ae Be ull 51% 10:51 pm xX «a ICMA Pakistan Online Exa.,, < Qa icmap.com.pk ta tangent a @hemap peter a Fumaniog Tine 448405, ‘Question No: 31 o> )_stere ut cam Follovang balances nave been acquited by the accountant of Murad Traders for the tmantial year ended une 30,2017 Mca 0001 QOOO® — 22 SQOO® = i Bese Drawings 11000 ® Rent 5200 a 560 QOQOQ©®@ Postage and statonery 1236, ®QO@O@O®@ Adverising 250 Salaries end veges 10500 MTQ Bad deo 400 ‘towanc for ub obs ‘co ®©@©®@ Accouns ecevabe 51M ‘Accounts payee 3600 Descritive ‘Cash end bank balan 44000 —— ne e® Equpment at cost 180.00 ‘Accumutted depreciation - Equipment 36.000 Murad's capital 50,000 Required: Prepare the ‘tial balance’ for Murad Traders as on June 30, 2017 CsA ms Meck mate ola on ge bee epee aims na ener alacant at arty (8) ‘simp thin ei corr cat okay cas aea & all 50% fl 10:55 pm ICMA Pakistan Online Exa.,, < Q fs icmap.com.pk x Institute of Cost and Management Qhemar Seen ‘Question No: 4 = i z B ~ desertion Salvage value lean estimate of assets value atthe @O@O000 QOOO00®8 ©0008 @O@OOO8 ©O@@OOO z 3 @ ® @ Descriptive ® @ soe ms Meck its male olan ge be epee aims a eer asa at arae (E) ‘pment hv gs ecg conyers carl wing why Scns amr© WhatsApp 14 messages from3 chats | 10:58pm v 3 Tanzeela Altaf _* chapter 17.pd# (20 pages) ICAMPIANS Girls: Iqra Qurieshi $4 Video (2:50) Rk school: +42 311 3010403 Saih I lad cs ‘Question No: 12 sol Eee listen] out cam i i = Desesition Conect 3 8 When goods and services ate sold above cost preg, the outcome is called Beaten sae. © Perens O te @ en @OG000 Q00800 ©0000 @O@O000 ©0060 z 3 @ ® @ Descriptive ® @ Dc AER Th cats rae ln eb septs anti mates a a ena acre sed aro) ‘ijt hei ears a nc aan eeTCO imal (Mock) Question No: 31 << >> Submit Following balances have been acquired by the accountant of Murad Traders for the financial year ended June 30, 2017 Rs. ‘000’ Sales revenue 435,000 Purchases 296,100 Cariage in 2,100 Drawings 11,000 Rent expense 5,200 Insurance 550 Postage and stationery 1,236 Advertising 250 Salaries and wages 10,500 Bad debt expenses 400 Allowance for doubtful debts 400 Accounts receivable 5,144 Accounts payable 3,600 Cash and bank balances 4,000 Inventory 8,520 Equipment, at cost 180,000 Accumulated depreciation - Equipment 36,000 Murad’s capital 50,000 Required: Prepare the ‘trial balance’ for Murad Traders as on June 30, 2017.Question No: 31 Murad Traders Trial Balance as on June 30, 2017 Particulars << > ‘Submit Rs. ‘000° Debit Credit —Select-— —Select-— —Select— —Select— —Select— —Select— —Select— —Select— ~—Select-— ~Select-— —Select-— —Select-—Gi eda Question No: 32 << >> Submit ~ Description Following is the trial balance of Mehran (Private) Limited as at June 30, 2017: Rs.'000" Debit Credit Share capital (450,000 ordinary shares of Rs. 10each) 4500 Retainedeamings 405 Long-term loan 2.200 Trade payables 650 Sales 30,725 Otherincome 1,062 Accumulated depreciation Plant and equipment 1,330 Accumulated depreciation —Motor vehicle 360 Amortization reserves 340 Cash and bank balances 2277 ‘Opening inventory July 01. 2016 900 ‘Administrative expenses 7.450 Distribution costs 6.250 Plant and equipment. at cost 7,000 Motor vehicle, at cost 1.440 ‘Computer software 850 Purchases 14,000 Finance costs 55 Advances to employees 250 Trade receivables 1,100 4472 44572 Additional Information:Fundamentals of Financial Accounting (Mock Question No: 32 << >> Submit Additional Information: « Closing inventory as at June 30, 2017 was Rs. 750,000. ¢ Depreciation isto be provided as follows: = Plant and equipment @ 10% on reducing balance method (allocate 70% depreciation to administration department and 30% to marketing department). - Motor vehicle @ 25% on reducing balance method (allocate 60% depreciation to marketing department and 40% to administration department). + Computer software is to be amortized @ 20% on cost. Computer software was purchased for administration department. « Company obtained a long-term loan from a commercial bank @ 10% per annum on January 01, 2017. The loan is repayable in 16 quarterly instalments of Rs. 137,500 each. The instalments start from July 01, 2017. « The mark-up on long-term loan is payable quarterly i.e., on April 01, July 01, October 01 and January 01. « During finalization of financial statements. it was observed that an amount of Rs. 225.000 fecelved as advance from a customer. was recorded as sales during the period. The goods were to be deliveredin the month of August 2017. Required: Prepare statement of profit or loss for the year ended June 30, 2017. 10Mehran (Private) Limited Statement of Profit or Loss for the year ended June 30, 2017 —Select— > Cost of Sales —Select— 2 —Select— | —Select— ¥| —Select— ¥ Cost of Sales Gross profit —Select-— -| —Select— - —Select— ~| Operating Profit —Select-— v| LLL Rs. ‘000' L HUEGt nancial Accounting (Mock) Question No: 32 L« >> Submit ‘Statement of Profit or Loss for the year ended June 30, 2017 Rs. ‘000’ —Select— i Cost of Sales —Select— % —Select— » —Select— M —Select— » Cost of Sales Gross profit —Select— ¥ —Select— » —Select— 4 Operating Profit —Select— »| Profit for the year2 & Sy Institute of Cost and Management @ ICM AP | Accountants of Pakistan | Constituted under Cost and Management Accountants Act, 1966 Question No: 1 » Submit — Description Correct A firm's bank statement shows that during the month of May 2015, Rs.300 have been debited as bank charges and Rs.200 have been credited on account of dividend income. The balance on 31.05.2015 as per bank statement is Rs. 600 overdrawn. If both the above entries remain unrecorded in the cash book, then what would be the balance as per cash book on 31.05.2015? © Rs. 500 debit @ Rs. 500 credit 0 Rs. 600 credit © Rs. 700 creditQuestion No: 2 << >> Submit - Description Correct Financial statements should be neutral |.e. understated. This concept is known as: gains or losses are neither overstated nor accrual. consistency. going concern. prudence. @ 10 ;O 10Grecian nec hoo) Question No: 3 << >> Submit — Description Correct The cost of an asset is Rs.340,000 and is depreciated under 25% reducing balance method. The asset is disposed off after 2 years for Rs.194,250. The gain or loss on disposal is: oO Rs. 3,000 loss. © Rs. 2,600 loss. @ Rs. 3,000 gain. © Rs. 4,400 gain.UCC elm ee etre mt [ele 9) Question No: 4 << >> Submit - Description Correct Salvage value is an estimate of asset's value at the @ end of its useful life oO beginning of the final year of its use. © end of each accounting period. © None of aboveQuestion No: 5 << >> Submit - Description Correct is an important underlying assumption for preparation and presentation of financial statements. oO Time interval concept © Prudence co} Going concern © RelevancePeru ea sis tee i tulern Question No: 6 << >> Submit — Description Correct If cost of sales is Rs.30,000 and the mark-up is one third, then sales will be eB Rs. 10,000 © As. 13.333 @ As. 40,000 © Rs. 43,333Fundamentals of Ren Question No: 7 << > Submit — Description Correct An asset is disposed off for Rs.22,700 resulting in loss on disposal of Rs. 4,300. The carrying value of the asset is © Rs.9,200 © Rs.13,500 © Rs.18,400 (e\(e\ (-) (-) Aa @ = @ Rs.27,000 bieere ue mi PR els Mulla 9 Question No: 8 «<< > Submit - Description Correct Journal entry to record write-off of an uncollectible account under ‘allowance method’ is given as bad debts expense A/c debit and allowance for doubtful debts A/c credit allowance for doubtful debts A/c debit and bad debts expense A/c credit accounts receivable A/c debit and allowance for doubtful debts A/c credit @®@|O O10 allowance for doubtful debts A/c debit and accounts receivable A/c credit =z ogo £\ =Fundamentals of Financial Accounting (Mock) Re Question No: 9 << [oo Submit | - Description Correct The primary objective of accounting is to provide information for: AVANT ANY OY We © starting business. @® decision making. © record keeping. © None of the above M 3Fundamentals of Financial Accounting (Mock Question No: 10 - Description Which one of the following is not capital expenditure? © Acquisition of production plant oO Painting outside of a new building @ Cost of repair of an existing computer @ Purchase of extra filing cabinets for marketing department >> Submit CorrectEure em atid meer nll m (a felel 9) Question No: 11 << > Submit - Description Correct Which of the following would result from a decrease in the allowance for doubtful debts? © Anincrease in gross profit oO A decrease in gross profit. © Areduction in net profit © An increase in net profitSm ——— —-—--+-+------- Fundamentals of Financial Accounting (Moc! Question No: 12 << >> Submit - Description Correct When goods and services are sold above cost price, the outcome is called : ©) Break-even sales. oO Revenue © Loss @ ProfitFunda tals of Financial Accounting (Mock) Question No: 13 << >> Submit | — Description Correct Cash sales are now returned to business, entry in the books of seller may be: © Debit Cash account and Credit purchase return ) Debit purchase return and Credit Cash account © Debit Cash account and Credit sales return @ Debit sales return and Credit Cash accountQuestion No: 14 << >> Submit - Description Correct Carriage inwards Rs. 75,000 has been recorded in the income statement as an operating expense. As a result ‘ ©) fet profit is understated by Rs. 75,000 @ 9foss profit is overstated by Rs. 75,000 ©) gress profit is understated by Rs. 75,000 oO net profit is overstated by Rs. 75,000Fundamentals of Financial Accounting (Mock) Question No: 15 << >> Submit - Description Correct When an allowance for doubtful debts already exists, but it is subsequently reduced in size, the amount of the decrease is charged as an item of in the income statement. asset liability expense income @©@oooQuestion No: 16 «c >> Submit = Description Correct When an allowance for doubtful debts is created first time, the amount is charged as an expense in the . un-appropriated profit account cash flow statement balance sheet income statement ®oo0o9oQuestion No: 17 - Description Cash book records: © cash payments only. © cash receipts only. @ cash payments and cash receipts. O Neither cash payments nor cash receipts << >> Submit Correctundamentals of Financial Accounting (Mock) Question No: 18 «< >> Submit - Description Correct Accounts payable, accruals and notes payable are listed on balance sheet as © accrued liabilities @ current liabilities © accumulated liabilities © Aon-current liabilitiesuC euler tial lar ete 9] Question No: 19 << >> Submit - Description Correct Telecom Engineering, produces CCTV cameras with accessories. On July 1, 2016, opening balance of its accounts receivable was Rs 50,000. During the year it sold 250 cameras on credit for Rs. 4,750 each. It allowed discounts of Rs. 35,625 to its customers and received cash of Rs. 676,875 from its customers. It was expected that 6% of its accounts receivable at June 30, 2017 may be written off. The value of net accounts receivable at June 30, 2017 should be: © Rs. 474,175 @ Ps. 493,500Fundamentals of Financial Accounting (Mock) Question No: 20 < >> Submit = Description Correct Ashrafi Limited made a profit for the year of Rs. 18,750, after accounting for depreciation of Rs. 1,250. During the year, non-current assets were purchased for Rs. 8,000, receivables increased by Rs. 1,000, inventories decreased by Rs. 1,800 and payables increased by Rs. 350, What was Ashrafi Limited's increase in cash and bank balances during the year? © Rs. 10,650 © Rs. 10,850 © Rs. 12,450 @ Rs. 13,180Fundamentals of Financial Accounting (Moc! Question No: 21 << >> Submit - Description Correct Bank reconciliation statement identifies the following differences between cash book and | bank statement except © errors oO bank charges or interest © profit earned for the period oO timing differencesFundamentals of Financial Accounting (Mock Question No: 22 - Description << >> Submit ‘Correct Sunset Ltd_, gathered the following information during reconciliation of bank statement for the month of July 2017 Rs. Cash balance as on July 31 60,500 Deposits in transit 3,500 Interest credited by bank 1,100 Bank charges for services 50 Outstanding cheques 18,000 Not Sufficient Funds (NSF) cheque 5,000 The adjusted cash balance as on July 31 will be © Rs.32,080 © Ps.29,860 © Rs. 48,950 © Rs. 46,550 R i & a 4 a a > a No onFundamentals of Financial Accounting (Mock) Re Question No: 23 << > Submit | - Description Correct Valiba Equipment purchased a coffee vending machine on January 1, 2012 for Rs. 75,000. The estimated life of the machine was 4 years with the scrap value of Rs.15, 000. The machine was sold on May 31, 2015 for Rs. 18,500, The business uses the straight line method (SLM) for depreciation The profit or loss on disposal was : © Profit Rs.5,250 @ Loss Rs.5,250 Lo & ah ah ah a = © Profit Rs. 3,500 = © Break even value CoQuestion No: 24 — Description Depreciation is a process of: © Asset devaluation © Cost accumulation @ Cost allocation © Asset valuation Financial Accounting (Mock) << >> Submit Correctlatte ul em me uciuec etre leat Ou telel g] Question No: 25 << || oe Submit - Description Correct At the end of the financial year, Tractor & Co had the following non-current assets: Land and buildings at cost Rs. 10.4 million Accumulated depreciation Rs. 0.12 million The Company decided to revalue its land and buildings at the year end to Rs 13.5 million. The revaluation surplus would be: © Rs. 13.50 million @ Rs. 3.22 million Oo Rs. 3.10 million © Rs.13.38 millionae Fundamentals of Financial Accounting (Mock) Question No: 27 << >> Submit — Description Correct Which one of the following is likely to increase the inventory holding period? @ Building up inventory levels in preparation of a sales and marketing campaign later in the year. oO Scrapping of old and obsolete items of inventory oO Only ordering goods from a reliable supplier upon receipt of a customer order © Implementation of effective goods requisitioning and ordering policiesaaa a Fundamentals of Financial Accounting (Mock) Reme Question No: 26 << >> Submit ~- Description Correct = ° From the ledger of Falcon Traders, following information was extracted for the year ending June 30, 2016. Rs. Sales ? Stock as on July 01, 2015 25,000 Purchases ? Discount received 4,500 ‘Stock as on June 30, 2016 32,000 ‘Cost of sales 68,500 Profit on cost 25% MT 1 Sales and purchases for the year ended June 30, 2016 were: @ © Rs.56,875 and 45,500 respectively Des @ %s.85,625 and 80,000 respectively (34 © Rs.81,875 and 66,000 respectively © Rs.74,375 and 59,500 respectivelyeae tesa flag Question No: 28 << > Submit — Description Correct Which one of the following is likely to reduce the trade payables payment period? oO Offering credit customers a significant discount for prompt payment within seven days of receipt of invoice © Paying trade suppliers within seven days of receipt of invoice to obtain a discount © Poor application of credit contro! procedures by a supplier oO An increasing volume of credit purchases during an accounting periodPee aa a Question No: 29 << > Submit - Description Correct Which one of the following Is likely to increase the trade receivables collection period? ©) Offering credit customers a significant discount for prompt payment within seven days of receipt of invoice. © Paying trade suppliers within seven days of receipt of invoice @ Poor application of credit control procedures by a business © Anincreasing volume of credit purchases during an accounting periodFundamentals of Financial Accounting (Mock) Question No: 30 << De Submit - Description Correct R Co had the following details extracted from its statement of financial position: Rs.“000” Inventory 3,800 Receivables 2,000 Bank overdraft 200 Payables 2,000 Based upon the available information, what is the quick (acid test) ratio of R Co? © 2.6:1 @ 09:1 © 08:1 © 18:1G& MEBs 44% G1 11:23 pm ICMA Pakistan Online Exa.,, < Q fs icmap.com.pk a Quemap Seen x ‘Question No: 34 : 3 8 = Desesition Differentiate between capital and revenue expenditure. 05) @O@@OOO QO@O0OO ©0000 @O@OOOO ©O@@OOO z 3 @ ® @ Descriptive ® @ DSA ms Meck ets mate olan ge eb epee aims ac eer ascarid arn (RE) ‘sii jth cei corer car wo as aeGG & NE ll 4% 11:24 pen ICMA Pakistan Online Exa.,, < Q fs icmap.com.pk x Institute of Cost and Management Ohemar Sere" ‘Question No: 35, 5 on ~ desertion 3 8 Explain any five types of erors that occur business transactions. (05) @O@OOO QO@OOO ©0000 @O@OOOO ©@@OOO z 3 @ ® @ Descriptive ® @ soe ms Meck its male olan ge be epee aims a eer asa at arae (E) ‘pment hv gs ecg conyers carl wing why Scns amr ey o ff < Scroll capture Draw Crop Share