{"id":9996,"date":"2024-03-12T15:12:55","date_gmt":"2024-03-12T09:42:55","guid":{"rendered":"https:\/\/gstguntur.com\/?p=9996"},"modified":"2024-03-16T18:00:17","modified_gmt":"2024-03-16T12:30:17","slug":"ca-foundation-accounts-question-paper","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/ca-foundation-accounts-question-paper\/","title":{"rendered":"CA Foundation Accounts Question Paper"},"content":{"rendered":"

These CA Foundation Accounts Study Material<\/a> CA Foundation Accounts Question Paper is designed strictly as per the latest syllabus and exam pattern.<\/p>\n

CA Foundation Accounts Question Paper Pattern<\/h2>\n

Question No. 1 is compulsory.<\/p>\n

Candidates are also required to answer any four questions from the remaining five questions.
\nWorking notes should form part of the respective answers.<\/p>\n

Question 1(a).
\n(a) State with reasons, whether the following statements are True or False: [6 statements x 2 = 12 marks]
\n(i) Trade Discount is a reduction granted by a supplier from the list price of goods\/or services on business considerations for prompt payment.<\/p>\n

(ii) M\/s. XYZ & Co. runs a cafe. They renovated some of the old cabins. Because of this renovation some space was made free and number of cabins was increased from 15 to 18. The total expenditure incurred was \u20b9 30,000 and was treated as a revenue expenditure.<\/p>\n

(iii) Valuation of inventory at cost or net realizable value is based on principle of Conservatism.<\/p>\n

(iv) In case of bill of exchange, the drawer and the payee may not be the same person but in case of a promissory’ note, the maker and the payee may be the same person.<\/p>\n

(v) A Partnership firm cannot own any Assets.<\/p>\n

(vi) Since company has existence independent of its members, it continues to be in existence despite the death, insolvency or change of members.<\/p>\n

(b) Distinguish between Provision and Contingent Liability. (4 Marks)<\/p>\n

(c) X purchased a machinery on 1st January 2017 for \u20b9 4,80,000 and spent \u20b9 20,000 on its installation. On July 1,2017 another machinery costing \u20b9 2,00,000 was purchased. On 1st July, 2018 the machinery purchased on 1st January, 2017 having become scrapped and was sold for \u20b9 2,90,000 and on the same date fresh machinery was purchased for \u20b9 5,00,000. Depreciation is provided annually on 31st December at the rate of 10% p.a. on written down value. Prepare Machinery account for the years 2017 and 2018. (4 Marks)
\nAnswer:
\n(a) (i) False: Trade discount is a reduction granted by a supplier from the list price of goods or services on business considerations for increasing the sales of the business or as trade practice other than for prompt payment.<\/p>\n

(ii) False: This expenditure should be treated as Capital expenditure since it will increase profitability of the business.<\/p>\n

(iii) True: Because under the principle of lower of cost or net realizable value, any loss due to decrease in sales price of the inventory below its cost is recognized immediately as it is anticipated that the enterprise will make losses whenever it will sell.<\/p>\n

(iv) False: In case of a promissory note, maker is the person who is absolutely liable to pay the amount mentioned therein whereas the payee is the person who is entitled to receive the payment. Thus both can never be same.<\/p>\n

(v) True: Since a partnership firm does not have separate entity it cannot own any asset in its own name. The property of the firm is actually the joint property of all the partners.<\/p>\n

(vi) True: A company has a separate legal entity i.e. its existence is independent of its members. The company is consequently able to enjoy perpetual succession and continues in existence irrespective of death\/insolvency\/change of members, until it is wound up by law.<\/p>\n

(b) Contingent liability:
\n\u2192 A contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise. Possible obligation – An obligation is a possible obligation if, based on the evidence available, its existence at the balance sheet date is considered not probable or<\/p>\n

\u2192 A contingent liability is a present obligation that arises from past events but is not recognised because:<\/p>\n