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

ans : (b)
cause : Sales made under installment credit scheme, if payment of installments are reasonably assured, the full value of sales can be treated as revenue realized. Hence ans (b) is accurate.
< TOP >
28.
ans : (e)
cause : Dr. Accounts Payable Cr.
Date
Particulars
Rs.
Date
Particulars
Rs.
2005-06
To Cash
1,50,000
Apr 01, 05
By Opening balance
30,000
Mar 31, 06
To Closing balance
40,000
2005-06
By Purchases
(Balancing figure)
1,60,000
1,90,000
1,90,000
Dr. Stock A/c Cr.
Date
Particulars
Rs.
Date
Particulars
Rs.
Apr 01, 2005
To Opening balance
80,000
2005-06
By Cost of goods sold*
1,50,000
2005-06
To Purchases
1,60,000
By Goods lost
30,000
March 31, 2006
By Closing balance
(Balancing figure)
60,000
2,40,000
2,40,000 *Cost of goods sold = Rs.2,00,000 × = Rs.1,50,000
< TOP >
29.
ans : (b)
cause : As per Accounting Standard 5, introduction of formal retirement gratuity scheme by an employer in place of adhoc ex-gratia payments to employees on retirement, is not a change in Accounting Policy.
< TOP >
30.
ans : (a)
cause : The entry to record the transaction is
Bank account (with the amount received ) Dr. Rs,1,000
Bad debts account (with the non recoverable amount) Dr. Rs.4,000
To Rahul’s account Rs.5,000.
< TOP >
31.
ans : (e)
cause : The useful life of the assets is not needed to be disclosed. All other info viz, the basis of revaluation, whether an independent valuator was employed ,the carrying amount had there not been any revaluation and the amount of revaluation surplus to be disclosed.
< TOP >
32.
ans : (c)
cause : Dr. Furniture and fixtures account Cr.
Particulars
Rs.
Particulars
Rs.
To Opening balance
3,10,000
By Bank (sale)
17,000
By profit and loss account
2,000
Bydepreciation (Rs.3,10,000 x 5%)
15,500
By closing balance
2,75,500
3,10,000
3,10,000
Particulars
Rs.
Written down value of machinery sold as on April 01, 2005
20,000
Less : Depreciation (Rs.20,000 x 5%)
1,000
Value of machine on March 31, 2006
19,000
Less : Sale consideration
17,000
Loss on sale of machine
2,000
< TOP >
33.
ans : (b)
cause : The balance outstanding to the debit of machinery account Rs.5,52,700
Bright Light Limited
Cost of machinery on April 1, 2003
Rs.5,67,000 x 100/90 x 100/90 = Rs.7,00,000
Note : Depreciation given on reducing balance method :

Earning:   Approval pending.