M.O.P.

VAISHNAV COLLEGE FOR WOMEN (AUTONOMOUS)

FOR B.COM (Honours) -MAY 2013

CHENNAI 600034

ENTRANCE EXAMINATION FOR CANDIDATES APPLYING

NAME: BOARD: STATE / CBSE/ OTHERS SCHOOL: CUT OFF : ( /800) OR (/400) MOBILE NUMBER: Max. Marks: 75

For use by the College Marks secured by the candidate in the entrance exam

Duration: 1 Hours Answer all questions (1x75 = 75 Marks)

Put a tick mark ( ) across the correct answer. One question cannot have more than one correct answer. 1) Balance sheet helps in _________ a) Finding out the profit/loss of the business. b) Ascertaining the financial position of the business. c) Finding out the arithmetical accuracy of accounts. 2) Returns inwards are deducted from a) Purchases b) Sales c) Returns outward 3) Accrued income but not yet received is a) an asset b) a liability c) an expense

4) Debit balance of suspense account shown on a) Liabilities side of balance sheet b) Assets side of balance sheet c) Credit side of profit and loss account 5) The last step in the accounting cycle is the preparation of a) Trading account b) Final accounts c) Trial balance 6) To motivate the debtors to make prompt payments __________ are given. a) Incentives b) Free samples c) Cash discounts 7) Openingstock=Rs.15000,Sales=Rs.48000,carriageinwards=Rs.3000,sales returns=Rs.3000,gross profit=Rs.18000,purchases=Rs.30000,purchases returns=Rs.2700. Calculate closing stock and cost of goods sold a) Rs 18300 and Rs 27000 b) Rs 30000 and Rs 18300 c) Rs 18300 and Rs 30000 8) On 31st March,2009 a firms debtors amounted to Rs.63000 and its provision for bad debts amounted to Rs.3200.It was decided to write off as irrecoverable debts of Rs.2600 and to carry forward a provision of 5% of the debtors.What should the provision for doubtful debts be at the end of the year and find the amount which will be taken to the P&L A/C. a) Provision required=Rs.3020,Transfer from P&L a/c=Rs.2420 b) Provision required=Rs 2420, Transfer from P&L a/C=Rs 3020 c) Provision required=Rs 3200, Transfer from P&L a/C=Rs 2240 9) Incomplete records are generally used by ___________ a) Small traders b) Companies c) Government

10) In single entry system profit is calculated as follows a) Opening Capital + Drawing + additional Capital- closing capital b) Capital at the end Drawing additional capital- Opening capital c) Capital at the end + Drawing additional capital.-Opening capital 11) From the following information , calculate the total purchases. Cash purchases-Rs. 17,000 Creditors as on 1st January , 2007-Rs.8,000 Cash paid to creditors Rs.31,000 Purchase returns-Rs.1,000 Creditors as on 31st December ,2007-Rs.13,400 a) Rs 37400 b) Rs 54400 c) Rs 24600 12) The loss on sale of an asset is debited to a) Reserves b) Depreciation fund c) Profit and loss account 13) The diminishing value method means a method by which a) The rate of depreciation falls year by year. b) The amount on which depreciation is calculated falls year by year. c) The rate as well as the amount to which it is applied falls year by year. 14) The journal entry to record a profit on the sale of fixed assets is: If asset disposal account is maintained: DEBIT CREDIT a) asset disposal account Profit and loss account b) Fixed asset account Profit and loss account c) Profit and loss account Asset disposal account 15) Which of the term is used to write off in reference to tangible fixed assets. a) Depreciation b) Depletion c) Amortization

16) Profit prior to incorporation is an example of: a) Capital reserve b) Revenue reserve c) Secret reserve 17) Depreciation fund method is also known as: a) Sinking fund method b) Annuity method c) Sum of years digits method 18) On 1st April,2008, Grand Ltd, purchased a machinery for Rs.3,00,000 and incurred Rs.21000 towards freight and insurance, Rs.3000 towards carriage inwards and Rs.6000 towards installation charges. It has estimated that the machinery will have a scrap value of Rs.30000 at the end of the useful life which is four years. What will be the annual depreciation and the value of machinery after four years according to the straight line method? a) Rs 82500 b) Rs 75000 c) Rs 7500 19) Calculate loss on sale of machinery under diminishing value method method from the following information: Original cost of machinery on 1-1-90 : Rs.80,000 Rate of depreciation : 5% Date of sale of machinery :1-7-92 Sale value of machinery : Rs.50,000 a) Rs 20000 b) Rs 20395 c) Rs 22200 20) Operating ratio is equal to a) 100-operating profit ratio b) 100+ operating profit ratio

c) operating profit ratio 21) Cost of goods sold is Rs2,00,000.The opening stock in the beginning of the year is Rs 55,000 & closing stock at the end of the year is Rs 45,000.Then the stock turnover ratio is a) 5 times b) 4 times c) 6 times 22) The earning capacity of a trading concern is reflected in its a) Volume of sales b) Advertisement c) Profitability 23) Share holder funds includes a) Equity share capital, preference share capital, reserves & surplus b) Loans from banks & financial institutions c) Equity share capital, preference share capital, reserves & surplus & loans from banks & financial institution 24) Calculate the amount of gross profit and sales from the following information: Average stock= Rs 80,000 Stock turnover ratio= 6 times Selling price= 25% above cost a) Rs1,20,000 and Rs 6,00,000 b) Rs 96, 000 and Rs 5,76, 000 c) Rs 4800 and rs 84,800 25) The ratio of current assets ( Rs 3,00,000) to current liabilities (Rs 2,00,000) is 1.5:1 the accountant of the firm is interested in maintaining a current ratio of 2:1, by paying of a part of current liabilities. Compute the amount of current liabilities that should be paid so that the current ratio at the level of 2:1 may be maintained. a) Rs 2,00,000 b) Rs 1,00,000 c) Rs1,50,000

26) Cash budget deals with a) Estimated cash receipts b) Estimated cash payments c) Estimated cash receipts & Estimated cash payments 27) A partner acts as a ..for the firm a) Agent b) third party c) employee 28) Mr. X is a partner of the firm. He withdraws Rs.200 at the end of each month. If the rate of interest on the drawings is 5%p.a,the interest amount is a) Rs.65 b) Rs.55 c) Rs.60 29) Indian Partnership Act was enacted in the year a) 1956 b) 1932 c) 1986 30) In admission, profit from revaluation of assets and liabilities will be transferred to the capital accounts of the old partners in the a) Old profit sharing ratio b) Sacrifice ratio c) New profit sharing ratio 31) A and B are the partners in a small firm, their profit or loss sharing ratio is 6:4. A new partner C admitted in the firm that will share profit or loss at the ratio of 1/4. Which of the following is the new profit or loss sharing ratio among the partners A, B and C a) 6:4:1 b) 18:12:10 c) 10:12:18 32) .When the value of an asset is increased then, it is entered on the credit side of the

a) Revaluation account b) Profit and loss account c) Trading account 33) A, B and C are sharing profits in the ratio of 2/5: 2/5: 1/5. C retired from business and his share was purchased equally by A and B. Then new profit sharing ratio shall be _______ a) A- 1/2 & B- 1/2 b) A- 3/5 & B- 2/5 c) A- 2/5 & B- 3/5 34) If the amount due to the outgoing partner is transferred to loan account then he is entitled to interest at _________ until it is paid out. a) 9% b) 5% c) 6% 35) As per the Companies Act, a company cannot proceed to allot shares unless _____ is received. a) Minimum subscription b) Allotment money. c) Application money 36) S Ltd. has allotted 5,000 shares to the applicants of 7,500 shares on pro rata basis. The amount on application is Rs.3 per share. M applied for 600 shares. The number of shares allotted to M will be _____ and the amount carried forward for adjustment will be _____. a) 200; Rs 600 b) 400; Rs.300 c) 400; Rs.600 37) A Ltd acquired assets worth Rs 15,00,000 form H Ltd by issue of shares of Rs 100 at a premium of 25%. The number of shares issued to settle the purchase consideration will be: a) 12000 shares b) 15000 shares c) 11250 shares 38) Management of a joint stock company is entrusted to ___________ a) the registrar of companies

b) the board of directors c) share holders 39) The share capital of the government company must not be less than ___________ a) 75% b) 60% c) 51% 40) Membership by birth is main feature in a __________ a) Co-operative society b) Joint Hindu Family business c) Partnership 41) The maximum members for a banking business in a partnership firm is __________ a) 20 b) 10 c) 50 42) Unilever limited is a _______ Company? a) American company b) Dutch company c) British company 43) The liability of a sole trader is _____________ a) Limited only to his investments in the business b) Limited to a total property of the business c) Unlimited 44) According to the partnership act, a partnership firm has _________ a) Separate legal entity b) No separate legal entity c) Limited liability

45) In a _________ a partnership is formed without a specific time period , it continues till the partners desire to do the business a) Partnership at will b) General partnership c) Particular partnership 46) The liability of shareholder of a private limited company is limited to _________ a) The paid up value of the shares b) Amount remaining unpaid on the shares c) Amount called up 47) The quorum in a meeting in a private companies is _________ a) 2 b) 3 c) 7 48) The overall maximum managerial remuneration in a public company shall not exceed_______a) 11% of net profits b) 11% of paid up capital and free reserves c) 5% of net profits

49) If a person holds the office of directors in more than 15 companies excluding private companies, it is considered as __________ liability.
a) Civil b) Criminal c) Joint

50) Stock exchange allows trading in ___________________ a) All types of shares of any company b) Bonds issue by the government c) Listed securities

51) An optimistic speculator __________________

a) Bull b) Bear c) Stag

52) Primary market is concerned with the _________________

a) Resale of securities traded in the primary market b) Issue of new shares c) Issue of shares to underwriters

53) In sampling investigation, to arrive at valid conclusions, we may study? a) Only a very small unit of a population b) All the units of the population c) Representative units of the population 54) Usually------- is the best measure of Central tendency a) Median b) Mode c) Mean 55) 5 students secure less than 3 marks 12 students secure less than 6 marks 25 students secure less than 9 marks 33 students secure less than 12 marks In the above problem, the number of students secure between 6 to 12 marks will be? a) 12

b) 21 c) 25 56) Weight of a person is a) An attribute b) Continuous variable c) Discrete variable 57) In a place the average rainfall was 4 centimeter during Monday to Saturday. Due to heavy rainfall on Sunday the average of the week was increased to 6 cm. The rainfall on Sunday will be? a) 17 cm b) 18 cm c) 19cm 58) Five sets of data relating to x and y are to be fit in a straight line. It is found that x=0 and y=15. Then the y intercept of the line of best fit is: a) 1 b) 2 c) 3

59) Laspeyres index formula uses the weights of the a) base year quantities b) Current year prices c) Average of the weights of number of years 60) A ball is drawn at random from a box containing 10 red, 30 white, 20 blue and 15 orange balls. The probability of a ball drawn is red or orange is a) 1/3 b) 3/5 c) 11/15 61) The length of the rectum of 3x2 + 8y=0, is a) 8/3 b) 2/3

c) 3/8 62) The logarithm of any number to the same base is a) Unity b) Zero c) Infinite 63) The marginal cost function MC=2-4x, then the cost function is a) 2x - 2x2 + k b) 2 - 4x2 c) 2/x 4 64) The Z value that is used to establish a 95% confidence interval for the estimation of a population parameter is a) 1.28 b) 1.65 c) 1.96 65) If X is a Poisson variate with P(X=1) = P (X=2), the mean of the Poisson variate is equal to a) 1 b) 2 c) -2

66) Find the expected value of the number of heads appearing when two fair coins are tossed a) 1 b) c) 2 67) What is the sequence involved in completing the Cost accountancy course? a) Intermediate (Group I and Group II), Final (Group I and Group II), Foundation b) Final (Group I and Group II), Intermediate (Group I and Group II), Foundation c) Foundation, Intermediate (Group I and Group II) , Final (Group I and Group II)

68) What is the primary job of a cost accountant? a) To check the accuracy of accounts and to ensure that the accounts represents a true and fair view of the conditions prevailing in the business b) To prepare budgets, setting of standards, analysis of variances and ultimately providing information for cost reduction, cost control and cost-volume relationship. c) To perform services in relation to the promotion, formation, incorporation, amalgamation, reconstruction, reorganisation or winding up of companies 69) Out of the following which is the best suitable job sector for a Cost accountant a) Financial Services Sector b) Manufacturing Sector c) Marketing Sector 70) The fundamental reason people must choose which goods to buy and consume is because of a) scarcity b) specialization c) people engaging in exchange

71) Which of the following is not a scarce resource? a) Fertile land in Tamil Nadu b) Sunshine for solar power in the deserts of Arizona c) Factories used to produce personal computers 72) Microeconomics studies such topics as a) the factors that determine inflation b) the forces that influence the price of shoes c) the determinants of total output 73) Equilibrium is a condition when: a) Demand curve cuts the price axis b) Demand curve cuts the output axis c) Demand curve cuts the supply curve

74) The cost which depends on the level of output in the short run is a) Total cost b) Fixed cost c) Variable cost 75) Macro economics deals with a) Firm specific problems b) Economy specific problems c) Short run problems ALL THE BEST