Cpt Accounts Question Paper

COMMON PROFICIENCY TEST More Practice Paper May – 2011 ACCOUNTS

Q1.

Purpose of an accounting system include all the following except (a) Interpret and record the effects of business transaction. (b) Classify the effects of transactions to facilitate the preparation of reports. (c) Summarie and communicate communicate information to decision ma!ers. (d) Specifies the types of business transactions that enterprises may engage in.

Q". Q".

#Con #Conse ser$ r$at atis ism m Conc Concep ept% t% rec recom omme mend nds s the the foll follow owin ing& g& (a) Pro$ision for doubtful debts and discount on debtors should be made on the basis of actual bad debts and discount. (b) 'he stoc!intrade stoc!intrade should be $alued at mar!et price or cost price whiche$er is less. (c) Small capital items li!e croc!ery should be charged to re$enue. (d) *ll of the abo$e.

Q+.

Current (a) (b) (c) (d)

assets are *ssets from which long term benefits are to be deri$ed. ,ongterm and shortterm assets. Cashinhand and shortterm assets which can be con$erted into cash within one year. *ssets which are currently used in the business.

Q-. Sale of goods to ohan for cash should be debited to (a) ohan/s *ccount (b) Cash *ccount (c) Sales *ccount (d) 0one of these Q. Q.

2 ,td. ,td. has 3s.3s.- 44 44 acco accoun untt recei recei$a $abl ble e from from r. *. 5n ar arch ch 1 1 r. r. 6 ma!es ma!es a partia partiall payment of 3s."144 on behalf behalf of r. * to 2 ,td. 'he 7ournal entry made on arch 1 by 2 ,td. to record this transaction includes8 includes8 (a) (a) * cre credi ditt to the the *cco *ccoun unts ts rece recei$ i$ab able le acc accou ount nt of 3s." 3s."1 144 44.. (b) (b) * cre credi ditt to to the the cash cash rece recei$ i$ed ed acco accoun untt of of 3s. 3s." "14 144. 4. (c) (c) * debi debitt to to the the cash cash acco accoun untt of 3s.l 3s.l-44 44.. (d) (d) * deb debit it to to the the *cco *ccoun unts ts rece recei$ i$ab able le acc accou ount nt of 3s.l 3s.l-44 44..

Q9. r. 2 has assets of 3s.:44444 and liabilities of 3s.;4444. 5wner/s ehen the incoming partner brings his share of goodwill in cash it is ad7usted by crediting to8 (a) Nis Capitol account (b) Eoodwill account (c) 5ld partnerGs capital accounts (d) Premium *ccounts Q"9.

If interest on capital is to be allowed as per the agreement then interest on capital must be calculated with reference to time and it must be calculated on@@@@@@@@@@@ (a) Capital in the beginning (b) Capital at the end (c) *$erage capital employed (d) 0one of the abo$e

Q":.

'he excess price recei$ed o$er the face $alue of shares should be credited to8 (a) Callsinad$ance account. (b) *d$ance capital account. (c) Share premium account.

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(d)

Dasting assets li!e mines and ithdrawal of Capital (c) Income (d) Dxpense

Q9+.

>hat is the correct statement in context to *ccounting Standards& (a) *ccounting Standards pro$ides information to the users as to the basis on which the accounts ha$e been prepared. (b) 'hey lay down the norms of accounting policies and practices by way of guidelines. (c) *ccounting Standards specifies the generally accepted accounting principles. (d) *ll of the abo$e

Q9-.

,iability is anything8 (a) >hich the debtors owe to creditors. (b) >hich an entity holds. (c) >hich an entity owes to outsiders. (d) >hich the outsiders owe to entity.

Q9.

>hich (a) (b) (c) (d)

of the following is the ob7ecti$e of preparing trial balance& Dxamining the arithmetical accuracy of boo!s of accounts. It helps in preparation of final accounts of a firm. It ser$es as the summary of all the ledger accounts. *ll of the abo$e.

Page 7 of 11

Q99.

If an inflow of economic benefits is expected then a contingent asset is disclosed8 (a) In the balance sheet. (b) In the cash flow statement. (c) In the report of the board of directors. (d) 0one of the abo$e.

Q9:.

>hich (a) (b) (c) (d)

Q9;.

Bebit 6alance as per cash boo! of xy enterprise as on +1.4+."44; is 3s. 1944.chehich of the following is an item of trading account& (a) Factory repairs (b) Boc! dues (c) Bepreciation on office furniture (d) Consumable stores

Q:;.

>hich of the following statement is true& (a) 'he written down $alue of an asset depreciated on reducing balance method can ne$er be ero. (b) Eoods gi$en as charity is the business income. (c) Interest paid on ban! loan is not to be treated as re$enue expense. (d) Cash in hand means total amount recei$able from debtors.

Q:?.

Now balance of prepaid rent account is treated while preparing final accounts of a firm& (a) Personal account (b) 3eal account (c) 0ominal account (d) Fixed expenditure account

Q;4.

6an! interest recei$edJpaid appearing in the trial balance will be8 (a) Shown as an asset in the balance sheet. (b) Bebited to the profit and loss account. (c) Credited to the profit and loss account. (d) Dither (b) or (c)

Q;1. *n unsold product costing 3s."4444 is ta!en o$er by $enture at 3s.1444 the =oint Aenture *ccount will be credited by8 (a) 3s."4444 (b) 3s.444 (c) 3s.1444 (d) 3s.0il Q;".

In a =oint Aenture * contributes 3s.444 and 6 contributes 3s.14444. Eoods are purchased for 3s.11"44. Dxpenses amount to 3s.;44. Sales amount to 3s.1-444. 'he remaining goods were ta!en by 6 at an agreed price of 3s.-44. * and 6 profit sharing ration is 18" respecti$ely. *s a final settlement how much * will recei$e& (a) 3s.;44 (b) 3s.9444 (c) 3s.444 (d) 3s.14;44

Q;+.

* and 6 enter into a 7oint $enture to underwrite the shares of R ,td. R ,td ma!e an ehich of the following is false in relation to forfeiture of shares& (a) >hen the shares are forfeited securities premium account will be debited along with share capital account if the premium has not been recei$ed. (b) >here forfeited shares are reissued at premium the amount of such premium will be credited to securities premium account. (c) ,oss on reissue can not be more than the gain on forfeiture of those e