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(FOR JUNE 2011)



© Copyright Reserved by the Institute of Cost and Works Accountants of India

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2 Test Papers — Foundation




Time Allowed : 3 hours Full Marks : 100

(Answer any Five Questions : All Questions are of Equal Marks)

1. State the principles of Formal organization.
2. What is meant by Organisation Behavior? Mention its main characteristics?
3. What is decision –making? Discuss the steps in decision –making?
4. Explain the important methods of Training.
5. What do you understand by Human Resource Planning? Mention its objective.
6. Explain the reasons for conflict between Line and Staff and suggest solutions.
7. Write Short note on :

(a) Single Use Plans.
(b) Distinction between Authority and Responsibility.
(c) Process of Communication.
(d) Formal and informal organization.

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e) If a company failed to make an adjusting entry at the end of its accounting
period to record depreciation for this period, the omission will cause :
(i) An understatement of expenses
(ii) An overstatement of revenues
(iii) An understatement of assets
(iv) An overstatement of liabilities

f) Which of the following assets is not depreciated?
(i) Fixtures
(ii) Motor car
(iii) Land
(iv) Machinery

g) If furniture is bought on account, it will result into
(i) Increase in asset & decrease in liability
(ii) Increase in liability and increase in asset
(iii) Decrease in asset & decrease in liability
(iv) Increase in liability and decrease in asset

h) Which of the following is an item of expense
(i) Charges paid for installation of machinery
(ii) Recovery of electricity bills paid for employees
(iii) Payment of electricity deposit
(iv) Payment of electricity bill

i) Material was purchased for ` 25000 and freight was paid for ` 5000 for
bringing it to the warehouse. Half of it was sold for ` 25000. The company
maintains the policy of selling at 66.67% above cost. The value of closing
stock will be
(i) ` 12500
(ii) ` 15000
(iii) ` 20875
(iv) Can’t say

j) The prepaid expenses account showed an opening balance of ` 10000 and
closing balance of ` 17500. The effect of this will mean
(i) Decrease in profit by ` 10000
(ii) Increase in profit by ` 17500
(iii) Increase in profit by ` 7500
(iv) Decrease in profit by ` 7500

Test Papers — Foundation 11

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(ii) Classify the following into asset, liability, expense or income (5 marks)
a. Rent received in advance
b. Prepaid insurance
c. Provision for doubtful debt
d. Deposit with government office
e. Commission received
f. Cash received from customer
g. Employer’s contribution to provident fund
h. Unsold material
i. Carriage inwards
j. Free samples distributed

(iii) Please choose the correct answer from the alternatives given. Show your
calculations. (3×5marks)
a) The annual fixed costs of a company are ` 60000. It manufactures a product

which it sells at ` 20 each. The contribution to sales ratio is 40 per cent. The
breakeven point in units is
(i) 1200 (ii) 3000 (iii) 7500 (iv) 5000

b) The selling price of a product is ` 9 per unit with variable cost of ` 6 each
and the fixed costs are ` 54000 per month. In a period when actual sales are
` 180000, the margin of safety in units is :
(i) 2000 (ii) 14000 (iii) 18000 (iv) 20000

c) A company had opening stock of raw material A as ` 90000. The purchases
during the period were ` 270000. The closing stock was valued at ` 110000.
The inventory turnover ratio is :
(i) 2.45 (ii) 2.50 (iii) 3.00 (iv) 1.22

d) P Ltd had an opening stock of ` 2640 (300 units valued at ` 8.80 each) on 1st
April. The following receipts and issues were recorded during April

10th April Receipt 1000 units ` 8.60 per unit
23rd April Receipt 600 units ` 9.00 per unit
29th April Issues 1700 units

Under LIFO method, what was the total value of issues on 29th April?
(i) ` 14840 (ii) ` 14880 (iii) ` 14888 (iv) ` 15300

12 Test Papers — Foundation

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Time Allowed : 3 hours Full Marks : 100

(Answer all Questions : All Questions are of Equal Marks)

1. (a) The average salary per head of all the workers in an Institution is ` 60. The
average per head of 12 officers is ` 400. The average salary per head of the rest
is ` 56. Find the total number of workers.

(b) Apply the Principle of variation, how long 25 men take to plough 30 hectare, if
5 men take 9 days to plough 10 hectare of land?

2. (a) A grassy rectangular field 2 meter wide footpath running all round it. If the cost
of paving the footpath @ ` 20.00 per sq. cm is ` 2400 and the length of the field
is 16 m, find the breadth of the field.

(b) If the Volume of a cylinder is numerically equal to its lateral area, what is the
diameter of its base?

3. (a) Find the equation of the straight line that passes through the point (5, –3) and is
parallel to the line 7x + 9y – 11 = 0.

(b) Find the coordinates of vertex, focus and the length of latus rectum of the parallel
y2 = 4 (x + y).

4. (a) If 2x1y show that xdx


(b) Evaluate : (i) dxxlog (ii)


2x4x dx.

5. (a) A.M. of the following incomplete frequency distribution is 1.46. Find the values
of f2 and f3.

x : 0 1 2 3 4 5 total
y : 43 f2 f3 25 10 5 200

22 Test Papers — Foundation

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(b) Marks obtained by 50 students in a weekly test are as follows :

Marks No. of students

Less than 5 6
” ” 10 16
” ” 15 36
” ” 20 45
” ” 25 50

Find the median from the frequency distribution.

Test Papers — Foundation 23

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