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MMPC004 IGNOU Assignment Question for Answer

1. During the current year AB Ltd. Showed a profit of Rs. 1,80,000 on a sale of Rs. 30,00,000. The variable expenses were Rs. 21,00,000. You are required to calculate:
1. The break even sales at present.
2. The break even sales if variable cost increased by 5%.
3. The break even sales to maintain the profit as at present, if the selling price is reduced by 6 per cent.

2. kYZ. Ltd. Is currently working at 50oA capacity and produces 10,000 units. At 60% capacity raw material cost increased by 2% and selling price falls by 2 percent. At 80% capacity raw material cost increased by 5% and selling price falls by 5%. At 50% capacity the product costs Rs. 180 per unit and is sold at Rs. 200 per unit. The UIIIiLt cUoUsStt Uof Rs. 1 80 comprises the following
Particular Rs.
Material 100
Wages 30
Factory overheads 30 (40% fixed)
Admini strative Overheads 20 (50% fixed)

Prepare a marginal cost statement showing the estimated profit of the business when it is operating at60Yo and 80% ofcapacity

3. Explain the lollowing
(a) Business Entity Concept
(b) Accrual Concept
(c) Dual Aspect Concept
(d) Cash and Cash equivalents

4. Explain the various Financial Staternents. Which are parts of the Annual Reporl. How can Notes to the accounts help in better understanding of financial statements?

5. What is Human Resource Accounting? How it is used as management decision tool.

Before June2023

1. Explain the following accounting concepts
(a) Business Entity concept
(b) Money measurement concept
(c) Continuity concept
(d) Accrual concept
2. Explain the following
(a) Marginal Costing
(b) Activity Based Costing
3. What is CVP analysis? Does it differ from break even analysis? How is break-even point calculated?
4. Explain in detail the various contents of an Annual Report.
5. From the following calculate cash from operations:
Profit and Loss Account for the year ended 31st March, 2022

Q1. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31st December, 2020 and Balance Sheet as on that date:

Adjustments:
(a) Provide for wages Rs. 5,000.
(b) Write Off 5% depreciation on freehold premises and 10% on office furniture.
(c) Insurance to the extent of Rs. 200 relates to 2021.
(d) Stock on 31.12.2020 is Rs. 5,20,00.
(e) Charge interest on capital 5% and on drawings Rs. 300.
(f) Further bad debts are Rs. 1,000.
(g) Provide for doubtful debts @ 5% on sundry debtors.
(h) Make provisions for discount on debtors and reserve for discount on creditors @2%.
Q2. What is activity based costing (ABC)? How product costs are determined in ABC? Discuss the benefits of ABC.
Q3. What is variance? Explain the need for variance control and discuss the importance of variance control in operational and management control.
Q4. From the following information presented by a firm for the year ended 31st December, prepare the Balance Sheet: