FEDERAL PUBLIC SERVICE COMMISSION, COMPETITIVE EXAMINATION – 2017,FOR RECRUITMENT TO POSTS IN BS-17,UNDER THE FEDERAL GOVERNMENT.
TIME ALLOWED: THREE HOURS
PART-I(MCQS): MAXIMUM 30 MINUTES PART-I (MCQS) MAXIMUM MARKS = 20
PART-II MAXIMUM MARKS = 80
NOTE: (i) Part-II is to be attempted on the separate Answer Book.
(ii) Attempt ONLY FOUR questions from PART-II, selecting TWO questions from EACH
SECTION. ALL questions carry EQUAL marks.
(iii) All the parts (if any) of each Question must be attempted at one place instead of at different
(iv) Candidate must write Q. No. in the Answer Book in accordance with Q. No. in the Q.Paper.
(v) No Page/Space be left blank between the answers. All the blank pages of Answer Book must
(vi) Extra attempt of any question or any part of the attempted question will not be considered.
(vii) Use of Calculator is allowed.
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Q. 2. Bella Beauty Salon's unadjusted trial balance for the current year follows:
a. An insurance policy examination showed $1,240 of expired insurance.
b. An inventory count showed $210 of unused shop supplies still available.
c. Depreciation expense on shop equipment, $350.
d. Depreciation expense on the building, $2,220.
e. A beautician is behind on space rental payments, and this $200 of accrued
revenues was unrecorded at the time the trial balance was prepared.
f. $800 of the Unearned Rent account balance was earned by year-end.
g. The one employee, a receptionist, works a five-day workweek at $50 per day. The
employee was paid last week but has worked four days this week for which she has not
h. Three months' property taxes, total $450, have accrued. This additional amount of
property taxes expense has not been recorded.
i. One month's interest on the note payable, $600, has accrued but is unrecorded.
Required: Based on the above information, prepare the adjusting journal entries for Bella's
Beauty Salon and adjusted trial balance for Bella's Beauty Salon.
Paper is Enclosed in Attachment
- Accountancy & Auditing-I-2017.pdf
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SECTION-B (BUSINESS TAXATION)
Rs. in Million
Export sales – manufactured goods 35
Local sales of exempt manufactured goods 25
Taxable supplies – manufactured goods 130
Taxable supplies – commercial imports 70
Local purchases of raw material from:
Commercial imports 50
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Q. No. 2. What system of Internal check would you recommend for a large manufacturing
company to prevent fraud in connection with the purchase of raw material on credit
Q. No. 3. A fraud has been committed in a business. Being a Manager of Accounts you are asked
by the authorities to take up investigative measures and steps to extract the fraudulent
matter. Discuss the measures and steps you will take in this regard.
Q. No. 4. What is meant by Auditor's Report? Describe the key characteristics of a good audit
report, along with the significance of Auditor's report to show the transparent picture of
Q. No. 5. (A) Define the concept of sales tax & describe the sales tax act of 1990.
Identify the official positions of Inland revenue officers and their powers.
(B) Mr. Sartaj is registered under the Sales Tax Act, 1990 as a manufacturer as
well as a commercial importer. He has provided you the following information
for the month of February, 2016:
All the above amounts are exclusive of sales tax. Commercial imports have
been stated at C&F value and are subjected to customs duty at the rate of 10%.
There was no stock of commercial imports at the beginning or end of the
Compute the sales tax liability of Mr. Sartaj along with input tax to be carried
forward (if any) in his sales tax return for the month of February 2016. (Ignore
the effect of minimum value addition in case of commercial imports)
ACCOUNTANCY AND AUDITING, PAPER-II
Basic Salary per annum 340,000
Cost of living allowance 66,000
Dearness allowance 32,000
Rent free unfurnished accommodation – annual value 162,000
Company maintained car for personal and official use, cost of vehicle is. 980,000
Utility allowance 58,000
Leave encashment 31,600
Leave Fare Assistance provided every year 22,600
Hotel bills paid by the company relating to a pleasure trip 28,400
Employee’s contribution towards provident fund 30,000
Zakat paid under Zakat and Ushr Ordinance 15,000
Tax deducted by the company for salary 35,000
Required: Compute the total income, taxable income and tax liability of Mr. Ahmed.
SECTION-C (BUSINESS STUDIES & FINANCE)
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Q. No. 6. (A) Identify the main features of Income Tax ordinance 2001. Also discuss the
exemptions and tax concessions available to a taxpayer under that ordinance.
(B) Mr. Ahmed is an employee of a company. He has submitted the following
information for the tax year 2016.
Q. No. 7. (A) Identify the major barriers that hamper global business in an open
(B) Consider a coupon bond that has a face value of $1000, has a yield of 16%,
pays a semi annual coupon of 70, and matures in one year 'assuming that the
bond will pay the face value amount that the cost coupon payment on the
maturity date. Calculate the price of the bond.
Q. No. 8. (A) Describe the economic systems, also Identify which system is more
beneficial for the economic development of the country.
(B) XYZ company presently pays a dividend of $ 1.50 per share on its common
stock. The company expects to increase the dividend at a 20% annual rate the
first four years and at the rate of 13% at the next four years then the growth on
the dividend at a 7% thereafter. This phased growth patterns is in keeping with
the expected life cycle of earnings. You are required a 16% return to invest in
this stock. What value should you place on a share of this Stock?
- Accountancy & Auditing-II-2017.pdf
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