CA - CPT ICAI Model Test Paper - 4 - CA Foundation MCQ

“Business unit is separate and distinct from the person who supply capital to it”, is based on

State the case where the going concern concept is applied?

If two or more transactions of the same nature are journalised together having either the debit or the credit account common is known as

If the cheque issued is not presented for the payment upto the date of the preparation of the Bank Reconciliation Statement, then the balance as per Pass Book will be

Whenever errors are noticed in the accounting records, they should be rectified

Parties to a bill of exchange are

All the expenditures and receipts of revenue nature go to

A _______ is sent to a customer when he returns the goods.

Noting charges are paid at the time of _______ of a bill.

Depreciation of fixed assets is an example of _______ expenditure.

Interest on drawings is _______ for the business.

An amount of Rs.200 received from A credited to B would affect _______

As per section 12 of Negotiable Instruments Act, which of the following is not a foreign bill?

In _______ method, depreciation is charged by allocating depreciable cost in proposition of the annual output to the probable life-time output.

General reserve at the time of admission of a new partner is transferred to ______.

A suspense account facilitates the preparation of ______  even when the ______ has not tallied.

Recording of a transaction in the ledger is called ______.

Accounting has certain norms to be observed by the accountants in recording of transactions and preparation of financial statements. These norms reduce the vagueness and chances of misunderstanding by harmonizing the varied accounting practices. These norms are

RPG Ltd. purchased equipment from PQR Ltd. for Rs.50,000 on 1^st April, 2009.  The freight and cartage of Rs.2,000 is spent to bring the asset to the factory and Rs.3,000 is incurred on installing the equipment to make it possible for the intended use.  The market price of machinery on 30^th April, 2010 is Rs.60,000 and the accountant of the company wants to disclose the machinery at Rs.60,000 in financial statements.  However, the auditor emphasizes that the machinery should be valued at Rs.55,000 (50,000+2,000+3,000) according to:

Mr. A started a business on 1^st January 2009 with Rs. 5,00,000. During the year he bought goods worth Rs. 1,00,000 on credit and sold 80% of the same goods at profit of 20% on cost.At the end of the year 2009, the amount of opening inventory to be shown in the trial balance of Mr. A will be

Trade receivables on 31^st March 20 10 are Rs.5 5,200 . Further bad debts are Rs.2 00.Provision for doubtful debts are to be made on Trade receivables @ 5% and also provision of discount is to be made on Trade receivables @ 2%. The amount of provision of doubtful debts will be

A firm purchases a 5 years’ lease for Rs. 40,000 on 1^st January. It decides to write off depreciation on the Annuity method, presuming the rate of interest to be 5% per annum.The annuity for it is 0.230975. The amount of annual depreciation will be

The balance of machine on 31^st March 2010 is Rs.72,900 (after charging  depreciation of the year). The machine was purchased on 1st April 2007 charging depreciation @10% p.a. by diminishing balance method. The cost price of the machine as on 1^st April 2007 would be

On May 01, 2009, Y Ltd. issued 7% 40,000 convertible debentures of Rs.100 each at a premium of 20%. Interest is payable on September 30 and March 31, every year.Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to Profit and Loss Account for the year ended March 31, 2010 will be

A company cannot issue redeemable preference shares (not issued for infrastructure projects) for a period exceeding

E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application is Rs.2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be

Z Ltd. issued 10,000 shares of Rs.10 each. The called up value per share was Rs.8. The company forfeited 200 shares of Mr. A for non-payment of 1st call money of Rs.2 per share. He paid Rs.6 for application and allotment money. On forfeiture, the share capital account will be _________.