CSS Accounting and Auditing Past Paper 2023

Instructions specific to this paper

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

Questions

1. Q. 220 marks

   (A) What are the Accounting Principles? Define any four accounting principles shortly. (5) (B) What are the Accounting Conventions? Define any four accounting conventions shortly. (5) (C) The below mentioned balances are extracted from the books of Emerging Technologies Pvt. Ltd. as on 31st August 2022. Head of Account Amount Sundry expenses 166,000 Opening Stock 400,000 Premises 3,775,000 Furniture 1,350,000 Machinery 2,600,000 Drawings 250,000 Purchases 6,455,000 Sales 12,262,000 Discount received 47,000 Discount allowed 54,000 Carriage outward 18,000 Returns inward 122,000 Return outwards 28,000 Closing Stock 372,500 Wages and salaries 1,750,000 Cash in hand 940,000 Rent, rates and taxes 137,000 Rent received in advance 53,000 Bills receivables 192,000 Trade creditors 2,076,000 Book debts 3,150,000 Bills payable 130,000 Bank loan 580,000 Capital 6,200,000 Carriage inward 17,000 Required: Prepare a Trial Balance as on that date in a proper format. (10)

2. Q. 320 marks

   Deluxe Software Private Limited closes its books on 31st December every year. You are provided with the following data: Shareholders Equity (Rs.’000’) 2021 2020 Opening 700 600 Profit after tax 220 200 920 800 Dividend (100) (100) Closing 820 700 Other data Number of Shares (in ‘000s) 60 60 Required: (5) (a) On the basis of above data, compute the following for the year 2020 and 2021 a. Earnings per share (EPS) b. Return on closing equity (ROE) c. Book value per share (BV) (5) (b) Compute dividend per share and rate of dividend for the year 2022. (c) For the year ending 31st December 2022 the management decided to aim for EPS Rs.4.00 (9% higher than for the year 2021) and return on closing equity of 25%. Compute the estimated book value as at 31st December 2022 assuming that management targets are achieved. Also compute estimated figures for Profit after Tax, Dividend and Equity. (10)

3. Q. 420 marks

   Define and explain the differences among several kinds of employee frauds that might occur at an audit client.

4. Q. 520 marks

   (A) Eagle Star is a manufacturing company. The Company uses Rowan Premium bonus scheme for its workers payroll. Workers are also entitled to dearness allowance of Rs. 2,400 per week of 48 hours. Mr. Afzal is one of the workers of that company. His basic wage rate is 1,200 per day of 8 hours. His time sheet for the week is as under: Job Name Time Allowed Time Taken Crafting 25 hours 20 hours Assembling 30 hours 20 hours Idle time (Waiting) ----- 8 hours Required: Calculate gross wage of Mr. Afzal for the week. (10) (B) An Automobile factory will use 500,000 tyres for its production in coming year. The incremental cost of placing an order is Rs. 8,000. The cost of storing a tyre for whole year is Rs. 2000.Lead time on an order is 5 days and the company wishes to keep reserve supply of two days usage. Usage per day will be constant in whole work year. Company work year consists of 250 days. Required: Calculate Economic Order Quantity and Reorder point. (10)

5. Q. 610 marks

   (A) A manufacturing company of Lahore submits the following information for the year ending 31st December 2022: Particulars Amount Particulars Amount Sales 4,500,000 Raw Material 1st January 150,000 Purchases 2,020,000 Finished Goods 1st January 700,000 Tools Expenses 45,000 Indirect Labour 50,000 Depreciation of Plant 45,000 Power, Heat & Light 30,000 st Work in process 1 January 300,000 Finished Goods 31st December 605,000 Purchase Retunes 20,000 Depreciation of machinery 60,000 Fire Insurance 8,000 Raw Material 31st December 290,000 Direct Labour 590,000 Work in Process 31st December 250,000 Misc. Manufacturing Costs 9,000 Indirect Material Consumed 50,000 Selling Expenses 5% of sales Administrative Expenses 2% of sales Required: Prepare an Income Statement for the year ended 31st December 2022 (B) Khizra manufacturing corporation has fixed cost for the year ended 31st December 2022 is Rs. 400,000. Variable cost per unit is Rs. 20. Each Unit sells at Rs. 100. Required: a) Break Even point (both in units and value) (2) b) If turnover for the next year is Rs. 800,000, calculate the estimated contribution and profit, assuming the cost and selling price remain the same (4) c) A profit target of Rs. 400,000 has been desired for the next year. (4) (10) (20) Calculate the turnover required to achieve the desired result.

6. Q. 820 marks

   A chemical factory manufactures three kinds of chemicals namely Eucalyptus oil, Hexachlorobenzen and Toxaphene. In the last week of December 2022, the records were: Labor No of Rate per hour Hours Worked by Grade Employees (Rs.) each employee I 12 40 40 II 36 32 42 III 8 28 40 IV 2 16 44 Output and standard times during the same week were as follows: Output Standard Minutes Components (In Units) for each unit Eucalyptus oil 888 30 Hexachlorobenzen 1800 54 Toxaphene 960 66 Normal working hours per week are 38. Overtime is paid at the premium of 50 % of the normal hour rate. Group Incentive Scheme: A group incentive scheme is in operation. The time saved is expressed as a percentage of hours worked and is shared between the group as a proportion of the hours worked by each grade. The incentive rate is 75% of the normal hour rate. Required: Prepare the payroll for the last week of December 2022 showing the basic pay, overtime and incentive amount as separate totals for each grade of labor.

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.