UPSC EPFO SOLVED PAPER 2017

Total Questions: 120

61. From the information given below calculate the sum insurable

Date of fire-01-03-2016
Turnover from 01-03-2015 to 29-02-2016-
` 88,00,000
Agreed GP ratio-20%
Special circumstances clause provided for the increase of turnover by 10%

Correct Answer: (a) ₹ 19, 36,000
Solution:

62. Income and Expenditure Account is

Correct Answer: (c) Nominal Account
Solution:

Income and Expenditure account is Nominal Account. The income and expenditure account is a summary of all items of incomes and expenses which relate to the ongoing accounting year. In preparing income and expenditure account, the rule of nominal account i.e. debit all expenses and losses and credit all incomes and gains is followed.

63. Legacies are generally

Correct Answer: (a) Capitalized and taken to balance sheet
Solution:

Legacies are generally capitalised and taken to balance sheet. In accounting legacy should be recorded as capital receipt because it is received for a specific purpose. This has to be added to capital fund and to be taken in balance sheet.

64. The abnormal loss on consignment is credited to

Correct Answer: (c) Consignment Account
Solution:

The abnormal loss on consignment is credited to consignment account. The Abnormal loss is calculated just like unsold stock on consignment and credited to consignment account and debited to Abnormal or Accidental loss account and then transferred to general profit and loss account. So as to arrive at the correct profit or loss of consignment.

65. When good are purchased for the Joint venture, the amount is debited to

Correct Answer: (b) Joint Venture Account
Solution:

When good are purchased for the joint Venture, the amount is debited to Joint Venture Account.

66. Consider the following information.

Rate of gross profit-25% on cost of goods sold
Sale -` 20,00,000
Which one of the following is the amount of gross profit?

Correct Answer: (d) ₹ 4,00,000
Solution:

67. Branch Account under Debtors System is

Correct Answer: (c) Nominal Account
Solution:

Branch account under debtor system is nominal account. Debtor system of accounting is suitable for the small size branches. Under this, a branch account is opened for each branch in the head office ledger. Branch account is prepared in such a way that it discloses the profit or loss of the branch.

68. The cost of electric power should be apportioned over different departments according to

Correct Answer: (c) Horsepower Multiplied by machine hours
Solution:

The cost of electric power should be apportioned over different departments according to Horsepower multiplied by machine hours in accounting. It comes under departmentalisation of overhead, which is process of identifying production overhead expenses with different production / service departments. It is done by means of allocation and apportionment of overheads among various departments.

69. Under which schedule of the Companies Act, 2013, the formats of financial statements are prescribed?

Correct Answer: (c) Schedule III
Solution:

Under Schedule III of the Companies Act, 2013 the formats of financial statements are prescribed. It provides general instructions for preparation of the balance sheet and the statements of profit and loss of a company.

70. In the absence of any provision in the partnership agreement, profits and losses are shared by the partners.

Correct Answer: (b) Equally
Solution:

In the absence of any provision in the partnership agreement, profit and losses are shared equally by the partners. The Indian Partnership Act, 1932 defines a partnership as a relation between two or more or more persons who agree to share the profits of a business run by them all or by one or more person acting for them all.