Doubts on cwa financial accounting paper

1. DUring the yr. 96000 /- was debited as salary in the income and expenditure account. There was outstanding on salary account at the beginning and at the end of the yr were 12000 /-  and 15000 /- respectively. The amount of salary paind shown in receipt and peyment account would be........

A. 84000

B. 81000

C. 93000

D. None of these.

 

2. The capital of a company comprises of equity shares of 10 /- each amounting to 10 lakhs and 10% preference shares of 2 lakhs.  Profit after tax for the year is 4 lakhs. Dividend declared is @ 25% and current  market price of Equity share is 80 /- each. The price - earning ratio is

A. 20times

B. 21.5 times

C. 22.1 times

D. None of these

 

#3. Dual concept in accounting results in the following equation :

A. Capital + Liability = Assets

B. Revenue = Expenses

C. Capital + Profit = Assets

D. Total Assets = Total Liability

 

4. Under which of the following heads is claims against a company not ackowledged as debts shown ?

A. Unsecured loan

B. Current Liability

C. Current assets

D. Contingent Liability

5. Wages incurred by departmental workers of a factory in installing a new machinery is a revenue expenditure . Say tru / false

 

6. Inauguarion expenses on opening a new branch of an existing business will be ____________ expenditure.  (Capital / revenue)

 

7. Trial balance would not disclosure _______  (Error of ommission / ommission of posting)

 

8. Classify the following amounts into Real, Personal, Nominal a/c

A.  Patent Rights a/c

B. Drawings a/c

C. Purchases a/c

D. Prepaid insurance a/c

E. Donation a/c

F. Bank overdraft a/c

Replies (7)

hi, please note the answer

Q.1) 93000

Q.2) 21.5 times

Q.3) Capital + Liability = Assets

Q.4) Current assets

Q.6) Revenue

Q.7) Error of ommission

Agree with above answer, but in question 4 , answer is d) contingent liability.

Capital + Liability = Assets  ------------ this statement is for concept " Balance sheet equation " know. Have a doubt.

Capital+Liability=Assets , is true for dual concept in Accounting.

I think all mentioned answer are ok.

From : Sanju

Accounts Officer

 

Shwetha, could you please upload the Question papers of June 2012.

sure i will.

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