Registration No.

Name

10
Course Title: Financial Accounting

Instructions

Answer all questions

Ensure you have picked up the correct answer sheet. The file name of the answer sheet
should correspond to your roll number
Read the questions carefully before answering. Be precise and to the point. Max marks
80
Save the answer templet on your machine

All questions are self-explanatory. Do not seek any clarifications. Make reasonable
& valid assumptions wherever necessary and state them clearly.

The question booklet has four parts and the answer to this excel sheet has sheets titled
for each part to input your answer.
The answer sheet (excel sheet) must be saved in the folloiwng format using your
registraiton number <registration numbe.xls>

The saved answer sheets should be mailed to <arun4corpfin@gmail.com>

I will be online when the examination ends and will immediately acknowledge the receipt
of the answer sheet. Please log out after you receive the acknowledgement only as this
will ensure that I have received the file.

ALL THE BEST !

 PART - A

Q No. Question (each quesiton carries one mark)

Choose the appropriate answer from the choice given

For a bank, interest income from the loans disbursed is a cash flow due to __________ activi
a. Financing
1 b. Operating
c. Investing
d. None of these

When a non-profit organization receives a generic donation, how do they account it?
a. They will treat it as revenue
2 b. They will add it to the capital
c. They will add it to the expenses
d. It will have no effect on the financial statements

Using the following information answer questions 3 to 5

Balance sheet of company X as on March 31, 2014 reports equity capital as Rs.1,00,000 with 10,000 iss
During the year 2014-2015 the earnings remained constant however the market price of company X’s
(Assume that no additional shares were issued and company has not retained any of the profit)

What is its effect on Debt-Equity ratio of the company?

a. Remain same
3 b. Increase
c. Decrease
d. None of these

What is the effect of tit on the Price Earnings ratio?

a. Remain same
4 b. Increase
c. Decrease
d. None of these

What will be the effect on Liquidity ratios if the company collected all receivables from debto
a. Increase
5 b. Decrease
c. Remain same
d. None of these
one mark) Your Answer

choice given

ue to __________ activity.

they account it?

1,00,000 with 10,000 issued shares.

et price of company X’s share doubled.
any of the profit)

ll receivables from debtors?

 PART - B

Use the following information for questions 1–8. (each question carries 2 marks)
The following items are taken from the financial statements of Cerner Company for the year ending Decem

Particulars Amount (Rs.)

Accounts payable 18,000

Accounts receivable 11,000

Accumulated depreciation-equipment 28,000

Advertising expense 21,000

Cash 15,000

Retained earnings as on January 01, 2018 80,000

Common stock 22,000

Dividends Paid 14,000

Depreciation expense 12,000

Insurance expense 3,000

Notes payable, due June 30, 2019 70,000

Prepaid insurance (12 month policy) 6,000

Rent expense 17,000

Salaries expense 32,000

Supplies on hand 4,000

Supplies expenses 6,000

Equipment 210,000

Supplies revenue 133,000

Q No. Question
 What is the company’s net income for the year ending December 31, 2018?
a. $133,000
1 b. $42,000
c. $28,000
d. $12,000

What is the total that would be reported for shareholders funds at December 31, 2018?
a. $102,000
2 b. $130,000
c. $144,000
d. $158,000

What are total current assets at December 31, 2018?

a. $26,000
3 b. $32,000
c. $36,000
d. $218,000

What is the book value of the equipment at December 31, 2018?

a. $238,000
4 b. $210,000
c. $182,000
d. $170,000

What are total current liabililites at December 31, 2018?

a. $18,000
5 b. $70,000
c. $88,000
d. $0

What are total long-term liabilities at December 31, 2018?

a. $0
6 b. $70,000
c. $88,000
d. $90,000

What is total liabilities and stockholders' equity at December 31, 2018?

a. $176,000
7 b. $190,000
c. $218,000
d. $232,000
 Assuming that no dividends or adjustments is made to the net income for year ended December
would be the retained earning as of December 31, 2018?
$42,000
8
b. $122,000
c. $213,000
d. $108,000
marks)
any for the year ending December 31, 2018:

Your Answer
31, 2018?

December 31, 2018?

018?
ome for year ended December 31, 2018, what
a.
 PART - C

Alpha Ltd has furnished the following ltd has furnished the closing balances of Assets & Liabilities for tw
2019 & 2020 and the Profit & Loss statement for the year ending March 31, 2020. You are requried to
statement for the year ending March 31, 2020 (19 marks)

Closing Balance of Assets and Liabilities (all figures in INR ‘000)

2019 2020
Fixed Assets (Land) 400,000 500,000
Preference Share Capital 50,000 20,000
Investments 200,000
Long term borrowing 30,000
Machinery 150,000 300,000
Equity share capital 250,000 500,000
Debentures 100,000 40,000
Cash in hand 41,000 200,000
Reserves and Surplus 291,000 291,000
Retained Earnings 100,000 119,000
T-C

balances of Assets & Liabilities for two years and viz. March 31,
arch 31, 2020. You are requried to prepare the cash flow

Profit & Loss Statement (all figures in INR ‘000)

Sales (Cash) 30,000

Interest received 10,000
dividend income 15,000
Total Revenue 55,000
Purchases (Cash) 15,000
Salaries and wages 5,000
Income tax 1,000
Debenture Interest 6,000
dividend (Preference share) 3,000
Dividend (Equity share) 6,000
Net Profit 19,000
 PART - D

Selected balance sheet items of a company for first four years of operations are shown below.
Find the 10 missing values (each blank carries
2 marks)

Year 1 Year 2 Year 3

Current Assets 113624 (C) 85124

Non-current Assets (A) 198014 162011

Total Assets 524600 (D) (F)

Current Liabilities 56142 40220 (G)

Non-current Liabilities (B) (E) 60100

Paid-up Capital 214155 173295 170000

Retained Earnings 13785 -3644 1452

Total Liabilities and Owners’

524600 228456 (H)
Equity

Answers

A F

B G

C H

D I

E J
 PART - D

The following table is the income statement of KG Enterprises for three years.
ons are shown below. Each income statement is missing some numbers; you are required to
(each blank carries
determine these missing numbers.
(each blank carries 2 marks)

Year 4 Year 1 Year 2

(I) Sales $2,250 $2600

151021 Cost of goods sold:

220111 Beginning inventory 300 225

Purchases 975 D

(J) Ending inventory A E

30222 Cost of goods sold B 1100

170000 Gross margin 1200 F

2350 Period expenses 300 400

220111 Net income (loss) $C $ G

Answers

A F

B G

C H

D I

E J
Enterprises for three years.
you are required to

Year 3

400

1200

300

500

$ 200