MGT101 Final Term Past Paper 4

MIDTERM EXAMINATION · Fall 2008 · MGT101- Financial Accounting (Session - 2)

Q1. Rs. (1 marks)

Opening written down value of machine 1,00,000 Cost of new machine purchased during the year 50,000

Depreciation during the year 21,000 Closing written down value (WDV)

1. Rs. 1, 29,000
2. Rs. 1, 50,000
3. Rs. 1, 21,000
4. Rs. 71,000

Correct answer: Rs. 1, 29,000

Q2. Find out the missing value of an Accounting Equation with the help of given data: (1 marks)

Owner’s equity Rs. 22,500 Total Liabilities Rs. 80, 385 Cash in hand Rs. 1,000 Cash at bank Rs. 2,000 Debtors Rs. 500

1. Rs. 1, 02,885 other assets
2. Rs. 1, 02,885 other liabilities
3. Rs. 99,885 current liabilities
4. Rs. 99,385 other assets

Correct answer: Rs. 99,385 other assets

Q3. Bank Reconciliation Statement is prepared by: (1 marks)

1. Bankers
2. Accountant of the business
3. Statutory auditor
4. Manger

Correct answer: Accountant of the business

Q4. Bank Reconciliation Statement is: (1 marks)

1. A memorandum statement
2. A ledger account
3. A part of cash book
4. A part of journal

Correct answer: A memorandum statement

Q5. Expenditures incurred anually on renewal of patent are known as: (1 marks)

1. Revenue Expenditures
2. Capital Expenditures
3. Financial Expenditures
4. Operating Expenditures

Correct answer: Revenue Expenditures

Q6. Rs. (1 marks)

Opening stock of raw material 100,000 Closing stock of raw material 85,000 Purchases of raw material during the period 200, 000

Cost of Material Consumed

1. Rs. 205,000
2. Rs. 215,000
3. Rs. 220,000
4. Rs. 225,000

Correct answer: Rs. 215,000

Q7. Cost of asset (1 marks)

Rs. 1,00,000 Life of asset 5 years Depreciation for the each year Rs. 5,000 Sale price after 5 years Rs.15,000 Written Down Value of Asset on 5th year Rs. 75,000 Profit or loss on disposal of fixed asset

1. Rs. 60,000 loss
2. Rs. 75,000 profit
3. Rs. 25,000 loss
4. Rs. 1, 00,000 profit

Correct answer: Rs. 60,000 loss

Q8. Which of the following account will be credited, when the goods are purchased on cash? (1 marks)

1. Stock account
2. Cash account
3. Supplier account
4. Work in process account

Correct answer: Cash account

Q9. If the cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs. 20,000 during the year, what would be the value of Gross Profit? (1 marks)

1. Rs. 15,000
2. Rs. 35,000
3. Rs. 55,000
4. Rs. 60,000

Correct answer: Rs. 35,000

Q10. If the cost of sales is Rs. 60,000, sales are Rs. 95,000 and operating expenses are Rs.20,000 during the year. What would be the Net Profit? (1 marks)

1. Rs.15,000
2. Rs. 35,000
3. Rs. 55,000
4. Rs. 60,000

Correct answer: Rs.15,000

Q11. Which of the following account balance will be shown on debit side of Trial Balance? (It is assumed that all account balances are shown on normal balance). (1 marks)

1. Capital account
2. Sundry creditors account
3. Accounts payable account
4. Cash account

Correct answer: Cash account

Q12. The amount of salary paid to Mr. Sohail should be debited to: (1 marks)

1. Mr. Sohail account
2. Salaries account
3. Cash account
4. Drawings account

Correct answer: Salaries account