Mgt101 Current Spring 2011 Final Term VU Paper [July 2011] Virtual University of Pakistan

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Mgt101 Current Spring 2011 Final Term VU Paper [July 2011] Virtual University of Pakistan

Total Question were 65 (55 MCQ's)

A corporation has retained earning of Rs. 100,000 and Rs. 150,000 for the year ended 2006 and 2007 respectively. The corporations had net profits after taxes of Rs. 80,000 in 2007. What will be the amount of dividend paid in the year 2007

Aslam started a new business by depositing cash Rs. 10,000 in the name of the business in a local bank. How can the concept of separate entity be applied here?

Mr. B sold a car for Rs. 200,000. He should debit Rs. 200,000 to:

Mr. A paid to his creditor Rs. 10,000 and availed cash discount of Rs. 250. Mr. A should debit his creditor by:

Which account is increased with a debit and decreased with a credit?
Cash

Current accounts of the partners should be opened when the capitals are:
Fixed

In cash flow statements, which of the following would appear as an inflow of cash?
The repayments of a bank loan

Which of the following account is the summary of all accounts of suppliers of goods?

Mr. A & B entered into a partnership with an equal investment and equal share in profit or loss. Markup on capital of Mr. A is Rs.2,000 and markup on drawings of Mr. B is Rs.3,000. The net income for the year is Rs.50,000. What will be the profit share of Mr. A?

Mr. A & B entered into a partnership invested Rs.50,000 and Rs.65,000 with an equal share in profit or loss. Markup on capital of Mr. A is Rs.2,000 and markup on drawings of Mr. B is Rs.3,000. The net income for the year is Rs.85,000. What will be the profit share of Mr. A?

The following balance and discrepancies were found on 31 March 2008:

Particulars
Rs.
Cash book balance (Dr) 
5,000
Un-presented cheques
1,000
Un-credited cheques
500

Prepayments would be treated as:

Deferred revenues will become revenue when they are:

Subjective
Q. Rectify the following errors by passing necessary journal entries
Ø Cash sales of Rs. 600 to Kareem were wrongly debited to Kareem
Goods of Rs. 200 drawn by the proprietor from the business for private use were wrongly credited to cash account

If:
· Accounts payable at beginning Rs. 250,000 
· Accounts payable at the end 190,000
· Credit purchases 200,000

Then:
You are required to calculate the cash payment as a result of purchases by preparing the Accounts Payable Accounts.

Q. What are the different types of inventories of manufacturing concern? Discuss briefly.

Q. X and Y were partners in a business sharing profits in the ratio of 3:1. Their capital were Rs.30,000 and Rs.10,000 respectively. They earned a net profit of Rs. 160,000. Mr. Y was entitled to a salary of Rs.200 p.m. Prepare Profit Distribution Account of X & Y Partnership.

Q. ABC company had current and total assets of Rs.450,000 and Rs.1,000,000, respectively. The company's current and total liabilities were Rs.267,000 and Rs.600,000, respectively. Calculate the amount of working capital and the current ratio using this information

Q. You are required to calculate the Gross profit, Operating income and Net income by prepare Income statement with the help of given date for the year ended 2008.

Raw material Stocks 31-12-2007

Rs. 31,000

Work in process 31-12-2007

25,000

Cost of goods sold

536,339

Additional data
· Other income for the year Rs. 5,000.
· Other expenses for the year Rs. 15,000.
· Selling expenses for the year Rs. 10,000
· Administration expenses for the year Rs. 20,000
Sales for the year Rs. 1,000,000.
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