CSS Accounting and Auditing Past Paper 2019

Instructions specific to this paper

• Attempt ONLY FOUR questions from PART-II by selecting TWO questions from EACH
• Use of Calculator is allowed.
• Attempt ONLY FOUR questions from PART-II by selecting at least ONE question from

Questions

1. Q. 220 marks

   Some amounts are omitted in each of the following financial statements. XY. Co. Total assets Rs. 37,500 Total liabilities ? Common stock 2,500 Retained earnings 13,500 Revenue 24,000 Expenses ? Retained earnings, Jan. 1 ? Net income 7,500 Dividends 6,000 Retained earnings, Dec. 31 13,500 Instruction: Determine the missing amounts.

2. Q. 38 marks

   (a) Burno Co. purchased equipment on Jan. 1, 2005 at a total invoice cost of Rs.280,000, additional costs of Rs.5,000 for freight and Rs.25,000 for installation were incurred. The equipment has an estimated salvage value of Rs.10,000 and an estimated useful life of five years. What is the amount of accumulated depreciation at Dec. 31,2006 if the straight-line method of depreciation is used? (b) A plant asset cost Rs.27,000 when it was purchased on Jan. 1, 2008. It was (6) depreciated by the straight-line method based on a 9-year life with no salvage value. On June 30, 2008, the asset was discarded with no cash proceeds. What gain or loss should be recognized on the retirement? Pass the entry. (c) On June 30, 2010 B. Co. sells office furniture for Rs.60,000 cash. The office (6) (20) furniture originally cost Rs.150,000 when purchased on Jan 1, 2005. Depreciation is recorded by the straight-line method over 10 years with a Salvage value of Rs.15,000.

3. Q. 420 marks

   The balance sheet of AB Ltd. is as under: Liabilities Assets Equity share capital Plant & equipment 640,000 (Rs. 100 each) 1,000,000 Land & building 80,000 Retained earning 368,000 Cash 160,000 Sundry creditors 104,000 Sundry debtors 360,000 Bills payable 200,000 Allowance for B/D (40,000) 320,000 Other current liabilities 20,000 Inventory 480,000 Prepaid expenses 12,000 1,692,000 1,692,000 Required: Compute the following: 1. Working capital 2. Current ratio 3. Quick or liquid ratio 4. Super quick ratio

4. Q. 520 marks

   The AB & Co produces a chemical which requires processing in three departments. The following is the data to the operation of department III for September, 2008. Units in process at start 50% completed as to Mat. & C.C 5,000 Unit received from Department II 40,000 Unit transferred to finished store room 35,000 Normal units lost 1,000 Balance of units is in process: 100% completed as to material & 50% as to C.C. Cost of beginning inventory P.D.Rs.10, 000 .Mat.Rs.10, 000. CC. Rs.5000 Cost transferred from Department II Rs.30, 000 Cost added: Material Rs. 8,800 Conversion cost Rs.16200 Required: Prepare cost of production report of Department III by Weighted Average.

5. Q. 610 marks

   (a) K Co. was totally destroyed by fire during June. However, certain fragments of its cost records with the following data were recovered: idle capacity variance, Rs.1,266 favorable; spending variance, Rs.879 unfavorable; and applied factory overhead Rs.16, 234. Required: Determine (1) The budget allowance, based on capacity utilized, and (2) the actual factory overhead. (b) A Co. uses 100% Bonus plan with a wage rate of Rs.20 per hour and the standard production is 40 units per hour. Bonus will be given for the time saved. Following is the data of Mr. X: (10) (20) Units produced Monday 360 Tuesday 400 Wednesday 350 Required: Determine Mr. X’s total earning, the time saved, daily earnings and the labor cost per unit.

6. Q. 720 marks

   ABC Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (20,000 units) $300,000 $15 Less variable expenses 180,000 9 Contribution margin 120,000 6 Less fixed expenses 70,000 Net operating income $50,000 Required: Prepare a new contribution format income statement under each of the following conditions. (a) Sales volume increases by 15%. (b) Selling price decreases by $1.5 per unit, and sales volume increases by 25%. (c) Selling price increases by $1.5 per unit, fixed expenses increases by $20,000 and the sales volume decreases by 5%. (d) Selling price increases by 12%, variable expense increases by 60% per unit and sales volume decreases by 10 %.

7. Q. 8

   The following information is gathered from the labor records of Binamul & Co. Payroll allocation for direct labor is Rs. 1, 31,600 Time card analysis shows that 9,400 hours were worked on productions lines. Production reports for the period showed that 4,500 units have been completed, each having standard labor time of 2 hours and a standard labor rate of Rs. 15 per hour. Calculate the labor variances.

Standard FPSC instructions

Printed on this and every CSS paper.

• Part-II is to be attempted on the separate Answer Book.
• All the parts (if any) of each question must be attempted at one place instead of at different places.
• Write Q. No. in the Answer Book in accordance with Q. No. in the question paper.
• No page/space be left blank between the answers. All the blank pages of the Answer Book must be crossed.
• Extra attempt of any question or any part of the attempted question will not be considered.