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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(b) Interest on drawings account Dr.
To Capital account
(c) Interest on drawings account Dr.
To Bank account
(d) Bank account Dr.
To Capital account
(e) Capital account Dr.
To Interest on drawings account. (1 mark)
31.MX Ltd., follows perpetual inventory system. On March 31 of every year, the company undertakes
physical stock verification. On March 31, 2008, the value of stock as per the records differed from the
value as per the physical stock. On scrutiny, the subsequent differences were noticed:
? Stock register was overcast by Rs.12,000.
? Goods purchased for Rs.20,000 were received and included in the physical stock but no entry was
made in the books.
? Goods costing Rs.60,000 were sold and entered in the books but the stock is yet to be delivered.
? Goods worth Rs.10,000 are returned to the suppliers but omitted to be recorded.
If the inventory is valued in the books at Rs.3,00,000, the value of the physical inventory was
(a) Rs.2,22,000
(b) Rs.3,78,000
(c) Rs.3,58,000
(d) Rs.3,18,000
(e) Rs.2,38,000. (2marks)
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32.The value of inventory far in excess of the normal requirement of a firm is shown under
(a) Current Assets
(b) Fixed Assets
(c) Miscellaneous Assets
(d) Non-current Assets
(e) Other Current Assets. (1 mark)
33.Which of the subsequent statements is true?
(a) The value of ending inventory under simple avg. price method is realistic
(b) Usually profit or loss will not arise out of pricing the problems on the basis of simple avg.
price method
(c) The value of stock is shown on the assets side of the balance sheet as fixed assets
(d) The closing stock should be valued at cost or market price whichever is higher
(e) Opening stock plus purchases minus cost of goods sold is the value of closing stock. (1 mark)
34.If the selling price of inventory is lowered beneath the original selling price, it is known as
(a) Markup
(b) Markup cancellation
(c) Net markup
(d) Markdown
(e) Net markdown. (1 mark)
35.Zilich Motors Ltd., a dealer in 2nd hand luxury cars had the subsequent 5 vehicles of various
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