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Q - 1 .The liability side of the balance sheet of ABC International Ltd. is showing following position: Paid up share capital Rs.25 Lakh ( 25,000 shares of Rs.100 each fully paid up)Share premium Rs.5 Lakh, Capital Reserve Rs. 3 Lakh, General Reserve Rs. 15 Lakh and Profit & Loss account Rs. 15 Lakh .It was decided to use minimum free reserve for issue of 1:1 bonus shares.. The accounts and the amount with which the account is debited are given below in sets. One of the set is correct. Select the same.

Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 4 Lakh
Share Premium Account (Rs. Nil Lakh), Capital Reserve Account ( Rs. Nil Lakh), General Reserve Account (10 Lakh) & Profit & Loss Account by Rs. 15 Lakh
Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 3 Lakh), General Reserve Account (15 Lakh) & Profit & Loss Account by Rs. 2 Lakh
Share Premium Account (Rs.5 Lakh), Capital Reserve Account ( Rs. 1 Lakh), General Reserve Account (4 Lakh) & Profit & Loss Account by Rs. 15 Lakh

Q - 2 .On the retirement of the partner, the profits on revaluation of assets should be credited to the accounts of-----

All the partners in their profit sharing ratio
The remaining partners in their new profit sharing ratio
The remaining partners in their old profit sharing ratio
None of the above

Q - 3 .In operating lease the period is

Less than the useful life of the asset.
Greater than the useful life of the asset.
Equal to the useful life of the asset.
None of above

Q - 4 .Depreciation is a process of:

Valuation.
Allocation.
Both valuation and allocation
Non of these.

Q - 5 .Identify a pair which is mismatch from the following pairs in respect of Company Accounts

Miscellaneous Expenditure Preliminary Expenses
Contingent Liabilities footnote to balance sheet
Debentures Unsecured Loans
Outstanding Expenses Current Liabilities

Q - 6 .While preparing the final accounts of the company, the adjustments [(i) to (iv)] are to be made by passing necessary entries. One of the entries passed is wrong entry. Select the wrong entry.(i) Depreciate plant ,WDV of which is Rs.3,30,000 at 15% (ii) Write off Rs.5,000 from Preliminary Expenses (iii) Half years debenture interest due (12% debentures of Rs. 3,00,000) (iv) a claim of Rs. 25,000 for workmens compensation is disputed by the company.

Debit Depreciation on plant by Rs.49,500 credit plant by 49,500 AND Debit Profit & Loss Account by 49,500 and Credit Depreciation on plant by 49,500
Debit Profit and Loss Account by Rs.5,000 and Credit Preliminary Expenses
Debit Debenture Interest by Rs.18,000 & Outstanding Liability for Deb. Interest by 18,000 AND Debit Profit and Loss Account by Rs.18,000 and Credit Debenture Interest by Rs.18000
Debit Wages by Rs.25,000 & Credit Outstanding Liability for Workers compensation AND Debit Profit and Loss Account by Rs.25,000 and Credit Wages by Rs.25,000

Q - 7 .DT Ltd. issued shares of Rs.10 each at 10 % premium, payable on application Rs.2, on allotment Rs.3 (including premium), on first call Rs.2 and on final call Rs.4. One of the shareholders, applied for 100 shares but fail to pay allotment and first call money. At this stage, the said shares were forfeited. Select the account which was wrongly credited.

Credit Forfeited shares Account by Rs.200
Credit Share allotment Account by Rs.200
Credit share premium Account by Rs.100
Credit Share first call Account by Rs.200

Q - 8 .From the account given below, select the account which is wrongly included in Profit & Loss Appropriation Account at the debit side

Drawings Account
Partners Salary Account
Interest on Loan Account
Commission to Partners Account

Q - 9 .When a new partner gives cash for goodwill, the amount is credited to____

Goodwill account
Capital account of new partner
Cash account
None of the above

Q - 10 .Noting charges are

Paid to bank for dishonour
Paid to drawer for dishonour
Paid to notary public for recording dishonour
None of the above.

Q - 11 .Rate of return earned by an investor who purchases a bond and holds it till maturity is called as

Intrinsic Value
Coupon Rate
YTM
Redemption Value

Q - 12 ... At a certain rate of simple interest, a sum doubles itself in 5 years. It will be four times of Itself in

10 Years
15 Years
20 Years
25 Years

Q - 13 .Identify a pair which is mismatch from the following pairs in respect of Company Accounts

Discount on issue of shares Profit and Loss Account
Bill discounted contingent liabilities
Interest accrued and due on debentures Secured Loans
Mortgage Loan Secured Loans

Q - 14 .Which one is not among the three pillars of BASEL II ?

Minimum Capital Requirement
Supervisory Review Process
Risk Based Supervision
Market Discipline

Q - 15 .One of the accounts is wrongly debited to Profit and Loss Appropriation A/c of a company. Name the wrong account debited

Interim dividend
Proposed dividend
Provision for tax
Capital redemption reserve

Q - 16 .In how many years will a sum of money double itself at 8% per annum compound Interest?

8 Years
8 Years 6 months.
9 Years
9 Years 6 months

Q - 17 .Select the false statement in respect of assets

a banking company is allowed to acquire assets for its own use
a banking company is allowed to grant loans against the security of assets belonging to its customers
a banking company is allowed to take possession of such assets in case of default committed by the borrower
a banking company is not allowed to sale the assets against the security of which it has granted loans

Q - 18 .Read the following four journal entries which are passed to consider revaluation of assets and liabilities at the time of admission of a partner. One of the journal entries is wrong, choose the entry which is wrong.

For increase in the value of assets-Debit Asset Account and Credit Revaluation Account.
For decrease in the value of liabilities- Debit Liabilities Account and Credit Revaluation Account.
For Profit on revaluation of assets and liabilities Debit Old Partners Capital Account in old profit sharing ratio and Credit
For decrease in the value of assets -Debit Revaluation Account and Credit Asset Account

Q - 19 .In exchange of currencies deal, "cash" is also called as

TOM
Ready
Spot
Forward

Q - 20 .Depreciation on banks property is part of Operating Expenses. Some of the items included under this category are listed below. One of the expenses is wrongly included. Identify that item of expense.

depreciation on motor cars
depreciation on stationary and stamps
depreciation on furniture
depreciation on non-banking assets

Q - 21 .Due to heavy flooding a truck carrying consignment goods sinks. This loss is called

contingent loss
Nominal loss
Abnormal loss
Casual loss

Q - 22 .Suspense a/c is not used in which of the following cases.

before trial balance.
after trial balance.
before final accounts.
none of the above.

Q - 23 .O and P are two partners sharing profits in the ratio of 7:3. They admit Q into partnership as a partner from 1st April 2006 on 3/7th share in the profit. What is the new profit sharing ratio

0.58766203703704
0.29378472222222
0.084756944444444
None of the above

Q - 24 .Sales return of amount Rs.1000 from Vijay was wrongly entered in purchase book. The rectification is

Debit sales to the extent of Rs.2000.
Credit purchases to the extent of Rs.2000
Credit Vijay Rs.2000, debit sales and purchases to the extent Rs.1000, each.
Debit sales return by Rs.1000 and credit purchases by Rs.1000

Q - 25 .The exchange of currencies takes place on the date of the deal in

SPOT
TOM
Cash
Forward

Q - 26 .A, B and C share profits as 3:2:1. C retires. Calculate the gain ratio of A and B

0.12638888888889
0.041666666666667
0.083333333333333
None of the above

Q - 27 .The investment under held to maturity should not exceed _____ of banks total investment

0.25
0.75
0.05
None of the above

Q - 28 .. Private Sector Companies can issue .......... bonds

Secured
Unsecured
. Any one of the above
None of these

Q - 29 .A sum of money doubles itself in 16 years at simple interest with yearly rate of...

5.25%
6.25%
7.25%
8.25%

Q - 30 .. In TOM, the exchange of currencies take place on

Same Day
Next Day
Second Working Day
Third Working Day

Q - 31 .According to IRR, undertake those investments that has highest IRR, provided the IRR is ...... the cost of capital

Greater than
Equal to
Less Than
None of these

Q - 32 .Select the incorrect statement

Authorized capital is the capital with which the company is registered
Issued capital is equal to its authorized capital
Authorized capital, issued capital, subscribed capital, called up capital and paid up capital cannot be same
The amount which the company has asked its shareholders to pay is called up capital of the company.

Q - 33 .Which of the following is true

Trial balance ensures arithmetical accuracy.
Trial balance errors are not located then the difference is sent to suspense a/c.
Trial balance is base for final accounts.
All of the above.

Q - 34 .. Which is not one of the approaches proposed for measurement of operational risks ?

Basic Indicator Approach
Standardised Approach
Advanced Measurement
Internal Rating Based Approach

Q - 35 .Following are the journal during the process of application to allotment stage . One of the entries is wrong. Select the wrong entry.

Debit bank account and credit share application account ( when application money is received)
Debit share application account and credit share capital account (application transferred to share capital account)
Debit share capital and credit share allotment account ( for recording allotment money being fallen due )
Debit bank account and credit share allotment account ( for receipt of allotment money)

Q - 36 .Mr. Q and Mr. R were partners of a firm sharing profit and losses in the ratio of 3:2. They take S into partnership. It was agreed that S will pay Rs.1,00,000 as his share of goodwill which will be retained in business and also bring Rs.3,00,000 as capital for one fourth share in the future profits. The book value of the stock was 41,000 but was to be revalued at Rs.50,000, Accountant has passed following entries, but Mr. Q feels that one of the entry is wrong. Select the wrong entry from the following.

Debit cash and credit Goodwill for Rs.1,00,000
Debit cash and credit S s Capital for Rs.3,00,000
Debit Goodwill for Rs.1,00,000 and credit Q s Capital by Rs. 60000 & R s Capital by Rs. 40,000
Debit Stock and credit Profit & Loss Adjustment A/c by Rs.9,000

Q - 37 .L,K and P are partners. The following differences as listed at (i) to (iv) have arisen due to misunderstanding. The answer to each point is given at (a) to (d). One of the solutions is incorrect. Identify the wrong solution. (i) L used Rs.25,000 belonging to the firm and made a profit of Rs.4,000. K wants the amount to be given to the firm (ii) P used Rs.10,000 belonging to the firm and suffered a loss of Rs. 3000. He wants the firm to bear the loss (iii) L & K wishes to appoint S as new partner. P does not agree (iv) L has given loan of Rs. 50,000 to the firm, he wants interest at 6% ( there is no partnership deed)

K is right .L must pay Rs.29,000 to the firm
P is right . Firm should bear profit as well as losses.
P is right. No new partner can be admitted without the consent of all.
L is right. He is entitled for interest at 6% in the absence of partnership agreement.

Q - 38 .Which of the following is true

Bank Reconciliation Statement(BRS) is an account.
BRS is prepared by the bank.
BRS shows causes of disagreement between cash book & passbook.
BRS shows only excess of cash book over passbook.

Q - 39 .One of the pairs given below is wrong. Select the wrong pair.

Outstanding expenses - Nominal account
Profit and Loss Account (Dr. balance) Application of funds
Net worth less reserves & surplus - Capital
Balance sheet - Financial position

Q - 40 .The list given below consists of various securities. Identify the security which is SLR security

Securities issued by local authorities
Shares
Bonds
subsidiaries

Q - 41 .In sum of digits method for 5 years which of the following is the 1st year s allocation ratio

42005
42036
42095
42125

Q - 42 .Due to a fall in the rate of interest from 11% to 10.5%, a money-lender's yearly income from interest falls by Rs. 240. What is his principal amount?

Rs. 42,800
Rs. 41,600
Rs. 44,600
Rs. 48,000

Q - 43 .Opening balance of asset = Oi, Closing balance of asset = Oc, Depn. = D, Then addition to the asset during the year is

Oc D Oi
Oi + D Oc
Oc + D Oi
Oi D Oc

Q - 44 .A, B and C are three partner sharing profits in the ratio of 3:1:1. C retires and his share is purchased by B. the new profit sharing ratio shall be-----

0.12569444444444
0.29375
0.12638888888889
None of the above

Q - 45 .Select from the following , a statement which speaks about liabilities of an entity.

The liabilities consist of claims of the owners
The liabilities consist of claims of the owners and outsiders
The liabilities consist of claims of the outsiders
None of these

Q - 46 .Select the incorrect statement in respect of financial Statements of Banks

a banking company is not required to prepare financial statements in accordance with Schedule VI of the Companies Act , 1956.
The Act prescribes special forms of balance sheet and profit and loss account for the preparation of its final accounts
These are set out in form A and form B of the first schedule to the Banking regulation Act, 1949
Form A gives format of a balance sheet and form B gives the format of a profit and loss account

Q - 47 .The price at which two unrelated and non-desperate parties would agree to a transaction is called

Transfer Pricing
Arm's Length Price
Deal Price
None of these

Q - 48 .Select the incorrect statement in respect of utilization of share premium

it is used for the purpose of buy back of shares
it used for payment of dividend in case of inadequacy of profits
it is used for writing off preliminary expenses
it is used for issue of fully paid bonus shares

Q - 49 .Choose the wrong pair from the following. The information given in the pair is pertaining to banking companies

The company is an artificial person
A member of a company may bind the company by its actions.
The shareholders are not liable for the acts of the company
The premium received on shares may be distributed among shareholders.

Q - 50 .Preliminary Expenses is-----

Fictitious Asset
Current liability
Current asset
None of the above

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