UKPSC Assistant Accountant
Solved Question Paper 2020
Question Booklet Code: 02
Question Booklet Series: A
Max. Marks: 100
Time: 2 Hours
In this Post you will Get [UKPSC] Uttarakhand Assistant Accountant Solved Question Paper 2020 with notes. We have Also Uploaded [UKPSC] Uttarakhand Sahayak Lekhakar Solved Question Paper from 2016 till Date in Hindi. Complete Self study notes for [UKPSC] Uttarakhand Assistant Accountant Exam is available now.
1. Total debtors account is prepared to know:
(A) Credit purchase.
(B) Credit sales.
(C) Cash sales.
(D) None of the above.
Ans: (B) Credit sales.
[Hint: Total creditors account is prepared to find credit purchases. Credit purchase + Cash purchase = Total purchases; Total purchases - return outward = net purchases.]2. On seizer of goods by the hire vendor, the balance of the assets account transferred to:
(A) Profit-loss a/c.
(B) Hire vendor a/c.
(C) Goods repossessed a/c.
(D) None of the above.
Ans: (C) Goods repossessed a/c.
3. The maturity period of treasury bill is:
(A) 91 days.
(B) 364 days.
(C) Both (A) and (B).
(D) None of the above.
Ans: (C) Both (A) and (B).
[Hint: the Government of India presently issued three tenors TB 91 day, 182 days and 364 days.]
4. Indian accounting standards are issued by:
(A) Reserve Bank of India.
(B) Central Government.
(C) State Government.
(D) Institute of Chartered Accountants of India.
Ans: (D) Institute of Chartered Accountants of India.
5. Basic objectives of financial management is:
(A) Maximisation of sales.
(B) Maximisation of wealth.
(C) Maximisation of profit.
(D) None of the above.
Ans: (B) Maximisation of wealth.
Also Read: UKPSC Assistant Accountant Exam Solved Question Papers [English Medium]
👉UKPSC Assistant Accountant Solved Question Paper 2016
Also Read: UKPSC Assistant Accountant Exam Solved Question Papers [Hindi Medium]
6. Zero base budgeting was first used in:
(A) United States of America.
(B) England.
(C) Germany.
(D) India.
Ans: (A) United States of America.
7. Which of the following is not a basic principle of accounting?
(A) Principle of expenses.
(B) Principle of full disclosure.
(C) Principle of historical cost.
(D) Principle of cost and benefit.
Ans: (A) Principle of expenses.
8. The most rigorous test of liquidity is:
(A) Current ratio.
(B) Absolute liquid ratio.
(C) Quick ratio.
(D) None of the above.
Ans: (B) Absolute liquid ratio.
9. ‘A plan is a trap to capture the future’. This statement is of:
(A) Allen.
(B) Terry.
(C) Hurley.
(D) Newman.
Ans: (A) Allen.
10. Principle of indemnity applies in:
(A) Life insurance.
(B) Life and fire insurance.
(C) Life and marine insurance.
(D) Marine and fire insurance.
Ans: (D) Marine and fire insurance.
11. Return of investment is computed by:
(A) Profit and investment.
(B) Cost of capital and investment.
(C) Profit and sales.
(D) None of the above.
Ans: (A) Profit and investment.
12. On dishonour, a promissory note does not require:
(A) Noting.
(B) Accepting.
(C) Discounting.
(D) None of the above.
Ans: (B) Accepting.
13. Use of LIFO method is suitable at:
(A) Rising prices.
(B) Falling prices.
(C) Constant prices.
(D) All of the above.
Ans: (A) Rising prices.
14. The Sale of Goods Act came in force from:
(A) 1872 A.D.
(B) 1930 A.D.
(C) 1932 A.D.
(D) 1949 A.D.
Ans: (B) 1930 A.D.
15. Verification of assets includes:
(A) Physical verification of assets.
(B) Verification of proper value of assets.
(C) Verifying that assets are free from any charge.
(D) All of the above.
Ans: (D) All of the above.
16. The section of agreement in restrains of trade is:
(A) 28.
(B) 27.
(C) 29.
(D) 26.
Ans: (B) 27.
17. Short cut key for ‘Purchase Voucher’ in Tally is:
(A) F7.
(B) F8.
(C) F9.
(D) F10.
Ans: (C) F9.
18. Holding company means:
(A) Which holds at least 50 percent shares of other company.
(B) Which holds at least 51 percent shares of other company.
(C) A company controls over the Board of Directors of other company.
(D) Which holds at least 75 percent shares of other company.
Ans: (B) Which holds at least 51 percent shares of other company.
19. The difference between actual cost and standard cost is known as:
(A) Profit.
(B) Differential cost.
(C) Variance.
(D) Margin of safety.
Ans: (C) Variance.
20. The Institute of Chartered Accountants of India was established on:
(A) 1 July, 1949 A.D.
(B) 1 April, 1948 A.D.
(C) 1 January, 1950 A.D.
(D) 1 April, 1932 A.D.
Ans: (A) 1 July, 1949 A.D.
21. The beginning inventory of the current year is overstated by Rs. 5,000 and closing inventory is over started by Rs. 12,000. These errors will effect net income for the current year by:
(A) Rs. 17,000 (understated).
(B) Rs. 17,000 (overstated).
(C) Rs. 12,000 (understated).
(D) Rs. 7,000 (overstated).
Ans: (D) Rs. 7,000 (overstated).
[Hint: Overstating of opening stock decreases profits and understating of opening stock increases profits. Opposite will be the case for closing stock.]22. When two or more than two companies doing similar business combine together and farm a new company to take over their business than this combination is called:
(A) Amalgamation.
(B) Absorption.
(C) Reconstruction.
(D) Reconstitution.
Ans: (A) Amalgamation.
23. Responsibility accounting is also known as:
(A) Profitability accounting.
(B) Activity accounting.
(C) Both (A) and (B).
(D) None of the above.
Ans: (C) Both (A) and (B).
24. Which of the following pairs is wrong?
(A) Goodwill – Intangible asset.
(B) Oil well – Wasting asset.
(C) Preliminary expenses – Fictitious asset.
(D) Stock in Trade – Liquid asset.
Ans: (D) Stock in Trade – Liquid asset.
[Hint: Liquid assets exclude Stock in trade and prepaid expenses]
25. If financial leverage is 1.32, then by what percentage will taxable income increase if EBIT increase by 6%?
(A) 22%.
(B) 13.2%.
(C) 12%.
(D) 7.92%.
Ans: (D) 7.92%.
[Hint: Financial leverage is 1.32, this means that 6% change in EBIT will cause 7.92% change in EBT.]
26. A partnership firm sold a residential house, under which Section the firm can get exemption a long-term capital gains?
(A) Section 54.
(B) Section 54 D.
(C) Section 54 F.
(D) Section 54 EC.
Ans: (A) Section 54.
27. If in a process, normal loss is 10%, abnormal wastage is 100 units, output is 8,000 units, then number of units introduced in the said process will be:
(A) 8,900 units.
(B) 8,910 units.
(C) 8,690 units.
(D) 9,000 units.
Ans: 9,000 units.
28. Which type of audit is more suitable where there is no satisfactory system of internal check?
(A) Continuous audit.
(B) Interim audit.
(C) Cost audit.
(D) Tax audit.
Ans: (A) Continuous audit.
29. The name of third partner in the case of Garner versus Murray dispute was:
(A) Smith.
(B) J.S. Mill.
(C) Wilkins.
(D) Irving Fisher.
Ans: (C) Wilkins.
30. Which one of the following is not an inventory valuation method?
(A) Weighted average price method.
(B) Last in First Out method.
(C) Balance sheet method.
(D) First in First Out method.
Ans: (C) Balance sheet method.
31. Which of the following is not a current asset?
(A) Furniture.
(B) Stock.
(C) Sundry debtors.
(D) Cash at Bank.
Ans: (A) Furniture.
32. Goodwill is:
(A) Current assets.
(B) Fixed assets.
(C) Intangible assets.
(D) Fictitious assets.
Ans: (C) Intangible assets.
33. Cost accounting is part of:
(A) Financial accounting.
(B) Managerial accounting.
(C) Both (A) and (B).
(D) None of the above.
Ans: (C) Both (A) and (B).
34. When a contract is 50% complete, the amount of profit to be taken credit of will be:
(A) Full amount of profit estimated.
(B) 50% of the estimate profit.
(C) Two third of the earned profit.
(D) None of the above.
Ans: (C) Two third of the earned profit.
[Hint: Rules relating to estimating profit / loss on incomplete contracts
(i)If completion of contract is less than 25% no profit should be taken to profit and loss account.
(ii)If completion of contract is upto 25% or more but less than 50% then, 1/3
(iii) If completion of contract is upto 50% or more but less than 90% then, 2/3
(iv) If completion of contract is upto 90% or more then, full earned profit.]
35. Which is not the technique of Capital Structure Analysis?
(A) Trading on equity.
(B) Capital gearing.
(C) Capital budgeting.
(D) Cost of capital.
Ans: (C) Capital budgeting.
36. According to Company Act 2013, it is required to pay maximum interest rate on calls in advance:
(A) 5%.
(B) 10%.
(C) 12%.
(D) 15%.
Ans: (C) 12%.
37. What will be quick ratio? If current ratio = 3 : 1, stock = Rs. 30,000, total current liabilities = Rs. 60,000.
(A) 3 : 1.
(B) 2.5 : 1.
(C) 2 : 2.
(D) 1 : 2.5
Ans: (B) 2.5 : 1.
38. If the total assets increased by Rs. 1,50,000 and the total liabilities increased by Rs. 60,000 in the same accounting period, the capital in that accounting period would:
(A) Decrease by Rs. 90,000.
(B) Increase by Rs. 90,000.
(C) Decrease by Rs. 60,000.
(D) Increase by Rs. 60,000.
Ans: (B) Increase by Rs. 90,000.
[Hint: Capital = Assets - Liabilities; Increase in capital = Increase in assets - Increase in liabilities; Decrease in capital = Decrease in assets - decrease in liabilities.]39. Which account is prepared to find out the amount of closing stock?
(A) Head office a/c.
(B) Branch a/c.
(C) Memorandum stock a/c.
(D) None of the above.
Ans: (D) None of the above. [Hint: Memorandum Trading Account]
40. Following transactions were made by a trader. Due to these transactions total of sales book will be:
(i) Sold goods to Gupta = Rs. 4,000.
(ii) Sold goods to Shyam on cash = Rs. 5,000.
(iii) Sold goods to Mohan on credit = Rs. 7,000.
(A) Rs. 11,000.
(B) Rs. 16,000.
(C) Rs. 12,000.
(D) Rs. 9,000.
Ans: (A) Rs. 11,000.
41. Balance of share forfeiture a/c is shown in the balance sheet under the item:
(A) Current liabilities and provisions.
(B) Reserve and surplus.
(C) Share capital a/c.
(D) Unsecured loan.
Ans: (C) Share capital a/c.
42. Which of the following ratios is favourable indication, if it is low?
(A) Operating ratio.
(B) Operating profit ratio.
(C) Fixed assets turnover ratio.
(D) Current ratio.
Ans: (A) Operating ratio.
43. Income tax was levied in India first by which of the following?
(A) Sir James Wilson.
(B) Sir James.
(C) Sir Newton.
(D) Sir Lucas Paciolo.
Ans: (A) Sir James Wilson.
[Hint: In 1860, income tax was introduced by James Wilson (British India's first finance minister)in India.]
44. Memorandum joint venture a/c is a:
(A) Personal a/c.
(B) Real a/c.
(C) Nominal a/c.
(D) Joint a/c.
Ans: (C) Nominal a/c.
45. When one company goes in liquidation and a new company is formed to take over the business of the company, which goes in liquidation, this is called:
(A) Amalgamation.
(B) Absorption.
(C) External reconstruction.
(D) Internal reconstruction.
Ans: (C) External reconstruction.
46. Fixed cost per unit increase when:
(A) Variable cost per unit increase.
(B) Variable cost per unit decrease.
(C) Production volume increase.
(D) Production volume decrease.
Ans: (D) Production volume decrease.
47. In case of non-agreement of trial balance the amount of temporarily put to:
(A) Stock a/c.
(B) Debtors a/c.
(C) Creditor a/c.
(D) Suspense a/c.
Ans: (D) Suspense a/c.
48. Higher debt equity ratio [Debt/Equity] results in:
(A) Lower financial risk.
(B) Higher degree of operating risk.
(C) Higher degree financial risk.
(D) Higher earnings per share (EPS).
Ans: (C) Higher degree financial risk.
49. According to the concept of conservatism, the stock-in-trade is valued at:
(A) Cost price.
(B) Market price.
(C) Cost or market price whichever is higher.
(D) Cost or market price whichever is lower.
Ans: (D) Cost or market price whichever is lower.
50. Goods sent by the head office to the branch, but not received by the branch till closing date of account year. In this case, head office will place credit to:
(A) Goods in transit a/c.
(B) Trading a/c.
(C) Goods sent to branch a/c.
(D) Branch a/c.
Ans: (A) Goods in transit a/c.
51. Royalty payable to lessee is debited to:
(A) Royalty a/c.
(B) Landlord a/c.
(C) Profit and loss a/c.
(D) None of the above.
Ans: (A) Royalty a/c.
52. The expenses on the debit side of trading account is called:
(A) Establishment expenses.
(B) Purchasing expenses.
(C) Manufacturing expenses.
(D) Selling expenses.
Ans: (B) Purchasing expenses.
[Hint: Manufacturing expenses are shown in manufacturing account.]
53. Which of the following errors is not disclosed by trial balance?
(A) Compensating errors.
(B) Errors of principles.
(C) Errors of omission.
(D) All of the above.
Ans: (D) All of the above.
54. Cost of goods sold from the following information will be:
Opening stock Rs. 3,700, Purchase Rs. 1,20,000, Closing Stock Rs. 2,500.
(A) Rs. 23,300.
(B) Rs. 20,800.
(C) Rs. 22,000.
(D) None of the above.
Ans: (D) None of the above.
[Hint: 1,21,200. Opening stock + purchase – Closing stock = cost of goods sold.]
55. In final accounts abnormal loss of stock is entered in:
(A) Trading account only.
(B) Profit & Loss account only.
(C) Both (A) and (B).
(D) Balance Sheet.
Ans: (C) Both (A) and (B).
56. Which of the following is not the source of cash?
(A) Purchase of fixed assets.
(B) Funds from operation.
(C) Issue of Shares
(D) Sales of fixed assets.
Ans: (A) Purchase of fixed assets.
57. If royalty payable Rs. 18,000, short working Rs. 9,000, minimum rent will be:
(A) Zero.
(B) Rs. 9,000.
(C) Rs. 18,000.
(D) Rs. 27,000.
Ans: (D) Rs. 27,000.
58. What is transferred to hirer under hire purchase system?
(A) Ownership of assets.
(B) Possession of assets.
(C) Ownership and possession of assets.
(D) None of the above.
Ans: (B) Possession of assets.
[Hint: Ownership is transferred only when full and final payment is made.]
59. The separate record maintained for each item that appears on the financial statement is the:
(A) Ledger.
(B) Account.
(C) Chart of accounts.
(D) None of the above.
Ans: (A) Ledger.
60. The software company promoted by Narayana Murthy is:
(A) WIPRO.
(B) INFOSYS.
(C) SATYAM.
(D) HCL.
Ans: (B) INFOSYS.
61. Branch adjustment a/c is prepared by:
(A) Dependent branch.
(B) Head office of dependent branch.
(C) Head office of independent branch.
(D) None of the above.
Ans: (B) Head office of dependent branch.
62. If profit is 25% on cost price, then profit on sale price will be:
(A) 20%.
(B) 30%.
(C) 33 1/3%.
(D) 40%.
Ans: (A) 20%.
63. Which of the following is not a cash inflow?
(A) Decrease in trade receivables.
(B) Issue of shares.
(C) Decrease in trade payables.
(D) Sale of fixed assets.
Ans: (C) Decrease in trade payables.
64. If the shares are forfeited the share capital a/c is debited by:
(A) Face value of shares.
(B) Paid up value of the shares.
(C) Called up value of the shared.
(D) Issue price of the shares.
Ans: (C) Called up value of the shared.
65. Which of the following is a source of funds?
(A) Issue of equity shares.
(B) Issue of preference shares.
(C) Issue of debentures.
(D) All of the above.
Ans: (D) All of the above.
66. Under which section a company auditor is appointed?
(A) 130.
(B) 228.
(C) 230 (a).
(D) 251.
Ans: (A) 130.
[Hint: The Auditor is appointed in the companies under section 139 of the Companies Act, 2013.]
67. Discount allowed on the re-issue of forfeited shares cannot exceed:
(A) 10% of the paid up capital.
(B) 10% of the capital re-issued.
(C) The amount received on forfeited share.
(D) The amount not received on forfeited shares.
Ans: (D) The amount not received on forfeited shares.
68. Balance of forfeited shares a/c after re-issue of forfeited shares is transferred to:
(A) Statement of profit and loss.
(B) Capital reserve a/c.
(C) General reserve a/c.
(D) None of the above.
Ans: (B) Capital reserve a/c.
69. Y Ltd. is the subsidiary of X Ltd. Z Ltd. is the subsidiary of Y Ltd. The relation between X Ltd. and Y Ltd. is that of:
(A) No relation between X Ltd. and Z Ltd.
(B) X Ltd. is the holding company of Z Ltd. but Z Ltd. is not its subsidiary company.
(C) Z Ltd. is also a subsidiary of X Ltd.
(D) Y Ltd. is the subsidiary of both the companies.
Ans: (C) Z Ltd. is also a subsidiary of X Ltd.
70. The term ‘Fund’ as used in fund flow analysis means:
(A) Cash only.
(B) Total assets.
(C) General Reserve.
(D) Current Assets – Current Liabilities.
Ans: (D) Current Assets – Current Liabilities.
[Hint: In fund flow analysis, the term funds mean working capital.]
71. Which of the following ratios are taken into consideration by a banker before sanctioning the loan?
(A) Proprietary ratio.
(B) Stock – Turnover ratio.
(C) Debt – Equity ratio.
(D) All of the above.
Ans: (C) Debt – Equity ratio.
[Hint: Mainly Debt service coverage ratio is considered. But this is not in the option.]
72. Which type of audit is conducted throughout the year?
(A) Annual audit.
(B) Interim audit.
(C) Continuous audit.
(D) Complete audit.
Ans: (C) Continuous audit.
73. Winding up of the company is by:
(A) Closure of business.
(B) Sale of assets.
(C) End of legal existence.
(D) Articles.
Ans: (C) End of legal existence.
74. Contribution/Earnings Before Interest and Taxes (EBIT) = ?
(A) Financial leverage.
(B) Operating leverage.
(C) Composite leverage.
(D) None of the above.
Ans: (B) Operating leverage.
75. According to the cost concept, that the assets are always valued at:
(A) On cost price.
(B) On market price.
(C) On purchase price.
(D) None of the above.
Ans: (C) On purchase price.
76. Gratuity received by a government employee is:
(A) Fully taxable.
(B) Exempted upto Rs. 5,00,000.
(C) Exempted upto Rs. 20,00,000.
(D) Exempted upto Rs. 3,50,000.
Ans: (C) Exempted upto Rs. 20,00,000.
77. Fixed cost per unit increases when:
(A) Scale of production decreases.
(B) Scale of production increases.
(C) Both (A) and (B).
(D) None of the above.
Ans: (A) Scale of production decreases.
78. The person who first published the principles of doubles entry system was?
(A) Lucas Pacioli.
(B) Alfred Marshall.
(C) F.W. Taylor.
(D) Henry Fayol.
Ans: (A) Lucas Pacioli.
79. An agreement without consideration is:
(A) Valid.
(B) Voidable.
(C) Void.
(D) None of the above.
Ans: (C) Void.
80. Under which heading of balance sheet, is general reserve shown?
(A) Share capital.
(B) Reserve and surplus.
(C) Miscellaneous expenditure.
(D) None of the above.
Ans: (B) Reserve and surplus.
81. When shares are forfeited, share capital a/c is debited by:
(A) Issue price of shares.
(B) Called up amount of shares.
(C) Paid-up amount of shares.
(D) Market price of share.
Ans: (B) Called up amount of shares.
82. If the loan from wife is assumed to be given out of her personal property, then position of such loan is like:
(A) Unsecured creditor.
(B) Preferential creditor.
(C) Fully secured creditor.
(D) Partly secured creditor.
Ans: (A) Unsecured creditor.
83. A.D.R.s are issued in:
(A) Canada.
(B) China.
(C) India.
(D) United States of America.
Ans: (D) United States of America.
84. Opening capital Rs. 45,000, closing capital Rs. 75,000, withdrawal Rs. 10,000 and fresh capital Rs. 5,000. Profit will be:
(A) Rs. 1,05,000.
(B) Rs. 25,000.
(C) Rs. 15,000.
(D) Rs. 35,000.
Ans: (D) Rs. 35,000.
85. Depreciation is provided on:
(A) Fixed assets.
(B) Current assets.
(C) Intangible assets.
(D) All of the above.
Ans: (A) Fixed assets.
86. Human resource management include(s):
(A) Recruitment.
(B) Selection.
(C) Training.
(D) All of the above.
Ans: (D) All of the above.
87. Internal auditor is appointed by:
(A) Board of Directors.
(B) Shareholders.
(C) Control Government.
(D) Company Secretary.
Ans: (A) Board of Directors.
88. In which section of Indian Contract Act, a contract without consideration is void:
(A) Section 25.
(B) Section 10.
(C) Section 23.
(D) Section 2(d).
Ans: (A) Section 25.
89. Rebate on bill discounted is:
(A) An income.
(B) An income received in advance.
(C) Accrued income.
(D) Liability.
Ans: (B) An income received in advance.
90. Sales to Ram Rs. 500 posted to his a/c as Rs. 50 would affect:
(A) Sales a/c.
(B) Ram’s a/c.
(C) Cash a/c.
(D) Profit & Loss a/c.
Ans: (B) Ram’s a/c.
91. Who has coined the net operating income theory of capital structure?
(A) Gordon.
(B) Hudson.
(C) Durand.
(D) Walter.
Ans: (C) Durand.
92. A citizen of India, who goes abroad for the purpose of employment, he must stay in India to become resident at least:
(A) 182 days.
(B) 90 days.
(C) 60 days.
(D) 180 days.
Ans: (A) 182 days.
93. Formula for operating leverage is:
(A) E.B.I.T. / P.B.T.
(B) C. / E.B.I.T.
(C) B.E.P. / E.B.I.T.
(D) None of the above.
Ans: (B) C. / E.B.I.T.
94. Which one of the following is not a non-cash item?
(A) Provision for bad debts.
(B) Goodwill written off.
(C) Depreciation.
(D) Cash sales.
Ans: (D) Cash sales.
95. High financial leverage is a blessing when:
(A) The earnings are more than the cost of debt.
(B) Earnings are less than the cost of debt.
(C) Earnings equal the cost of capital.
(D) There is inflation.
Ans: (A) The earnings are more than the cost of debt.
96. Trial balance discloses:
(A) Errors of omission.
(B) Errors of commission.
(C) Errors of principles.
(D) Errors of balances.
Ans: (B) Errors of commission.
97. Purchased a machinery for Rs. 2,000 but debited to purchase a/c is:
(A) Clerical error.
(B) Error of principle.
(C) Compensating error.
(D) None of the above.
Ans: (B) Error of principle.
98. Test checking reduces the:
(A) Work of an auditor.
(B) Liability of an auditor.
(C) Both (A) and (B).
(D) None of the above.
Ans: (A) Work of an auditor.
99. In which policy of working capital management, the permanent current assets are financed by short term financing?
(A) Conservative policy.
(B) Aggressive policy.
(C) Moderate policy.
(D) All of the above.
Ans: (B) Aggressive policy.
100. Who has given the formula P = D / Ke-g for determining dividend policy?
(A) Modigliani – Miller.
(B) James E. Walter.
(C) Myron Gordon.
(D) David Durand.
Ans: (C) Myron Gordon.
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