Accountancy-I Subjective

FEDERAL PUBLIC SERVICE COMMISSION
COMPETITIVE EXAMINATION-2019 Roll Number

FOR RECRUITMENT TO POSTS IN BS-17
UNDER THE FEDERAL GOVERNMENT
ACCOUNTANCY AND AUDITING, PAPER-I
TIME ALLOWED: THREE HOURS PART-I (MCQS) MAXIMUM MARKS = 20
PART-I(MCQS): MAXIMUM 30 MINUTES PART-II MAXIMUM MARKS = 80
NOTE: (i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II by selecting TWO questions from EACH
SECTION. ALL questions carry EQUAL marks.
(iii) All the parts (if any) of each Question must be attempted at one place instead of at different
places.
(iv) Write Q. No. in the Answer Book in accordance with Q. No. in the Q.Paper.
(v) No Page/Space be left blank between the answers. All the blank pages of Answer Book must
be crossed.
(vi) Extra attempt of any question or any part of the question will not be considered.
(vii) Use of Calculator is allowed.
PART – II
SECTION – I
Q. No. 2. Some amounts are omitted in each of the following financial statements. (20)
XY. Co.
Total assets Rs. 37,500
Total liabilities ?
Common stock 2,500
Retained earnings 13,500
Revenue 24,000
Expenses ?
Retained earnings, Jan. 1 ?
Net income 7,500
Dividends 6,000
Retained earnings, Dec. 31 13,500
Instruction: Determine the missing amounts.
Q. No. 3. (a) Burno Co. purchased equipment on Jan. 1, 2005 at a total invoice cost of (8)
Rs.280,000, additional costs of Rs.5,000 for freight and Rs.25,000 for
installation were incurred. The equipment has an estimated salvage value of
Rs.10,000 and an estimated useful life of five years. What is the amount of
accumulated depreciation at Dec. 31,2006 if the straight-line method of
depreciation is used?
(b) A plant asset cost Rs.27,000 when it was purchased on Jan. 1, 2008. It was (6)
depreciated by the straight-line method based on a 9-year life with no salvage
value. On June 30, 2008, the asset was discarded with no cash proceeds. What
gain or loss should be recognized on the retirement? Pass the entry.
(c) On June 30, 2010 B. Co. sells office furniture for Rs.60,000 cash. The office (6) (20)
furniture originally cost Rs.150,000 when purchased on Jan 1, 2005.
Depreciation is recorded by the straight-line method over 10 years with a
Salvage value of Rs.15,000.
Q. No. 4. The balance sheet of AB Ltd. is as under: (20)
Liabilities Assets
Equity share capital Plant & equipment 640,000
(Rs. 100 each) 1,000,000 Land & building 80,000
Retained earning 368,000 Cash 160,000
Sundry creditors 104,000 Sundry debtors 360,000
Bills payable 200,000 Allowance for B/D (40,000) 320,000
Other current liabilities 20,000 Inventory 480,000
Prepaid expenses 12,000
1,692,000 1,692,000
Required:
Compute the following: 1. Working capital 2. Current ratio
3. Quick or liquid ratio 4. Super quick ratio
Page 1 of 2
ACCOUNTANCY AND AUDITING, PAPER-I
SECTION – II
Q. No. 5. The AB & Co produces a chemical which requires processing in three departments. (20)
The following is the data to the operation of department III for September, 2008.
Units in process at start 50% completed as to Mat. & C.C 5,000
Unit received from Department II 40,000
Unit transferred to finished store room 35,000
Normal units lost 1,000
Balance of units is in process:
100% completed as to material & 50% as to C.C.
Cost of beginning inventory P.D.Rs.10, 000 .Mat.Rs.10, 000. CC. Rs.5000
Cost transferred from Department II
Rs.30, 000
Cost added:
Material Rs. 8,800
Conversion cost Rs.16200
Required: Prepare cost of production report of Department III by Weighted Average.
Q. No. 6. (a) K Co. was totally destroyed by fire during June. However, certain fragments (10)
of its cost records with the following data were recovered: idle capacity
variance, Rs.1,266 favorable; spending variance, Rs.879 unfavorable; and
applied factory overhead Rs.16, 234.
Required:
Determine (1) The budget allowance, based on capacity utilized, and (2) the
actual factory overhead.
(b) A Co. uses 100% Bonus plan with a wage rate of Rs.20 per hour and the
standard production is 40 units per hour. Bonus will be given for the time
saved. Following is the data of Mr. X: (10) (20)
Units produced
Monday 360
Tuesday 400
Wednesday 350
Required: Determine Mr. X’s total earning, the time saved, daily earnings and
the labor cost per unit.
Q. No. 7. ABC Company’s most recent contribution format income statement is shown below: (20)
Total Per Unit
Sales (20,000 units) $300,000 $15
Less variable expenses 180,000 9
Contribution margin 120,000 6
Less fixed expenses 70,000
Net operating income $50,000
Required:
Prepare a new contribution format income statement under each of the following
conditions.
(a) Sales volume increases by 15%.
(b) Selling price decreases by $1.5 per unit, and sales volume increases by 25%.
(c) Selling price increases by $1.5 per unit, fixed expenses increases by $20,000 and
the sales volume decreases by 5%.
(d) Selling price increases by 12%, variable expense increases by 60% per unit and
sales volume decreases by 10 %.
Q. No.8. The following information is gathered from the labor records of Binamul & Co. Payroll
allocation for direct labor is Rs. 1, 31,600
Time card analysis shows that 9,400 hours were worked on productions lines.
Production reports for the period showed that 4,500 units have been completed, each
having standard labor time of 2 hours and a standard labor rate of Rs. 15 per hour.
Calculate the labor variances.
**********
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FEDERAL PUBLIC SERVICE COMMISSION

COMPETITIVE EXAMINATION-2019 Roll Number

Required: Prepare cost of production report of Department III by Weighted Average.

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