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Difficulty Level - Moderate
Mostly numerical in 2 marks and 1 mark. Theory in 0.5 marks
Rs. 1000 Bond with 10% coupon rate with annual payments and 5 years to maturity. If the interest rate required is 12%, how much you should pay? Ans - 927
Bank Reconcilation Statement prepared by? Customers
Minimum number of members in Public Company - 7
AS2 - Accounting treatment of inventories by the business entities
Rectification of error (3-4 questions)
Future Value
Depreciation (sum of digit, written down and straight line method)
Bonds - 5 marks
Ratios - 4 Marks
Quick ratio calculation
Cross rate numerical
Converting euro to dollar - 2 marks
Annuity - 8 marks
Accounting standard - Maximum question
Accounting concept and convention - 10 questions
Recording and reporting stage
Call and notice money
Voucher
Capital and revenue expenditure
Total asset valuation
Foreign exchange
Journal entry - 3 questions
Final accounts of company
Bill discounting
Nominal Rate of interest/Effective rate of interest
NPV
Fixed Asset Turn Over Ratio
Anniuty due future value
Present value
Debt equity ratio
Quick ratio
Current ratio
Cashbook balance
IRR/ERR - Internal rate of return (IRR) or economic rate of return (ERR) is a rate of return used in capital budgeting to measure and compare the profitability of investments. It is also called the “discounted cash flow rate of return” (DCFROR) or the rate of return (ROR).
How much should you pay for a 1,000 bond with 10% coupon, annual payments, and 5 years to maturity if the interest rate is 12%?
The coupon payment is computed as follows:
= Coupon rate x Par value
= 10% x 1,000
= 100
So, the price of the bond will be:
= 100 / 1.12^1 + 100 / 1.12^2 + 100 / 1.12^3 + 100 / 1.12^4 + 100 / 1.12^5 + 1,000 / 1.12^5
= 927.90 Approximately
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A pass book is showing overdraft of Rs 9750. A cheque of Rs 750 presented. What will be the effect?
a. overdraft will increase by 750
b. overdraft will decrease by 750
c. cash book will be increased or decrease by 750
d. payment of cheque will be denied or none of the above
Ans - a
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