CA - CPT ICAI Model Test Paper - 3 - CA Foundation MCQ

Financial statements only consider

Which financial statement represents the accounting equation, Assets = Liabilities + Owner’s equity?

A purchased a car for Rs.5,00,000, making a down payment of Rs. 1,00,000 and signing a Rs. 4,00,000 bill payable due in 60 days.  As a result of this transaction

The debts written off as bad, if recovered subsequently are

A withdrawal of cash from business by the proprietor should be credited to:

Contra entries are passed only when

Consignment account is

Economic life of an enterprise is split into the periodic interval as per ________ concept.

Accounting policies refer to specific accounting ________.

Dividends are usually paid as a percentage of ______

Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in ______

The balance of the petty cash is ______.

Interest on capital will be paid to the partners if provided for in the agreement but only from________

A proforma invoice is sent by ________

If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by________.

X draws a bill on Y. X endorsed the bill to Z. ________will be the payee of the bill.

A Company wishes to earn a 20% profit margin on selling price. ________is the profit mark up on cost, which will achieve the required profit margin?

A businessman purchased goods for Rs. 25,00,000 and sold 80% of such goods during the accounting year ended 31^st March, 2010. The market value of the remaining goods was Rs. 4,00,000.  He valued the closing inventory at cost.  He violated the concept of

M/s ABC Brothers, which was registered in the year 2008, 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

E Ltd., a dealer in second-hand cars has the following five vehicles of different models and makes in their inventory at the end of the financial year 2009-2010:

Q. The value of inventory included in the Balance Sheet of the company as on March 31, 2010 was

Original cost = Rs. 1,26,000; Salvage value = Nil; Useful life = 6 years. Depreciation for the first year under sum of years digits method will be

If sales revenues are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000 and operating expenses are Rs.60,000, the gross profit is

Consider the following for Alpha Co. for the year 2009-10:

Q. Closing inventory of goods for the year 2009-10 was

A and B entered into a joint venture and purchased a piece of land for Rs 20,000 and sold it for Rs 60,000 in 2010. Originally A had contributed Rs 12,000 and B Rs 8,000. The profit on venture will be

On 1.1.2010 X draws a bill on Y for Rs. 50,000. At maturity, the bill returned dishonoured as Y became insolvent and 40 paise per rupee is recovered from his estate. The amount recovered is:

Average inventory = Rs 12,000. Closing inventory is Rs.  3,000 more than opening inventory.The value of closing inventory will be

Find the goodwill of the firm using capitalization method from the following information: Total Capital Employed in the firm Rs. 8,00,000 Reasonable Rate of Return 15% Profits for the year Rs. 12,00,000