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

2007 was Rs.1,20,000, then the total expenditure incurred during the year was
(2 marks)
(a) Rs.1,60,320
(b) Rs.1,52,720
(c) Rs.1,27,600
(d) Rs.1,20,000
(e) Rs.1,13,400.
< ans >
29. The amount of profit earmarked for distribution to the shareholders is known as
(1 mark)
(a) Net profit after tax
(b) Retained earnings
(c) Dividends
(d) Operating profit
(e) Profit before tax.
< ans >
30. The balance sheet provide info regarding the
(1 mark)
(a) outcomes of operations of the firm for a particular period
(b) Financial position of the firm during a particular period
(c) Profit earning capacity of the firm for a particular period
(d) Financial position of the firm on a particular date
(e) Operating efficiency of the firm on a particular date.
< ans >
31. The accountant of ABC Ltd. reported a profit of Rs.6,50,000 for the year ended March 31, 2007. On
scrutiny, the subsequent errors were noticed:
• Building rent of Rs.1,500 per month was paid upto January 2007. Rent debited to Profit and loss
account was Rs.15,000.
• Sales book was overcast by Rs.20,000.
< ans >
• Rs.20,000 paid for the repair of 2nd hand machinery purchased, to bring it to the working
condition, was debited to Repairs and Maintenance as Rs.2,000.
• Ignore depreciation on 2nd hand machinery.
The accurate net profit made by the company for the year ended March 31, 2007 after the rectification
was
(2 marks)
(a) Rs.6,29,000
(b) Rs.6,49,000
(c) Rs.6,32,000
(d) Rs.6,25,000
(e) Rs.6,47,000.
32. Consider the subsequent data pertaining to Bond Bros.:
If fair rate of return in similar business is 12%, the value of goodwill on the basis of three years’ purchase
of super profits of the business, is
(2 marks)
i. avg. profits of the last 4 years Rs.1,21,500
ii. Remuneration from option employment of
the owners
Rs. 21,500
iii. avg. capital employed Rs.6,00,000
(a) Rs.1,21,500
(b) Rs.1,00,000
(c) Rs. 84,000
(d) Rs. 72,000
(e) Rs. 28,000.
< ans >
33. During the year 2006-07, Fizz Ltd. reported a profit of Rs.4,20,000 after paying tax at the rate of 50%.

Earning:   Approval pending.