1.

Company acquired a plant on making a down payment and

signing a promissory note for the balance amount. What
amount should be included in the investing activities for this
transaction?
Acquisition price.
Down payment.
Amount of the promissory note.
Zero.

2. The following information relating to sales and trade debtors is

available from the adjusted trial balance of Jadhav Company on
September 30, 20X3 and 20X2:

Trade Debtors

Debit
28,5
00

Provision for Doubtful

Debts
Sales
Bad Debt Expense

400

March 31
20X3
20X2
Credit Debit Credit
25,3
00
1,20
900
0
93,2
81,7
00
00
200

How much cash did Jadhav Company collect from customers

during the year ended September 30, 20X3?
95,700.

89,600.
89,300.
96,000.

3. The following information relating to income tax is available

from the adjusted trial balance of Flex Company on September
30, 20X6 and 20X5:
September 30
Debit
43,200

20X6
Credit

Debit
41,900

20X5
Credit

Income Tax Expense

Income Tax Payable
28,300
25,700
Deferred Income Tax
3,700
4,100
What was the amount of income tax paid by Flex during the
year ended September 30, 20X6?
95,700.
89,600.
89,300.
96,000.

4. Which of the following statements relating to interest paid is

correct?

Interest paid including interest capitalized should be

reported as a cash outflow from financing activities.
Interest paid including interest capitalized should be
reported as a cash outflow from operating activities.
Interest paid excluding interest capitalized should be
reported as a cash outflow from financing activities.
Interest paid excluding interest capitalized should be
reported as a cash outflow from operating activities.

5. Which of the following should not be considered cash or cash

equivalent?
Bank balance in a foreign country that does not have
restrictions on remittances to other countries.
Fixed deposit for a four-month term with a remaining
maturity of two months on the balance sheet date.
Treasury bill with a maturity of three months from the date
of purchase with a remaining maturity of two months on the
balance sheet date.
Commercial paper with an original maturity of six months
with a remaining maturity of two months from the date of
purchase
and a remaining maturity of one month on the
balance sheet date.

6. A comparison of Kiran Company's balance sheet on June 30,

20X5 and 20X4 reveals the following changes in fixed assets
and investments:
Short-term investments increased by

12,000.

Long-term investments decreased by

75,000.

Fixed assets increased by

120,000.

There was no change in accumulated depreciation.

The following additional information relating to transactions
during the year ended June 30, 20X5 is available:
A car costing

30,000 was acquired on finance lease.

Equipment costing
40,000 and having an accumulated
depreciation of
28,000 was sold for
15,000.
A long-term investment was sold for

65,000.

92,000
62,000.
52,000.
55,000.

7. At the beginning of 20X5, Karuna Company had a balance of

140,000 in equity share capital. At the end of the year, the
balance increased to
215,000. During 20X5, the following
transactions relating to share capital occurred:
In March 20X5, the company made a one-for-two bonus
issue.

 In May 20X5, the company received proceeds from

issuance of share capital of
40,000 including share
premium of
10,000.
In November 20X5, the company bought back share
capital of
25,000 at a premium of
5,000.
Net cash provided by financing activities was
75,000.
10,000.
15,000.
0.