Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting (CFA510):2009 - Question Paper
Monday, 17 June 2013 10:55Web
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(a) Rs.12,000 (loss) and Rs.24,000
(b) Rs.16,800 (loss) and Rs.19,200
(c) Rs.26,400 (loss) and Rs.9,600
(d) Rs.36,000 (loss) and nil
(e) Rs.16,800 (profit) and Rs.19,200. (2marks)
48.A machine acquired by a company at a price of Rs.13,000 was being depreciated to its scrap value of
Rs.1,000, on straight line basis over eight years. When three more years of the useful life of the machine were
left, the company re-estimates the life of the machine in a more realistic manner and shows that its
total life span shall be for 10 years and there shall be no scrap value. The amount of accumulated
depreciation till date (before revision) was
(a) Rs.6,000
(b) Rs.4,500
(c) Rs.7,500
(d) Rs.7,200
(e) Rs.6,500. (1 mark)
49.Profit on revaluation of fixed assets should be transferred to
(a) General Reserve account
(b) Capital Reserve account
(c) Suspense account
(d) Profit and Loss account
(e) Profit and Loss Appropriation account. (1 mark)
50.Which of the subsequent is not a feature of purchased goodwill?
(a) It arises on a business acquisition
(b) It is demonstrated by a purchase transaction
(c) It is recognized in the financial statements
(d) Its evaluation depends on the subjective judgment of the valuer
(e) Price paid for goodwill depends on the purchaser’s expectation of future profits. (1 mark)
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51.Following is the Balance Sheet of Binjusaria Ltd., as on March 31, 2008:
Liabilities Rs. Assets Rs.
Share Capital Goodwill 32,000
15,000 Equity shares of Rs.10 every 1,50,000 Land & Building 1,20,000
General Reserve 1,70,000 Plant & Machinery 1,30,000
Profit and Loss account Investment 50,000
Balance on April 1, 2007 Rs.10,000 Stock 50,000
Profit for the year 2007-08 Rs.76,000 86,000 Debtors 45,000
Sundry Creditors 54,000 Cash at Bank 33,000
Provision for taxation 30,000 Discount on problem of
shares
30,000
4,90,000 4,90,000
The company revalued its assets as follows:
? Land and Building increased by 40% of the book value.
? Plant and Machinery increased by 35% of the book value.
? Investment increased by 20% of the book value.
? Current assets are to be recognized at their book value.
| Earning: Approval pending. |
