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

–
30,000
Accounts payable as on March 31, 2006
–
40,000
Amount paid to creditors during the year
–
1,50,000
Sales
–
2,00,000
It is noticed that goods worth Rs.30,000 were destroyed due to fire. Against this, the insurance company accepted a claim of Rs.20,000.
The company sells goods at cost plus 1333%. The value of closing inventory, after taking into account the above transactions was
(a)
Rs. 10,000
(b)
Rs. 30,000
(c)
Rs.1,00,000
(d)
Rs.1,10,000
(e)
Rs. 60,000.
(2 marks)
< ans >
29.
Which of the subsequent is not a change in Accounting Policy?
(a)
Introduction of straight line method of depreciation in place of written down value method of depreciation
(b)
Introduction of formal retirement gratuity scheme by an employer in place of adhoc ex-gratia payments to employees on retirement
(c)
change in method of evaluation of inventories from LIFO to FIFO
(d)
change in method of recognizing revenue on construction contracts from percentage of completion method to completed contract method
(e)
change in method of conversion of foreign currency items.
(1 mark)
< ans >
30.
Rahul a customer, has become insolvent. He owed Rs.5,000 to the business. Now, only 20 paise per 1 rupee isrecovered. The balance is treated as bad debt. The entry to record the transaction is
Rs. Rs.
(a)
Bank account Dr. 1,000
Bad debt account Dr. 4,000
To ‘Rahul’ account 5,000
(b)
Bad debts account Dr. 4,000
To ‘Rahul’ account 4,000
(c)
Profit & Loss account Dr. 4,000
To ‘Rahul’ account 4,000
(d)
Bad debt account Dr. 4,000
To Profit & Loss account 4,000
(e)
Provision for Bad debt account Dr. 1,000
To Bad Debt account 1,000.
(2 marks)
< ans >
31.
As per Indian Accounting Standard, when assets are said at revalued amount, which of the subsequent info isnot needed to be disclosed?
(a)
The amount of revaluation surplus
(b)
The basis of revaluation
(c)
Whether an independent valuer was employed
(d)
The carrying amount, had there not been any revaluation
(e)
The useful life of the assets.
(1 mark)
< ans >
32.
In the books of Brinda Ltd., the balance in the furniture and fixtures account as on March 31, 2005 was Rs.3,10,000.The subsequent additional info is given:
I. Sales of the company during the year 2005-06 include Rs.17,000 in respect of sale of an old furniture on March 31, 2006. The book value of the furniture on April 01, 2005 was Rs.20,000.

Earning:   Approval pending.