CSS Accountancy & Auditing Past Paper 2021
Paper-I (Subjective) 80 Marks
Attempt ONLY FOUR questions from Paper-I PART-II by selecting TWO questions from EACH SECTION. (20×4)
SECTION – I
Q. 2. You are required to prepare Income Statement for the period ending 31st December, 2019:
Q. 3. A, B are two partners sharing profits and losses in the ratio of 3:1. They admit K as a partner
and he pays Rs. 30,000 as capital. The new ratio is to be 3:1:1. The goodwill of the firm is to
be based on 3 years’ purchase of the average 4 years’ profits which are Rs. 15,000, 12,000,
18,000, 19,000.
Required:
Show the journal entries, if:
(A) K pays for the goodwill in cash.
(B) He is unable to bring the cash for the goodwill.
Q. 4. XYZ purchased a delivery truck for the distribution of its finished products for Rs. 65,000 on
1st January, 2013. The expected useful life of that truck was five years and a salvage value of
Rs. 5,000.
Required:
Calculate the following:
(A) The annual depreciation expense by applying sum of the year digit method.
(B) Pass journal entries and prepare depreciation schedule. Also state the assumptions
of this method.
SECTION – II
Q. 5. Attock Engineering Co. Ltd produces machines as per customer’s specifications. The
following data pertains to job order no. 1122:
Required: Prepare job order cost sheet. Calculate sales price of the job, assuming that it has
been contracted with a mark-up of 40% of cost.
Q. 6. Volter company’s contribution format income statement for the recent year is given below:
Management is anxious to improve the company’s profit performance and has asked you for
an analysis of number of items.
Required:
(A) Compute the company’s CM ratio and variable expense ratio.
(B) Compute the company’s breakeven point in both units and sales rupees.
Q. 7. Brooks Inc. uses process costing. The costs for Department 2 for April were:
The degree of completion of the work in process as to costs originating in department 2 was:
50% of units were 40% complete; 20% were 30% complete; and the balance were 20%
complete.
Required: The cost of production report for Department 2 for April.
Q. 8. When setting its predetermined overhead application rate, Tasty Inc. estimated its overhead
would be Rs.75,000 and manufacturing would require 25,000 machine hours in the next year.
At the end of the year, it found that actual overhead was Rs.74,000 and manufacturing
required 24,000 machine hours.
Required:
(A) Determine the predetermined overhead rate.
(B) What is the overhead applied during the year?
Paper-II (Subjective) 80 Marks
Attempt ONLY FOUR questions from Paper-II PART-II by selecting at least ONE question from EACH SECTION. (20×4)
SECTION – I (AUDITING)
Q. 2. Explain in detail why there is an established need for auditing services for each of the following organizations.
(a) Publicly owned corporations
(b) Privately owned corporations
(c) State and local government agencies
(d) Partnerships
Q. 3. Explain computer audit approaches and also write a detailed note on the characteristics of Electronic Data Processing (EDP) system.
Q. 4. Write a detailed note on the types of audit and auditors (GAAS).
SECTION – II (BUSINESS TAXATION)
Q. 5.
(a) According to the income tax ordinance, 2001, what do we mean by Resident and Non-Resident persons (sections 81-84)? Elaborate on the different types of resident persons.
(b) According to the income tax ordinance, 2001, what do we mean by tax year [section 2(68)]. Elaborate on different kinds of tax years.
Q. 6. From the following data, calculate the tax payable by Mr. Sohail Aslam for the year ended 30th June 2020:
(a) Salary Rs. 195,000 p.m.
(b) Special pay Rs. 25,000 p.m.
(c) Bonus for the year Rs. 585,000.
(d) Conveyance Allowance Rs. 15,000 p.m.
(e) Free accommodation provided by the employer. He was entitled to a house allowance of Rs. 420,000.
(f) Medical expenses reimbursed by his employer under the contract of employment Rs. 24,000.
(g) Zakat paid under the Zakat Ordinance during the year Rs. 48,000.
(h) Donation to the approved charitable institutions under section-61 Rs. 500,000.
(i) Legal expenses during the year Rs. 30,000.
(j) Amount paid for approved pension scheme during the year Rs. 190,000.
(k) Shares of listed companies purchased Rs. 10,00,000.
SECTION – III (BUSINESS STUDIES AND FINANCE)
Q. 7.
(a) Give hypothetical journal transactions that will have the following types of effects on the elements of balance sheet equation (Assets = Liabilities + Owner’s Equity).
(i) Increase in an asset and increase in a liability.
(ii) Decrease in an asset and decrease in a liability.
(iii) Increase in one asset and decrease in another asset.
(iv) Increase in an asset and increase in owner’s equity.
(v) Increase in one asset, decrease in another asset and increase in a liability.
(b) Using the information given in the following table, complete the balance sheet given underneath and write it down in answer book provided. Show there the required calculations as well.
Q. 8. Explain in detail the factors which are related to the risk structure of interest rates.