CA Final September 2025 MCQ Question Paper with Answer Key Paper 1 Financial Reporting

FOR CA FINAL EXAM PREPARATION

CA Final 2025
MCQ Question Paper ·
Paper 1 Financial
Reporting
EXAM YEAR TYPE SUBJECT

CA Final 2025 MCQ Question Paper Paper 1 Financial Reporting
INCLUDES DETAILS

Answer Key September 2025 attempt

Notes · Sample Papers · Previous Year Papers · Mock Tests

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Question Paper Booklet No.
7069241
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1. The question paper comprises two parts, Part l and Part II.
2. Part I comprises Multiple Choice Questions (MCQs). �
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3. Part lI comprises questions which require descriptive answers.
4. Ensure that you receive the question paper relating to both the parts. If you have not received both, bring it to
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the notice of the invigilator.
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5. Answers to Questions of Part I are to be marked on the OMR answer sheet given on the cover page of descriptive
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answer book only. Answers to questions in Part Hare to be written inside the descriptive answer book. Answers to
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MCQs, if written inside the descriptive answer book will not be evaluated.
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6. OMR answer sheet given on the cover page of descriptive answer book will be in English only for all a
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candidates, including for Hindi medium candidates.
7. The bar coded sticker provided in the attendance register, is to be afÏxed only on the descriptive answer book.
8. You will be allowed to leave the examination hall only after the conclusion of the exam. If you have completed
the paper before time, remain in your seat till the conclusion of the exam.
9. Duration of the examination is 3 hours. You will be required to submit the descriptive answer book with OMR
cover page to the invigilator before leaving the exam hall, atler the conclusion of the exam.
10. The invigilator will give you acknowledgement on Page 2 of the admit card, upon receipt of the descriptive
answer book.
11. Candidate found copying or receiving or giving any help or defying instructions of the invigilators or
having/using mobile phone or smart watch or any other electronic gadget will be expelled from the examination
and will also be liab. le for further punitive action.
llit!MI com 30 marks
1. Answer all MCQs.
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2. Use HB pencil only to darken the circles for MCQ answers in the answer sheet.
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3. After each MCQ, four options have been given. Choose the correct or most appropriate option and darken
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the corresponding circle against the question number in the OMR Answer Sheet, completely, as shown below,

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with HB pencil. �
Marking the Answers
Example: Not as shown below
For Question No. 12, if the (Wrong method) :
candidate considers the correct 12@®©@
answer to be C, he is to mark as
shown below (Correct Method)
12@®©@
12@®©@
12@®e@ 12@®@@
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omanswer to MCQ marked inside descriptive answer book will not be considered and no marks will c
.be awarded.
If a candidate wants to change the option already darkened, he should erase it completely,em
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4. Any

e m eraser and ensure that no mark is visible after erasing. l as with good quality

l as There is no negative marking for a wrong answer. gWORK only and nowhere
6. No mark will be awarded if no circle is darkened or more than one circle is darkened
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for a particular MCQ.

g 7. Rou $h work, if any, must be done on the pages, specified
else m the question paper booklet or in the answer sheet.
as SPACE FOR ROUGH
8. Before commencement of the exam, please fill up the necessary information in the spacC' provided below and
also in the answer sheet.

I I III I I I
Total No. of Printed Pages : 16 Maximum Marks : 30

�::�:�:"c��� er
Roll No.

I
I G I T I H I t I
Name of the Candidate

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(3)
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PART-I m
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Case Scenario - I :
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Saumya Limited manufactures and sells various paper products & related machinery
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and equipment. a
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(i) On I st June, 2024, Saumya Limited sold a machinery for� 42,02,230 to a new
customer. To get into a long-term relationship with the customer, the terms of
sales include after sales service to be provided free of cost for the next four
years after the initial warranty period of l year. In general practice, the
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Company sells the after-sales service contract separately which is purchased
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by the customer after the initial warranty m
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. of 1 year at� 7,41,570.
period
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(ii) Saumya Limited had 5,000 packets
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l of computer paper inventory as on
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31-03-2025 recorded at a carrying amount of � 340 per packet. The market
price as on 31.03.2025 was� 280 per packet at which these packets could be
sold. Saumya Limited had a firm sales contract with Javin Limited to sell
2,760 packets at � 380 per packet, which cannot be settled net. Estimated
incremental selling cost was f 20 per packet.
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(iii) Saumya Ltd. bought 100 acres of land on 30111 June, 2024 for growing bamboo
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purchased 10 dogs for the security of the aforesaid land.

(iv) Saumya Limited acquired software for its internal use costing f 3,20,000. The
amount paid for the software was � 1,00,000 immediately and f 2,20,000 in
one year's time. It also incurred purchase tax of� 24,000, entry tax of 10%
(recoverable later from tax department) and legal fees of� 42,000. The cost of
capital of the company is 10%. m
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(5)
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2. The value of closing inventory of computer paper as on 31 st March, 2025 is
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(A) , 15,76,000
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(B) � 16,76,000
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(C)a , 13,00,000

(D) � 14,00,000 2

3. Assertion (I) : Purchase of dogs by Saumya Limited will not fall under the
scope of Ind AS 41 .
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Reason (II)
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Ind AS 41 applies tomagricultural produce at the time of
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harvest; not priorl or subsequent to harvest.
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(A) Both (I) & (II) are true and (II) is the correct explanation of (I).

(B) Both (I) & (II) are true but (II) is not the correct explanation of (I).

(C) (I) is true but (II) is false.

(D) (I) is false but (II) is true. 2
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The cost of the software on initial recognition using the principles
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38 is

(A) "4,18,000

(8) � 3,86,000

(C) , 3,66,000

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(D) � 3,96,000 2
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(6)
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5. Unamortised processing fees of old loan will be

(A) Added to new loan amount.

(B) Charged to Other Comprehensive Income.

(C) Charged to Statement of Profit and Loss.

(D) Added as transaction cost while calculating effective interest rate for new

loan. 2

6. Assertion (I) : Saumya Ltd. should reclassify the leased building from

Property, Plant and Equipment to Investment Property in the

financial year 2024-25.

Reason (II) A change in classification of a building from Property, Plant

and Equipment to Investment Property due to a change in

purpose for which it is held by the entity is a change in

accounting policy.

(A) Both (I) & (II) are true and (II) is the correct explanation of (I).

(B) Both (I) & (II) are true but (II) is not the correct explanation of (I).

(C) (I) is true but (TI) is false.

(D) (I) is false but (II) is true. 2

CJ GTHl

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(7)
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Case Scenario - II :
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Hans Ltd. is engaged in the business of manufacturing of automotive accessories
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s eoffice in Bhiwadi and is listed on the National Stock Exchange. It gla
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with its registered
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also ownsaa chain of retail stores across 15 different locations in the twin cities of

Delhi and Noida. Following are the brief facts about the transactions entered into by

the company for which accounting advice is sought by the Accountant of Hans Ltd.

from you:
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As per Company's policy, on pt April, 2023, Hans Ltd. granted 15,000 share
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options each to each of its 3,000 keya employees. The options are due to vest
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on 31 t March, 2027 provided that the employees remain in employment as at
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31st March, 2026. On I st April, 2023, the directors of Hans Ltd. estimated that

80% of the key employees would satisfy the vesting conditions. However,

actual employee turnover was such that this estimate was revised to 82% on
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a estimate was revised to f 4 on 31 t March, 2024 and f
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Hans Ltd. correctly recognised this transaction in the financial statements for

the year ended 3 l st March, 2024 but, however, the company did not make

additional adjustment in the financial statements for the year ended

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31st March, 2025.
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