CA Foundation Accounting MTP June 2024: Question Paper and Solutions

How to Prepare for CA Foundation Accounting

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43 indexed questions. Open a question to read its full statement and available answer.

1. State with reasons whether the following statements are True or False: (i) Legal fees to acquire property is Capital Expenditure. (ii) Abnormal…
2. Write short notes on the following: Fundamental Accounting Assumptions.
3. Give journal entries (with narrations) to rectify the following errors located in the books of a Trader after preparing the Trial Balance: (i) An…
4. M/s Kedar, Profit and loss account showed a net profit of 8,00,000, after considering the closing stock of 7,50,000 on 31st March, 2017.…
5. The following are the balances as at 31st March, 2017 extracted from the books of Mr. XYZ. ₹ ₹ Plant and Machinery 19,550 Bad debts recovered 450…
6. On 30th Sept.2018 my Cash Book (Bank Column of Account No.1) shows a Bank Overdraft of 49,350. Ongoing through the Bank Pass book for reconciling…
7. Mr. B accepted a bill for 10,000 drawn on him by Mr. A on 1st August, 2017 for 3 months. This was for the amount which B owed to A. On the same date…
8. A company issued 12% debentures of the face value of 10,00,000 at 10% discount on 1-1-2017. Debenture interest after deducting tax at source @10%…
9. A, B, C and D has been carrying on business in Partnership, sharing Profit and Losses in the ratio 3 :2 :1 :1. They decide to dissolve the…
10. Libra Limited recently made a public issue in respect of which the following information is available: (a) No. of partly convertible debentures…
11. M/s. JP Wires Co. purchased a second-hand machine on 1st January, 2017 for 3,20,000. Overhauling and erection charges amounted to 80,000. Another…
12. Aarav, Nirav and Purav are partners sharing profits and losses in the ratio of 3:2:1 Their Balance Sheet as on 31st March, 2020 was as follows:…
13. From the following information relating to Mukta Social Club, you are required to prepare: (a) An Income and Expenditure Account (including profit…
14. Sidharatha Trading Co. Ltd. has an Authorized Capital of 16,00,000 divided in to : 20,000 6% Preference Shares of 10 each 40,000 7% Preference…
15. State with reasons whether the following statements are True or False: i. Insurance claim received on account of plant and machinery completely…
16. Change in accounting policy may have a material effect on the items of financial statements.” Explain the statement with the help of an example.
17. A Plant & Machinery costing - 80,00,000 is depreciated on straight line basis assuming 10 year working life and zero residual value, for four years.…
18. M/s Manas, Profit and loss account showed a net profit of 32,00,000, after considering the closing stock of 30,00,000 on 31st March, 2024.…
19. On 30th September, 2023, the bank account of Akhil, according to the bank column of the Cash- Book, was overdrawn to the extent of 16,248. On the…
20. Following are the Manufacturing A/c, Creditors A/c and Raw Material A/c provided by M/s. Praveen related to financial year 2023-24. There are…
21. Ram Lakhan and Bharat are partners in a firm. On 1st April 2022 their fixed capital stood at 1,50,000,75,000 and - 75,000 respectively. As per the…
22. The profits and losses for the previous years are: 2020 Profit - 10,000, 2021 Loss - 17,000, 2022 Profit - 50,000, 2023 Profit - 75,000. The average…
23. The Balance Sheet of a Partnership Firm M/s Alpha and Associates consisted of two partners X and Y who were sharing Profits and Losses in the ratio…
24. Ram carried on business as retail merchant. He has not maintained regular account books. However, he always maintained - 10,000 in cash and…
25. M/s. VB wires were unable to agree the Trial Balance as on 31st March, 2024 and have raised a suspense account for the difference. Next year the…
26. From the following information supplied by Fazilka Club, prepare Receipts and Payments account and Income and Expenditure Account for the year ended…
27. Amar Limited issued 20,000 Equity shares of, 10 each at a premium of 10%, payable 2on application; 4on allotment (including premium); 2on first call…
28. Write short notes on any two of the following: (i) Bill of exchange and the various parties to it. (ii) Retirement of bills of exchange. OR Explain,…
29. State with reasons whether the following statements are True or False: i. Subsidy received from the government for working capital by a…
30. Differentiate between provision and contingent liability.
31. Give journal entries to rectify the following errors located in the books of a trader after preparing the trial balance: (i) An amount of 13,500…
32. A Firm purchased an old Machinery for 37,000 on 1 st January, 2020 and spent - 3,000 on its overhauling. On 1 st July 2021, another machine was…
33. Ram Setu Ltd. keeps no stock records but a physical inventory of stock is made at the end of each quarter and the valuation is taken at cost. The…
34. Dr. Gulleria started private practice on 1 st April, 2023 with - 2,00,000 of his own fund and - 3,00,000 borrowed at an interest of 12 p.a. on the…
35. P Q and R are partners sharing profits in the ratio of 3:2:1. Their Balance Sheet as at 31 st March, 2024 stood as: Liabilities ₹ Assets ₹ Capital…
36. The following is the Balance Sheet of A, B, C on 31 st December, 2023 when they decided to dissolve the partnership: Liabilities ₹ Assets ₹…
37. The following are the balances as at 31 st March, 2024 extracted from the books of Mr. Chauhan. Particulars ₹ Particulars ₹ Plant and Machinery…
38. Bharat owed - 50,000 to Katen. On 1 st October, 2023, Bharat accepted a bill drawn by Katen for the amount at 3 months. Katen got the bill…
39. Attempt any ONE out of the two sub parts i.e. either (i) or (ii). (i) Ms. Manisha is engaged in business of selling magazines. Several of her…
40. Following is the extract of the Balance Sheet of Puri Ltd. as at 31 st March, 2024 Authorised capital: ₹ 15,000 12% Preference shares of 10 each…
41. Devis Ltd. invited applications for issuing 3,00,000 equity shares of 20 each. The amounts were payable as follows: On application -6 per share On…
42. On 1 st April, 2023 Universe Ltd. issued 12% debentures of the face value of 40,00,000 at 10% discount. Debenture interest after deducting tax at…
43. Prepare Bank Reconciliation Statement and Adjusted Cash Book from the following particulars as on 31 st December, 2023: Particulars ₹ Bank Balance…