Education In Pakistan

Papers, Notes, Books & Help For Students

UPDATED EDUCATIONAL NEWS INTERVIEW HELP FOR ALL JOBS ONLINE BOOKS SCHOLARSHIPS AVAILABLE INTERNSHIP JOBS

Tag: (Session – 4) Finalterm

VU MGT101- Financial Accounting (Session – 4) FinalTerm solved unsolved past papers Fall 2009

VU MGT101- Financial Accounting (Session – 4) FinalTerm Solved Unsolved Past Papers Fall 2009

Paper N0:15

 

Solved by Chanda Rehman, Nomi chakwal ABr

 

FINALTERM EXAMINATION

 

Fall 2009

 

MGT101- Financial Accounting (Session – 4)

 

 

 

 

Time: 120 min

 

Marks: 87

 

 

 

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

Shares for which amount is paid by public are called ________ shares.

 

►  Paid up

 

►  Authorized

 

►  Bonus shares

 

 

 

 

►  All are correct options

 

 

 

 

 

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

Which of the following is non- profit organization?

 

 

 

 

►  Sole proprietorship

 

►  Partnership

 

►  Limited company

 

►    Trust

 

 

 

 

Question No: 3  ( Marks: 1 )  – Please choose one

 

Commercial Accounting is based on:

 

►  Single entry book keeping

 

►  Double entry book keeping

 

►  Both single and double entry book keeping

 

►  Cash basis of book keeping

 

 

 

 

Question No: 4  ( Marks: 1 )  – Please choose one

 

An Asset that is NOT physical in nature is called _________.

 

 

 

 

►  Intangible Asset

 

►  Liquid Asset

 

►  Current Asset

 

►  Fixed Asset

 

 

 

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

Which of the following is CORRECT about the flow of recording a transaction?

 

 

 

 

 

 

 

Occurrence of event – voucher—Journal—Ledger—Trial Balance—profit and loss account—Balance Sheet

 

 

 

 

►  Occurrence of event—Journal – voucher —Ledger—Trial Balance—profit and loss account—Balance Sheet

 

 

 

 

►  Occurrence of event—Ledger – voucher—Journal—Trial Balance—profit and loss account—Balance Sheet

 

 

 

 

►  Occurrence of event—Trial Balance – voucher—Journal—Ledger—profit and loss account—Balance Sheet

 

 

 

 

 

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

Accounts Receivable & Inventory are the examples of:

 

►  Liquid assets

 

►  Current assets

 

►  Fixed assets

 

►  Capital assets

 

 

 

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle though cheque?

 

 

 

 

►  Vehicle account

 

►  Cash account

 

►  Business account

 

► Bank account

 

 

 

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

Which of the following account will be credited, if business bought goods on credit from Mr. Ali?

 

 

 

 

►  Purchases account

 

►  Mr. Ali account

 

►  Cash account

 

►  Sales account

 

 

 

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

In which of the following condition a company will have positive working capital?

 

 

 

 

►  If current assets > current liabilities

 

►  If current Assets < current Liabilities

 

►  If current assets = current liabilities

 

►  If current assets < current liabilities

 

 

 

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

Which of the following is an example of direct materials cost?

 

 

 

 

 

 

 

► Polish and finishing material for chair

 

►  A piece of wood for the production of chair

 

►  Production worker’s wages

 

►  Depreciation expenses

 

 

 

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

In cost of goods sold statement, the ‘cost of material consumed’ is equal to:

 

 

 

 

►  Opening raw material inventory + Purchases – Ending raw material inventory

 

►  Opening raw material inventory – Purchases + Ending raw material inventory

 

►  Ending raw material inventory + Opening raw material inventory – Purchases

 

►  Ending raw material inventory + Opening raw material inventory + Purchases

 

 

 

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

What would be the value of total factory cost, if the cost of material consumed during the month is Rs. 6,000, labor cost incurred is Rs. 2,000 and the factory over head cost is Rs. 2,500?

 

►  Rs. 6,000

 

►  Rs. 8,000

 

►  Rs. 4,500

 

►  Rs. 10,500

 

 

 

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

In cost of goods sold statement the ‘cost of goods manufactured’ is equal to:

 

►  Total factory cost + Opening work in process + Ending work in process

 

►   Total factory cost + Opening work in process – Ending work in process

 

►  Total factory cost – Opening work in process + Ending work in process

 

►  Ending work in process +Total factory cost – Opening work in process

 

 

 

 

Question No: 14  ( Marks: 1 )

– Please choose one

Cost of asset

Rs. 1,00,000

Life of asset

5 years

Depreciation for each year

Rs. 5,000

Sale price after 5 years

Rs.50,000

Book value of Asset after 5 years

?

 

 

 

 

►  Rs.25, 000

 

►  Rs. 75,000

 

►  Rs. 15,000

 

►  Rs. 1, 00,000

 

 

 

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

Particulars

Rs.

Opening stock of raw material

100,000

Closing stock of raw material

85,000

Purchases of raw material during the period

200, 000

Cost of Material Consumed

?

 

 

 

 

►  Rs. 205,000

 

►  Rs. 215,000

 

 

►  Rs. 220,000

 

►  Rs. 225,000

 

 

 

 

Question No: 16 ( Marks: 1 )  – Please choose one
Consider the following:
Beginning inventory 10 units @ Rs. 10 per unit
First purchase 35 units @ Rs. 11 per unit
Second purchase 40 units @ Rs. 12 per unit
Third purchase 20 units @ Rs. 13 per unit

 

Eighty units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?

 

►  Rs.260

 

►  Rs.232

 

►  Rs.284

 

►  Rs.320

 

[100+385+480+260=1225-905= (10*10=100, 35*11=385, 35*12=420)]

 

 

 

 

 

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

Find out the missing value of an Accounting Equation with the help of given data:

 

 

 

 

 

 

Cash Rs.1, 00, 000
Debtors Rs.10, 000
Other Assets Rs. 1,000
Owner’s equity Rs. 1, 000

 

 

 

►  Rs. 12,000 liabilities

 

►  Rs. 11,000 liabilities

 

►  Rs. 1, 10,000 liabilities

 

►  Rs. 1, 11,000 liabilities

 

 

 

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

Bank Statement is a record of transactions between the bank and the holder of:

 

 

 

 

 

 

►  A foreign currency account

 

►  A current account

 

►  A saving account

 

►  All of the given options

 

 

 

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

Which of the following option is TRUE about the characteristic(s) of Bad Debt?

 

►  It is a definite loss to the business

 

►  It is not shown in Balance Sheet

 

►  No provision is necessary for it

 

►  All of the given options

 

 

 

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

Consider the following data and identify the amount which will be deducted from Sundry Debtors in Balance Sheet.

 

Particulars

Rs.

Bad debts (from trial balance)

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

800

 

 

 

 

►  Rs. 400

 

►  Rs. 800

 

►  Rs. 2,000

 

►  Rs. 2,400

 

 

 

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

Which of the following entry is passed to record discount allowed in control account?

 

 

 

 

►  Discount Allowed (Dr) and Debtors Control A/c (Cr)

 

►  Discount Allowed (Dr) and Debtors A/c (Cr)

 

►  Debtors Control A/c (Dr) and Discount Allowed (Cr)

 

►  Debtors A/c (Dr) and Discount Allowed (Cr)

 

 

 

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

Which of the following entry will be recorded, if a cheque deposited is dishonored by bank?

 

 

 

 

 

 

 

 

► Bank Account (Dr.) and Debtor’s Account (Cr.)

 

►  Debtor’s Account (Dr.) and Bank Account (Cr.)

 

►  Dishonored Cheque Account (Dr.) and Bank Account (Cr.)

 

►  Creditor’s Account (Dr.) and Bank Account (Cr.)

 

 

 

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 10% of the sundry debtors are doubtful. Actual bad debts are Rs. 1600. What amount of new provision for doubtful debts will be deducted from Sundry debtors?

 

 

 

 

►  Rs. 3,600

 

►  Rs. 4,000

 

►  Rs. 1,600

 

►  Rs. 2, 400

 

 

 

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

Which of the following is CORRECT if depreciation is given in trial balance?

 

►  All of the given options are correct

 

►  It means depreciation has already been deducted from concerned asset account

 

►  It will be shown as an expense in income statement only

 

►  It will not be deducted from concerned asset in Balance Sheet

 

 

 

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

The persons who sign articles and memorandum of the company and contribute in the initial share capital of the company are called:

 

 

 

►  Subscribers

 

►  Shareholders

 

►  Managers

 

►  Directors

 

 

 

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

Merchandise on hand at either the beginning or end of the reporting period is called_________.

 

►  Raw material

 

►  Cost of good sold

 

►  Work in process

 

►  Inventory

 

 

 

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

In which of the following auditor’s remuneration payable is shown?

 

 

 

 

►  In balance sheet under the head of current liabilities only

 

►  In balance sheet under the head of current assets only

 

►  In income statement under the administrative expense only

 

►  In both balance sheet under the head of current liabilities and income statement under the administrative expense

 

 

 

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

In which of the following interim dividend is treated?

 

 

 

 

 

 

►  In profit and Loss account

 

►  In profit and Loss appropriation account

 

►  On the asset side of the Balance Sheet

 

►  In trading account

 

 

 

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

Which of the following documents contains rules and regulations for internal management of the company?

 

 

 

 

 

 

►  Memorandum of Association

 

►  Articles of Association

 

►  Prospectus

 

►  Statutory Declaration

 

 

 

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

Which of the following is NOT a cash inflow?

 

 

 

 

►  Sale of fixed asset

 

►  Issue of debentures

 

►  Cash from business operation

 

►  Purchase of fixed asset

 

 

 

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

In cash flow statements, which of the following would appear as a cash outflow?

 

 

 

 

►  The payments for purchases made during the year

 

►  A decrease in trade debtors over the course of an accounting period

 

►  Money received as a result of issuing new shares

 

►  Money received as result of selling fixed assets

 

 

 

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

Which of the following statement in NOT TRUE about the limited company form of business?

 

►  The limited company form of business allows ownership of the business to be spread amongst many people

 

►  Shareholders can appoint professionals

 

►  Shareholders are personally liable for all the liabilities incurred by the business

 

►  Regular filing of information about the affairs of the company is a legal requirement

 

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

What does a credit balance in a partner’s current account represent to a business?

 

►  Current Assets

 

►  Current Liability

 

►  Long-term liability

 

►  Share of profit

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

A company declares a cash dividend to be paid to its stockholders next month. The effect of the transaction is to:

 

 

 

 

►  Decrease assets and liabilities.

 

►  Increase assets and stockholders’ equity.

 

►  Decrease assets and stockholders’ equity.

 

►  Increase liabilities and decrease stockholders’ equity.

 

 

 

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

An uncollectible account receivable is also termed as:

 

 

 

 

►  Asset

 

►  Uncollectible asset

 

►  Uncollectible accounts expense

 

►  None of the given options

 

 

 

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

Suppose a firm has 100 debtors, and each of them owes exactly Rs.150 at the start of June. During June each debtor has paid-off exactly Rs.100 on their account, either by cash or by cheque. What should be the revised total debtors figure?

 

►  Rs. 5,000

 

►  Rs. 9,850

 

►  Rs. 25,000

 

►  Rs. 14,900

 

 

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

Credit sales appear on the __ __________ side of the Debtors control account.

 

►  Left side or credit

 

►  Left side or debit

 

►  Right side or debit

 

►  Right side or credit

 

 

 

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

The financial year of Atif Brothers & Co. is closed on June 30, 2009. Total cash sales are Rs. 150,000, credit sales are Rs. 180,000 and total receipts are Rs. 250,000. Credit receipts will be:

 

►  Rs. 150,000

 

►  Rs. 100,000

 

►  Rs. 220,000

 

►  Rs. 280,000

 

 

 

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

Which of the following is usually not an accrued expense?

 

►  Interest payable

 

►  Wages payable

 

►  Taxes payable

 

►  Notes payable ( its liability not an expense)

 

 

 

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

Which of the following is NOT a financial statement?

 

►  Balance sheet

 

►  Audit report

 

►  Income statement

 

►  Cash flow statement

 

 

 

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

Sunset tours has Rs.3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary makes a partial payment of Rs.2,100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:

 

►  A debit to the Cash Received account of Rs. 3,500

 

►  A credit to the Accounts Receivable account of Rs.2,100

 

►  A debit to the Cash account of Rs.1,400

 

►  A debit to the Accounts Receivables account of Rs.1,400

 

 

 

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

A and B entered in partnership in capital ratio of 2:3. They earned a profit of Rs.6,600 during

 

the year. What will be the share of profit of Mr. A? ► Rs.2,640

 

 

 

 

►  Rs.1,320

 

►  Rs.2,640

 

►  Rs.3,960

 

►  Rs.6,600

 

 

 

 

 

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

Income tax expense of Eden Corporation shows a debit balance of Rs.7,000 in its unadjusted trial balance and Rs.7,600 in adjusted trial balance. Which of the following account will be debited in adjusting entry? ► Income tax expense

 

 

 

 

►  Income tax payable

 

►  Prepaid income tax

 

►  Income tax expense

 

►  Income tax paid

 

 

 

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

Sanders Construction sold a plant asset that originally cost Rs.80,000 for Rs.52,000 cash. If Sanders correctly reports a Rs.5,000 gain on this sale, the accumulated depreciation on the asset at the date of sale must have been:

 

►  Rs.23,000

 

►  Rs.28,000

 

►  Rs.33,000

 

►  Some other amount

 

 

 

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

Mr. A & B entered into a partnership invested Rs.65,000 and Rs.50,000 with an equal share in profit or loss. Markup on drawings of Mr. A is Rs.1,000 and of Mr. B is Rs.1,500. The net income for the year is Rs.55,000. What will be the amount of distributable profit? ► Rs.57,500

 

►  Rs.52,500

 

►  Rs.56,000

 

►  Rs.56,500

 

►  Rs.57,500

 

 

 

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,000 and markup on drawings of Mr. B is Rs.3,000. The net

 

income for the year is Rs.50,000. What will be the profit share of Mr. A? ► Rs.22,500

 

 

 

 

►  Rs.22,500

 

►  Rs.25,500

 

►  Rs.27,500

 

►  Rs.55,000

 

 

 

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

Which of the following is quoted company?

 

 

 

 

►  Private Limited Company

 

►  Public Limited Company

 

►  Listed company

 

►  Non Listed Company

 

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

Which of the following can be utilized to issue bonus shares?

 

►  Reserves

 

►  Debentures

 

►  Share premium

 

 

► Term finance certificate

 

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

Which of the following can be utilized to set off any loss on revaluation?

 

►  Capital reserve

 

►  General reserve

 

►  Revaluation reserve

 

►  None of the given options

 

 

 

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

Which of the following capital is required for the registration of the company?

 

►  Issued capital

 

►  Subscribed capital

 

►  Authorized capital

 

►  Reserve capital

 

 

 

 

Question No: 51  ( Marks: 1 )  – Please choose one

 

Which of the following capital is taken up by the general public?

 

►  Issued capital

 

►  Subscribed capital

 

►  Authorized capital

 

►  Reserve capital

 

 

Question No: 52  ( Marks: 1 )  – Please choose one

 

According to the statement of cash flows following are the examples of investing activities except:

 

►  Sales of machinery

 

►  Capital invested by the owners

 

►  Purchase of building for the business use

 

►  Cash received from the disposal of equipment

 

 

 

 

Question No: 53  ( Marks: 1 )  – Please choose one

 

The financial statement that captures both the current operating result and the associated changes in the balance sheet is:

 

►  Statement of retained earnings

 

►  Statement of financial position

 

►  Statement of cash flows

 

►  Statement of changes in equity

 

 

 

 

Question No: 54  ( Marks: 1 )  – Please choose one

 

In statement of cash flows, all of the following items are considered as financing activity, except:

 

►  Cash received from issuance of shares

 

►  Cash received from issuance of bonds

 

►  Payment made for short term debts

 

►  Collections on loans

 

 

 

 

 

 

Question No: 55  ( Marks: 3 )

 

Mr. Hassan is a partner in a partnership firm. His capital on July 1, 2001 was Rs. 400,000. He invested further capital of Rs. 150,000 on March 01, 2002. Markup rate is @6%p.a. The financial year of such a business is from 1st July to 30th June.

 

Required: You are required to calculate his markup on Capital at the end of 30th June 2002.

 

 

 

 

 

 

 

 

 

400000×6/100=2400

 

400000

 

 

 

 

 

 

Question No: 56  ( Marks: 5 )

 

What do you mean by “Bad Debts” and “Doubtful Debts”? Distinguish between these.

 

Ans: Bad Debts

 

when we are going to sell the products on credit so our business take risk that there are some customer in market that they will never pay for stock sold to them.So,such situation in which the amount which is due to the debetor are call bad debts

 

This is a loss sustained loss for business due to risk. It is recorded in Profit and Loss Account in the period in which it is happen.

 

 

 

 

Doubtful Debts

 

A doubtful debt is a debt, which the business considers may not be paid

 

 

 

 

 

 

 

Question No: 57  ( Marks: 5 )

 

a. In trial balance at June 30, 2007 10% debentures are shown at Rs.75,000 and mark up on debentures are shown at Rs.3,750. Six months debenture mark up is to be accrued. What will be the amount of total mark up on debentures show in profit and loss account?

 

 

 

 

 

 

 

 

 

 

 

 

  1. From the following information calculate cost of goods sold.

 

Stock opening balance

Rs.56,950

Purchases

175,750

Stock closing balance

65,020

Carriage inward

5,200

Sales

245,500

 

 

 

 

Opening stock :

Rs.56,950

Add bpurchase:

175,750

Add Carriage inward :

5,200

Less Stock closing balance:

(65020)

 

 

 

 

Cost of goods sold               =                       Rs 172,880

 

 

 

 

 

 

Question No: 58  ( Marks: 10 )

 

Prepare Bank Reconciliation Statement as on 31st March 2009 with the help of given data.

 

 

 

 

Particulars

Rs.

1

Balance as per Cash Book (Dr.)

180,000

2

Cheques paid into Bank in March 2009 but credited by the bank in April 2009

7,900

4,500

1,300

3

Cheques issued in March 2009 but cashed in April 2009

11,000

5,800

4

Cheques entered in the Cash Book in March 2009 but paid into bank in April 2009

1,000

5

Interest allowed by the bank

2,500

6

Interest charged by the bank

500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S.No Narration / Withdrawals Deposits Balance
Particulars Amountnt Amount Dr/(Cr)
Balance as per Cash Book (Dr.) 180,000
7900
4500

 

1300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Question No: 59  ( Marks: 10 )

 

Listed below are selected items from the financial statements of ABC Mfg. Co. for the year ended December 31, 2007.

 

 

 

 

 

 

Note payable to Bank Al-Falah

Rs.500,000

Income taxes payable

40,000

Mortgage note payable

750,000

Accrued interest on mortgage note payable

5,000

Trade accounts payable

250,000

Unearned revenue

15,000

Accrued expenses and payroll taxes

60,000

Debenture

500,000

 

Other information:

 

  1. The note payable owed to Bank Al-Falah is due in 60 days. ABC Mfg. Co. has arranged with this bank to renew the note for an additional 24 months.

 

  1. The mortgage requires payment of Rs.6,000 per month. An amortization table shows that its balance will be paid down to Rs.739,000 by December 31, 2008.

 

  1. Debenture of Rs.150,000 is due in 180 days.

 

Instructions:

 

Using the information, prepare the current liabilities and long-term liabilities sections of a classified balance sheet at December 31, 2007.

 

Solved by Chanda Rehman, Nomi chakwal and ABr

 

Paper N0:16

 

 

 

 

FINALTERM EXAMINATION

 

Fall 2009

 

MGT101- Financial Accounting (Session – 2)

 

Time: 120 min

 

Marks: 87

 

 

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

Double entry accounting system includes:

 

► Accrual accounting only

 

► Cash accounting only

 

Both cash and accrual accounting

 

► None of the given options

 

 

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

If a business purchases machinery for Rs. 30,000 on 31st January 2008 having life of 10 years, this expense will be realized ___________ under the concept of accrual accounting.

 

► For the year 2008 only

 

► For the last day of 10th year only

 

Over 10 years

 

► Nothing can be said about it

 

Question No: 3  ( Marks: 1 )  – Please choose one

 

According to the double entry system of accounting, an account that obtains benefit is:

 

Debit (Handouts Page 11, 12)

 

► Credit

 

► Income

 

► No need to show as accounting record

 

 

 

Question No: 4  ( Marks: 1 )  – Please choose one

 

What will be the effect on accounting equation, when payment is made to the creditor of the business?

 

 

 

► Increase in an asset, increase in owner’s equity

 

► Increase in an asset, increase in a liability

 

► Decrease in an asset, decrease in owner’s equity

 

Decrease in an asset, decrease in a liability

 

 

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

Which of the following is CORRECT for Trading account?

 

 

 

It inculdes cost of goods sold and all the direct expenses related to sales

 

► It inculdes cost of goods sold and all the indirect expenses related to sales

 

► It inculdes cost of goods sold and all the direct and indirect expenses

 

► It inculdes cost of goods sold and all the direct and selling, administrative expenses

 

 

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

Which of the following organizations do NOT prepare Income & Expenditure account?

 

► Public limited companies

 

► Private limited companies

 

► Partnership firms

 

►  All of the given options

 

 

 

 

 

 

 

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

An asset on the balance sheet which is expected to be sold or used within one year is known as:

 

 

 

► Tangible asset

 

Current asset

 

► Fixed asset

 

► Long term asset

 

 

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

In which of the following condition a company will have positive working capital?

 

If current assets > current liabilities

 

► If current Assets < current Liabilities

 

► If current assets = current liabilities

 

► If current assets < current liabilities

 

 

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

If the Company ABC has current assets Rs. 100,000, current liabilities Rs. 75,000 and fixed assets Rs. 200,000, what would be the value of working capital?

 

 

 

Rs. 25,000

 

► Rs. 1, 00,000

 

► Rs. 1, 75,000

 

► Rs. 3, 00,000

 

 

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

The total of all costs incurred to convert raw material into finished goods is known as:

 

 

 

Prime cost (Handouts Page 121)

 

► Conversion cost

 

► Sunk cost

 

► Opportunity cost

 

 

 

 

 

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

Particulars

Rs.

Opening stock of raw material

100,000

Closing stock of raw material

80,000

Purchases of raw material during the

200, 000

period
Cost of Material Consumed

?

 

 

► Rs. 205,000

 

► Rs. 215,000

 

Rs. 220,000

 

► Rs. 225,000

 

 

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

Accounting is the language of:

 

 

 

Business

 

► School

 

► Proprietor

 

► Management

 

 

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

Bank Statement is a record of transactions between the bank and the holder of:

 

 

 

► A foreign currency account

 

► A current account

 

► A saving account

 

►  All of the given options

 

 

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars

Rs.

Bad debts

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

800

 

 

Rs. 400

 

► Rs. 800

 

► Rs. 2,000

 

► Rs. 2,400

 

 

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

Following information are extracted from books of Mr. XYZ

 

 

 

Particulars

Rs.

Closing value of stock

40,000

Bad Debts (Given in trial balance)

500

Old provisions (Given in trial balance)

800

Sundry Debtors (Given in trial balance)

44,500

Provision for doubtful debts @ 5%
Which amount of new provision will be deducted from Sundry Debtors

?

 

 

Rs. 2,225

 

► Rs. 2,525

 

► Rs. 1,925

 

► Rs. 3,025

 

 

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31-12-2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. What entry will pass to transfer the bad debts to provision for doubtful debts?

 

 

 

► Profit & Loss a/c Rs. 1,600 (Dr) & Provision for doubtful debts a/c Rs. 1,600 (Cr)

 

Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)

 

► Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)

 

► Provision for doubtful debts a/c Rs. 1,600 (Dr) & Bad Debts a/c Rs. 1,600 (Cr)

 

 

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

Which of the following is/are the item/s of a Control Account?

 

► Credit sale only

 

► Cash sale only

 

► Credit purchase only

 

Both Credit sales and Credit purchase

 

 

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

Which of the following is a detailed record of an individual account in case of large business?

 

► Control Account

 

Subsidiary Ledger

 

► Balance Sheet

 

► Trial Balance

 

 

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

If the provision for doubtful debts is not created, which of the following entry is passed to record the bad debts in control account?

 

► Debtors Control A/c (Dr) and Allowance for doubtful debts (Cr)

 

Bade debts (Dr) and Debtors Control A/c (Cr)

 

► Allowance for doubtful debts (Dr) and Debtors Control A/c (Cr)

 

► Allowance for doubtful debts (Dr) and Debtors A/c (Cr)

 

 

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

Which of the following account(s) will be affected, while rectifying the error of carriage charges, paid for a new plant purchased mistakenly debited to carriage account?

 

 

 

► Plant account

 

► Carriage account

 

Both plant account and carriage account

 

► Trading account

 

 

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

Which of the following item must be recorded in the adjusted Cash Book in order to bring it in line with the entries in the Bank Statement?

 

 

 

Bank charges

 

► An error on the Bank Statement

 

► An uncredited deposit

 

► An unpresented cheque

 

 

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

Which of the following is normally treated as the last expense listed in the income statement of

 

a  company?

 

 

 

► Interest expense

 

► General and administrative expenses

 

► Salaries and wages expense

 

Income tax expense

 

 

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

The Balance Sheet item that represents the resources invested by the owner is known as:

 

► Accounts Receivable

 

► Cash

 

► Note Payable

 

Owner’s Equity (Handouts Lesson 12, Page 83)

 

 

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

Which financial statement show what a business owes at a particular point in time?

 

 

 

► A cash flow statement

 

► The bank statement for the business

 

►  A balance sheet

 

► A statement of retained earnings

 

 

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

Which of the following account is affected from the Drawings of cash in sole-proprietorship business?

 

Capital account

 

► Shareholder account

 

► Liability account

 

► Expense account

 

 

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

In which type of a business, the owner and his business are considered same in the eyes of law?

 

Sole proprietorship

 

► Public companies

 

► Limited companies

 

► Listed companies

 

 

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

Fixed Assets (WDV) + Working Capital =?

 

 

 

Total assets employed

 

► Total liabilities

 

► Total assets

 

► Current assets

 

 

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

When the capitals are fixed, which of the following account will be debited for drawings made by a partner?

 

 

 

 

 

Individual Partner’s Current Account

 

► Partner’s Cash Account

 

► Partner’s Bank Account

 

► Partners Capital Account

 

 

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

Which of the following documents contains rules and regulations for internal management of the company?

 

 

 

► Memorandum of Association

 

►  Articles of Association

 

► Prospectus

 

► Statutory Declaration

 

 

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

When preparing a cash flow statement, which of the following would be classified as a financing activity?

 

 

 

►  A new long-term loan taken out to finance the purchase of fixed assets

 

► Salaries paid

 

► Interest paid on a long-term bank loan

 

► The cost of purchasing a patent

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES (Handouts Page 266)

 

Cash flow from financing activities includes cash receipts and payments that arise from Owners of the business and other long term liabilities of the organization.

 

• Cash receipts and payments for other long term loans and borrowings.

 

 

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

Current ratio may be increased by:

 

Overstating current Assets (Handouts Page 311)

 

► Overstating current Liabilities

 

► Understating current Assets

 

► Understating current assets and overstating current liabilities

 

 

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

Mark up cover ratio = operating profit before financial charges   ÷            ?

 

► Selling expenses

 

► Administrative expenses

 

Financial charges (Handouts Page 311)

 

► Direct expenses

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

In which situation(s) Partnership is dissolved?

 

 

 

► In case of death of partner

 

► At the admission of new partner

 

► If any partner resigned from partnership

 

►  All of the given options

 

 

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

If company has distributable profit of Rs. 490,000, Profit sharing share ratio of Mr. A, Mr. B and Mr. C is 2:3:5 respectively. What will be the share of profit for Mr. A in distributable profit?

 

 

 

Rs. 98,000

 

► Rs. 147,000

 

► Rs. 245,000

 

► Rs. 343,000

 

 

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

The beginning balance of retained earnings was Rs. 7,500. The dividends paid to stockholders’ were Rs.1, 500. The ending balance of retained earnings is Rs. 5,000. What was the net income or net loss for the accounting period?

 

► Net loss of Rs.1, 000

 

Net income of Rs. 1,000

 

► Net loss of Rs. 2,000

 

► Net income of Rs. 2,500

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

A company declares a cash dividend to be paid to its stockholders next month. The effect of the transaction is to:

 

 

 

 

 

 

 

 

 

 

► Decrease assets and liabilities.

 

► Increase assets and stockholders’ equity.

 

Decrease assets and stockholders’ equity.

 

► Increase liabilities and decrease stockholders’ equity.

 

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

Which of the following statement is the detail of transaction in one’s account provided by the bank?

 

Bank statement

 

► Bank reconciliation statement

 

► Income statement

 

► Financial statement

 

 

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

An asset cost Rs. 50,000, has an estimated residual value of Rs.1, 500, and an estimated useful life of 8 years. What is the depreciation rate under reducing balance method?

 

 

 

 

 

► 11.5%

 

► 20.0%

 

► 25.0%

 

35.5%

 

 

 

(Handouts Page 135)

 

In reducing balance method, a formula is used for calculation of depreciation rate. i e.

 

 

 

Rate  = 1 – NRV / C = 1 – 81500 / 50000 = 1 – 80.03 = 1 – 0.645 = 0.355 × 100 = 35.5%

 

 

 

Or        = 1 – (RV / C)1/ N = 1 – (1500/50000)1/ 8 = 1- (0.03)1/ 8 = 1- 0.645=0.355 × 100= 35.5%

 

 

 

 

 

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

According to the double entry system of book keeping, the investment of Rs.10, 000 in the business made by the owner will effect:

 

 

 

 

 

Cash Account & Capital Account

 

► Cash Account & Expense Account

 

► Capital Account & Revenue Account

 

► Capital Account & Expense Account

 

 

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

Which of the following transaction have NO affect on stockholders’ equity?

 

Purchase of building on credit

 

► Dividends to stockholders

 

► Net loss

 

► Investment in cash by stockholders

 

 

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

Receipts from debtors appear on the ___________ side of the individual debtors account.

 

► Left side or credit

 

► Left side or debit

 

► Right side or debit

 

Right side or credit

 

 

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

We usually allow the customer to deduct a certain amount from the invoice value for prompt payment. In doing so we are granting a:

 

► Commission

 

► Allowance

 

Discount

 

► Rebate

 

 

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

The financial year of Atif Brothers & Co. is closed on June 30, 2009. Total cash sales are Rs. 150,000, credit sales are Rs. 180,000 and total receipts are Rs. 250,000. Credit receipts will be:

 

► Rs. 150,000

 

Rs. 100,000

 

► Rs. 220,000

 

► Rs. 280,000

 

 

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

Capital and drawings are reported in which of the following section of balance sheet?

 

► Assets

 

► Other assets

 

► Non current liabilities

 

Owner’s equity

 

 

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

Insurance premiums paid in advance but not yet expired are reported in which of the following account?

 

► Insurance payable

 

Prepaid insurance

 

► Advance payment account

 

► Insurance expense

 

 

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,500 and markup on drawings of Mr. B is Rs.2,800. The net income for the year is Rs.95,000. What will be the amount of distributable profit?

 

► Rs.89, 700

 

► Rs.94, 700

 

► Rs.95, 300

 

Rs.100, 300 (Not 100 % sure)

 

 

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,000 and markup on drawings of Mr. B is Rs.3,000. The net income for the year is Rs.50,000. What will be the profit share of Mr. A?

 

► Rs.22, 500

 

► Rs.25, 500

 

Rs.27, 500

 

 

► Rs.55, 000

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

How many members can subscribe their names in memorandum of association for registration of public limited company?

 

► 2

 

► 3

 

► 5

 

7

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

Which of the following can be utilized to set off any loss on revaluation?

 

► Capital reserve

 

► General reserve

 

Revaluation reserve

 

► None of the given options

 

 

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

According to the statement of cash flows following are the examples of investing activities except:

 

► Sales of machinery

 

Capital invested by the owners

 

► Purchase of building for the business use

 

► Cash received from the disposal of equipment

 

 

 

No: 51  ( Marks: 1 )  – Please choose one

 

Which of the following ratio is widely used to measure the short-term debt-paying ability of a company? (Correct Answer is Creditors Turnover Ratio)

 

 

 

► Acid-test ratio

 

► Debt ratio

 

► Current ratio

 

None of the given options

 

 

 

Creditors Turnover Ratio (Handouts Page 309)

 

Creditors turnover means how many times or in how many days a company pay to its creditors. The formulae for this ratio are as follows:

 

Creditor Turnover (Number of days) = (Average Creditors / Credit Purchases) x 365

 

Creditor Turnover (Number of times) = Credit Purchases / Average Creditors

 

 

 

Acid Test Ratio (Handouts Page 311)

 

Acid test ratio is the proportion of current assets which are convertible into cash and current liabilities. The formula for calculating this ratio is as follows:

 

Acid Test Ratio = (Current Assets – Stock) / Current Liabilities

 

 

 

Debt Equity Ratio (Handouts Page 310)

 

This ratio shows the composition of finance that have funded the asset of the company. This ratio varies for different projects. In Pakistan, maximum advised ratio is 60: 40. i-e. 40% of the assets should be bought with company, s investment and 60% should be bought with the loan taken by the company. The formula for calculating this ratio is as follows:

 

Debt Equity Ratio = Long term Liabilities / Equity

 

 

 

Current Ratio (Handouts Page 310,311)

 

Current ratio shows the proportion of current assets and current liabilities. This ratio should be 1:1. i-e. For every liability of one rupee, there should be an asset of one rupee to pay it. The formula for calculating this ratio is as follows:

 

Current Ratio = Current Assets / Current Liabilities

 

 

 

 

 

Question No: 52  ( Marks: 1 )  – Please choose one

 

Which of the following usually is least important as a measure of short-term liquidity?

 

► Quick ratio

 

► Debt ratio

 

► Current ratio

 

Cash flows from operating activities

 

 

 

Question No: 53  ( Marks: 1 )  – Please choose one

 

In statement of cash flows, a payment of cash dividends is related to:

 

Investing activity

 

► Financing activity

 

► Operating activity

 

► Cash flows from operations

 

 

 

CASH FLOW FROM INVESTING ACTIVITIES (Handouts Page 265)

 

Cash flow from investing activities includes cash receipts and payments that arise from Fixed and Long Term assets of the organization.

 

• Cash payments and receipts from acquisition and disposal of other than long term assets e.g. Shares, debentures, TFC, long term loans given etc.

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES (Handouts Page 266)

 

Cash flow from financing activities includes cash receipts and payments that arise from Owners of the business and other long term liabilities of the organization.

 

• Cash receipts and payments for other long term loans and borrowings.

 

 

 

Question No: 54  ( Marks: 1 )  – Please choose one

 

In statement of cash flows, all of the following items are considered as financing activity, except:

 

► Cash received from issuance of shares

 

► Cash received from issuance of bonds

 

Payment made for short term debts

 

► Collections on loans

 

 

 

Question No: 55  ( Marks: 3 )

 

Show how the following items will appear in profit and loss account.

 

 

 

Particulars

Rs.

Bad debts

3,600

Provision for doubtful debts (old)

2,500

Provision for doubtful debts (new)

800

 

 

 

 

Question No: 56  ( Marks: 5 )

 

Pass the Journal Entries in proper format of JOURNAL for the following:

 

v            To create provision for doubtful debts

 

v            To reduce the provision

 

v            To increase the provision

 

Solution:

 

 

 

To create provision for doubtful debts

 

Debit:              Provision for Bad Debts (P&L)

 

Credit: Provision for Bad Debts

 

The debit account is charged against current years profit and the credit head is shown as a deduction from debtors in the balance sheet.

 

 

 

When the bad debt for which provision is already made is confirmed, following entry is passed:

 

Debit:              Provision for Bad Debts

 

Credit: Debtors

 

As expense has already been charged, therefore, no affect is given to P&L at this point.

 

 

 

To reduce the provision

 

Debit:              Provision for Bad Debts (Balance Sheet)

 

Credit: Provision for Bad Debts (P&L)

 

 

 

To increase the provision

 

Debit:              Provision for Bad Debts (P&L)

 

Credit: Provision for bad debts

 

 

 

Question No: 57  ( Marks: 5 )

 

Briefly discuss the followings:

 

1. Issuance of shares at premium

 

When a company has a good reputation and earns huge profits, the demand of its shares increases in the market. In that case, the company is allowed by the Companies Ordinance 1984, to issue shares at a higher price than their face value. Such an issue is called Shares Issued at Premium. The amount received; in excess of the face value of the shares is transferred to an account called “Share Premium Account”. This account is used to:

 

  • Write off Preliminary Expenses of the company.

 

  • Write off the balance amount, in issuing shares on discount.

 

  • Issue fully paid Bonus Shares.

 

 

 

2. Cash flow statement

 

Cash Flow Statement shows the movement of cash resources during the year. It gives information about sources of income and account heads on which this amount is spent. It is an integral part of financial statements.

 

 

 

3. Debentures

 

Debentures are issued under the common seal (Stamp) of the company, as acknowledgement of debt, owed by the company to the public at large for a defined period of time for obtaining loan from general public and has a mark up (profit) rate attached to it, generally equal to the market rate.

 

 

 

4. Notes to the accounts

 

Notes to the accounts are explanatory notes on financial statements of the company. These include all the information, from formation of company to the calculation of figures, arrived at, during the preparation of financial statements.

 

 

 

 

 

 

 

 

Question No: 58  ( Marks: 10 )

 

On 31st December, 2006, a merchant has to receive Rs. 50,000 from sundry debtors and creates provision of 5 percent on this amount for doubtful debts. Actual bad debts during the year 2007 were Rs.1, 400. The debtors on 31st December, 2007, are Rs. 40,000 on which he again creates provision of 5 % for doubtful debts. During 2008 actual bad debts are Rs. 600 and the debtors at the end of 2008 totalled Rs. 25,000, on which a reserve a reserve of 5 % for doubtful debts is required to be maintained.

 

 

 

Required: Prepare provision for doubtful debts account with the help of given data.

 

Question No: 59  ( Marks: 10 )

 

The following Trial Balance was extracted from the books of Naeem & Sons

 

on 31st December, 2007. From this you are required to prepare an Income Statement for the year ended 31st December, 2007.

 

Particulars Debit Credit
Rs. Rs.
Cash

5,000

Accounts Receivable

9,000

Merchandise Inventory on 1.1.2007

6,000

Plant and Machinery

24,000

Land and Building

82,000

Furniture and Fixtures

2,600

Capital

136,000

Accounts Payable

3800

Purchases

60,000

Purchases returns and allowances

2,800

Sales

70,000

Sales returns and allowances

4,600

Insurance

3,400

Advertisement expenses

4,000

Salaries expenses

12,000

Total

212,600

212,600

 

 

ADDITIONAL INFORMATION:

 

  1. Prepaid insurance on 31st December, 2007 is Rs. 1,400

 

  1. Outstanding salaries Rs. 1,000

 

  1. Depreciation on Plant and Machinery @ 10% p.a.

 

  1. Merchandise inventory on 31st December, 2007 was valued at Rs. 6,000

 

Paper No:17

 

Solved by Chanda Rehman, Nomi chakwal ABr

 

FINALTERM EXAMINATION

 

Fall 2009

 

MGT101- Financial Accounting (Session – 4)

 

Ref No: 1195706

 

Time: 120 min

 

Marks: 87

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

 

Word “Credit” is derived from ______ language.

 

 

 

►    Latin

 

►    English

 

►    French

 

►    Chinese

 

 

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

 

What is the nature of an expense account?

 

 

 

►    Debit

 

►    Credit

 

►    Revenue

 

►    None of the given options

 

 

Question No: 3  ( Marks: 1 )  – Please choose one

 

A

 

summarized record of transactions related to individuals or things is called a/an ___________.

 

 

 

 

 

 

►    Account

 

►    Voucher

 

►    Journal

 

►    Trial balance

 

 

 

Question No: 4  ( Marks: 1 )  – Please choose one

 

In an

 

account, if credit side < debit side then the balance is known as:

 

►    Negative Balance

 

►    Debit Balance

 

►    Positive Balance

 

►    Credit Balance

 

 

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

 

Which of the following organizations do NOT prepare Income & Expenditure account?

 

 

 

►    Public limited companies

 

►    Private limited companies

 

►    Partnership firms

 

►    All of the given options

 

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

 

Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle though cheque?

 

 

 

 

 

 

►    Vehicle account

 

►    Cash account

 

►    Business account

 

►    Bank account

 

 

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

If the cost of sales is Rs. 60,000, sales are Rs. 90,000 and operating expenses are Rs. 25,000 during the year. What would be the Net Profit?

 

 

 

 

 

 

 

 

 

 

 

►    Rs. 5,000

 

►    Rs. 25,000

 

►    Rs. 55,000

 

►    Rs. 60,000

 

 

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

 

 

 

Which of the following financial statement DO NOT show the financial health of a business

 

►    Profit and loss account

 

►    Balance sheet

 

►    Statement of financial position

 

►    All of the given options

 

 

 

at a specific date?

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

The

 

total of all costs incurred to convert raw material into finished goods is known as:

 

 

 

►    Prime cost

 

►    Conversion cost

 

►    Sunk cost

 

►    Opportunity cost

 

 

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

 

Which of the following particular is NOT included in the specimen of a Journal Voucher?

 

 

 

 

 

 

►    Name of organization

 

►    Bank receipt

 

►    Debit amount

 

►    Credit amount

 

 

 

 

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

 

Accountancy covers which of the following area(s):

 

 

 

►    Book-keeping

 

►    Accounting

 

►    Auditing

 

►    All of the given options

 

 

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

 

Depreciation arises because of:

 

 

 

►    Fall in the market value of an asset

 

►    Fall in the value of money

 

►    Physical wear and tear

 

►    All of the given options

 

 

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

 

Which of the following account will be debited, when the bad debts are recovered?

 

 

 

 

 

 

►    Bad debt recovered a/c

 

►    Cash a/c

 

►    Doubtful debts a/c

 

►    Bad debts a/c

 

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars

Rs.

Bad debts

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

800

 

 

►    Rs. 400

 

►    Rs. 800

 

►    Rs. 2,000

 

►    Rs. 2,400

 

 

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars

Rs.

Bad debts

3,600

Provision for doubtful debts (old)

6,000

Current year’s provision (new)

1,500

 

 

►    Rs. (5,100)

 

►    Rs. 5,100

 

►    Rs. (900) (Minus main answer hai tabi Credit side par show hoga)

 

►    Rs. 900

 

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

On

 

which of the following system control accounts are based?

 

 

 

►    Double entry book keeping system

 

►    Single entry book keeping system

 

►    Cash accounting system

 

►    All of the given options

 

 

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

 

Which of the following entry will be passed to record discount received in control account?

 

 

 

►    Discount Received (Dr) and Creditors Control A/c (Cr)

 

►    Discount Received (Dr) and Creditors A/c (Cr)

 

►    Creditors Control A/c (Dr) and Discount Received (Cr)

 

►    Creditors A/c (Dr) and Discount Received (Cr)

 

 

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

A

 

receipt of cash Rs. 10,000 from Mr. Bilal is recorded as Rs. 1,000. What amount will be adjusted in rectifying entry?

 

 

 

►    Rs. 1,000

 

►    Rs. 9,000

 

►    Rs. 10,000

 

►    Rs. 11,000

 

 

 

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

 

Which of the following rectifying entry will be recorded, if sales to Mr. “A” of Rs.336 have been debited to Mr. “B” account?

 

 

 

►    As account (Dr.) and Bs account (Cr.)

 

►    B’s account (Dr.) and A’s account (Cr.)

 

►    Sales account (Dr.) and B’s account (cr.)

 

►    B’s account (Dr.) and Sales account (Cr.)

 

 

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

 

Which of the following account(s) will be affected, while rectifying the error of Sale to Mr.”A” Rs. 336 was not recorded at all?

 

►    Only sales account

 

►    Only A’s account

 

►    Only cash account

 

►    Both sales account and As account

 

 

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

 

Which of the following item must be recorded in the adjusted Cash Book in order to bring it in line with the entries in the Bank Statement?

 

 

 

►    Bank charges

 

►    An error on the Bank Statement

 

►    An uncredited deposit

 

 

► An unpresented cheque

 

 

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

 

Consider the following data and identify the amount which will be deducted from Sundry Debtors in Balance Sheet.

 

Particulars

Rs.

Bad debts (from trial balance)

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

1,000

 

 

►    Rs. 600

 

►    Rs. 1,000

 

►    Rs. 2,000

 

►    Rs. 2,600

 

 

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

 

Following information are extracted from books of Mr. XYZ

 

 

 

Particulars

Rs.

Bad Debts (Given in trial balance)

500

Old provisions (Given in trial balance)

700

Sundry Debtors (Given in trial balance)

44,800

 

 

If the Provision for doubtful debts has been increased by 5%, which amount of new provision will be shown in Profit & Loss Account?

 

►    Rs. 2,240

 

►    Rs. 2,425

 

►    Rs. 1,925

 

►    Rs. 3,025

 

 

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

The

 

main objective of financial reporting is to provide:

 

 

 

►    Essential information to internal users of financial reports.

 

►    Useful economic information about the business to the external parties for sound financial decisions.

 

►    Information to internal users about the cash position of the business.

 

►    Information to the Securities Exchange Commission (SEC).

 

 

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

A

 

financial statement that indicates the success or failure of a business, over a period of time is called:

 

 

 

►    A cash flow statement

 

►    A retained earnings statement

 

►    An income statement

 

►    A balance sheet

 

 

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

 

Which of the following is/are NOT shown in balance sheet of sole proprietor?

 

►    Fixed assets

 

►    Current liabilities

 

►    Profit sharing ratio

 

►    Long term assets

 

 

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

 

Which of the following statement is TRUE about the Accounts receivable?

 

►    Accounts receivable arises when a company buys goods or services from another party on credit

 

►    Accounts receivable is a miscellaneous category that may include loans to employees

 

►    Accounts receivable are more formal than notes receivable

 

►    Accounts receivable are often called trade receivables

 

 

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

 

Which of the following account will be debited when the interest on drawings is charged?

 

 

 

►    Partner’s capital account

 

►    Interest account

 

►    Partner’s current account

 

►    Profit & Loss account

 

 

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

In

 

case of fixed capital accounts, other transactions such as Drawings and Profit etc. are recorded in a separate account that is called ___________.

 

►    Fixed Capital Account

 

►    Current Account

 

►    Fluctuating Capital Account

 

►    Floating Capital Account

 

 

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

 

Which of the following clause/s are discussed in Memorandum of Association of Companies?

 

 

 

►    Name of company

 

►    Place of registered office of company

 

►    Objective of the company

 

►    All of the given options

 

 

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

 

Preliminary Expenses of the company may write off against:

 

►    Share premium account

 

►    Share holder account

 

►    Debtors control account

 

►    Creditor control account

 

 

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

 

What are the effects on financial statements, if provision for Income Tax to be made Rs. 12,000 is given in adjustment?

 

►    It will be deducted in Income Statement only

 

►    It will be treated as current liability in balance sheet only

 

►    It will be treated as current asset in balance sheet only

 

►    Both it will be deducted in income statement and it will be treated as current liability in balance

 

sheet

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT a cash inflow?

 

 

 

►    Sale of fixed asset

 

►    Issue of debentures

 

►    Cash from business operation

 

►    Purchase of fixed asset

 

 

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

 

Which of the following statement in NOT TRUE about the limited company form of business?

 

 

 

►    The limited company form of business allows ownership of the business to be spread amongst many people

 

►    Shareholders can appoint professionals

 

►    Shareholders are personally liable for all the liabilities incurred by the business

 

►    Regular filing of information about the affairs of the company is a legal requirement

 

 

 

 

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

If company has distributable profit is Rs. 4, 90,000. Profit sharing share ratio of Mr. A, Mr. B and Mr. C is 2:3:5 respectively what will be the Profit share for Mr. C in distributable profit.

 

 

 

►    Rs. 98,000

 

►    Rs. 1, 47,000

 

►    Rs. 2, 45,000

 

►    Rs. 3, 43,000

 

 

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

 

What is the treatment of Accumulated Depreciation in Balance Sheet?

 

 

 

►    It may treated as a deficit not sure

 

►    It may treated as a surplus

 

►    It may treated as a revenue

 

►    None of the given options I think this one

 

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

 

According to the double entry system of book keeping, the investment of Rs.10, 000 in the business made by the owner will effect:

 

 

 

 

 

 

►    Cash Account & Capital Account

 

►    Cash Account & Expense Account

 

►    Capital Account & Revenue Account

 

 

► Capital Account & Expense Account

 

 

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

The

 

return of goods by a customer should be debited to:

 

 

 

►    Customer’s account

 

►    Sales return account

 

►    Goods account

 

►    Accounts receivable account

 

 

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

 

Expenditures incurred annually on renewal of patent are known as:

 

 

 

 

 

 

 

 

 

►    Revenue Expenditures

 

►    Capital Expenditures

 

►    Deferred Expenditures

 

►    None of the given options

 

 

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

 

Debts that are not collectible and worthless to the creditor are known as:

 

 

 

► Doubtful debts

 

►    Bad debts

 

►    Provision for doubtful debts

 

►    Loss

 

 

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

ABC Company received discount on its credit purchases, which of the following will be debited while entering in journal?

 

►    Cash

 

►    Discount received

 

►    Creditors

 

►    Bank

 

 

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

The amount owed by debtors at the start of a month appears on the ___________ side of the individual debtors account.

 

►    Left side or credit

 

►    Left side or debit

 

►    Right side or debit

 

►    Right side or credit

 

 

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

 

Ahmad Industries want to make payment to its supplier in the form of a pay order. The bank deducted Rs.160 as service charges without its knowledge. The error is known as:

 

►    Error of commission

 

►    Error of omission

 

 

►    Error of original entry

 

►    Error of principle

 

 

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

 

Which of the following accounts would never be reported in the income statement as an expense?

 

►    Depreciation expense

 

►    Income tax expense

 

►    Interest expense

 

►    Dividends expense

 

 

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

In

 

the heading of financial statement, ___________ is not required?

 

►    Title of financial statement

 

►    Name of the person who prepares financial statement

 

►    Period for which financial statement is prepared

 

►    Name of business entity

 

 

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

In a partnership of Mr. A and Mr. B, the share of profit of Mr. A is Rs.75,375 and the share of profit of Mr. B is Rs. 25,125. What will be the ratio of their share?

 

►    1:2

 

►    2:3

 

►    3:2

 

►    3:1

 

 

 

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

 

Which of the following is decreased when an asset is converted into expense in adjustment?

 

►    Revenue

 

►    Net income

 

►    Expense

 

►    Liability

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,500 and markup on drawings of Mr. B is Rs.2,800. The net income for the year is Rs.95,000. What will be the amount of distributable profit?

 

►    Rs.89,700

 

►    Rs.94,700

 

►    Rs.95,300

 

►    Rs.100,300

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

How

 

many members can subscribe their names in memorandum of association for registration of public limited company?

 

►    2

 

►    3

 

►    5

 

►    7

 

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

 

Which of the following is responsible to register the companies?

 

►    State Bank of Pakistan

 

►    Security and Exchange Commission of Pakistan

 

►    Supreme Court

 

►    Stock Exchange

 

 

 

Question No: 51  ( Marks: 1 )  – Please choose one

 

The

 

amount of share premium can be utilized except:

 

►    To write off preliminary expenses

 

►    To meet the expenses of issue of shares

 

►    To distribute among the share holders

 

►    To issue bonus shares

 

 

 

Question No: 52  ( Marks: 1 )  – Please choose one

 

 

Which of the following capital is required for the registration of the company?

 

►    Issued capital

 

►    Subscribed capital

 

►    Authorized capital

 

►    Reserve capital

 

 

 

Question No: 53  ( Marks: 1 )  – Please choose one

 

 

 

 

Which of the following items of balance sheet are useful in evaluating a company’s liquidity?

 

►    Current assets and other assets

 

►    Current liabilities and current assets

 

►    Current liabilities and plant and equipment

 

►    Non current liabilities and other assets

 

 

 

Question No: 54  ( Marks: 1 )  – Please choose one

 

The company ABC purchased an asset for Rs. 40,000, paying 30,000 in cash and issuing a long term note payable for remaining balance. The amount will be recorded in statement of cash flows as:

 

►    Rs. 40,000 cash outflow as investing activity

 

►    Rs. 30,000 cash outflow as investing activity

 

►    Rs. 10,000 cash inflow as investing activity

 

►    Rs. 70,000 cash inflow as investing activity

 

 

 

Question No: 55  ( Marks: 3 )

 

Why

 

an organization is needed to prepare a cash flow statement.

 

 

 

 

 

 

Question No: 56  ( Marks: 5 )

 

 

Show the following assets at Written Down Value in Balance Sheet with complete working.

 

Particulars

Rs.

Plant & Machinery

53,000

Buildings

35,000

Tools & Equipment

8,650

 

Depreciation Rate:

 

v      Plant & Machinery @ 10%

 

v      Buildings @ 5%

 

v      Tools& Equipment @ 15%

 

 

 

 

 

 

 

Question No: 57  ( Marks: 5 )

 

 

Financial year decided by partnership agreement is 1st July to 30th June. Mr. Ali is partner and having a capital of Rs. 1,500,000 on July 1st 2007 and he introduced more capital on August 1st 2007 Rs. 10,000 on April 1st 2008, Rs.500,000 and on June 1st 2008 , Rs. 5,000. Mark up rate is 10% p.a.

 

Calculate mark up on Mr. Ali’s capital for the year ending on 30th June 2008.

 

 

 

Question No: 58  ( Marks: 10 )

 

The

 

following errors have been discovered in the book of a Business Concern:

 

  1. Wage of Rs. 500 paid for the installation of plant debited to Wages Account.
  2. Purchases of Office Equipment Rs. 2,000 were recorded as regular purchases of business.
  3. Credit sale of Rs. 600 to Kareem was wrongly debited to Kamran.
  4. Rs. 200 drawn by the proprietor was treated as Trade Expenses.
  5. Rs. 300 received as a Commission was wrongly credited to Sales Account.

 

 

Required:

 

Pass the rectifying entries only.

 

 

 

Question No: 59  ( Marks: 10 )

 

 

Prepare Balance Sheet for the manufacturing concern as on 31st December, 2007 with the help of given data.

 

Particulars

Rs.

Capital

120,000

Trade Creditors

17,500

Bills payable

1,000

Sales

626,100

Raw material Stocks on 1-1-2007

30,000

Work in process on 1-1-2007

35,600

Finished Goods on 1-1-2007

35,400

Purchases

518,000

Carriage inwards

8,900

Discount Allowed

750

Debtors

16,000

Sales man commission

2,000

Office expenses

2,000

Carriage outwards

1,700

Bad debts

1,400

Salaries

13,000

Direct labor

1,800

FOH

1,100

Plant & Machinery

53,000

Buildings

35,000

Tools

8,650

Long term liability

4,902

Drawings

5,000

 

Stock as on 31st December, 2007

 

  • Raw material Stocks Rs. 31,000

 

  • Work in process Rs. 25,000

 

  • Finished Goods Rs. 53,900

 

Depreciation Rate:

 

v      Plant & Machinery is depreciated @ 10%

 

v      Buildings is depreciated @ 5%

 

v      Tools is depreciated @ 15%

 

Additional data

 

v      Reserve and bad debts is to be created at 5% on debtors.

 

v      Net Income for the year Rs. 75,000

 

Paper no 18

 

Solved by Chanda Rehman & ABr

 

FINALTERM EXAMINATION,

 

Fall 2008

 

MGT101- Financial Accounting (Session – 1)

 

Time: 120 min

 

Marks: 85

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

 

Which of the following item will be credited in capital account of sole proprietor?

 

 

 

 

 

 

►  Cash

 

►  Drawings

 

►  Debtors

 

►  Profit

 

 

 

 

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

 

Debenture is also named as:

 

►  Share

 

►  Bond

 

►  Equity

 

►  Reserve

 

 

 

Question No: 3  ( Marks: 1 )  – Please choose one

 

A firm may earn profit during an accounting period but have less money in the bank at the end of the period then it had at the beginning. Which of the followings, on its own, could explain this?

 

 

 

►  Not paying invoices received from creditors

 

►  The sale of fixed assets during the period

 

►  An increase in trade debtors over the course of the period

 

►  An increase in the depreciation charge relative to the previous accounting period doubted

 

 

 

Question No: 4  ( Marks: 1 )  – Please choose one

 

In

 

cash flow statements, which of the following would appear as a cash outflow?

 

►  The payments for purchases made during the year

 

►  A decrease in trade debtors over the course of an accounting period

 

►  Money received as a result of issuing new shares

 

►  Money received as result of selling fixed assets

 

 

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

In

 

cash flow statements, which of the following would appear as an inflow of cash?

 

►  The repayments of a bank loan

 

►  Dividend issue in the current year

 

►  Money received as result of selling fixed assets

 

►  The difference between the valuations of old and new fixed assets

 

 

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

A

 

company is said to have been registered when:

 

 

 

►  It filed with the Registrar of Companies articles certain documents, like memorandum and articles of association

 

►  It gets certificate of incorporation from registrar of Companies doubted

 

►  It gets certificate of commencement of business from registrar of Companies

 

►  It actually starts its business

 

 

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

 

Which of the following option(s) is TRUE about the Sales returns?

 

 

 

 

 

 

 

 

 

 

 

►  Sales returns reduce the Gross sales of the firm

 

►  Sales returns affect the Net income of the firm

 

►  Sales returns affect the flow of cash

 

►  All of the given options

 

 

 

 

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

 

Share premium account is used for what?

 

►  Write off Preliminary Expenses of the company.

 

►  Write off the balance amount, in issuing shares on discount.

 

►  Issue fully paid Bonus Shares.

 

►  All of the given options

 

 

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

The

 

maximum amount with which the company is registered is called:

 

►  Authorized Share Capital

 

►  Issued Share Capital

 

►  Paid up capital

 

►  Called up capital

 

 

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

The

 

Joint Stock Company is formed under the Companies Ordinance:

 

►  1984

 

►  I884

 

►  1948

 

►  1965

 

 

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

In

 

case of fixed capital accounts, other transactions such as Drawings and Profit etc. are recorded in a separate account that is called ___________.

 

►  Fixed Capital Account

 

►  Current Account

 

►  Fluctuating Capital Account

 

►  Floating Capital Account

 

 

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

 

Which of the following represents the relationship between persons who have agreed to share the profit of business carried on by all or any of them acting for all?

 

►  Sole-ownership

 

►  Private limited company

 

►  Public limited company

 

►  Partnership

 

 

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

 

Current accounts of the partners should be opened when the capitals are:

 

►  Normal

 

►  Floating

 

►  Fixed

 

►  Fluctuating

 

 

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

 

Fixed Assets (WDV) + Working Capital =?

 

 

 

►  Total assets employed

 

►  Total liabilities

 

 

►  Total assets

 

►  Current assets

 

 

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

 

Which of the following journal entry will be recorded, if cash is drawn by a Proprietor?

 

 

 

►  Proprietor’s drawings a/c (Dr.) and Cash a/c (Cr.)

 

►  Cash a/c (Dr.) and Proprietor’s drawings a/c (Cr.)

 

►  Proprietor’s Capital (Dr.) and Proprietor’s drawings a/c (Cr.)

 

►  Proprietor’s drawings (Dr.) and Proprietor’s Capital a/c (Cr.)

 

 

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

 

Which of the following will be debited, if cash is drawn by Proprietor?

 

 

 

►  Proprietor’s drawings

 

►  Proprietor’s cash

 

►  Proprietor’s capital

 

►  Proprietor’s income

 

 

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

An

 

asset is considered to be a current asset if:

 

 

 

►  It has been bought recently and was bought new and not used

 

►  It can be realized in cash or sold or consumed in the business within one year

 

►  It is a piece of new machinery that is expected to last for at least ten years

 

 

► All of the given options

 

 

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

 

Which financial statement show what a business owes at a particular point in time?

 

 

 

►  A cash flow statement

 

►  The bank statement for the business

 

►  A balance sheet

 

►  A statement of retained earnings

 

 

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

The

 

Balance Sheet item that represents the resources invested by the owner is known as:

 

►  Accounts Receivable

 

►  Cash

 

►  Note Payable

 

►  Owner’s Equity

 

 

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT an operating expense?

 

 

 

►  Salaries and wages expense

 

►  Rent expense

 

►  Interest expense

 

►  Depreciation expense

 

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

 

Which of the following accounts would be increased with a debit?

 

 

 

►  Contributed Capital

 

►  Retained Earnings

 

►  Revenues

 

►  Expenses

 

 

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

 

Which of the following subsidiary book(s) is (are) maintained for creditors control account?

 

►  Purchase Day Book

 

►  Purchase Return

 

►  Creditors Ledger

 

►  All of the given options

 

 

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 10% of the sundry debtors are doubtful. Actual bad debts are Rs. 1600. What amount of new provision for doubtful debts will be credited in profit & loss account

 

►  Rs. 3,600

 

►  Rs. 4,000

 

►  Rs. 1,600

 

►  Rs. 2, 400

 

 

 

 

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars

Rs.

Bad debts

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

1,000

 

 

 

 

►  Rs. 600

 

►  Rs. 1,600

 

►  Rs. 2,000

 

►  Rs. 2,600

 

 

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

Sale of goods to Mr. Amir is wrongly debited to Umair A/c(debtor) instead of Amir A/c(debtor), this is an example of:

 

 

 

►  Error of principle

 

►  Error of omission

 

►  Error of commission

 

►  Error of original entry

 

 

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

 

“Goods sold to Mr. Salman for Rs. 6,000 have been forgotten to enter in books of accounts”, is an example of:

 

►  Error of principle

 

►  Error of omission

 

►  Error of commission

 

►  Error of original entry

 

 

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

 

Transaction that has been completely forgotten to enter is called:

 

 

 

►  Error of principle

 

►  Error of omission

 

►  Error of commission

 

►  Error of original entry

 

 

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

 

Which of the following account(s) will be affected, while rectifying the error of sales to Rahim Rs. 336 posted to his account as Rs. 363?

 

 

 

 

 

►  Sales account

 

►  Rahim’s account

 

►  Cash account

 

►  Both sales and Rahim’s Account

 

 

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

 

 

 

Which of the following is a detailed record of an individual account in case of large business?

 

►  Control Account

 

►  Subsidiary Ledger

 

►  Balance Sheet

 

►  Trial Balance

 

 

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT included in Debtors Control Account?

 

 

 

►  Cash sales

 

►  Credit sales

 

►  Bills receivable

 

►  Discount allowed

 

 

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

 

Following information are extracted from books of Mr. XYZ

 

 

 

Particulars

Rs.

Closing value of stock

40,000

Write off Bad debts (given in adjustments)

2,400

Sundry Debtors (given in trial balance)

33,200

Provision is created on Debtors at 5%

Requirement: Identify the Total amount which will deduct from Sundry debtors.

 

►  Rs. 460

 

►  Rs. 2,400

 

►  Rs. 1,540

 

 

► Rs. 3,940

 

 

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

Bad

 

debts written off (given in adjustment) always affect the:

 

 

 

►  Debtors account

 

►  Creditors account

 

►  Cash account

 

►  Capital account

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

debts

 

that are not collectible and worthless to the creditor are known as:

 

 

 

►  Bad debts

 

►  Good debts

 

►  Doubtful debts

 

►  Provision for doubtful debts

 

 

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT a function of bank reconciliation statement?

 

►  To reconcile the difference between the cash book and the bank statement

 

►  To check for errors in balance sheet

 

►  To update omitted entries into the cash book

 

►  To update omitted entries into the bank statement

 

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

The

 

following balance and discrepancies were found on 31 March 2008:

 

 

 

Particulars

Rs.

Cash book balance (Dr)

5 000

Unpresented cheques

1 000

Uncredited cheques

500

 

 

The Bank Statement balance on 31 March 2008 should be:

 

►  Rs. 5 500 (Dr)

 

►  Rs. 5 500 (Cr)

 

►  Rs. 4 500 (Dr)

 

►  Rs. 4 500 (Cr)

 

 

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

In

 

accounting accumulated depreciation is:

 

 

 

►  Treated as a reserve

 

►  Treated as a contra asset

 

►  Treated as a surplus

 

►  Treated as an expense

 

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

Find

 

out the missing value of an Accounting Equation with the help of given data:

 

Cash at bank Rs. 22,500
Other assets Rs. 1,000
Creditors Rs. 8,385
Other liabilities Rs. 9,000

 

 

► Rs. 6,115 owner’s equity

 

► Rs. 31,885 owner’s equity ► Rs. 17,385 owner’s equity ► Rs. 18,385 owner’s equity

 

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

Find

 

out the missing value of an Accounting Equation with the help of given data:

 

 

 

Total Assets Rs. 34,500
Accounts payable Rs. 1, 000
Other liabilities Rs. 11,500

 

 

► Rs. 22,000 owner’s equity

 

► Rs. 23, 000 owner’s equity ► Rs. 24,000 owner’s equity ► Rs. 46,000 owner’s equity

 

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

 

 

 

Which of the following particular is NOT included in the specimen of a Journal Voucher?

 

 

 

 

 

►  Name of organization

 

►  Bank receipt

 

►  Debit amount

 

►  Credit amount

 

 

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

Cost of asset

Rs. 1,00,000

Life of asset

5 years

Depreciation for each year

Rs. 15,000

Sale price after 5 years

Rs.50,000

Book value of Asset after 5 years

?

 

 

►  Rs.25, 000

 

►  Rs. 75,000

 

►  Rs. 15,000

 

►  Rs. 1, 00,000

 

 

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

 

Which of the following account will be debited, when the labor cost is charged to production?

 

 

 

►  Finished goods account

 

►  Labor cost account

 

►  Work in process account doubted

 

►  COGFactor over head account

 

 

 

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

 

Which of the following organization converts raw material into finished goods?

 

 

 

►  Trading concern

 

►  Manufacturing concern

 

►  Merchandising concern

 

►  Service concern

 

 

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

 

Which of the following particular is NOT included in the specimen of a payment voucher?

 

 

 

 

 

 

►  Name of organization

 

►  Cash payment amount

 

►  Date of transaction

 

►  Bank receipt

 

 

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

 

Which of the following particulars are included in the specimen of a bank receipt voucher?

 

1)      Name of the organization

 

2)      Bank code

3)      Date of transaction

 

 

►  (1) & (2) only

 

►  (1) & (3) only

 

►  (2) & (3) only

 

►  (1), (2) & (3)

 

 

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

If the cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs. 20,000 during the year, what would be the value of Gross Profit?

 

 

 

 

 

►  Rs. 15,000

 

►  Rs. 35,000

 

►  Rs. 55,000

 

►  Rs. 60,000

 

 

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

 

Which of the following statement is NOT TRUE about Current liabilities?

 

 

 

►  These are due within one year

 

►  These are short-term loans

 

►  These are consist of all debts, payable after 12 months

 

►  In working capital, these are deducted from current assets

 

 

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

 

Accrued expenses are the example of:

 

►  Current liabilities

 

►  Long term liabilities

 

 

►  Deferred costs

 

►  Capital expenses

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

 

Which of the following item will appear on the Balance Sheet as current assets?

 

 

 

►  Prepaid expenses

 

►  Accrued expenses

 

►  Furniture and Equipment

 

►  Unearned revenue

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

 

When a Liability is reduced or decreased, it is recorded on the:

 

 

 

►  Right or debit side of the account

 

►  Left or debit side of the account

 

►  Left or credit side of the account

 

►  Right or credit side of the account

 

 

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

 

Which of the following is non- profit organization?

 

►  Sole proprietorship

 

►  Partnership

 

►  Limited company

 

►    Trust

 

 

 

 

Question No: 51  ( Marks: 5 )

 

The

 

following errors have been discovered in the book of a Business Concern:

 

 

 

  1. A credit purchase of Rs. 10,000 from Rizwan was wrongly passed through the sales book.

 

  1. 2.      The casting of the sales book Rs. 1, 15,594 was carried to the sales account as Rs. 1, 51,954.

 

 

Required:

 

Pass the rectifying entries only.

1.Debit Creditor’s account
Credit Sales book account
2.Debit Cash account Rs 36360
Credit

Sales account

Rs (36360)

 

 

 

Question No: 52  ( Marks: 10 )

 

 

Following information is extracted from the books of Arfan Ltd as on December 31st, 2007.

 

Particulars

Cost

Depreciation

Accumulated Depreciation

rate

On 01-01-2007

Vehicles 01-01-2007

1,90,000

10%

10,000

Building 01-01-2007

4,00,000

20%

12,500

Furniture & Fixture 01-01-2007

4,15,000

15%

34,500

Land 01-01-2007

1,58,000

You are required to calculate Written down value of each asset and show working of complete depreciation for the year ending on December 2007.

 

 

 

Question No: 53  ( Marks: 10 )

 

 

Write a note on legal documents required for the formation of company.

 

 

 

 

 

 

Question No: 54  ( Marks: 10 )

 

The

 

following discrepancies were noted on comparing Cash Book with Pass Book.

 

 

 

  1. Balance as per Cash Book (Cr) is Rs. 19,000.

 

  1. Cheque for Rs. 5,000 paid into the bank for collection on 20th March, 2008 has not yet been collected.

 

  1. Cheques for Rs. 15,000 Issued on 24th March, 2008, out of which Cheques for Rs. 10,000 presented during March, 2008

 

  1. An amount of Rs. 1,000 for interest on overdraft was debited in the Pass Book but was intimated to Mr. David on 4th April, 2008.

 

  1. Mr. David paid into his bank account an amount of Rs. 3,000 but it was wrongly credited to Mr. Denial’s Account.

 

  1. On 20th March, 2008 the bank received dividend of Rs. 10,000 from a company where Mr. David’s has invested his money, the same had been recorded in Cash Book on 31st March, 2008.
  2. Cheque of Rs. 2,500 was shown in Pass Book as dishonored.

 

 

Required: Prepare a Bank Reconciliation Statement as on 31st March, 2008

 

Paper No:19

 

Solved By Chanda Rehman n ABr

 

FINALTERM EXAMINATION

 

Fall 2008

 

MGT101- Financial Accounting (Session – 3)

 

Time: 120 min

 

Marks: 85

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

 

Debenture is also named as:

 

►  Share

 

►  Bond

 

►  Equity

 

►  Reserve

 

 

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

 

What types of changes (is) are made at the admission of partner in partnership?

 

►  Assets of old business will be revalued

 

►  Liabilities of old business will be revalued

 

►  Good will of business will be revalued

 

►  All of the given options

 

 

 

Question No: 3  ( Marks: 1 )  – Please choose one

 

The balance sheet reported a beginning balance of Rs. 20,000 in Accounts Receivable and an ending balance of Rs. 15,000. Credit Sales of Rs. 200,000 were made during the year. Using this information, compute cash collected from customers.

 

 

 

►  Rs. 215,000

 

►  Rs. 195,000

 

►  Rs. 200,000

 

►  Rs. 205,000

 

Beginning – ending + credit sales

 

20,000 – 15,000 + 200,000

 

 

 

 

Question No: 4  ( Marks: 1 )  – Please choose one

 

In

 

cash flow statements, which of the following would appear as an inflow of cash?

 

►  The repayments of a bank loan

 

►  Dividend issue in the current year

 

►  Money received as result of selling fixed assets

 

►  The difference between the valuations of old and new fixed assets

 

 

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT a cash inflow?

 

 

 

►  Purchase of fixed asset

 

►  Sale of fixed asset

 

►  Issue of debentures

 

►  Cash from business operation

 

 

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

 

What are the effects on financial statements, if Rs. 6,000 transfer to general reserve is given in adjustment?

 

 

 

►  It will be treated in Income Statement only

 

►  It will be treated as current liability in balance sheet only

 

►  It will be treated in profit and loss appropriation account only

 

►    it will be treated in both profit and loss appropriation account and in the balance sheet

 

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

 

Which of the following is the most important document of the company?

 

 

 

►  Memorandum of Association

 

►  Articles of Association

 

►  Prospectus

 

►  Annual Report

 

 

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

 

Which of the following document(s) define the relation of company with outside world?

 

 

 

►  Memorandum of Association

 

►  Articles of Association

 

►  Prospectus

 

►  Statutory Declaration doubted

 

 

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

The

 

income statement of the Limited company is also known as:

 

 

 

►  Manufacturing account

 

►  Profit and Loss account

 

►  Profit and Loss Appropriation account

 

►  Current Account

 

 

 

 

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

In

 

which of the following auditor’s remuneration payable is shown?

 

 

 

►  In balance sheet under the head of current liabilities only

 

►  In balance sheet under the head of current assets only

 

►  In income statement under the administrative expense only

 

►  In both balance sheet under the head of current liabilities and income statement under the administrative expense

 

 

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

The

 

charter of a company which defines the limitations and powers of the company is called:

 

►  The memorandum of association

 

►  Articles of association

 

►  Statutory report

 

►  Certificate of commencement

 

 

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

 

Which of the following represents the partnership agreement in writing?

 

►  Partnership registration

 

►  Partnership-at-will

 

►  Partnership deed

 

►  Partnership certification

 

 

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

 

Which of the following represents the relationship between persons who have agreed to share the profit of business carried on by all or any of them acting for all?

 

►  Sole-ownership

 

►  Private limited company

 

►  Public limited company

 

►  Partnership

 

 

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

 

Which of the following statement is TRUE about the Accounts receivable?

 

►  Accounts receivable arises when a company buys goods or services from another party on credit

 

►  Accounts receivable is a miscellaneous category that may include loans to employees

 

►  Accounts receivable are more formal than notes receivable

 

►  Accounts receivable are often called trade receivables

 

 

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

 

Which one of the following is TRUE about provisions?

 

 

 

►  It is necessary to prepare for showing true picture of balance sheet

 

►  It is a reduction from assets

 

►  It is prepared for specific purposes

 

►  All of the given options

 

 

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

 

Which financial statement show what a business owes at a particular point in time?

 

 

 

►  A cash flow statement

 

►  The bank statement for the business

 

►  A balance sheet

 

►  A statement of retained earnings

 

 

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

 

Which of the following is an example of operating expense?

 

 

 

►  Purchasing operating equipment

 

►  Purchasing cleaning services doubted

 

►  Purchasing an investment in another company

 

►  Purchasing a computer for the accounting office

 

 

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

 

Short-term investments include all of the following EXCEPT:

 

 

 

►  A bond receivable intended to be sold within one year

 

►  Frequently traded securities

 

►  A stock investment in the General Electric Company intended to be sold within one year

 

►  A shares investment in the Coca-Cola Company intended to be held for several years

 

 

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

The

 

figure of cash received from debtors can be located either from cash book or:

 

 

 

►  Debtor’s Control Account

 

►  Balance Sheet

 

►  Profit & Loss Account

 

 

► Bills Payable Account

 

 

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

 

Following information are extracted from books of Mr. XYZ

 

 

 

Particulars

Rs.

Closing value of stock

40,000

Write off Bad debts (given in adjustments)

2,400

Sundry Debtors (given in trial balance)

33,200

Provision is created on Debtors at 10%

 

Identify the Total amount deducted from Sundry debtors.

 

► Rs. 460

 

► Rs. 2,400

 

► Rs. 3,080

 

► Rs. 5,480

 

 

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

Consi der the following data and identify the amount which will be deducted from Sundry Debtors in Balance Sheet.

 

 

Particulars

Rs.

Bad debts (from trial balance)

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

1,000

 

 

 

► Rs. 600

 

►  Rs. 1,000

 

►  Rs. 2,000

 

►  Rs. 2,600

 

 

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

 

Which of the following entry will be recorded, if a cheque deposited is dishonored by bank?

 

 

 

 

 

 

►    Bank Account (Dr.) and Debtor’s Account (Cr.)

 

►  Debtor’s Account (Dr.) and Bank Account (Cr.)

 

►  Dishonored Cheque Account (Dr.) and Bank Account (Cr.)

 

►  Creditor’s Account (Dr.) and Bank Account (Cr.)

 

 

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

 

Which of the following account(s) will be affected, while rectifying the error of an amount Rs.200 received from Mr.”P” wrongly credited to Mr.”Q’s” account?

 

►  Both of Mr. P’s & Mr.Q’s Account

 

►  Only Cash Account

 

►  Only P’s account

 

►  Only Q’s account

 

 

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

 

Which of the following account(s) will be affected, while rectifying the error of sales Rs.100 to Mr. “A” recorded in the purchases book?

 

 

 

►  Sales account

 

►  Purchase account

 

►  A’s account and Sales account

 

►  Sales account, purchase account and A’s account

 

 

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

 

“Goods sold to Mr. Salman for Rs. 6,000 have been forgotten to enter in books of accounts”, is an example of:

 

 

 

►  Error of principle

 

►  Error of omission

 

►  Error of commission

 

►  Error of original entry

 

 

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

 

Transaction that has been completely forgotten to enter is called:

 

 

 

►  Error of principle

 

►  Error of omission

 

►  Error of commission

 

►  Error of original entry

 

 

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

 

Which of the following is (are) included in Creditors Control Account?

 

 

 

►  Discount received from supplier

 

►  Credit purchases

 

►  Bills payable

 

►  All of the given options

 

 

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT included in Debtors Control Account?

 

 

 

►  Cash sales

 

►  Credit sales

 

►  Bills receivable

 

►  Discount allowed

 

 

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

 

Which of the following subsidiary book(s) is (are) maintained for debtors control account?

 

 

 

►  Sales Day Book

 

►  Sales Return

 

►  Debtors Ledger

 

►  All of the given options

 

 

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT based on the concept of double entry book keeping system?

 

►  Subsidiary Ledgers

 

►  Creditors Control Accounts

 

►  Debtors Control Accounts

 

►  All of the given options doubted

 

 

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

 

Which of the following entry will be recorded when the Bad Debts are recovered?

 

 

 

 

 

 

►  Cash account (Dr.) & Bad Debts recovered account (Cr.)

 

►  Accounts Receivable account (Dr.) & Bad Debts recovered account (Cr.)

 

►  Bad debts recovered account (Dr.) and Profit & Loss account (Cr.)

 

►  Provision for doubtful debts account (Dr.) & Cash account (Cr.)

 

 

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

In

 

which of the following condition(s) DEBT is regarded as BAD.

 

 

 

►  Bankruptcy of the debtor

 

►  Disappearance of debtor’s business

 

►  Failure of repeated attempt to collect the debt

 

►  All of the given options

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

 

Which of the following is CORRECT for Doubtful Debt?

 

►  It is shown in balance sheet

 

►  It is a definite loss to the business

 

►  It is not shown in balance sheet

 

►  No provision is necessary for it

 

 

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

The

 

following balance and discrepancies were found on 31 March 2008:

 

 

 

Particulars

Rs.

Cash book balance (Dr)

5 000

Unpresented cheques

1 000

Uncredited cheques

500

 

 

The Bank Statement balance on 31 March 2008 should be:

 

►  Rs. 5 500 (Dr)

 

►  Rs. 5 500 (Cr)

 

►  Rs. 4 500 (Dr)

 

►  Rs. 4 500 (Cr)

 

 

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

A

 

Bank Reconciliation Statement is prepared to:

 

 

 

►  Ascertain that the difference between the Cash Book balance and the Bank Statement balance has been accounted for

►  Correct errors in the Cash Book or errors in the Bank Statement

 

 

►  Amend the balance of the Bank Statement of the firm

 

►  Amend the balance in the Cash Book of the firm

 

 

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

 

Which of the following is CORRECT regarding depreciation?

 

 

 

 

 

 

 

 

 

 

 

►  It is a systematic allocation of depreciable amount of an asset over its estimated useful life

 

►  It refers to the end life of an asset

 

►  It refers to the increase in value of asset

 

►  It is another name of Impairment

 

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

Find

 

out the missing value of an Accounting Equation with the help of given data:

 

 

 

Cash Rs.1, 00, 000
Debtors Rs.10, 000
Other Assets Rs. 1,000
Owner’s equity Rs. 1, 000

 

 

 

 

 

►  Rs. 12,000 liabilities

 

►  Rs. 11,000 liabilities

 

►  Rs. 1, 10,000 liabilities

 

►  Rs. 1, 11,000 liabilities

 

 

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

 

Which of the following essentials will be shown in the format of Cash Book?

 

(1)  Ledger code

 

(2)  Amount of Receipt

 

(3)  Amount of payment

 

 

 

 

 

 

►  (1) only

 

►  (1) & (2) only

 

►  (1) & (3) only

 

►  (1), (2) & (3)

 

 

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

 

Consider the following:

 

Beginning inventory 10 units @ Rs. 10 per unit
First purchase 35 units @ Rs. 11 per unit
Second purchase 40 units @ Rs. 12 per unit
Third purchase 20 units @ Rs. 13 per unit

Eighty units were sold, what is the value of the ending inventory using the FIFO method of inventory costing?

 

 

 

►  Rs.260

 

►  Rs.232

 

►  Rs.284

 

►  Rs.320

 

 

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

In

 

cost of goods sold statement, the ‘cost of material consumed’ is equal to:

 

 

 

►  Opening raw material inventory + Purchases – Ending raw material inventory

 

►  Opening raw material inventory – Purchases + Ending raw material inventory

 

►  Ending raw material inventory + Opening raw material inventory – Purchases

 

►  Ending raw material inventory + Opening raw material inventory + Purchases

 

 

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

 

Following are the inventories of Manufacturing Concern EXCEPT:

 

 

 

►  Raw material

 

►  Work in process

 

►  Finished goods

 

►  Merchandise inventory

 

 

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

 

Which of the following is an alternate term which can be used for “Capital”?

 

 

 

 

 

 

►  Liability

 

►  Owner’s net worth

 

 

►  Working capital

 

►  Asset

 

 

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

In

 

which of the following condition a company will have positive working capital?

 

►  If current assets > current liabilities

 

►  If current Assets < current Liabilities

 

►  If current assets = current liabilities

 

►  If current assets < current liabilities

 

 

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

If salaries expense is Rs. 2,500, purchases are Rs. 16,000 and rent (office building) is Rs. 300 during the year, what would be the total of “general & administrative expenses”?

 

 

 

 

 

 

 

 

 

 

►  Rs. 300

 

►  Rs. 2,500

 

►  Rs. 2,800

 

►  Rs.18, 800

 

 

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

The

 

amount brought by the proprietor in the business should be credited to:

 

►  Cash account

 

►  Capital account

 

►  Drawings account

 

►  Proprietor account

 

 

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

An

 

asset on the balance sheet which is expected to be sold or used within one year is known as:

 

 

 

►  Tangible asset

 

►  Current asset

 

►  Fixed asset

 

►  Long term asset

 

 

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

 

Which one of the following is a type of General Ledger?

 

 

 

►  Book of original entry

 

►  ‘T’ Account

 

►  Source document

 

►  Day book

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

 

According to the double entry system of book keeping, the investment of Rs.10, 000 in the business made by the owner will effect:

 

 

 

►  Cash & Capital Account

 

►  Cash & Expense Account

 

►  Capital & Revenue Account

 

►  Capital & Expense Account

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

Mr.”

 

A” sold goods for Rs. 3, 00,000 to Mr. “B”, Rs. 3, 00,000 will be treated as _____________ for business.

 

►  Revenue

 

►  Net profit

 

►  Gross profit

 

►  Operating profit

 

 

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

 

when income exceeds expenses in a specific time period is known as:

 

►  Savings

 

►  Net profit

 

►  Gross profit

 

►  Operating profit

 

 

 

Question No: 51  ( Marks: 5 )

 

 

Financial year decided by partnership agreement is 1st July to 30th June. Mr. Ali is partner and having a capital of Rs. 1,500,000 on July 1st 2007 and he introduced more capital on August 1st 2007 Rs. 10,000 on April 1st 2008, Rs.500,000 and on June 1st 2008 , Rs. 5,000. Mark up rate is 10% p.a.

 

 

 

Capital = 1500000  mark up= 1500000

 

2nd capital= 10000  markup=  1000

 

3rd capital= 500000 markup= 50000

 

4th capital= 5000   markup= 500

 

 

 

Total markup= Rs. 201500

 

 

 

Calculate mark up on Mr. Ali’s capital for the year ending on 31th June 2008.

 

 

 

 

 

 

Question No: 52  ( Marks: 10 )

 

 

Write a note on legal documents required for the formation of company.

 

In Pakistan when someone wants to form a company. He will contact with SECP, its abbreviation for Securities and Exchange Commission of Pakistan. it came in 1984 in law of Pakistan which is called companies ordinance. It controls all affairs of limited companies. For making of private limited company 2 members can submit their names in memorandum and articles of association along with other requirements of company ordinance 1984. while for public limited company seven members will sent their names. By this way they can apply and make registration of the company.

 

 

 

Question No: 53  ( Marks: 10 )

 

 

What is the difference between public and private company?

 

The main difference between public and private company is that in public limited companies there is no restriction on number of persons to be its members. There is one restriction. That there should be a minimum of three members to form a public limited company. Public limited company can offer its shares to general public.

 

While in private company two to fifty persons can form a company. Minimum two members are elected to form a board of directors. This board is given the responsibility to run day to day business of the company. Private limited company cannot offer its share to general public.

 

 

 

Question No: 54  ( Marks: 10 )

 

The

 

following discrepancies were noted on comparing Cash Book with Pass Book.

 

 

 

  1. 1.      Balance as per Cash Book (Cr) is Rs. 19,000.

 

  1. 2.      Cheque for Rs. 5,000 paid into the bank for collection on 20th March, 2008 has not yet been collected.

 

  1. 3.      Cheques for Rs. 15,000 Issued on 24th March, 2008, out of which Cheques for Rs. 10,000 presented during March, 2008

 

  1. 4.      An amount of Rs. 1,000 for interest on overdraft was debited in the Pass Book but was intimated to Mr. David on 4th April, 2008.

 

  1. 5.      Mr. David paid into his bank account an amount of Rs. 3,000 but it was wrongly credited to Mr. Denial’s Account.
  2. 6.      On 20th March, 2008 the bank received dividend of Rs. 10,000 from a company where Mr. David’s has invested his money, the same had been recorded in Cash Book on 31st March, 2008.

 

  1. 7.      Cheque of Rs. 2,500 was shown in Pass Book as dishonored.

 

 

Required: Prepare a Bank Reconciliation Statement as on 31st March, 2008

 

 

 

 

 

Balance as per Cash Book Cr 19000
Unpresented cheques Dr 5000
Uncredited cheque Dr 10000
Interest by bank Dr. 1000

 

 

 

Paper No:20

 

Solved byABr & Chanda Rehman

 

 

FINALTERM EXAMINATION

 

Fall 2008

 

MGT101- Financial Accounting (Session – 3)

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

Debenture is also named as:

 

Share

 

Bond

Equity

Reserve

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

In which situation(s) Partnership is dissolved?

 

In case of death of partner

 

►  At the admission of new partner

If any partner resigned from partnership

 

►  All of the given options

 

Question No: 3 ( Marks: 1 ) – Please choose one
Particulars Rs.
Debentures 1, 50, 000
Equity Capital 2, 00,000
General Reserve 90, 000
Accumulated profit 60,000
What is debt equity ratio ?
► 15:24 (or 5: 8)
► 15:29
► 15:35 (or 3: 7)

15 : 20

Question No: 4 ( Marks: 1 ) – Please choose one
Particulars Rs.
Share capital of Rs. 10 each 1,000,000
Profit before tax

150,000

Taxes

10,000

Earning per share

= ?

 

 

Rs. 1.50 per share

 

Rs. 1.40 per share

Rs. 1.15 per share

 

Rs. 1.25 per share

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

In calculating earning per share (EPS), the net profit is divided by which of the following?

 

► Number of ordinary shares

 

 

Number of preference shares

 

Paid up capital

►  Authorized capital

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

Which of the following statement in NOT TRUE about the limited company form of business?

 

The limited company form of business allows ownership of the business to be spread amongst many people

Shareholders can appoint professionals

Shareholders are personally liable for all the liabilities incurred by the business correct

Regular filing of information about the affairs of the company is a legal requirement

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

Which of the following is the most important document of the company?

 

Memorandum of Association

 

►  Articles of Association

Prospectus

 

►  Annual Report

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

In which of the following interim dividend is treated?

 

In profit and Loss account

 

In profit and Loss appropriation account

On the asset side of the Balance Sheet

 

In trading account

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

The income statement of the Limited company is also known as:

 

Manufacturing account

 

Profit and Loss account

 

Profit and Loss Appropriation account

Current Account

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

In which of the following auditor’s remuneration payable is shown?

 

In balance sheet under the head of current liabilities only

 

In balance sheet under the head of current assets only

In income statement under the administrative expense only

In both balance sheet under the head of current liabilities and income statement under the administrative expense

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

Preliminary Expenses of the company may write off against:

 

Share premium account

 

Share holder account

Debtors control account

 

Creditor control account

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

The amount received; in excess of the face value of the shares is transferred to which of the following?

 

Share premium account

 

Share holder account

Share capital account

Right share

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

The maximum amount with which the company is registered is called:

 

►  Authorized Share Capital

 

Issued Share Capital

Paid up capital

Called up capital

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

When the capitals are fixed, which of the following account will be debited for drawings made by a partner?

 

 

Individual Partner’s Current Account

 

Partner’s Cash Account

Partner’s Bank Account

Partners Capital Account

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

Which of the following is(are) type(s) of capital account in partnership?

 

Fixed Capital

 

Current Capital

Fluctuating Capital

 

Both Fixed Capital and Fluctuating Capital

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

Current accounts of the partners should be opened when the capitals are:

Normal

 

Floating

Fixed

 

Fluctuating

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

Identify the selling expenses of manufacturing concern with the help of given data.

 

Particulars Rs.
Salesman’s salary 70,000

 

Commission on sales 28,000
Carriage outward 10,000
Carriage inward 5,000

 

 

Rs. 80,000

 

Rs. 60,000

Rs. 38,000

 

Rs. 1, 08,000

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

Fixed Assets (WDV) + Working Capital =?

 

Total assets employed

 

Total liabilities

Total assets

 

Current assets

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

Which of the following is CORRECT if depreciation is given in trial balance?

It means depreciation has already been deducted from concerned asset account

 

It will be shown as an expense in income statement only

It will not be deducted from concerned asset in Balance Sheet

 

►  All of the given options are correct

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

Which of the following journal entry will be recorded, if cash is drawn by a Proprietor?

 

Proprietor’s drawings a/c (Dr.) and Cash a/c (Cr.)

 

Cash a/c (Dr.) and Proprietor’s drawings a/c (Cr.)

Proprietor’s Capital (Dr.) and Proprietor’s drawings a/c (Cr.)

 

Proprietor’s drawings (Dr.) and Proprietor’s Capital a/c (Cr.)

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

Which financial statement show what a business owes at a particular point in time?

 

►  A cash flow statement

 

The bank statement for the business

 

►  A balance sheet

►  A statement of retained earnings

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

Which of the following is a selling expense?

 

►  Any tax/freight is paid on purchases

 

General salaries paid to laborers

Tax & freight paid on sale

Interest on deposits

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

Which of the following would NOT be considered as a component of ‘cost’ of stock?

 

 

Salaries of selling staff

 

Transportation inward costs

 

Import duties

Purchase price

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

Which of the following accounts would be increased with a debit?

 

Contributed Capital

 

Retained Earnings

Revenues

Expenses

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars Rs.
Bad debts 1,600
Provision for doubtful debts (old) 2,000
Current year’s provision (new) 1,000

 

 

Rs. 600

 

Rs. 1,600

 

Rs. 2,000

Rs. 2,600

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

Which of the following account will be credited when a typewriter is sold that has been used in the office?

 

Cash Account

 

Sales Account

Purchase Account

 

Office Equipment Account

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

A sum of Rs. 200 written off as bad debt now received credited to the account of debtor would:

 

Increase the net profit by Rs.200

 

Decrease the profit by Rs.200

Remains constant and no effect on net profit

 

There is no relation between debtor and profit

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

Which of the following account(s) will be affected, while rectifying the error of sales to Rahim of Rs. 500 were omitted to record in books of accounts?

 

 

Sales account

 

Rahim’s account

 

Cash account

Both sales and Rahim’s Account correct

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

If the provision for doubtful debts is not created, which of the following entry is passed to record the bad debts in control account?

Bade debts (Dr) and Debtors Control A/c (Cr)

 

►  Allowance for doubtful debts (Dr) and Debtors Control A/c (Cr)

►  Allowance for doubtful debts (Dr) and Debtors A/c (Cr)

Debtors Control A/c (Dr) and Allowance for doubtful debts (Cr)

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

If Bad Debts written off are given in adjustment, then which of the following entry for bad debts written off is CORRECT?

 

 

Bad debts a/c (Dr) and Trading a/c (Cr)

 

Provision for Bad and Doubtful debts a/c (Dr) and Bad debts a/c(Cr)

Bad debts a/c (Dr) and debtors a/c (Cr)

 

Trading a/c (Dr) and Bad debts a/c (Cr)

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

Following information are extracted from books of Mr. XYZ

 

 

Particulars Rs.
Bad Debts (Given in trial balance) 500
Old provisions (Given in trial balance) 800
Sundry Debtors (Given in trial balance) 44,500
Provision for doubtful debts @ 5%
What will be the amount of new provision ?

 

 

 

 

 

Rs. 2,225

 

Rs. 2,525

 

Rs. 1,925

Rs. 3,025

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

Following information are extracted from books of Mr. XYZ

 

 

Particulars Rs.
Closing value of stock 40,000
Write off Bad debts (given in adjustments) 2,400

 

Sundry Debtors (given in trial balance)

33,200

Provision is created on Debtors at 5%

 

Requirement: Identify the Total amount which will deduct from Sundry debtors.

 

Rs. 460

 

Rs. 2,400

Rs. 1,540

Rs. 3,940 correct

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. Actual bad debts are Rs. 1600. What amount of new provision for doubtful debts will be credited in profit & loss account.

 

Rs. 3,600

 

Rs. 2,000 correct

Rs. 1,600

 

Rs. 400

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

Which of the following option is TRUE about the characteristic(s) of Bad Debt?

 

 

It is a definite loss to the business

 

It is not shown in Balance Sheet

No provision is necessary for it

 

►  All of the given options

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

A debit balance in the Bank Statement indicates:

 

Cash at bank

 

Bank overdraft

Overpayment to creditors

 

Cash in hand

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

Particulars Rs.
Opening written down value of machine 1,00,000
Cost of new machine purchased during the year 50,000
Depreciation during the year 21,000
Closing written down value (WDV) ?

Rs. 1, 29,000

Rs. 1, 50,000

Rs. 1, 21,000

Rs. 71,000

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

Depreciable value of an asset is equal to:

 

Cost + scrap value

 

Cost + market price

 

Cost – scrap value

None of the given options

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

If a business pays rent in advance for 12 months, it will be treated as:

 

Prepaid expenses of business

 

Long term liability of business

 

Fixed assets of business

Current liability of business

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

Which of the following asset is NOT depreciated?

 

Factory Buildings

 

Office Equipment

Plant & Machinery

 

Land

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

Which one of the following is NOT true about revenue expenditure?

 

These are the running expenses of the business

 

They improve the financial position of the business

They reduce the profit of the concern

 

They do not appear in the balance sheet

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

Which one of the following is NOT true about Capital Expenditure?

Creates future benefits

 

Incurred to acquire fixed assets

Incurred to increase the economic life of existing fixed assets

 

Reduce the profit of the concern

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

Expenditures incurred anually on renewal of patent are known as:

 

 

Revenue Expenditures

 

Capital Expenditures

Financial Expenditures

Operating Expenditures

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

Which of the following is NOT a type of voucher?

 

 

Journal Voucher

 

Receipt Voucher

 

Payment Voucher

Drawings Voucher

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

If cost of sales is Rs. 95,000, sales are Rs. 200,000 and operating expenses are Rs. 100,000. What will be the net result?

 

Rs. 5,000 Loss

 

Rs. 5, 000 Profit

Rs.1, 95,000 Profit

 

Rs.1, 95,000 Loss

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

If the cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs.20,000 during the year. What would be the Net Profit?

 

 

Rs.15,000

 

Rs. 35,000

 

Rs. 55,000

Rs. 60,000

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

Which of the following account balance will be shown on debit side of Trial Balance? (It is assumed that all account balances are shown on normal balance).

 

Capital account

 

Sundry creditors account

►  Accounts payable account

 

Cash account

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

Accounts Receivable & Inventory are the examples of:

 

Liquid assets

 

Current assets

Fixed assets

 

Capital assets

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

A summarized record of transactions related to individuals or things is called a/an

___________.

 

 

►  Account

 

Voucher

 

Journal

Trial balance

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

When Capital is increased by an amount, it is recorded on the:

 

Left or credit side of the account

 

Right or debit side of the account

Left or debit side of the account

Right or credit side of the account

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

What would be the affect on the components of the accounting equation, if goods are purchased on cash?

 

Increase in cash and decrease in equity

 

Increase in cash and increase in goods

 

Increase in goods and decrease in cash

Increase in equipment and increase in equity

 

Question No: 51  ( Marks: 5 )

 

Calculate net income with the help of given date for the year end of 2007 and show complete working of Cost of Goods sold.

 

 

Raw material Stocks on 1-1-2007 Rs. 30,000
Work in process on 1-1-2007 35,600
Finished Goods on 1-1-2007 35,400
Raw material Stocks 31-12-2007 Rs. 31,000
Work in process 31-12-2007 25,000
Finished Goods 31-12-2007 53,900
Total factory Cost 543,339

 

 

Additional data

 

v         Other expenses for the year is Rs. 5,000.

 

v         Operating expenses for the year Rs. 15,000

 

v         Sale for the year Rs. 1,500,000

 

Solution:

 

Name of the Company

Income Statement

For the period of 2007

 

Particulars Amount Rs

Amount Rs

Sales 1500000
Less Cost of Good Sold (534439)
Gross Profit

965561

Less: Expenses:
Other Expenses 5000
Operating expenses 15000

 

(20000)

 

Net Income

 

945561

 

 

 

 

 

Working:

 

Calculate Cost of Good Sold:

Raw Material:

 

Opening Raw Material: 30000

– Closing Raw Material: 31000

Cost of Material Consumed: -1000
Conversion Cost:
Direct Labor: 0
FOH: 0
Total Factory Cost: 542339
Work in Process:
+Opening WIP:

35600

-Closing WIP:

25000

Cost of Goods Manufactured: 552939
Finish Goods:
+Opening FG:

35400

-Closing FG:

53900

Cost of Good Sold: 534439

 

 

Question No: 52  ( Marks: 10 )

 

Write down the at least ten distinguishing features of a limited company which differentiate it from sole proprietor business

 

Question No: 53  ( Marks: 10 )

 

On 01-01-2007, the provision for doubtful debts a/c stood at Rs. 12,000 (credit balance). In 2007, the bad debts amounted to Rs. 10,000. The debtors on 31-12-2007 are amounted to Rs. 3, 20,000 and a provision for doubtful debt to be maintained @ 10%.

 

Required:

 

Show Journal entries and necessary accounts. Also show how the items will appear in Profit and Loss account and Balance sheet

 

Solution:
Entry#1
Provision for Doubtful Debts

32000

Debtors Control Account

32000

Make Ledgers of each account
Debtors Account
Debit Side Credit Side
Date No. Particulars Dr. Rs. Date No. Particulars Cr. Rs.
Balance 32000 Provision for 32000

 

doubtful debts
32000 32000
Provision of Doubtful debts
Debit Side Credit Side
Date No. Particulars Dr. Rs. Date No. Particulars Cr. Rs.
Debtors 32000 Balance 32000
Account
32000 32000

 

 

 

And you people already know to show these accounts in P n L and Balance Sheet.

 

IN PL Account = 32000+10000-12000=30000 on Debit Side

 

In Balance Sheet

Debtors = 320000-32000-12000-276000

 

Question No: 54  ( Marks: 10 )

 

Following information is extracted from the books of Arfan Ltd as on December 31st, 2007.

 

Particulars Cost Depreciation Accumulated Depreciation
rate On 01-01-2007
Vehicles 01-01-2007 1,90,000 10% 10,000
Building 01-01-2007 4,00,000 20% 12,500
Furniture & Fixture 01-01-2007 4,15,000 15% 34,500
Land 01-01-2007 1,58,000

You are required to calculate Written down value of each asset and show working of complete depreciation for the year ending on December 2007.

 

 

Particulars

Cost

Rate Accumulated Depreciation WDV

As

Addition/ As As At For As At

At

deletion At 1-1- The 31st
1-1- 31st 2007 Year 12-
2007 12- 2007

2007

Vehicles 190000

0

190000

10% 10000 19000

29000

161000
Building 400000

0

400000

20% 12500 80000 92500 307500
Furniture 415000

0

415000

15% 34500 62250 96750 318250
Land 158000

0

158000

0 0 0 0 158000
Total 1163000

0

1163000

57000 161250 218250 944750

 

 

 

Paper No:21

 

Solved by Chanda Rehman & ABr

 

FINALTERM EXAMINATION

 

Fall 2008

MGT101- Financial Accounting (Session – 1)

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

Debenture is also named as:

 

Share

 

Bond

Equity

 

Reserve

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

A company declares a cash dividend to be paid to its stockholders next month. The effect of the transaction is to:

 

 

 

 

 

Decrease assets and liabilities.

 

Increase assets and stockholders’ equity.

► Decrease assets and stockholders’ equity. correct

 

Increase liabilities and decrease stockholders’ equity.

 

Question No: 3  ( Marks: 1 )  – Please choose one

 

The beginning balance of retained earnings was Rs. 7,500. The dividends paid to stockholders’ were Rs.1, 500. The ending balance of retained earnings is Rs. 5,000. What was the net income or net loss for the accounting period?

 

Net loss of Rs.1, 000

Net income of Rs. 1,000

 

Net loss of Rs. 2,000

Net income of Rs. 2,500

 

Question No: 4  ( Marks: 1 )  – Please choose one

 

The net income calculated in the income statement for the accounting period is reported on:

 

 

 

Bank Statement

 

Statement of retained earnings

Statement of cash flows

 

None of the given options

 

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

If company has distributable profit is Rs. 4, 90,000. Profit sharing share ratio of Mr. A, Mr. B and Mr. C is 2:3:5 respectively what will be the Profit share for Mr. B in distributable profit.

 

Rs. 98,000

 

Rs. 1, 47,000

Rs. 2, 45,000

 

Rs. 3, 43,000

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

In which situation(s) Partnership is dissolved?

 

In case of death of partner

 

►  At the admission of new partner

 

If any partner resigned from partnership

►  All of the given options

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

A private limited company can commence its business:

 

Immediately on receiving a certificate of incorporation

 

Without receiving a certificate of incorporation

Only when it receives certificate of commencement of business

Only when it receives both, the certificate of incorporation as well as certificate of commencement of business

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

The balance sheet reported a beginning balance of Rs. 20,000 in Accounts Receivable and an ending balance of Rs. 15,000. Credit Sales of Rs. 200,000 were made during the year. Using this information, compute cash collected from customers.

 

Rs. 215,000

 

Rs. 195,000

Rs. 200,000

 

Rs. 205,000

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

Which of the following is the most important document of the company?

 

Memorandum of Association

 

►  Articles of Association

 

Prospectus

►  Annual Report

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

If dividend is proposed by directors of the company @ 30% for the year, it will be calculated on:

 

Capital Reserve

 

►  Authorized share capital

 

Paid up share capital

 

Share premium

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

Share premium account is used for what?

Write off Preliminary Expenses of the company.

 

Write off the balance amount, in issuing shares on discount.

Issue fully paid Bonus Shares.

 

►  All of the given options

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

Authorized share capital is also known as:

 

Registered capital

 

Issued capital

Paid up capital

 

Called up capital

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

In case of fixed capital accounts, other transactions such as Drawings and Profit etc. are recorded in a separate account that is called ___________.

 

Fixed Capital Account

 

Current Account

Fluctuating Capital Account

Floating Capital Account

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

A, B, C are partners. Their profit sharing ratio is equal. Capital balance on July 1st of Partner A — Rs. 40,000 Partner B — Rs. 30,000 and Partner C— Rs. 20,000.Their private property of Partner A is Rs.15,000, Partner B is Rs. 7,000 and Partner C is Rs. 1,500. What is the level of their liabilities under the partnership firm?

 

Partner A—Rs. 40,000, Partner B—- Rs. 30,000, Partner C – 20,000

 

Partner A—Rs. 40,000, Partner B—- Rs. 30,000, Partner C – 21,500

Partner A—Rs. 40,000, Partner B—- Rs. 37,000, Partner C – 20,000

Partner A—Rs. 55,000, Partner B—- Rs. 37,000, Partner C – 21,500

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

Which of the following item will be shown on debit side of capital account of sole proprietor?

 

Cash

 

Drawings

 

Debtors

Profit

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

Which of the following journal entry will be recorded, if cash is drawn by a Proprietor?

 

Proprietor’s drawings a/c (Dr.) and Cash a/c (Cr.)

 

Cash a/c (Dr.) and Proprietor’s drawings a/c (Cr.)

Proprietor’s Capital (Dr.) and Proprietor’s drawings a/c (Cr.)

 

 

► Proprietor’s drawings (Dr.) and Proprietor’s Capital a/c (Cr.)

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

An asset is considered to be a current asset if:

 

It has been bought recently and was bought new and not used

 

It can be realized in cash or sold or consumed in the business within one year

It is a piece of new machinery that is expected to last for at least ten years

 

►  All of the given options

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

Which of the following appears in both the Income Statement debit column and the Balance Sheet credit?

 

Net income

 

Net loss

Dividends

 

Retained earnings

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

General office expenses are charged to which of the following head:

 

► Administrative expenses ► Marketing expenses

 

► Selling expenses ► Financial expenses

 

Question No: 20  ( Marks: 1 ) – Please choose one
Consider the following table:
Financial statement item Classification
A. Inventory Current asset
B. Tangible assets Non-current asset
C. Accrued expenses Current asset
D. Bonds payable Long-term liabilities

 

Identify the row above, showing an INCORRECT financial-statement classification?

 

Row A

 

Row B

Row C

 

Row D

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

Short-term investments include all of the following EXCEPT:

 

►  A bond receivable intended to be sold within one year

 

Frequently traded securities

►  A stock investment in the General Electric Company intended to be sold within one year

 

► A shares investment in the Coca-Cola Company intended to be held for several years

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

The figure of cash received from debtors can be located either from cash book or:

 

Debtor’s Control Account

 

Balance Sheet

 

Profit & Loss Account

Bills Payable Account

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 10% of the sundry debtors are doubtful. Actual bad debts are Rs. 1600. What amount of new provision for doubtful debts will be credited in profit & loss account

 

Rs. 3,600

 

Rs. 4,000 doubted

Rs. 1,600

Rs. 2, 400

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called:

 

Error of principle

 

Error of omission

 

Error of commission

Error of original entry

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

Which of the following account will be credited when a typewriter is sold that has been used in the office?

 

Cash Account

 

Sales Account

Purchase Account

 

Office Equipment Account

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

Which of the following rectifying entry will be recorded, if sales to Mr. “A” of Rs.336 have been debited to Mr. “B” account?

 

►   A’s account (Dr.) and B’s account (Cr.)

 

B’s account (Dr.) and A’s account (Cr.)

Sales account (Dr.) and B’s account (cr.)

B’s account (Dr.) and Sales account (Cr.)

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

Goods purchased from “Mr. A” for Rs. 2,000 passed through the sales book. The rectification of error will result in:

 

 

Increase of gross profit

 

Decrease of gross profit correct

 

Remains constant and no effect on net profit

There is no relation between goods purchased and gross profit

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

Which of the following account(s) will be affected, while rectifying the error of sales to Rahim Rs. 336 posted to his account as Rs. 363?

 

 

Sales account

 

Rahim’s account

 

Cash account

Both sales and Rahim’s Account

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

Control account tells about:

 

Picture collectively instead of individually

 

Details of loyal clients

Customer attitude of payments

 

Complete history of transactions of business clients

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

Which of the following subsidiary book(s) is (are) maintained for debtors control account?

 

Sales Day Book

 

Sales Return

 

Debtors Ledger

►  All of the given options

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

Which of the following entry will be recorded when the Bad Debts are recovered?

 

 

Cash account (Dr.) & Bad Debts recovered account (Cr.)

 

►  Accounts Receivable account (Dr.) & Bad Debts recovered account (Cr.)

Bad debts recovered account (Dr.) and Profit & Loss account (Cr.)

 

Provision for doubtful debts account (Dr.) & Cash account (Cr.)

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

If the (New provision + Bad debts) > Amount of old provision then resulting figure will be shown at:

 

 

Debit side of Profit & Loss Account

 

Credit side of Profit & Loss Account

 

►  Asset side of Balance Sheet

Liability side of Balance Sheet

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

Which of the following would be deducted from Sundry Debtors in Balance Sheet?

 

Bad debts (Trial balance item)

 

Old provision for doubtful debts

New provision for doubtful debts

Both Bad debts (given in adjustment) and new provision for doubtful debts

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

Which of the following option is TRUE about the characteristic(s) of Bad Debt?

 

 

It is a definite loss to the business

 

It is not shown in Balance Sheet

 

No provision is necessary for it

►  All of the given options

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

Which one of the following transactions will cause the balance in Mr. Terry’s Cash Book to be greater than his Bank Statement balance?

►  A cheque is drawn but not yet presented at the bank for payment

 

The bank has not yet notified to Mr. Terry about a dishonored cheque

►  A credit transfer into Terry’s Bank Account

►  A cheque payment of Rs.101 is recorded in the Cash Book as Rs.110 correct

 

Question No: 36 ( Marks: 1 )  – Please choose one
Consider the following data:
Particulars Rs.
Assets ?
Owner’s equity 1,50,000
Liabilities 1,00,000

 

 

 

Rs. 49,000

 

Rs. 55,000

 

Rs. 50,000

Rs. 2, 50,000

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

Accounting is the language of:

 

Business

 

School

Proprietor

Management

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

Which of the following account balance is shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance)

 

Cash account

 

Furniture account

 

Vehicle account

Capital account

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

Under the reducing balance method of depreciation:

 

►  Amount of depreciation increases every year

 

►  Amount of depreciation remains constant for every year

 

►  Amount of depreciation decreases every year

None of the given options

 

Question No: 40  ( Marks: 1 ) – Please choose one
Consider the following inventory record:
Cost/Unit Total
Date Item Quantity Rs. Rs.
Jan. 2 Beginning inventory 10 10 100
Mar. 4 Purchase 35 11 385
May 8 Purchase 40 12 480
Nov. 3 Purchase 20 13 260
De31 Merchandise available 105 1,225

 

 

85 units were sold, Use the FIFO method of inventory costing and determine the cost of goods sold.

 

Rs. 1,225

 

Rs. 1,015

Rs. 965

 

Rs. 992

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

WhicWhich of the following is an example of direct materials cost?

 

 

Polish and finishing material for chair

 

►  A piece of wood for the production of chair

Production worker’s wages

Depreciation expenses

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

Which of the following account will be credited, if the goods are sold on credit to Mr. Mahmood?

 

Cash account

 

Mr. Mahood account

Sales account

 

Purchases account

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

Which of the following account will be credited, if business sold goods for Rs.10,000 on credit?

 

 

 

Cash account

 

Sales account

 

►  Accounts receivable account

Purchases account

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

Which of the following is an example of a Current liability?

 

Closing inventory

 

Opening inventory

Petty cash

 

Bank overdraft

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

Which of the following is CORRECT for trading account?

 

It inculdes cost of goods sold and all the direct expenses related to sales

 

It inculdes cost of goods sold and all the indirect expenses related to sales

It inculdes cost of goods sold and all the direct and indirect expenses

 

It inculdes cost of goods sold and all the direct and selling, administrative expenses

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

Which of the following are the components of General Ledger?

1)        Title of account

2)        Amount of transaction

 

3)        Date of transaction

(1) & (2) only

►   (2) & (3) only

 

(1) & (3) only

(1), (2) & (3)

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

The original book of entry, in which all vouchers are first recorded, is called:

 

 

General Journal

 

General Ledger

 

Trial Balance

Balance Sheet

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

When a Liability is reduced or decreased, it is recorded on the:

 

Right or debit side of the account

 

Left or debit side of the account

Left or credit side of the account

Right or credit side of the account

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

According to the double entry system of book keeping, the investment of Rs.10, 000 in the business made by the owner will effect:

 

 

Cash & Capital Account

 

Cash & Expense Account

Capital & Revenue Account

 

Capital & Expense Account

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

Which of the following is non- profit organization?

Sole proprietorship

 

Partnership

Limited company

►   Trust

 

Question No: 51  ( Marks: 5 )

 

What is bank overdraft? Mention an example for this. Why companies have to pay mark up on it. Under which head mark up paid on overdraft is shown in financial statement.

 

Answer:

 

An overdraft occurs when withdrawals from a bank account exceed the available balance. In this situation a person is said to be “overdrawn”.

 

 

Question No: 52  ( Marks: 10 )

Income Statement of XYZ Ltd for the year ended on 30th June, 2007:

 

Particulars Rs. Rs.
Sales 500,000
Less: Cost of Goods Sold 250,000
Gross Profit 250,000
Less: Operating expenses
Administrative expenses 110,000
Interest expenses 20,000 130,000
Net profit before Tax 120,000
Less: Taxes 36,000
Net profit after tax 84,000

 

 

Opening Stock for the year was Rs. 60,000.

 

 

Balance Sheet of XYZ Ltd on 30th June, 2007:

 

Assets Rs.
Fixed Assets 400,000
Stock 60,000
Debtors 230,000
Bills Receivable 40,000
Cash at bank 150,000
Prepaid expenses 20,000
Total 900,000
Liabilities
Share capital 200,000
Reserves and surplus 250,000
10% Debentures 200,000
Creditors 180,000
Bills payable 70,000
Total 900,000

 

Calculate following ratios from the financial statement of XYZ Ltd.

 

  1. 1.         Current Ratio
  2. 2.         Acid Test Ratio
  3. 3.         Stock turn over Ratio

 

  1. 4.         Debt equity Ratio
  2. 5.         Gross profit Ratio

 

Solution:

1:  Current Ratio:

Total Assets/Total Liabilities

900000/900000

1

 

2: Acid Test Ratio

 

Total Assets-Stock/Total Liabilities

900000-60000/900000

840000/900000

 

0.933333

 

3: Stock turn over Ratio

 

(Average Stock / Cost of goods sold) x 365

 

Average Stock = opening stock + Closing Stock/2

 

60000+60000/2

 

60000

(Average Stock / Cost of goods sold) x 365

(60000/250000) x 365

 

0.24 x 365

87.4

 

4: Debt equity Ratio

 

Long term Liabilities / Equity

 

200000/200000

 

1

 

5: Gross profit Ratio

 

(Gross Profit / Sales) x 100

250000/500000 x 100

 

0.5 x 100

50

 

 

Question No: 53  ( Marks: 10 )

 

Pass the rectifying entries to correct the following errors:

 

 

Question No: 54  ( Marks: 10 )

 

The following discrepancies were noted on comparing Cash Book with Pass Book.

 

(1)    The following cheques were deposited into bank on 28th March but were not collected by the bank by 31stMarch, (i) Rs. 500, (ii) Rs. 300, (iii) Rs. 200.

 

(2)    The following cheques were issued but were not presented for the payment by 31st March. (i) Rs. 200, (ii) Rs. 450 (iii) Rs. 525 (iv) Rs. 375.

 

(3)    The bank credited a dividend of Rs. 2,000 on 31st march but intimation was received by the trader on 5th April, 2008.

 

(4)    The bank credited interest of Rs. 50 on 31st March but not debited in Cash Book.

 

(5)     The Bank charged (debited) a commission of Rs. 100 on 31st March.

(6)     A cheque of Rs. 500 was received from customer and was entered in the

 

bank column of Cash Book on 25thMarch, but was paid into the bank on 1st April.

 

Required: Prepare a Bank Reconciliation Statement, if the Bank balance as per Cash Book (Dr.) was Rs. 15,000 on 31stMarch, 2008.

 

Answer:
Balance as per Cash book. Dr

15000

Less not collected Cheques. (500+300+200) Cr

1000

Dr

14000

Add UN Presented Cheques (200+450+525+375) Dr

1550

Dr

15550

Add dividend Credit by bank Dr

2000

Dr

17550

Add interest credit by bank Dr

50

Dr

17600

Less bank charges Cr

100

Dr

17500

Less Cheque received Cr

500

Balance as per Bank Book Cr 17000

 

Paper No: 22

 

Solved by Chanda Rehman & ABr

 

FINALTERM EXAMINATION

 

Fall 2008

 

MGT101- Financial Accounting (Session – 4)

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

Wages outstanding given in the trial balance will be treated as a (an):

 

►  Asset

 

►  Liability

 

►  Revenue

 

►  Deferred expense

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

What does a credit balance in a partner’s current account represent to a business?

 

►  Current Assets

 

►  Current Liability

 

►  Long-term liability

 

►  Share of profit

 

Question No: 3 ( Marks: 1 )  – Please choose one
Particulars

Rs.

Debentures

1, 50, 000

Equity Capital

2, 00,000

General Reserve

90, 000

Accumulated profit

60,000

What is debt equity ratio

?

 

►  15: 20 (or 3:4)

 

►  15:24 (or 5: 8)

 

►  15:29

 

►  15:35 (or 3: 7) correct

 

 

 

 

Question No: 4  ( Marks: 1 )

– Please choose one

Particulars

Rs.

Share capital of Rs. 10 each

1,000,000

Profit before tax

150,000

Taxes

10,000

Earning per share

= ?

 

 

 

 

►  Rs. 1.50 per share

 

►  Rs. 1.40 per share

 

►  Rs. 1.15 per share

 

►  Rs. 1.25 per share

 

 

 

 

Question No: 5  ( Marks: 1 )  – Please choose one
Mark up cover ratio = operating profit before financial charges  ÷

?

► Selling expenses
► Administrative expenses
► Financial charges
► Direct expenses

 

 

 

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

In calculating earning per share (EPS), the net profit is divided by which of the following?

 

 

 

►  Number of ordinary shares

 

►  Number of preference shares

 

►  Paid up capital

 

►  Authorized capital

 

 

 

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

Which of the following business publishes the Financial Statements?

 

 

 

 

►  Sole-Proprietorship

 

►  Partnership

 

►  Trust

 

►  Public Limited Company

 

 

 

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

The primary purpose of preparing a cash flow statement for an entity is to provide information about:

 

►  Its financial position at the end of an accounting period

 

►  Its cash receipts and cash payments during an accounting period

 

►  Its financial position at the start of an accounting period

 

►  None of the given options

 

 

 

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

How dividend declared is treated in the Balance Sheet of the company?

 

 

 

►    Provision

 

►  Current liability

 

►  Reserves and surplus

 

►  Current assets

 

 

 

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

Which of the following option(s) is TRUE about the Sales returns?

 

 

 

 

 

 

 

 

 

 

 

 

►  Sales returns reduce the Gross sales of the firm

 

►  Sales returns affect the Net income of the firm

 

►  Sales returns affect the flow of cash

 

►  All of the given options

 

 

 

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

Fixed Assets (WDV) + Working Capital =?

 

 

 

 

►  Total assets employed

 

►  Total liabilities

 

►  Total assets

 

 

► Current assets

 

 

 

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

Which of the following is TRUE about a merchandising company?

 

►  A merchandising company’s business is to buy and sell products

 

►  A merchandising company must use the perpetual system to account for merchandising inventory

 

►  A merchandising company’s business is to provide services

 

►  A Sugar Mill is an example of a merchandising company

 

 

 

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

Capital account of sole proprietors is affected by which of the following items?

 

  1. Profit & Loss account

 

  1. Drawings account

 

  1. Balances of capital account

 

 

 

 

►  a,b

 

►    b,c

 

►  a,c

 

►  a,b,c

 

 

 

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

Which of the following is/are TRUE about the sole trader form of business? ► A sole trader is liable to pay income tax on his/her earnings

 

 

►  Sole traders do not need to consult accountants

 

►   Sole traders must register the name of their business with the Registrar of Companies

 

►  All of the given options

 

 

 

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

Which of the following is (are) characteristic(s) of Reserve?

 

 

 

 

►  Its amount is generally determined by the management on the basis of the amount of profit earned.

 

►  It is shown on liabilities side of balance sheet

 

►  It does not affect profit or loss, since it is created after ascertaining net profit

 

►  All of the given options

 

 

 

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

Which account is increased with a debit and decreased with a credit?

 

 

 

 

►  Cash

 

►  Accounts Payable

 

►  Contributed Capital

 

►  Retained Earnings

 

 

 

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

Which financial statement show what a business owes at a particular point in time?

 

►  A cash flow statement

 

►  The bank statement for the business

 

►  A balance sheet

 

►  A statement of retained earnings

 

 

 

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

Which of the following appears in both the Income Statement debit column and the Balance Sheet credit?

 

 

 

 

►  Net income

 

►  Net loss

 

►  Dividends

 

►  Retained earnings

 

 

 

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

The Balance Sheet item that represents the resources invested by the owner is known as:

 

►  Accounts Receivable

 

►  Cash

 

►  Note Payable

 

►  Owner’s Equity

 

 

 

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

Which of the following is an example of operating expense?

 

► Purchasing operating equipment

 

► Purchasing cleaning services  doubted

 

►  Purchasing an investment in another company

 

►  Purchasing a computer for the accounting office

 

 

 

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

The main objective of financial reporting is to provide:

 

 

 

 

►  Essential information to internal users of financial reports.

 

►  Useful economic information about the business to the external parties for sound financial decisions.

 

►  Information to internal users about the cash position of the business.

 

►  Information to the Securities Exchange Commission (SEC).

 

 

 

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

The figure of cash received from debtors can be located either from cash book or:

 

 

 

 

►  Debtor’s Control Account

 

►  Balance Sheet

 

►  Profit & Loss Account

 

►  Bills Payable Account

 

 

 

 

 

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars

Rs.

Bad debts

3,500

Provision for doubtful debts (old)

6,000

Current year’s provision (new)

1,500

 

 

 

 

►  Rs. (1,000)

 

►  Rs. 1,000

 

►  Rs. (5,000)

 

►  Rs. 5,000

 

 

 

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars

Rs.

Bad debts

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

1,000

 

 

 

 

 

 

►  Rs. 600

 

►  Rs. 1,600

 

►  Rs. 2,000

 

►  Rs. 2,600

 

 

 

 

 

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

Which of the following rectifying entry will be recorded, if sales to Mr. “A” of Rs.336 have been debited to Mr. “B” account?

 

 

 

 

►    A’s account (Dr.) and B’s account (Cr.)

 

►  B’s account (Dr.) and A’s account (Cr.)

 

►  Sales account (Dr.) and B’s account (cr.)

 

►  B’s account (Dr.) and Sales account (Cr.)

 

 

 

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

Which of the following account(s) will be affected, while rectifying the error of a purchase return of Rs.200 to Mr. “A” entered in sales book instead of purchase return book?

 

 

 

►  A’s account only

 

►  Sales account only

 

►  Purchase returns account and sales account

 

►  Purchases account only

 

 

 

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

A receipt of cash Rs. 10,000 from Mr. Bilal is recorded as Rs. 1,000. What amount will be adjusted in rectifying entry?

 

 

 

 

►  Rs. 1,000

 

►  Rs. 9,000

 

►  Rs. 10,000

 

►  Rs. 11,000

 

 

 

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

If provision is created for doubtful debts, which of the following entry will be passed to record bad debts in control account?

 

 

 

 

►  Bade debts (Dr) and Debtors Control A/c (Cr)

 

►  Provision for doubtful debts (Dr) and Debtors Control A/c (Cr) correct

 

►  Provision for doubtful debts (Dr) and Debtors A/c (Cr)

 

►  Debtors Control A/c (Dr) and Provision for doubtful debts (Cr)

 

 

 

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

Which of the following is a detailed record of an individual account in case of large business?

 

►  Control Account

 

►  Subsidiary Ledger

 

►  Balance Sheet

 

►  Trial Balance

 

 

 

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

Which of the following is shown on credit side of creditors control account?

 

 

 

 

►  Bills Receivable

 

►  Return inwards

 

►  Credit purchases

 

►  Discount allowed

 

 

 

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

Which of the following is an item of a creditors control account?

 

►  Cash sales

 

►  Credit sales

 

►  Credit purchase

 

►  Cash purchases

 

 

 

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

In which of the following condition(s) DEBT is regarded as BAD.

 

 

 

 

►  Bankruptcy of the debtor

 

►  Disappearance of debtor’s business

 

►  Failure of repeated attempt to collect the debt

 

►  All of the given options

 

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

Which of the following best describes unpresented cheques?

 

 

 

 

►  Cheques received on behalf of the business by the bank

 

►  Cheques drawn but yet to be recorded in the bank records

 

►  Cheques issued by the bank not recorded in business records

 

►  Cheques received but yet to be recorded in the bank records

 

 

 

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

The following balance and discrepancies were found on 31 March 2008:

 

 

 

 

Particulars Rs.
Cash book balance (Dr)

5 000

Unpresented cheques

1 000

Uncredited cheques

500

 

 

 

 

The Bank Statement balance on 31 March 2008 should be:

 

►  Rs. 5 500 (Dr)

 

►  Rs. 5 500 (Cr)

 

►  Rs. 4 500 (Dr)

 

►  Rs. 4 500 (Cr) correct

 

 

 

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

Consider the following data:

 

 

 

 

Particulars

Rs.

Assets

?

Owner’s equity

1,50,000

Liabilities

1,00,000

 

 

 

 

 

 

►  Rs. 49,000

 

►  Rs. 55,000

 

►  Rs. 50,000

 

► Rs. 2, 50,000

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

Find out the missing value of an Accounting Equation with the help of given data:

 

 

 

 

Furniture Rs. 90,000
Cash Rs.1, 00, 000
Debtors Rs.10, 000
Other Assets Rs. 1,000
Owner’s equity Rs. 90, 000

 

 

 

 

►  Rs. 2, 01,000 liabilities

 

►  Rs. 1, 11, 000 liabilities

 

►  Rs. 2, 90, 000 liabilities

 

►  Rs. 2, 91, 000 liabilities

 

 

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

Accountancy covers which of the following area(s):

 

 

 

 

►  Book-keeping

 

►  Accounting

 

►  Auditing

 

►  All of the given options

 

 

 

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

___________ is the detail of transaction in one’s account provided by the bank.

 

►  Bank statement

 

►  Bank reconciliation statement

 

►  Income statement

 

►  Financial statement

 

 

 

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

Consider the following inventory record:

 

 

 

 

Date

Item Quantity

Cost/Unit

Total

2007Jan. 2

Opening inventory 100

Rs.18.00

Rs.1,800

Mar. 4

Purchase 400

19.00

7,600

May 8

Purchase 800

20.00

16,000

Nov. 3

Purchase 500

21.00

10,500

 

Four hundred units are unsold, Use the FIFO method of inventory costing and determine the value assigned to the 400 units on hand at the end of the period.

 

 

 

 

►  Rs.7, 500

 

►  Rs.7, 978

 

►  Rs.8, 000

 

►  Rs.8, 400

 

 

 

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

Consider the following inventory record:

 

 

 

 

Cost/Unit

Total

Date Item

Quantity

Rs.

Rs.

Jan. 2 Beginning inventory

10

10

100

 

Mar. 4 Purchase

35

11

385

May 8 Purchase

40

12

480

Nov. 3 Purchase

20

13

260

De31 Merchandise available

105

1,225

 

 

 

 

85 units were sold, Use the FIFO method of inventory costing and determine the cost of goods sold.

 

 

 

 

►  Rs. 1,225

 

►  Rs. 1,015

 

►  Rs. 965

 

►  Rs. 992

 

 

 

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

All the costs incurred on the incomplete assets up to the balance sheet date must be transferred to:

 

 

 

 

►  Capital account

 

►  Capital work in progress account

 

►  Relevant asset account

 

►  Owner’s equity account

 

 

 

 

Question No: 42  ( Marks: 1 )

– Please choose one

Cost of asset

Rs. 1,00,000

Life of asset

5 years

Depreciation for each year

Rs. 15,000

Sale price after 5 years

Rs.50,000

Book value of Asset after 5 years

?

 

 

 

►  Rs.25, 000

 

►  Rs. 75,000

 

►  Rs. 15,000

 

►  Rs. 1, 00,000

 

 

 

 

Question No: 43  ( Marks: 1 ) – Please choose one
Direct materials costs

Rs.70,000

Direct labor costs

30,000

Manufacturing overhead costs

60,000

conversion cost

?

 

 

 

 

►  Rs. 20,000

 

►  Rs.40, 000

 

►  Rs.90, 000

 

►  Rs.160, 000

 

 

 

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

Which of the following shows summary of a company’s financial position at a specific date?

 

 

 

 

►  Profit & Loss Account

 

►  Cash Flow Statement

 

►  Balance Sheet

 

►  Income & Expenditure Account

 

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

Bank book is part of:

 

 

 

 

►  Voucher

 

►  General Journal

 

►  General Ledger

 

►  Trial Balance

 

 

 

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

Which of the following are the components of General Ledger?

 

1)              Title of account

 

2)              Amount of transaction

 

3)              Date of transaction

 

►  (1) & (2) only

 

►    (2) & (3) only

 

►  (1) & (3) only

 

►  (1), (2) & (3)

 

 

 

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

Which of the following is CORRECT about the flow of recording a transaction?

 

 

 

 

► Occurrence of event – voucher—Journal—Ledger—Trial Balance—profit and loss account—Balance Sheet

 

 

►  Occurrence of event—Journal – voucher —Ledger—Trial Balance—profit and loss account—Balance Sheet

 

 

 

 

►  Occurrence of event—Ledger – voucher—Journal—Trial Balance—profit and loss account—Balance Sheet

 

 

 

 

►  Occurrence of event—Trial Balance – voucher—Journal—Ledger—profit and loss account—Balance Sheet

 

 

 

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

Vehicles which are used to supply finished products are called business ________.

 

 

 

 

►  Tangible assets

 

►  Intangible assets

 

►  Capital

 

►  Liabilities

 

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

The basic accounting principle/concept according to which Business is independent from its owner(s) is known as:

 

 

 

 

►  Separate Entity Concept

 

►  Matching Concept

 

►  Going Concern Concept

 

 

► Materiality Concept

 

 

 

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

Shares for which amount is paid by public are called ________ shares.

 

►  Paid up

 

►  Authorized

 

►  Bonus shares

 

 

 

 

►  All are correct options

 

 

 

 

 

 

Question No: 51  ( Marks: 5 )

 

10 % Debentures of Rs. 80,000 are shown in trial balance. How it will be shown in financial statements? Also mention why a company issues debentures.

 

 

 

 

Answer:

 

10% Debentures of Rs. 80000 is shown the Owners Equity pr liability Side of Balance sheet.

 

Debentures are issued under the common seal of the company and debentures are an instrument for obtaining the loan from the general public. Company also paid mark up on debentures which generally equal to the market rate.

 

 

 

 

Question No: 52  ( Marks: 10 )

 

Following information is extracted from the books of Arfan Ltd as on December 31st, 2007.

 

Particulars Cost

Depreciation

Accumulated Depreciation

rate

On 01-01-2007

 

Vehicles 01-01-2007

1,90,000

10%

10,000

Building 01-01-2007

4,00,000

20%

12,500

Furniture & Fixture 01-01-2007

4,15,000

15%

34,500

Land 01-01-2007

1,58,000

 

You are required to calculate Written down value of each asset and show working of complete depreciation for the year ending on December 2007.

 

Particulars Cost Rate Accumulated Depreciation WDV
As Addition/ As As At For As At
At At
1-1- deletion 31st 1-1- The

31st

2007 12-
2007 12- Year 2007

2007

Vehicles 190000

0

190000

10% 10000 19000

29000

161000
Building 400000

0

400000

20% 12500 80000 92500 307500
Furniture 415000

0

415000

15% 34500 62250 96750 318250
Land 158000

0

158000

0 0 0 0 158000
Total 1163000

0

1163000

57000 161250 218250 944750

 

 

 

 

 

 

 

 

 

Question No: 53  ( Marks: 10 )

 

Prepare Profit and Loss Account for the year ending 31st December 2007 from the Trial Balance and adjustments of MS Company given below:

 

 

 

 

Particulars Debit Credit
Rs. Rs.
Drawings

14,000

Capital Account

80,000

Opening Stock

55,000

Purchases

485,000

Sales

610,000

Sundry Debtors

80,000

Sundry Creditors

60,500

Sales Returns

5,000

Carriage Inwards

6,000

Salaries

28,000

Rent, Rates, Taxes

15,000

 

Insurance

4,000

Machinery

50,000

Furniture

5,000

Cash in hand

3,500

Total

750,500

750,500

 

 

 

 

Adjustments:

 

4)              Depreciate machinery and furniture @20%p.a.

 

5)              Outstanding Salaries Rs. 2,000

 

6)              Insurance paid in advance Rs. 500

 

7)              Maintain @5% reserve for doubtful debts on debtors.

 

8)              Closing Stock was valued at Rs. 60,000

 

Trading & Profit & Loss Account

 

For the year ending 31st December 2007

 

Particulars Debit Balance/Rs Particulars Credit Balance/Rs
Opening Stock 55000 Sales

610000

605000
Purchases 485000 Less returns: 5000
Carriage in 6000 Closing Stock 60000
Gross Profit 119000
665000 665000
Salaries

28000

Gross Profit 119000
+outstanding: 2000 30000
Rent, Rate, Taxes 15000
Insurance

4000

Less advance: 500 3500
Depreciation:
Machinery: 10000

 

Furniture: 1000 11000
Provision of bed debts 4000
Net Profit:
55500
119000

119000

 

 

 

 

Question No: 54  ( Marks: 10 )

 

What is the effect of given adjustments on Trading & Profit & Loss account and Balance Sheet?

 

  1. Accrued Expenses or Outstanding Expenses

 

  1. Prepaid Expenses or Unexpired Expenses

 

  1. Accrued Revenue or Revenue Receivable

 

  1. Unearned Revenue or Revenue Received in Advance

 

  1. Depreciation of Asset

 

 

 

 

1. Accrued Expenses or Outstanding Expenses Trading and profit and loss account effect

 

These expenses will be shown in profit and loss account under administrative expenses and will and be deducted from gross profit. They will be used to calculate net profit

 

Balance sheet effect

 

These expenses will be shown as expense payable or accrued expenses in balance sheet as current liabilities and will be shown under current liabilities section of liabilities as they have to be paid by business..

 

 

 

 

  1. 2.         Prepaid Expenses or Unexpired Expenses

 

Trading and profit and loss account effect

 

These will be deducted from relevant expense account to get the actual expenses for the period and that actual amount of expense will be deducted from gross profit to arrive at net profit. This amount of prepaid expenses will not be included in profit and loss account as an expense itself but its effect will be on current expenses for the period for which profit and loss is being calculated.

 

Balance sheet effect

 

These prepaid expenses will be show and current assets in balance sheet and will be shown under the section of current assets in balance sheet.

 

  1. 3.         Accrued Revenue or Revenue Receivable

 

Trading and profit and loss account effect

 

These will be added to sales in trading account in profit and loss statement and will be treated as a revenue in the calculation of gross profit by subtracting cost of goods sold from net sales. This will affect gross profit in trading account.

 

Balance sheet effect

 

In balance sheet this revenue will be shown under current assets as receivables from debtors and will be shown under the section of current assets of the business.

 

  1. 4.         Unearned Revenue or Revenue Received in Advance

 

Trading and profit and loss account effect

 

This will not be added to the sales as sales is recognized when the actual services have been provided or when goods have been shipped irrespective of whether payment has been received or not. So this will not affect profit and loss account as it is still not recognized as sales/revenue.

 

Balance sheet effect

 

This is a liability for the company because the company has to give goods or services to the buyer for the advance payment done by the buyer and will be shown as a liability in the balance sheet under the current liability section of balance sheet. Also the same amount will be shown in the bank or cash as current asset to offset the liability because the cash or cheque has been received for goods not given or services not rendered yet.

 

  1. 5.         Depreciation of Asset

 

Trading and profit and loss account effect

 

The depreciation of asset is an operating expense for the business and will affect profit and loss account. It will be added to the administrative expense and will be appear in the administrative expense section of profit and loss account and will be deducted from gross profits to arrive at net profits along with other expenses.

 

Balance sheet effect

 

In balance sheet it will appear as deduction from the fixed asset as the fixed assets in balance sheet will be shown at written down value. So this will be added to previous balance of accumulated depreciation and will be deducted from the total cost of the fixed assets and will appear in the assets section under the heading of fixed asset. It might appear in notes as sometimes in balance sheet summarized figure of fixed asset at WDV will be shown. In any case it is deducted from fixed asset in balance sheet and affects the total assets side

 

 

 

 

 

 

Paper No:23

 

Solved by Chanda Rehman & ABr

 

FINALTERM EXAMINATION

 

Fall 2008

 

MGT101- Financial Accounting (Session – 1)

 

Time: 120 min

 

Marks: 85

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

If company has distributable profit is Rs. 4, 90,000. Profit sharing share ratio of Mr. A, Mr. B and Mr. C is 2:3:5 respectively what will be the Profit share for Mr. B in distributable profit.

 

 

 

►    Rs. 98,000

 

►    Rs. 1, 47,000

 

►    Rs. 2, 45,000

 

►    Rs. 3, 43,000

 

 

 

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

 

What types of changes (is) are made at the admission of partner in partnership?

 

►    Assets of old business will be revalued

 

►    Liabilities of old business will be revalued

 

►    Good will of business will be revalued

 

►    All of the given options

 

 

 

Question No: 3  ( Marks: 1 )  – Please choose one

 

A firm may earn profit during an accounting period but have less money in the bank at the end of the period then it had at the beginning. Which of the followings, on its own, could explain this?

 

 

 

►    Not paying invoices received from creditors

 

►    The sale of fixed assets during the period

 

►    An increase in trade debtors over the course of the period

 

►    An increase in the depreciation charge relative to the previous accounting period doubted

 

 

 

Question No: 4  ( Marks: 1 )  – Please choose one

 

In

 

which of the following auditor’s remuneration payable is shown?

 

 

 

►    In balance sheet under the head of current liabilities only

 

►    In balance sheet under the head of current assets only

 

►    In income statement under the administrative expense only

 

►    In both balance sheet under the head of current liabilities and income statement under the administrative expense

 

 

 

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

The

 

charter of a company which defines the limitations and powers of the company is called:

 

►    The memorandum of association

 

►    Articles of association

 

►    Statutory report

 

►    Certificate of commencement

 

 

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

By which if the following Act/ Ordinance, a company is allowed to issue shares at a higher price than their face value.

 

►    Companies ordinance 1984

 

►    Contract act 1872

 

►    Sales of Goods act 1930

 

►    None of the given options

 

 

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

 

Which of the following clause/s are discussed in Memorandum of Association of Companies?

 

 

 

►    Name of company

 

►    Place of registered office of company

 

►    Objective of the company

 

►    All of the given options

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

 

Identify the selling expenses of manufacturing concern with the help of given data.

 

Particulars

Rs.

Salesman’s salary

70,000

Commission on sales

28,000

Carriage outward

10,000

Carriage inward

5,000

 

 

►    Rs. 80,000

 

►    Rs. 60,000

 

►    Rs. 38,000

 

►    Rs. 1, 08,000

 

 

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

 

Which of the following account is affected from the Drawings of cash in sole-proprietorship business?

 

►    Capital account

 

►    Shareholder account

 

►    Liability account

 

►    Expense account

 

 

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

 

Regardless of how long it takes to produce and sell , inventory is always considered to be a:

 

 

 

 

► current liability

 

►    long-term asset

 

►    stockholders’ equity

 

►    current asset

 

 

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

An

 

asset is considered to be a current asset if:

 

 

 

►    It has been bought recently and was bought new and not used

 

►    It can be realized in cash or sold or consumed in the business within one year

 

►    It is a piece of new machinery that is expected to last for at least ten years

 

►    All of the given options

 

 

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

 

General office expenses are charged to which of the following head:

 

 

 

►    Administrative expenses

 

►    Marketing expenses

 

►    Selling expenses

 

►    Financial expenses

 

 

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

 

Wages paid to laborers working in the manufacturing department is treated as an expense of:

 

►    Cost of goods sold

 

►    Administrative expenses

 

►    Selling expenses

 

►    Marketing expenses

 

 

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 10% of the sundry debtors are doubtful. Actual bad debts are Rs. 1600. What amount of new provision for doubtful debts will be deducted from Sundry debtors?

 

 

 

►    Rs. 3,600

 

►    Rs. 4,000

 

►    Rs. 1,600

 

►    Rs. 2, 400

 

 

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars

Rs.

Bad debts

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

1,000

 

 

 

 

 

►    Rs. 600

 

►    Rs. 1,600

 

►    Rs. 2,000

 

►    Rs. 2,600

 

 

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

 

Which of the following account(s) will be affected, while rectifying the error of sales Rs.100 to Mr. “A” recorded in the purchases book?

 

 

 

 

 

 

►    Sales account

 

►    Purchase account

 

►    A’s account and Sales account

 

►    Sales account, purchase account and As account

 

 

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

 

“Goods sold to Mr. Salman for Rs. 6,000 have been forgotten to enter in books of accounts”, is an example of:

 

 

 

►    Error of principle

 

►    Error of omission

 

►    Error of commission

 

►    Error of original entry

 

 

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

 

Transaction that has been completely forgotten to enter is called:

 

►    Error of principle

 

►    Error of omission

 

►    Error of commission

 

►    Error of original entry

 

 

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

 

Goods purchased from “Mr. A” for Rs. 2,000 passed through the sales book. The rectification of error will result in:

 

 

 

►    Increase of gross profit

 

►    Decrease of gross profit

 

►    Remains constant and no effect on net profit

 

►    There is no relation between goods purchased and gross profit

 

 

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

 

Which of the following account(s) will be affected, while rectifying the error of purchases return of Rs. 200 to “Mr.P” mistakenly entered in sales book?

 

 

 

 

 

 

►    P’s account

 

►    Purchases return account

 

►    Sales account

 

►    Purchases returns account and sales account

 

 

 

 

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

If provision is created for doubtful debts, which of the following entry will be passed to record bad debts in control account?

 

 

 

►    Bade debts (Dr) and Debtors Control A/c (Cr)

 

►    Provision for doubtful debts (Dr) and Debtors Control A/c (Cr)

 

►    Provision for doubtful debts (Dr) and Debtors A/c (Cr)

 

►    Debtors Control A/c (Dr) and Provision for doubtful debts (Cr)

 

 

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

 

Control account tells about:

 

 

 

►    Picture collectively instead of individually

 

►    Details of loyal clients

 

►    Customer attitude of payments

 

►    Complete history of transactions of business clients

 

 

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

 

Which of the following is an item of a creditors control account?

 

►    Cash sales

 

►    Credit sales

 

►    Credit purchase

 

►    Cash purchases

 

 

 

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

 

Which of the following is an item of a debtors control account?

 

 

 

► Cash sale

 

► Credit sales

 

► Credit purchase ► Cash purchases

 

 

 

Question No: 25  ( Marks: 1 ) – Please choose one
Consider the following data:
Provision created in 2006 Rs. 2,500
Bad debts in 2007 Rs. 1,500
Sundry debtors on 31-12- 2007 were Rs. 40,000 and provision is created @ 5%.
Which journal entry is Correct for the provision for doubtful debts for the year 2007.

 

 

►    Provision for doubtful debts a/c Rs. 1,000 (Dr) & Profit & Loss a/c Rs. 1,000 (Cr)

 

►    Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)

 

►    Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)

 

►    Profit & Loss a/c Rs. 1,000 (Dr) & Provision for doubtful debts a/c Rs. 1,000 (Cr)

 

 

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31-12-2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. What entry will pass to transfer the bad debts to provision for doubtful debts?

 

 

►    Profit & Loss a/c Rs. 1,600 (Dr) & Provision for doubtful debts a/c Rs. 1,600 (Cr)

 

►    Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)

 

►    Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)

 

►    Provision for doubtful debts a/c Rs. 1,600 (Dr) & Bad Debts a/c Rs. 1,600 (Cr)

 

 

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

 

Which of the following entry will be recorded when the Bad Debts are recovered?

 

 

 

 

 

 

►    Cash account (Dr.) & Bad Debts recovered account (Cr.)

 

►    Accounts Receivable account (Dr.) & Bad Debts recovered account (Cr.)

 

►    Bad debts recovered account (Dr.) and Profit & Loss account (Cr.)

 

►    Provision for doubtful debts account (Dr.) & Cash account (Cr.)

 

 

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

 

Consider the following data and identify the amount which will be shown in profit & loss account.

 

Particulars

Rs.

Bad debts

1,600

Provision for doubtful debts (old)

2,000

Current year’s provision (new)

800

 

 

►    Rs. 400

 

►    Rs. 800

 

►    Rs. 2,000

 

► Rs. 2,400

 

 

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

In

 

which of the following condition(s) DEBT is regarded as BAD.

 

 

 

►    Bankruptcy of the debtor

 

►    Disappearance of debtor’s business

 

►    Failure of repeated attempt to collect the debt

 

►    All of the given options

 

 

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

 

Which of the following is CORRECT for Doubtful Debt?

 

 

 

►    It is shown in balance sheet

 

►    It is a definite loss to the business

 

►    It is not shown in balance sheet

 

►    No provision is necessary for it

 

 

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

 

Which of the following option is TRUE about the characteristic(s) of Bad Debt?

 

 

 

 

 

 

►    It is a definite loss to the business

 

►    It is not shown in Balance Sheet

 

►    No provision is necessary for it

 

►    All of the given options

 

 

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

 

Which one of the following transactions will cause the balance in Mr. Terry’s Cash Book to be greater than his Bank Statement balance?

 

►    A cheque is drawn but not yet presented at the bank for payment

 

►    The bank has not yet notified to Mr. Terry about a dishonoured cheque

 

►    A credit transfer into Terry’s Bank Account

 

►    A cheque payment of Rs.101 is recorded in the Cash Book as Rs.110

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

 

Upon checking the Bank Statement against the Cash Book by Mr. A, It was discovered that an amount of Rs.120 for dividend from XYZ Co. had not been entered in the Cash Book. Which of the following entry should be recorded to rectify the mistake?

 

►    Bank Account(Dr.) and Dividend Account (Cr.)

 

►    XYZ Co. Account (Dr.) and Bank Account (Cr.)

 

►    Dividend Account (Dr.) and Bank Account (Cr.)

 

►    Bank Account (Dr.) and XYZ Co. Account (Cr.) doubted

 

 

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

A

 

Bank Reconciliation Statement is prepared to:

 

 

 

► Ascertain that the difference between the Cash Book balance and the Bank Statement balance has been accounted for

 

 

►    Correct errors in the Cash Book or errors in the Bank Statement

 

►    Amend the balance of the Bank Statement of the firm

 

►    Amend the balance in the Cash Book of the firm

 

 

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

 

Firms charge depreciation each year:

 

 

 

►    To ensure there is enough money in the firm to replace the asset

 

►    To spread the cost of the asset over its working life

 

►    To reduce the profit and thus reduce the dividends they can pay to share holders

 

►    Because the law states they must be reduced

 

 

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

 

Which one of the following is NOT true about revenue expenditure?

 

 

 

►    These are the running expenses of the business

 

►    They improve the financial position of the business

 

►    They reduce the profit of the concern

 

►    They do not appear in the balance sheet

 

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

The

 

amount of depreciation charged on machinery will be debited to:

 

 

 

 

► Machinery account

 

►    Depreciation account

 

►    Cash account

 

►    Capital account

 

 

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

In

 

cost of goods sold statement, the ‘cost of material consumed’ is equal to:

 

 

 

►    Opening raw material inventory + Purchases – Ending raw material inventory

 

►    Opening raw material inventory – Purchases + Ending raw material inventory

 

►    Ending raw material inventory + Opening raw material inventory – Purchases

 

►    Ending raw material inventory + Opening raw material inventory + Purchases

 

 

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

 

Which of the following particulars are included in the specimen of a bank receipt voucher?

 

4)    Name of the organization

 

5)    Bank code

 

6)      Date of transaction

 

 

►    (1) & (2) only

 

►    (1) & (3) only

 

►    (2) & (3) only

 

►    (1), (2) & (3)

 

 

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

If the cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs.20,000 during the year. What would be the Net Profit?

 

 

 

 

 

 

 

►    Rs.15,000

 

►    Rs. 35,000

 

►    Rs. 55,000

 

►    Rs. 60,000

 

 

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

The

 

return of goods by a customer should be debited to:

 

 

 

►    Customer’s account

 

►    Sales return account

 

►    Goods account

 

►    Accounts receivable

 

 

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

Mr.

 

A provided the following information from his books of accounts at the end of the month.

 

 

 

Particulars

Rs.

Cash

100

Accounts Receivable

500

Accounts Payable

200

Bank Loans

1,000

 

Based on the information provided, what are Mr. As total liabilities?

 

 

 

 

 

 

►    Rs.200

 

►    Rs. 900

 

►    Rs. 1200

 

►    Rs. 1700

 

 

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

 

Which of the following shows the categories of assets in a Balance Sheet?

 

 

 

 

 

 

►    Current assets, Long term assets and Accounts payable

 

►    Current assets, Long term assets and Fixed assets

 

►    Current assets, Quick assets and Business debts

 

►    Current assets, Fixed assets and Deferred cost

 

 

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:

 

 

 

►    Income Statement

 

►    Balance Sheet

 

►    Trial Balance

 

►    Cash Book

 

 

 

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

The

 

original book of entry, in which all vouchers are first recorded, is called:

 

 

 

 

 

 

►    General Journal

 

►    General Ledger

 

►    Trial Balance

 

►    Balance Sheet

 

 

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

 

Commercial Accounting is based on:

 

►    Single entry book keeping

 

►    Double entry book keeping

 

►    Both single and double entry book keeping

 

►    Cash basis of book keeping

 

 

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

 

Double entry accounting system includes:

 

 

 

 

 

 

►    Accrual accounting only

 

►    Cash accounting only

 

►    Both cash and accrual accounting

 

 

► None of the given options

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

An

 

accounting system is used by a business to:

 

►    Analyze transactions

 

►    Handle routine book-keeping tasks

 

►    Structure information

 

►    All of the given options

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

The

 

estimation of expenses and revenues for future is called:

 

 

 

►    Budgeting

 

►    Costing

 

►    Management

 

►    Auditing

 

 

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

 

Shares for which amount is paid by public are called ________ shares.

 

►    Paid up doubted

 

►    Authorized

 

►    Bonus shares

 

 

 

 

 

► All are correct options

 

 

 

 

 

Question No: 51  ( Marks: 5 )

 

 

What is the difference between accounts payable and accounts receivable? Discuss it with the help of example.

 

 

 

Accounts Payable:

 

Liabilities are debts. The person or organization to which the debt is owed is called creditors. All businesses have liabilities; even the most successful companies purchase stocks, supplies, and services on credit. The liabilities arising from such purchases are called accounts payable. For example, if a person A is our creditor and we have to return his money so he it is recorded in our books as accounts payable.

 

Accounts Receivable:

 

Debtors are the person from whom our money is receivable. He has to return our money which he had borrowed from us at sometime. Such money or accounts are called Accounts receivable. For example A person named A is our debtor so he is recorded in our book as the account receivable.

 

 

 

 

 

Question No: 52  ( Marks: 10 )

 

The following Trial Balance was extracted from the books of Naeem & Sons on 31st December, 2007. From this you are required to prepare Balance Sheet as on.

 

 

 

Particulars Debit Credit
Rs. Rs.
Cash

5,200

Accounts Receivable

9,000

Merchandise Inventory on 1.1.2007

6,000

Plant and Machinery

24,000

 

Land and Building

82,000

Furniture and Fixtures

2,600

Capital

136,000

Accounts Payable

3800

Purchases

60,000

Purchases returns and allowances

2,800

Sales

70,000

Sales returns and allowances

4,600

Insurance Prepaid

3,400

Advertisement expenses

4,000

Salaries expenses

12,000

Total

212,600

212,600

Liabilities: Assets
Capital

136000

Accounts receivable

9000

Purchase return and allowances (2800) Merc. Inventory

6000

Plant n machinery

2400

Land n building

82000

Furniture n fixtures

2600

133220

102000

Current liabilities: Current Assets
Accounts payable (3800) Sales 70000
Salaries expenses 12000 Sales return (4600)

 

Advertisement expenses 4000

 

Cash  5200

 

 

 

12200

70600

 

 

 

ADDITIONAL INFORMATION:

 

  • Prepaid insurance on 31st December, 2007 is Rs. 1,400
  • Outstanding salaries Rs. 1,000
  • Depreciation on Plant and Machinery @ 10% p.a.
  • Merchandise inventory on 31st December, 2007 was valued at Rs. 6,000

 

  • Net Loss for the period Rs. 13,000

 

 

 

 

 

 

 

Question No: 53  ( Marks: 10 )

 

 

Prepare Profit & Loss Account for the year ended 31st December, 2007.

 

Particulars

Rs.

Capital

1,20,000

Trade Creditors

17,500

Bills payable

1,000

Sales

6,26,100

Raw material Stocks on 1-1-2007

30,000

Work in process on 1-1-2007

35,600

Finished Goods on 1-1-2007

35,400

Purchases

5,18,000

Carriage inwards

8,900

 

Discount Allowed

750

debtors

16,000

Sales man commission

2,000

Office expenses

2,000

Carriage outwards

1,700

Bad debts

1,400

Salaries

13,000

Direct labor

1,800

FOH

1,100

Plant & Machinery

53,000

Buildings

35,000

Tools

8,650

 

 

Stock as on 31st December, 2007

 

  • Raw material Stocks Rs. 31,000

 

  • Work in process Rs. 25,000

 

  • Finished Goods Rs. 53,900

 

Depreciation Rate:

 

  • Plant & Machinery @ 10% and charged to FOH

 

  • Buildings @ 5% and 40% charged to Administrative expenses and balance will be charged to FOH
  • Tools @ 15% and 30 % charged to FOH and balancing will be charged to administrative expenses

 

Additional data

 

  • Reserve and bad debts is to be created at 5% on debtors.

 

  • 40% of salaries will charge to office and balance to FOH.

 

 

 

 

Question No: 54  ( Marks: 10 )

 

You are required to prepare Debtors control account and Creditor control account from the given data from the books of ABC Co. Ltd for the year 2007.

 

 

 

 

Opening balance

 

Debtors

Rs.1,55,000

Creditors

2,55,000

Sales

Cash

Rs.1,85,000

Credit

2,65,000

Purchases

Cash

Rs.120,000

Credit

200,000

 

 

Other information

 

 

 

Total receipts

Rs.3,50,000

Total payments

2,50,000

 

 

Additional Information

 

 

 

Discount allowed

Rs.20,000

Discount received

15,000

Bad debts written off

20,000

 

 

 

 

 

 

 

 

Creditors control account
Discount received 15000 Opening balance 255000
Total payments 250000 Total purchases 200000
balance 190000
455000 455000
Debtors Control Account
Opening balance 155000
Total sales 185000 Receipts 350000
discount 20000
340000

 

 

Paper No:24

 

Solved by Chanda Rehman & ABr

 

FINALTERM EXAMINATION

 

Fall 2008

 

MGT101- Financial Accounting (Session – 3)

 

Ref

 

Time: 120 min

 

Marks: 85

 

Question No: 1  ( Marks: 1 )  – Please choose one

 

If company has distributable profit is Rs. 4, 90,000. Profit sharing share ratio of Mr. A, Mr. B and Mr. C is 2:3:5 respectively what will be the Profit share for Mr. B in distributable profit.

 

 

 

►    Rs. 98,000

 

►    Rs. 1, 47,000 (Correct)

 

►    Rs. 2, 45,000

 

►    Rs. 3, 43,000

 

 

 

Question No: 2  ( Marks: 1 )  – Please choose one

 

 

What does a credit balance in a partner’s current account represent to a business?

 

 

 

►    Current Assets

 

►    Current Liability

 

►    Long-term liability

 

►    Share of profit (doubted)

 

 

 

Question No: 3  ( Marks: 1 )  – Please choose one

 

 

Which of the following ratio tells about “How a company would repays its loans”

 

 

 

►    Mark up cover ratio doubted

 

►    Acid test ratio

 

►    Current ratio

 

► Debt Equity ratio

 

 

 

Question No: 4  ( Marks: 1 )  – Please choose one

 

 

Which of the following is CORRECT about Gross Profit Ratio?

 

 

 

►    (Gross profit / Net Sales) x 100

 

►    (Gross profit / Operating Income) x 100

 

►    (Gross profit / Sales Return) x 100 (Correct)

 

►    (Gross profit / Net Income) x 100

 

 

 

Question No: 5  ( Marks: 1 )  – Please choose one

 

 

Current ratio may be increased by:

 

 

 

►    Overstating current Assets

 

►    Overstating current Liabilities

 

►    Understating current Assets

 

►    Understating current assets and overstating current liabilities

 

 

 

Question No: 6  ( Marks: 1 )  – Please choose one

 

 

Which of the following is a type of business formed under the Companies Ordinance 1984?

 

 

 

 

►    Sole-Proprietorship

 

►    Partnership

 

►    Joint Stock Company (Correct)

 

► All of the given options

 

 

 

Question No: 7  ( Marks: 1 )  – Please choose one

 

 

When preparing cash flow statements, the repayments of a loan during the year should be included under which of the following heading?

 

►    Operating activities

 

►    Financing activities

 

►    Investing activities

 

►    None of the given options

 

 

 

Question No: 8  ( Marks: 1 )  – Please choose one

 

In

 

cash flow statements, which of the following would appear as an inflow of cash?

 

►    The repayments of a bank loan

 

►    Dividend issue in the current year

 

►    Money received as result of selling fixed assets (Correct)

 

►    The difference between the valuations of old and new fixed assets

 

 

 

Question No: 9  ( Marks: 1 )  – Please choose one

 

 

What are the effects on financial statements, if Rs. 6,000 transfer to general reserve is given in adjustment?

 

 

 

►    It will be treated in Income Statement only

 

►    It will be treated as current liability in balance sheet only

 

►    It will be treated in profit and loss appropriation account only

 

it will be treated in both profit and loss appropriation account and in the balance sheet

 

(Correct)

 

 

 

Question No: 10  ( Marks: 1 )  – Please choose one

 

 

Which of the following is the most important document of the company?

 

►    Memorandum of Association (Correct)

 

►    Articles of Association

 

►    Prospectus

 

►    Annual Report

 

 

 

Question No: 11  ( Marks: 1 )  – Please choose one

 

 

Preliminary Expenses of the company may write off against:

 

►    Share premium account (Correct)

 

►    Share holder account

 

►    Debtors control account

 

►    Creditor control account

 

 

 

Question No: 12  ( Marks: 1 )  – Please choose one

 

 

Which of the following clause/s are discussed in Memorandum of Association of Companies?

 

 

 

►    Name of company

 

►    Place of registered office of company

 

►    Objective of the company

 

►    All of the given options (Correct)

 

 

 

Question No: 13  ( Marks: 1 )  – Please choose one

 

The

 

Joint Stock Company is formed under the Companies Ordinance:

 

►    1984 (Correct)

 

►    I884

 

►    1948

 

►    1965

 

 

 

Question No: 14  ( Marks: 1 )  – Please choose one

 

 

When the capitals are fixed, which of the following account will be debited for drawings made by a partner?

 

 

 

 

 

 

►    Individual Partner’s Current Account

 

►    Partner’s Cash Account

 

►    Partner’s Bank Account

 

►    Partners Capital Account

 

 

 

Question No: 15  ( Marks: 1 )  – Please choose one

 

 

Which of the following account will be debited when the interest on drawings is charged?

 

 

 

►    Partner’s capital account

 

►    Interest account

 

►    Partner’s current account

 

Profit & Loss account doubted

 

 

 

Question No: 16  ( Marks: 1 )  – Please choose one

 

 

Which of the following is CORRECT if depreciation is given in trial balance?

 

►    It means depreciation has already been deducted from concerned asset account

 

►    It will be shown as an expense in income statement only (Correct)

 

►    It will not be deducted from concerned asset in Balance Sheet

 

►    All of the given options are correct

 

 

 

Question No: 17  ( Marks: 1 )  – Please choose one

 

An asset which is NOT easily convertible to cash or not expected to become cash within a period of twelve months is called:

 

 

 

►    Liquid asset

 

►    Current asset

 

►    Fixed asset

 

►    Floating asset

 

 

 

Question No: 18  ( Marks: 1 )  – Please choose one

 

 

Which one of the following is TRUE about provisions?

 

 

 

►    It is necessary to prepare for showing true picture of balance sheet

 

►    It is a reduction from assets

 

►    It is prepared for specific purposes

 

► All of the given options

 

 

 

Question No: 19  ( Marks: 1 )  – Please choose one

 

The

 

Balance Sheet item that represents the resources invested by the owner is known as:

 

►    Accounts Receivable

 

►    Cash

 

►    Note Payable

 

►    Owner’s Equity (Correct)

 

 

 

Question No: 20  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT an operating expense?

 

 

 

►    Salaries and wages expense

 

►    Rent expense

 

►    Interest expense

 

►    Depreciation expense (Correct)

 

 

 

Question No: 21  ( Marks: 1 )  – Please choose one

 

A

 

financial statement that indicates the success or failure of a business, over a period of time is called:

 

 

 

►    A cash flow statement

 

►    A retained earnings statement

 

►    An income statement

 

►    A balance sheet (Correct)

 

 

 

Question No: 22  ( Marks: 1 )  – Please choose one

 

 

Which of the following is the first phase of the typical operating cycle?

 

 

 

►    Receive cash from customers

 

►    Pay cash to suppliers

 

►    Sell goods and services to customers

 

►    Purchase goods and services (Correct)

 

 

 

Question No: 23  ( Marks: 1 )  – Please choose one

 

 

Following information are extracted from books of Mr. XYZ

 

 

 

Particulars

Rs.

Closing value of stock

40,000

Write off Bad debts (given in adjustments)

2,400

Sundry Debtors (given in trial balance)

33,200

Provision is created on Debtors at 10%

 

Identify the Total amount deducted from Sundry debtors.

 

► Rs. 460

 

► Rs. 2,400

 

► Rs. 3,080

 

Rs. 5,480 (Correct)

 

 

 

Question No: 24  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 10% of the sundry debtors are doubtful. Actual bad debts are Rs. 1600. What amount of new provision for doubtful debts will be deducted from Sundry debtors?

 

 

 

►    Rs. 3,600

 

►    Rs. 4,000

 

►    Rs. 1,600

 

►    Rs. 2, 400 (doubted)

 

 

 

Question No: 25  ( Marks: 1 )  – Please choose one

 

 

When one or both aspects of a transaction are recorded in the wrong class or category of account, this is called:

 

 

 

►    Error of principle (Correct)

 

►    Error of omission

 

►    Error of commission

 

►    Error of original entry

 

 

 

Question No: 26  ( Marks: 1 )  – Please choose one

 

 

Which of the following account(s) will be affected, while rectifying the error of sales Rs.100 to Mr. “A” recorded in the purchases book?

 

 

 

 

 

 

►    Sales account

 

►    Purchase account

 

►    A’s account and Sales account

 

►    Sales account, purchase account and A’s account (Correct)

 

 

 

Question No: 27  ( Marks: 1 )  – Please choose one

 

A

 

receipt of cash Rs. 10,000 from Mr. Bilal is recorded as Rs. 1,000. What amount will be adjusted in rectifying entry?

 

 

 

►    Rs. 1,000

 

►    Rs. 9,000 (Correct)

 

►    Rs. 10,000

 

►    Rs. 11,000

 

 

 

Question No: 28  ( Marks: 1 )  – Please choose one

 

 

_____ are committed in those cases where proper distinction between revenue and capital items is not made.

 

 

 

►    Error of principle

 

►    Error of omission

 

►    Error of commission (Correct)

 

►    Error of original entry

 

 

 

Question No: 29  ( Marks: 1 )  – Please choose one

 

 

Which of the following is (are) benefit/s of subsidiary ledger accounts to business?

 

 

 

 

► It tells about customer attitude of payments

 

►    It can be checked against the control account to pick up recording errors

 

►    It tells about the complete history of transactions of business client

 

►    All of the given options (Correct)

 

 

 

Question No: 30  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT included in Debtors Control Account?

 

 

 

►    Cash sales (Correct)

 

►    Credit sales

 

►    Bills receivable

 

►    Discount allowed

 

 

 

Question No: 31  ( Marks: 1 )  – Please choose one

 

 

Which of the following is/are the item/s of a Control Account?

 

►    Credit sale only

 

►    Cash sale only

 

►    Credit purchase only

 

►    Both Credit sales and Credit purchase

 

 

 

Question No: 32  ( Marks: 1 )  – Please choose one

 

It is supposed that on 31st December, 2007, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. Actual bad debts are Rs. 1600. What amount of new provision for doubtful debts will be credited in profit & loss account.

 

 

 

 

 

► Rs. 3,600

 

►    Rs. 2,000

 

►    Rs. 1,600

 

►    Rs. 400 (doubted)

 

 

 

Question No: 33  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT a function of bank reconciliation statement?

 

►    To reconcile the difference between the cash book and the bank statement

 

►    To check for errors in balance sheet (Correct)

 

►    To update omitted entries into the cash book

 

►    To update omitted entries into the bank statement

 

 

 

Question No: 34  ( Marks: 1 )  – Please choose one

 

 

Which one of the following transactions will cause the balance in Mr. Terry’s Cash Book to be greater than his Bank Statement balance?

 

►    A cheque is drawn but not yet presented at the bank for payment

 

►    The bank has not yet notified to Mr. Terry about a dishonoured cheque

 

►    A credit transfer into Terry’s Bank Account

 

►    A cheque payment of Rs.101 is recorded in the Cash Book as Rs.110

 

 

 

Question No: 35  ( Marks: 1 )  – Please choose one

 

The

 

following balance and discrepancies were found on 31 March 2008:

 

 

 

Particulars

Rs.

Cash book balance (Dr)

5 000

 

Unpresented cheques

1 000

Uncredited cheques

500

 

 

The Bank Statement balance on 31 March 2008 should be:

 

►    Rs. 5 500 (Dr)

 

►    Rs. 5 500 (Cr)

 

►    Rs. 4 500 (Dr)

 

►    Rs. 4 500 (Cr) (Correct)

 

 

 

Question No: 36  ( Marks: 1 )  – Please choose one

 

 

Which of the following is NOT a characteristic of Joint Stock Company?

 

 

 

►    Separate Legal Entity

 

►    Limited Liability

 

►    Easy Formation (Correct)

 

►    Common Seal

 

 

 

Question No: 37  ( Marks: 1 )  – Please choose one

 

 

Consider the following data:

 

 

 

Particulars

Rs.

Assets

1,98,000

Owner’s equity

95,000

Liabilities

?

 

 

 

►    Rs. 49,000

 

►    Rs. 55,000

 

►    Rs. 1, 25,000

 

►    Rs. 1, 03,000 (Correct)

 

 

 

Question No: 38  ( Marks: 1 )  – Please choose one

 

The

 

basic purpose of depreciation is to achieve the:

 

►    Matching principle (Correct)

 

►    Dual aspect principle

 

►    Separate entity concept

 

►    Money measurement concept

 

 

 

Question No: 39  ( Marks: 1 )  – Please choose one

 

 

Accountancy covers which of the following area(s):

 

 

 

►    Book-keeping

 

►    Accounting

 

►    Auditing

 

►    All of the given options (Correct)

 

 

 

Question No: 40  ( Marks: 1 )  – Please choose one

 

Bank

 

Reconciliation Statement is prepared by:

 

►    Bankers

 

►    Accountant of the business (Correct)

 

►    Statutory auditor

 

►    Manger

 

 

 

Question No: 41  ( Marks: 1 )  – Please choose one

 

 

Under the reducing balance method, deprecation is calculated on:

 

 

 

►    Scrap value of an asset

 

►    Original cost of an asset

 

►    Book value of an asset (Correct)

 

►    Fair value of an asset

 

 

 

Question No: 42  ( Marks: 1 )  – Please choose one

 

The

 

products that are ready for sale are known as:

 

 

 

 

 

 

►    Raw material

 

►    Work in process

 

►    Finished goods (Correct)

 

►    Closing stock

 

 

 

Question No: 43  ( Marks: 1 )  – Please choose one

 

 

 

 

Which of the following item appears in Trading Account of a business?

 

 

 

 

 

 

►    Interest expenses

 

►    Wages and salaries (Correct)

 

►    Depreciation expenses

 

►    Discount Allowed

 

 

 

Question No: 44  ( Marks: 1 )  – Please choose one

 

 

Which of the following financial statement DO NOT show the financial health of a business at a specific date?

 

 

 

►    Profit and loss account (Correct)

 

►    Balance sheet

 

►    Statement of financial position

 

►    All of the given options

 

 

 

Question No: 45  ( Marks: 1 )  – Please choose one

 

 

Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle though cheque?

 

 

 

 

 

 

►    Vehicle account

 

►    Cash account

 

►    Business account

 

►    Bank account (Correct)

 

 

 

Question No: 46  ( Marks: 1 )  – Please choose one

 

 

Gross Profit > Operating Expenses=?

 

 

 

 

 

 

►    Net Profit (Correct)

 

►    Cost of Goods Sold

 

►    Net Loss

 

►    Gross Loss

 

 

 

Question No: 47  ( Marks: 1 )  – Please choose one

 

Bank

 

book is part of:

 

 

 

►    Voucher

 

►    General Journal

 

►    General Ledger (Correct)

 

►    Trial Balance

 

 

 

Question No: 48  ( Marks: 1 )  – Please choose one

 

 

What would be the affect on the components of the accounting equation, if goods are purchased on cash?

 

 

 

►    Increase in cash and decrease in equity

 

►    Increase in cash and increase in goods

 

►    Increase in goods and decrease in cash (Correct)

 

►    Increase in equipment and increase in equity

 

 

 

Question No: 49  ( Marks: 1 )  – Please choose one

 

We

 

can say that the business is in profit, when:

 

 

 

 

 

 

►    Assets exceed Liabilities

 

►    Income exceeds Expenditure (Correct)

 

►    Income exceeds Liabilities

 

►    Assets exceed Expenditure

 

 

 

Question No: 50  ( Marks: 1 )  – Please choose one

 

A business event which can be measured in terms of money and must be recorded in books of accounts is called:

 

►    Information

 

►    Condition

 

►    Transaction (Correct)

 

►    Record

 

 

 

Question No: 51  ( Marks: 5 )

 

 

Calculate Net income with the help of given date for the year 2007 and also show complete working to support your answer.

 

Raw material Stocks on 1-1-2007 Rs. 30,000

 

Work in process on 1-1-2007

35,600

Finished Goods on 1-1-2007

35,400

Raw material Stocks 31-12-2007

Rs. 31,000

Work in process 31-12-2007

25,000

Finished Goods 31-12-2007

53,900

Total factory Cost

543,339

 

 

Additional data

 

v  Other income for the year is Rs. 5,000.

 

v Operating expenses for the year Rs. 15,000. v Sale for the year Rs. 1,000,000.

 

 

 

 

Question No: 52  ( Marks: 10 )

 

The following Trial Balance was extracted from the books of Naeem & Sons on 31st December, 2007. From this you are required to prepare an Income Statement for the year ended on 31st December, 2007,

 

 

 

Debit Credit
Particulars
Rs. Rs.
Cash

5,000

Accounts Receivable

9,000

Merchandise Inventory on 1.1.2007

6,000

Plant and Machinery

24,000

Land and Building

82,000

Furniture and Fixtures

2,600

 

Capital

136,000

Accounts Payable

3800

Purchases

60,000

Purchases returns and allowances

2,800

Sales

70,000

Sales returns and allowances

4,600

Insurance Prepaid

3,400

Advertisement expenses

4,000

Salaries expenses

12,000

Total

212,600

212,600

 

 

ADDITIONAL INFORMATION:

 

  • Prepaid insurance on 31st December, 2007 is Rs. 1,400
  • Outstanding salaries Rs. 1,000
  • Depreciation on Plant and Machinery @ 10% p.a.
  • Merchandise inventory on 31st December, 2007 was valued at Rs. 6,000

 

 

Answer:

 

Trading Account for the year ending
31.12.2007
Opening stock

6000

Sales

70000

Less :
Sales
Return

4600

Purchase

60000

65400

Less Return

2800

57200

 

Closing Stock

6000

Gross Profit

8200

71400

71400

Profit & Loss Account for the year
ending 31.12.2007
Gross
Advertisement Exp

4000

Profit

8200

Salaries

12000

Add: Outstanding

1000

13000

Depreciation
Plant & Mach

2400

Insurance

3400

1400

2000

Net Loss

13200

19400

21400

 

 

 

Balance Sheet as on 31.12.2007

 

 

 

Accouts Receivable

9000

Capital

136000

Less :Net
Loss

13200

Cash

5000

122800

Plant & Mach

24000

Accounts Payable

3800

Less: Depr

2400

Outstanding

21600

salaries

1000

Land & Building

82000

Furniture

2600

Prepaid Insurance

1400

Closing Stock

6000

 

 

 

 

 

 

127600                                                                                                                                          127600

 

 

 

 

 

 

 

 

 

Question No: 53  ( Marks: 10 )

 

 

Prepare Profit and Loss Account for the year ending 31st December 2007 from the Trial Balance and adjustments of MS Company given below:

 

 

 

Debit Credit
Particulars
Rs. Rs.
Drawings

14,000

Capital Account

80,000

Opening Stock

55,000

Purchases

485,000

Sales

610,000

Sundry Debtors

80,000

Sundry Creditors

60,500

Sales Returns

5,000

Carriage Inwards

6,000

Salaries

28,000

Rent, Rates, Taxes

15,000

Insurance

4,000

Machinery

50,000

Furniture

5,000

Cash in hand

3,500

Total

750,500

750,500

 

 

Adjustments:

 

  • Depreciate machinery and furniture @20%p.a.
  • Outstanding Salaries Rs. 2,000
  • Insurance paid in advance Rs. 500
    • Maintain @5% reserve for doubtful debts on debtors.
    • Closing Stock was valued at Rs. 60,000

 

 

 

Answer:

 

Trading Account for the year ending
31.12.2007
Opening stock

55000

Sales

610000

Less : Sales
Return

5000

Purchase

485000

605000

Caririage Inward

6000

Closing
Stock

60000

Gross Profit

119000

665000

665000

Profit & Loss Account for the year
ending 31.12.2007
Salaries

28000

Gross Profit

119000

Add: Outstanding

2000

30000

Rent, Rates, Taxes

15000

Insurance

4000

Less :Advance

500

 

3500

Depreciation
Machinery

10000

Furniture

1000

11000

Provision on Doubtful Debts

4000

Net Profit

55500

119000

119000

 

 

NOTE: PLEASE CONSIDER ALL ENTRIES ON LEFT SIDE AS ON RIGHT HAND SIDE AND VICE VERSA. JUST SHOWN BY MISTAKE. I HOPE YOU CONSIDER MY REQUEST DUE TO SHORATGE OF TIME.

 

 

 

Question No: 54  ( Marks: 10 )

 

 

What is the difference between public and private company?

 

 

 

Answer:

 

Private Limited Company

 

¬  Number of members in a private limited company varies from 2 to 50.

 

¬  Any 2 members can subscribe their names in memorandum and articles of association along with other requirements of the companies’ ordinance 1984. They can also apply to security exchange commission for company’s registration.

 

¬  The shareholders of the private limited company elect two members of the company as Directors. These directors form a board of directors to run the affairs of the company.

¬  The head of board of directors is called chief executive.

¬  Private limited company can not offer its shares to general public.

 

¬  In case a investor decides to sell his/her/her shares, his/her shares are first offered to existing shareholders. If all existing shareholders decide not to buy these shares, then an outsider investor can buy.

 

¬  Words and digression “(Private) Limited” are added at the end of the name of a private limited company.

 

 

Public Limited Company

 

¬  Least number of members in a public limited company is 7 with no upper limit in number of members.

 

¬  Any 7members can subscribe their names in memorandum and articles of association along with other requirements of the companies’ ordinance 1984. They can also apply to security exchange commission for company’s registration.

 

¬  The shareholders of the public limited company elect seven members of the company as Directors and these directors form a board of directors to run the daily affairs.

 

¬  The head of board of directors is called Chief Executive.

¬  Public limited company can offer its shares to general public at large.

¬  Word “Limited” is added at the end of the name of a public limited company.

 

¬  Each subscriber of the memorandum shall write opposite to his name, the number of shares held by him/her.

 

 

On top of that there are two types of public limited company:

 

  1. Listed Company
  2. Non Listed Company

 

 

LISTED COMPANY

 

Listed company is the one whose shares are quoted and traded on stock exchange. It is also called quoted company.

 

 

 

NON LISTED COMPANY

 

Non listed company is the one whose shares are not quoted or traded.

 

 

VU MGT101- Financial Accounting (Session – 4) FinalTerm Solved Unsolved Past Papers Fall 2009

VU CS101- Introduction to Computing (Session – 4) Finalterm solved unsolved past papers Spring 2009

VU CS101- Introduction To Computing (Session – 4) Finalterm Solved Unsolved Past Papers Spring 2009

FINALTERM  EXAMINATION

Spring 2009

CS101- Introduction to Computing (Session – 4)

Ref No: 640580

Time: 120 min

Marks: 75

Student Info
 StudentID:   MC090201003
 Center:   OPKST
 ExamDate:   7/1/2009 12:00:00 AM

 

For Teacher’s Use Only

    Q No.

1

2

3

4

5

6

7

8

Total

Marks

 

 

 

 

 

 

 

 

 

Q No.

9

10

11

12

13

14

15

16

 

Marks

 

 

 

 

 

 

 

 

 

Q No.

17

18

19

20

21

22

23

24

 

Marks

 

 

 

 

 

 

 

 

 

Q No.

25

26

27

28

29

30

31

32

 

Marks

 

 

 

 

 

 

 

 

 

Q No.

33

34

35

36

37

38

39

40

 

Marks

 

 

 

 

 

 

 

 

 

Q No.

41

 

 

 

 

 

 

 

 

Marks

 

 

 

 

 

 

 

 

 

 

 

 

 

Question No: 1    ( Marks: 1 )    – Please choose one

 Which of the following hardware component of a computer can also be called as engine?

► Bus

► Storage

► Memory

► Processor

 

Question No: 2    ( Marks: 1 )    – Please choose one

 TCP stands for ___________.

► Total communication protocol

► Transmission control protocol

► Transfer control protocol

► Transfer collection protocol

 

Question No: 3    ( Marks: 1 )    – Please choose one

 __________ breaks down the message to be sent over the internet into packets.

 

► FTP

► HTTP

► TCP

► IP

 

Question No: 4    ( Marks: 1 )    – Please choose one

 A variable can be _________ in scope.

► Local

► Global

► Either local or global

► None of the given options

 

Question No: 5    ( Marks: 1 )    – Please choose one

 A protocol used for receiving email messages is called ____________.

► URL

► Telnet

► POP3

► SMTP

 

Question No: 6    ( Marks: 1 )    – Please choose one

 A function is also called __________.

► Sub-program

► Procedure

► Sub-routine

► All of the given option

 

Question No: 7    ( Marks: 1 )    – Please choose one

 Capturing events and responding to them is called __________.

► Function Handling

► Event Handling

► Event Procedure

► All of the given option

 

Question No: 8    ( Marks: 1 )    – Please choose one

 Which one of the following is NOT a primary color?

► Red

► Green

► Yellow

► Blue

 

Question No: 9    ( Marks: 1 )    – Please choose one

 __________ are those programs in which the flow of the program is determined by the user’s actions (mouse clicks, key presses) or messages from other programs.

► Event called programs

► Event processed programs

► Event driven programs

► Event declared programs

 

Question No: 10    ( Marks: 1 )    – Please choose one

 a = Math.ceil(12.01)

 

What will be the value of a ?

 

► 12

► 13

► 12.0

► 13.01

 

Question No: 11    ( Marks: 1 )    – Please choose one

 Event handlers are placed in the ___________ portion of a Web page as attributes in HTML tags.

► HEAD

► BODY

► SCRIPT

► TITLE

 

Question No: 12    ( Marks: 1 )    – Please choose one

 _________ can be used for entering, editing, or viewing data, one record at a time.

► Queries

► Forms

► Reports

► None of the given options

 

Question No: 13    ( Marks: 1 )    – Please choose one

 random() function returns a randomly-selected, floating-point number between ____________.

► 0 and 1

► 0 and 10

► 0 and -10

► 0 and  -1

 

Question No: 14    ( Marks: 1 )    – Please choose one

 The organizations are learning that business can be done in a more effective manner if emphasis is placed upon ___________.

► Cooperation

► Shared responsibility

► Networking

► All of the given options

 

Question No: 15    ( Marks: 1 )    – Please choose one

 In relational database, data store in the form of _____________.

► Tables

► Rows

► Columns

► None of the given options

 

Question No: 16    ( Marks: 1 )    – Please choose one

 Spies of one business monitoring the network traffic of their competitors’ ___________.

► Industrial Intelligence

► Industrial Espionage

► Industrial Spying

► Industrial Surveillance

 

Question No: 17    ( Marks: 1 )    – Please choose one

 _____________ waits for some time and then launch a function.

► Timeout( )

► setTimeout( )

► setTime( )

► setTimeIn( )

 

Question No: 18    ( Marks: 1 )    – Please choose one

 _______________ based communication allows business entities to coordinate the activities of their globally spread units with greater accuracy.

► Intranet

► Internet

► Home

► LAN

 

Question No: 19    ( Marks: 1 )    – Please choose one

 The key responsibilities of a project manager is _____________.

► Planning and tracking of the project

► Arranging of the appropriate resources

► Client relationship management

► All of the given options

 

Question No: 20    ( Marks: 1 )    – Please choose one

 _____________ team consists on the sharpest technical minds in the company.

► Architecture

► Business Development

► Configuration Management

► Developer

 

Question No: 21    ( Marks: 1 )    – Please choose one

 Smart editors can automatically color different parts of statements in different colors e.g. comments in ____________ color.

► Green

► Grey

► Blue

► Red

 

Question No: 22    ( Marks: 1 )    – Please choose one

 A collection of data organized in such a way that the computer can quickly search for a desired data item is known as :

► Retrieving

► Database

► Information

► DBMS

 

Question No: 23    ( Marks: 1 )    – Please choose one

 Deep Blue was the name of

► computer

► human

► city

► game

 

Question No: 24    ( Marks: 1 )    – Please choose one

 Information available on the web is

► mostly free of cost

► costly

► very cheap

► of no use

 

Question No: 25    ( Marks: 1 )    – Please choose one

 Which one is correct?

 

► <BODY></BODY>

► <body></body>

► Both <BODY></BODY> and <body></body>

► <BODY/>

 

Question No: 26    ( Marks: 1 )    – Please choose one

 _________ is the best known builder for supercomputers.

► Sun

► Cray Research

► Microsoft

► Apple

 

Question No: 27    ( Marks: 1 )    – Please choose one

 Which one is the example of spreadsheet software ?

► MS Word

► MS PowerPoint

► MS Excel

► MS Access

 

Question No: 28    ( Marks: 1 )    – Please choose one

 Currently the BlueRay DVD can store more than ________ of data.

► 10 GB

► 100 GB

► 50 GB

► 150 GB

 

Question No: 29    ( Marks: 1 )    – Please choose one

 Blue Pacific is a name of ______ computer.

► Mini

► Desktop

► Micro

► Super

 

Question No: 30    ( Marks: 1 )    – Please choose one

 _________________ are powerful pieces of hardware, but not much useful on their own.

► Microcontrollers

► Microprocessors

► Integrated circuits

► Ports

 

Question No: 31    ( Marks: 1 )

 In programming, what is a loop?

In computer science a for loop is a programming language statement which allows code to be repeatedly executed. A for loop is classified as an iteration statement.

 

Question No: 32    ( Marks: 1 )

 What are the other names of function? Any one.

Routine , procedure , sub prograam

 

Question No: 33    ( Marks: 2 )

 How JavaScript Arrays are heterogeneous ?

Arrays are heterogeneous in java script because at the same time stimultanously they can hold elements of multiple data types

 

Question No: 34    ( Marks: 2 )

 What is the database?

Data base is a collection of  organized data in a proper way that computer can quickly search for any desired data item , its an easy way of allowing of manipulation of data,they are design in such a way that access to any desired data can be identified and reached quickly and easy , they are generally consist of collection of interrelated files

 

Question No: 35    ( Marks: 3 )

 Differentiate between LAN and WAN with one example of each.

Lan is a local area network where as wan is a wide area network

Lan can be used in a specific areas with limited computers where as wan can be used on computers shared by large distances

For example lan can be used on pc s or an organization located in one building but wan can be used on large scales like banks all over or in any Large communication systems

 

Question No: 36    ( Marks: 3 )

 What are Trojan Horses ?

Trojen horses are  a kind of cyber crime , they are v harmful to computer because they are stand alone programme and the look like what they are not like any thing amusing or not harmless like games..

 

Question No: 37    ( Marks: 3 )

 Elaborate Rester Graphics with examples.

A raster graphics image, digital image, or bitmap, is a data file or structure representing a generally rectangular grid of pixels, or points of color, on a computer monitor, paper, or other display device.

 

To illustrate the matter further – here’s the letter “J”:

J

Look closely at it… Take a magnifying glass to it if you like. You see a “J”, the computer sees something more like this, where ‘.’ represents a zero and ‘X’ represents a one:

 

….X

….X

….X

….X

….X

….X

….X

X…X

X…X

.XXX.

 

 

Where you see a zero, the computer instructs its video hardware to paint the current background color. A one calls for the current foreground color. Yes, it is actually a bit more complicated, but it all basically boils down to one bit or the other making a distinction

between the colors of adjacent pixels, which together form an image.

 

Question No: 38    ( Marks: 5 )

 What are the important properties, methods and event handlers of image object?

The primary use of the image object is to download an image into the cache before it is needed to display , image object can be used to create different kinds of animations or to display one of several images based on the desired requirement , in java script image object can be used to display the required pre loaded image

Properties of image object is : height , width ,hspace ,vspace , src , name border etc

Methods :none

Event handlers:on aboart , onload, onerror etc

 

Question No: 39    ( Marks: 5 )

 Write the JavaScript code for the Function SumOddNumbers(maxNumber) that can add non-negative odd numbers up to maxNumber and return their sum.

 

Function sum odd numbers(maxnumber){var sum=0;

For(i=0; <maxNumbers;I++)

{

{
if(i / 2 == 1 || i == 1)
sum += i;
}

return sum;

}

 

 

Question No: 40    ( Marks: 10 )

 Write a note on :

  • Coding guidelines
  • Guidelines for developing short programs.
  • Coding guidelines
  • • Always use semicolons to end statements
  • • Indent blocks of code (2 to 5 spaces)
  • • Identifiers
  • • Use the camel back scheme
  • • Variables: nouns
  • • Functions: verbs
  • • Comment Liberally
  • • Make them descriptive but concise
  •  

   Gudelines for developing short programs.

  • • Read and understand the problem
  • • Do  you have all the required data?
  • • No: Get it
  • • Else assume it. State it explicitly
  • • Do the design

 

Question No: 41    ( Marks: 10 )

 write a note on each of the following:

a. Vector or Object-Oriented Graphics:

b. Bit-Mapped or Raster Graphics:

A:In Vector or object oriented graphic everything drawn is treated as object. objects retain their identity after they are drawon. these objects can later be moved, stretched, duplicated, deleted,etc. they are resolution independent and have relatively small file size. the examples are: swf, svg, wmf, ps

brass_ibrahim: Vector graphics is the use of geometrical primitives such as points, lines, curves, and shapes or polygon(s), which are all based on mathematical equations, to represent images in computer graphics.

brass_ibrahim: The term “vector graphics” is mainly used today in the context of two-dimensional computer graphics Virtually all modern 3D rendering is done using extensions of 2D vector graphics techniques .Virtually all modern 3D rendering is done using extensions of 2D vector graphics techniques

B:Bit-Mapped or Raster Graphics:

Treats everything that is drawn as a bit-map

If an object is drawn on top of another, it is difficult to move just one of them while

leaving the other untouched

Changing the resolution often requires considerable touch-up work

Relatively large file size

Examples: gif, jpg, bmp

masood.tariq: Bit-Mapped or Raster Graphics:

Treats everything that is drawn as a bit-map

If an object is drawn on top of another, it is difficult to move just one of them while

leaving the other untouched

Changing the resolution often requires considerable touch-up work

Relatively large file size

Examples: gif, jpg, bmp

 

 

 

 

 

 

 

 

28 objectives were from old papers out of 30.

 

What is Array?                                                     Marks 2

what is computer prrofessional?                          Marks 2

define onLoad and onUnload?                            Marks 2

waht is time bomb?                                              Marks 2

what is bandwidth?                                              Marks 2

“while” loop is more preferable than “For” loop?   Marks 3

sementic web and present web?                          Marks 3

can we replace a human doctor by Expert system? Marks 5

Difference Internt and intranet?                              Marks 5

ways of navigation Heuristics?                               Marks 5

event handling?

 

Define network organization and its advantages?       Marks 10

 

Coding Guidline and guidlines for short programs?     Marks 10

 

Dewelop a web page that displays six thumbnails

images. A main image should be changed to a large

version of thumbnail as soon as the mouse moves

over the thumbnail. Write complete html and java script? Marks 10

 

characteristics of Internet?                                        Marks 10

 

Profile and responsibilities of Team Leader?            Marks 10

 

due to computer how many jobs are available and

how many jobs are eliminated?                                 Marks

 

 

 

Today was my CS101 Paper. The Subjective Quizzes are as under:

 

1. How many members are in operational team and what there key resposibilities

 

2. What is Computer Screen?

 

3. What are weaknesses of the web?

 

4. Characteristics of Internet (Any Five)?

 

5. Breifly describe

Telnet

VoIP

Instant Messaging

FTP

IP/TCP

6. Describe the organizational structure?

 

7. What is image process

 

8. Pixel?

 

 

Today I had CS 101 Paper.There were 41 questions.30 objective and 11 descriptive.Few of the questions were:

3 attributes of event handler

Difference between Internet and Intranet

Function

Commonsense to avoid viruses and explain antivirus

TCP/IP

An attack on Yahoo servers

Spreadsheets

Codes for uploading file

Hierarchy in an organization

Team lead

COO

Developer

Businessess monitoring their employees

‘+’ operator

Image in Javascript

 

 

VU CS101- Introduction To Computing (Session – 4) Finalterm Solved Unsolved Past Papers Spring 2009

Education In Pakistan © 2016