BSNL JAO Exam 2017 : Papers with Answer Keys (Batch 2) (05 NOV 2017)
201.
151. When the total of Trial Balance does not tally the difference is taken
as:
(A) Suspense Account
(B) Profit and Loss Account
(C) Error Account
(D) Difference Account
ANS (A)
152. Current Liabilities are obligations to be settled in _______.
(A) Short period
(B) Long period
(C) Immediately
(D) None of these
ANS (A)
153. XY Ltd. sells its products on credit basis and its customers are
associated with 2% credit risk. Its annual turnover is expected at Rs.10,00,000
if credit is extended. If no credit is allowed the sales would be 70% thereon.
Compute net profit on credit sales assuming cost of capital is 15% p.a. and
variable cost 75% of sales, credit period is 30 days. Cost of administration is
2% of credit sales.
(A) Rs.2,47,500
(B) Rs.2,75,000
(C) Rs.2,52,500
(D) Rs.2,50,000
ANS (A)
154. Greenways Ltd. issued 10,000 shares @ Rs.100 to the public under
the terms: Rs. 20 on application; Rs.30 on allotment; Rs.25 on First Call; Rs.25
On Final Call. All moneys upto Allotment were duly received. But a shareholder
holding 500 shares did not pay the first call amount due. Another shareholder
who was allotted 250 shares paid them up in full. Show how ‘calls-in-advance’
will be shown in the Balance-Sheet.
(A)
| Liabilities
(in Rs.) |
Assets
(in Rs.) |
| |
Call in Advance (250
*50)=12,500 |
(B)
| Liabilities
(in Rs.) |
Assets |
current Liblities
calls in Advance 12,500/- |
|
(C)
| Liabilities
(in Rs.) |
Assets
(in Rs.) |
Issued and Subscribed
capital less :
Call in Advance 12,500/- |
|
(D) None of these
ANS (B)
155. On 30th, june, 2017, the balance sheet of good Luck Ltd stood as
follows:
| Liabilities
(in Rs.) |
|
Assets
(in Rs.) |
|
| EQUITY SHARE CAPITAL :
|
20,00,000
|
Sundry Assets |
28,00,000 |
Redeemable Preference
Share capital
|
8,00,000 |
Bank balance
|
10,00,000 |
| P&L Account
|
6,00,000 |
|
|
| sundry creditor
|
4,00,000 |
|
|
| |
38,00,000 |
|
38,00,000 |
On the above data, the preference shared had to be redeemed. for this
purpose, 4,00,000 equity shares of Rs 100 each were issued at
Rs 110. The company also issued 8% debentures totalling Rs 2,60,000
The shares and debentures were immediately subscribed and paid for. The
preferences shares were duly redeemed. you are required to calculate the amount
to be shown in the balance sheet after redemption under '' bank balance''
(A) Rs.10,20,000
(B) Rs.12,40,000
(C) Rs.10,40,000
(D) Rs.14,20,000
ANS (B)
156.EF Ltd. issued 1,000, 10% Debentures of Rs.100 each at a discount of 6%.
The Debentures are repayable by annual drawings at the end of each year from the
first year onwards at the rate of Rs.20,000 per year. Ascertain the discount
amount to be written off at the end of Fourth Year under Fluctuating Instalment
Method.
(A) Rs.400
(B) Rs.800
(C) Rs.6,000
(D) Rs.1,200
ANS (B)
157 Mr. X, an industrialist (SME Category) decided to convert his firm into a
limited company from 1 June 2016. He obtained the Certificate of Incorporation
on 1 October 2016 and the Certificate of Commencement of Business on 1 December
2016. His accounts were to be closed on 31 March 2017. There were 30 employees
in the firm on 1 June 2016 and 20 more employees were appointed on 1 October
2016. Ascertain the weighted time ratio.
(A) 1 : 3
(B) 1 : 4
(C) 1 : 5
(D) 2 : 5
ANS (C)
158 " Fictitious Assets" are to be shown on the assets side of the Balance Sheet
under the Heading:
(A) Miscellaneous Expenditure
(B) Current Assets
(C) Investments
(D) Fixed Assets
ANS (A)
159. Shree Ltd has a credit balance on P&l Account of rs 6,00,000
on 1.4.2016 and net profit for the year is Rs 60,00,000 The following decision
were taken regarding provision, reserves and dividend :
1) General reserve Rs 7,00,000
2) Investment Allowance Rs. 7,00,000
3) provision for taxation @ 50 %
4) Dividend Equalization fund A/C Rs. 4,00,000
5) Dividend on 10% preference shares of Rs, 40,00,000
6) dividend on 15% on 6,00,000 Equity shares of Rs. 10 each fully
paid tax.
|
(A) Rs.3,30,000
(B) Rs.5,30,000
(C) Rs.5,00,000
(D) Rs.3,70,000
ANS (D)
160 The Directors of a public limited company have decided to write off
Goodwill appearing Rs.50,000 at the beginning of the year 2016-17. How will you
treat this?
(A) Rs.50,000 should be shown separately in P&L Account.
(B) Credit P & L Account by Rs. 50,000
(C) Debit P & L Appropriation Account by Rs. 50,000
(D) Show in Balance Sheet under Assets Rs.50,000
161. Profit on sale of machinery comes under:
(A) Investing activity
(B) Financing activity
(C) Operating activity
(D) None of these
ANS (B)
162.
Which of the following is NOT a characteristic of cash-equivalents?
(A) Highly liquid
(B) Long-term
(C) Readily convertible into cash
(D) None of these
ANS (B)
163. you are required to calculate cash inflow from debtors from the
following data
| |
in Rs |
Total assets
Cash sales
Opening Debtors
Closing Debtors
Sales Returns |
10,00,000
4,00,000
1,00,000
1,60,000
40,000 |
(A) Rs.5,00,000
(B) Rs.4,00,000
(C) Rs.4,40,000
(D) Rs.4,60,000
ANS (A)
164. Compute net profit before tax :
| Particulars |
Balance |
|
Opening |
Closing |
P&L Accounts
General Reserve
Provision for Depreciation : plant
Outstanding Expenses
Goodwill
Sundry Debtors |
90,000
50,000
80,000
10,000
50,000
1,20,000 |
1,00,000
60,000
90,000
4,000
30,000
1,00,000 |
An item of plant Costing Rs. 1,00,000 having book value of Rs 80,000
was sold for Rs. 90,000
(A) Rs.25,000
(B) Rs.30,000
(C) Rs.20,000
(D) Rs.22,000
ANS (B)
165. Anil sells an article to Prakash at 10% profit. Prakash sells it
back to Anil at a loss of 10%. The transaction gives
(A) Loss to Anil
(B) Profit to Anil
(C) There is no loss or gain
(D) Prakash makes profit
ANS (B)
166. In relation to a company, investors are least concerned with
(A) Profitability
(B) Short term liquidity
(C) Solvency
(D) Future share price
ANS (B)
167. Which one of the following can be treated as capital expenditure?
(A) Acquisition of land, building, machinery etc.
(B) Amount spent on modification of asset
(C) Expenses incurred for right to carry on a business
(D) All of these
ANS (D)
168. As per accrual concept which one is NOT true
(A) Revenue – expenditure = profit
(B) Revenue – profit = expenditure
(C) Sales + gross profit = revenue
(D) Revenue = profit + expenditure
ANS (C)
169. Which of the following provide frame work and accounting policies so
that the financial statements of different periods are comparable
(A) Business standards
(B) Accounting standards
(C) Market standards
(D) None of these
ANS (B)
170. What is the journal entry for goods purchased on credit?
(A) Purchase DR
To creditors A/C
(B) Creditor's Dr
To Purchase A/C
(C) Purchase Dr
To Debtors A/C
(D) Debtor's A/C
To Purchase A/C
ANS (A)
171. Which one of the following is NOT correct about Fund Flow Statement?
(A) Records inflows and outflows of cash only
(B) It is based on Cash Accounting System
(C) It measures changes in working capital.
(D) It is based on Accrual accounting system
ANS (A)
173 . XY Ltd. has a policy of maintaining a minimum cash balance of
Rs.45,000. The Standard Deviation of company’s daily net cash Rs.1,000. The
transaction cost is Rs.90 per transaction. The interest rate is 0.2% daily.
Compute the upper limit as per Miler Orr Model:
(A) Rs.41,500
(B) Rs.49,500
(C) Rs.43,500
(D) Rs.47,500
ANS (B)
174. Which of the following statement is correct?
(A) Default costs are caused due to failure of customers to pay on time.
(B) Financial costs to support credit sales are referred to as collection
costs
(C) Business firms should not opt for relaxation of credit standards as
they cause increase in collection costs,amount of bad debts and financial costs.
(D) Receivables management involves a trade-off between costs and benefits
or receivable.
ANS (D)
175. Which of the following statement is NOT TRUE?
(A) Cash discount increases the average collection period.
(B) The increase in credit period increases average investment in receivables.
(C) The credit term “3/10 net 30” implies that the customer is entitled to 3%
cash discount only when he pays within 10 days after the beginning of credit
period, though the credit period is 30 days.
(D) Financial costs of investment in debtors are determined with reference to
Cash Cost of Sales.
ANS (A)
176. AB Ltd. purchased assets for Rs.4,80,000 from X & Co. payable in
fully paid shares of Rs.100 each at a premium of 20%. Which of the
following is the correct Journal Entry in the Books of AB Ltd.
(A) X & Co. A/c : Dr. 4,80,000
To Share Capital A/c : 4,80,000
(B) X & Co. A/c : Dr. 4,80,000
To Share Capital A/c : 4,00,000
To Share Premium A/c :80,000
(C) Share Capital A/c : Dr. 4,00,000
Share Premium A/c : 80,000
To X & Co. A/c : 4,80,000
(D) X & Co. A/c : Dr. 5,60,000
To Share Capital A/c : 4,80,000
To Share Premium A/c : 80,000
ANS (B)
177. The articles of association of Good Luck Ltd. provide for the
following:
i) That 10% of profit of each year shall be transferred to Reserve Fund;
ii) That an amount equal to 10% of equity dividend shall be set aside for bonus
to staff;
iii) That the balance available for distribution shall be applied:
a) In paying 7% on Cumulative Preference Shares,
b) In paying 7% on Equity shares
c) One third of the balance available as additional dividend on preference
shares and two-thirds as additional
equity dividend.
A further condition was also imposed by the Articles, namely, the balance
carried forward shall not be reduced by the provisions under (ii), (iii) (b) or
(iii) (c) below a sum equal to 6% of the preference capital.
The company has issued 52,000 7% cumulative particularly preference shares of
Rs.100 each fully paid. The profit for the year 2016-17 was Rs.28, 85,978 and
the balance brought forward from the previous year was Rs.3, 14,349. Provide
Rs.12, 54,600 for taxation before making other appropriations. Ignore corporate
dividend tax. Balance c/fd to Balance Sheet will be:
(A) Rs.3,28,680
(B) Rs.3,60,580
(C) Rs.3,18,580
(D) Rs.3,65,680
ANS (C)
178. From the following particulars, calculate the cash flows from
investing activities:
| Particulars |
purchases (in Rs.) |
Sales (in Rs) |
Investments
Goodwill
Machinery
Patents |
6,00,000
3,00,000
13,00,000
- |
4,00,000
-
4,20,000
2,00,000 |
Dividends received on shares held on investment Rs. 60,000 Interest received
on debentures held as investment Rs. 80,000 a building purchased for investment
purpose (out of surplus fund) was let out and rent proceeds received there by
Rs, 2,40,000
(A) Rs.8,00,000
(B) Rs.80,000
(C) Rs.6,00,000
(D) Rs.12,00,000
ANS (A)
179. Trading Account does not –
(A) Compare the sales with the cost of those sales
(B) Calculate gross profit
(C) Show the effect of return on capital पूंजी पर वापसी का भाव
(D) Include the cost of goods sold बेची गई वुओंकी
ANS (C)
180. Net current asset is equivalent to – शु
(A) Fixed asset + current assets – current liabilities
(B) Current liabilities – current assets
(C) Stock + debtors + cash
(D) Working capital
ANS (D)
181. In net profit ratio the denominator is – शु
(A) Net purchase शु
(B) Credit sales
(C) Net sales शु
(D) Cost of goods sold
ANS (C)
182. Unpaid calls are shown in the balance sheet of a company –
(A) By adding it to share capital
(B) By deducting it from called up share capital
(C) Under current liabilities
(D) Under current assets
ANS (B)
183. Interest cost incurred during construction phase or before the asset is
put to use is accounted under –
(A) Repair
(B) Maintenance
(C) Capital asset
(D) Cost of acquisition
ANS (D)
184. Which concept satisfy valuation criteria –
(A) Going concern, Realisation, Cost
(B) Going concern, Cost, Dual aspect
(C) Cost, Dual aspect, Conservatism
(D) Realisation, Conservatism, Going concern
ANS (A)
185. An asset was purchased for Rs. 5,00,000 with down payment of Rs.
2,00,000 and bills accepted for Rs. 3,00,000. The effect on total asset of the
company will be –
(A) Assets increased by 3,00,000 and liabilities decreased by 3,00,000
(B) Assets decreased by 3,00,000 and liabilities increased by 3,00,000
(C) Assets increased by 5,00,000 and liabilities decreased by 3,00,000
(D) Assets increased by 3,00,000 and liabilities increased by 3,00,000
ANS (D)
186. Historical cost concept requires the valuation of an asset at –
(A) Original cost
(B) Replacement value
(C) Net realizable value
(D) Market value
ANS(A)
187.
| Particulars |
As on Dec. 31, 2011 (in Rs) |
As on Dec.31.2012(in Rs) |
Pre paid salary
Unpaid salary |
20,000
50,000 |
35,000
20,000 |
Salary paid during 2012 amounted to Rs 2,40,000.
Amount to be shown under ''salaries'' in I&E A/C for the year ending Dec 31,2012
(A) Rs.3,10,000
(B) Rs.2,55,000
(C) Rs.1,95,000
(D) Rs.1,70,000
ANS(C)
188. C was admitted into a Partnership firm for 5 years where A & B
were already partners. C paid a premium of Rs.2,40,000. After 36 months, the
partnership firm was dissolved due to misconduct of B. The amount of refund to
Mr. C is:
(A) Rs.96,000
(B) Rs.1,44,000
(C) Rs.2,40,000
(D) None of these
ANS(A)
189. A Building was purchased for Rs.48,00,000/- on 14/5/2012. Down
payment of Rs.30,00,000/- was made and the balance was to be paid on 14/4/2013.
What is the amount on which depreciation on the building was to be charged as at
31/3/2013?
(A) Rs.48,00,000
(B) Rs.30,00,000
(C) Rs.18,00,000
(D) Rs.24,00,000
ANS(A)
190. Net Working Capital is equal to:
(A) Excess of current assets over current liabilities
(B) Excess of current liabilities over current assets
(C) Total current assets
(D) None of these
ANS(A)
191.
Arithmetical accuracy of basic entries, ledger posting & balancing is ensured by
(A) Trial Balance
(B) Profit & Loss Account
(C) Cash Flow Statement
(D) Balance Sheet
ANS(A)
192. Great Pvt. Ltd. bought machinery for Rs.1,00,000 on 01.01.2013 and spent
Rs.10,000 on its installation. The life of the machinery is estimated to be 5
years & estimated scrap value at the end of period will be Rs. 5,000. The amount
of annual depreciation as per straight line method will be
(A) Rs. 21,000
(B) Rs. 20,000
(C) Rs. 19,000
(D) Rs. 22,000
ANS(A)
193. A sells goods to B for Rs. 20,000. A draws a bill on B who accepts
the same to pay the amount after 2 months. Here, B is A 20,000 पए
(A) Drawee
(B) Drawer
(C) Payee
(D) Endorsee
ANS(A)
194 The payment side of Cash Book is overcast by Rs.7000. If the starting
point of the BRS is the Overdraft Balance (A) as per pass Book, then what is to
be done to reach to Overdraft Balance of Cash Book?
(A) Add Rs.7,000
(B) Less Rs.7,000
(C) Add Rs.13,000
(D) Less Rs.3500
ANS(A)
195. If a bill of exchange dated 8th January is issued for 2 months after
date, the date of maturity will be
(A) 11th March
(B) 8th March
(C) 15th March
(D) 11th April
ANS(A)
196. ______ method of depreciation takes into account the element of interest
on capital outlay and sees to write off the asset and the interest cost over the
life of asset
(A) Sinking fund
(B) Annuity
(C) Straight line
(D) Written down value
ANS(A)
197. A Machine was purchased on 1st July 2010 for Rs. 14,000 and an amount of
Rs.1000 was spent on its installation. . The rate of depreciation is 10% p.a.
every year. The books are closed on 31st December. Find the value of Machinery
as on 31st Dec 2011 after following Diminishing Balance method of depreciation.
(A) Rs. 12,825
(B) Rs.12,150
(C) Rs. 13,575
(D) Rs.13,500
ANS(A)
198 Which of the following is TRUE?
(B)
(A) Two mutually exclusive projects (L & M) have been evaluated. Project L has
an NPV of Rs.2 lakh and anIRR of 15 percent; Project M has NPV of and has an IRR
of 17 percent. Since Project M has higher IRR, itshould be selected.
(B) Two competing projects have the following NPVs: Project A + Rs. 10 lakhs
(with an initial outlay of Rs.30lakhs and Project B + Rs. 9 lakhs (with an
initial outlay of Rs.27.5 lakhs).The company should opt for Project Aas it has
higher
(C) The cost of capital for new projects is 16%. Two competing projects (P&Q)
have IRR 15% and 13% respectively. Since IRR of project P is higher, it should
be selected.
(D) A project requires an initial investment of Rs.50 lakhs. The estimated
profit after tax for years 1- 5 are: Rs.6 lakhs, Rs.7 lakhs, Rs.7 lakhs, Rs.14
lakhs and Rs.18 lakhs, the accounting rate of return is 18%.
199. Z Ltd. has Rs 30,00,000 lakhs available for investment in capital
projects. it has the option of making investment in projects A,B,C and D. Each
project is entirely independent and has a useful life of 5 years. The expected
present value of cash flows from the project are as follows:
| Projects |
Initial Outlay (in Rs) |
Present value of cash flows (in Rs) |
| A |
8,00,000 |
10,00,000 |
| B |
15,00,000 |
19,00,000 |
| C |
7,00,000 |
14,00,000 |
| D |
13,00,000 |
20,00,000 |
(A) Combination of A + B + C
(B) Combination of A + D
(C) Combination of A + C + D
(D) Combination of B + D
ANS(C)
200. Calculate NPV of Certainty Equivalent of cash flows for the
following information :
| year |
proposal X |
Proposal Y |
| CFAT |
CE |
CFAT |
CE |
| 0 |
(35,000) |
1 |
(25,000) |
1 |
| 1 |
18,000 |
0.8 |
10,000 |
0.9 |
| 2 |
20,000 |
0.7 |
16,000 |
0.8 |
| 3 |
15,000 |
0.6 |
18,000 |
0.7 |
| 4 |
15,000 |
0.5 |
20,000 |
0.4 |
(A) X = Rs.6,372; Y = Rs.10,657
(B) X = Rs.4,652; Y = Rs.9,997
(C) X = Rs.5,722; Y = Rs.10,957
(D) X = Rs.3,752; Y = Rs.10,975
ANS(D)
201. Z Ltd. requires 5,000 units of a certain item per year. The Purchase
Price per unit is Rs.20. The Carrying Cost of inventory is 20% of the unit cost
and the cost per order is Rs.400. Compute the total cost of ordering and cost of
carrying inventory when 5 orders of equal size are placed.
(A) Rs.3,500
(B) Rs.2,500
(C) Rs.3,000
(D) Rs.4,000
ANS(D)
202. Which of the following statement is NOT correct?
(A) The primary function of financial intermediaries is to convert direct
securities into indirect securities.
(B) The two key financial markets are money market and capital market.
(C) Money market is a market for long term funds having maturity of more than
one year.
(D) Organisation, underwriting and distribution are three services provided by
the New issue market.
ANS(C)
203. PQ Ltd. has been issued equity share which, are priced currently
at Rs.108. The investor’s required rate of return is 12% and the dividend grows
at 8% per year. Compute the current dividend declared by the company:
(A) Rs.5
(B) Rs.4
(C) Rs.4.50
(B)
ANS(D) Rs.5.50
204. The cash outgoings of XY Ltd. are estimated to be
Rs.4,00,000 p.a. spread evenly throughout the year. The money on deposit earns
10% p.a. The switching cost per transaction is Rs.120. Calculate the optimum
amount to be transferred. Use Bau Mol Model:
(A) Rs.30,000
(B) Rs.32,000
(C) Rs.33,333
(D) Rs.31,000
ANS(D)
205. Equity Share Capital:Rs.1,50,000; 10% Pref. Share Capital:Rs.1,00,000;
Reserve and Surplus :Rs.5,00,000; Net Profit after Tax: Rs.2,10,000. Return on
Equity will be:
(A) 28%
(B) 20%
(C) 25%
(D) 30%
ANS(A)
206. Margin of safety is calculated as
(A) Actual sales + Break even point sales
(B) Actual production - Break even point sales
(C) Actual sales / Break even point sales
(D) Actual sales - Break even point sales
ANS(D
207. Angle of incidence is the angle where
(A) The total cost intersects the total sales
(B) Variable cost intersects fixed cost
(C) Fixed cost intersects total cost
(D) Variable cost intersects total Cost
ANS(A)
208. If selling price per unit increases and other variables remain
constant, the operating break-even point in units will
(A) increase
(B) decrease
(C) constant
(D) None of these
ANS (B)
209. Limitations of Break-even analysis
(A) non-linear cost behaviour
(B) presence of competition
(C) static concept
(D) capital not considered
ANS(C)
210. Determine contribution if Fixed cost is Rs. 75000 and loss is Rs. 30000
(A) Rs. 45000
(B) Rs. 105000
(C) Rs. 75000
(D) Rs. 30000
ANS(A)
211. Determine P/V Ratio when Sales Rs. 80,000/- and variable cost Rs.
60,000/-:
(A) 0.25
(B) 0.4
(C) 0.3
(D) 0.1
ANS(A)
212. What is margin of safety if sales is Rs. 50,000 and BEP is Rs.
30,000
(A) Rs. 20,000
(B) Rs. 30,000
(C) Rs. 80,000
(D) Rs. 50,000
ANS(A)
213. Material cost Rs. 10, sales price Rs. 30, labour Rs. 5,
Electricity Rs. 5, fixed cost Rs. 3000. The BEP will be
(A) 300
(B) 3000
(C) 30
(D) 1000
ANS(A)
214. Other valuable remain constant, if selling price decreases, the
BEP will
(A) Constant
(B) Increase
(C) Decrease
(D) None of these
ANS(B)
215. Fixed assets in the business is for
(A) Converting to cash
(B) Generating revenue
(C) Resale
(D) None of these
ANS(B)
216. According to which concept the closing stock is credited to
trading account?
(A) Cost
(B) Realisation
(C) Going concern
(D) Matching
ANS(D)
217. Any change in the capital account of the proprietor may occur due
to
(A) Profit earned
(B) Loss incurred
(C) Capital introduced
(D) All of these
ANS(D)
218. For computing the value of equity shares by yield method, it is essential
to know:
(A) Normal Rate of Return
(B) Net Assets
(C) Expected Rate of Return
(D) Capital employed
ANS(C)
219. Calculate the value of goodwill of a company on the basis of
2years' purchased of weighted of average profits for the last 3 years
purchased of weighted average profite for the last 3 years
2014 : Rs,50,000
2015 : Rs,35,000
2016 : Rs,25,000
The weights assigned to each years are :
2014 : 1
2015 : 2
2016 : 3
1) On 1.10.2015, a repair in respect of machinery was Rs, 2,500 which was
charged to revenue . this is to be capitalised for Goodwill calculation subject
to the depreciation of 10% p.a on reducing balance method.
2) The closing stock for the year 2014 was overvalued by Rs. 1,500
3) To cover the management cost, Rs 2,000 should be made for Goodwill
valuation
(A) Rs.62,881
(B) Rs.52,188
(C) Rs.61,818
(D) Rs.63,881
ANS(A)
