Financial Accounting old question papers

What is GAAP?

Define intangible asset.

What do you mean by business entity concept of accounting

Write about cash basis of accounting.

Write any two importance of cheque.<

The financial position of Kalika and Sons on Baisakh 2079 is as below: Cash in hand100,000Creditors150,000Furniture200,000Accruals50,000Debtors100,000Bills payable80,000Stock of goods70,000Required: Opening entry

In the beginning, Sardul Company had share capital of Rs 100,000 and retained earnings of Rs 50,000. During the year, the company reported a net income of Rs 30,000 and paid dividends of Rs 20,000. Additionally, the company issued 1,000 shares @ Rs 100 each. Required: Statement of change in equity for the year.

The following transaction are given: a. Goods costing Rs 60,000 was sold at 10% profit. b. Rent paid Rs 30,000 and outstanding rent was Rs 6,000 Required: Accounting equation

The following particulars are provided to you: Profit for the yearRs 15,000Loss on revaluationRs 18,000Gain from cash flow hedgesRs 14,000Gain on sale of investmentRs 15,000Required: Statement of Other Comprehensive Income as per NFRS

XYZ Company purchased a car at the cost of Rs 1,040,000 on $1^{st}$ Baisakh 2079. The estimated life of the car is 100,000 KMs with salvage value of Rs 40,000. During 2079 and 2080, the car was run for 20,000 KM and 18,000 KM respectively. Required: Depreciation for the year 2079 and 2080

Explain accounting process or cycle.

Write the meaning of capital expenditure with suitable example.

What is ledger? Why it is needed?

Following are the information of assets of a Company: Particulars20782079Plant and Machinery60,000120,000Building100,000200,000Investment70,000150,000Trademarks20,00040,000Cash and bank50,00025,000Inventory100,00050,000Account Receivable40,00020,000Required: Horizontal Analysis

The bank statement of a company shows a balance of Rs 50,000 on $30^{th}$ Chaitra 2079. However the company balance showed a different balance of Rs 30,000. On the investigation, the following differences were noticed:

• Outstanding cheque Rs 25,000
• Deposit in transit Rs 15,000
• A customer's cheque of Rs 5,000 was return with the bank statement marked NSF.
• Collection of notes receivable for Rs 6,000 and interest on investment Rs 2,000
• Bank charge Rs 1,000 for the service provided by the bank
• Bank paid Rs 10,000 under instruction of a company. However, the company recorded Rs 18,000 in its statement. Required: Bank reconciliation statement

The following information is provided to you: SalesRs 500,000Material consumedRs 150,000Carriage on purchaseRs 30,000Administrative expensesRs 40,000Wages and salariesRs 60,000Interest on loanRs 20,000Dividend receivedRs 10,000Depreciation on equipmentRs 30,000Income tax paidRs 10,000Required: a. Value added statement and b. Net profit for the year

Saswat Pvt. Ltd, an automobile service center, acquired machinery on the $1^{st}$ of Baisakh 2077 for Rs 400,000. They made another machinery purchase for Rs 500,000 on the $1^{st}$ of Kartik 2078. On the $1^{st}$ of Kartik 2079, they sold the first machinery for Rs 280,000 as it was found unusable. Depreciation is to be accounted for at a rate of 15% per annum using the straight line method. Required: Machinery account for the three-year period from 2077 to 2079, assuming that the books are closed on the $31^{st}$ of Ashad each year.

Explain the interconnection between bookkeeping, accounting, and accountancy, illustrating with an appropriate example.

What is accounting standard? Also, explain the needs and limitations of accounting standards.

The Trial balance of ABC Company as on $31^{st}$ December 2022 is given below: ParticularsDebit (Rs)Credit (Rs)Equity share capital500,000Building400,000Goodwill20,00012% Bank loan100,000Revenue from operations/sales500,000Purchase200,000Salaries expenses33,000Cash at bank37,000Investment150,000Account payable70,000Account receivable50,000Commission received30,000Prepaid insurance24,000Office rent36,000Equipment200,000Promotional expenses50,000Total1,200,0001,200,000Adjustments:

• Closing stock Rs 30,000
• Depreciation rate of building 5% and equipment 25%
• Salary to be paid Rs 3,000; Prepaid insurance expired Rs 18,000 Required: a. Profit and loss statement for the year ending $31^{st}$ December 2022 as per NFRS. b. Statement of financial position as on $31^{st}$ December 2022 as per NFRS.

The ABC Company's Statement of Profit and Loss account and Statement of Financial Position for two years have been given below: Statement of Profit and Loss for the year 2022 ParticularsAmount (Rs).Revenue from operation900,000Less: Cost of sales(500,000)Gross margin400,000Add Other income50,000Total450,000Less: Distribution expenses(105,000)Less: Administrative expenses(235,000)Operating Profit110,000Less: Finance cost10,000Net profit100,000Statement of Financial Position of a company for 2021 and 2022 Assets20212022Non-Current Assets:Property, plant and equipment400,000500,000Intangible assets40,00030,000Investments (long term)60,00090,000Total Non-Current Assets500,000620,000Current Assets:Inventories/Stock40,00050,000Cash and cash equivalents40,00030,000Account receivables50,00060,000Trade and Other receivables40,00055,000Total Current Assets170,000195,000Fictitious AssetsTotal Assets (Total Non-current and Current Assets)670,000815,000Equity:Share capital @Rs.100 each400,000500,000Reserve/Net Profit90,000190,000Non-controlling interestsTotal Equity490,000690,000LiabilitiesNon-Current Liabilities:10% Loans and borrowings150,000100,000Total Non-Current Liabilities150,000100,000Current Liabilities:Trade and other payable20,00025,000Income tax liabilitiesProvisions10,000Total Current-Liabilities30,00025,000Total Liabilities (Total Non-current and Current)180,000125,000Total Equity and Total Liabilities670,000815,000Required for 2022: a. Current ratio (2:1) b. Acid test ratio (1:1) c. Debt to total capital ratio (less than 40%) d. Stock turnover ratio (at least 8 times) e. Total assets turnover ratio (more than 1 time) f. Net profit margin (at least 12%) g. Return on equity (at least 7%) h. Return on assets (at least 5%) i. Average sales period (45 days or less than 45 days) j. Account receivable turnover ratio (at least 8 times) k. Comment on the results