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FPSC · CSS 2023

Accountancy & Auditing, Paper I

100 marks · 3 hours · 7 questions · official PDF, 4 pages
This paper Accountancy & Auditing · all yearsQ. 2 · What are the Accounting Principles?…Q. 3 · Prepare a Trial Balance as…Q. 4 · Post-closing Trial Balance of Premium…Q. 5 · Eagle Star is a manufacturing…Q. 6 · An Automobile factory will use…Q. 7 · Break Even point (both in…Q. 8 · A chemical factory manufactures three…With this paperOfficial PDF4 pp← 20222023 →
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Section I

Q. 2
  1. (a)What are the Accounting Principles? Define any four accounting principles shortly. [5]
  2. (b)What are the Accounting Conventions? Define any four accounting conventions shortly. [5]
  3. (c)The below mentioned balances are extracted from the books of Emerging Technologies Pvt. Ltd. as on 31st August 2022. [10]
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Q. 3

Prepare a Trial Balance as on that date in a proper format.

(10)

PART–II

Q. 4
  1. (a)Post-closing Trial Balance of Premium Fabrics Private Limited for the year ended December 31, 2021 and 2022 are as follows: Equities and Liabilities 2022 2021 Issued and paid-up capital 5,000,000 5,000,000 Short-term running finance 3,000,000 800,000 Unappropriate profit 400,000 300,000 Trade Creditors 3,000,000 1,000,000 Accumulated Depreciation: Plant and Machinery 900,000 600,000 Motor Vehicle 420,000 280,000 12,720,000 7,980,000 Assets Land and Building 2,500,000 1,500,000 Plant and Machinery 3,000,000 2,500,000 Motor vehicles 620,000 580,000 Stock in Hand 3,600,000 1,100,000 Trade debtors 3,000,000 2,300,000 12,720,000 7,980,000 Additional data: During the year 2022, a dividend @ 10% was distributed to the shareholders. The paid-up value of each share is Rs. 10/- A Motor vehicle, having original cost of Rs. 100,000 and depreciated book value of Rs. 60,000 was sold for Rs. 80,000. Gross funds generated from operations during the year was Rs. 1,060,000. [10]
  2. (b)Mr. Haider started a business on March 1 st 2022 with a capital of Rs. 645,000. His newly appointed bookkeeper records transaction on simple papers. His cash book page shows following transactions for the year. Particulars Amount Particulars Amount Expenses Paid 27,500 Sales on cash 322,000 Receipts from debtors 241,000 Purchase of Motorbike 92,000 Payments to creditors 322,000 Drawings of Mr. Haider 25,500 Purchases on cash 148,000 On December 31 st 2022 value of closing stock is 46,000. The payables and receivables are Rs.125,000 and Rs. 80,000 respectively. Useful life of motorbike is 8 years and salvage value will be 32000. Bookkeeper decided to use the straight-line method of depreciation for the whole useful life of motorbike. [10]
(20)

SECTION–II

Q. 5
  1. (a)Eagle Star is a manufacturing company. The Company uses Rowan Premium bonus scheme for its workers payroll. Workers are also entitled to dearness allowance of Rs. 2,400 per week of 48 hours. Mr. Afzal is one of the workers of that company. His basic wage rate is 1,200 per day of 8 hours. His time sheet for the week is as under: Job Name Time Allowed Time Taken Crafting 25 hours 20 hours Assembling 30 hours 20 hours Idle time (Waiting) 8 hours [10]
(10)
Q. 6
  1. (a)An Automobile factory will use 500,000 tyres for its production in coming year. The incremental cost of placing an order is Rs. 8,000. The cost of storing a tyre for whole year is Rs. 2000.Lead time on an order is 5 days and the company wishes to keep reserve supply of two days usage. Usage per day will be constant in whole work year. Company work year consists of 250 days. Required: Calculate Economic Order Quantity and Reorder point. [10]
  2. (b)A manufacturing company of Lahore submits the following information for the year ending 31st December 2022: Particulars Amount Particulars Amount Sales 4,500,000 Raw Material 1 st January 150,000 Purchases 2,020,000 Finished Goods 1 st January 700,000 Tools Expenses 45,000 Indirect Labour 50,000 Depreciation of Plant 45,000 Power, Heat & Light 30,000 Work in process 1 st January 300,000 Finished Goods 31 st December 605,000 Purchase Retunes 20,000 Depreciation of machinery 60,000 Fire Insurance 8,000 Raw Material 31 st December 290,000 Direct Labour 590,000 Work in Process 31 st December 250,000 Misc. Manufacturing Costs 9,000 Indirect Material Consumed 50,000 Selling Expenses 5% of sales Administrative Expenses 2% of sales Required: Prepare an Income Statement for the year ended 31st December 2022 [10]
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Q. 7
  1. (a)Break Even point (both in units and value) [2]
  2. (b)If turnover for the next year is Rs. 800,000, calculate the estimated contribution and profit, assuming the cost and selling price remain the same [4]
  3. (c)A profit target of Rs. 400,000 has been desired for the next year. Calculate the turnover required to achieve the desired result. [4]
(20)
Q. 8

A chemical factory manufactures three kinds of chemicals namely Eucalyptus oil, Hexachlorobenzen and Toxaphene. In the last week of December 2022, the records were: Labor Grade No of Employees Rate per hour (Rs.) Hours Worked by each employee I 12 40 40 II 15 32 42 III 8 28 44 IV 2 16 40 Output and standard times during the same week were as follows: Components Output (In Units) Standard Minutes for each unit Eucalyptus oil 888 30 Hexachlorobenzen 1800 54 Toxaphene 960 66 Normal working hours per week are 38. Overtime is paid at the premium of 50% of the normal hour rate. Group Incentive Scheme: A group incentive scheme is in operation. The time saved is expressed as a percentage of hours worked and is shared between the group as a proportion of the hours worked by each grade. The incentive rate is 75% of the normal hour rate. Required: Prepare the payroll for the last week of December 2022 showing the basic pay, overtime and incentive amount as separate totals for each grade of labor.

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About this paper

The 2023 CSS Accountancy & Auditing paper set by the Federal Public Service Commission. Question wording only; questions marked “Not yet checked” have not been compared with the official paper yet. Open the official paper beside the questions to check any of them.

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