BEAT EDUCATION
FICO PRACTICAL QUESTIONS
V&G GROUP registered two company in India.
(1) V&G Diamonds ltd
(2) V&G Gold ltd
Company divided their business to 3 regions.
(1) V&G cochin
(2) V&G Chennai
(3) V&G Mumbai
G/L account group are classified in to :
Share capital
Reserve and surplus
Secured and unsecured loans
Current liabilities and provision
Fixed asset
Investment
Current asset
Loans & advances
Direct & indirect income
Direct &indirect expenses
Books of accounts are maintained by the financial year for both companies JANUARY-
DECEMBER
Document number series:
(a) General document 1-10000
(b) Sample document 10001-20000
(c) Recurring document 20001-30000
Maximum cash discount allowed by V&G Diamonds ltd – 35%
Maximum amount an employee can enter in a document is limited to 70,00,000/-
BEAT EDUCATION
The entries are passed in V&G Diamonds ltd (01/01/2024)
1. Company started business with 55,00,000/-
2. Deposited in to bank 50,000/-
3. Salary paid 25,000/-
4. Rent received 15,000/-
5. Loading charges paid 500/-
6. Telephone charge paid 2,000/-
7. Printing and stationery 1,500/-
8. Commission received by bank 20,000/-
9. Make an arrangement for easy posting of wages 1,800/-and travelling expenses 790/-
10. Make an arrangement for monthly transaction of rent paid 22,000/- for the first 6 months
of the financial year.
[Link] paid 5000/-this document was held
Company have three domestic vendors
Vendor 1
Vendor 2
Vendor 3
(1) Company paid 2, 00,000 to vendor 1 and then purchased for 1, 00,000. Clear
invoice
(2) V &G diamonds ltd purchased raw materials from vendor 2 with 5% tax, the
invoice amount RS:
3, 00,000
(3) The vendor 3 allow 30 days credit and if the bills are cleared within 5 days
allows 5% discount, if the
Bills are cleared within 10 days allow 3% discount, Bill amount 500,000
(4) Company purchased goods from vendor 2 and vendor 3 and clear the invoice
through APP
Company have a three domestic customers
BEAT EDUCATION
Customer 1
Customer 2
Customer 3
(1) V & G diamonds sold to customer 1 with5000 discount. Invoice amount RS
8, 00,000
And clear due amount
(2) V & G diamonds received advance from customer 2 RS: 10,000. And sold
goods worth 75,000. Clear
The customer using advance
(3) V & G diamonds sold to customer 3 the invoice amount for 10, 00,000
(4) To follow up pending balances company send periodic reminders to its
customer with 7 days gap
Company have a Petty Cash fund of 5000 INR. Let’s say we have the following
expenses during the month of April:
Fuel – 1200 INR
Office Snacks Party – 950 INR
Postage or Shipping bill – 250 INR
At the month-end, or when the petty cash fund reaches a minimum balance level,
the custodian applies for additional cash for the Petty Cash Fund and the amount
would be 2400 INR. This would bring the fund to 5000 INR.
BEAT EDUCATION
Company A was incorporated on February 1, 2024with an additional capital of
5,00000 shares . During the first month of its operations, the company engaged in
following transactions:
On March 1, 2024 Enter the following transactions
