Ex/MT 42E/56/2007

B. MET. ENGG. FINAL EXAMINATION, 2007

(2nd Semester)
COSTING AND ACCOUNTANCY
Time : Three hours Full marks : 100
Answer any five Question
1. Journalise the following transactions:
Date Particulars Amount(Rs.)
01.04.07 Opening Balance : Cash in Hand 1234
01.04.07 Opening Balance : Cash at Bank 56789
01.04.07 Cash Sales 67890
02.04.07 Cash Purchase 54.321
02.04.07 Credit Sales to Ajoy 34567
03.04.07 Purchase of Furniture on Credit from Tinu 13579
04.04.07 Issued a Cheque to Anit 24680
05.04.07 Credit Purchase from Anit 35791
06.04.05 Cash Deposited into Bank 13000
07.04.07 Bought Stationery on credit from Sanjoy 4680
08.04.07 Purchase of a motor car on Credit from 23456
Auto Associates
09.04.07 Withdrawn from Bank 53197
10.04.07 Paid Wages 52963
11.04.07 Cheque received from Jimut and deposited 13579
12.0-1.07 Sold goods Jimut on credit 21098
12.04.07 Cash withdrawn from Bank for personal 5432
expenditure
20
2. From the following particulars prepare a Bank Reconciliation
Statement as on 30.04.07 and find out the balance as per Cash
Book:

Rs.
(a) Bank balance as per Bank Statement(Overdraft) 5312
(b) Cheques issued but not presented 9876

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(c) Cheques deposited but not credited 54678 Apportion the overhead among the departments and distribute
(d) A cheque issued has been shown as deposit in Cash Book 12345 the overhead ultimately among the production departments.
(e) Bank charges debited by bank but not shown in the Cash Book 3456
(f) Amount deposited in the bank recorded twice in the Cash Book 7890 20
(g) The receipt column of the Cash Book has been overcast 10000
(h) A cheque drawn for Rs. 90 has been incorrectly recorded as 7. (a) From the following information prepare a cost sheet for the
990 in the Cash Book. 1703 month of March, 2007:
(i) Bank paid directly to Insurance Company {as advised earlier}
Opening Stocks: A) Raw Materials; Rs. 1000 :
Not entered in Cash Book
(j) Interest credited by bank directly Not entered in Cash Book 234 B) Finished Goods( 100 units): Rs 2000
20 Closing Stocks: A) Raw Materials: Rs. 2000;
3. You are required to prepare a Trading and Profit & Loss Account B) Work-in-Progress: Rs. 1500;
for the year ended 31.03 .2007 and a Balance Sheet on that date: Purchase- Rs, 25000, Freight- Rs. 3000, Carriage Outward-
Dr. Cr. Rs. 1500. Direct Wages- Rs.9000, Direct Expenses Rs 2500 :
Rs. Rs. Factory Overhead- Rs. 100000. Administrative Overhead
Land 12,00,000 Rs. 5000. Selling & Distribution Overhead: Rs. 9000.
Building 90,00,000 Sales- Rs. 70000.
Plant & Machinery 1.00,00,000 Unit Produced- 1800, Units Sold- 1700.
Furniture 10,00,000 Also Calculate the Estimated Sales Price for May, 2007 on
Sundry Debtors 12,00,000 the basis of following additional information :
Cash in Hand 9,000 Direct Materials’ price is estimated to be decreased by 10%.
Cash at Bank 24,000 Direct expenses would increase by 10%, Factory Overhead
Audit Fees 45,000 by 60% and Administrative and selling &. Distribution
Bad Debts 12,000 Overhead by 20%. Sales is to be made at a price to earn the
Purchases 1,25,00,000 same rate of profit on sales as before. Estimated Production-
Wages 12,00,000 1800 units, Estimated Sales- 1500 units 10+10
Salaries 8,00,000
Rent 1,20,000 8. Write short notes on any four of the followings : 5x4
Insurance 26,000 (a) Break-even point, (b) Reorder level, (c) FIFO method,
Interest on Loan 34,000 (d) Contribution, (e) Journalised Ledger, (f) Net Present Value.
Opening Stock As on 01.04.04 4,00,000
Capital 1,43,00,000 ––––––––––
Sales 2,20,00,000
Loan 2,00,00
Sundry Creditors 10,42,000
3,75,46,000 3,75,46,000
Additional Information:
(i) Closing stock was valued at Rs. 5,50,000
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Credit received from creditors for raw materials is two months, (ii) Depreciate: a) Plant and Machinery @ 10% p.a.
Wages are paid on monthly basis. There is a lag of one month in b) Furniture @ 15% p.a.;
payment of all other expenses. (iii) c) Buildings @ 5% p.a.
Cash in hand, and at bank together is 10% of net working capital. (iv) Wages outstanding on 31.03.07 Rs. 40,000 20
¼ th of Purchases is made in cash. The production is carried evenly 4. (a) Prepare Stores Ledger under Weighted Average method :
throughout the year. 20 2007 April
01 Opening Stock 2500 Kgs @ Rs.213.
6. A factory runs three production departments and two service
01 Purchase 5000 Kgs @ Rs. 216
departments A, B, C and X & Y respectively. Following details are
02 Issues 3500 Kgs
given for those departments overhead ascertainment
03 Issues 2500 Kgs
Particulars A B C X Y 03 Purchase 4000 Kgs @ Rs. 215
Area occupied 250 sq.m 400 sq.m. 150sq.m. 125sq.m 75 sq.m 04 Purchase 2200 Kgs @ Rs. 214
No. of 35 25 15 15 10 05 Issues 2450Kgs
Employees
06 Issues 2300 Kgs
Value of Rs. 10 cr Rs. 5 cr Rs. 35 cr
06 Destroyed by Fire 124 Kgs
Fixed Assets
07 Purchase 3250 Kgs @ Rs. 213
Machine 25 15 60
07 Issues 1500 Kgs
horsepower
07 Shortage found on 23 Kgs
Indirect Rs. 25,000 Rs. 20,000 Rs. 35,000 Rs.90.000 Rs. 75,000
wages
stock taking
(b) Derive the expression of economic ordering quantity.
Ratio of 2 3 4 1
Distribution
(c) For material A follwing details have been provided:
of Maximum lead time - 4 weeks, Minimum lead time 2 weeks,
Department Maximum usage per week 500 liters, Minimum usage per
X week 300 liters
Ratio of 7 5 3 3 Find out maximum level, minimum level of stock given that
Distribution the reordering quantity is 2,500 liters. 10+5+5
of
Department
Y 5. From the following details concerning a manufacturing enterprise,
Rent Rs. 1 lakh
estimate the amount of working capital needed to finance an activity
level of 80%. The capacity of the company is to produce 24,00,000
Insurance Rs. 50
Thousand units p.a.
Estimated cost of sales : Rs. 100 per unit; Cost of raw materials:
Depreciation Rs.5 lakh
45%; Direct Labour cost: I 5%; Other Direct Expenses : 5%; Factory
Electricity Rs. 10
lakh
Overhead : 12%; Administration Overhead: 11%; Selling Overhead:
7%. Raw materials are in stock for one month , Materials are in
Food & Rs. I lakh
Tiffin
process for ½ month. Credit allowed to debtors for two months,
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