Senior Accountant Practical Calculation Exam

EXAM INSTRUCTIONS
1. Total Questions: 15.
2. Exam Duration: 45 Minutes.
3. All questions are compulsory.
4. Please complete the exam within the given time limit.
5. The timer will be visible throughout the examination.
6. Once 30 minutes are completed, the exam will be automatically submitted and closed.
7. After submission, no changes or edits to answers will be allowed.
8. Ensure that all calculations, journal entries, and workings are clearly presented wherever required.
9. The examination result will be sent to your registered email address within a few hours after submission.
10. Any form of unfair means or malpractice may lead to disqualification.
Best of Luck for Your Exam!

Give your best effort and showcase your accounting knowledge and practical skills.

1. Accrued Salary Adjustment Employee salaries for March are $18,500. The salary will be paid on April 5. Requirement: 1. Pass month-end accrual entry on March 31. 2. Pass reversal entry on April 1. 3. Pass salary payment entry on April 5.

2) Prepaid Insurance Calculation On January 1, the company paid $24,000 for a 12-month insurance policy. Requirement: 1. Pass initial entry. 2. Calculate monthly insurance expense. 3. Pass March month-end adjustment entry. 4. Show remaining prepaid balance after March adjustment.

3) Deferred Revenue Recognition A customer paid $48,000 in advance on April 1 for a 12-month AMC contract. Requirement: 1. Pass advance receipt entry. 2. Calculate monthly revenue recognition. 3. Pass adjustment entry on April 30. 4. Calculate deferred revenue balance after 3 months.

4) Fixed Asset Purchase & Depreciation A machine was purchased for $120,000 on July 1. Useful life is 5 years with salvage value of $20,000. Requirement: 1. Pass asset purchase entry. 2. Calculate monthly depreciation using straight-line method. 3. Pass July depreciation entry. 4. Calculate NBV after 1 year. text{Depreciation Expense} = frac{text{Cost} - text{Salvage Value}}{text{Useful Life}}

5) Payroll Journal Entry Employee Gross Salary: $25,000 Deductions:  Federal Tax: $3,500  State Tax: $1,000  401(k): $1,250  Employee Social Security: 6.2%  Employee Medicare: 1.45% Employer Contributions:  Employer Social Security  Employer Medicare  FUTA: 0.6%  SUTA: 2.7% Requirement: 1. Calculate all deductions and employer liabilities. 2. Pass payroll journal entry. 3. Pass employer tax liability entry. 4. Pass payroll payment entry.

6) Bank Reconciliation Adjustment Bank Balance: $95,000 Book Balance: $89,500 Additional Information:  Outstanding checks: $4,200  Deposit in transit: $6,000  Bank charges not recorded: $300  Interest earned not recorded: $150  NSF check: $1,150 Requirement: 1. Prepare reconciliation statement. 2. Pass necessary adjustment entries.

7) Accounts Receivable Bad Debt Provision Total Accounts Receivable balance is $180,000. Company policy is to maintain 5% provision for doubtful debts. Existing allowance balance is $4,000. Requirement: 1. Calculate required provision. 2. Calculate adjustment amount. 3. Pass adjustment journal entry.

8) Inventory Shrinkage Entry Physical inventory count shows inventory worth $72,000 while books show $79,500. Requirement: 1. Calculate shrinkage amount. 2. Pass inventory adjustment entry. 3. Explain impact on Profit & Loss.

9) Loan & Interest Accrual Company received loan of $500,000 at 9% annual interest on October 1. Requirement: 1. Pass loan receipt entry. 2. Calculate interest accrued till December 31. 3. Pass year-end accrued interest entry. text{Interest} = text{Principal} times text{Rate} times text{Time}

10) Credit Card Reconciliation Adjustment Credit card statement balance is $18,750. Books show $17,920. Unrecorded items:  Annual fee: $250  Interest charge: $180  Duplicate expense booked in books: $400 Requirement: 1. Prepare reconciliation. 2. Pass adjustment entries.

11) Revenue Cut-Off Adjustment Goods worth $15,000 were delivered on March 30 but invoice was generated on April 2. equirement: 1. Explain revenue recognition treatment. 2. Pass March adjustment entry. 3. Reverse if necessary.

12) Fixed Asset Disposal Furniture purchased for $40,000 accumulated depreciation $28,000 was sold for $15,000. Requirement: 1. Calculate gain/loss on sale. 2. Pass disposal entry.

13) Accrued Utility Expense Electricity bill for March received in April amounts to $2,850. Requirement: 1. Pass March accrual entry. 2. Pass reversal entry. 3. Pass actual bill payment entry.

14) Multi-Step Month-End Adjustment Following adjustments are pending:  Prepaid rent remaining: $6,000 out of $18,000 paid for 6 months.  Accrued professional fees: $3,200  Depreciation for office equipment: $1,450  Deferred revenue to recognize: $4,000 Requirement: 1. Pass all adjustment entries. 2. Prepare adjusted trial balance impact summary.

15) Finalization & Financial Statement Impact Following balances are identified before finalization:  Outstanding salary: $7,500  Prepaid insurance overstated by $2,000  Depreciation not recorded: $3,800  Customer advance wrongly booked as revenue: $9,000 Requirement: 1. Pass all rectification entries. 2. Calculate impact on: o Net Profit. o Total Assets. o Total Liabilities. 3. Explain which GLs are affected.
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