CA - CPT ICAI Model Test Paper - 1 - CA Foundation MCQ

A Bank Reconciliation Statement is prepared to know the causes for the difference between:

While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing inventory of the previous year. In the previous year, closing inventory was valued more by Rs.50,000. As a result

In the absence of any provision in the partnership agreement, profits and losses are shared

Fundamental accounting assumption is

Which of the following errors are not revealed by the Trial Balance?

Which of the following are of capital nature?

Which of the following statement is not true?

Discount on issue of debentures is a __________

Loss on issue of debentures is treated as ____________. 

Dividends are usually paid as a percentage of ______

At the time of death of a partner, firm gets ________ from the insurance company against the Joint Life Policy taken jointly for all the partners

Profit or loss on revaluation is shared among the partners in _______ ratio.

Interest on capital will be paid to the partners of provided for in the agreement but only from ________

The owner of the consignment inventory is________

The parties to joint venture is called_________

The  accommodation bill is drawn_______

The number of production or similar units expected to be obtained from the use of an asset by an enterprise is called as _________

Mr. A purchased a machinery costing Rs. 1,00,000 on 1st October, 2009. Transportation and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively.Dismantling charges of the old machine in place of which new machine was purchased amounted Rs. 10,000. Market value of the machine was estimated at Rs. 1,20,000 on 31st March 2010. While finalising the annual accounts, A values the machinery at Rs. 1,20,000 in his books.

Q. Which of the following concepts was violated by A?

M/s ABC Brothers, which was registered in the year 2000, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm  would qualify to be declared as a sick industrial unit.  The auditor raised objection to this change in the method of depreciation.The objection of the auditor is justified because

If Cost of goods sold is Rs.80,700, Opening stock Rs.5,800 and Closing stock Rs.6,000. Then the amount of purchase will be

Original cost = Rs. 1,26,000. Salvage value = 6,000. Useful Life = 6 years. Annual depreciation under SLM will be

A new firm commenced bus ines s on 1st January, 2009 and purchased goods costing Rs. 90,000 during the year. A sum of Rs. 6,000 was spent on freight inwards. At the end of the year the cost of goods still unsold was Rs.12,000. Sales during the year Rs.1,20,000.What is the gross profit earned by the firm?

X of Kolkata sends out goods costing Rs. 3,00,000 to Y of Mumbai at cost + 25% . Consignor’s expenses Rs. 5,000. 1/10^th of the goods were lost in transit. Insurance claim received Rs. 3,000. The net loss on account of abnormal loss is

A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will be

X draws a bill on Y for Rs. 20,000 for 3 months on 1.1.10. The bill is discounted with banker at a charge of Rs. 100. At maturity the bill return dishonoured. In the books of X, for dishonour, the bank account will be credited by

A sent some goods costing Rs.3,500 at a profit of 25% on sale to B on sale or return basis.B returned goods costing Rs.800. At the end of the accounting period i.e. on 31^st December, 2009, the remaining goods were neither returned nor were approved by him. The inventory sent on approval will be shown in the balance sheet at

A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing interest on capital. Profits apportioned among A and B is