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

Rs. Rs.
(a)
Bank a/c. Dr. 80,000
To Mahajan Traders a/c 80,000
(b)
Bank a/c. Dr. 80,000
To Mahajan Traders a/c. 78,000
To Discount a/c. 2,000
(c)
Mahajan Traders a/c. Dr. 78,000
To Bank a/c. 78,000
(d)
Bank a/c Dr. 78,000
Discount a/c. Dr. 2,000
To Mahajan Traders a/c 80,000
(e)
Bank a/c. Dr. 78,000
To Mahajan Traders a/c. 78,000.
(1 mark)
< ans >
53.
Monetary items of foreign branches of the parent enterprise should be translated using the
(a)
Closing rate
(b)
avg. rate
(c)
Exchange rate (on the date of transaction)
(d)
Weighted avg. rate
(e)
Forward rate.
(1 mark)
< ans >
54.
Which of the subsequent statements is actual in respect of trial balance?
(a)
It has statutory importance from the view point of legal regulations
(b)
It is a statement of assets and liabilities of a company
(c)
It reveals the profit or loss of a company during a period
(d)
It is a summary of all the balances of real accounts, personal accounts and nominal accounts
(e)
It is a real account.
(1 mark)
< ans >
55.
Leo Co. invested Rs.80,000 in 12% debentures of Gemini Ltd. on January 31, 2005. The company pays interest on
debentures during April 30th and October 30th every year. As on March 31, 2006, the accrued interest revenue was shown in the financial statements of Leo Co. at
(a)
Nil
(b)
Rs.9,600
(c)
Rs.4,000
(d)
Rs.2,400
(e)
Rs.1,600.
(1 mark)
< ans >
56.
The subsequent info is furnished by X Ltd. for the year ended March 2006.
Opening balance of provision for bad debts Rs.1000.
Opening balance of provision for discount on debtors Rs.500.
Debtors as on 31.3.2006 was Rs.3,00,000.
Discount allowed is Rs.500.
Other details are:
i. Debtors included Rs.5,000 in respect of a machinery sold on 28.2.2006.
ii. During the year bad debts amounted to Rs.2,000 and an amount of Rs.500 previously written off as bad debt was recovered. It is the practice of the company to route bad debt recovered through the provision account.
iii. A credit sale of Rs.3,100 to a customer on 31.3.’06 was posted in the sales book as Rs.1,300.
iv. Cash discount allowed amounting to Rs.300 on sale effected on 1.3.’06 had been omitted.
v. Provision for discount on debtors @ 1% and provision for doubtful debts @2% are to be maintained.

Earning:   Approval pending.