<\/p>\n
This Paper has 26 answerable questions with 0 answered.
\nTotal No. of Questions \u2014 9]
\nTime Allowed : 3 Hours<\/p>\n
Maximum Marks : 100
\nAnswers to questions\u00a0are to be given only in\u00a0English\u00a0except in the cases of candidates who have opted for Hindi medium. If a candidate who has not opted for Hindi medium, answers in Hindi, his answers in Hindi will not be valued.
\nQuestion Nos.1 and 6 are compulsory.
\nAttempt three questions out of the remaining question numbers 2, 3, 4 and 5 and attempt two questions from the remaining Questions Nos. 7, 8 and 9.
\nWorking notes should form part of the answer.
\nMarks
\n1. (a) ABC Ltd. manufactures and sells three types of products P, Q and R. The company has been following conventional method of costing and wishes to shift to Activity Based Costing system. Following data are given for a month:
\nProducts P Q R
\nSales \u2013 No. of units
\nSelling price \u2013 Rs. per unit
\nPrime cost \u2013 Rs. per unit
\nGross production units\/production run
\nNo. of defective units\/production run
\nSet up cost\/production run \u2013 Rs.
\nInspection hours\/production run
\nMachine hours\/production run 50,000
\n18.00
\n12.00
\n5,040
\n40
\n400
\n6
\n40 1,12,000
\n14.00
\n9.00
\n5,620
\n20
\n600
\n8
\n24 54,000
\n12.00
\n8.00
\n6,020
\n20
\n500
\n8
\n60
\nOverhead costs : Rs.
\nSet\u2013up
\nInspection
\nMachines
\nSelling 20,500
\n1,46,000
\n2,84,000
\n3,24,000
\nThe following additional information is given:<\/p>\n
(i) No accumulation of inventory is considered. All good units produced are sold.
\n(ii) Included in the total selling overhead is advertisement cost of Rs.1,66,000. This cost is incurred only for products Q and R. However product P needs no advertisement.
\n(iii) Product Q needs special packing and Rs.1,08,000 is the amount on packing which is included in the total selling overhead cost given above.
\nYou are required to present:
\n(i) Product wise profitability statement under the conventional system assuming all manufacturing and selling overheads are allocated on the basis of unit sold.
\n(ii) Product wise profitability statement as per Activity Based Costing system.
\n12 (0)
\n(b) What is Cost reduction? Explain its scope. 3 (0)
\n(c) Distinguish between: 3
\n(i) Batch costing and Uniform costing. (0)
\n(ii) Normal process loss and Abnormal process loss. ——— (0)
\n2. (a) Bright Shoe\u2013Polish Company manufacturing black and brown polish in one standard size of tin retailing at Rs.12.00 and Rs.13.30 respectively. Following information is supplied to you:
\nOpening Stock:
\nBlack polish
\nBrown polish 2,400 tins
\n8,000 tins
\nClosing Stock:
\nBlack polish
\nBrown polish 5,400 tins
\n3,000 tins
\nSales:
\nBlack polish
\nBrown polish 72,000 tins
\n30,000 tins
\nDirect materials:
\nPolish
\nTins
\nDirect wages
\nProduction overhead
\nAdministration and selling overhead Rs.2,46,000
\nRs.1,20,000
\nRs.2,04,000
\nRs.3,06,000
\nRs.1,02,000
\nThe opening stock of black and brown polish was valued at its production cost. The cost of raw materials for brown polish is 10 per cent higher than that for black, but there is no difference in the cost of tins. Direct wages for brown polish are 8 per cent higher than those of black polish and production overheads are considered to very with direct wages. Administration and selling overhead is absorbed at a uniform rate per tin of polish sold.
\nPrepare a statement to show the cost and profit per tin of polish.<\/p>\n
10 (0)
\n(b) State \u2018essentials of Good Cost\u00a0Accounting\u00a0system\u2019. 4 (0)
\n3. (a) The following details are available from the books of accounts of a contractor with respect to a particular construction work for the year ended 31st March, 2009:
\nRs.
\nContract price
\nCash\u00a0received from contractee (90% of work certified)
\nMaterial sent to site
\nPlanning and estimation cost
\nDirect wages paid
\nCost of plant installed at site
\nDirect expenses
\nEstablishment expenses
\nMaterial returned to store
\nHead office expenses apportioned
\nCost of work uncertified 91,00,000
\n71,91,000
\n35,82,600
\n3,50,000
\n32,62,700
\n7,00,000
\n1,68,000
\n2,03,000
\n14,840
\n2,50,000
\n3,17,000
\nOn 31st March, 2009:
\nMaterial at site
\nAccrued direct wages
\nAccrued direct expenses
\nValue of plant (as revalued) 85,400
\n78,120
\n9,310
\n6,16,000
\nRequired:<\/p>\n
(i)
\n(ii) Prepare the Contract account for the year ended 31st March, 2009.
\nShow the relevant Balance Sheet entries.
\n9 (0)
\n(b) What are the essential requisites for the installation of uniform costing system ? 5 (0)
\n4. (a) ABC Pvt. Ltd. has furnished its Profit and Loss account for the year ended 31st March, 2009 and also given a statement showing reconciliation between the profit as per financial records and cost records. The Profit and Loss account is given below:
\nProfit and Loss account for the year ended 31st March, 2009 (Rs.)
\nParticulars Amount Particulars Amount
\nTo<\/p>\n
To
\nTo
\nTo
\nTo
\nTo
\nTo
\nTo
\nTo
\nTo Opening Stock:
\nRaw Materials
\nW.I.P.
\nFinished goods
\nPurchases
\nDirect wages
\nFactory overheads
\nAdministrative exp.
\nSelling exp.
\nGoodwill written off
\nInterest on loans
\nLegal charges
\nNet profit
\n95,500
\n45,000
\n78,000
\n6,42,000
\n2,22,000
\n2,45,000
\n1,98,500
\n3,42,000
\n80,000
\n50,000
\n42,000
\n1,42,000 By
\nBy<\/p>\n
By Sales
\nClosing Stock:
\nRaw Materials
\nW.I.P.
\nFinished goods
\nDividend received on
\nshares 17,80,000<\/p>\n
99,000
\n58,000
\n80,000<\/p>\n
1,65,000
\nTotal 21,82,000 Total 21,82,000
\nReconciliation Statement as at 31st March, 2009 is given below: (Rs.)
\nAmount Amount
\nProfits as per financial records Add:
\nRaw Material \u2013 Closing stock
\nW.I.P. \u2013 Opening Stock
\nFinished goods \u2013 Operating Stock
\nFinished goods \u2013 Closing Stock
\nGoodwill written off
\nInterest on loans
\n1,500
\n2,000
\n3,000
\n1,000
\n80,000
\n50,000 1,42,000
\nLegal charges 42,000 1,79,500<\/p>\n
Less:
\nRaw Material \u2013 Opening Stock
\nW.I.P. \u2013 Closing Stock
\nDividend received on shares<\/p>\n
2,500
\n3,500
\n1,65,000 3,21,500<\/p>\n
1,71,000
\nProfits as per cost records 1,50,500
\nYou are required to draw up the following accounts in the cost ledger of ABC Pvt. Ltd.:<\/p>\n
(i) Material control\u00a0account
\n(ii) W.I.P. control account
\n(iii) Finished goods control account
\n(iv) Cost of sales account
\n(v) Costing profit and loss account
\n6 (0)
\n(b) X Ltd. is reviewing its stock policy, and has the following alternatives available for the evaluation of stock:
\n(i) Purchase stock\u00a0twice in a month, 400 units.
\n(ii) Purchase monthly, 800 units
\n(iii) Purchase every three months, 2,400 units
\n(iv) Purchase six monthly, 4,800 units
\n(v) Purchase annually, 9,600 units
\nIt is ascertained that the purchase price per unit is Rs.40 for deliveries upto 2,000 units. A 5% discount is offered by the supplier on the whole order where deliveries are 2,001 to 4,000 units and 10% reduction on the total order for deliveries in excess of 4,000 units. Each purchase order incurs administration costs of Rs.250. Interest on capital and other storage costs are Rs.12.50 per unit of average stock quantity held.<\/p>\n
Calculate\u00a0the optimum order size.<\/p>\n
5 (0)
\n(c) State the areas of activity for which\u00a0accounting\u00a0records are to be maintained under Cost\u00a0Accounting\u00a0records rules. 3 (0)
\n5. (a) Explain the following: 6
\n(i) Opportunity\u00a0cost and out\u2013of\u2013pocket cost (0)
\n(ii) High points and low points method of segregating semi\u2013variable costs (0)
\n(iii) Efficiency audit and propriety audit. (0)
\n(b) Enumerate the important objectives of Cost\u00a0accounting. 3 (0)
\n(c) The standard time for a job is 50 hours. The hourly rate of guaranteed wages is Rs.9. Because of\u00a0saving\u00a0in time, a worker X gets an hourly wages of Rs.10.80 under Rowan premium bonus system. For the same\u00a0saving\u00a0in time,\u00a0calculate\u00a0the hourly rate of wages a worker Y will get under Halsey premium bonus system assuming 50 per cent Bonus to worker. 5 (0)
\n6. (a) The following are the summarised Balance Sheet of XYZ Ltd. as on 31st March, 2008 and 2009:
\n(Rs. in 000\u2019)
\nLiabilities 31.3.08 31.3.09 Assets 31.3.08 31.3.09
\nShare capital
\nReserve and surplus
\n12% debenture
\nSundry creditors
\nOutstanding rent
\nIncome\u2013tax payable 3,900
\n1,690
\n\u2013
\n936
\n52
\n520 5,200
\n2,600
\n1,300
\n1,222
\n65
\n195 Plant & machinery
\nLand & building
\nInvestment
\nInventories
\nSundry debtors
\nPrepaid selling expenses
\nCash at bank
\nCash in hand 3,978
\n1,040
\n130
\n676
\n728
\n26
\n494
\n26 5,525
\n1,040
\n130
\n975
\n1,131
\n52
\n1,677
\n52
\n7,098 10,582 7,098 10,582
\nProfit & Loss account for the year ended 31st March, 2009
\n(Rs. in 000\u2019)
\nRs. Rs.
\nTo Opening stock
\nTo Purchases
\nTo Wages
\nTo Gross profit C\/d 806
\n2,080
\n650
\n3,900
\n7,436 By Sales
\nBy Closing stock 6,331
\n1,105<\/p>\n
7,436
\nTo Depreciation
\nTo Office expensesM
\nTo Rent
\nTo Selling & distribution expenses
\nTo Income \u2013 tax
\nTo Net profit C\/d 390
\n390
\n130
\n780
\n1,040
\n1,560
\n4,290 By Gross profit B\/d
\nBy Discount
\nBy Commission
\nBy Dividend 3,900
\n39
\n91
\n260<\/p>\n
4,290
\nTo Dividend
\nTo Balance C\/d 650
\n2,600
\n3,250 By Balance B\/d
\nBy Net profit B\/d 1,690
\n1,560
\n3,250
\nYou are required to prepare a Cash flow statement as per AS-3 (revised).<\/p>\n
12 (0)
\n(b) Discuss the proposition made in Modigliani and Miller approach in capital structure theory. 4 (0)
\n7. (a) Given below are the data on a capital project \u2018M\u2019:
\nAnnual cost saving
\nUseful life
\nInternal rate of return
\nProfitability index
\nSalvage value Rs. 60,000
\n4 years
\n15 %
\n1.064
\n0
\nYou are required to calculate for this project M:<\/p>\n
(i) Cost of project
\n(ii) Payback period
\n(iii) Cost of capital
\n(iv) Not present value.
\nGiven the following table of discount factors:<\/p>\n
Discount factor 15% 14% 13% 12%
\n1 year
\n2 years
\n3 years
\n4 years 0.869
\n0.756
\n0.658
\n0.572
\n2.855 0.877
\n0.769
\n0.675
\n0.592
\n2.913 0.885
\n0.783
\n0.693
\n0.613
\n2.974 0.893
\n0.797
\n0.712
\n0.636
\n3.038
\n8 (0)
\n(b) Explain the role of Finance Manager in the changing scenario of financial management in India. 4 (0)
\n8. (a) A company currently has an annual turnover of Rs. 50 lakhs and an average collection period of 30 days. The company wants to experiment with a more liberal credit policy on the ground that increase in collection period will generate additional sales.
\nFrom the following information, kindly indicate which policy the company should adopt:
\nCredit policy Average collection period Annual sales (Rs. lakhs)
\nA
\nB
\nC
\nD 45 days
\n60 days
\n75 days
\n90 days 56
\n60
\n62
\n63
\nCosts : Variable cost : 80% of sales
\nFixed cost : Rs. 6 lakhs per annum
\nRequired (pre\u2013tax) return on investment : 20%
\nA year may be taken to comprise of 360 days.<\/p>\n
8 (0)
\n(b) (i) What is meant by Venture capital financing? 4 (0)
\n(ii) Name the various financial instruments dealt with in the International market. (0)
\n9. (a) The capital structure of a company as on 31st March, 2009 is as follows:
\nRs.
\nEquity capital : 6,00,000 equity shares of Rs. 100 each
\nReserve and surplus
\n12% debenture of Rs. 100 each 6 crore
\n1.20 crore
\n1.80 crore
\nFor the year ended 31st March, 2009 the company has paid equity dividend @24%. Dividend is likely to grow by 5% every year. The market price of equity share is Rs. 600 per share. Income-tax rate applicable to the company is 30%.<\/p>\n
Required:<\/p>\n
(i) Compute the current weighted average cost of capital.
\n(ii) The company has plan to raise a further Rs. 3 crore by way of long\u2013term loan at 18% interest. If loan is raised, the market price of equity share is expected to fall to Rs. 500 per share. What will be the new weighted average cost of capital of the company?
\n6 (0)
\n(b) A company operates at a production level of 5,000 units. The contribution is Rs. 60 per unit, operating leverage is 6, combined leverage is 24. If tax rate is 30%, what would be its earnings after tax? 4 (0)
\n(c) Discuss the advantages of raising funds by issue of equity shares. 2 (0)<\/p>\n","protected":false},"excerpt":{"rendered":"
CA Question Paper Cost Accounting and Financial Management June 09 This Paper has 26 answerable questions with 0 answered. Total No. of Questions \u2014 9] Time Allowed : 3 Hours Maximum Marks : 100 Answers to questions\u00a0are to be given only in\u00a0English\u00a0except in the cases of candidates who have opted for Hindi medium. If … Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[4731,4930],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24551"}],"collection":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/comments?post=24551"}],"version-history":[{"count":0,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/posts\/24551\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/media?parent=24551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/categories?post=24551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kopykitab.com\/blog\/wp-json\/wp\/v2\/tags?post=24551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}