Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting (CFA510):2009 - Question Paper

profit will be Rs.880 crores i.e., Rs.800 crores + Rs.80 crores.
WDV of all fixed assets at the beginning of 2007-08 = Rs.40 crores × 100/25 = Rs.160 crores.
WDV of all fixed assets at the beginning of 2008-09 = Rs.160 – Rs.40 crores = Rs.120 crores.
Depreciation for 2008-09 @ 25% on WDV of all fixed assets = Rs.120 crores × 25% = Rs.30 crores
Other expenses increase by 20 % = Rs.640 crores × 120% = Rs.768 crores
Projected Net profit in crores for the year 2008-09
Particulars Rs. (in Crores) Rs. (in Crores)
Projected gross profit 880
Less: Other expenses 768
Depreciation 30 798
Expected Net profit 82
<
TOP
>
20. C Under accrual system of accounting cash on hand is a real account and it reflects physical cash held
by the business. It does not reflect either profit or loss. option (c) is the false statement and is
the accurate ans.
<
TOP
>
Page 21 of 30
ans cause
21. B Books of Surya Enterprises
Dr. Trading Account for the period ending March 31, 2008 Cr.
Particulars Rs. Rs. Particulars Rs. Rs.
To Opening stock 13,500 By Sales: 80,000
(+) under evaluation
of opening stock
2,500
16,000
To Purchases 45,000 (–) Returns inward 1,500 78,500
(–) Inventory lost 1,000 By Closing stock 20,000
(–) Returns outward 1,000
43,000
Less: over evaluation
of closing inventory 5,000 15,000
To Wages 2,500
(+) Outstanding as on
March 31, 2008
350
2,850
(–) Outstanding as on
April 01, 2007
250
2,600
To Carriage inward 500
To Gas, water, fuel 1,000
To Gross Profit 30,400
93,500 93,500
<
TOP
>
22. C Deduct Rs.6,000 from the value of closing stock; Debit Rs.2,000 to P&L A/c and show Rs.4,000 as
claim receivables on the asset side of Balance Sheet. To estimate the true stock held, value of
stock destroyed in fire to be deducted. As against the loss of Rs.6,000 claim admitted is only
Rs.4,000.The difference of Rs.2,000 to be treated as a loss and taken to P&L A/c. As the claim
amount is receivable it is to be taken on the asset side of Balance Sheet.
<
TOP
>
23. E
Particulars Rs.
Wages paid during the year 2,40,000
Add: Outstanding wages on March 31, 2008 65,440
3,05,440
Less: Outstanding wages on March 31, 2007 80,640
Total wages to be shown in the trading
account for the year ended March 31, 2008
2,24,800
<
TOP
>
24. A A contingent liability is the loss which will be known or determined only on the occurrence of one

Earning:   Approval pending.