FA 2nd Mock Test (2)

Jul 17, 2026

Upload by Asher

Certified College of Accountancy mock examination paper for Financial Accounting (FA), designed for a one-hour assessment. The document provides student identification fields, marks and teacher remarks sections, and states that all 25 questions are compulsory. It includes scenario-based multiple-choice problems covering depreciation methods, revaluation and revaluation reserves, disposal losses, trial balance impacts, inventory valuation under damage and mark-up rules, markup calculations, and IAS 2 net realizable value definitions, plus machine disposal profit or loss computations.

LanguageEnglish

CategoryExam

FormatPDF

Pages8

Reading Time20 min

Certified College of Accountancy’s Mock Exam PAPER: Financial Accounting (FA) | Full Marks | 25×2=50 | | --- | --- | | Pass Marks | 26 | Time allowed: 1 Hour STUDENTS NAME:…………………………….. DATE:………………………………………………… Marks obtained:……………………………………………… Teachers Remarks: :………………………………………………………………………………………………… ALL 25 questions are compulsory and MUST be attempted 1. A business has the following balances relating to motor vehicles: | Particular | Year ended 31 December 20X6 ($) | Year ended 31 December 20X7 ($) | | --- | --- | --- | | Carrying amount | 40,000 | 15,000 | During the year to 31 December 20X7: A) Depreciation charge for the year amounted to $15,000 B) There had been no additions to motor vehicles C) One of the motor vehicles had been disposed of for sales proceeds of $2,000 Using the above information, what should be the loss on the sale of the motor vehicle sold during the year? Answer : 2. A building was purchased on 1 January 20X1 for $300,000 and had a useful life of 40 years. On 1 January 20X5 the building was revalued by a professional surveyor to $450,000 and had a remaining useful life of 50 years. Directors decided to incorporate the revalued amount into the financial statements. What is the depreciation charge for the year ended 31 December 20X5? a) $11,250 b) $6,000 c) $9,000 d) $7,500 Answer : 3. On 1 January 20X6 a business purchased a motor vehicle. The vehicle cost $10,000 and has a residual value of $2,000. Depreciation is calculated at 20% using the reducing balance method. Which of the following should appear in the trial balance as at 31 December 20X7? a) Accumulated depreciation Dr. $3,600 b) Motor vehicle Dr. $8,000 c) Accumulated depreciation Cr. $3,600 d) Depreciation expense Dr. $2,000 Answer : 4. ABC Co. purchased a building for $500,000 on 1 January 20X2 (of which land cost $200,000) with an expected useful life of 50 years. Depreciation is charged on a straight-line basis. On 1-Jan- 20X5 the building was revalued to $800,000 (including land of $350,000) . How much should be recorded in revaluation reserve at 1-Jan-20X5 in respect of the land and buildings? a) $150,000 b) $168,000 c) $318,000 d) $300,000 Answer : 5. BF Co has 120 units in inventory at 31 March 20X8 . Each unit had cost $450 when they were purchased. The normal sales price of each unit is $500. During March 20X8, 20 of the units were damaged and will require repair costs of $12.50. The selling price after repairs have been carried out will be $430 per unit. What is the closing inventory figure at 31 March 20X8? a) $54,000 b) $53,600 c) $53,350 d) $50,100 Answer : 6. Which of the following would give a mark-up on cost of 40%? a) Sales are $201,600 and gross profit is $80,640 b) Sales are $201,600 and cost of sales is $144,000 c) Sales are $240,000 and gross profit is $96,000 d) Sales are $240,000 and cost of sales is $144,000 Answer : | Particular | $

Jul 17, 2026

Upload by Asher