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Showing posts with label Accounting and Auditing Group A Old Papers. Show all posts
Showing posts with label Accounting and Auditing Group A Old Papers. Show all posts

Sunday, 17 March 2013








CSS Exam Accounting & Auditing Group-A 2011 Past Papers - CSS Exam Pakistan Old Papers








Posted at 3/17/2013 12:12:00 am |  by Muhammad Kashaan





CSS Exam Accounting & Auditing Group-A 2012 Past Papers - CSS Exam Pakistan Old Papers






Posted at 3/17/2013 12:12:00 am |  by Muhammad Kashaan





CSS Exam Accounting & Auditing Group-A 2010 Past Papers - CSS Exam Pakistan Old Papers






Posted at 3/17/2013 12:12:00 am |  by Muhammad Kashaan

This Paper is Presented by Mehnat.Pk


FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2009.

Accounting And Auditing, Paper 1


TIME ALLOWED:
(PART-I)…………30 MINUTES…………..…..MAXIMUM MARKS:20
(PART-II)…………2 Hours & 30 Minutes……..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30 Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.

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Accounting And Auditing, Paper 1
PART-I (MCQ)
(COMPULSORY)




Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

i) Which of the following transactions represent an expense?
(a) The owner withdrew Rs. 1,600 from the business for personal use
(b) Purchased a photocopying machine for Rs. 2,750 cash
(c) Purchased medical supplies for cash from Healthcare Labs. Rs. 1,630
(d) Received a telephone bill amounting to Rs. 550 to be paid within ten days.

ii) Which of the following statements about accounting procedures is not correct?
(a) The journal shows in one place all the information about specific transactions arranged in chronological order.
(b) A ledger account shows in one place all the information about changes in a specific asset or liability or owner's equity.
(c) Posting is the process of transferring information from ledger accounts to the journal.
(d) The product of the accounting cycle is the formal financial statements such as balance sheet and income statement.

iii) Which of the following financial statements reflects the overall financial position of the business?
(a) Statement of cash flows (b) Income Statement
(c) Balance Sheet (d) Statement of owner's equity

iv) Trial Balance is prepared:
(a) To ensure arithmetical accuracy of accounting records.
(b) To establish complete accuracy of accounting records.
(c) To determine the amounts payable to suppliers for purchase of goods on credit.
(d) To ensure efficient use of resources of the business.

v) The net sales of Fresh Foods were Rs. 200,000 for the current month. If the cost of goods available for sale was Rs. 180,000 and the gross profit rate was 35%, the ending inventory must have been:

(a) Rs. 70,000
(b) Rs. 1,30,000
(c) Rs. 50,000
(d) Rs. 63,000


vi) In the accounting cycle:
(a) Closing entries are made before adjusting entries.
(b) Closing entries are made after the adjusting entries.
(c) Adjusting entries are made after financial statements are prepared.
(d) Financial statements are prepared after closing trial balance.
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vii) Which of the following is an intangible asset?
(a) An investment in marketable securities.
(b)Leasehold land.
(c) Loose tools.
(d) Copy rights.

(viii) Expense is recorded in the accounting records when:
(a) Cash is paid
(b) The purchase order is placed with the supplier
(c) Purchases are made
(d) None of these

(ix) The cash basis of accounting:
(a) Is widely used by manufacturing firms.
(b) Is often used by merchandising firms.
(c) Usually results in a larger amount of tax than under accrual basis accounting.
(d) Can not be used in filing income tax returns.

(x) The straight-line method of depreciation:
(a) Generally gives best results because it is easy to apply
(b) Should be use din a period of inflation, because it accumulates the fund for the replacement
of asset at a uniform rate.
(c) Is the best method used for wasting assets.
(d) Ignores fluctuations in the rate of asset usage.

(xi) Which of the following accounts are not closed at the end of an accounting period?
(a) Revenue accounts
(b) Expense accounts
(c) Drawing accounts
(d) Asset accounts

(xii) Under periodic inventory system cost of good sold is determined and recognized in the books of accounts:
(a) At the time of purchase of goods
(b) At the time of sale of goods
(c) At the end of the year
(d) None of these

(xiii) Which of the following is not a use of working capital?
(a) Repayment of long term debt
(b) Cash dividend declared but not paid
(c) Payment of an account payable
(d) Acquisition of treasury stock.

(xiv) A transaction caused a Rs. 10,000 decrease in both assets and total liabilities. This transaction could have been:
(a) Purchase of furniture for Rs. 10,000
(b) An asset costing Rs. 10,000 was destroyed by fire (c) Repayment of bank loan Rs. 10,000
(d) Collection of a Rs.10,000 account receivable

(xv) Which ratio indicates a firm's ability to pay current liabilities in the shortest possible time?
(a) Current Ratio
(b) Equity Ratio
(c) Debt Ratio
(d) Quick Ratio

(xvi) If we add the average number of days to turn the inventory over and the average age of
receivables (in number of days), we arrive at:
(a) The company's fiscal period
(b) The sales volume of the business
(c) The company's operating cycle
(d) Nothing meaningful

(xvii) Which of the following is least important in determining the fair market value of a share?
(a) Earnings and dividends per share
(b) Book value per share
(c) The available supply of shares and the demand to purchase the shares.
(d) The par value of share.

(xviii) Financial statements prepared by a business firm are most likely to be:
(a) Fully reliable
(b) Tentative in nature
(c) Relevant for all types of decisions
(d) Always misleading

(xix) One of the following is not an officer of a company:
(a) Share registrar
(b) Controller
(c) Secretary
(d) Treasurer

(xx) A deficit appears on the balance sheet:
(a) Among the assets
(b) As a deduction from total paid-up capital
(c) Among the liabilities
(d) None of these




Accounting And Auditing, Paper 1
PART-II


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NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY THREE questions from PART-II including Question No.2 which is Compulsory. Q.No.2 carries 30 Marks all other questions carry 25 Marks each.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.


Q.2. Write short notes on the followings: (3 each)
i) What is a compound journal entry?
ii) Define subsidiary ledger.
iii) Identify two major causes of depreciation on plant assets.
Iv) What is meant by statement of cash flows?
v) Briefly explain the perpetual inventory system.
vi) State the principle of realization,
vii) What do you understand by realization account?
(viii) Describe the term accelerated depreciation,
ix) What do you understand by limited partnership?
(x) Define closing entries and give two examples.

Q.3. Complete the 2007 balance sheet for Premier Industries using the information that follows it. (25)

Premier Industries
Balance Sheet at December 31, 2007


Cash...............................Rs.30,000
Marketable securities.......Rs.25,000
Accounts receivable...............??
Inventories...........................??
Net fixed assets....................??


Accounts Payable.........Rs. 120,000
Notes Payable.................... ??
Accruals .....................Rs. 20,000
Long-term debt..................??
Stockholders' equity.....Rs. 600,000


The following financial data for 2007 are also available:
1) Sales totaled Rs. 1,800,000
2) The gross profit margin was 25 percent
3) Inventory turnover was 6.0.
4) There are 360 days in the year.
5) The average collection period was 40 days.
6) The current ratio was 1.60.
7) The total asset turnover ratio was 1 .20.
8) The debt ratio was 60 percent.

Q.4. The cash balance, November 30, 2007 is Rs. 30,000. Sales proceeds are collected as follows: 75% month of sale, 15% second month and 10% third month. (25)


Raleigh Company
Budgeted Income Statement for the Month Ended
December 3 1 , 2007 (in thousands)

Sales............................................. ...Rs.300
Inventory, November 30....................Rs.5o
Purchases......................................... Rs.190
Cost of goods available for sale..........Rs.240
Inventory, December 31...................Rs.40
Cost of goods sold............................Rs.200
Gross margin...................................Rs.100

Operating expenses
Wages............................................R s.36
Utilities......................................... ..Rs.5
Advertising.....................................Rs .10
Depreciation...................................Re. 1
Office expenses..............................Rs.4
Insurance and property taxes..........Re.1
Total Operating Expenses................Rs.57
Operating Income..........................Rs.43

Account receivable are Rs. 43,000 on November 30, 2007, consisting of Rs. 16,000 from October sales and Rs.27,000 from November Sales.
Accounts payable on November 30, 2007 are Rs. 150,000. Raleigh Company pays 35% of purchases during the month of purchase and the remainder during the following month. All operating expenses requiring cash are paid during the month of recognition. Insurance and property taxes are paid annually in December, however.

Required: Prepare a cash budget for December.

Q.5. Saeed and Rasheed carried on business in partnership. On 31st December 2007 Saeed retired.Their Balance Sheet at that date was as follows

Liabilities and Capital ........Rs......................Assets...............Rs.
Accounts Payable………………...10,000...............Land and Building…….. 5,000
Notes Payable…………….……….8,000..................Plant and Machinery….. 12,000
Saeed - Capital Account……21,000.................Loose Tools……………. 4,000
Rasheed - Capital Account.14,000.................Patterns and Models…….2,000
.................................................. .................Inventory………15,000
.................................................. .................Accounts Receivable11,000
.................................................. ................Notes Receivable…2,500
.................................................. ...............Cash…………………….1,500

Profits and Losses were shared in the proportions of Saeed two-thirds, and Rasheed one-third. Rasheed agreed to take over the business on the following terms:-
The Land and Building were to be taken over by Saeed at the amount stated in the Balance Sheet, and Rasheed was to rent the premises at Rs. 250 per annum. Revaluations were to be made which resulted as follows:-
Plant and Machinery, Rs. 10,000; Loose Tools, Rs. 4,400; Patterns and Models, Rs. 1,800; and Inventory, Rs. 12,000.
Saeed agreed to allow the amount due to him (Less Rs. 300 which was to be paid to him in cash) to remain as a loan to Rasheed at 5 percent interest. Required: Make necessary Journal entries to give effect to the above transactions and prepare Rasheed's Balance Sheet.

Q.6. The following is the Trial Balance at 30th June 2008 of the L.Y. Manufacturing Company, Limited:-
(Rupces in thousands) (25)
.................................................. ......Rs......................Rs.
Inventory, 1s1 July, 2007-……………...…7,500
Sales-……………………………………………………………………......35,000
Purchases………………………………………...…24,500
Productive Wages -………………………….....5,000
Discounts……………………………………………..….700…………...... 500
Salaries………………………………………………...…750
Rent……………………………………………………...…495
Genera! Expenses………………………………..1,705
Profit and Loss Account, 1st July, 2007……..…………......1503
Interim Dividend paid, February 2008....900
Share Capital - 1,000 shares of Rs. 10 each fully paid-10,000
Accounts Receivable and Accounts Payable..3,750…...1,750
Plant and Machinery……………………........2,900
Cash in hand and at Bank……………….…1,620
Reserve-…………………………....……………………………............1,550
Loan to Managing Director………………..…325
Bad Debts-…………………………………………..158 '

Adjustments:
(1) Depreciate Machinery at 10% per annum.
(2) Reserve 4% discount on Accounts Receivable.
(3) Allow 2% discount on Accounts Payable.
(4) One Month's Rent at Rs. 45 per month was due on 30th June, 2008.
(5) Reserve 5% for bad and doubtful debts.
(6) Inventory on 30th June 2008 was Rs. 8,200.

Required: Trading and Profit and Loss Account for the year ended 30th June 2008, and the
Balance Sheet as on that date.






FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2009.

Accounting And Auditing, Paper 2

TIME ALLOWED:
(PART-I)…………30 MINUTES…………..…..MAXIMUM MARKS:20
(PART-II)…………2 Hours & 30 Minutes……..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30 Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.


Accounting And Auditing, Paper 2
PART-I (MCQ)
(COMPULSORY)




Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

(i) Audit programme is prepared by:
a) Audit Staff
b) Chief Accountant
c) Directors
d) Audit Management
e) None of these

(ii) Verification is carried out for:
a) Closing Stock
b) Rent Income
c) Dividend Received
d) Wages and Salaries
e) None of these

(iii) Retiring auditor can be appointed at:
a) Statutory Meeting
b) AGM
c) Directors Meeting
d) Creditors Meeting
e) None of these

(iv) Unqualified report is favorable for:
a. Management

b. Creditors
c. Debtors
d. Employees
e. None of these

(v) Normally test checking is adopted in case of:
a) Continuous Audit
b) Final Audit
c) Interim Audit
d) Special Audit
e) None of these

(vi) In partnership minimum number of members is:
a) 2
b) 3
c) 4
d) 5
e) 20

(vii) In Public Ltd. Company, minimum number of members is:
a) 2
b) 3
c) 5
d) 7
e) 10

(viii) Short term finance can be arranged through:
a) Sales of Debentures
b) Sales of Shares
c) Bank Loan
d) Debtors Collection
e) None of these

(ix) Statutory meeting is necessary in case of:
a) Private Ltd. Co.
b) Public Ltd. Co.
c) Partnership
d) Cooperative Society
e) None of these

(x) Current Companies Ordinance is that of:
a) 1932
b) 1984
c) 2001
d) 2002
e) 2003

(xi) The Addition of Material and Labour is called:
a) Conversion Cost
b) Prime Cost
c) Financial Cost
d) Absorption Cost
e) None of these

(xii) Expenses can be called as:
a) Expired Cost
b) Project Cost
c) Prime Cost
d) Conversion Cost
e) None of these

(xiii) EOQ is adopted to have efficient:
a) Material Management
b) Labour Management
c) FOH Management
d) Selling Expenses Control
e) None of these

(xiv) Which of the following is fixed cost:
a) Rent
b) Income Tax
c) Repair
d) Electricity
e) Insurance

(xv) The statement prepared under process costing is called:
a) Cost of Goods Sold statement
b) Income Statement
c) Cost of Production Report
d) Variance statement
e) None of these

(xvi) Current Income Tax Ordinance is that of:
a) 1990
b) 2001
c) 2002
d) 2003
e) 2008

(xvii) Which of the following will be considered as capital expenditure?
a) Material Expense
b) Machinery Purchased
c) Labout Paid
d) FOH applied
e) Income Tax Paid

(xviii) Which of the following is exempted from tax at present?
a) Agricultural Income
b) Banks Profits
c) Salary Income
d) Profit of Public Ltd. Co.
e) Profit of Private Ltd. Co.

(xix) If Income year of a salaried person ends on 30th June, 2008, then tax year would be:
a) 2007-08
b) 2008-09
c) 2009-10
d) 2008
e) None of these

(xx) Which of the following can be adjusted against Income Tax Liability:
a) Withholding Tax on Telephone Bills
b) Excise Duty Paid
c) Custom Duty Paid
d) Sales tax paid
e) Trade tax paid


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Accounting And Auditing, Paper 2
PART-II


NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II selecing ONE question from each section I,II,III,IV. All Questions carry equal marks.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.
(iv) Use of Simple Calculartor is allowed.


Section-I (Cost Accounting)




SECTION-A (Cost Accounting)

Q.2. ABC company made the following data available from its accounting records and reports:
(i) Rs. 60,000 estimated Factory Overhead
(ii) 20,000 estimated direct Labour hours
(iii) Rs. 3 pre-determined Factory overhead rate.
(iv) One third of rate is variable cost oriented.
(v) During the year, the company worked on 21,000 direct Labour hours.
(vi) Actual Factory overhead expenses for the year were Rs. 63,100.
You are required to calculate spending and idle capacity variances.

Q.3. The records of MN Company show the following information for the year ending 30th June, 2008.

1. Material Used----------------------Rs. 880,000
2. Direct Labour--------------------------580,000
3. Indirect Labour--------------------------92,000
4. Light and Power--------------------------8,520
5. Depreciation----- ------------------------9,400
6. Repair of Machinery--------------------- 11,600
7. Misc. Factory overhead------- ---------- 58,000
8. Opening W-I-P inventory-----------------82,400
9. Opening Finished Goods inventory-------- 68,600
10. Ending Wip inventory---------------------85,000
11. Ending Finished Goods inventory---------- 63,000

During the year 36,000 units were completed. You are required to calculate:
(a) A cost of Goods Sold Statement for the year ending on 30th June, 2008.
(b) The unit cost of Goods Manufactured
(c) The amount of over or under applied factory overhead if the company applies factory overhead on the basis of 30% of direct labour cost.

SECTION-B (Auditing)

Q.4. What is meant by a Qualified Report? Give specimen of such report after the completion of annual audit of a Public Limited Company. (20)

Q.5. Under what circumstances an auditor can be held liable for Negligence? Support your answer with relevant legal cases. (20)

SECTION-C (Income Tax)

Q.6. Explain the legal provisions governing the exemption of following items from Income Tax:- (20)
(i) Pension
(ii) Facility of Accommodation
(iii) Income of Trusts
(iv) Income of Modarba

Q.7. The following information is available in respect of Mr. Hassan for Tax year ending on 30th June, 2008. (20)
(i) Salaries----------------------------------------------------Rs. 300,000
(ii) Income from Agriculture-----------------------------------15,000
(iii) Income from Poultry Farm---------------------------------12,000
(iv) Payments to workers’ Welfare fund-------------------------5,000
(v) Entertainment bills reimbursed ----------------------------10,000
(vi) Telephone bills reimbursed----------------------------------6,000
(vii) Efficiency Honorarium----------------------- --------------10,000
(viii) Profit on sale of inherited house----------------------------14,000
(ix) Over time Payments received----------------- --------------7,000
(x) Remuneration for literary works------------------------------9,000
(xi) Dividend income from private company----------------------17,000
(xii) Zakar Paid-------------------------------------- -----------3,000
You are required to calculate taxable income of Mr. Hassan for year Ending on 30th June, 2008.

SECTION-D (Business Organizations and Finance)

Q.8. Explain the legal procedure in respect of establishment of a Public Limited Company. (20)

Q.9. Explain the duties and functions of a Financial Manager of a large Scale Business. (20)


CSS Exam Accounting & Auditing Group-A 2009 Past Papers - CSS Exam Pakistan Old Papers

This Paper is Presented by Mehnat.Pk


FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2009.

Accounting And Auditing, Paper 1


TIME ALLOWED:
(PART-I)…………30 MINUTES…………..…..MAXIMUM MARKS:20
(PART-II)…………2 Hours & 30 Minutes……..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30 Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.

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Accounting And Auditing, Paper 1
PART-I (MCQ)
(COMPULSORY)




Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

i) Which of the following transactions represent an expense?
(a) The owner withdrew Rs. 1,600 from the business for personal use
(b) Purchased a photocopying machine for Rs. 2,750 cash
(c) Purchased medical supplies for cash from Healthcare Labs. Rs. 1,630
(d) Received a telephone bill amounting to Rs. 550 to be paid within ten days.

ii) Which of the following statements about accounting procedures is not correct?
(a) The journal shows in one place all the information about specific transactions arranged in chronological order.
(b) A ledger account shows in one place all the information about changes in a specific asset or liability or owner's equity.
(c) Posting is the process of transferring information from ledger accounts to the journal.
(d) The product of the accounting cycle is the formal financial statements such as balance sheet and income statement.

iii) Which of the following financial statements reflects the overall financial position of the business?
(a) Statement of cash flows (b) Income Statement
(c) Balance Sheet (d) Statement of owner's equity

iv) Trial Balance is prepared:
(a) To ensure arithmetical accuracy of accounting records.
(b) To establish complete accuracy of accounting records.
(c) To determine the amounts payable to suppliers for purchase of goods on credit.
(d) To ensure efficient use of resources of the business.

v) The net sales of Fresh Foods were Rs. 200,000 for the current month. If the cost of goods available for sale was Rs. 180,000 and the gross profit rate was 35%, the ending inventory must have been:

(a) Rs. 70,000
(b) Rs. 1,30,000
(c) Rs. 50,000
(d) Rs. 63,000


vi) In the accounting cycle:
(a) Closing entries are made before adjusting entries.
(b) Closing entries are made after the adjusting entries.
(c) Adjusting entries are made after financial statements are prepared.
(d) Financial statements are prepared after closing trial balance.
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vii) Which of the following is an intangible asset?
(a) An investment in marketable securities.
(b)Leasehold land.
(c) Loose tools.
(d) Copy rights.

(viii) Expense is recorded in the accounting records when:
(a) Cash is paid
(b) The purchase order is placed with the supplier
(c) Purchases are made
(d) None of these

(ix) The cash basis of accounting:
(a) Is widely used by manufacturing firms.
(b) Is often used by merchandising firms.
(c) Usually results in a larger amount of tax than under accrual basis accounting.
(d) Can not be used in filing income tax returns.

(x) The straight-line method of depreciation:
(a) Generally gives best results because it is easy to apply
(b) Should be use din a period of inflation, because it accumulates the fund for the replacement
of asset at a uniform rate.
(c) Is the best method used for wasting assets.
(d) Ignores fluctuations in the rate of asset usage.

(xi) Which of the following accounts are not closed at the end of an accounting period?
(a) Revenue accounts
(b) Expense accounts
(c) Drawing accounts
(d) Asset accounts

(xii) Under periodic inventory system cost of good sold is determined and recognized in the books of accounts:
(a) At the time of purchase of goods
(b) At the time of sale of goods
(c) At the end of the year
(d) None of these

(xiii) Which of the following is not a use of working capital?
(a) Repayment of long term debt
(b) Cash dividend declared but not paid
(c) Payment of an account payable
(d) Acquisition of treasury stock.

(xiv) A transaction caused a Rs. 10,000 decrease in both assets and total liabilities. This transaction could have been:
(a) Purchase of furniture for Rs. 10,000
(b) An asset costing Rs. 10,000 was destroyed by fire (c) Repayment of bank loan Rs. 10,000
(d) Collection of a Rs.10,000 account receivable

(xv) Which ratio indicates a firm's ability to pay current liabilities in the shortest possible time?
(a) Current Ratio
(b) Equity Ratio
(c) Debt Ratio
(d) Quick Ratio

(xvi) If we add the average number of days to turn the inventory over and the average age of
receivables (in number of days), we arrive at:
(a) The company's fiscal period
(b) The sales volume of the business
(c) The company's operating cycle
(d) Nothing meaningful

(xvii) Which of the following is least important in determining the fair market value of a share?
(a) Earnings and dividends per share
(b) Book value per share
(c) The available supply of shares and the demand to purchase the shares.
(d) The par value of share.

(xviii) Financial statements prepared by a business firm are most likely to be:
(a) Fully reliable
(b) Tentative in nature
(c) Relevant for all types of decisions
(d) Always misleading

(xix) One of the following is not an officer of a company:
(a) Share registrar
(b) Controller
(c) Secretary
(d) Treasurer

(xx) A deficit appears on the balance sheet:
(a) Among the assets
(b) As a deduction from total paid-up capital
(c) Among the liabilities
(d) None of these




Accounting And Auditing, Paper 1
PART-II


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NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY THREE questions from PART-II including Question No.2 which is Compulsory. Q.No.2 carries 30 Marks all other questions carry 25 Marks each.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.


Q.2. Write short notes on the followings: (3 each)
i) What is a compound journal entry?
ii) Define subsidiary ledger.
iii) Identify two major causes of depreciation on plant assets.
Iv) What is meant by statement of cash flows?
v) Briefly explain the perpetual inventory system.
vi) State the principle of realization,
vii) What do you understand by realization account?
(viii) Describe the term accelerated depreciation,
ix) What do you understand by limited partnership?
(x) Define closing entries and give two examples.

Q.3. Complete the 2007 balance sheet for Premier Industries using the information that follows it. (25)

Premier Industries
Balance Sheet at December 31, 2007


Cash...............................Rs.30,000
Marketable securities.......Rs.25,000
Accounts receivable...............??
Inventories...........................??
Net fixed assets....................??


Accounts Payable.........Rs. 120,000
Notes Payable.................... ??
Accruals .....................Rs. 20,000
Long-term debt..................??
Stockholders' equity.....Rs. 600,000


The following financial data for 2007 are also available:
1) Sales totaled Rs. 1,800,000
2) The gross profit margin was 25 percent
3) Inventory turnover was 6.0.
4) There are 360 days in the year.
5) The average collection period was 40 days.
6) The current ratio was 1.60.
7) The total asset turnover ratio was 1 .20.
8) The debt ratio was 60 percent.

Q.4. The cash balance, November 30, 2007 is Rs. 30,000. Sales proceeds are collected as follows: 75% month of sale, 15% second month and 10% third month. (25)


Raleigh Company
Budgeted Income Statement for the Month Ended
December 3 1 , 2007 (in thousands)

Sales............................................. ...Rs.300
Inventory, November 30....................Rs.5o
Purchases......................................... Rs.190
Cost of goods available for sale..........Rs.240
Inventory, December 31...................Rs.40
Cost of goods sold............................Rs.200
Gross margin...................................Rs.100

Operating expenses
Wages............................................R s.36
Utilities......................................... ..Rs.5
Advertising.....................................Rs .10
Depreciation...................................Re. 1
Office expenses..............................Rs.4
Insurance and property taxes..........Re.1
Total Operating Expenses................Rs.57
Operating Income..........................Rs.43

Account receivable are Rs. 43,000 on November 30, 2007, consisting of Rs. 16,000 from October sales and Rs.27,000 from November Sales.
Accounts payable on November 30, 2007 are Rs. 150,000. Raleigh Company pays 35% of purchases during the month of purchase and the remainder during the following month. All operating expenses requiring cash are paid during the month of recognition. Insurance and property taxes are paid annually in December, however.

Required: Prepare a cash budget for December.

Q.5. Saeed and Rasheed carried on business in partnership. On 31st December 2007 Saeed retired.Their Balance Sheet at that date was as follows

Liabilities and Capital ........Rs......................Assets...............Rs.
Accounts Payable………………...10,000...............Land and Building…….. 5,000
Notes Payable…………….……….8,000..................Plant and Machinery….. 12,000
Saeed - Capital Account……21,000.................Loose Tools……………. 4,000
Rasheed - Capital Account.14,000.................Patterns and Models…….2,000
.................................................. .................Inventory………15,000
.................................................. .................Accounts Receivable11,000
.................................................. ................Notes Receivable…2,500
.................................................. ...............Cash…………………….1,500

Profits and Losses were shared in the proportions of Saeed two-thirds, and Rasheed one-third. Rasheed agreed to take over the business on the following terms:-
The Land and Building were to be taken over by Saeed at the amount stated in the Balance Sheet, and Rasheed was to rent the premises at Rs. 250 per annum. Revaluations were to be made which resulted as follows:-
Plant and Machinery, Rs. 10,000; Loose Tools, Rs. 4,400; Patterns and Models, Rs. 1,800; and Inventory, Rs. 12,000.
Saeed agreed to allow the amount due to him (Less Rs. 300 which was to be paid to him in cash) to remain as a loan to Rasheed at 5 percent interest. Required: Make necessary Journal entries to give effect to the above transactions and prepare Rasheed's Balance Sheet.

Q.6. The following is the Trial Balance at 30th June 2008 of the L.Y. Manufacturing Company, Limited:-
(Rupces in thousands) (25)
.................................................. ......Rs......................Rs.
Inventory, 1s1 July, 2007-……………...…7,500
Sales-……………………………………………………………………......35,000
Purchases………………………………………...…24,500
Productive Wages -………………………….....5,000
Discounts……………………………………………..….700…………...... 500
Salaries………………………………………………...…750
Rent……………………………………………………...…495
Genera! Expenses………………………………..1,705
Profit and Loss Account, 1st July, 2007……..…………......1503
Interim Dividend paid, February 2008....900
Share Capital - 1,000 shares of Rs. 10 each fully paid-10,000
Accounts Receivable and Accounts Payable..3,750…...1,750
Plant and Machinery……………………........2,900
Cash in hand and at Bank……………….…1,620
Reserve-…………………………....……………………………............1,550
Loan to Managing Director………………..…325
Bad Debts-…………………………………………..158 '

Adjustments:
(1) Depreciate Machinery at 10% per annum.
(2) Reserve 4% discount on Accounts Receivable.
(3) Allow 2% discount on Accounts Payable.
(4) One Month's Rent at Rs. 45 per month was due on 30th June, 2008.
(5) Reserve 5% for bad and doubtful debts.
(6) Inventory on 30th June 2008 was Rs. 8,200.

Required: Trading and Profit and Loss Account for the year ended 30th June 2008, and the
Balance Sheet as on that date.






FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2009.

Accounting And Auditing, Paper 2

TIME ALLOWED:
(PART-I)…………30 MINUTES…………..…..MAXIMUM MARKS:20
(PART-II)…………2 Hours & 30 Minutes……..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30 Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.


Accounting And Auditing, Paper 2
PART-I (MCQ)
(COMPULSORY)




Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

(i) Audit programme is prepared by:
a) Audit Staff
b) Chief Accountant
c) Directors
d) Audit Management
e) None of these

(ii) Verification is carried out for:
a) Closing Stock
b) Rent Income
c) Dividend Received
d) Wages and Salaries
e) None of these

(iii) Retiring auditor can be appointed at:
a) Statutory Meeting
b) AGM
c) Directors Meeting
d) Creditors Meeting
e) None of these

(iv) Unqualified report is favorable for:
a. Management

b. Creditors
c. Debtors
d. Employees
e. None of these

(v) Normally test checking is adopted in case of:
a) Continuous Audit
b) Final Audit
c) Interim Audit
d) Special Audit
e) None of these

(vi) In partnership minimum number of members is:
a) 2
b) 3
c) 4
d) 5
e) 20

(vii) In Public Ltd. Company, minimum number of members is:
a) 2
b) 3
c) 5
d) 7
e) 10

(viii) Short term finance can be arranged through:
a) Sales of Debentures
b) Sales of Shares
c) Bank Loan
d) Debtors Collection
e) None of these

(ix) Statutory meeting is necessary in case of:
a) Private Ltd. Co.
b) Public Ltd. Co.
c) Partnership
d) Cooperative Society
e) None of these

(x) Current Companies Ordinance is that of:
a) 1932
b) 1984
c) 2001
d) 2002
e) 2003

(xi) The Addition of Material and Labour is called:
a) Conversion Cost
b) Prime Cost
c) Financial Cost
d) Absorption Cost
e) None of these

(xii) Expenses can be called as:
a) Expired Cost
b) Project Cost
c) Prime Cost
d) Conversion Cost
e) None of these

(xiii) EOQ is adopted to have efficient:
a) Material Management
b) Labour Management
c) FOH Management
d) Selling Expenses Control
e) None of these

(xiv) Which of the following is fixed cost:
a) Rent
b) Income Tax
c) Repair
d) Electricity
e) Insurance

(xv) The statement prepared under process costing is called:
a) Cost of Goods Sold statement
b) Income Statement
c) Cost of Production Report
d) Variance statement
e) None of these

(xvi) Current Income Tax Ordinance is that of:
a) 1990
b) 2001
c) 2002
d) 2003
e) 2008

(xvii) Which of the following will be considered as capital expenditure?
a) Material Expense
b) Machinery Purchased
c) Labout Paid
d) FOH applied
e) Income Tax Paid

(xviii) Which of the following is exempted from tax at present?
a) Agricultural Income
b) Banks Profits
c) Salary Income
d) Profit of Public Ltd. Co.
e) Profit of Private Ltd. Co.

(xix) If Income year of a salaried person ends on 30th June, 2008, then tax year would be:
a) 2007-08
b) 2008-09
c) 2009-10
d) 2008
e) None of these

(xx) Which of the following can be adjusted against Income Tax Liability:
a) Withholding Tax on Telephone Bills
b) Excise Duty Paid
c) Custom Duty Paid
d) Sales tax paid
e) Trade tax paid


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Accounting And Auditing, Paper 2
PART-II


NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II selecing ONE question from each section I,II,III,IV. All Questions carry equal marks.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.
(iv) Use of Simple Calculartor is allowed.


Section-I (Cost Accounting)




SECTION-A (Cost Accounting)

Q.2. ABC company made the following data available from its accounting records and reports:
(i) Rs. 60,000 estimated Factory Overhead
(ii) 20,000 estimated direct Labour hours
(iii) Rs. 3 pre-determined Factory overhead rate.
(iv) One third of rate is variable cost oriented.
(v) During the year, the company worked on 21,000 direct Labour hours.
(vi) Actual Factory overhead expenses for the year were Rs. 63,100.
You are required to calculate spending and idle capacity variances.

Q.3. The records of MN Company show the following information for the year ending 30th June, 2008.

1. Material Used----------------------Rs. 880,000
2. Direct Labour--------------------------580,000
3. Indirect Labour--------------------------92,000
4. Light and Power--------------------------8,520
5. Depreciation----- ------------------------9,400
6. Repair of Machinery--------------------- 11,600
7. Misc. Factory overhead------- ---------- 58,000
8. Opening W-I-P inventory-----------------82,400
9. Opening Finished Goods inventory-------- 68,600
10. Ending Wip inventory---------------------85,000
11. Ending Finished Goods inventory---------- 63,000

During the year 36,000 units were completed. You are required to calculate:
(a) A cost of Goods Sold Statement for the year ending on 30th June, 2008.
(b) The unit cost of Goods Manufactured
(c) The amount of over or under applied factory overhead if the company applies factory overhead on the basis of 30% of direct labour cost.

SECTION-B (Auditing)

Q.4. What is meant by a Qualified Report? Give specimen of such report after the completion of annual audit of a Public Limited Company. (20)

Q.5. Under what circumstances an auditor can be held liable for Negligence? Support your answer with relevant legal cases. (20)

SECTION-C (Income Tax)

Q.6. Explain the legal provisions governing the exemption of following items from Income Tax:- (20)
(i) Pension
(ii) Facility of Accommodation
(iii) Income of Trusts
(iv) Income of Modarba

Q.7. The following information is available in respect of Mr. Hassan for Tax year ending on 30th June, 2008. (20)
(i) Salaries----------------------------------------------------Rs. 300,000
(ii) Income from Agriculture-----------------------------------15,000
(iii) Income from Poultry Farm---------------------------------12,000
(iv) Payments to workers’ Welfare fund-------------------------5,000
(v) Entertainment bills reimbursed ----------------------------10,000
(vi) Telephone bills reimbursed----------------------------------6,000
(vii) Efficiency Honorarium----------------------- --------------10,000
(viii) Profit on sale of inherited house----------------------------14,000
(ix) Over time Payments received----------------- --------------7,000
(x) Remuneration for literary works------------------------------9,000
(xi) Dividend income from private company----------------------17,000
(xii) Zakar Paid-------------------------------------- -----------3,000
You are required to calculate taxable income of Mr. Hassan for year Ending on 30th June, 2008.

SECTION-D (Business Organizations and Finance)

Q.8. Explain the legal procedure in respect of establishment of a Public Limited Company. (20)

Q.9. Explain the duties and functions of a Financial Manager of a large Scale Business. (20)


Posted at 3/17/2013 12:11:00 am |  by Muhammad Kashaan

This Paper is Presented by Mehnat.Pk


FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2008.

Accounting And Auditing, Paper 1


TIME ALLOWED:
(PART-I)…………30 MINUTES…………..…..MAXIMUM MARKS:20
(PART-II)…………2 Hours & 30 Minutes……..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30 Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.


Accounting And Auditing, Paper 1
PART-I (MCQ)
(COMPULSORY)
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Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

1. Identify the item that is likely to serve as source document:
a. Trial balance
b. Income statement
c. Balance sheet
d. Invoice from supplier

2. Identify which of the normal balances (in parentheses) assigned to the following accounts is incorrect:
a. Office supplies (Debit)
b. Cash (Debit)
c. Wages payable (Credit)
d. Free earned (Debit)

3. The formula (Cost less salvage value/Total capacity in units x units extracted) refers to which depreciation method:
a. Straight line
b. Units of production
c. Declining balance
d. Depletion

4. While passing adjusting entries for what type of transactions expenses are debited and assets are credited:
a. Accrued revenue
b. Accrued expenses
c. Declining balance
d. Depletion

5. Of the following statements, which one is untrue for the corporate form of organization:
a. It is a separate legal entity
b. It has a limited life
c. Income that is distributed to owners is usually taxed twice
d. Ownership rights can be easily transferred

6. For each transaction, double-entry accounting requires which of the following:
a. Debits to asset accounts must create credits to liability or equity accounts
b. A debit to a liability account must create a credit to an asset accounts
c. Total debits must equal total credits
d. None of these

7. When costs are rising, which method reports higher net income:
a. LIFO
b. FIFO
c. Average
d. The most recent purchase price

8. A transaction caused Rs. 20,000 decrease in both total assets and total liabilities. This transaction could have been:
a. Purchase of an asset for Rs. 20.000 cash
b. Asset costing Rs. 20,000 destroyed by fire
c. Repayment of Rs. 20,000 bank loan
d. Collection of Rs. 20,000account receivable
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9. What percentage of profit a bank has to transfer to statutory reserve until it inflates to paid-up capital of the bank:
a. 5%
b. 10%
c. 20%
d. 25%

10. Identify the correct answer with regards to depreciation expense:
a. Is an application of the matching principle?
b. Is a closing entry?
c. Usually includes an offsetting credit either to cash or accounts payable.
d. Is not an adjusting entry?

11. Comparison of a company’s financial condition and performance across time is a:
a. Ration analysis
b. Horizontal analysis
c. Vertical analysis
d. None of these

12. Income and expenditure account in a non trading institution records transaction of:
a. Revenue nature only
b. Capital nature only
c. Both (a) & (b)
d. Income of revenue nature and expenditure of revenue and capital nature

13. At the time of admission of a new partner, goodwill raised should be written off in:
a. New profit sharing ratio
b. Old profit sharing ration
c. Sacrificing ratio
d. Gaining ratio

14. A and B are partners in the ratio of 2:1. They admit C for ¼ shares who contribute Rs. 3000 for his share of goodwill. Total value of the goodwill of the firm is:
a. Rs. 3000
b. Rs. 9000
c. Rs. 12000
d. 15000

15. Second hand machinery worth Rs. 10, 000 was purchased, repairing of the machinery cost Rs. 1,000. The machinery was installed by own workers. Wage for this being Rs. 200, the machinery account should be debited for:
a. Rs. 10,000
b. Rs. 11,000
c. Rs. 11,200
d. None of these

16. If net sales Rs. 100,000 cost of goods sold Rs. 55,000, administrative expenses Rs. 5300, selling expenses Rs. 4375, Interest expense Rs. 500, the operating profit is:
a. Rs.35325
b. Rs.45000
c. Rs.39700
d. Rs.34825

17. Which of the ratio best reflects a company’s ability to meet immediate interest payment?
a. Debit ratio
b. Equity ratio
c. Times interest earned
d. None of these

18. Identify which items are subtracted from the list amount and not recorded when computing purchase price:
a. Freight in
b. Trade discount
c. Purchase discount
d. Purchase return

19. Bonus payable only on the maturity of the policy is termed as:
a. Cash bonus
b. Reversionary bonus
c. Interim bonus
d. Bonus is reduction of premium

20. Rebate on bill discounted (unearned discount) is:
a. An expense
b. An income
c. A liability
d. An asset



Accounting And Auditing, Paper 1
PART-II





NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY THREE questions from PART-II including Question No.2 which is Compulsory. Q.No.2 carries 30 Marks all other questions carry 25 Marks each.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.


Q.2 Give short answer to the following:
i. Define each component of accounting equation.
ii. Identify stakeholders in Insurance Company.
iii. Identify the meaning of accounting related acronym GAAP.
iv. Define adjusted trial balance.
v. Describe financing activities in the context of cash.
vi. Explain the difference between financing reporting and financial statements.
vii. Explain salvage value of an asst.
viii. Define Franchises and licenses
ix. Explain acronym FOB destination.
x. Explain accrual accounting system.
xi. Explain Matching Concept.
xii. Define Debit Note.
xiii. Describe re-valuation Accounts.
xiv. What is meant by interim accounts?
xv. Bring out the importance of preparing Trial Balance.

Q.3 The Following Balances appeared in the books of X Ltd. As on 31st December 2006.

Debit Balances Rs. Credit Balances Rs.
Building 50,000 Subscribed & Paid up Capital 3,00,000
Purchases 50,451 General Reserve 1,25,000
Manufacturing Exp 1,79,500 Unclaimed Dividends 3,663
Establishment Exp 1,407 Trade Creditors 18,029
General Charges 15,539 Sales 4,91,974
Machinery 10,000 Depreciation Reserve 35,500
Motor Vehicles 7,500 Interest on Investments 4,272
Furniture 250 Profit & Loss A/c (01-01-06) 8,423
Opening Stock 86,029 Staff Provident Fund 18,750
Book Debts 11,690
Investments 1,44,475
Cash 36,120
Director’s Fees 900
Interim Dividend 7,500
TOTAL 1,005,611 TOTAL 1,005,611

From these balances and the following information, preparethe company’ Balance Sheet as on 31st December, 2006 and its profit and Loss Account for the year on that date:

a) The stock on 31st December, 2006 was valued at Rs. 74,340.
b) Provide Rs. 5,000 for depreciation on fixed assets, Rs. 3,250 for Managing Director’s commission and Rs. 750 for the company’s contribution to their staff provident Fund.
c) Interest accrued on investment amounted to Rs. 1,375.
d) A provision of Rs. 4,000 for taxes in respect of profit 2006 is considered necessary.
e) The directors propose a final dividend @ 5%

Q.4. The following data are extracted from the published accounts of two companies in an industry:
X CO. Ltd Y CO. Ltd
Rs. Rs.
Sales 16,00,000 15, 00,000
Profit after tax 61,500 79,000
Equity Capital 5,00,000 4,00,000
(Rs. 10 per share fully paid)
General Reserve 1,16,000 3,21,000
Long- Term Debts 4,00,000 3,30,000
Creditors 1,91,000 2,74,500
Bank Credit (short term) 30,000 1,00,000
Fixed Assets 7,99,500 7,95,000
Inventories 1,65,500 4,40,500
Other Current Assets 2, 72,000 2,26,000

You are required to calculate the following Ratios of both companies;
(a) Current ratio
(b) Quick Ratio
(c) Net profit Ratio
(d) Stock turn over
(e) Debt equity ratio


Q.5. Rizwan Company is preparing a cash budget for July. The following estimates were made:
(a) Expected cash balance, July 1, Rs.5, 000.
(b) Income tax rate is 40% based on accounting income for the month, payable in the following month.
(c) Rizwan’ s customers pay for 50% of their purchase during the month of purchase and the balance during the following month. Bad debts are expected to be 2%
(d) Merchandise is purchased on account for resale, with 25% of purchases paid for during the month of purchase and the balance paid during the following month.
(e) Marketing and administrative expenses are all paid in the current month.
(f) Dividends of Rs.15, 000 are expected to be declared and paid during July.
(g) Rizwan’s desire is to have a minimum month –end cash balance of Rs.5, 000.
(h) Other budgets include the following estimates:

June (Rs.) July (Rs.)
Sale (all on account) ------------------ 30,000 40,000
Purchase --------------------------- 10,000 15,000
Depreciation Expenses--------------- 5,000 6,000
Cost of Goods Sold------------------ 12,000 16,000
Other marketing expenses ---------- 9,000 10,000

Requirement: Prepare a cash budget for July. (25)

Q.6. Given below is the Receipts and payments account of the Fan Club for the (25)
year ending 31st December 2006:

Rs. Rs.
Balance B/D 10,250 Salaries 6,000
Subscription: Genera expenses 750
2005 400 Drama expenses 4,500
2006 20,000 Newspapers etc. 1,500
2007 600 Municipal taxes 400
Donations 5,400 Charity 3,500
Proceeds of drama tickets 9,500 investments 20,000
Sale of waste paper 450 Electricity 9,000
TOTAL 47,100 TOTAL 47,000

Prepare the Club’s income and expenditure account for the year ended on 31st December , 2006 and its balances sheet as on that data, after taking the following information into account:

a) There are 500 members, each paying an annual subscription of Rs. 50,
Rs. 500 being in arrears for 2005.
b) Municipal taxes amounting to Rs.400 per annum have been paid upto 31st March 2007, and Rs. 500 for salaries is amounting .
c) Buildings stood in the books at Rs. 50,000 and it is required to write off depreciation at 5 percent.
d) Three percent interest has accrued on investment for five months





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FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2008.

Accounting And Auditing, Paper 2

TIME ALLOWED:
(PART-I)…………30 MINUTES…………..…..MAXIMUM MARKS:20
(PART-II)…………2 Hours & 30 Minutes……..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30 Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.


Accounting And Auditing, Paper 2
PART-I (MCQ)
(COMPULSORY)




Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

1. A job-order costing system is most appropriate for which of the following types of manufacturing?
a. Flour milling
b. Paper manufacturer
c. Automobile manufacturer
d. Shipbuilders

2. The predetermined overhead is:
a. Determined at the end of the accounting period
b. Determined by dividing the allocation base by the estimated overhead
c. Used in a normal cost system
d. Never applied to the work in process at the end of the period

3. Actual overhead costs appear:
a. On a job cost sheet
b. In the work in process account
c. In the financial goods account
d. In the manufacturing overhead accounts

4. Which of the following is a clearing account?
a. Manufacturing summary
b. Manufacturing overhead
c. Depreciation expense
d. Accumulated depreciation

5. Which of the following is a benefit of a just-in-time (JIT)inventory system?
a. Decreased facility-level activity
b. Reduction in investment funds
c. Reduction in skilled labour
d. Reduction in waste

6. The basic concept which recognizes that the cost of internal control should not exceed the benefits expected to be derived is known as:
a. Reasonable assurance
b. Management responsibility
c. Limited liability
d. Management by exception

7. Which of the following eliminates details from the working trial balance by classifying and summarizing similar or related items?
a. Lead schedules
b. Control accounts
c. Supporting schedules
d. Accounts analysis

8. Which of the following would be least likely to be considered a control objective?
a. Safeguarding assets
b. Detecting management fraud
c. Accuracy of accounting data
d. Adherence to managerial policies

9. Which of the following statements is false?
a. Checklist is a method of internal control for a small business
b. Two types of audit tests are compliance tests and substantive tests
c. Materiality and audit risk have direct relationship
d. Internal control consists of both accounting controls and administrative controls

10. Which of the following is principle purpose of evaluation on internal control?
a. Compliance with auditing standards
b. Checking efficiency of management
c. Issuance of letter of weakness in internal control
d. Determining nature, timing and extent of substantive audit test
e. None of these

11. Which of the following assets is not eligible for initial depreciation allowance?
a. Vehicle for factory labour
b. Professional books
c. Vehicle plying for hire
d. Ship

12. Which of the following is capital asset under the Income Tax Ordinance, 2001?
a. Shares of a company
b. Copy rights
c. Patents rights
d. Stock of goods

13. Which of the following is an agricultural income?
a. Royalty income for miners
b. Income from cultivation of rice
c. Income from sale of irrigation water
d. Income from poultry farm

14. Which of the following expenditures is admissible under the head income from Business?
a. Cost of issue of shares
b. Wealth tax
c. Loss by fire
d. Interest payable to partner

15. Which of the following rental income is exempted from tax under the head Income from Property?
a. Property income held under trust
b. Self-occupied residential property
c. Income from agricultural building
d. All of these

16. The face values and market value of shares remain the same in case of:
a. Public limited company
b. Co-operative society
c. Single member company
d. Private limited company

17. Which of the following combination of business makes different types of goods and have in common either raw material or final product?
a. Horizontal
b. Vertical
c. Circular
d. Lateral

18. The status of Chamber of Commerce and Industry in Pakistanis:
a. Partnership
b. Association of persons
c. Limited company
d. Club

19. Markets are necessary because:
a. Demand always exceeds supply
b. Barter cannot work properly
c. Competition is encouraged
d. Buyers and sellers are different people

20. Discovery of business opportunities and arrangement of property, funds, and management ability to set up a business is called:
a. Incorporation
b. Integration
c. Amalgamation
d. Promotion






Accounting And Auditing, Paper 2
PART-II


NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II selecing ONE question from each section I,II,III,IV. All Questions carry equal marks.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.
(iv) Use of Simple Calculartor is allowed.


Section-I (Cost Accounting)



Q.2 The Solo Company uses process cost system. Tailoring department of the company produces cotton shirts. All direct materials are introduced at the process. Conversion costs are incurred uniformly throughout the process. The company started 500 shirts. It completed and transferred 400 shirts. At the end of the month 80 shirts were in process. Each shirt in ending work in process was 75% converted. Cost incurred during May; direct materials Rs. 43200 and conversion costs Rs. 92000.

Required: Prepare Cost of Production for the month of May,2007

Q.3 The materials analyst for moderate Company is asked to determine the number of units of material A to order for March delivery. The production schedule calls for 10000 units of this material for January operations; 13500 units for February; and 14800 units for March. On January 1, the inventory shows 10000 units on hand; 14000 units are on order for January delivery; and 13000 units oin order for February delivery; and 7500 units minimum reserve inventory is maintained.

Required: Determine the quantity to order for March delivery.



SECTION-II (Auditing)



Q.4 Draw a specimen of unqualified audit report of a public limited company?

Q.5 Differentiate between internal audit and statutory audit?



SECTION-III (Income Tax)



Q.6 What are various sources of income chargeable to tax under the head “Income from other sources”?

Q.7 Mr. Ali is an officer in AB Company Ltd. He supplied information for the year ending June30, 2007 as started below:

i. Basic salary per month Rs. 25000.
ii. Dearness allowance Rs. 14000.
iii. House Rent allowance per month Rs. 12500.
iv. Gas and electricity allowance Rs. 15000.
v. Conveyance allowance Rs. 2500 per month.
vi. Medical allowance Rs. 1500 per month.
vii. Leave fare assistance including hotel bill Rs. 13000
viii. Insurance money received on maturity of policy Rs. 150000.
ix. Income from Khas Deposit Certificate Rs. 500.
Required: Calculate tax liability of Mr. Ali.



SECTION-IV (Business Organization & Finance)



Q.8 Define business combination? What are the causes of business combinations?

Q.9 Differentiate between unlisted company and lised company in Pakistan?

CSS Exam Accounting & Auditing Group-A 2008 Past Papers - CSS Exam Pakistan Old Papers

This Paper is Presented by Mehnat.Pk


FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2008.

Accounting And Auditing, Paper 1


TIME ALLOWED:
(PART-I)…………30 MINUTES…………..…..MAXIMUM MARKS:20
(PART-II)…………2 Hours & 30 Minutes……..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30 Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.


Accounting And Auditing, Paper 1
PART-I (MCQ)
(COMPULSORY)
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Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

1. Identify the item that is likely to serve as source document:
a. Trial balance
b. Income statement
c. Balance sheet
d. Invoice from supplier

2. Identify which of the normal balances (in parentheses) assigned to the following accounts is incorrect:
a. Office supplies (Debit)
b. Cash (Debit)
c. Wages payable (Credit)
d. Free earned (Debit)

3. The formula (Cost less salvage value/Total capacity in units x units extracted) refers to which depreciation method:
a. Straight line
b. Units of production
c. Declining balance
d. Depletion

4. While passing adjusting entries for what type of transactions expenses are debited and assets are credited:
a. Accrued revenue
b. Accrued expenses
c. Declining balance
d. Depletion

5. Of the following statements, which one is untrue for the corporate form of organization:
a. It is a separate legal entity
b. It has a limited life
c. Income that is distributed to owners is usually taxed twice
d. Ownership rights can be easily transferred

6. For each transaction, double-entry accounting requires which of the following:
a. Debits to asset accounts must create credits to liability or equity accounts
b. A debit to a liability account must create a credit to an asset accounts
c. Total debits must equal total credits
d. None of these

7. When costs are rising, which method reports higher net income:
a. LIFO
b. FIFO
c. Average
d. The most recent purchase price

8. A transaction caused Rs. 20,000 decrease in both total assets and total liabilities. This transaction could have been:
a. Purchase of an asset for Rs. 20.000 cash
b. Asset costing Rs. 20,000 destroyed by fire
c. Repayment of Rs. 20,000 bank loan
d. Collection of Rs. 20,000account receivable
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9. What percentage of profit a bank has to transfer to statutory reserve until it inflates to paid-up capital of the bank:
a. 5%
b. 10%
c. 20%
d. 25%

10. Identify the correct answer with regards to depreciation expense:
a. Is an application of the matching principle?
b. Is a closing entry?
c. Usually includes an offsetting credit either to cash or accounts payable.
d. Is not an adjusting entry?

11. Comparison of a company’s financial condition and performance across time is a:
a. Ration analysis
b. Horizontal analysis
c. Vertical analysis
d. None of these

12. Income and expenditure account in a non trading institution records transaction of:
a. Revenue nature only
b. Capital nature only
c. Both (a) & (b)
d. Income of revenue nature and expenditure of revenue and capital nature

13. At the time of admission of a new partner, goodwill raised should be written off in:
a. New profit sharing ratio
b. Old profit sharing ration
c. Sacrificing ratio
d. Gaining ratio

14. A and B are partners in the ratio of 2:1. They admit C for ¼ shares who contribute Rs. 3000 for his share of goodwill. Total value of the goodwill of the firm is:
a. Rs. 3000
b. Rs. 9000
c. Rs. 12000
d. 15000

15. Second hand machinery worth Rs. 10, 000 was purchased, repairing of the machinery cost Rs. 1,000. The machinery was installed by own workers. Wage for this being Rs. 200, the machinery account should be debited for:
a. Rs. 10,000
b. Rs. 11,000
c. Rs. 11,200
d. None of these

16. If net sales Rs. 100,000 cost of goods sold Rs. 55,000, administrative expenses Rs. 5300, selling expenses Rs. 4375, Interest expense Rs. 500, the operating profit is:
a. Rs.35325
b. Rs.45000
c. Rs.39700
d. Rs.34825

17. Which of the ratio best reflects a company’s ability to meet immediate interest payment?
a. Debit ratio
b. Equity ratio
c. Times interest earned
d. None of these

18. Identify which items are subtracted from the list amount and not recorded when computing purchase price:
a. Freight in
b. Trade discount
c. Purchase discount
d. Purchase return

19. Bonus payable only on the maturity of the policy is termed as:
a. Cash bonus
b. Reversionary bonus
c. Interim bonus
d. Bonus is reduction of premium

20. Rebate on bill discounted (unearned discount) is:
a. An expense
b. An income
c. A liability
d. An asset



Accounting And Auditing, Paper 1
PART-II





NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY THREE questions from PART-II including Question No.2 which is Compulsory. Q.No.2 carries 30 Marks all other questions carry 25 Marks each.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.


Q.2 Give short answer to the following:
i. Define each component of accounting equation.
ii. Identify stakeholders in Insurance Company.
iii. Identify the meaning of accounting related acronym GAAP.
iv. Define adjusted trial balance.
v. Describe financing activities in the context of cash.
vi. Explain the difference between financing reporting and financial statements.
vii. Explain salvage value of an asst.
viii. Define Franchises and licenses
ix. Explain acronym FOB destination.
x. Explain accrual accounting system.
xi. Explain Matching Concept.
xii. Define Debit Note.
xiii. Describe re-valuation Accounts.
xiv. What is meant by interim accounts?
xv. Bring out the importance of preparing Trial Balance.

Q.3 The Following Balances appeared in the books of X Ltd. As on 31st December 2006.

Debit Balances Rs. Credit Balances Rs.
Building 50,000 Subscribed & Paid up Capital 3,00,000
Purchases 50,451 General Reserve 1,25,000
Manufacturing Exp 1,79,500 Unclaimed Dividends 3,663
Establishment Exp 1,407 Trade Creditors 18,029
General Charges 15,539 Sales 4,91,974
Machinery 10,000 Depreciation Reserve 35,500
Motor Vehicles 7,500 Interest on Investments 4,272
Furniture 250 Profit & Loss A/c (01-01-06) 8,423
Opening Stock 86,029 Staff Provident Fund 18,750
Book Debts 11,690
Investments 1,44,475
Cash 36,120
Director’s Fees 900
Interim Dividend 7,500
TOTAL 1,005,611 TOTAL 1,005,611

From these balances and the following information, preparethe company’ Balance Sheet as on 31st December, 2006 and its profit and Loss Account for the year on that date:

a) The stock on 31st December, 2006 was valued at Rs. 74,340.
b) Provide Rs. 5,000 for depreciation on fixed assets, Rs. 3,250 for Managing Director’s commission and Rs. 750 for the company’s contribution to their staff provident Fund.
c) Interest accrued on investment amounted to Rs. 1,375.
d) A provision of Rs. 4,000 for taxes in respect of profit 2006 is considered necessary.
e) The directors propose a final dividend @ 5%

Q.4. The following data are extracted from the published accounts of two companies in an industry:
X CO. Ltd Y CO. Ltd
Rs. Rs.
Sales 16,00,000 15, 00,000
Profit after tax 61,500 79,000
Equity Capital 5,00,000 4,00,000
(Rs. 10 per share fully paid)
General Reserve 1,16,000 3,21,000
Long- Term Debts 4,00,000 3,30,000
Creditors 1,91,000 2,74,500
Bank Credit (short term) 30,000 1,00,000
Fixed Assets 7,99,500 7,95,000
Inventories 1,65,500 4,40,500
Other Current Assets 2, 72,000 2,26,000

You are required to calculate the following Ratios of both companies;
(a) Current ratio
(b) Quick Ratio
(c) Net profit Ratio
(d) Stock turn over
(e) Debt equity ratio


Q.5. Rizwan Company is preparing a cash budget for July. The following estimates were made:
(a) Expected cash balance, July 1, Rs.5, 000.
(b) Income tax rate is 40% based on accounting income for the month, payable in the following month.
(c) Rizwan’ s customers pay for 50% of their purchase during the month of purchase and the balance during the following month. Bad debts are expected to be 2%
(d) Merchandise is purchased on account for resale, with 25% of purchases paid for during the month of purchase and the balance paid during the following month.
(e) Marketing and administrative expenses are all paid in the current month.
(f) Dividends of Rs.15, 000 are expected to be declared and paid during July.
(g) Rizwan’s desire is to have a minimum month –end cash balance of Rs.5, 000.
(h) Other budgets include the following estimates:

June (Rs.) July (Rs.)
Sale (all on account) ------------------ 30,000 40,000
Purchase --------------------------- 10,000 15,000
Depreciation Expenses--------------- 5,000 6,000
Cost of Goods Sold------------------ 12,000 16,000
Other marketing expenses ---------- 9,000 10,000

Requirement: Prepare a cash budget for July. (25)

Q.6. Given below is the Receipts and payments account of the Fan Club for the (25)
year ending 31st December 2006:

Rs. Rs.
Balance B/D 10,250 Salaries 6,000
Subscription: Genera expenses 750
2005 400 Drama expenses 4,500
2006 20,000 Newspapers etc. 1,500
2007 600 Municipal taxes 400
Donations 5,400 Charity 3,500
Proceeds of drama tickets 9,500 investments 20,000
Sale of waste paper 450 Electricity 9,000
TOTAL 47,100 TOTAL 47,000

Prepare the Club’s income and expenditure account for the year ended on 31st December , 2006 and its balances sheet as on that data, after taking the following information into account:

a) There are 500 members, each paying an annual subscription of Rs. 50,
Rs. 500 being in arrears for 2005.
b) Municipal taxes amounting to Rs.400 per annum have been paid upto 31st March 2007, and Rs. 500 for salaries is amounting .
c) Buildings stood in the books at Rs. 50,000 and it is required to write off depreciation at 5 percent.
d) Three percent interest has accrued on investment for five months





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FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2008.

Accounting And Auditing, Paper 2

TIME ALLOWED:
(PART-I)…………30 MINUTES…………..…..MAXIMUM MARKS:20
(PART-II)…………2 Hours & 30 Minutes……..MAXIMUM MARKS:80

NOTE:
(i) First attempt Part-I (MCQ) on separate Answer Sheet which shall be taken back after 30 Minutes.
(ii) Overwriting/cutting of the options/answers will not be given credit.


Accounting And Auditing, Paper 2
PART-I (MCQ)
(COMPULSORY)




Q.1. Select the best option/answer and fill in the appropriate box on the Answer Sheet. (20)

1. A job-order costing system is most appropriate for which of the following types of manufacturing?
a. Flour milling
b. Paper manufacturer
c. Automobile manufacturer
d. Shipbuilders

2. The predetermined overhead is:
a. Determined at the end of the accounting period
b. Determined by dividing the allocation base by the estimated overhead
c. Used in a normal cost system
d. Never applied to the work in process at the end of the period

3. Actual overhead costs appear:
a. On a job cost sheet
b. In the work in process account
c. In the financial goods account
d. In the manufacturing overhead accounts

4. Which of the following is a clearing account?
a. Manufacturing summary
b. Manufacturing overhead
c. Depreciation expense
d. Accumulated depreciation

5. Which of the following is a benefit of a just-in-time (JIT)inventory system?
a. Decreased facility-level activity
b. Reduction in investment funds
c. Reduction in skilled labour
d. Reduction in waste

6. The basic concept which recognizes that the cost of internal control should not exceed the benefits expected to be derived is known as:
a. Reasonable assurance
b. Management responsibility
c. Limited liability
d. Management by exception

7. Which of the following eliminates details from the working trial balance by classifying and summarizing similar or related items?
a. Lead schedules
b. Control accounts
c. Supporting schedules
d. Accounts analysis

8. Which of the following would be least likely to be considered a control objective?
a. Safeguarding assets
b. Detecting management fraud
c. Accuracy of accounting data
d. Adherence to managerial policies

9. Which of the following statements is false?
a. Checklist is a method of internal control for a small business
b. Two types of audit tests are compliance tests and substantive tests
c. Materiality and audit risk have direct relationship
d. Internal control consists of both accounting controls and administrative controls

10. Which of the following is principle purpose of evaluation on internal control?
a. Compliance with auditing standards
b. Checking efficiency of management
c. Issuance of letter of weakness in internal control
d. Determining nature, timing and extent of substantive audit test
e. None of these

11. Which of the following assets is not eligible for initial depreciation allowance?
a. Vehicle for factory labour
b. Professional books
c. Vehicle plying for hire
d. Ship

12. Which of the following is capital asset under the Income Tax Ordinance, 2001?
a. Shares of a company
b. Copy rights
c. Patents rights
d. Stock of goods

13. Which of the following is an agricultural income?
a. Royalty income for miners
b. Income from cultivation of rice
c. Income from sale of irrigation water
d. Income from poultry farm

14. Which of the following expenditures is admissible under the head income from Business?
a. Cost of issue of shares
b. Wealth tax
c. Loss by fire
d. Interest payable to partner

15. Which of the following rental income is exempted from tax under the head Income from Property?
a. Property income held under trust
b. Self-occupied residential property
c. Income from agricultural building
d. All of these

16. The face values and market value of shares remain the same in case of:
a. Public limited company
b. Co-operative society
c. Single member company
d. Private limited company

17. Which of the following combination of business makes different types of goods and have in common either raw material or final product?
a. Horizontal
b. Vertical
c. Circular
d. Lateral

18. The status of Chamber of Commerce and Industry in Pakistanis:
a. Partnership
b. Association of persons
c. Limited company
d. Club

19. Markets are necessary because:
a. Demand always exceeds supply
b. Barter cannot work properly
c. Competition is encouraged
d. Buyers and sellers are different people

20. Discovery of business opportunities and arrangement of property, funds, and management ability to set up a business is called:
a. Incorporation
b. Integration
c. Amalgamation
d. Promotion






Accounting And Auditing, Paper 2
PART-II


NOTE:
(i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II selecing ONE question from each section I,II,III,IV. All Questions carry equal marks.
(iii) Extra attempt of any question or any part of the attempted question will not be considered.
(iv) Use of Simple Calculartor is allowed.


Section-I (Cost Accounting)



Q.2 The Solo Company uses process cost system. Tailoring department of the company produces cotton shirts. All direct materials are introduced at the process. Conversion costs are incurred uniformly throughout the process. The company started 500 shirts. It completed and transferred 400 shirts. At the end of the month 80 shirts were in process. Each shirt in ending work in process was 75% converted. Cost incurred during May; direct materials Rs. 43200 and conversion costs Rs. 92000.

Required: Prepare Cost of Production for the month of May,2007

Q.3 The materials analyst for moderate Company is asked to determine the number of units of material A to order for March delivery. The production schedule calls for 10000 units of this material for January operations; 13500 units for February; and 14800 units for March. On January 1, the inventory shows 10000 units on hand; 14000 units are on order for January delivery; and 13000 units oin order for February delivery; and 7500 units minimum reserve inventory is maintained.

Required: Determine the quantity to order for March delivery.



SECTION-II (Auditing)



Q.4 Draw a specimen of unqualified audit report of a public limited company?

Q.5 Differentiate between internal audit and statutory audit?



SECTION-III (Income Tax)



Q.6 What are various sources of income chargeable to tax under the head “Income from other sources”?

Q.7 Mr. Ali is an officer in AB Company Ltd. He supplied information for the year ending June30, 2007 as started below:

i. Basic salary per month Rs. 25000.
ii. Dearness allowance Rs. 14000.
iii. House Rent allowance per month Rs. 12500.
iv. Gas and electricity allowance Rs. 15000.
v. Conveyance allowance Rs. 2500 per month.
vi. Medical allowance Rs. 1500 per month.
vii. Leave fare assistance including hotel bill Rs. 13000
viii. Insurance money received on maturity of policy Rs. 150000.
ix. Income from Khas Deposit Certificate Rs. 500.
Required: Calculate tax liability of Mr. Ali.



SECTION-IV (Business Organization & Finance)



Q.8 Define business combination? What are the causes of business combinations?

Q.9 Differentiate between unlisted company and lised company in Pakistan?

Posted at 3/17/2013 12:11:00 am |  by Muhammad Kashaan
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