Railway Appendix-3 (IREM) Accounts Examination Practice Quiz

Question 1

On 1 October a coaching depot paid a Rs 24,000 insurance premium covering twelve months. The accounting year ends on 31 March. What expense and asset should the final accounts show?

Accepted Answer

Insurance expense Rs 12,000 and prepaid insurance Rs 12,000

Question 2

A production-unit accounts office received Rs 4,10,000 during the year for inspection services, all relating to the current year. A further Rs 90,000 was earned in March but not yet billed or received. What income and receivable are reported?

Accepted Answer

Service income Rs 5,00,000 and accrued income receivable Rs 90,000

Question 3

A stores trading account has opening stock Rs 2,10,000, purchases Rs 9,40,000 and a reliable closing count of Rs 2,60,000. What is the cost of goods sold?

Accepted Answer

Rs 8,90,000

Question 4

Recorded purchases are Rs 12,00,000. Goods invoiced at Rs 80,000 were dispatched before 31 March on free-on-board shipping-point terms, so title had passed, but they were neither received nor entered. Closing stock excludes them. What adjustment is required?

Accepted Answer

Increase purchases, creditors and goods-in-transit inventory by Rs 80,000

Railway Appendix-3 (IREM) Accounts Examination — Discussion

Railway Appendix-3 (IREM) Accounts Examination — Group Discussion