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Management Accounting Assignment Guide

The document is an assignment on Management Accounting, covering topics such as DUPONT Analysis, the differences between management and financial accounting, and fixed vs. flexible budgets. It includes practical exercises like preparing a cash budget for three months and calculating financial ratios based on provided data. Additionally, it requires the preparation of a Cash Flow Statement based on summarized balance sheets and additional information.

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Ansh gupta
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31 views2 pages

Management Accounting Assignment Guide

The document is an assignment on Management Accounting, covering topics such as DUPONT Analysis, the differences between management and financial accounting, and fixed vs. flexible budgets. It includes practical exercises like preparing a cash budget for three months and calculating financial ratios based on provided data. Additionally, it requires the preparation of a Cash Flow Statement based on summarized balance sheets and additional information.

Uploaded by

Ansh gupta
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Management Accounting

Assignment

Q1. Write short note on:


a) DUPONT Analysis
b) Difference between Management and Financial Accounting
c) Fixed and Flexible Budget

Q2. Prepare a cash budget for the three months ending 30 June 2012, from the information
given below:
(a) Month Sales Materials Wages Overheads
February 14000 9600 3000 1700
March 15000 9000 3000 1900
April 16000 9200 3200 2000
May 17000 10000 3600 2200
June 18000 10400 4000 2300
(b) Credit terms are:
Sales and debtors- 10% of sales are on cash, 50% of the credit sales are collected in the
next month and the balance in the following month.
Creditors- Materials 2 months
Wages 1 Month
Overheads ½ month
(c) Cash and bank balance on 1 April 2012 is expected to be Rs. 6000
(d) Other relevant information-
i. Plant and Machinery will be installed in February 2012 at a cost of Rs.96000.
the monthly installment of Rs.2000 is payable from April onwards.
ii. Dividend @5% on Preference Share Capital of Rs.200000 will be paid
on 1June.
iii. Advance to be received for sale of vehicles Rs. 9000 in June.
iv. Dividends from investments amounting to Rs 1000 are expected to be
received in June.
v. Income tax (advance) to be paid in June is Rs.2000.

Q3. From the following information given below, calculate the following ratios:
a) Quick Ratio
b) Stock Turnover Ratio
c) Debt-Equity Ratio
d) Return on Investment
Information: Current Assets ₹5,00,000; Opening stock ₹50,000; Closing stock ₹1,50,000;
Cost of goods sold ₹12,00,000; Gross Profit ₹2,00,000; Indirect Expenses ₹20,000; Equity
share capital ₹7,00,000; 10%Preference share capital ₹3,00,000; 12% Debentures ₹2,00,000;
Current Liabilites₹2,00,000; General Reserve ₹1,00,000.
Q4. The following are the summarized Balance Sheet of a company as on 31st December,
2021 and 2022.

Liabilities: 2021 (Rs.) 2022 (Rs.)


Share Capital 2,00,000 2,50,000
General Reserve 50,000 60,000
Profit & Loss 30,500 30,600
Mortgage Loan (Long Term) 70,000 -
Sundry Creditors 1,50,000 1,35,200
Provision for Taxation 30,000 35,000
5,30,500 5,10,800
Assets:
Land and Building 2,00,000 1,90,000
Machinery 1,50,000 1,69,000
Stock 1,00,000 74,000
Sundry Debtors 80,000 64,200
Cash 500 600
Bank - 8,000
Goodwill - 5,000
5,30,500 5,10,800

Additional information: During the year ended 31st December 2022:


a) A dividend of Rs. 23,000 was paid.
b) Assets of another company were purchased for a consideration of Rs. 50,000,
payable in shares. Assets acquired: stock Rs. 20,000; Machinery Rs. 25,000.
c) Machinery was further purchased for Rs. 8,000.
d) Depreciation written off on machinery Rs. 12,000.
e) Income-tax provided during the year Rs. 33,000.
f) Loss on sale of machinery Rs. 200 was written off to general reserve.
You are required to prepare the Cash Flow Statement as per AS 3 (Revised).

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