Saturday, May 30, 2020
11:36 AM (GMT +5)

Go Back   CSS Forums > CSS Past Papers > CSS Papers (1971-2015) > CSS 2004 Papers

Reply Share Thread: Submit Thread to Facebook Facebook     Submit Thread to Twitter Twitter     Submit Thread to Google+ Google+    
 
LinkBack Thread Tools Search this Thread
  #1  
Old Wednesday, July 25, 2007
Last Island's Avatar
Royal Queen of Literature
Medal of Appreciation: Awarded to appreciate member's contribution on forum. (Academic and professional achievements do not make you eligible for this medal) - Issue reason: AppreciationBest Moderator Award: Awarded for censoring all swearing and keeping posts in order. - Issue reason: Best ModGold Medal: Awarded to those members with  maximum number of  reputation points. - Issue reason: For the year 2007, 2008, 2009, 2010, 2011Member of the Year: Awarded to those community members who have made invaluable contributions to the Community in the particular year - Issue reason: 2008Diligent Service Medal: Awarded upon completion of 5 years of dedicated services and contribution to the community. - Issue reason: More than 5 years of dedicated servicesModerator: Ribbon awarded to moderators of the forum - Issue reason:
 
Join Date: May 2005
Location: Forest of Fallen Stars
Posts: 7,558
Thanks: 2,416
Thanked 15,811 Times in 4,992 Posts
Last Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardom
Default Accountancy and Auditing Papers 2004

FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2004.

ACCOUNTANCY AND AUDITING

PAPER - I

TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100

NOTE: (i) Attempt FIVE questions in all. Including question No. 5 & 6 which are compulsory. Qs 5 carrries 40 marks. All other questions carry EQUAL marks i.e. 20 marks each.
(ii) Give workings to solution of questions, wherever relevant.


1. What is a Trial Balance? Why is it prepared? What are the two methods of preparing it and which of them is a better one and why?

2. Answer the following short questions briefly. Each question carries two marks.

(a) Define ledger
(b) List three disadvantages of not preparing the Trial Balance
(c) Give Two examples of errors of principle.
(d) State two methods of charging depreciation on fixed assets
(e) What is reserve for doubtful debts?
(f) Why is revaluation account prepaid?
(g) Enumerate at least four reasons for which a cheque is dishonoured.
(h) What are capital receipts?
(i) Name two methods of preparing final accounts final accounts from incomplete records.
(j)What do you understand by closing entries?

3.
Given below is the Receipts and payments account of the Eagle Club for the year ending 31st December 2003.

Balance b/d …………………………..….. 10,250
Subscriptions
2002………..………..………..………….… 400
2003………..………..………..……….…… 20,500
2004………..………..………..………….… 600
Donations………..………..……………... 5,400
Proceeds of drama tickets ……….. 9,500
Sales of waste paper ………..…….. 450
TOTAL ………..………..………... 47,100

Salaries………..………..………..……….. 6,000
General expenses………..………..….. 750
Drama expenses…………………….…… 4,500
Newspaper etc. …………………………. 1,500
Municipal taxes ………..……………….. 400
Charity ………..………..………..….……. 3,500
Investments ………..………..….…..…. 20,000
Electricity Charges ………..….………. 1,450
Balance c/d ………..………..….…..….. 9,000
TOTAL ………..…….…..……….… 47,100

Required: Prepare the Club’s Income and Expenditure Account for the year ended 31st December 2003 and its Balance sheet as on that date, after taking the following information into account.
  1. There are 500 members, each paying on annual subscription of Rs. 50, Rs, 600 being in arrears for 2002.
  2. Municipal taxes amounting to Rs. 400 per annum have been paid up to 31st March 2004 and Rs. 500 for salaries in outstanding.
  3. Building stood in the books at the Rs. 60,000 and it is required to write off depreciation at 5 percent.
  4. Four percent interest has accrued on investments for five months.

4.
A and B were in partnership sharing profit and losses in the proportion of three fourth and one fourth respectively. Their balance Sheet stood as follows on 31st December 2003.

LIABILITIES …….…….…. Rs.
Creditors …………………....... 37,500
Capital Account
A ……………………………......… 40,000
B…………………………......……. 10,000
TOTAL ……………….…… 87,500

ASSETS …………….….. Rs.
Cash at bank ………... 22,500
Bill receivable……..…. 3,000
Book debts…………..… 16,000
Stock………..………….. 20,000
Furniture………..…….. 1,000
Building………..…….... 25,000
TOTAL……………... 87,500

They admitted C into partnership 1st January 2004 on the following terms:
  1. The C pays Rs. 10,000 as his capital for 1/5 share in the future profits.
  2. That goodwill for Rs. 20,000 is raised in the books of the new firm.
  3. That stock and furniture are reduced by 10% and that a 5% provision is made for likely bad debts.
  4. That the capital Accounts of A and B are readjusted on the basis of their profit sharing ratios.
Required: Pass the necessary journal entries and give the ledger Accounts and opening Balance Sheet of the new firm.

COMPULSORY QUESTION

5. The following balances appeared in the books of a merchant on 31st December, 2003.

Building……….……….…………….70,000
Motor trucks……….……….…….12,000
Furniture……….……….…….…...1,640
Sundry debtors……….………….15,600
Sundry creditors……….….…….18,852
Stock……….……….……….……….15,040
Cash in hand……….……..…..….988
Cash at bank……….…….……….14,534
Bills receivable……….………..….5,844
Bills payable……….……….……….6,930
Purchases……….……….…..…….85,522
Sales……….……….……….…...….1,21,850
Capital……….……….…………..….92,000
Carriage on purchase……..….1,291
Carriage on sales………..…..…800
Reserve for bad debts….…….1,320
Establishment……….…….…....2,135
Taxes & Insurance…….…..….783
Interest (Cr.) …….….…..…….340
Bad Debts……….….……….…….613
Audit fee……….……….……..….400
General charges……….…....…3,950
Travelling expenses ……….….325
Discount (Dr.) …….….…….….620
Investments……….……………..8,922
Sales returns………..……...….285

Required:
Prepare Trading and Profit and Loss account for the year ended 31st December 2003 and Balance Sheet as on that date. In doing so take the following matters into consideration.
  1. Stock on 31st December, 2003 amounted to Rs. 15,500.
  2. Depreciate Motor Trucks at 20 per cent and Furniture at 10 percent.
  3. Increase Bad Debts Reserve by Rs. 1000
  4. Salaries Rs. 500 and Taxes Rs. 150 are outstanding
  5. Unexpired Insurance Rs. 50
  6. Interest accrued on Investments Rs. 210
  7. Rent due for a portion of the Building let Rs. 150
  8. A bill receivable for Rs. 500 was discounted in December 2003 but was not due till January next.

6. Deliver the correct answer in the Answer Book. Over writing is not allowed.

(1) The need for keeping a record of income and expenditure is a clear and systematic manner has given rise to the subject of:
(a) Book keeping
(b) Accounting cycle
(c) Manufacturing
(d) None of these

(2) If proper books of accounts are not kept in a business the amount of profit:
(a) Can be ascertained
(b) Cannot be ascertained
(c) Easily ascertained
(d) None of these

(3) The stage under which transactions are recorded chronologically in the books of accounts is called:
(a) Summarizing
(b) Classifying
(c) Recording
(d) None of these

(4) Book-keeping is mainly concerned with:
(a) Recording of a financial data relating to business transactions
(b) Designing the systems in recording, classifying, summarizing the recorded data
(c) Interpreting the data for internal and external users
(d) None of these

(5) The term expenses and expenditure are:
(a) Same in nature
(b) Different in nature
(c) Opposite in nature
(d) None of these

(6) When goods are given away as charity or free samples, the purchases account should be:
(a) Debited
(b) Credited
(c) Recorded in balance sheet
(d) None of these

(7) The sake of a business asset on credit is recorded in:
(a) Sales journal
(b) General journal
(c) Cash receipt journal
(d) None of these

(8) The discount account is a:
(a) Personal account
(b) Real account
(c) Nominal account
(d) Asset account
(e) None of these

(9) The payment side of the cash book is under cost by Rs. 200 when overdraft as per bank statement is the starting point:
(a) Rs 200 will be deducted
(b) Rs 200 will be added
(c) Rs 400 will be added
(d) Rs 400 will be deducted

(10) All the direct expenses are charged to:
(a) Balance sheet
(b) Profit and Loss account
(c) Trading account
(d) None of these

(11) Those liabilities which arise only on the happening of some event, are called:
(a) Current liabilities
(b) Contingent liabilities
(c) Outstanding liabilities
(d) Fixed liabilities

(12) Marshalling of balance sheet means:
(a) The ordering of its assets and liabilities
(b) The totaling of its assets and liabilities
(c) Excess of assets over liabilities
(d) None of these

(13) Commission received in advance is to be considered as:
(a) Outstanding expense
(b) Accrued income
(c) Prepaid expense
(d) Unearned income

(14) The provision for discount on creditors is often not provided in keeping with the principle of:
(a) Materiality
(b) Consistency
(c) Conservatism
(d) Realization

(15) Which one of the following is not considered the permanent part of the accounting record:
(a) Journal
(b) Trial Balance
(c) Balance sheet
(d) Final accounts

(16) A working paper which is prepared by the accountant for his own convenience is called:
(a) Work sheet
(b) Cash flows statement
(c) Balance sheet
(d) Final accounts

(17) Any expenditure incurred to increase the profit earning capacity of the concern is a:
(a) Revenue expenditure
(b) Capital expenditure
(c) Deferred revenue expenditure
(d) Capital expenditure

(18) Depreciation on fixed assets is an example of:
(a) Revenue expenditure
(b) Capital expenditure
(c) Deferred revenue expenditure
(d) None of these

(19) The capital receipts are shown in the balance sheet on the:
(a) Liability
(b) Asset side
(c) Debit side
(d) None of these

(20) Error due to wrong allocation as expenditure between capital and revenue is regarded as:
(a) Error of omission
(b) Error of principle
(c) Compensation errors
(d) Error of commission
__________________
The Me you have always known, the Me that's a stranger still.
Reply With Quote
  #2  
Old Wednesday, July 25, 2007
Last Island's Avatar
Royal Queen of Literature
Medal of Appreciation: Awarded to appreciate member's contribution on forum. (Academic and professional achievements do not make you eligible for this medal) - Issue reason: AppreciationBest Moderator Award: Awarded for censoring all swearing and keeping posts in order. - Issue reason: Best ModGold Medal: Awarded to those members with  maximum number of  reputation points. - Issue reason: For the year 2007, 2008, 2009, 2010, 2011Member of the Year: Awarded to those community members who have made invaluable contributions to the Community in the particular year - Issue reason: 2008Diligent Service Medal: Awarded upon completion of 5 years of dedicated services and contribution to the community. - Issue reason: More than 5 years of dedicated servicesModerator: Ribbon awarded to moderators of the forum - Issue reason:
 
Join Date: May 2005
Location: Forest of Fallen Stars
Posts: 7,558
Thanks: 2,416
Thanked 15,811 Times in 4,992 Posts
Last Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardomLast Island is headed toward stardom
Default



FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION FOR RECRUITMENT TO POSTS
IN BPS – 17 UNDER THE FEDERAL GOVERNMENT, 2004.

ACCOUNTANCY AND AUDITING

PAPER - II

TIME ALLOWED: THREE HOURS MAXIMUM MARKS:100

NOTE: (i) Attempt FIVE questions in all. Including question No. 9 which is compulsory.
(II) Select at least ONE QUESTION from each of the PART A,B,C and D. All questions carry equal marks.

PART – A (COST ACCOUNTING)

1. Define Cost Accounting. Discuss its objectives and distinguish it from financial accounting.

2. The following data relate to the Shirley Company:

----------------------------------------Inventories
-----------------------------------ENDING…… BEGINNING
Finished goods ………………………………… 95,000……….. 10,000
Work in process…………………………….…. 80,000……….. 70,000
Direct material………………………….……… 95,000………... 90,000

Costs incurred during the period:
Costs of goods available for sale…….……X………........684,000
Total manufacturing costs…………….……..X…….....…..584,000
Factory overhead………………………….……..X…….....…..167,000
Direct materials used…………………….……..X……….......193,000

Required: Statement of cost of goods sold, including all beginning and ending inventories.

PART – B (AUDITING)

3. Define Final Audit and explain its merits and demerits.

4. What is an Audit Program? Explain its advantages and limitations.

PART – C (INCOME TAX)

5. (a) Discuss the residential status of the following Taxpayer:
(i) Individual
(ii) Company
(iii) Association of person

(b) List down the constituents of Income Tax Law in Pakistan.

6. From the following data, calculate income tax payable by Mr. Fahad for the tax year ending 30th June, 2003.
  1. Basic salary……….……….……….……….……….……….……….……….……….….….15,0 00
  2. Bonus……….……….……….……….……….……….……….……….……….……….……..1 0,000
  3. Senior post allowance……….……….……….……….……….……….……….………..2,000
  4. House rent allowance……….……….……….……….……….……….……….….....… 1,25,000
  5. Medical allowance (Actual Expenditure incurred Rs. 3000) ……….….….4,000
  6. Entertainment allowance (Actual Expenditure incurred Rs. 3000) …….6,000
  7. Gas and electricity allowance……….……….……….……….……….……….………18,000
  8. Leave encashment……….……….……….……….……….……….……….……….…….2,500
  9. Special pay……….……….……….……….……….……….……….……….……….….…. 2000
  10. Orderly allowance……….……….……….……….……….……….……….………..…….5,000
  11. Income as non professional writer……….……….……….……….……….…..…..4,500
  12. Special allowance……….……….……….……….……….……….……….………..…….8,000
  13. Donation to bait-ul-Mal……….……….……….……….……….……….……….……..2,000
  14. Zakat paid……….……….……….……….……….……….……….……….……….……….3,000

PART – D (BUSINES ORGAZIATION AND FINANCE)

7. (a) Describe registration of partnership. What are the consequences of non-registration?
(b) Enumerate rights, duties and liabilities of partners.

8. (a) Define business finance and discuss the advantages and disadvantages of debt financing.
(b) What is a capital market? Explain in detail.

COMPULSORY QUESTION

9. Write only the correct answer in the Answer Book. Do not reproduce the questions.

(1) The heat treatment department at Noori Pipe is the third department in a sequential process. The work in process account for the department would consist of:
(a) Costs transferred in from the prior department
(b) Materials costs added in the heal treatment department
(c) Conversion costs added in the heat treatment department
(d) All of the above
(e) None of these

(2) Jingo Products uses the weighted average method in its process costing system. Last month in the milling department the cost per equivalent unit for conversion cost was Rs. 105. A total of 540 equivalent units of conversions cost were used to compute this unit’s cost. The total conversion cost added during the month was Rs. 54,500. What was the amount of conversion cost in the beginning work in process inventory?
(a) Rs. 0
(b) Rs. 2200
(c) Rs. 4200
(d) Rs. 3000
(e) None of these

(3) Shahzad Corp. uses the FIFO method in its process costing system. The company had Rs. 6000 of material cost in its beginning work in process inventory and the company added Rs. 75,000 in materials cost during the period. The equivalent units of production for materials were 20,000. The unit cost per equivalent unit for material would be:
(a) 3.75
(b) 4.05
(c) 0.30
(d) 3.30
(e) None of these

(4) Costs in the beginning work in process inventory are added to the cost of the current period when making units cost calculations by:
(a) The FIFO cost method
(b) The weighted average cost method
(c) The quantity schedule method
(d) LIFO method
(e) None of these

(5) A chemical process has normal wastage of 10% of input. In a period, 2500 kgs of material were input and there was an abnormal loss of 75 kgs. What quantity of good production was achieved?
(a) 2175 kgs
(b) 2250 kgs
(c) 2325 kgs
(d) 2425 kgs
(e) None of these

(6) Premium on issue of shares can be used for:
(a) Payment of dividends
(b) Writing off preliminary expenses
(c) Paying fees to directors
(d) Redemption of debentures
(e) None of these

(7) ???

(8) Pre incorporation profit is to be credited to:
(a) Capital reserve
(b) Profit and loss account above the line
(c) Profit and loss account below the line
(d) General premium
(e) None of these

(9) The excess of purchase price over the net asset is:
(a) Goodwill
(b) Capital Reserve
(c) Preliminary expenses
(d) Share premium
(e) None of these

(10) Statutory report is necessary in the case of:
(a) All Companies
(b) Public Limited Companies
(c) Foreign Companies
(d) Private Limited Companies
(e) None of these

(11) Dividends are usually paid on:
(a) Called up capital
(b) Paid up Capital
(c) Paid up capital call in advance
(d) Subscribed capital
(e) None of these

(12) Provision for taxation of a previous year was Rs. 100,000 and tax assessed for that year Rs. 80,000. This adjustment for this is:
(a) A credit of Rs. 100,000 below the line
(b) A credit of Rs. 80,000 below the line
(c) A credit of Rs. 20,000 above the line
(d) A credit of Rs. 20,000 below the line
(e) None of these

(13) Amount set apart to meet losses due to bad debt is a:
(a) Provision
(b) Reserve
(c) Liability
(d) Contingent liability
(e) None of these

(14) Advance Payment of tax is in the nature of:
(a) Asset
(b) Revenue expense
(c) Liability
(d) Prepaid expense
(e) None of these

(15) Values that express preferred behavior and the means by which one achieves his/her goals are known as:
(a) Terminal values
(b) Dominant values
(c) Instrumental values
(d) Affective values
(e) None of these

(16) Evaluate positive or negative-concerning people, objects, or events are called:
(a) Perceptions
(b) Attitudes
(c) Beliefs
(d) Values
(e) None of these

(17) The auditor is required to report that Financial Statement are:
(a) True & Correct
(b) True & Fair
(c) Complete & Correct
(d) Covering all required records
(e) None of these

(18) The auditors is required to report that Financial Statement are:
(a) Creditors
(b) Debtors
(c) Share holders
(d) Directors
(e) None of these

(19) Interim audit is conducted for examining the account for:
(a) Full one year
(b) Next one year
(c) Previous one year
(d) For a part of current year
(e) None of these

(20) Payment should be made preferably through
(a) Cross cheque
(b) Bank Draft
(c) Pay order
(d) Cash basis
(e) None of these

__________________
The Me you have always known, the Me that's a stranger still.

Last edited by Last Island; Wednesday, July 25, 2007 at 04:01 AM.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Accountancy and Auditing Papers 2005 Last Island CSS 2005 Papers 2 Tuesday, October 15, 2013 11:59 PM
Accountancy & Auditing, Papers - 2008 Usman Naseer CSS 2008 Papers 8 Friday, February 04, 2011 02:41 PM
Accountancy and Auditing Paper - 2006 Viceroy CSS 2006 Papers 3 Tuesday, December 15, 2009 06:36 PM
Accountancy and Auditing Papers 2007 Last Island CSS 2007 Papers 1 Thursday, October 11, 2007 12:15 AM
Accountancy and Auditing Papers 2002 Last Island CSS 2002 Papers 1 Tuesday, July 24, 2007 01:17 PM


CSS Forum on Facebook Follow CSS Forum on Twitter

Disclaimer: All messages made available as part of this discussion group (including any bulletin boards and chat rooms) and any opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and not of CSSForum.com.pk (unless CSSForum.com.pk is specifically identified as the author of the message). The fact that a particular message is posted on or transmitted using this web site does not mean that CSSForum has endorsed that message in any way or verified the accuracy, completeness or usefulness of any message. We encourage visitors to the forum to report any objectionable message in site feedback. This forum is not monitored 24/7.

Sponsors: ArgusVision   vBulletin, Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.