MGT101 SOLVED PAPERS

A company declares a cash dividend to be paid to its stockholders next
month. The effect of the transaction is to:
► Decrease assets and liabilities.t
► Increase assets and stockholders' equity.
► Decrease assets and stockholders' equity.
► Increase liabilities and decrease stockholders' equity.

The net income calculated in the income statement for the accounting
period is reported on:
► Bank Statement
► Statement of retained earnings
► Statement of cash flows
► None of the given options

Which of the following is the most important document of the company?
► Memorandum of Association
► Articles of Association
► Prospectus
► Annual Report

Authorized share capital is also known as:
► Registered capital
► Issued capital
► Paid up capital
► Called up capital

Consider the following table:
Financial statement item Classification
A. Inventory Current asset
B. Tangible assets Non-current asset
C. Accrued expenses Current asset
D. Bonds payable Long-term
liabilities
Identify the row above, showing an INCORRECT financial-statement
classification?
► Row A
► Row B
► Row C
► Row D

Goods purchased from “Mr. A” for Rs. 2,000 passed through the sales book.
The rectification of error will result in:
► Increase of gross profit
► Decrease of gross profit
► Remains constant and no effect on net profit
► There is no relation between goods purchased and gross profit

Which of the following entry will be recorded when the Bad Debts are
recovered?
► Cash account (Dr.) & Bad Debts recovered account (Cr.)
► Accounts Receivable account (Dr.) & Bad Debts recovered account
(Cr.)
► Bad debts recovered account (Dr.) and Profit & Loss account (Cr.)
► Provision for doubtful debts account (Dr.) & Cash account (Cr.)

Which of the following would be deducted from Sundry Debtors in Balance
Sheet?
► Bad debts (Trial balance item)
► Old provision for doubtful debts
► New provision for doubtful debts
► Both Bad debts (given in adjustment) and new provision for doubtful
debts

The amount received; in excess of the face value of the shares is transferred
to which of the following?
► Share premium account
► Share holder account
► Share capital account
► Right share

The maximum amount with which the company is registered is called:
► Authorized Share Capital 
► Issued Share Capital
► Paid up capital
► Called up capital
Question No: 31 ( Marks: 1 ) - Please choose one
Following information are extracted from books of Mr. XYZ
Particulars Rs.
Bad Debts (Given in trial balance) 500
Old provisions (Given in trial balance) 800
Sundry Debtors (Given in trial balance) 44,500
Provision for doubtful debts @ 5%
What will be the amount of new provision ?
► Rs. 2,225
► Rs. 2,525
► Rs. 1,925
► Rs. 3,025

Following information are extracted from books of Mr. XYZ
Particulars Rs.
Closing value of stock 40,000
Write off Bad debts (given in
adjustments)
2,400
Sundry Debtors (given in trial balance) 33,200
Provision is created on Debtors at 5%
Requirement: Identify the Total amount which will deduct from Sundry
debtors.
► Rs. 460
► Rs. 2,400
► Rs. 1,540
► Rs. 3,940

Depreciable value of an asset is equal to:
► Cost + scrap value
► Cost + market price
► Cost – scrap value
► None of the given options

Which of the following asset is NOT depreciated?
► Factory Buildings
► Office Equipment
► Plant & Machinery
► Land

Which one of the following is NOT true about revenue expenditure?
► These are the running expenses of the business
► They improve the financial position of the business
► They reduce the profit of the concern
► They do not appear in the balance sheet