ASSIGNMENT

DRIVE FALL 2017

PROGRAM Master of Business Administration- MBA
SEMESTER Semester 1
SUBJECT CODE & NAME MBA 104 - FINANCIAL AND MANAGEMENT ACCOUNTING
BK ID B2121
CREDIT & MARKS 4 Credits, 30 marks each

Note The Assignment is divided into 2 sets. You have to answer all questions in both sets. Average score
of both assignments scored by you will be considered as your IA score. Kindly note that answers for 10
marks questions should be approximately of 400 words.

SET 1
Q.No Questions Marks Total Marks
1 Following information obtained from a manufacturing company:
Direct Material 150000
Office Expenses 120000
Factory Expenses 90000
Total Sales 650000
Prime Cost 450000
15% of the output is in stock

Calculate:

(a) Direct Expenses (b) Factory Cost (c) Cost of Production(d) Cost of Sale (e)Profit
A Prepare Cost Sheet 5*2=10 10
2 Assets Fixed Asset 15,00,000
Current Asset 500000

Liabilities Accounts Payable 200000

Reserve and Surplus 100000
10% Debentures 300000
6% Preference Share Capital 300000
Equity Share Capital 1100000
A 1. Calculate Debt-Ratio 5 10
2. Calculate Debt-equity Ratio 5
3 Present a Vertical Analysis of ABC Ltd based on the following figures, also interpret the result.

P&L extract for the year ended 31st March, 2017

Particulars Amount
Sales 15,00,000
Less: Cost of Goods Sold Material 70000
Wages 50000
Factory Overheads 10000
Gross Profit 1370000
Less: Selling & Distribution Overhead 20000
 Administrative Overhead 15000
Earnings before Interest and Taxes 1335000
Less: Interest 35000
Earning before Tax 1300000
Less: Tax 50000
Net Profit 1200000
Capital Employed 12000000
A 1. Presentation of Vertical Analysis 8
2. Interpretation of the result 2
10

SET 2
1 XYZ ltd has recorded a sale of 60000 units in a year, with a selling price of Rs 6 per unit. Moreover,
the company has recorded a prime cost and variable overhead to be Rs 3 and Rs 1 respectively. The
company had a fixed cost of Rs 100000
1. Calculate BEP ( in Rupees) 5
A 2. Calculate MOS 5 10
2 From the following information and assumption that the balance in hand on 1st Jan 2016 is
Rs.1,35,000, prepare a cash budget for January 2016 to June 2016
Month Materials Sales Wages Sales & Production Administrative
Distribution Overhead Overhead
Overhead
January 60900 154000 25000 10000 12000 2500
February 70000 145000 25900 12000 12000 2700
March 61000 123000 23000 15000 12000 2200
April 71000 113000 32000 19000 13000 4000
May 84000 170000 29500 21000 16000 3500
June 87600 155000 25600 24000 16000 3000
Assume that 50% are cash sales. Assets are to be required in Feb. and April. Therefore, provision
should be made for payment of Rs. 26,000 and Rs. 60,000 for the same. An application has been
made to a bank for grant of loan of Rs. 50,000 and it is hoped that it will be received in the month
of May. It is anticipated that a dividend of Rs. 70,000 will be paid in June. Debtors are allowed 1-
month credit. Sales commission @ 3% on sales is to be paid. Creditors (for goods and overhead)
grant one months credit.
A From the above information prepare a Cash Budget
for six months from January 2016 to June 2016 10 10
3 Elucidate Enterprise resource planning and accounting
A Enterprise resource planning and accounting 10 10
# A- ANSWER