Chartered Accountancy, Institute of Chartered Accountants of Pakistan (Scheme 2025) · PRC · Pre-Requisite Competencies
ICAP PRC-1 Fundamentals of Accounting: mock exams and practice questions
150 original exam-style questions for ICAP PRC-1 Fundamentals of Accounting, with full timed mock exams in the real format and an explanation for every answer. Free for everyone until 31 January 2027.
- 150practice questions
- 4syllabus areas
- 2 hoursfull mock, like the real exam
ICAP PRC-1 exam format
2 hours, computer-based (Fincora design; ICAP has not published PRC-1 timing). Scheme 2025 syllabus: sole traders and partnerships, IAS 2 and IAS 16, sessions every two months. The pass mark is 50%.
| Section | Format | Marks |
|---|---|---|
| Section A | 30 objective test questions × 2 marks: multiple choice, multiple response and numeric entry | 60 |
| Section B | 2 statement questions × 20 marks: prepare a statement of profit or loss and a statement of financial position from a trial balance with adjustments (numeric entry and drop-downs) | 40 |
| Total | 100 |
Syllabus areas covered
- A · Recording financial information18 questions
- B · Adjustments in the recorded information27 questions
- C · Preparing financial statements66 questions
- D · Depreciation and inventories39 questions
Try 2 free ICAP PRC-1 questions
Real Fincora questions, with the full explanation. Sign up free for the full bank and timed mocks.
Sample question 1 · B · Adjustments in the recorded information
Kamran Auto Parts, a Gujranwala sole trader, learns that a customer owing Rs 52,000 has been declared bankrupt and nothing will be recovered. No allowance had been made against this customer's balance. Which journal entry records the write-off?
- A Dr Trade receivables Rs 52,000; Cr Irrecoverable debts expense Rs 52,000
- B Dr Irrecoverable debts expense Rs 52,000; Cr Allowance for doubtful receivables Rs 52,000
- C Dr Sales revenue Rs 52,000; Cr Trade receivables Rs 52,000
- D Dr Irrecoverable debts expense Rs 52,000; Cr Trade receivables Rs 52,000
Show the answer
Answer: D. A debt that is certainly irrecoverable is written off: Dr Irrecoverable debts expense Rs 52,000, Cr Trade receivables Rs 52,000. The customer's account in the receivables ledger is also closed off. An allowance for doubtful receivables is used only for debts that may not be collected.
Sample question 2 · D · Depreciation and inventories
Prices of the cement that Butt Building Supplies of Multan buys have risen steadily. Mr Butt proposes valuing inventory using last-in, first-out (LIFO) because it would report a lower profit. Which statement is correct under IAS 2?
- A LIFO is permitted provided it is applied consistently each year and the method is disclosed.
- B LIFO is not permitted; he must use FIFO or weighted average for interchangeable items like cement.
- C LIFO is permitted for a sole trader, as IAS 2 restricts the cost formulas for companies only.
- D LIFO is permitted under a periodic system but not under a perpetual system of recording.
Show the answer
Answer: B. IAS 2 allows specific identification for items that are not ordinarily interchangeable (para 23) and, for other items, either first-in, first-out (FIFO) or weighted average cost (para 25). LIFO was removed in the 2003 revision of IAS 2 because it does not faithfully represent inventory flows and can leave inventory in the statement of financial position at very out-of-date costs. Cement is interchangeable, so Mr Butt must use FIFO or weighted average, applied consistently.
Practise ICAP PRC-1 the way you'll sit it
Timed mocks, a question navigator and flags, then your score by syllabus area so you know what to revise next.