MOCK

NUMERICAL
QUESTIONS
Model Test Paper

SEBI GRADE A 2020 EXAM

SEBI Grade A 2020 – Mock Numerical Questions Free SEBI Grade A e-book

SEBI Grade A 2020 – Mock Numerical Questions

Q.1 Calculate the fund from operations

• Rent - 6000,
• Salaries - 14000,
• Interim dividend - 3000,
• Provision for tax - 4000,
• Preliminary expenses - 1000,
• Transfer to reserve - 7000,
• Profit on sale of investment - 2000,
• Patents written off - 3000,
• Net profit - 40,000

a) 28,000
b) 20,000
c) 40,000
d) 17,000
e) None of the above
Answer: b) 20,000
Solution:
Rent and salaries are expenses arising due to operations which are already adjusted
while arriving at Net profit. So those items do not require any adjustments.

Particulars Rs. Rs.

Net profit 4,000
add Non-Fund or Non-Trading items already debited to P & L A/c:
Depreciation on Plant
patents written off 3,000
Provision for Tax 4,000
Preliminary Expenses 1,000
Transfer to General Reserve 7,000
Interim Dividend 3,000 18,000
22,000
less Non-Fund or Non-Trading items already Credited to P & L
Profit on Sale of Investments 2,000 -2,000
Fund from Operations 20,000
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Q.2 Which of the below results in decrease in working capital?

Item no. particulars Year 2019 Year 2020
1 Cash in Hand 15,000 10,000
2 Debtors 1,60,000 2,00,000
3 Stock 77,000 1,09,000
4 Bills Payable 20,000 16,000

a) 1
b) 2,3,4
c) 2
d) 4
e) 3
Answer: a) 1
Solution:
The difference in working capital is calculated as current year (–) previous year & not previous
year less current year.

Item no. particulars Yr 2019 Yr 2020 Nature of item Increase in WC Decrease in WC

1 Cash in Hand 15,000 10,000 current asset 5000
2 Debtors 1,60,000 2,00,000 current asset 40,000
3 Stock 77,000 1,09,000 current asset 32,000
4 Bills Payable 20,000 16,000 current liability 4,000

Q.3 Given the below information, calculate the balancing figure.

Particulars 31.3.2020 31.3.2019

Machinery ₹ 26,000 ₹ 27,000

depreciation ₹ 4,000 N/A

a) Rs.1000 Depreciation of machinery

b) Rs.1000 Sale of machinery
c) Rs.3000 Purchase of machinery
d) Rs.3000 Sale of machinery
e) Rs.5000 Depreciation of machinery

Answer: c) Rs.3000 Purchase of machinery

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Solution:

Machinery A/c
Particulars Rs. Particulars Rs.
To balance b/d 27,000 By depreciation 4,000
To Bank (Purchase of Machinery 3000 By balance c/d 26,000
balancing figure)

30,000 30,000

Q.4. From the data below of a fund flow statement, calculate the amount of
‘Interim dividend paid’.
• Issue of Share Capital 10,000.
• Funds from Operations 14,000.
• Purchase of Machinery 3,000
• Purchase of Investments 1,000
• Net increase in working capital 12,500.

a) Rs.7,500
b) Rs.24,000
c) Rs.5,500
d) Rs.32,500
e) None of the above
Answer: a) Rs.7,500
Solution:

Fund Flow Statement

Sources of funds Rs. Application of Funds Rs.
Issue of Share Capital 10,000 Purchase of Machinery 3,000
Funds from Operations 14,000 Purchase of Investments 1,000
Interim Dividend Paid (balancing figure) 7,500
Net Increase in working Capital 12,500
24,000 24,000

Q.5 Calculate the Net Increase in Cash and Cash Equivalents

Given:

• Net cash inflow from operating activities Rs.60,000

SEBI Grade A 2020 – Mock Numerical Questions Free SEBI Grade A e-book

• Net cash outflow in investing activities Rs.20,000

• Net cash outflow from financing activity Rs.10,000
• Acquisition of an enterprise by means of issue of shares Rs.20,000

a) Rs.20,000
b) Rs.60,000
c) Rs.40,000
d) Rs.80,000
e) None of the above

Answer: e) None of the above

Solution:

Cash Flow Statement

Particulars Rs.
Net cash inflow from operating activities 60,000
Net cash outflow from investing activities -20,000
Net cash outflow from financing activities -10,000
Net Increase in Cash and Cash Equivalents 30,000

Acquisition of an enterprise by means of issue of shares is a non-cash activity where an

organisation is purchased by issuing shares to the owners of the acquiring company. This does
not involve any inflow or outflow of cash.
If the acquisition were through cash, it would have been classified under investing activity and
should have been adjusted under net cash outflow from investing activities.

Q.6 Cost of production is Rs.55,000; opening stock of finished goods is Rs.

5,000; closing stock of finished goods is Rs. 3,000; calculate the cost of goods
sold.
a) Rs.57,000
b) Rs.63,000
c) Rs.55,000
d) Rs.5,000
e) Rs.3,000
Answer: a) Rs.57,000
Solution:
SEBI Grade A 2020 – Mock Numerical Questions Free SEBI Grade A e-book

Cost of production + opening stock of finished goods – closing stock of finished goods = cost
of goods sold
=55,000+5000-3000 = Rs.57,000

Q.7 Cost of goods sold Rs. 10,000; administrative overheads Rs. 3000, prime
cost Rs.4000, selling overheads Rs.6000; secondary packing cost Rs2000;
warehouse charges Rs.3000. calculate cost of sales
a) Rs.28,000
b) Rs.22,000
c) Rs.18,000
d) Rs.24,000
e) None of the above
Answer: d) Rs.24,000
Solution:

Particulars Rs.
Cost of goods sold 10,000
Add: administrative overheads 3000
Add: selling overheads 6000
Add: secondary packing cost 2000
Add: distribution overheads -warehouse 3000
charges
Cost of Sales 24,000

Q.8 Prime cost is Rs.80,000, Factory cost is Rs.1,20,000, cost of production is

Rs.2,00,000. Calculate works overheads
a) Rs.2,00,000
b) Rs.60,000
c) Rs.4,00,000
d) Rs.80,000
e) Rs.40,000
Answer: e) Rs.40,000
Solution:
SEBI Grade A 2020 – Mock Numerical Questions Free SEBI Grade A e-book

Particulars Rs.
Prime cost 80,000
Add: factory/works overheads (difference) 40,000
Factory/works cost 1,20,000

Q.9 Prime cost is Rs.70 per unit; Manufacturing overheads Rs.10 per unit,
office overheads are 10% of works cost, selling overheads Rs.20 per unit,
selling price per unit is Rs. 120 per unit. Calculate the profit per unit
a) Rs.12
b) Rs.22
c) RS.32
d) Rs.52
e) None of the above
Answer: a) Rs.12
Solution:

particulars cost per

unit
Prime cost 70
add: manufacturing overheads 10
works cost 80
add: office overheads (10% of works 8
cost)
cost of goods sold 88
add: selling overheads 20
cost of sales 108
add: profit (balancing figure) 12
Sales 120

Q.10 A customer has given an order for 600 muffins (small cake).
Cost per batch of 50 muffins is:

• Direct materials- Rs.500.

• Direct wages-Rs. 50.
• Oven set- up cost Rs. 150.
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Production overheads are absorbed at a rate of 20% of direct wages cost.

Selling, distribution and administration overheads is 10% is on the total production
cost of each batch. Calculate the cost of 600 muffins.

a) Rs.631
b) Rs.781
c) Rs.881
d) Rs.531
e) RS.332

Answer: b) Rs.781
Solution:
No. of batch = 600 units / 50 units = 12 batches

Particulars Cost per

batch (Rs.)
direct material cost 500
direct wages 50
Oven set-up cost 150
add: Production Overheads (20% of Direct 10
wages)
Total Production cost 710
add: selling overheads (10% of Total production 71
cost)
Total Cost per batch 781

Q.11 5000 units are processed at a total cost of Rs.10,000, normal loss is 5%, &
scrap units are sold @ Re.0.50 each. If the standard output is Input less 5% of
Spoilage, then the value of abnormal loss is
a) Rs. 623.68
b) Rs. 473.68
c) Rs.523.68
d) Rs.363.68
e) Rs.773.68

Answer: b) Rs. 473.68

SEBI Grade A 2020 – Mock Numerical Questions Free SEBI Grade A e-book

Solution:

Value of abnormal loss = total cost- realisable value of normal loss x abnormal loss units
Total input units – Normal loss units

= 10,000 - (250x0.5) x 300 = 10000 – 125 x 300 = Rs.623.68

4750 4750

Net cost of abnormal loss = total loss- scrap value = 623.68 – (300 x 0.50) =
Rs.473.68

Q.12 Calculate cost per unit of labour using average costing method.
• Opening Stock 50,000 Units
• Material Rs.25,000
• Labour Rs.10,000
• Overheads Rs.25,000
• Units Introduced 2,00,000 Units
• Material Rs.1,00,000
• Wages Rs.75,000
• Overheads Rs.70,000.
During the period 1,50,000 units were completed and transferred to Process II. Closing
stock 1,00,000 units.
Degree of completion: Material 100 % Labour 50 % Overheads 40 %

a) 0.25
b) 0.33
c) 0.43
d) 0.50
e) 0.60
Answer: c) 0.43
Solution:
Statement of equivalent units is calculated in process costing when the process is not 100%
complete. This is done so as to calculate the cost of each process.
SEBI Grade A 2020 – Mock Numerical Questions Free SEBI Grade A e-book

Format of statement of Equivalent Production

Input Output material Labour Overhead

Particular Units Particular Units % units % units % units

s s
opening units 1,50,000 1,50,000 1,50,000
stock 50,000 complete 10 1,50,00 10 10
d 0 0 0 0
units Closing 1,00,000 50,000 40,000
introduce 2,00,00 Stock 10 1,00,00 50 40
d 0 0 0
total 2,50,000 2,00,000 1,90,000
2,50,00 2,50,00
0 0

Statement of Cost
Element Opening Current Cost Total Cost Equivalent Units Cost per unit
Cost
Material 25,000 1,00,000 Rs.0.50
1,25,000 2,50,000
labour 10,000 85,000
75,000 2,00,000 Rs.0.43
overhead 25,000 95,000
70,000 1,90,000 Rs.0.50

Q.13 Calculate the passenger-kms

• Number of Buses 5
• Distance 40 kms
• No. of seats 40
• Passenger carried 75% of the seating Capacity
• Number of days in the month 30
• Number of trips = 1 round trip

a) 60,000
b) 1,20,000
c) 1,80,000
d) 3,60,000
e) 4,80,000
Answer: d) 3,60,000
Solution:
SEBI Grade A 2020 – Mock Numerical Questions Free SEBI Grade A e-book

• Number of Buses x Distance x Seating Capacity x Used Capacity x Number of

days in the month x Number of trips
• 5 x 40 x (40 x 75%) x 30 x 2 trips = 3,60,000 passenger kms.
• Round trip means two-way trip i.e., 2 trips

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