an alternative use for the space which would be released.
Should ABC
Ltd. Manufacture the fans or buy them?
Q2) Usha Company produces three consumer products : P, Q and R. The management of
the
company wants to determine the most profitable mix. The cost accountant has supplied the
following
data. {30 Marks }
Usha Company : Sales and Cost Data
Description Product Total
PQR
Material Cost per unit
Quantity (Kg) 1.0 1.2 1.4
Rate per Kg (Rs) 50 50 50
Cost per unit (Rs) 50 60 70
Labour Cost per unit 30 90 90
Variable Overheads per unit 15 10 25
Fixed Overheads (Rs .000) 9,175
Current Sales (Units ,000) 100 50 60 210
Projected Sales (Units ,000) 109 55 125 289
Selling Price per unit (Rs) 150 200 270
Raw material used by the firm is in short supply and the firm can expect a maximum supply
of 350
lakh kg for next year. Is the companys projected sales mix most profitable or can it be
changed for
the better?
Q3) DSQ Company Ltd, a diversified company, has three divisions, cement, fertilizers and
textiles. The summary of the companys profit is given below : {25 Marks }
(Rs/Crore)
Cement Fertilizer Textiles Total
Sales 20.0 12.0 18.0 50.0
Less : Variable Cost 8.0 9.6 5.4 23.0
Contribution 12.0 2.4 12.6 27.0
Less : Fixed Cost (allocated to
divisions in proportion to
volumes of Sales)
8.0 4.8 7.2 20.0
Profit (Loss) 4.0 (2.4) 5.4 7.0
After allocating the companys fixed overheads to products the Fertilizers, division incurs a
loss of
Rs 2.4 crore. Should the company drop this division?
SUBJECT : AUDITING
Total Marks : 80
N.B. : 1) All questions carry equal marks
2) Answer any four questions
CASE STUDIES
Q1) H.W.P. Private Ltd. Is having only two members H and W. During the audit of accounts
for the
year ended 31st March 2000, you as a auditor find that :
a) H, who is incharge of purchases has introduced fictitious purchase bills of Rs 50 lakhs.
b) W, who is incharge of sales has sold goods worth Rs 1 crore without bringing the same in
the
books of accounts. You raise the matter with H and W in their capacity as directors. They
contest that as this is a position known to them and within their own fold, you should not
report
the same under the Company's Act 1956. Discuss whether the above arguments are
acceptable
under the Company's Act 1956 for non-reporting?
Q2) As an auditor, how would you react to the following situation? The company produced
photocopies of fixed deposit receipts as the original receipts were kept in the iron safe of the
director finance who was presently out of the country on company business?
Q3) ABC Private Limited is engaged in the wholesale business of buying and selling silk
sarees.
The accounts are maintained under the Companies Act from 1st October to 30th September
each
year. The Chief Accountant of the company is requesting the tax auditor to conduct tax audit
U/S 44 AB of the I. T. Act for the period for which accounts have been maintained under the
Company's Act. As the tax auditor of ABC Private Limited, how will you react to the Chief
Accountant request?
Q4) Comment : The Auditor is responsible for failure to disclose the affairs of the company
kept out
of books and concealed from him.
Q5) Comment : Balance confirmations from debtors/creditors can only be obtained for
balances
standing in their accounts at the year end?
Q6) Give your comments and observations on the following many cheques have been
received by
the auditor on the last day of the year, but not yet deposted with the bank?
SUBJECT : COST ACCOUNTING
Total Marks : 80
Select any one out of 4 choices give below (2 Marks each X 10 ) (20 Marks)
Q1) Which kind of budgeting does not take into consideration previous figures as base.
a) Zero based budgeting
b) Sales budgeting
c) Fixed budgeting
d) Flexible budgeting
Q2) Which is the term used for internal transfers between profit centres.
a) Process costing
b) Standard costing
c) Transfer pricing
d) Marginal costing.
Q3) Labour cost variance means difference between
a) (Std. Time x Std Rate) (Actual Time x Act Rate)
b) (Std. Time x Act Rate) (Act Time x Act Rate)
c) (Std. Time x Std Rate) (Act Time x Std Rate)
d) (Std. Time x Act Rate) (Std Time x Std Rate)
Q4) Which of the factor is not relevant for cash flow :
a) Depreciation
b) Asset purchased.
c) Cash purchase made
d) Cash sales made
Q13) Following details of A G Ltd are furnished for year 1996. (15 Marks)
First 6 month Balance 6 months
Sales 45,000 50,000
Total Cost 40,000 43,000
Assume there is no change in price and variable cost and fixed expenses are incurred
equally in
two half year periods. Calculate for year 1996.
1) Profit volume ratio.
2) Fixed expenses.
3) Break even sales
4) Margin of safety.
Q14) Labour budget of company for week is as follows : (15 Marks)
20 men @ 50 paise p hr for 40 hr = 400
40 men @ 30 paise p hr for 40 hrs = 480
_______
880
======
Actual Labour was as follows :
30 men @ 50 paise for 40 hr = 600
30 men @ 35 paise for 40 hrs = 420
_______
1020
======
Analyse Labour Variances
Q15) Calculate break even point (10 Marks)
1) S. price in Rs 20
2) Manufacturing vari cost Rs 10.
3) Selling variable cost Rs 5.
4) Fixed overheads = Rs 5,00,000
5) Selling overheads = Rs 2,00,000
SUBJECT : TAXATION
Total Marks : 80
Instructions:
a) Each question carries 20 marks
b) Make assumptions wherever necessary
Q1) a) Mr. Jayant an Indian Citizen, furnishes the following particulars of his income earned
during the
a) Salary includes payment of Rs 20,000 out of India on which no tax has been deducted at
source.
b) The expenditure on scientific research allowable under the Income Tax Act is Rs
2,04,500.
c) Travelling expenses include Rs 2,400 incurred on travelling to Allahabad to attend
Kumbhmela.
d) Diwali expenses include Rs 1,000 paid to son for purchase of cycle.
e) Interest on loan is paid outside India on which no tax has been deducted at source.
f) Advertisement expenses include Rs 2,500 on advertisement in a brochure published by a
political party
and remaining expenses of Rs 15,000 the benefits of which will accrue for the period of 5
years in all.
g) Depreciation allowable as per Income tax is Rs 8,650.
Compute the taxable income from business of Mr. Narayan Vyas for the assessment year
2008-09.
the previous year 2007-08: (20 Marks)
Name of the Asset Cost of acquisition Rs. FMV on 1st April 1981 Rs. Full value of
consideration Rs.
Goodwill of a business --- 40,000 4,00,000
Tenancy rights of a
commercial building
---- 1,00,000 6,00,000
Route permit ---- 50,000 5,00,000
Shares acquired in 1978 70,000 50,000 4,00,000
ii) Would your answer change if the Goodwill transferred is of a profession instead of
business?
iii) What shall be your answer if the shares are sold through a recognized stock exchange
on 1st December
2007
Q4b) The following incomes are received by Mr. Mohan during financial year 2007-08
a) Directors fees Rs 2,000
b) Income from agricultural land in Pakistan Rs 5,000
c) Ground rent for land in Pathankot Rs 10,000
d) Interest on Postal Savings bank A/c Rs 100
e) Interest on deposits with Industrial Finance Corporation of India Rs 500
f) Dividend from a foreign company Rs 700
g) Rent from sub-letting a house Rs 26,250
h) Rent payable by Mr. Mohan for the sub-let house Rs 12,000
i) Other expenses on sub-let-house Rs 1,000