A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 42 - 45 of 50

Get top class preparation for Bank-PO right from your home: get questions, notes, tests, video lectures and more- for all subjects of Bank-PO.

Question 42

Question

MCQ▾

Goodwill of a firm is valued at three years purchase of average profit of the last five yea $ The profits are as under:-

1997- $ 50000 (Profit)

1998- $ 20000 (Loss)

1999- $ 10000 (Profit)

2000- $ 60000 (Profit)

2001- $ 80000 (Profit)

What will be the value of goodwill?

Choices

Choice (4)

a.

1,08, 000

b.

80,000

c.

1,80, 000

d.

1,00, 000

Answer

a.

Explanation

Question 43

Question

MCQ▾

X ltd forfeited 200 shares of Simon of $ 10 each. $ 8 called up, on which he paid application and allotment money of $ 3 per share. Out of these, 100 shares were reissued as fully paid up for $ 8 per share. How much amount is transferred to capital reserve account?

Choices

Choice (4)

a.

200

b.

100

c.

400

d.

300

Answer

b.

Explanation

Amount to be transferred to Capital Reserve account is

Question 44

Question

MCQ▾

X and Y entered a partnership with 50,000 and ₹ 60,000, after 4 months X invested ₹ 25,000 more while Y withdraw ₹ 20,000. Find the share of X in the annual profit of ₹ 289,000.

Choices

Choice (4)

a.

17000

b.

15000

c.

270000

d.

170000

Answer

a.

Explanation

Question 45

Question

MCQ▾

What will be cash flow from investing activities from the following information?

What Will be Cash Flow from Investing Activities from the Following Information?
PurchasesAmount $
Purchase of Machinery

Purchase of Goodwill

Purchase of investment

Sale of Machine

Sale of investment

Sale of patents

Interest & dividend received

Rent received

5,00, 000

2,00, 000

3,00, 000

70,000

60,000

80,000

20,000

40,000

Choices

Choice (4)

a.

7,30, 000

b.

-2,70, 000

c.

2,70, 000

d.

-7,30, 000

Answer

d.

Explanation

What Will be Cash Flow from Investing Activities from the Following Information?
Cash Flow from Investing activities$
Add:

-

-

-

-

-

-

Less:

Sale of Machinery 70,000

Sale of Investment 60,000

Sale of Patent 80,000

Interest and Dividend received 20,000

Rent received 40,000

Purchase of machinery 5,00, 000

Purchase of investments 3,00, 000

Purchase of goodwill 2,00, 000

2,70, 000

-

-

-

-

-

-

10,00, 000

Cash flow from investing activities-7,30, 000

Developed by: