MGT401 Financial Accounting II Current Mid Term Papers May 2011

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otal question were 27
22 msqz n 5 short qes.....

Q01: Differentiate between Benchmark Treatment and Allowed Alternative Treatment for the Borrowing cost (3 marks)

Q02: Write down the types of stocks for Trading and Manufacturing concerns (3marks)

Q03: Trade Debts considered as good_ unsecured 11000 Rs
Trade Debts considered doubtful _unsecured 41000 Rs
Provision for doubtful debts 41000 Rs

Then:
You are required to show the above information in Note to the account of Trade (3 marks)


Q04: Define Current Liabilities. What heads should be included in Current Liabilities? (5 marks)

Q05: Suppose a Company has

• Partially completed inventory item at the year end
• Expected selling price of the item when completed is 2600 Rs
• A further cost of Rs 500 is required to complete the item
• Expected selling cost of item is Rs 100
Required
a) what will be the carrying value of the inventory item if the cost incurred at date is Rs 1500
b) what will be the carrying value of the inventory item if the cost incurred at date is Rs 2500