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Sunday, May 27, 2012

Assignment Questions - INTEGRATED & NON-INTEGRATED ACCOUNTING SYSTEM

Assignment Questions

 

INTEGRATED & NON-INTEGRATED ACCOUNTING SYSTEM

 

Question 1.  Gain More Ltd. showed a net loss of Rs. 6,30,000 as per the financial accounts for the year ended 31st March 2004.  The cost accounts however disclosed a loss of Rs. 5,00,000 for the same period.  On scrutiny of the two accounts of the following are available.

 

Particulars

Rs.

Factory OH under recovered

70,000

Administration OH over-recovered

30,000

Depreciation charged to financial accounts

1,50,000

Depreciation charged in cost accounts

1,20,000

Interest on investment not included in cost accounts

30,000

Income Tax provided in financial accounts

1,00,000

Stores adjustment (credit in financial accounts)

10,000

            Prepare a Memorandum Reconciliation Account.

 

2. Pass journal entries in the books of Non-Integrated Accounting system:

Direct wages paid to workers Rs. 1,000;

Material worth Rs. 100 is transferred from Job 1 to Job 2

Indirect wages paid to workers in the production (Rs. 700), administration (Rs. 500), selling and distribution departments (Rs. 300).

Overhead expenses incurred Rs. 500 (Production Rs.150; Administrative Rs.150; Selling and Distribution Rs.200)

 

 

 

3. Journalise the following transactions assuming that cost and financial transactions are integrated:

a. Raw materials purchased Rs.1,00,000;

b. Direct materials issued to production Rs.50,000

c. Wages paid (20% indirect) Rs.2,00,000;

d. Factory OH incurred Rs.44,000;

e. Finished products (at cost) Rs.2,80,000

f. Receipts from debtors Rs. 60,000

g. Payments to creditors Rs.81,000

 

4.  Find out Under recovery or Over recovery based on the following information;

Overhead

Financial A/c

Cost A/c

Difference

1. Factory OH

3,00,000

3,50,000

50,000

2. Administrative OH

4,50,000

4,20,000

30,000

3. Selling OH

2,20,000

2,10,000

10,000

4. Distribution OH

1,80,000

1,90,000

10,000

5. Opening stock

30,000

38,000

8,000

6. Closing stock

29,000

32,000

3,000

 

 

 

 

 

ANSWER HINTS

Question No.

Answer

1

Memorandum Reconciliation Account Total Rs. 7,00,000

2

Ref. Simplified Approach to costing theory book

3

Ref. Simplified Approach to costing theory book

4

1. Over recovered; 2. Under recovered; 3. Under recovered; 4. Over recovered; 5. Over recovered; 6.Over recovered;

 


Assignment Questions - JOB, BATCH & CONTRACT COSTING

Assignment Questions

 

JOB, BATCH & CONTRACT COSTING

 

Question 1. A contract is estimated to be 80% complete in its first year of construction as certified. The contractee pays 75% of value of work certified, as and when certified and makes the final payment on the completion of contract. Following information is available for the first year:

 

Rs.

Cost of work-in-progress uncertified

8,000

Profit transferred to Profit & Loss A/c at the end of year I on  incomplete contract

60,000

Cost of work to date

88,000

Calculate the value of work- in-progress certified and amount of contract price.

 

Question 2. Compute a conservative estimate of profit on a contract (which has been 90% complete) from the following particulars. Calculate the proportion of profit to be taken to Profit & Loss Account under various methods and give your recommendation.

                                                                                                                                                                                       Rs.

Total expenditure to date                                                                                                                                   4,50,000

Estimated further expenditure to complete the contract (including contingencies)                                    25,000

Contract price                                                                                                                                                      6,12,000

Work certified                                                                                                                                                      5,50,800

Work uncertified                                                                                                                                                    34,000

Cash received                                                                                                                                                      4,40,640

 

Question 3. A contract expected to be completed in year 4, exhibits the following information:

End of Year                                               Value of work       Cost of work to        Cost of work not         Cash received

                                                                             Certified                          date                 yet certified

                                                                                    (Rs.)                          (Rs.)                              (Rs.)                          (Rs.)

1.                                                                                       0                       50,000                           50,000                               0

2.                                                                           3,00,000                    2,30,000                           10,000                    2,75,000

3.                                                                           8,00,000                    6,60,000                           20,000                    7,50,000

                                                                                           

The contract price is Rs. 10,00,000 and the estimated profit is 20%.

You are required to calculate, how much profit should have been credited to the Profit and Loss A/c by the end of years 1, 2 and 3.

 

Question 4. A Television company manufactures several components in batches. The following data relates to one component;

Annual demand 32,000 units

Set-up cost per batch Rs.120

Annual rate of interest 12%

Cost of production per unit Rs.16

Find Economic Batch Quantity (EBQ)

 

 

ANSWER HINTS

Question No.

Answer

1

Value of work certified Rs.2,00,000; Contract Price Rs.250,000

2

Rs. 98,640

3

Years 1 = Rs. NIL, Year 2= Rs. 24,444;  and Year 3 = Rs. 1,00,000.

4

2000 units

 

Wednesday, May 23, 2012

CA Clz Sch

PREMIER ACADEMY 

No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954

 

CA Final classes – Nov '12 Exams

SUBJECT

               DAYS              

Duration

Starts

TIME

Fees (Rs.)

Cost Mgt.

&

Quantitative Tech.

(Batch I)     T/T/S

Morning Batch

3 Months

7/6/12

6.15 – 8.45am

Costing 4500

&

QT 1500

(Batch II)   Mon to Fri day

Day Batch

1½ Month

25/6/12

1.45-5.15pm

Indirect Taxation

Mon to Fri day

 

1 Month

25/6/12

5.30 – 8.30pm

4500

Financial Reporting

M/W/F

3 Months

8/6/12

6.30 – 8.45am

5250

 

Faculty

Cost Mgt.

CA.K.HARIHARAN, FCA

Quantitative Tech.

Dr.P.R.VITTAL

Indirect Taxation

CA.N.RAJA SEKHAR, FCA

Financial Reporting

CA.K.SHANMUGANATHAN, FCA

CA IPCC classes – Nov '12 Exams

SUBJECT

Faculty

Duration

Starts

TIME

Fees (Rs.)

Accounts – I

CA.K.SHANMUGANATHAN, FCA

3 Months

25/6/12

9.45am – 1.30

 

4500

Income Tax

 

CA.SEETHALA DEVI, ACA

3500

Service Tax & VAT

CA.N.RAJA SEKHAR, FCA

1500

Auditing

CMA.SUBRAMANIAN, FICWA

3500

Info. Tech & SFM

PROF. BVN.RAJESWER

4000

Costing & FM

CA.K.HARIHARAN, FCA

1½ Month

Mon to Fri day

25/6/12

5.30pm-8pm

5250

Accounts - II

CA.K.SHANMUGANATHAN, FCA

2 Months

Mon to Fri day

25/6/12

2-5pm

4500

Venue

PREMIER ACADEMY

Registration at

  (Pre registration is must)

10/9, Flat no.6, 2nd Floor,

Rainbow Apartments, Norton 1st Street

Mandaveli, Chennai - 600 028

Ph: 98416 61405     99406 23954 / 044 – 2462 2694

Ø               Eminent Faculties from SIRC of  ICAI

Ø               Free Model Exam

Ø               Free Course material & Books

Ø               Individual attention

Ø               No registration Fee


Saturday, May 12, 2012

CA - Nov '12 Exam Class Schedule

PREMIER ACADEMY 

No.222, RK Mutt Road, 2nd Floor, Next to Canara Bank, Opp. to TVS Showroom, Mandaveli, Chennai – 28, 044-24622694 / 9940623954

 

CA Final classes – Nov '12 Exams

SUBJECT

               DAYS              

Duration

Starts

TIME

Fees (Rs.)

Cost Mgt.

&

Quantitative Tech.

(Batch I)     T/T/S

Morning Batch

3 Months

7/6/12

6.15 – 8.45am

Costing 4500

&

QT 1500

(Batch II)   Mon to Fri day

Day Batch

1½ Month

25/6/12

1.45-5.15pm

Indirect Taxation

Mon to Fri day

 

1 Month

25/6/12

5.30 – 8.30pm

4500

Financial Reporting

M/W/F

3 Months

8/6/12

6.30 – 8.45am

5250

 

Faculty

Cost Mgt.

CA.K.HARIHARAN, FCA

Quantitative Tech.

Dr.P.R.VITTAL

Indirect Taxation

CA.N.RAJA SEKHAR, FCA

Financial Reporting

CA.K.SHANMUGANATHAN, FCA

CA IPCC classes – Nov '12 Exams

SUBJECT

Faculty

Duration

Starts

TIME

Fees (Rs.)

Accounts - I

CA.K.SHANMUGANATHAN, FCA

3 Months

25/6/12

9.45am – 1.30

 

4500

Income Tax

CA.SEETHLA DEVI, ACA

3500

Service Tax & VAT

CA.N.RAJA SEKHAR, FCA

1500

Auditing

CMA.SUBRAMANIAN, FICWA

3500

Info. Tech & SFM

PROF. BVN.RAJESWER

4000

Venue

PREMIER ACADEMY

Registration at

  (Pre registration is must)

10/9, Flat no.6, 2nd Floor,

Rainbow Apartments, Norton 1st Street

Mandaveli, Chennai - 600 028

Ph: 98416 61405     99406 23954 / 044 – 2462 2694

Ø               Eminent Faculties from SIRC of  ICAI

Ø               Free Model Exam

Ø               Free Course material & Books

Ø               Individual attention

Ø               No registration Fee

Visit www.cahariharan.blogspot.com

Assignment Questions - JOINT PRODUCT & BY PRODUCT COSTING

Assignment Questions

 

JOINT PRODUCT & BY PRODUCT COSTING

Question 1. A company manufactures P.Q and R from a joint process and allocates joint costs on the basis of relative sales value at split-off. The following data is given

                                                                              P                             Q                             R

Units produced                                 50,000                     40,000                     10,000

Sales value at split off –          Rs 4,20,000                  2,70,000                     60,000

Joint costs – Rs.4,50,000

If 10,000 units of R were processed further and sold for Rs.78,000 what was the gross profit on this sale?

 

 

Question 2. In a concern engaged in process industry, four products emerge from a particular process of operation. The total cost of input for the period ended 30th September 2002 is Rs.2, 53, 500. The details of output, additional cost after 'split off point' and sales value of the products are appended below.

Product

Output – kg

Additional processing

cost after split-off

point – Rs.

Sales value

Rs.

A

8, 000

60, 000

1,68,000

B

5, 000

10, 000

1,10,000

C

3, 000

60,000

D

4, 000

20, 000

90,000

If the products are sold at 'split off point' without further processing, the sales value would have been,

A: Rs.1, 15, 000

B: Rs.90, 000

C: Rs.55, 000

D: Rs.80, 000

You are required to prepare a statement of profi tability based on the products being sold:

I] After further processing, and

II] At the split off point.

 

Question 3. JB Ltd. produces four joint products, A, B, C and D, all of which emerge from the processing of one raw material. The following are the relevant data:

Production for the period:

Joint Product

Number of Units

Selling Price per Unit (Rs.)

A

500

18.00

B

900

8.00

C

400

4.00

D

200

11.00

The company budgets for a profi t of 10% on sales value. The other estimated costs are:

¨              Carriage inwards: Rs.1, 000

¨              Direct wages: Rs.3, 000

¨              Manufacturing overheads: Rs.2, 000

¨              Administration overheads: 10% of the sales value

You are required to,

I] Calculate the maximum price that may be paid for the raw material

II] Prepare a comprehensive cost statement for each of the products allocating the materials and other

costs based up on: Number of units and Sales value.

 

 

 

 

ANSWER HINTS

Question No.

Answer

1

Rs.32,000

2

  1. After further processing ; A=Rs. 27, 000, B=Rs. 25, 000, C= Rs. 15, 000, D=Rs.17, 500.
  2. At the split off point; A=Rs. 29, 257, B=Rs. 22, 897, C= Rs. 13,993, D=Rs. 20, 353.

3

Ì. 10,000;

II. (A) 4500; 8100; 3600; 1800.

     (B) 8100; 6480; 1440; 1980.

 


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