1. “Accountancy is an Information System”. Do you agree? Substantiate your answer with reasons. How does an Accountant help in planning and controlling a large commercial organization? Explain.
2. The following are the Balance Sheets of XYZ Ltd. for the years ending 31st December, 2014 & 2015.
| Particulars 2014 | 2014 | 2015 |
| Rs | Rs | |
| Liabilities | ||
| Equity Share Capital | 2,00,000 | 3,30,000 |
| Preference Share Capital | 1,00,000 | 1,50,000 |
| Reserves | 20,000 | 30,000 |
| Profit and Loss a/c | 15,000 | 20,000 |
| Bank overdraft | 50,000 | 50,000 |
| Creditors | 40,000 | 50,000 |
| Provision for taxation | 20,000 | 25,000 |
| Proposed Dividend | 15,000 | 25,000 |
| Total | 4,60,000 | 6,80,000 |
| Fixed Assets | ||
| Less: Depreciation | 2,40,000 | 3,50,000 |
| Stock | 40,000 | 50,000 |
| Debtors | 1,00,000 | 1,25,000 |
| Bills Receivable | 20,000 | 60,000 |
| Prepaid expenses | 10,000 | 12,000 |
| Cash in Hand | 40,000 | 53,000 |
| Cash in Bank | 10,000 | 30,000 |
| Total | 4,60,000 | 6,80,000 |
Prepare the comparative balance sheet and study its financial position.
3. ABC Ltd. maintains their books of Cost Accounts under standard costing system in which the work-in-progress is debited with actual costs and credited with standard costs. The standard cost card for product X shows:
| Cost Per Unit (Rs) | ||
| Direct material | 1pc @ Rs 1.50 | 1.50 |
| Direct labour | 3hrs @ Rs 1.00 | 3.00 |
| Factory overhead | 3hrs @ Rs 2.50 | 7.50 |
| 12.00 |
Based on Budgeted Factory overhead Rs. 7,500 and budgeted Labour hours 3,000. The following cost and production data are available for the month of March, 1998 in respect of product X.
Cost Data
| 1. | Actual material used in production | 1,100 pcs @ Rs 1.60 |
| 2. | Analysis of pay Roll shows direct labour hrs. | 2,700 pcs @ Rs. 1.20 |
| 3. | Factory overhead as per Factory O.H control account | Rs 7,425 |
| (to be charged to product X) |
Production Data
| Units completed | 950 units |
| Units in closing WIP | 100 units 50% completed |
Cost of units remaining work- in- progress Account is transferred to work- in- progress
Inventory Account. You are required to compute all possible variances.
4. As a Manager what strategy you will adopt so that you are able to efficiently manage the
cash in business?
5. Visit an organization of your choice and find out the investment appraisal methods that
the organization follows. Write a note on your visit.
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