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1. Subject Code: PMA1A
Paper: Management Accounting
Specific Instructions:
 Answer all the five questions.
 Marks allotted 100. Each Question carries equal marks.
General Instructions:
 The Student should submit this assignment in the handwritten form (not in the typed format)
 The Student should submit this assignment within the time specified by the exam dept
 Each Question mentioned in this assignment should be answered within the word limit specified
 The student should only use the Rule sheet papers for answering the questions.
 The student should attach this assignment paper with the answered papers.
 Failure to comply with the above Five instructions would lead to rejection of assignment.
_____________________________________________________
Question No1
a) What is budgeting ? What are the advantages and limitations of budgeting? State three
points of distinction between fixed and flexible budgeting?
b) What is responsibility accounting? Explain the different responsibility centers.

2. Question No2
Answer the following:
a) What is the impact of bonus issued on the market price of the share?
b) Define window dressing with the help of an example?
c) How EVA and MVA is used as an analytical tool for analysis of company’s
performance?
d) Distinguish between provisions and reserves?
e) What are the various types of profits?
Question No3
A) The following figures have been extracted from the books of account of a Sole
Proprietary concern:
i) The balance in the Provision for Doubtful Debts as on 1 st April, 2007 was Rs. 500
(Credit).
ii) Bad Debts written off during the year till 31 st March, 2008 happened to aggregate
to Rs. 700.
iii) The Provision for Doubtful Debts is required to be maintained at 10 percent of
Total Sundry Debtors which stood at a figure of Rs. 10,000/- as on 31 st March,
2008.
iv) Provide a 5 percent Reserve for Discount as well on Net Sundry Debtors
outstanding as on March 31, 2008.
Find out the closing balance sundry debtors.
B) The following balances were extracted from the books of M/s. Reliance Industries
Ltd. as at the end of 31st March, 2008:
i) Plant and Machinery
Rs. 2,00,000
ii) Furniture
Rs. 50,000
iii) Building
Rs. 1,00,000

3. Provide Depreciation on the above assets at the following rates:
a) 20 percent on Plant and Machinery
b) 10 percent on Furniture and
c) 5 percent on Building
Outline the procedures involved in calculating the above depreciation using the Straight
Line Method as well as the Written-Down Value Method for a period of 2 years ahead of
31st March, 2008, i.e. till 31st March, 2010.
Question No4
The following data are provided for Zia Ltd.: Income Statement Data
Data
Rs.
Rs.
Revenues
84,000
Cost of goods sold
(48,000)
Depreciation expense
(4,000)
Interest expense
(6,000)
Other expenses
(22,000)
Net income
4,000
Comparative Balance Sheets Data
1998
1997
Current Assets
Rs.
Rs.
Cash
20,000
16,000
Debtors (net)
12,000
7,000
Stock in hand
16,000
14,000
Plant and Machinery
24,000
20,000
Less: Accumulated Depreciation
(8,000)
(4,000)
Total Assets
64,000
53,000
Creditors
12,000
14,000
Non-current Note Payable
20,000
20,000
Less: Discount on Note
(1,600)
(2,000)
30,400
32,000
24,000
14,000
Non-current Assets
Liabilities
Owner's Equity

4. Equity Share Capital
9,600
7,000
Retained Earnings
33,600
21,000
Required: Prepare statement of Cash Flows using the Indirect Method and Analyze the
same.
Question No5
No of units Sold
Selling Price Per Unit
Variable manufacturing cost per unit
Variable Selling Cost per unit
Fixed Factory Overheads (Per Year)
Fixed Selling Costs (Per Year)
From the above details, Calculate the:1. Contribution per unit
2. Total Contribution
3. Total Sales
4. P/V ratio
5. Break Even point in Units
6. Break Even Points in Value
7. Total Profit
8. Margin of Safety (in Units)
9. Margin of Safety (in Value)
10. M/S ratio (Margin of Safety ratio)
11. Number of Units to be sold to earn a profit of Rs. 60,000
.
1, 40,000
Rs.20
Rs.11
Rs. 3
Rs 5, 40, 000
Rs 2, 52,000