MGT101 Final Term Solved Papers 25-33

Paper No:25 · Fall 2008 · Marks: 85

Q1. The area of accounting concerned with reporting financial information to the interested parties is called: (1 marks)

Cost Accounting Financial Accounting Management Accounting Tax Accounting

Q2. when income exceeds expenses in a specific time period is known as: Savings (1 marks)

Net profit Gross profit Operating profit

Q3. Net Profit =? - Expenses (1 marks)

Liabilities Assets Capital Income

Q4. Economic resources owned by a business and expected to benefit for the future operations are called: (1 marks)

Expenses Assets Capital Liabilities

Q5. Mr. A provided the following information from his books of accounts at the end of the month. (1 marks)

Particulars Rs.Cash 100 Accounts Receivable 500 Accounts Payable 200 Bank Loans 1,000 Based on the information provided, what are Mr. A s total liabilities? Rs.200 Rs. 900 Rs. 1200 Rs. 1700

Q6. If the cost of sales is Rs. 60,000, sales are Rs. 90,000 and operating expenses are Rs. 25,000 during the year. What would be the Net Profit? Rs. 5,000 (1 marks)

Rs. 25,000 Rs. 55,000 Rs. 60,000

Q7. If cost of sales is Rs. 95,000, sales are Rs. 200,000 and operating expenses are Rs. 100,000. What will be the net result? (1 marks)

Rs. 5,000 Loss Rs. 5, 000 Profit Rs.1, 95,000 Profit Rs.1, 95,000 Loss

Q8. If the Company ABC has current assets Rs. 100,000, current liabilities Rs. 75,000 and fixed assets Rs. 200,000, what would be the value of working capital? (1 marks)

Rs. 25,000 Rs. 1, 00,000 Rs. 1, 75,000 Rs. 3, 00,000

Q9. Which of the following is (1 marks)

NOT a type of voucher? Journal Voucher Receipt Voucher Payment Voucher Drawings Voucher

Q10. What would be the value of 'cost of goods manufactured' if the total factory cost of the month is Rs. 6,000, opening work in process is Rs. 2,000 and the closing work in process is Rs. 2,500? (1 marks)

Rs. 5,500 Rs. 8,000 Rs. 4,500 Rs. 8,500

Q11. Which of the following asset is NOT depreciated? (1 marks)

Factory Buildings Office Equipment Plant & Machinery Land

Q12. Accounting is the language of: (1 marks)

Business School Proprietor Management

Q13. Increase in an asset is recorded on the: (1 marks)

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

Q14. Opening written down value of machine Rs. 2,00,000 (1 marks)

Cost of new machine purchased during the year Rs. 50,000 Depreciation during the year Rs. 25,000 Closing written down value (WDV) of machines ? Rs. 2, 25,000 Rs. 2, 50,000 Rs. 2, 75,000 Rs. 75,000

Q15. Opening written down value of machine 4,00,000 (1 marks)

Cost of machine purchased during the year 50,000 Depreciation during the year 20,000 closing written down value (WDV) of the Machines

Rs. 4, 30,000 Rs. 4, 50,000 Rs. 4, 70,000 Rs. 70,000

Q16. Which of the following is NOT a function of bank reconciliation statement? (1 marks)

To reconcile the difference between the cash book and the bank statement To check for errors in balance sheet To update omitted entries into the cash book To update omitted entries into the bank statement

Q17. Which of the following account would be credited, when the bad debts are recovered? (1 marks)

Allowance for bad debts a/c Bad debts recovered a/c Doubtful debts a/c Cash a/c

Q18. In which of the following condition(s) DEBT is regarded as BAD (1 marks)

.Bankruptcy of the debtor Disappearance of debtor s business Failure of repeated attempt to collect the debt

Q19. Consider the following data and identify the amount which will be shown in profit & loss account. (1 marks)

Bad debts 3,600 Provision for doubtful debts (old) 6,000 Current year s provision (new) 1,500

Rs. (5,100) Rs. 5,100 Rs. 900 Rs. (900)

Q20. Bad debts written off (given in adjustment) always affect the: Debtors account (1 marks)

Creditors account

Capital account