Chartered Financial Accountant Sample Exam Paper(Accounting Quiz - 8)

1. The balance as per bank statement of a company is Rs.12,500 (Dr.). The company deposited two cheques worth Rs.8,500, out of which one cheque for Rs.2,800 was dishonoured which was not entered in the cash book. The credit balance as per cash book is
[A]Rs.21,000
[B]Rs.15,300
[C]Rs.12,500
[D]Rs. 9,700


2. Which of the following is a current liability?
[A]Prepaid expenses
[B]Trade-mark
[C]Discount on issue of shares
[D]Outstanding salaries


3. Purchase of fixed assets on credit is originally recorded in
[A]Purchases book
[B]Ledger
[C]Cash book
[D]Journal proper


4. Which of the following concepts is not considered as basic principle of accounting?
[A]Materiality concept
[B]Cost concept
[C]Consistency concept
[D]Logical concept


5. In contract accounting, the percentage of completion method is an exception to the
[A]Money measurement principle
[B]Going concern principle
[C]Historical cost principle
[D]Revenue recognition principle


6. Consider the following data pertaining to M/s. Pradesh Co. for the year 2011-12:
Cost of goods available for sale (Rs.) 1,00,000
Total sales (Rs.) 80,000
Opening stock of goods (Rs.) 20,000
Gross profit margin (%) 25
Closing stock of goods as on March 31, 2012 was
[A]Rs.80,000
[B]Rs.60,000
[C]Rs.40,000
[D]Rs.36,000


7. During the year 2002-2003, the opening stock and the closing stock of a company were Rs.1,20,000 and Rs.1,00,000 respectively. If the cost of goods sold during the year was Rs.3,40,000, the goods purchased by the company during the year amounted to
[A]Rs.4,60,000
[B]Rs.4,40,000
[C]Rs.3,60,000
[D]Rs.3,20,000


8. Consider the following:
I. Rate of depreciation under the written down method = 20%
II. Original cost of the asset = Rs.1,00,000
III. Residual value of the asset at the end of useful life = Rs. 40,960
The estimated useful life of the asset, in years, is
[A]4
[B]5
[C]6
[D]7


9. During the year 2002-2003, a company paid Rs.1,20,000 as rent. If the outstanding rent as on March 31, 2002 and March 31, 2003 were Rs.24,000 and Rs.36,000 respectively, then the amount of rent charged to profit and loss account during the year was
[A]Rs.1,08,000
[B]Rs.1,20,000
[C]Rs.1,32,000
[D]Rs.1,44,000


10. Which of the following represent(s) personal accounts in accounting parlance?
[A]Sundry creditors
[B]Bank account
[C]Outstanding wages
[D]All of the above


11. XL Ltd. paid wages of Rs.90,000 for construction of building. The journal entry for the transaction is
[A]Debit wages account and credit profit & loss account
[B]Debit wages account and credit cash account
[C]Debit building account and credit profit & loss account
[D]Debit building account and credit cash account


12. Which of the following inventory valuation methods shows higher profits during the period of rising prices?
[A]First-in-First-out method
[B]Last-in-First-out method
[C]Weighted average cost method
[D]Simple average cost method


13. At the time of preparation of final accounts, bad debts recovered account will be transferred to
[A]Debtor’s account
[B]Profit & loss account
[C]Profit & loss adjustment account
[D]Profit & loss appropriation account


14. The rate of interest payable on calls in advance is
[A]10% p.a.
[B]9% p.a.
[C]8% p.a.
[D]6% p.a.


15. The long term investments are accounted for in the balance sheet at
[A]Historical cost
[B]Current market value
[C]Net realizable value
[D]Present value of future cash flows