Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting – I (111) : - Question Paper

7.
In contract accounting, the percentage of completion method is an exception to the
(a)
Matching principle
(b)
Going concern principle
(c)
Historical cost principle
(d)
Business entity Principle
(e)
Revenue recognition principle.
(1 mark)
< ans >
8.
From the books of Mr. Ashok, it was observed that cheques amounting to Rs.2,40,000 were deposited in the bank, outof which cheques worth Rs.20,000 were dishonored and cheques worth Rs.40,000 are still in the process of collection.The treatment of this while preparing Bank Reconciliation Statement is
(a)
Deduct Rs.60,000 from bank balance as per pass book
(b)
Add Rs.20,000 and deduct Rs.40,000 from overdraft balance as per cash book
(c)
Deduct Rs.60,000 from overdraft balance as per pass book
(d)
Add Rs.60,000 to overdraft balance as per pass book
(e)
Deduct Rs.40,000 and add Rs.20,000 from overdraft balance as per pass book.
(2 marks)
< ans >
9.
The total cost of goods available for sale with a company during the current year is Rs.12,00,000 and the total salesduring the period are Rs.13,00,000. If the gross profit margin of the company is 25% on sales, the closing inventor
yduring the current year is
(a)
Rs.4,00,000
(b)
Rs.3,40,000
(c)
Rs.2,25,000
(d)
Rs.1,60,000
(e)
Rs.1,00,000.
(1 mark)
< ans >
10.
Consider the subsequent data pertaining to M/s.Libra Company:
Particulars
As on April 01, 2005 (Rs.)
As on March 31, 2006 (Rs.)
Cash & bank
60,000
?
Sundry debtors
50,000
40,000
Sundry creditors
70,000
80,000
During the year 2005-06, the sales were Rs.3,60,000 and all were on credit. The cash purchases were Rs.80,000 andcredit purchases were Rs.2,00,000. Expenses paid during the year were Rs.70,000.
The cash and bank balance of M/s.Libra Company as on March 31, 2006 was
(a)
Rs.50,000
(b)
Rs.90,000
(c)
Rs.70,000
(d)
Rs.80,000
(e)
Rs.60,000.
(2 marks)
< ans >
11.
Which of the subsequent subsidiary books serves the purpose of ledger too, in addition to the recording of accountingtransactions?
(a)
Purchases book
(b)
Sales book
(c)
Bills receivable book
(d)
Cash book
(e)
Journal proper.
(1 mark)
< ans >
12.
Cyber Ltd. has furnished the subsequent info for the year 2005-2006:
Opening balance of Sundry debtors account
Rs. 50,000
Closing balance of Sundry debtors account
Rs. 60,000
Cash collected from debtors
Rs.5,00,000
Discount allowed to debtors

Earning:   Approval pending.