FINALTERM EXAMINATION
Fall 2009
MGT101- Financial Accounting (Session - 2)
Question No: 1 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Paid up
► Authorized
► Bonus shares
► All are correct options
Question No: 2 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Only Cash Account
► Only Furniture Account
► Cash & Furniture Account
► Only Purchases Account
Question No: 3 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Pass Book
► Cash Book
► Purchase Book
► Sales Book
Question No: 4 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Profit & Loss Account
► Cash Flow Statement
► Balance Sheet
► Income & Expenditure Account
Question No: 5 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Franchise rights
► Goodwill
► Patents
► Land
Question No: 6 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Furniture account
► Cash account
► Business account
► Bank account
Question No: 7 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Rs. 5,000
► Rs. 10,000
► Rs. 15,000
► Rs. 20,000
Question No: 8 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Beginning inventory + Purchases – Work in Process
► Beginning inventory + Purchases - Sales
► Beginning inventory + Purchases - Ending inventory
► Ending inventory + Purchases - Beginning Inventory
Question No: 9 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Prime cost
► Conversion cost
► Sunk cost
► Opportunity cost
Question No: 10 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Total factory cost + Opening work in process + Ending work in process
► Total factory cost + Opening work in process – Ending work in process
► Total factory cost - Opening work in process + Ending work in process
► Ending work in process +Total factory cost – Opening work in process
Question No: 11 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Depreciable assets
► Current assets
► Liquid assets
► Floating assets
Question No: 12 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Date
|
Item
|
Quantity
|
Cost/Unit
|
Total
|
2007Jan. 2
|
Opening inventory
|
100
|
Rs.18.00
|
Rs.1,800
|
Mar. 4
|
Purchase
|
400
|
19.00
|
7,600
|
May 8
|
Purchase
|
800
|
20.00
|
16,000
|
Nov. 3
|
Purchase
|
500
|
21.00
|
10,500
|
Four hundred units are unsold, Use the FIFO method of inventory costing and determine the value assigned to the 400 units on hand at the end of the period.
► Rs.7, 500
► Rs.7, 978
► Rs.8, 000
► Rs.8, 400
Question No: 13 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Left or credit side of the account
► Right or debit side of the account
► Left or debit side of the account
► Right or credit side of the account
Question No: 14 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Appreciation
► Depreciation
► Fluctuation
► None of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Particulars
|
Rs.
|
Assets
|
?
|
Owner's equity
|
1,50,000
|
Liabilities
|
1,00,000
|
► Rs. 49,000
► Rs. 55,000
► Rs. 50,000
► Rs. 2, 50,000
Question No: 16 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Particulars
|
Rs.
|
Assets
|
8,20,000
|
Owner's equity
|
3,80,000
|
Liabilities
|
?
|
► Rs. 1, 98,000
► Rs. 49,000
► Rs. 55,000
► Rs. 4, 40,000
Question No: 17 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Cash at bank
► Bank overdraft
► Overpayment to creditors
► Cash in hand
Question No: 18 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► A foreign currency account
► A current account
► A saving account
► All of the given options
Question No: 19 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Particulars
|
Rs.
|
Bad debts (from trial balance)
|
1,600
|
Provision for doubtful debts (old)
|
2,000
|
Current year’s provision (new)
|
800
|
► Rs. 400
► Rs. 800
► Rs. 2,000
► Rs. 2,400
Question No: 20 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)
► Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)
► Provision for doubtful debts a/c Rs. 1,600 (Dr) & Profit & Loss a/c Rs. 1,600 (Cr)
► Profit & Loss a/c Rs. 1,600 (Dr) & Provision for doubtful debts a/c Rs. 1,600 (Cr)
Question No: 21 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Credit sale only
► Cash sale only
► Credit purchase only
► Both Credit sales and Credit purchase
Question No: 22 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Details of loyal clients
► Customer attitude of payments
► Complete history of transactions of business clients
► Picture collectively instead of individually
Question No: 23 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► P’s account
► Purchases return account
► Sales account
► Purchases returns account and sales account
Question No: 24 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► A’s account only
► Sales account only
► Purchase returns account and sales account
► Purchases account only
Question No: 25 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Only Cash Account
► Only P’s account
► Only Q’s account
► Both of Mr. P's & Mr.Q's Account
Question No: 26 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Bank Account (Dr.) and Debtor's Account (Cr.)
► Debtor's Account (Dr.) and Bank Account (Cr.)
► Dishonored Cheque Account (Dr.) and Bank Account (Cr.)
► Creditor's Account (Dr.) and Bank Account (Cr.)
Question No: 27 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Particulars
|
Rs.
|
Closing value of stock
|
40,000
|
Write off Bad debts (given in adjustments)
|
2,400
|
Sundry Debtors (given in trial balance)
|
33,200
|
Provision is created on Debtors at 10%
|
Identify the Total amount deducted from Sundry debtors.
► Rs. 460
► Rs. 2,400
► Rs. 3,080
► Rs. 5,480
Question No: 28 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Particulars
|
Rs.
|
Closing value of stock
|
40,000
|
Bad Debts (Given in trial balance)
|
500
|
Old provisions (Given in trial balance)
|
700
|
Sundry Debtors (Given in trial balance)
|
44,500
|
Provision for doubtful debts be increases by 5%
| |
What will be the amount of new provision
|
?
|
► Rs. 2,225
► Rs. 2,425
► Rs. 1,925
► Rs. 3,025
Question No: 29 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Particulars
|
Rs.
|
Bad Debts (Given in trial balance)
|
500
|
Old provisions (Given in trial balance)
|
700
|
Sundry Debtors (Given in trial balance)
|
44,800
|
If the Provision for doubtful debts has been increased by 5%, which amount of new provision will be shown in Profit & Loss Account?
► Rs. 2,240
► Rs. 2,425
► Rs. 1,925
► Rs. 3,025
Question No: 30 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Administrative expenses
► Selling expenses
► Marketing expenses
► Cost of goods sold
Question No: 31 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Sole-ownership
► Private limited company
► Public limited company
► Partnership
Question No: 32 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Cost of good sold
► Indirect cost
► Selling cost
► Factory over head cost
Question No: 33 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Capital Reserve
► Authorized share capital
► Paid up share capital
► Share premium
Question No: 34 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► It gets certificate of incorporation from registrar of Companies
► It gets certificate of commencement of business from registrar of Companies
► It actually starts its business
► It filed with the Registrar of Companies articles certain documents, like memorandum and articles of association
Question No: 35 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Rs. 6,000
► Rs. 3, 00,000
► Rs. 18,000
► Rs. 3, 18,000
Question No: 36 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► It will be deducted in Income Statement only
► It will be treated as current liability in balance sheet only
► It will be treated as current asset in balance sheet only
► Both it will be deducted in income statement and it will be treated as current liability in balance sheet
Question No: 37 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Rs. 62,500
► Rs. 12,500
► Rs. 10,000
► Cannot be calculated with the help of given data
Question No: 38 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Asset
► Liability
► Revenue
► Deferred expense
Question No: 39 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Book Value
► Residual Value
► Fair Value
► Break up Value
Question No: 40 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► A debit balance in both the bank statement and the cash book
► A credit balance in the bank statement but as a debit balance in the cash book
► A credit balance in the cash book but as a debit balance in the bank statement
► A credit balance in both the bank statement and the cash book
Question No: 41 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Profit
► Revenue
► Expense
► Asset
Question No: 42 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Left side or debit
► Left side or credit
► Right side or debit
► Right side or credit
Question No: 43 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Left side or credit
► Left side or debit
► Right side or debit
► Right side or credit
Question No: 44 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Error of commission
► Error of omission
► Error of original entry
► Error of principle
Question No: 45 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► It is proof that no transaction was completely omitted from the ledger during the posting process
► It is proof that the correct debit or credit balance has been computed for each account
► It is proof that the ledger is in balance
► It is proof that transactions have been correctly analyzed and recorded in the proper accounts
Question No: 46 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Assets exceed Expenditure
► Income exceeds Expenditure
► Cash Inflow exceeds Cash Outflow
► Income exceeds Liabilities
Question No: 47 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► 1:2
► 2:3
► 3:2
► 3:1
Question No: 48 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Income tax payable
► Prepaid income tax
► Income tax expense
► Income tax paid
Question No: 49 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Rs.23,000
► Rs.28,000
► Rs.33,000
► Some other amount
Question No: 50 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► State Bank of Pakistan
► Security and Exchange Commission of Pakistan
► Supreme Court
► Stock Exchange
Question No: 51 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Capital reserve
► General reserve
► Revaluation reserve
► None of the given options
Question No: 52 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Prospectus
► Articles of association
► Memorandum of association
► None of the given options
Question No: 53 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Ability to pay cash dividends in the future
► All of the given options
► The ability to generate future cash flows
► The liquidity of the business
Question No: 54 ( Marks: 1 ) - Please choose one
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
► Receivables
► Receipts from Capital
► Current and intangible assets
► Cash equivalents
Question No: 55 ( Marks: 3 )
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
1. The entrance or exit of some (new) partner
2. Withdraw by partner(s)
3. Additional Investment by the partner(s)
4. Profit/Loss
Question No: 56 ( Marks: 5 )
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
1. It is a legal entity created by law and hence has its own recognition, good will and brand equity etc.
2. It is a wide form of business and hence a formal approach for various partners/investors to come and work for the same objectives in an organized form.
3. Liability limited to company assets only. Investors/partners do not personally liable for any loss or in state of bankrupty.
4. Being a legal entity, easy to get loans or gather funds from public (for public limited companies only) or financial institutes.
5. Being a legal entity, it can enjoy more opportunities for mega projects and trade/operations opportunities in international markets on its on behalf.
Question No: 57 ( Marks: 5 )
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Required:
What will be the amount of discount received by the company?
Also show the journal entries
Solution:
(A)
Discount Received= (150,000-20,000) x (2/100) = 2600
(B)
Particulars Dr. Cr.
Entry for Purchase
Goods 150,000
A/P 150,000
Entry for Return
A/P 20,000
Goods 20,000
While making Payment (@ 2% discount = 2600)
A/P 130,000
Discount income 2,600
Cash 127,400
Question No: 58 ( Marks: 10 )
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
The items appearing in the trial balance are bad debts Rs. 300, provision for bad debts Rs. 350 and sundry debtors Rs. 12,000. It is required to increase the provision for bad debts to 5% on sundry debtors.
Question No: 59 ( Marks: 10 )
![](file:///C:/DOCUME%7E1/Shahid/LOCALS%7E1/Temp/msohtml1/01/clip_image002.gif)
Tinker Corporation
Trial Balances
December 31, 2007
| ||||
Unadjusted
|
Adjusted
| |||
Debit
Rs.
|
Credit
Rs.
|
Debit
Rs.
|
Credit
Rs.
| |
35,200
|
35,200
| |||
Accounts receivable
|
29,120
|
29,120
| ||
Unexpired insurance
|
1,200
|
600
| ||
Prepaid rent
|
5,400
|
5,400
| ||
Office supplies
|
680
|
380
| ||
Equipment
|
60,000
|
60,000
| ||
Accumulated depreciation: equipment
|
49,000
|
50,000
| ||
Accounts payable
|
900
|
900
| ||
Notes payable
|
5,000
|
5,000
| ||
Interest payable
|
200
|
200
| ||
Salaries payable
|
-
|
2,100
| ||
Income taxes payable
|
1,570
|
1,570
| ||
Unearned revenue
|
6,800
|
3,800
| ||
Capital stock
|
25,000
|
25,000
| ||
Retained earnings
|
30,000
|
30,000
| ||
Fees earned
|
91,530
|
94,530
| ||
Advertising expense
|
1,500
|
1,500
| ||
Insurance expense
|
6,600
|
7,200
| ||
Rent expense
|
19,800
|
19,800
| ||
Office supplies expense
|
1,200
|
1,500
| ||
Repairs expense
|
4,800
|
4,800
| ||
Depreciation expense: equipment
|
11,000
|
12,000
| ||
Salaries expense
|
26,300
|
28,400
| ||
Interest expense
|
200
|
200
| ||
Income taxes expense
|
7,000
|
7,000
| ||
210,000
|
210,000
|
213,100
|
213,100
|
Journalize the five adjusting entries that the company made on December 31, 2007.
Solution:
Date Particular Dr. Cr.
Dec 31 Insurance expense 600
to Unexpired insurance 600
Dec 31 Office Supplies Expense 300
to Office Supplies 300
Dec 31 Depreciation Expense-Equip. 1000
to Accumulated depreciation-Equip. 1000
Dec 31 Salaries Expense 2100
to Salaries Payable 2100
Dec 31 Unearned revenue 3000
to Fee Earned 3000
No comments:
Post a Comment