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

expectation of expected future benefits at the beginning of the period
(d) Gross sales less returns
(e) The profit which is disclosed in profit and loss account.
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13. Under cash basis of accounting, revenue is recognized when
(1 mark)
(a) Sale is made
(b) Cash is received
(c) Goods are delivered
(d) Services are rendered
(e) Sales are accounted.
< ans >
14. Provision for bad debts is made as per the
(1 mark)
(a) Conservatism concept
(b) Cost concept
(c) Consistency concept
(d) Going concern concept
(e) Time period concept.
< ans >
15. The subsequent account balances were extracted from the books of John & Co. as on April 01, 2007:
The capital account balance as on April 01, 2007 was
(2 marks)
Particulars Rs.
Cash on hand 330
Cash at bank 6,050
Bills payable 3,300
Furniture & fittings 6,600
Sundry creditors 11,400
Sundry debtors 14,520
Stock in trade 12,200
(a) Rs.27,500
(b) Rs.39,700
(c) Rs.28,320
(d) Rs.51,900
(e) Rs.25,000.
< ans >
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16. subsequent balances were extracted from the books of Prem Enterprises for the year ended March 31,
2007:
The amount of gross profit for the year ended March 31, 2007 was
(2 marks)
Particulars Rs.
Opening stock 80,000
Purchases 2,50,000
Sales 3,50,000
Returns inward 10,000
Octroi 2,150
Freight inwards 1,500
Returns outward 12,500
Closing stock 1,10,000
Commission paid on sales @ 5%
(a) Rs.1,05,820
(b) Rs.1,06,820
(c) Rs.1,31,000
(d) Rs.1,28,850
(e) Rs.1,30,000.
17. Consider the subsequent data pertaining to a company for the year 2006-07:
If the company maintains 5% provision for doubtful debts, the amount of bad debts written off during
the year 2006-07 was
(2 marks)
Opening balance of sundry debtors Rs.2,20,000
Closing balance of sundry debtors Rs.1,80,000
Amount transferred from profit & loss account to the credit
of provision for doubtful debts account
Rs. 20,000
(a) Rs.15,000
(b) Rs.17,000
(c) Rs.22,000
(d) Rs.25,000
(e) Rs.27,000.
< ans >
18. Sonny Ltd. has furnished the subsequent info for the year 2006-07:

Earning:   Approval pending.