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Advanced Taxation: Certified Finance and Accounting Professional (CFAP)

This document contains instructions and the first question for a mock examination for the Certified Finance and Accounting Professional (CFAP) qualification. The instructions state that candidates must answer all 7 questions within 3 hours and 15 minutes using black pen only. Question 1 provides background information on a partnership business called Bahaar Enterprises (BE) and its financial performance for the year ended 30th June 20X6, including additional details on sales, cost of sales, loans, and the sale of a car.

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24 views1 page

Advanced Taxation: Certified Finance and Accounting Professional (CFAP)

This document contains instructions and the first question for a mock examination for the Certified Finance and Accounting Professional (CFAP) qualification. The instructions state that candidates must answer all 7 questions within 3 hours and 15 minutes using black pen only. Question 1 provides background information on a partnership business called Bahaar Enterprises (BE) and its financial performance for the year ended 30th June 20X6, including additional details on sales, cost of sales, loans, and the sale of a car.

Uploaded by

SR TG
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MOCK EXAMINATION

Certified Finance and Accounting Professional (CFAP)


29 May 2021
3 hours – 100 marks
Additional reading time – 15min
ADVANCED TAXATION
Instructions to Examinees
(i) Answer all SEVEN questions.
(ii) Answer in black pen only.
(iii) Stop writing after 3 hours 15 minutes
(iv) Be honest with yourself

Q.1
Mr. Bahadur, Mr. Darpook and Yaqoot Limited were running a business in the name of Bahaar
Enterprises (BE). They were sharing profit and losses in the ratio of 60% , 25% and 15%. On 1 st
September 20X5, Mr. Mazboot joined him as a partner by making a payment of Rs.30 million to Mr.
Darpook as a full and final payment against his share. This business was started with a capital of Rs.100
million.
Following is the detail of BE for the year ended 30th June 20X6:

Rs.(000)
Sales 194,000
Cost of Sales (104,000)
Gross Profit 90,000
Administrative and Selling expenses (34,000)
Finance Cost (5,000)
Other Expenses (3,500)
Other Income 7,100
Profit before tax 54,600
Taxation (18,000)
Profit after tax 36,600

i. Sales are inclusive of GST @ 17% and exported to Netherland Rs.30.2 million where the tax of
Rs.200,000/- was withheld by HBL @ 1% on the realization of foreign receipts.
ii. Cost of sales included Rs.4 million, which were imported from China and sold at a price of Rs.4.8
million in the same condition. Rs.100,000/- were incurred for packing these goods which were
added to the selling expenses.
iii. The detail of the loan is as follows:
 Loan for office building Rs.10 million
 Loan for House rented out Rs. 5 million
 A loan used in export business Rs. 5 million
 A loan used to acquire plant Rs. 4 million
iv. A car was sold at a price of Rs.4 million which was purchased two years ago at a price of Rs.5
million. The buyer made this payment in cash and agricultural produce, Rs.3 million and 1
million respectively.

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