Solved Paper Junior Auditor 2018 – HPSSC Hamirpur (Part-3)

81. When shares are forfeited the share capital account is debited by

1. Paid up amount
2. Called up amount
3. Calls in arrear
4. Nominal value of such share

82. Adjustment of interest on capital, interest on drawings salary etc. to partner is done in

1. Trading account
2. P & L account
3. P & L Appropriation account
4. Balance Sheet

83. Balance of forfeiture share is

1. Revenue reserve
2. Capital reserve
3. General reserve
4. Secret reserve

84. If the share of 10 Rs. On which 6 Rs. Have been paid is forfeited it can be re-issued at a minimum price of

1. 4
2. 5
3. 6
4. 7

85. The statutory report is necessary in case of

1. FEMA companies
2. Public Limited Companies
3. Foreign Companies
4. Private Limited Companies

86. Non-Convertible Debenture refers to

1. Owner’s capital
2. Loan capital
3. Short-term capital
4. All of above

87. As per As-14 Purchase, Consideration is what is payable to

1. Shareholder
2. Shareholder and debenture holder
3. Creditors
4. Debenture holders and creditors

88. Deficiency or surplus Account is prepared under

1. D
2. C
3. E
4. H

89. Goodwill arising on Amalgamation is to be

1. Retained in the books of Transferor Company.
2. Amortized to income on a systematic basis.
3. Adjusted against reserves and Profit and Loss a\c
4. Either a or b.

90. The intrinsic value of share means

1. Fixed Assets\No. of share
2. Net Future Earning
3. Net Assets\No. of share
4. None of the above.

91. When a company is wound up out of undeclared creditors sum have to be paid under law, they are called?

1. Legal creditors
2. Secured creditors
3. Preferential creditors
4. None of the above

92. A contributory is a

1. Creditor
2. Shareholder
3. Debenture holder
4. Preference shareholder

93. Liquid assets include

1. Only cash
2. Cash and bad debts
3. Cash and debtors less bad debts
4. Cash, debtors, Marketable securities less Bad Debts.

94. Fund means

1. Current asset
2. Current Liability
3. Working Capital
4. None of the above.

95. Du-point chart start with

1. Profit
2. R.O.E.’
3. Loss
4. O.I

96. Shareholder fund\total assets*100 gives …… ratio.

1. Liquidity
2. Profitability
3. Solvency
4. Operating

97. Following are the operating expenses

1. Salary to staff, advertisement, insurance, interest on loan.
2. Interest on debentures, purchases, salary to staff.
3. Salaries to staff, insurance, Director fee.
4. All of the above.

98. Cash from operation consist of

1. Operational net profit
2. Decrease in current asset
3. Increase in current liability
4. All of the above.

Directions: (Question No. 99 to 103)  Choose the most appropriate answer out of the four given options A,B,C,D on the basis of following information:

Profit after tax =Rs 2,70000

Preference dividend paid= Rs. 27000

Market price per share = 40

Equity dividend per share= Rs. 2

99. Calculate dividend yield on equity share

1. 5%
2. 15%
3. 10%
4. 20%

100. Calculate cover for preference share

1. 8 times
2. 9 times
3. 7 times
4. 10 times

101. Calculate cover for equity dividend

1. 2.52 times
2. 1.52 times
3. 3.52 times
4. 8.52 times

102. Calculate earning per share

1. 4.04
2. 6.04
3. 3.04
4. 7.04

103. Calculate price earning ratio

1. 14.1 : 1
2. 10.1: 1
3. 13.1 : 1
4. 9.1 : 1

104. Which of the following ratio have a negative relation with profitability?

1. Operating ratio
2. Gross profit ratio
3. Net profit ratio
4. None of above

105. At break even point the fixed cost is equal to

1. Contribution
2. Variable cost
3. Profit
4. Sale

106. If the profit is Rs. 15 and margin of safety is 20% the contribution will be

1. 3
2. 12
3. 75
4. 30

107. Low angel of incidence shows that the content of variable cost in sale price is

1. Low
2. High
3. Moderate
4. Any of the above

108. P/V ratio + variable cost ratio is equal to

1. -1
2. 2
3. 3
4. 1

109. Marginal costing helps in price fixation move in period of

1. Boom
2. Inflation
3. Depression
4. All of the above

110. In case of make of buy decision the following cost is considered

1. Fixed cost
2. Variable cost
3. Total cost
4. None of the above

111. Ideal time variable is equal to

1. Idle time * standard rate
2. Idle time * actual rate
3. Idle time/ standard rate
4. None of the above

112. Margin of safety is 28% and contribution sales ratio is 60% the profit will be

1. 30%
2. 33%
3. 12%
4. Cannot be computed

113. Fixed cost Rs. 80.000, variable cost Rs 6 per unit, selling price Rs 10 per unit. What will happen to B.E.P if fixed costs go up by 10%?

1. No change in B.E.P.
2. E.P will go down by 10%
3. E.P will go up by 10%
4. None of the above

114. Margin of safety can be improved by

1. Lowering fixed costs
2. Increasing selling price
3. Lowering variable costs
4. All of the above

115. Salary for foreman should be classified as

1. Fixed overhead
2. Variable overhead
3. Semi-variable overhead
4. Direct labour

116. Garner V/s Murrary rule is applicable in case of

1. Admission of a partner
2. Death of a partner
3. Dissolution of firm
4. Insolvency of partners

117. Absorption means

1. Charging of overheads to cost centres
2. Charging of overheads to cost units
3. Both (a) and (b)
4. Apportionment

118. A company wishes to pay dividend on shares. State which of the following may be used for the purpose.

1. Premium on shares
2. Profit on sale of land
3. Profit on re-issue of share
4. General reserve

119. Out of pocket cost involves payment to

1. Outsiders
2. Employees
3. Mere book entry
4. All of the above

120. The term generally employed with reference to wasting assest

1. Depreciation
2. Amortization
3. Goodwill
4. Depletion

121. Standard costing works on the principle of

1. Cost
2. Span of Management
3. Exception
4. All of the above.

122. Zero base budgeting was introduced in USA by

1. Jimmy Carter
2. Ronald Regon
3. Richard Nixol
4. Ebrahim Lincoln

123. Outstanding expenses are an example of

1. Real Account
2. Personal Account
3. Nominal account
4. None of the above.

124. Which of the following is not a responsibility centre?

1. Cost center
2. Profit centre
3. Investment centre
4. Liability centre

125. Turnover ratios give an idea about

1. Sales
2. Utilization of Assets
3. Utilization of stock
4. Payment of Liability

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