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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11.Which of the subsequent statements is false?
(a) Balancing of an account means to make the total of amounts column appearing on the
debit and credit side equal to every other
(b) If the debit side total is greater than the credit side total, the difference ranging from the 2 sides is
known as debit balance
(c) If the debit side total is greater than the credit side total, the account is ruled off by
placing the difference on the credit side saying ‘By balance carried down’
(d) If the credit side total is greater than the debit side total, the account is ruled off by
placing the difference on the debit side saying ‘To balance carried down’
(e) Nominal accounts are balanced by placing the difference on the lesser side saying ‘To’ or ‘By’
balance carried down during finalization of accounts. (1 mark)
12.The balance in the creditors account of Raccoon Ltd., as on December 1, 2008 was Rs.34,000. During the
month a sum of Rs.18,500 was paid to the creditors and goods purchased on credit from them amounted
to Rs.24,700. Purchase returns were Rs.800. The creditors allowed a sum of Rs.480 as cash discount. A
bill for Rs.800 accepted earlier by the company in favour of a creditor was dishonored on December 20,
2008. The balance of creditors account as on December 31, 2008 was
(a) Rs.40,200
(b) Rs.39,420
(c) Rs.39,720
(d) Rs.40,520
(e) Rs.40,320. (1 mark)
13.The total of debit column of trial balance of a company is Rs.4,90,000 and that of the credit column is
Rs.5,45,800. Subsequently, the subsequent mistakes are discovered:
Particulars
Correct
Amount (Rs.)
Amount which appears in trial
balance (Rs.)
Opening stock 81,000 81,200
Advertisement expenses 30,000 30,000 (credit column)
Interest from investments 72,000 60,000
Sundry creditors 1,52,000 1,60,000
The total of the accurate trial balance should be
(a) Rs.5,49,800
(b) Rs.5,19,800
(c) Rs.5,50,200
(d) Rs.5,69,800
(e) Rs.5,65,600. (1 mark)
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14.Manju obtained that an item of a purchase of goods worth Rs.5,283 was entered in the sales day journal as
Rs.3,528 and posted to the credit of supplier’s account as Rs.5,013.The rectification entry to be passed is
| Earning: Approval pending. |
