Corrigendum

New Intermediate Course,

Paper 3, Group 1, Cost and Management Accounting
In the printed copy of the Study Material [July, 2017 edition], students may note the following
corrections:
Module Chapt Page Suggested correction in Study Material of July, 2017 edition
er No: No.
1 3 3.35 In the working note to illustration 17,(4-1) shall be read as
(4 -T).The simplification is given as below:
(4  T)
` 37.5 T = T  `30 +  T  ` 30
4
(both sides is divided by T)
` 37.5 = ` 30 + (4 – T)  ` 7.5
` 37.5 = ` 30 + `30 - 7.5T
or, ` 7.5 T = `60-`37.5
or, ` 7.5 T = ` 22.5
or, T = 3 hours.

5 5.11 Quantity of A, B and C shall be read as 4,000,3,000 and 1,600

respectively, hence total quantity shall be 8,600.
6 6.15 Sales revenue for 30% output should be Rs 1,65,00,000 instead of
Rs 1,50,00, 000.Accordingly profit (balancing figure) shall be Rs
38,00,000.
7 7.15 In the solution amount written as Rs 5,000 against store ledger
control A/C may be read as Rs 95,000
2 8 8.17 In the solution semi variable cost for the next 9 months may be read
as Rs 21,00,000 instead of Rs 37,33, 333.Accordingly total of
variable cost, total cost and sales shall be Rs 26,00,000,Rs
2,73,50,000 and 2,93,50,000 respectively. Average selling price shall
be Rs 336.781 per unit.
9 9.21 Total of the Contract Account shall be read as Rs 64,92,750 instead
of Rs 61,26,563.
11 11.6 On pg 11.6, in example, multiplying factor shall be taken as
&11.7 64500/86000 and on pg 11.7, it should be 40000/10000.

12 12.18 Room attendant’s wages (` 10 per Room Day for 21,600 Room Days) 2,16,000
Lighting charges 72,000
Total cost 29,44,800
Add: Profit Margin (20% on Room rent or 25% on Cost) 7,36,200
Total Rent to be charged 36,81,000

Calculation of Room Rent per day:

Total Cost / Equivalent Full Room days = ` 36,81,000/ 18,000 = ` 204.50
Room Rent during Season – ` 204.50
Room Rent during Off season = ` 204.50 × 50% = ` 102.25

14 14.28 In the graph, each of the coordinates should be shifted 1 point to

the left.
 14 14.39 Illustrations 12 can be solved in alternative ways Based on
Weighted Contribution/ Based on distributing fixed cost in the
weighted Contribution Ratio. Alternative answer (break-even
point) shall be X 16202 units and Y 6944 units.

14 14.55 In first situation:15  8,000 - 8,000 x = y – 40,000

In second situation:15  20,000 - 20,000 x = y + 80,000
(should have minus sign instead of plus sign)

Note: The above suggested corrections are being carried out in the respective chapters of
the Study Material to be hosted on the Institute’s website.