0807 FA (CFA510) - Question Paper Financial...

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1 Question Paper Financial Accounting (CFA510): July 2008 Answer all 72 questions. Marks are indicated against each question. Total Marks : 100 1. An amount posted on the credit side of a nominal account of a business signifies (a) A loss to the business (b) An expense to the business (c) A gain or revenue to the business (d) An acquisition of assets by the business (e) A payment to the creditor of the business. (1 mark) <Answer> 2. Returns outward book is maintained by a business to record (a) Return of goods purchased on cash (b) Return of goods sold on credit (c) Return of goods purchased on credit (d) Return of fixed assets purchased on credit (e) Return of fixed assets sold on credit. (1 mark) <Answer> 3. The impact of salary paid by cash on the assets, profit and total liabilities of a firm, will be Assets Profit Total Liabilities (a) No effect Decreases Decreases (b) Decreases No effect Decreases (c) Decreases Decreases Decreases (d) Increases No effect Increases (e) Decreases Increases Decreases. (1 mark) <Answer> 4. Total of sales day book at the end of the month indicates (a) The total sales for the month (b) The total credit sales for the month (c) Total cash sales of the month (d) Total amount due to suppliers (e) Total amount received from credit sales. (1 mark) <Answer> 5. Ledger is also called as (a) Principal book (b) Book of original entry (c) Journal (d) Subsidiary books (e) Profit and loss account. (1 mark) <Answer> 6. Closing stock is generally valued at (a) Cost price (b) Replacement cost (c) Market price (d) Realisable value (e) Cost price or market price whichever is lower. (1 mark) <Answer> 7. Sky Ltd., has the practice of creating provision for doubtful debts @ 8% on debtors. The balance of provision for doubtful debts on April 01, 2007 and March 31, 2008 was Rs.12,000 and Rs.18,000, respectively. During the year 2007-08, the amount collected from debtors was Rs.30,25,000. Credit sales during the year were (a) Rs.30,25,000 (b) Rs.34,00,000 (c) Rs.31,00,000 (d) Rs.32,25,000 (e) Rs.29,50,000. (2marks) <Answer>
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2 8. The provision for discount on debtors is calculated on the amount of debtors (a) Before deducting the provision for doubtful debts (b) Left after deducting the provision for doubtful debts (c) Before deducting the actual bad debts (d) After deducting the actual bad debts (e) After deducting the actual bad debts and the provision for doubtful debts. (1 mark) <Answer> 9. Consider the following information of Thomson Ltd., for the year 2007-08: Opening balance of provision for debtors account Rs. 20,000 Bad debts during the year Rs. 18,000 Closing balance of Sundry debtors Rs.2,65,000 Estimated provision for doubtful debts 4% The net amount to be transferred to profit and loss account was (a) Rs. 8,600 (b) Rs. 9,400 (c) Rs.28,600 (d) Rs.10,600 (e) Rs.12,600. (2marks)
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0807 FA (CFA510) - Question Paper Financial...

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