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BSNL JAO Exam 2017 : Papers with Answer Keys (06 NOV 2017 Batch-2)
BSNL JAO Exam 2017 : Papers with Answer Keys (Batch 2) (06 NOV 2017)
202
151. What is Profit?
(A) Excess of Revenue/Income over Expenditure
(B) Difference between Current Assets and Current Liabilities
(C) Excess Cash
(D) Excess of Expenditure over Revenue
ANS (A)
152. Manufacturing Account is prepared by :
(A) Firm involved in production activity
(B) Firm providing Services
(C) Firm involved in production activity and Firm providing Services
(D) None of these
ANS (A)
153. Which of the following statement is NOT TRUE?
(A) The Statutory form of Balance Sheet is set out in Part I, Schedule VI of the
Companies Act, 1956.
(B) According to Section 216 of the Companies Act, P&L Account shall be treated
as Annexure to the Balance Sheet
(C) The preparation of Profit and Loss Account and the Balance Sheet of a Joint
Stock Company should comply the requirements under Section 210 of the Companies
Act andrequirements of Part II of Schedule VI.
(D) TDS is not to be shown in the Balance Sheet.
ANS (D)
154. How will you deal with "Dividend Paid" if there is no
provision?
(A) Debit P&L Account
(B) Debit P&L Appropriation Account.
(C) Credit P&L Account
(D) Show in the Balance Sheet
ANS (B)
155. Treatment for "outstanding Interest on Debentures" in Company
Final Accounts will be:
(A) Debit P&L Account
(B) Show it under "Secured Loans" in Balance Sheet
(C) Both, Debit P&L Account and Show it under "Secured Loans" in Balance Sheet
(D) None of these
ANS (C)
156. What is the treatment for "Accrued Interest on Investments" in
Company Final Accounts?
(A) Debit P&L Appropriation Account.
(B) Credit P&L Account
(C) Show it under "Current Assets" in Balance Sheet
(D) Both, Credit P&L Account and Show it under "Current Assets" in Balance Sheet
ANS (D)
157. How will you treat "Wages includes installation charges of
Machines" in the Balance Sheet?
(A) Show it on the Liabilities side of the Balance Sheet
(B) Add to the respective Asset on the Assets side
(C) Debit P&L Appropriation Account
(D) Debit P&L Account
ANS (B)
158. M.D. is entitled to a commission of 10% of Net Profit before
taxation and commission. How will you treat in Profit and Loss Account of a
Joint Stock Company?
(A) Debit P&L Account
(B) Credit P&L Account
(C) Debit P&L Appropriation Account
(D) Credit P&L Appropriation Account
ANS (A)
159 The surplus amount (fund) in P&L Appropriation Account is to be
transferred to the Balance Sheet and shown on the liabilities side of the
Balance Sheet under the Heading:
(A) Reserves and Surplus
(B) Share Capital
(C) Secured loans
(D) Current Liabilities and Provision
ANS (A)
160. Corporate Dividend Tax is shown in:
(A) P&L Appropriation Account
(C) Trading Account
(D) Balance Sheet
ANS (A)
161. How will you treat the following? A public limited company sold
an investment for Rs.2,50,000 which was acquired 6 years ago at a cost of
Rs.70,000.
(A) Should be shown as an Asset Rs.1,80,000 in Balance Sheet
(B) Rs.1,80,000 should be credited to P&L Appropriation Account.
(C) Rs.1,80,000 should be shown separately in P&L Account.
(D) Rs.1,80,000 should be shown as a footnote in Balance Sheet.
ANS (C)
162. The following are the extracts from the trial Balance of
PQ Ltd on 31.3.2017
| Debit ( in Rs) | Credit (in Rs) | |
| Provisions for tax (2015-16) Advance Tax paid for 2015-16 Advance Tax paid for 2016-17 Tax deducted as source 2016-17 P&L A/C (2015-17) |
- |
4,00,000 |
The assessment for the year 2015-16 was finalized during the year
2016-17. the total tax liablilty for that year was fixed at Rs 4,40,000. The net
profit earned by the company during 2016-17 before tax amounts to Rs
8,00,000 The company is in 35 % tax bracket ( inclusive of any surcharges and
cess.) The amount to be carried forward to the balance sheet after preparing P&L
Appropriation A/C (2016-17) Will be :
(A) Rs.8,20,000
(B) Rs.8,40,000
(C) Rs.8,00,000
(D) Rs.8,80,000
ANS (D)
163. Which of the following item results in ‘cash inflow’?
(A) Cash payments for operating expenses
(B) Tax payments
(C) Cash payments for salaries
(D) Cash from credit customers
ANS (D)
164. Compute Net cash outflow on business expenses from the following details extract from P&L Account
|
in Rs |
|
| Expenses Occurred during the year 2016 Opening outstanding expenses Closing outstanding expenses Opening pre-paid expenses Closing pre-paid expenses |
1,00,000 |
(A) Rs.86,000
(B) Rs.88,000
(C) Rs.90,000
(D) Rs.72,000
ANS (A)
165. Calculate Net cash outflow from operating activities from the following P&L Account by indirect method
| Particulars |
in Rs. |
Particulars |
in Rs. |
| salary Rent Depreciation Loss on sale of machinari Goodwill Written off Proposed dividend Provision for Tax Net profit |
40,000 |
Gross profit |
1,20,000 |
|
1,50,000 |
1,50,000 |
(A) Rs.70,000
(B) Rs.56,000
(C) Rs.50,000
(D) Rs.54,000
ANS (B)
166. Find the incorrect accounting equation
(A) Assets = liabilities + capital
(B) Capital = assets – liabilities
(C) Liabilities = asset – capital
(D) Liability = assets+ capital
ANS (D)
167. Profit and loss account is also called
(A) Fund flow statement
(B) Income statement
(C) Cash flow statement
(D) None of these
ANS (B)
168. Business transactions are recorded
(A) In chronological order
(B) Monthly
(C) Weekly
(D) Yearly
ANS (A)
169. Sales day book is maintained for
(A) Recording all sales of the firm
(B) Recording credit sales
(C) Recording payment of debtors
(D) Recording transaction of debtors.
ANS(A)
170. Which one is true in double accounting system
(A) Each transaction should be entered into two Account ledger
(B) Each transaction involves two partied.
(C) Each transaction involves a debit entry
(D) Total debit should be equal to total credit.
ANS (D)
171. Which of the following is NOT the main objective of accounting?
(A) Systematic recording of transactions
(B) Ascertaining profit or loss
(C) Ascertaining financial position
(D) Solving tax disputes with tax authorities
ANS (D)
172. Adjusted Purchase is:
(A) Opening Stock + Purchase - Closing Stock
(B) Purchase – Purchase Return
(C) Closing Stock + Purchase – Opening Stock
(D) None of these
ANS (A)
173. A company raises preferential share capital of Rs.5,00,000 by
issue of 10% Preferential Shares of Rs.10 each, issued at a discount of 10%.
Cost of preference capital will be:
(A) 9.09%
(B) 11.11%
(C) 9%
(D) 12%
ANS (B)
174. From the following particulars Whether the firm has surplus or deficiency of cash :
|
Normal |
Peak |
|
| Desired days of cash |
8 |
7 |
| Average dally outflows | 25,000 | 20,000 |
| Actual Cash balance | 1,50,000 | 1,20,00 |
(A) Deficiency in cash during normal period
(B) Deficiency in cash during peak period
(C) Deficiency in cash during normal period and Deficiency in cash during peak
period
(D) Surplus during normal and peak periods.
ANS (C)
175. On an average, accounts receivables are collected after 60 days,
inventories have an average of 90 days and accounts payable are paid 30 days
after they arise. The firm spends a total of Rs.1,50,90,000 annually at a
constant rate. Ascertain the minimum amount of Cash to be maintained to meet
payments as they become due, assuming 360 days a year.
(A) Rs.50,03,000
(B) Rs.50,30,000
(C) Rs.53,00,000
(D) Rs.53,33,000
ANS (B)
176. On an average, accounts receivables are collected after 60
days, inventories have an average of 90 days and accounts payable are paid 30
days after they arise. The firm spends a total of Rs.1,50,90,000 annually at a
constant rate.Calculate the savings to be effected by reducing an average age of
receiable to 50 days. The firm earns 10% on investments.
(A) Rs.42,319
(B) Rs.42,913
(C) Rs.41,913
(D) Rs.41,319
ANS (C)
177. The following are the extracts formulas Trial Balance of PQLtd on 31.3.2017
| Debit (in Rs) | Credit (in Rs) | |
| Provision for Tax (2015-16) Advance Tax paid for 2015-2016 Advance Tax Paid for 2016-17 Tax deducted at source 2016-17 P&L A/C (2015-16) |
- 3,60,000 2,00,000 20,000 4,00,000 |
4,00,000 |
The assessment for the year 2015-16 was finalised during the year 2016-17
The Total Tax liabilities for the that year was fixed at Rs 4,40,000. The net
profit earned by the Company during 2016-17 before tax amount to Rs
8,00,000 The company is in 35 % Tax bracket ( inclusive of any surcharge
and cess.)
(A) (Extracts) Balance Sheet as on 31.3.2017
| Liabilities (in Rs) | Assets (in Rs) | ||
| P&L Appropriation Account Provision for Tax |
8,80,000 |
Advanced Tax paid TDS |
2,00,000 |
(B) (Extracts) Balance Sheet as on 31.3.2017
| Liabilities (in Rs) | Assets (in Rs) | ||
| P&L Appropriation Account Advance Tax |
8,80,000 |
Advanced Tax paid TDS |
2,80,000 |
(C) (Extracts) Balance Sheet as on 31.3.2017
| Liabilities (in Rs) | Assets (in Rs) | ||
| Provision for Tax TDS |
2,80,000 |
Advanced Tax paid P&L Appropriation Account |
2,00,000 |
(D) (Extracts) Balance Sheet as on 31.3.2017
| Liabilities (in Rs) | Assets (in Rs) | ||
| P&L Appropriation Account |
8,80,000 |
Provision for Tax Advanced Tax paid TDS |
2,80,000 |
179. Fixed assets are depreciated over their useful life.
Which of the following concepts favours this –
(A) Cost concept
(B) Matching concept
(C) Going concern concept
(D) Business entity concept
ANS (C)
180. mount spent on advertisement campaign whose benefits can be
drawn in three years, to be treated as –
(A) Capital expenditure
(B) Revenue expenditure
(C) Deferred revenue expenditure
(D) None of these
ANS (C)
181. Aggregate of all debit and credit balances of a ledger is
called –
(A) Profit and loss account
(B) Trial balance
(C) Balance sheet
(D) Working capital summary
ANS (B)
182. A company buys stationery products on credit basis. The entries
will be –
(A) Cash Dr. To stationery credit
(B) Bank Dr. To creditors cr.
(C) Stationery A/c Dr. To creditors cr.
(D) Stationery A/c Dr. To Bank
ANS (C)
183. Ashok is proprietor of ABC Trading. He paid Mr. Bose Rs. 5000/- from
his personal bank account to settle some loan of ABC Trading. The accounting
entry will be –
(A) Mr. Bose A/c Dr. To Capital A/c cr.
(B) Mr. Bose A/c Dr. To Bank A/c cr.
(C) Cash A/c Dr. To capital A/c cr.
(D) Bank A/c Dr. To debtors A/c cr.
ANS (A)
184. ABC Traders pays a loan taken from Mr. Bose from company
accounts through cheque. The entry in ABC Traders will be –
(A) Mr. Bose (Loan A/c) Dr. To Bank A/c cr.
(B) Loan A/c Dr. To Loan Payment A/c cr.
(C) Cash Dr. To Bank A/c cr.
(D) Mr. Bose Dr. to Loan Payment A/c Cr.
ANS (A)
185. When assets increase –
(A) Asset account is credited
(B) Asset A/c is Debited
(C) Asset account is debited and credited
(D) None of these
ANS (B)
186 . Cash Down Payment
: 25%
Three annual
instalment of Rs 1,02,000; Rs.93,000 and Rs,84,000 commencing from the end of
the year
Rate of interest to
be charged by the vendor : 12% p.a
The Cash price of
the asset sold under H.P System is :
(A) Rs.4,00,000
(B) Rs.3,98,000
(C) Rs.3,00,000
(D) Rs.2,07,000
ANS (C)
187. Entrance Fees received during the year 2012-13 Rs.4,00,000. 60%
of the entrance fees is to be capitalized. Amount to be shown in I& E A/c for
the year ended March 31, 2013 is:
(A) Rs.2,40,000
(B) Rs.4,00,000
(C) Rs.1,60,000
(D) None of these
ANS (C)
188 .
| Particulars | Rs. | |
| Goods sent to branch Goods received by Branch Branch A/C H.O. A/C |
12,00,000 11,70,000 3,00,000 2,00,000 |
(H.O. Cr.) (Branch Dr.) (Dr. In H.O.) (Cr . in Branch) |
(A) Rs.30,000
(B) Rs.1,00,000
(C) Rs.1,30,000
(D) Rs.70,000
ANS (D)
189 An amount of Rs.12,000 withdrawn by the owner for personal use
was debited to Salaries. Which one of the following will be the rectification
entry?
(A)
Drawing
Dr
12,000
To salaries
A/C
12,000
(B)
Salaries
Dr
12,000
To Cash
12,000
(C) Drawing
Dr
12,000
To Cash
12,000
(D) None of these
ANS (A)
190. What is the entry passed for Closing Stock when closing
stock figure does not appear in trail balance?
(A)
Closing Stock A/C
Dr
To Trading and P&L A/C
(B)
Trading and Stock P&L A/c
Dr
To Closing Stock
(C)
Purchase
Dr
To Closing Stock
(D) None of these
ANS (A)
191. Which of the following is a Capital Expenditure –
(A) Freight and cartage on the purchase of new machine
(B) Legal expenses in connection with defending a title to firm’s property
(C) Expenditure on painting of factory shed
(D) Wages paid to machine operator
ANS (A)
192. On 1.1.2012, A Ltd has a stock of bottles valued at Rs.8000. On
1.7.2012, they purchased additional bottles worth of Rs.5000. On Dec, 31, 2012
the entire stock of bottles was revalued at Rs.10,500. What is the amount of
depreciation?
(A) Rs.2500
(B) Rs.4000
(C) Rs.3500
(D) Rs.1300
ANS (A)
193. Which of the following is not a Real Account?
(A) Outstanding rent A/c
(B) Investments A/c
(C) Cash A/c
(D) Purchases A/c
ANS (A)
194. Which one of the following Assets is not covered under Accounting
Standard 6?
(A) Live Stock-Cattle
(B) Furniture
(C) Machinery
(D) Building
ANS (A)
195 In case of Reducing Balance Method depreciation is calculated on
_______
(A) W.D.V.
(B) Original Cost – Depreciation
(C) Market value
(D) Original Cost
ANS (A)
196.What is the meaning of Depreciable amount?
(A) Cost of Acquisition – Scrap Value
(B) Market Value – Cost of Acquisition
(C) Cost of Acquisition – Market Value
(D) None of these
ANS (A)
197. In January 2011, a company acquired a mines at a cost of Rs.
2,50,000. The estimated reserve of minerals is 25,00,000 tonnes, of which 80% is
expected to be realized. The first year’s raisings are 75,000 tonnes. What is
the book value of mines as on 31 Dec 2011 after charging depreciation under
Depletion Unit method?
(A) Rs.2,40,625
(B) Rs.2,50,625
(C) Rs.2,42,500
(D) Rs. 2,52,500
ANS (A)
198. A company requires an initial investment of Rs 2,00,000 The estimated net cash flow after tax but before depreciation is as follows :
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Net cash inflow (in Rs) |
35,000 0 |
35,000 0 |
35,000 0 |
35,000 0 |
35,000 0 |
40,000 0 |
50,000 0 |
75,000 0 |
50,000 0 |
20,000 0 |
Using 10% as cost of capital compute (P.B) Pay Back Period.
(A) 5.62 years
(B) 5 years
(C) 6 years
(D) 5.51 years
ANS (A)
199. nA firm is evaluating a proposal which requires a cash outlay
of Rs. 2,00,000 at present and of Rs. 1,00,000 at the end of third year from
now. It is expected to generate cash inflows of Rs. 1,00,000, Rs. 2,00,000 and
Rs. 1,00,000, at the end of 1st year, 2nd year and 4th year respectively. Cost
of capital : 10%. Computer Benefit Cost Ratio:
(A) 1.28
(B) 1.08
(C) 1.18
(D) 0.98
ANS (C)
200. A company has Rs 7 Crore available for investment. After evaluation, The four investments project (given below) have positive NPV. All the investment are divisible. to maximise NPV, in which combination the project can be selected :
| Project | Initial investment (in Crore Rs.) |
NPV (in Crore Rs.) |
PI |
| X | 3.00 | 0.60 | 1.20 |
| Y | 2.00 | 0.50 | 1.25 |
| Z | 2.50 | 1.50 | 1.60 |
| w | 6.00 | 1.80 | 1.30 |
(A) Project Z in full and Project W in part i.e. Rs.2.5 crore (Z) + Rs.4.5
crores out of 6 crores (W)
(B) Project W in full and Project X in part
(C) Project W in full and Project Y in part
(D) Project X, Y and Z in full and Project W in part
ANS (A)
201. Which of the following statement is TRUE?
(A) Financial Management deals with two major functions, namely, investment and
financing decisions.
(B) EPS maximisation is the sole objective of financial management.
(C) Agency problem occurs when the management tries to fulfil its own interests
at the cost of the value of the firm.
(D) Profit maximisation and wealth maximisation are essentially the same thing.
ANS (C)
202 Financial management is mainly concerned with:
(A) Arrangement of funds
(B) All aspects of acquiring and utilising means of financial resources for
firm’s activities
(C) Efficient management of every business
(D) None of these
ANS (B)
203. ABC Limited has current sales of Rs.24 lakhs. The company is
planning to introduce a cash discount policy of “2/10 net 30”. As a result, the
company expects average collection period to go down by 10 days and 75% of the
sales opt for the new cash discount policy. If the company’s required return on
investment in receivables is 25%, assess the Net Profit/Loss on such new
introduction.
(A) Net Loss Rs.21,858
(B) Net Profit Rs.21,858
(C) Net Loss Rs.14,000
(D) Net Profit Rs.36,858
ANS (A)
204. Retained Earnings are significantly affected by the:
(A) Dividend policy of the company
(B) Risk involved
(C) Interest rate
(D) All of these
ANS (D)
205. X Ltd. issue 4,00,000 shares of Rs. 10 each at a premium of 20% ( Per
share ). The shares were payble as follows :
Rs. 2 on application
Rs. 5 on allotment (including
premium)
Rs.5 on first and final call.
All the shares were applied for and allotted, All moneys were received
with the exception of first and final call on 10,000 shares which were for
feited 4,000 of these were re-issued as fully paid at Rs.8 per share. Calculate
the amount to be transferred to Capital Reserves A/c.
(A) Rs.12,000
(B) Rs.30,000
(C) Rs.32,000
(D) Rs.20,000
ANS (A)
206. In an organisation profit depends upon
(A) Cost of production
(B) Output quantity
(C) Sales Revenue
(D) All of these
ANS (D)
207. Which one of the following method is not considered for
reduction in cost of production?
(A) Increase in output
(B) Reduction in rejections
(C) Maintaining maximum inventory level
(D) Producing standardised product
ANS (C)
208. Break even analysis is based on the following assumptions
(A) All fixed costs are fixed
(B) All variable costs are variable
(C) Prices of input factors are not constant
(D) Volume of sales and volume of production are equal
ANS (C)
209. Degree of operating leverage depends on
(A) Fixed operating cost
(B) Operating break-even point
(C) Sales variability
(D) Debt – equity ratio
ANS (B)
210. EBIT is actually
(A) Operating profit
(B) Net income
(C) Earnings before taxes
(D) Earnings before depreciation and tax
ANS (A)
211. If total cost of 100 units are Rs. 4000/- and the cost of 105
units are Rs. 4100/- then the increase in total cost of Rs. 100/- is called
(A) Prime cost
(B) Marginal cost
(C) Output cost
(D) Variable overhead
ANS (B)
212. Determine P/V Ratio if sales is Rs. 1,00,000/-, Fixed cost Rs.
60,000/- and loss Rs. 20,000/-
(A) 0.35
(B) 0.4
(C) 0.25
(D) 0.33
ANS (B)
213. Method of determining sales for a desired profit
(A) (Fixed Cost + Profit) / (P/V Ratio)
(B) (Fixed Cost - Profit) / (P/V Ratio)
(C) (Fixed Cost + Profit) * (P/V Ratio)
(D) (Fixed Cost / Profit) / (P/V Ratio)
ANS (A)
214 What will be the BEP if variable cost ratio is 60% and Fixed cost is
Rs. 60,000/-
(A) Rs. 150000
(B) Rs. 200000
(C) Rs. 350000
(D) Rs. 40000
ANS (A)
215. Margin of safety is increased by
(A) Decrease in selling price
(B) Decrease in volume
(C) Decrease in fixed and variable cost
(D) All of these
ANS (C)
216. Fixed cost Rs. 1,00,000/- selling price per unit Rs. 10/-
variable cost per unit Rs. 6/-. If variable cost increases by 10%, the BEP will
(A) Increase
(B) Decrease
(C) No change
(D) Increase by 10%
ANS (A)
217. Amount spent for increasing the earning capacity is called
(A) Capital expenditure
(B) Revenue expenditure
(C) Deferred revenue expenditure
(D) Capital loss
ANS (B)
219. Ideal debt-equity ratio preferred by bank-
(A) 2 : 1
(B) 1 : 3
(C) 1 : 2
(D) 3 : 1
ANS (A)
220. Determine sales if contribution is Rs. 2,10,000/- and P/V ratio
is 30% -
(A) 70000
(B) 700000
(C) 63000
(D) 69000
ANS (A)
221 Assets of a business can be classified as
(A) Only fixed
(B) Only current
(C) Fixed and current
(D) None of these
ANS (C)
222. In the debt-equity ratio, equity refers to
(A) Ordinary share capital
(B) Preference share capital
(C) Reserves
(D) Both ordinary and preference share capital
ANS (C)
223 VRS Ltd. issued a prospectus inviting application for 1,00,000 shares of Rs 10 each These shares were issued at per on the following :
Rs. 3
on a application
Rs. 4
on a allotment
Rs. 2
on a first call
Rs. 1
on a final Call
Application were recieved for 1,20,000. Allotments were made on
the following basis :
(1) To application for 20,000 shares : in
Full
(2) To application for 40,000 shares :
30,000 shares
(3) To application for 60,000 shares :
30,000 shares
All excess amount paid on applications is to be adjusted against the
amount due on allotment . The shares were fully called and paid up except amount
of allotment first and final call not paid by those who applied for 4,000 shares
out of the group applying for 40,000 shares Calculate amount received on
allotment :
(A) Rs.4,00,000
(B) Rs.3,49,000
(C) Rs.3,40,000
(D) Rs.3,31,000
ANS (D)
224. Classics Ltd. issued 4,000 9% Redeemable preference shares of Rs.100
each at par on 1.7.2010 redeemable at the option of the company on or after 30th
June 2016 partly or fully. Redemptions were made out of profits as follows: (i)
600 shares on 30th June 2016 at par (ii) 800 shares on 31st December 2016 at 10%
Premium (iii) Remaining shares on 30th June 2017 at a Premium of 5% by making a
fresh issue of 20,000 equity shares of Rs.10 each at a premium of Rs.1 each.
On 30th June, 2017, the company also decided to capitalize 50% of the
Capital Redemption Reserve for issuing Bonus Shares of Rs.10 each fully paid at
a premium of Rs.2.50 per share. Ascertain the Bonus amount. (i) 600 shares
on 30th June 2016 at par (ii) 800 shares on 31st December 2016 at 10% Premium
(iii) Remaining shares on 30th June 2017 at a Premium of 5% by making a fresh
issue of 20,000 equity shares of Rs.10 each at a premium of Rs.1 each.
(A) Rs. 1,20,000
(B) Rs. 80,000
(C) Rs. 1,00,000
(D) Rs. 60,000
ANS (C)
225. Z Ltd. had 6% Rs.5,00,000 Debentures outstanding in its
books. On 1 April 2016 it had Rs.2,00,000 balance in Debenture Sinking Fund
Investment A/c represented by 8% investment (nominal value) Rs.2,50,000. On
December 2016, it sold Rs.50,000 9% investments at Rs.45,000 and with the amount
on the same date purchased Rs.50,000 own Debentures for immediate cancellation.
Interest date is 31 March 2017 for own debentures as wellas for investments.
Calculate the Profit on sale of investments.
(A) Rs.3,500
(B) Rs.4,000
(C) Rs.2,500
(D) Rs.2,000
ANS (D)
226. When the same set of books is continued, amounts realised from the
proceeds of assets taken over by partner will be distributed:
(A) 1 : 1 (i.e. equal)
(B) final claim
(C) profit sharing
(D) capital
ANS (B)
227. Which of the following statement is NOT TRUE?
(A) Basis of apportionment for Gross Profit/Loss is sales ratio/weighted sales
ratio
(B) Variable expenses that vary with sales will be apportioned on the basis of
Sales ratio/weighted sales ratio.
(C) Basis of apportionment for all fixed expenses is time ratio / weighted time
ratio
(D) Expenses that are explicitly related to pre- or post-incorporation period
will be apportioned on the basis of
ANS (D)
228. CC Ltd. was formed on 1 October 2015 to acquire the business
of Best Friends & Co. with effect from 1 April 2016. When the company’s first
accounts were prepared on 31 March 2017, the following were noted:
(i) Sales for the year Rs.2,40,000
(ii) Sales in April, May, July and August were only 50% of the annual average.
(iii) Sales in November, December and March were twice the annual average.
Compute the weighted sales ratio.
(A) 1 : 5
(B) 2 : 9
(C) 3 : 7
(D) 3 : 5
ANS (C)
229. From the following particulars, compute the net profit
available to determine the remuneration to a full time director of a company.
The p&l A/c of the company
showed a net profit of Rs 10,00,000 after taking into account the following
items :
1) Depreciation (Including Special depreciation of
Rs 10,000) :
Rs. 25,000
2) Provision for Income Tax :
Rs. 50,000
3) Donation to political parties :
Rs. 10,000
4) Ex-gratia payment to a worker :
Rs. 5,000
5) Capital profit on sale of assets :
Rs. 3,000
(A) Rs.10,68,000
(B) Rs.10,62,000
(C) Rs.10,65,000
(D) Rs.10,77,000
ANS (B)
230. Material cost is Rs. 12, Sale price Rs. 15, Labour Rs. 5, Electricity
Rs. 2 per unit. The contribution will be
(A) Rs. 4
(B) Rs. (-) 4
(C) Rs. 3
(D) Rs. (-) 2
ANS (B)
231. 02Determine contribution if sales is Rs. 2,50,000 and P/V ratio
is 30%
(A) Rs. 75000
(B) Rs. 85000
(C) Rs. 105000
(D) Rs. 25000
ANS (A)
232 If break-even number of units are 200 and fixed cost is Rs.
58000 then contribution margin per unit will be –
(A) 2900
(B) 290
(C) 11600
(D) 116
ANS (B)
233. If contribution margin is Rs. 800/- per unit and break-even per
unit is Rs. 50/- then fixed cost is –
(A) Rs. 40,000
(B) Rs. 160000
(C) Rs. 35000
(D) Rs. 80000
ANS (A)
234. What will be the BEP if P/V Ratio is 40% and Fixed cost is Rs.
60,000/-
(A) Rs. 2,00,000
(B) Rs. 1,50,000
(C) Rs. 3,00,000
(D) Rs. 2,50,000
ANS (B)
235. If a company issues bonus shares, the debt-equity ratio will -
(A) be affected
(B) be unaffected
(C) be Improved
(D) not change
ANS (C)
236. Quick Asset do not include-
(A) Govt. bonds
(B) Advance for supplies
(C) Book debts
(D) Inventories
ANS (D)
237 A shopkeeper makes 14% profit by selling a cycle at Rs. 2850/-.
What will be the sell price if he wants to make 8% profit –
(A) Rs. 2500
(B) Rs. 2700
(C) Rs. 2850
(D) Rs. 2600
ANS (B)
238. Operating performance is measured by –
(A) Margin on sales
(B) Asset turnover
(C) ROE
(D) ROTA
ANS (D)
239. ABC has 8% return on total assets and net profit margin of 5%.
If total assets are Rs. 3,00,000 what are its salesABC
(A) Rs. 480000
(B) Rs. 300000
(C) Rs. 130000
(D) Rs. 490000
ANS (A)
240. P/V ratio 20%, sales Rs. 5,00,000 . contribution will be –
(A) 1000000
(B) 100000
(C) 1000
(D) 100
ANS (B)
241 If total cost of 25 units are Rs. 2500 and cost of 30 units are Rs.
3000. Then variable cost per unit will be –
(A) 100
(B) 1000
(C) 28
(D) 67
ANS(A)
242. The return on investment is calculated as –
(A) Net profit before interest,tax and dividend /capital employed
(B) Net profit after interest, tax and dividend / shareholders fund
(C) Net profit/no of equity shares
(D) Return on investment/net profit ratio
ANS (A)
243. Acid test ratio should normally be –
(A) 2:1
(B) 1:1
(C) 1:2
(D) 2:2
ANS(B)
244. Equation for debt-equity ratio is –
(A) Long term debt / equity capital
(B) Liquid asset/current liability
(C) Current assets/ current liabilities
(D) Net profit / net sales
ANS (A)
245. Change in current assets results in working capital –
(A) Decrease
(B) Increase
(C) No effect
(D) None of these
ANS (A)
246 In which of the following methods of depreciation, amount of
depreciation always reduce year by year?
(A) Written down value method
(B) The revaluation method
(C) Machine hour-rate method
(D) Straight line method
ANS(A)
247. What is BOM under Stores Accounting?
(A) Bill of Materials
(B) Bill of Maintenance
(C) Board of Management
(D) Bin of Materials
ANS(A) (A
248. The stores which have significant value when purchased but
rapidly loss their value/ relevance with the lapse of time and have very little
or negligible disposal value. This type of stores falls under which category?
(A) LTAS
(B) NCS
(C) CS
(D) None of these
ANS (A)
249. "It is a debt owed to the firm by customers arising from sale
of goods or services in ordinary course of business." It defines:
(A) Accounts receivable
(B) Cash credit
(C) Accounts payable
(D) Bank overdraft
ANS (A)
250. At the time of closing of books of accounts there should
letter of confirmation required on bank's letterhead for the bank balance shown
in balance sheet, also one letter of confirmation from the management of company
is required for cash balance shown in balance sheet at the end of the accounting
period.This is required as per the guidelines of :
(A) The Companies (Auditor's Report) Order 2003
(B) The Income Tax Act, 1961
(C) Employee's Provident Fund Act
(D) The Companies Act, 1956
ANS(A)
251. Which of the following is not an intangible asset?
(A) Computer equipment
(B) Goodwill
(C) Patent
(D) Trade mark
ANS (A)
252. In a particular month, X worked for 230.40 hours in total.
Overtime hours were 72% less than regular hours.Overtime hours were paid 60%
more than regular hours. If his total salary for the month is Rs.5212.80,
what is rate per overtime hour?
(A) Rs.32/hour
(B) Rs.22.625/hour
(C) Rs.30/hour
(D) Rs.20/hour
ANS (A)
253. Consider following statements :
1) Cash discount is recorded in
the books in case of credit sales.
2) Cash discount is recorded in
the books in case of cash sales.
3) Cash discount is recorded in
the books when the money is actually received paid
4) Cash discount is not
recorded in the books.
(A) Only statements (1), (2) & (4) are incorrect
(B) Only statements (2) & (4) are incorrect
(C) Only statements (1) & (2) are correct
(D) Only statements (1), (2) & (3) are incorrect
ANS(A)
254 Agency cost consists of:
(A) Binding cost
(B) Opportunity cost
(C) Structuring cost such as stock option etc.
(D) All of these
ANS (D)
255. Mr. X deposits every year Rs.1000, 2000, 3000, 4000 and 5000 at 5%
interest p.a. Find the present value.
(A) Rs.15,250
(B) Rs.15,000
(C) Rs.16,041
(D) Rs.17,082
ANS (C)
256. XY Ltd. has current dividend per share of Rs. 5 which has been
growing at an annual rate of 5%. The company is expecting a technological
improvement and cost reduction which will increase the growth of dividend to 10%
forever after two years. Compute the value of equity share of XY Ltd. if the
required rate of return is 15%.
(A) Rs.90.14
(B) Rs.100.374
(C) Rs.94.87
(D) Rs.98.37
ANS (B)
257. Which of the following statement is TRUE:
(A) As per hedging approach, current assets should be financed from long-term
sources.
(B) Trade-off plan, generally, is considered an appropriate financing strategy
of working capital.
(C) There is an inverse relationship between the length of operating cycle of a
firm and its working capital requirements.
(D) Higher net working capital leads to higher liquidity and higher
profitability.
ANS (B)
258. Excessive working capital results in:
(A) Decrease in the profitability of the firm
(B) Unnecessary accumulation of inventories
(C) Liberal credit policy
(D) All of these
ANS (D)
259 Debenture Redemption Reserve (DRR) is created ___________.
(A) by issue of fresh shares
(B) by issue of fresh debentures
(C) out of profits
(D) out of sale proceeds of assets.
ANS (C)
260. At the time of purchase of own debentures, own Debentures Account is
to be debited with:
(A) cum-interest price
(B) face value
(C) ex-interest price
(D) issue price.
ANS (C)
261. ABC Ltd. purchased assets of the book value of Rs. 8,10,000
from another firm. It was agreed that the purchase price be paid by issuing 15%
debentures of Rs.100 each. Find the number of debentures to be issued at a
discount of 10%.
(A) 6,000 debentures
(B) 9,000 debentures
(C) 8,100 debentures
(D) 5,480 debentures
ANS (B)
262. CD Ltd. issued 5,000 12% debentures of Rs.100 each payable at a
discount of 10% repayable after 5 years at a premium of 10%. Compute the loss
amount to be written off every year.
(A) Rs.15,000
(B) Rs.10,000
(C) Rs.16,000
(D) Rs.20,000
ANS (D)
263. A firm uses a continuous billing system that results in an
average daily receipt of Rs.25 lakhs. It contemplates to use concentration
banking system instead of the current system of centralised billing and
collection, thereby it is estimated that such a system could reduce the
collection period of account receivable by 2 days. It is further estimated that
concentration banking would cost Rs.1 lakh annually and 9% can be earned by it
on its investments. It is also estimated that the lock-box system may reduce its
overall collection by 4 days. Calculate the amount to be saved by lock-box
system.
(A) Rs.10.5 lakhs
(B) Rs.11 lakhs
(C) Rs.9 lakhs
(D) Rs.10 lakhs
ANS (D)
264. Proposed Dividend is classified as:
(A) Investing activity
(B) Financing activity
(C) Operating activity
(D) cash-equivalent
ANS(C)
265. R.S. Ltd is considering to purchase a Machine for Rs. 1,20,000 which is likely to yeild the following future benefits in the next five years. The machine salvage value Rs. 20,000
| Year | PAT |
| 1 2 3 4 5 |
10,000 12,000 16,000 7,000 5,000 |
(A) 16.45%
(B) 14.28%
(C) 15.16%
(D) 15%
ANS (B)
266. XPZ Ltd. is considering the purchase of a machine to replace an
existing machine that has a book value of Rs.1,20,000 and can be sold for
Rs.60,000. Cost of new machine is Rs.5,00,000. The salvage value of the old
machine is zero in four years. Assuming 50% tax rate, compute initial cash
outflow.
(A) Rs.4,30,000
(B) Rs.5,00,000
(C) Rs.4,60,000
(D) Rs.5,60,000
ANS (A)
267 A firm is considering to buy one of the following two mutually
exclusive investment projects: (B) Project S: Buy a machine that requires an
initial investment outlay of Rs.2,00,000 and with generate CFAT of Rs.60,000 per
year for 5 years. Project W: Buy a machine that requires an initial investment
outlay of Rs.2,50,000 and with generate CFAT of Rs.54,000 per year for 8 years.
Assume 10% as cost of capital. Calculate the NPV of both the projects. Advice
which project should be undertaken?
(A) S: Rs.38,090: W: Rs.27,460
(B) S: Rs.27,460 : W: Rs.38,090
(C) S: Rs.31,460 : W: Rs.26,090
(D) S: Rs.28,090 : W: Rs.36,460
ANS (B)
268. X Ltd. launched a new product with 15% cost of capital. Assume
the current inflation rate as 4 percent, compute the real rate of discount to
ascertain Cash Flows.
(A) 11.05%
(B) 10.75%
(C) 11.21%
(D) 10.57%
ANS (D)
269. Which of the following statements is TRUE:
(A) Capital budgeting decisions should either reckon the inflation factor in
cash inflows after taxes as well as in cost of capital or exclude it completely.
(B) Intermediate cash inflows are assumed to be reinvested at cost of capital
under NPV method.
(C) CFAT will be deflated by inflation rate to determine real CFAT
(D) All of these
ANS (D)
270 A project costing Rs.28,00,000 is expected to produce annual net
cash benefits (CFAT) of Rs.4,00,000 over a period of 15 years. Determine IRR
through P.B. period.
(A) 0.1528
(B) 0.1482
(C) 0.1428
(D) 0.1501
ANS (C)
271. A project costing Rs.28,00,000 is expected to produce annual net cash
benefits (CFAT) of Rs.4,00,000 over a period of 15 years. Determine IRR through
direct estimation? Use interpolation.
(A) 11%
(B) 11.5%
(C) 12%
(D) 12.5%
ANS (B)
272. From the following details, ascertain the average amount of working capital requirement of XY LTd
| Particulars | Average period of Credit | Estimate for 1st Year |
| Purchase of Materials | 8 Weeks | 39,00,000 |
| Wages Overheads | 1 1/2 Weeks | 20,80,000 |
| Rent, Rates | 3 Months | 1,20,000 |
| Salaries | 1 Months | 6,00,000 |
| Other Overheads | 4 Months | 9,00,000 |
| Sales | Cash | 3,50,000 |
| Credit Sales | 3 Months | 75,00,000 |
| Average Amount of Stocks and W.I.P | 4,50,000 |
(A) Rs.11,15,500
(B) Rs.10,40,700
(C) Rs.12,15,000
(D) Rs.11,85,000
ANS (D)
273. From the following information, Calculate the Working Capital required :
| 1) Average amount locked up in stocks :
(in Rs) stock of stores, materials 13,000 stock of W.I.P. 17,000 stock of finished goods 10,000 2) Average credit given: Local sales : 2 weeks' credit 52,000 Outstanding: 8weeks' credit 2,08,000 Time available for payment : For purchase : 6 Weeks 1,04,000 For wages : 1 Weeks 3,12,000 |
Add : 10 % for contingencies.
(A) Rs.81,400
(B) Rs.90,600
(C) Rs.87,400
(D) Rs.83,600
ANS (A)
274 . PQR sells its products at a Gross Profit of 20 % of sales . from the following information. Calculate the total current Assets on cash-cost basis:
| Sales (at 2 months credits): | Rs.60,00,000 |
| Raw Material : | Rs. 18,00,000 |
| Wages (2 Weeks arrears ) : | Rs. 1,08,000 |
| Manufacturing expenses ( one month's arrears ) : | Rs. 18,00,000 |
| Administration expenses ( two months's arrears:) | Rs. 9,60,000 |
| Sales Promotion Expenses ( payable of 6 month's in advance | Rs. 4,80,000 |
(A) Rs.24,60,000
(B) Rs.21,40,000
(C) Rs.19,40,000
(D) Rs.20,60,000
ANS (D)
275. The share capital of a company consists of 50,000 equity shares of
Rs.10 each and 5,000 preference shares of Rs.100 each, fully called up. Besides,
its security Premium account shows a balance on Rs.10,000 and General Reserve of
Rs.5,00,000. The company decides to buy-back 10,000 equity shares of Rs.12 each.
For this purpose, it utilises the security premium in full and General Reserve
Account to the extent necessary what will be the Journal Entry for transfer of
nominal amount of equity shares bought-back to Capital Redemption Reserve
Account.
(A)
General Reserve A/c
Dr. 1,00,000
To Capital Redemption Reserve A/c
1,00,000
(B)
General reserve A/c
Dr. 1,20,000
To Equity
shareholders A/c
1,20,000
,
(C) Capital Redemption Reserve A/c
Dr. 1,20,000
To Equity
shareholders A/c
1,20,000
(D)
Capital Redemption Reserve A/c
Dr. 1,00,000
To General reserve A/c
1,00,000
ANS (A)
276. Akash Ltd issued 10,000 8% redeemable Preference shares of Rs,100
Each at par on July 1,2010, Redeemable at the option of the company on ot
after 30 june 2016 partly or fully.
Redeemption were made out of profits as :
1) 2,000 shares on 30 June 2016 at par
2) 2,500 shares on 31 December 2016 at 10% premium
3) Remaining shares on 30 June 2017 at a premium of 5% making fresh issue
of a 4,000 equity shares of Rs 100 each at a premium of 10%
On june 30,2017, the company also decided to capitilized 50% of the capital
redeemption Reserve by issuing bonus shares of Rs.10 Each fully paid at a
premium of Rs. 2 per share.
Ascertain the amount of bonus .
(A) Rs.6,00,000
(B) Rs.4,50,000
(C) Rs.3,00,000
(D) Rs.5,00,000
ANS (C)
277. ABC Ltd. employes a manger who is entiled to a salary of Rs 2,40,000
per month and in addition to a commition of 2% of the net profit of the company
before such salary and commision
The P&L A/c for the company's financial year ending 31.3.2017 as follows
|
Rs. In '000 |
Rs.In '000 |
||
| To General expenses To Staff Salaries To Exgratia payment To Donation To Depreciation To Manager's Salary To Commission to manager ( on account ) To income Tax To Balance C/o |
25,20, |
By Gross profit By Subsidy By profit on sale of machinery (different between price realized and WDV) |
2,64,00 |
|
2,90,000 |
The amount realized on sale of machinery was Rs.64 lakhs while the
cost was Rs.60 lakh . The company has provided depreciation as per Schedule XIV.
The Affective capital of a company Rs.50.Crores
Calculate the commission STILL TO BE PAYABLE to the manager
.
(A) Rs.80,000
(B) Rs.8,00,000
(C) Rs.3,60,000
(D) Rs.36,000
ANS (A)
278 Profit on the reissue of forfeited shares are transferred to –
(A) Share capital account
(B) Capital reserves
(C) Profit and loss account
(D) General account
ANS(B)
279. If a share of Rs.100 issued at a premium of Rs.10, on which
Rs.90 (including premium) have been called and Rs.70 (including premium) paid is
forfeited, the capital A/c is to be debited by:
(A) Rs.90
(B) Rs.70
(C) Rs.80
(D) Rs.110
ANS (C)
280. On 31st March 2012 a nationalized bank discounted the following bill:
| Date of Bill | Term of Bill | Discounted | Value of Bill |
| 17 january 2012 |
4 months |
@ 12% p.a |
Rs.10,95,000 |
Discounted amount will be :
(A) Rs.24,000
(B) Rs.36,000
(C) Rs.18,000
(D) Rs.28,000
ANS (C)
281. Fringe Benefit Tax has been omitted from
(A) FY 2010-11
(B) Assessment Year 2010-11
(C) FY 2011-12
(D) Assessment Year 2009-10
ANS (A)
282 Time limit for payment of income tax on distributed income (DDT)
is
(A) Within 14 days from the date of distribution or payment of such income
whichever is earlier
(B) Within 28 days from the date of distribution or payment of such income
whichever is earlier
(C) Within 42 days from the date of distribution or payment of such income
whichever is earlier
(D) Within 90 days from the date of distribution or payment of such income
whichever is earlier
ANS (A)
283. ICDS IX stands for ________.
(A) Borrowing Cost
(B) Inventories
(C) Accounting Policies
(D) Valuation of Assets
ANS (A)
284. Condition of payment of advance tax when such amount exceeds
by________.
(A) Rs. 10000
(B) Rs. 7500
(C) Rs.5000
(D) Rs. 100000
ANS (A)
285. Which one of the following is true about Agreement by a Minor?
(A) Agreement by minor is void ab initio.
(B) Agreement by minor is valid in law
(C) Agreement by minor can be ratified on attaining majority
(D) Agreement beneficial to minor is not valid
ANS (A)
286. tilization order for credit of IGST under GST is
(A) IGST, CGST, SGST/UTGST
(B) CGST, SGST/UTGST, IGST
(C) SGST/UTGST, IGST, CGST,
(D) SGST/UTGST, CGST, IGST
ANS (A)
287 Anti-Profiteering Clause under GST is included
(A) In order to ensure that business passes on the benefit of reduced tax
incidence on goods or services or both to the consumers
(B) In order to ensure that the traders do not incur loss
(C) In order to ensure that the business is not burdened with higher tax
(D) None of these
ANS (A)
288. Fund under GST means
(A) Consumer Welfare Fund
(B) Trader Welfare Fund
(C) Social Welfare Fund
(D) Senior Citizen Welfare Fund
ANS (A)
289. Input Tax Credit under GST is covered under Section
(A) 2 (63)
(B) 2 (62)
(C) 2(65)
(D) 2(66)
ANS (A)
290. Under GST CPIN is
(A) Common Portal Identification number
(B) Computer Portal Identification number
(C) Common Product Identification number
(D) Computerized Personal Identification number
ANS (A)
291. Example of fiduciary relationship:
(A) Doctor and Patient
(B) Creditor and Debtor
(C) Landlord and Tenant
(D) Husband and Wife
ANS (A)
292 One Person Company is defined under -----------of Companies Act
2013
(A) Section 2(62)
(B) Section 2(63)
(C) Section 2(64)
(D) Section 2(65)
ANS(A)
293. As per the provisions of Companies Act, the individual Auditors are
to be compulsorily rotated every----- years
(A) 5
(B) 10
(C) 3
(D) 2
ANS (A)
294. Maximum number of members for Private Companies is
(A) 200
(B) 50
(C) 250
(D) 500
ANS (A)
295. What is NFRA as given in Companies Act 2013?
(A) National Financial Reporting Authority
(B) Non- Financial Reporting Authority
(C) National Financial Reporting Agency
(D) National Fraud Reporting Authority
ANS (A)
296. Maximum number of Companies, a person can become Director is
(A) 20
(B) 15
(C) 10
(D) 25
ANS (A)
297 DSC =
(A) Digital Signature Certificate
(B) Decoded Signature Certificate
(C) Derivative Signature Certificate
(D) None of these
ANS (A)
298. Filing a copy of winding up petition made with the registrar is to be
made mandatorily within
(A) 60 days
(B) 90 days
(C) 45 days
(D) 15 days
ANS (A)
299. The rate of minimum Alternative Tax for unit located in International
Financial Services Centre is:
(A) 0.185
(B) 0.09
(C) 0.3
(D) None of these
ANS (A)
300. Technical knowhow is
(A) An intangible asset
(B) A tangible asset
(C) A current asset
(D) None of these
ANS (A
