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

Freehold properties 28,57,000 Provision for depreciation:
Freehold properties 4,27,000
< ans >
Depreciation on freehold properties of Rs.26,000 for the year ended March 31, 2007.
The net book value of freehold properties as on March 31, 2007 was
(2 marks)
(a) Rs.23,69,800
(b) Rs.24,49,800
(c) Rs.23,24,000
(d) Rs.24,89,900
(e) Rs.25,69,800.
47. Consider the subsequent data pertaining to Rising Sun Ltd., as on March 31, 2007:
The company wants to create a Debenture Redemption Reserve and to transfer Rs.50,000 every year out
of profits to redeem the debentures.
The company declared 10% dividends.
The balance of Profit and Loss Appropriation account transferred to Balance Sheet after effecting the
above transactions is
(2 marks)
Share Capital:
Issued, subscribed and called-up
Rs.20,00,000
Calls-in-arrears Rs. 10,000
Profit and loss account (Cr.) as on April 01, 2006 Rs. 67,000
Profit for the year Rs. 1,90,610
(a) Rs.1,88,549
(b) Rs. 58,610
(c) Rs. 8,610
(d) Rs. 7,610
(e) Rs.1,81,849.
< ans >
48. The directors of a company have proposed a dividend of 18% of the paid-up capital. The percentage of
profits which will have to be compulsorily transferred to reserves is
(1 mark)
(a) 2.5%
(b) 5.0%
(c) 7.5%
(d) 20.0%
(e) 12.5%.
< ans >
49. Which of the subsequent is an unidentifiable intangible asset that increases the earning capacity of a
business?
(1 mark)
(a) Patents
(b) Copyrights
(c) Trade marks
(d) Licenses
(e) Goodwill.
< ans >
50. Unearned income account is
(1 mark)
(a) A current asset
(b) A current liability
(c) An expense
(d) An income
(e) A contingent liability.
< ans >
51. Under Simple Profit Method, which of the subsequent is/are to be considered to compute the goodwill of
a business?
I. avg. of the adjusted profits of the chosen period.
II. The number of years of purchase.
< ans >
III. Normal Rate of Earnings.
IV. Capital employed in the business.
(1 mark)
(a) Only (I) above
(b) Only (II) above

Earning:   Approval pending.