Financial Accounting Guess Paper
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Q.No: 5
A) M/S Humza Brother uses a perpetual inventory system. This system includes a perpetual inventory record for each of the 60 types of the product the company keeps in stock. The following transactions show the purchase and sales of a particular desk chair during September:
Sep 1 balance on hand 50 units cost Rs 60 each
Sep 4 purchase 20 units cost Rs 65 each
Sep 8 sale 35 units
Sep 9 purchase 40 units cost 65 each
Sep 20 sales 60 units
Sep 25 purchase 40 units cost Rs 70 each
Sep 30 sales 5 units
Required:
? LIFO
? FIFO
? Average method
B) profit and loss account (extract) for the year ended 30 june 2005 2001
Profit before tax 1976
Taxation 528
Profit after tax 1448
Transfer to asset replacement reserve 200
Transfer to general reserve 400
Dividends paid and proposed 720 1320
Retained profit for the year 128
Retained profit brought forward 576
Retained profit carried forward 704
Notes: during the year following transaction took place:
? Fixed assets costing Rs 860000 were disposed during the year. The accumulated deprecation on these assets was Rs 680000
? Bonus shares were issued on the bases of one for every three shares already held, i.e. 80000 shares, by using part of the share primum account
? The company made a rights issued on the basis of one shares for each four held. The new shares were offered at a premium of Rs 1 each.
? There had been no additions to free hold property during the year
? The debentures were redeemed in January 2001
Required:
A) cash flow statement for the year ended 30 june 2005
C) how appropriate inventory system is applied here
D) compare 3 years cash flow statement of any organization and highlight the variation in its closing cash balance. Discuses the reason for variation as well.
Q.No: 6
A) A and B were in partnership sharing profit and losses in the proportion three fourth and one fourth respectively. Their balance sheet stood as follows on 30 june 2005
Liabilities
Creditors 37500
Capital
A 40000
B 10000
Assets
Cash at bank 22500
Bills receivable 3000
Book debts 16000
Stock 20000
Furniture 1000
Building 25000
They admitted C into partnership on 30 june 2005 on the following terms:
a) that C pays Rs 10000 as his capital for a fifth share in the future profit
b) that goodwill account for Rs 20000 is raised in the books of the news firm.
c) That stock and furniture are reduce by 10 % and than a 5 % provision in made for likely bad debts. d) That the value of the building is increased by 20 % and
e) That the capital account of A and B and readjusted on the basis of their sharing ratios.
Required: pass the necessary journal entries and give the ledger account and opening balance sheet of the new firm.
B) compare 3 years cash flow statement of any organization and highlight the variation in its shareholders equity section. Discuss the reason for variation as well.
