CPT

CPT _December_2010_Session 1__________________________________ 1
No.1 for CA/ICWA & MEC MASTER MINDS

Disclaimer: Questions asked in the examination may have
wrong/inadequate information and/or ambiguous language. In
that case the answers provided by the institute may differ from
these ideal answers. Every effort has been made taken to give
best answers. Still if you find some errors please bring them to
our notice through e-mail.
Mail id: gunturmasterminds@yahoo.com

CPT December 2010 Question Paper (Based on Memory)

1st session Marks: 100 Marks Time: 2 hrs.

Part A Accountancy
1. Securities premium will be shown in Balance
Sheet under the head of ____
a) Reserves & Surplus b) Miscellaneous exp.
c) Loans & advances d) None

2. Which of the following provide frame work
and accounting policies so that the financial
statements of different enterprises become
comparable.
a) Business Standards
b) Accounting Standards
c) Market Standards d) None

3. Which of the following factor is not considered
while selecting accounting policies?
a) Prudence b) Substance over form
c) Accountancy d) Materiality

4. Prorata basis allotted 5000 shares out of
7500 shares were applied, then 600 shares
were applied by a person, how many shares
allotted and how much amount adjusted to
allotment account. If application money is
Rs.2 per share ____, ______
a) 400 shares 600/- b) 200 shares 300/-
c) 200 shares 600/- d) 300 shares 500/-

5. Debit the receiver & credit the giver is _____
account
a) Personal b) Real
c) Nominal d) All the above

6. Cash a/c is a ______
a) Real a/c b) Nominal
c) Personal d) None

7. Which of the following is a characteristic of a
partnership
a) Artificial person
b) Perpetual succession
c) Limited liability of all partners d) None
8. X and Y are partners. Their profit sharing
ratio is 5:3. They admitted a partner Z for
5
1 th share and contribute equally by the old
partners, then new profit sharing ratio is __
a) 21:11:8 b) 20:8:9 c) 22:5:6 d) 5:3:2

9. Working capital is ______
a) Current Assets Current liabilities
b) Fixed Assets- Current liabilities
c) Fixed Assets liabilities
d) Fixed Assets Current Assets
10. Sub-partner in the partnership is
a) a partner & the known person
b) a two partners in the same firm
c) two partners in the different time
d) none of these

11. Securities premium used for the purpose of
a) Dividends b) fully paid bonus shares
c) capital loss d) none of these

12. Cash Rs. 6750 paid to M but debited to N
account. What would be the effect?
a) Trial balance b) Balance sheet
c) Individual ledgers d) total debtors

13. If there is no agreement in between the
partners for sharing profits & losses then they
share profits or losses in the ratio of ____
a) capital ratio at the beginning
b) equally c) capital ratio at the ending
d) none of the above

14. Balance in share forfeiture account is shown
under the head of ____
a) share capital b) reserves & surplus
c) secured loans d) current liabilities

15. Dissolution of partnership automatically takes
place
a) if the business becomes unlawful
b) if any one at the partners became insolvent
c) if all the partners became insolvent
d) all of the above

16. Error relating to fundamental aspect of ____
a) error of principle
b) error of commission
c) error of compensating d) error of omission

17. Liability on bills discounted at the time of final
accounts is treated as ____
a) not an liability b) current liability
c) differed liability d) contingent liability

18. Profit or loss on revaluation is shared by old
partners in _____ ratio
a) old profit sharing ratio
b) new profit sharing ratio
c) sacrificing ratio d) gaining ratio

19. Goods given as charity credited to _ account
a) charity b) purchases
c) drawings d) sales

20. In sale by description, subject matter can be
in the form of
a) sample words b) symbols
c) numbers d) all of the above

21. Selection of accounting policies appropriation
is not based on
a) prudence b) amount involved
c) substance over form d) materiality

22. As per accrual concept, which of the
followings is not true
a) revenue expenditure = profit
b) revenue profit = expenditure
c) sales + gross profit = revenue
d) revenue = profit + expenditure

23. A company forfeited As 1000 shares Rs. 10
each @ 10% discount. But A failed to pay
first call of Rs. 2 and final call of Rs. 4 and all
the shares were re issued for Rs.8 per share
as fully paid up. The loss on re issue is ____
to forfeited account will be _____
a) debited Rs. 1,000
b) debited Rs. 2,000
c) credited Rs. 2,000
d) No affected will be made

24. Mr. X sold goods to Mr. Y ask Mr. X to keep
the goods with him for some time
a) symbolic delivery
b) actual delivery
c) constructive delivery
d) none of these

25. The credit balance in the ledger account
shows
a) revenue or an asset
b) expense or an asset
c) expense or an liability
d) revenue or an liability

26. Subsidiary and journal are called
a) primary books b) secondary books
c) principal books d) cash book

27. Hari, Roy and Prasad are sharing in 3:5:1.
The Roy retired then his share was taken by
Prasad fully, then Hari & Prasad profit
sharing ratio is _____
a) 1 : 2 b) 2 : 1 c) 3 : 2 d) equally

28. The liability of a partner in a firm to outside is
_____
a) unlimited
b) Unlimited up to their capital sharing ratio
c) Unlimited up to their guaranteed amount
d) Unlimited up to their profit sharing ratio

29. Cost of goods sold Rs.80,700 ; Opening
stock Rs.5,800, Closing stock Rs.6,000 then
purchases is Rs. ____
a) 80,500 b) 74,900 c) 74,700 d) 80,900

30. If JLP is taken jointly, on death of a partner
______ is distributed to partners against JLP
a) Policy amount b) Surrender value
c) Surrender value for dead partner & policy
value for other d) none of these

31. Closing stock increased by 5000, gross profit
ratio 10% then what will be the profit
a) Gross profit will be increased by 5000
b) Gross profit will be decreased by 5000
c) Increase by 500 d) decrease by 500

32. Provision for doubtful debts is Rs.1000 &
debtors are Rs.90,000 at end of year,
provision for doubtful debt 1% required, then
the entry
a) P & L A/c Dr 900
To provision for doubtful debts 900
b) Provision for doubtful debts 900
To P & C A/c 900
c) P & L A/c Dr 100
To RDD A/c 100
d) none of these

33. If nothing is written about the accounting
assumption to be followed it is presumed that
a) They have been followed
b) They have not been followed
c) They are followed to some extent
d) none of these

34. By preparing trail balance the errors can be
revealed the following
a) Posting an entry twice in the ledger
b) Debit of Rs. 1000 is credited twice
c) Omission of complete entry d) none

35. The sale __ is completed with reserved price
a) sale by sample b) sale by description
c) sale by auction d) sale by staple

36. The buyer refused to take delivery and the
seller refused to take return then the goods
are
a) Deemed to be in transit
b) Not deemed to be in transit
c) both d) none of these

37. Payment made to creditor is with cash
discount is ____
a) reduce asset & reduce liability, add to expenses
b) reduce asset & reduce liability, add to income
c) reduce asset & increase liability, add to expenses
d) increase asset & reduce liability, add to income

38. Purchased the asset for Rs. 2,00,000 with
available discount 20% then what amount
should be credited to debentures A/c, when
the purchase consideration is discharged by
the issue of debentures.
a) Rs.2,00,000 b) Rs.1,80,000
c) Rs. 1,60,000 d) Rs.2,40,000

39. A sold goods to B on credit for Rs. 10,000
but debited to C instead of B. What will be
effected
a) trail balance b) individual account
c) balance sheet d) total debtors

40. On 31-3-09 the balance of the cash book is
Rs. 7074 (credit) and balance as per bank
statement is Rs. 3159 (debit). On scrutiny it
was found that the difference was due to
cheque issued but not yet presented for
payment. The bank balance as on 31-3-09
will be shown in bank statement as ____
a) as bank overdraft Rs. 3159
b) as cash at bank Rs. 7074
c) as bank overdraft Rs. 7074
d) as cash at bank Rs. 3159

41. A purchased a computer on 1-4-06 for
Rs.60,000 and another on 1-10-07 for Rs.
40, 000. He charged depreciation @ 20% p.a
under straight line method. What will be the
balance as on 31-03-09
a) Rs.40,000 b) Rs.64,000
c) Rs.52,000 d) Rs.48,000

42. A company forfeited 2000 shares of Rs. 10
each held by Mr. John for non payment of
allotment money of Rs. 4 per share. The
called up value per share was Rs. 9 on
forfeiture. The amount debited to share
capital will be Rs._____
a) 10,000 b) 8,000
c) 2,000 d) 18,000

43. Cost of goods sold Rs.10,000, Opening stock
Rs.2,000 and Closing stock Rs. 3,000. Find
the amount of purchases _____
a) Rs.10,000 b) Rs.11,000
c) Rs.15,000 d) Rs.9,000

44. A draws a bill on B. B did not accept the
same. Which of the following Journal entries
in the books of A
a) B/R A/c Dr b) B A/c Dr
To B A/c To B/P A/c
c) B A/c Dr d) No entry is passed
To B/R A/c

45. A owned Rs. 25,000 to B. A is insolvent. B
got As computer valuing Rs. 11,500 in full
settlement. Pass the Journal entry in the
books of B.
a) Purchases a/c Dr 11,500
To A a/c 11,500
b) Computer a/c Dr 11,500
Bad debts a/c Dr. 13,500
To A a/c 25,000
c) Computer a/c Dr 25,000
To A a/c 25,000
d) Computer A/c Dr 11,500
To A a/c 11,500

46. An amount of Rs. 8765 paid to M was
debited to N
a) increase in net profit
b) Decrease in net profit c) increase in asset
d) no effect on net profit

47. At the end of financial year, accounts
receivable has a balance of Rs.1 lakh &
provision for bad & doubtful debts provided
amounting to Rs.7,000. The expected of net
realisable value of A/c receivable is Rs.____
a) 7,000 b) 1,07,000
c) 93,000 d) 1,00,000

48. Rosa paid Rs.1,200 on 1-7-09 towards yearly
subscription (July 1, 2009 to June 30, 2010)
of a newspaper. It means she has to make
adjustment of _____ expenses for finalisation
of a/c for the year ended 31-3-10
a) Rs.300 as prepaid
b) Rs.300 as outstanding
c) Rs.200 as prepaid
d) Rs.200 as outstanding

Part B - M.Law

49. Prima facie risk passes with _____
a) property of ownership
b) computed agreement
c) verification & delivery of goods
d) payment of price

50. Reserve price is considered in ____
a) sale by sample b) sale by description
c) sale by auction d) all of the above

51. An unpaid sellers right of storage of goods in
transit can be excised only the buyer is
insolvent
a) true b) partly true c) false d) none

52. A agrees to sell B smuggled goods for Rs.
1000 per unit. The agreement is void due to
a) uncertainty b) illegality
c) impossibility d) immortality

53. Which of the following will be account in
fiduciary position
a) parent and son b) doctor and patient
c) all of the above d) none

54. Partnership agreement between persons
arise from
a) the states of person b) operation of law
c) the contract of those person
d) none of these

55. The transactions collateral to illegal
agreements is ____
a) valid
b) voidable at the option of plaintiff
c) also illegal & not enforceable by law
d) none of these

56. A sleeping partner is ____
a) not take active part in the firm
b) take only salary from the firm
c) not contribute capital to the firm
d) none of these

57. A sells to B 100 Kg. of wheat on the due date
B says to A to keep the wheat for some time.
This is a _____
a) symbolic delivery b) actual delivery
c) constructive delivery d) none

58. Counter offer is a ____
a) change in the original offer
b) rejection of original offer
c) same as original offer
d) not a offer at all

59. Offer can be withdrawn when
a) before the acceptance of offers against
the oferror
b) after the acceptance of offers against the
oferror
c) at any time
d) cannot be withdrawn

60. Future goods are the subject matter of
a) sale
b) agreement to sale
c) neither sale or agreement to sale
d) both sale & agreement to sale

61. ______ agreements are created by situation
a) written b) oral
c) void d) implied

62. Under the Indian contract act 1872, the age
of the person to enter into the contract is
a) 21 years b) 16 years
c) less than one day of 18 years
d) 1 day more than 18 years

63. Partnership is dissolved automatically in
cases of ____
a) All partners are insolvent
b) All partners expect one are insolvent
c) The subject matter becomes unlawful
d) In any of the above statements

64. A invites B to attend to his sons Birthday
party and arranged everything but B failed
then
a) Here there is no contract
b) There is no intention to create relationship
c) both of the above
d) none of the above

65. In case of _____ sale, it is subjected to be
complete at reserve price
a) Sale of sample b) Sale of description
c) Sale of auction d) Reissue of shares

66. Which of the following is under implied
authority of a partner in a firm
a) submit a dispute of firm to arbitration
b) acquire a immovable property behalf of
firm
c) open a bank account on behalf of firm in
his own name
d) participate in the business, decisions

67. Sharing of profits in a partnership firm is
a) Conclusive evidence
b) Not a conclusive evidence
c) must in firms
d) not compulsory

68. A partner in an dangerous situation can act
as a person who is in ____
a) ordinary situation
b) as an agent of the firm
c) as an major in the firm
d) all of the above

69. The implied warranty of contract of sale
a) The goods should satisfy buyer purpose
b) The right of the seller to sell the goods
c) Seller can get back his goods at any time
d) none of these

70. If the goods are perishable goods then
seller resales the goods then the buyer gets
a) good title b) partied goods
c) no title d) none

the end

CPT _June_2010_Session 1______________________________________ 1
No.1 for CA/CWA & MEC/CEC Master Minds


CPT _June_2010_Session 1______________________________________ 2
CPT June 2010 Question Paper (Based on Memory)


Part A - Accountancy
Journal

1. Discount allowed by Arun to Varun. Which is the Correct entry to be made by Arun?
a) Credit Varun A/c & Debit Discount allowed A/c b) Debit Varun A/c & Credit Discount Received A/c
c) Credit Arun A/c & Debit Discount Allowed A/c d) Debit Arun A/c & Credit Discount Received A/c

Subsidiary Books

2. Rent due for the month of March is recorded ____ in cash book
a) On receipts side b) On payments side c) As contra d) No where

Cash Book

3. When two aspects in one transaction are recorded in the cash book it self it is called ____
a) Debit entry b) Double entry c) Single entry d) Contra entry

Final Accounts

4. Salaries paid Rs.2,00,000 includes Rs.10,000 for last year, Rs.20,000 for next year and current years
outstanding salaries Rs.15,000. Amount of salaries to be debited to P & L A/c of current is ____
a) Rs.2,00,000 b) Rs.1,85,000 c) Rs.2,15,000 d) Rs.2,30,000

5. Total Debtors of a firm is Rs.48000 before deduction of bad debts and after allowing discount. Bad
debts
Rs.2000 and discount allowed Rs.100. PBD is to be created at 5%. The amount to be debited to P&L A/C
for PBD is_____
a) Rs.3000 b) Rs.2300 c) Rs.2305 d) None

6. Accounting treatment for Accrued Income ____
a) It will be recorded on assets side as a current asset in the Balance Sheet
b) It will be recorded on the liabilities side as a current liability in the Balance Sheet
c) It will be recorded on debit side of the Trading Account as an expense
d) It will be recorded on credit side of Profit & Loss A/c as an income

7. The Gross Profit of a firm is Rs.1750, Carriage inward Rs.150, Bad debts Rs.120, Proprietors personal
expenses Rs.750. Carriage outwards Rs.175, net profits is ___
a) 1455 b) 1305 c) 555 d) 705

Bills of Exchange
8. Kumar draws a bill on Rajat for Rs.50,000 and they agree to share the proceeds in the ratio of 3:2.
Kumar
got it discounted for Rs. 47,500. What will be the amount remitted to Rajat by Kumar
a) 28,500 b) 19,000 c) 30,000 d) 20,000
9. Indian Currency is a ____
a) Bill b) Promissory Note c) Cheque d) Draft
10. The Acceptor of a Bills of Exchange is the ____
a) Debtor b) Creditor c) Seller d) None

11. Bills receivable discounted is entered in
a) Journal b) Ledger c) Cash Book (Bank) d) No Where
12. A draws a bill on B on 12th May 2008 for Rs.20,000 for 3 months. What will be the due date?
a) 13th Aug 2008 b) 14th Aug 2008 c) 12th Aug 2008 d) 15th Aug 2008

CPT _June_2010_Session 1______________________________________ 3
Depreciation

13. Depletion method of depreciation is applied in case of ___
a) Intangible Assets b) Tangible Assets c) Wasting Assets d) Current Assets

14. Meaning for the entry given below
Machinery A/c Dr 4000
To Depreciation A/c 4000
a) Depreciation Provided for Year ended Rs.4000 b) Depreciation is Reversed
c) Machinery Appreciated d) None

15. ____ method of depreciation takes into account the element of interest on capital outlay and sees to
write off
the asset and the interest cost over the life of asset
a) Annuity b) Sinking fund c) Straight line d) Written down value

Rectification of Errors

16. A Cloth merchant purchased furniture and recorded it in purchase day book. It is an error of ____
a) Commission b) principle c) concept d) none

Consignment

17. X Consigned goods to Y Costing Rs.30000 at Cost plus 25%. These Goods are to be sold at Invoice
Price
Plus 10%. Y sold a part of goods for Rs.33000. What will be the Value of Stock lying with Y to be shown
by
X at the Closing of Accounts
a) Rs.8250 b) Rs.6000 c) Rs.7500 d) Rs.8000

18. X sends 400 bags to Y costing Rs.200 each to be sold at cost + 45%. X draw a bill on Y equivalent to
60%
on sale value. Then what will be the amount of bill?
a) 69,600 b) 60,000 c) 61,250 d) 63,000

Partnership Accounts

19. A, B & C were partners in a firm. For financial year 2008-09 the profits were Rs.18,000. The partners
shared
the profits in the ratio of 2:2:1. There is no partnership deed of the firm in this regard. The adjustment
entry
will be ___
a) P & L Adjustment A/c Dr. 18,000 b) P & L Adjustment A/c Dr. 18,000
To As Capital A/c 7,200 To As Capital A/c 6,000
To Bs Capital A/c 7,200 To Bs Capital A/c 6,000
To Cs Capital A/c 3,600 To Cs Capital A/c 6,000
c) As Capital A/c Dr.1,200
Bs Capital A/c Dr.1,200
To C Capital A/c 2,400 d) None of these

20. P, Q, R are partners in a firm with capitals of Rs.50,000, Rs.30,000 and 25,000 respectively sharing
profits &
Losses in the ratio of 2:2:1. General reserve Rs.15,000, Good will Rs.30,000 revaluation profit Rs.7,050 Q
is
Retiring from the firm. Amount payable to Q is ____
a) 70,820 b) 50,820 c) 25,820 d) 20,820

21. A, B, C are partners sharing profits in the ratio of 7:5:4. The profits of the firm for the year ended 31-
3-2009
were estimated as Rs.2,40,000. C died on 30th June 2008. What is share of C in profits in financial year
2008-09?
a) Rs.15,000 b) Rs.18,000 c) Rs.24,000 d) Rs.20,000

22. In the absence of Agreement, interest on Capitals of partners to be allowed is ____
a) 6% b) 8% c) 9% d) None

23. Premium paid by the partnership firm on the joint life policy of partners is
a) Debited to the Capital A/c of each partner b) Credited to the profit and loss A/c of firm
c) Credited to the Capital A/c of Partners d) Debited to the Profit And Loss A/c of Firm

CPT _June_2010_Session 1______________________________________ 4
24. Partnership firm can raise capital
a) By the issue of Equity Shares b) By the issue of Preference Shares
c) By the Issue of Non- preference Shares d) None of the above

25. In Partnership if rate of interest on loan is not given, then _______ is to be taken
a) 6% b) 5% c) 9% d) 16%

26. When any assets and liabilities are revalued?
a) On admission of a partner b) On death of a partner
c) On retirement of a partner d) All of the above

Company Accounts

27. Debenture holders are ____
a) Creditors b) Debtors c) Both d) None

28. Reserve Capital mean ___
a) Part of subscribed but uncalled capital b) Accumulated profits
c) A part of capital reserve d) A part of capital redemption reserves

29. Z & Co forfeited 100 shares of Rs.10 each for non payment of final call of Rs.2 each. These shares
were
reissued at Rs.9 per share. What is the amount to be transferred to capital reserve A/c?
a) Rs.700 b) Rs.800 c) Rs.900 d) Rs.1000

30. Debentures are shown under ____
a) Secured Loans b) Unsecured Loans c) Current Liabilities d) Current Assets

31. Premium on issue of shares is shown under the head ____
a) Reserves and Surplus b) Current Liabilities and Provision
c) Capital Reserve d) None of these

32. In order to arrive paid up capital, which one of the following is to be deducted?
a) Calls in advance b) Calls in arrears
c) Discount on issue of shares d) Subscribed capital

33. A Ltd. Company acquired assets worth Rs.11,25,000 from B Ltd. and issued shares of Rs.100 each
towards
consideration at a premium of 25%. How many shares shall be issued?
a) 9,000 shares b) 7,500 shares c) 10,000 shares d) None

34. Redeemable preference shares must be redeemed with in ____ years
a) 24 b) 30 c) 35 d) 20

35. According to Companies Act 1956 Balance Sheet is prepared as per
a) Part II schedule VI b) Part I schedule VI
c) Part II schedule VII d) Part I schedule VII

36. Capital Reserve comes under
a) Part of uncalled capital b) CRR c) Accumulated profits d) Reserve capital

37. A Company issues shares at Rs.10 per share and forfeited shares on which Rs.8 each had been paid
up.
Minimum price of re-issue is ___
a) 10 b) 8 c) 5 d) 2

Inventory Valuation

38. The cost of inventory on April 20th was computed as Rs.5,25,000. The purchase of goods from April
1st to
20th were 3,25,000 which include cash purchase of Rs.75,000 and goods costing Rs.50,000 not yet
received.
The value of closing stock for year ending 31st March would be ____
a) 2,00,000 b) 2,50,000 c) 3,25,000 d) 5,00,000

39. The revised AS -2 permits the use of which of the following methods for computation of cost of
inventory?
a) Lifo b) Standard cost method c) Fifo d) None

CPT _June_2010_Session 1______________________________________ 5
40. If the opening stock is overstated by Rs.10,000 and closing stock is understated by Rs.15,000, the
effect on
profit will be ____
a) Understated by Rs.5,000 b) Understated by Rs.25,000
c) Overstated by Rs.25,000 d) Overstated by Rs.5,000

41. If the closing inventory represents the latest purchases, the method of valuation followed is ____
a) LIFO b) FIFO c) Straight line d) None of these

42. Calculate Closing Stock
Opening stock 60000
Purchases 90000
Sales 120000
Gross Profit on Cost 33 1/3%
Cost of goods lost in Rs.15000. Insurance Claim Received Rs.5000
a) Rs.40,000 b) Rs.45,000 c) Rs.55,000 d) Rs.60,000

43. Mr. A Sold Goods for Rs.50,000 which includes a sale to a customer for Rs.5,500 at cost + 10%, but
these
goods were still in godown at the risk of buyer. The Total Sales to be recorded is ____
a) Rs.50,000 b) Rs.50,500 c) Rs.49,450 d) Rs.49,400

44. The success of perpetual inventory system depends upon
a) Placing order for materials an regular intervals
b) Exercising control over the issue of materials
c) Recording the receipts and issue of materials immediately after transaction
d) Recording the receipt of material at fixed interval

Goods sent on Sale or Return Basis

45. Mr. X send the goods costing Rs.55,000 to Mr. Y on approval basis. Goods costing Rs.5,000 were
damaged
during transit. X claims Rs.3,000 from insurance company. Then cost of goods sent on approval to Y will
be:
a) Rs.57,000 b) Rs.53,000 c) Rs.52,000 d) Rs.50,000

Accounting an Introduction

46. According to which concept, the proprietor pays interest on drawings
a) Accrual concept b) Conservatism concept
c) Entity concept d) Dual Aspect concept

47. Cost concept basically recognises ____
a) Fair Market value b) Historical cost c) Realisable value d) Replacement cost

48. If the Market value of closing Inventory is less than its cost price, inventory will he shown at ____
a) Marketable value b) Fair Market value c) Both d) none

49. The Market price of good declined than the cost price. Then the concept that plays a key role is ____
a) Materiality b) Going concern concept c) Realization d) Consistency

50. Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000
and
investments are Rs.4,00,000. Then the current liabilities recorded in balance sheet will be
a) 2,00,000 b) 1,00,000 c) 3,00,000 d) 4,00,000

Contingent Assets & Liabilities

51. Which of the following is not a contingent liability
a) Gaurantee given to a creditor
b) Claims against the firm not acknowledged as debt
c) Undisputed claim payable to creditor d) None of these

CPT _June_2010_Session 1______________________________________ 6
Part B - M.Law
Meaning & Nature of Contract

52. Drawing Amount from ATM is _____
a) Tacit Contract b) Executed Contract c) Executory Contract d) Formal Contract

53. A Contract is _____
a) An agreement between a Indian National & Alien enemy
b) An agreement enforces by parties themselves
c) An agreement enforceable by law d) Not an agreement by law
54. X says Y to repair his watch. Here arises ___
a) Express Contract b) Implied Contract c) Tacit Contract d) Quasi Contract

Offer and Acceptance

55. A Price list belongs to the category of ___
a) A offer b) Invitation to offer c) Answer to queries d) Acceptance to offer

Legal Object & Consideration

56. According to Contract Act, consideration must be _____
a) real b) adequate c) illusory d) none of the above

Capacity to Contract

57. A minor enters into a contract for the purchase of certain necessaries. In such a case:
a) he is not personally liable to pay. b) he is liable to pay.
c) his estate is liable to pay. d) his guardian is liable to pay.

58. X is a lunatic. He can enter into a contract when he is______
a) Under medical treatment b) Of sound mind
c) Of unsound mind d) None of these

59. According to Indian Contract Act 1872, a person can enter into contract
a) After attaining majority b) Of Sound Mind
c) Not disqualified by law d) All of the above

Free Consent

60. A entered into a contract with B. B obtained As consent by fraud here contract is ______
a) Valid b) Void c) Voidable d) none of the above

61. Mistake of fact is ____
a) Illegal b) Valid c) Void d) Void abinitio

62. Mistake of Indian Law _____
a) Valid b) Void c) Voidable d) None of the above

Void Agreements & Quasi Contracts

63. A says to B that he will give Rs.500 to him if it rains and if does not rain B will give him Rs.500. Which
type
of contract is this _____
a) Wagering Contract b) Contingent Contract c) Valid Contract d) Quasi Contract

64. A Contingent contract is a / an
a) Conditional Contract b) Uncertain Contract c) unenforce by law d) Absolute Contract

Discharge of Contract

65. The original contract comes do an end when ____
a) Novation of Contract b) Alteration of Contract c) Rescission of Contract d) All of the above

CPT _June_2010_Session 1______________________________________ 7
Indian Partnership Act, 1932

66. A Partnership is formed for a specific purpose but also even continue after that purpose. This is
called as _
a) Particular Partnership b) Specific Partnership c) Partnership at will d) None of the above

67. In absence of an agreement, the interest allowed on capital of the partners is___
a) 8% b) 6% c) 5% d) None of these

68. If a partnership exceeds the minimum number of persons then that associate becomes _____
a) Illegal b) legal c) unlawful d) company

69. Johnson is employed as a Finance controller in a Partnership Firm ABC brothers. Johnson is
entitled to a
monthly salary of Rs.2,00,000 & 20% of the profits of the firm only if profits of the firm exceeds Rs.1
crore in
that year. Johnson shall be called _____
a) Only a partner in a firm b) Only an employee of a firm
c) An employee and partner of a firm d) None of the above

70. To open Joint Bank A/c by a partner on his own name on behalf of firm is not a /an____
a) Implied Authority b) Partnership deed
c) Indian Contract Act, 1872 d) None of these

71. A introduced B to C as a partner. A incurs some liability. B remains silent, he is _____
a) Dormant partners b) Partner by Holding out/ Estoppel
c) Sleeping Partner d) Sub partner

72. Mutual agency under the Indian partnership act 1932 means
a) Sharing profits of firm among the partners
b) Right of partner to act as an agent & principle of other partners
c) Mutual co operation among partners d) Joint liability of all partners

73. Under partnership act, In the absence of agreement, the profits should be shared in the ratio
a) Capital contributed by partners b) Equally
c) Any ratio which they like d) None of these

74. A partnership of banking business is valid, when the number of partners exceeds
a) 5, but does not exceed 10 b) 10, but does not exceed 20
c) 20, but does not exceed 40 d) 20, but does not exceed 50

75. Partnership starts with ______
a) A major & 2 minors b) two minors c) A major & minor d) two majors

76. When assets and liability are revalued?
a) on admission of a partner b) on death of a partner
c) on retirement of a partner d) all of the above

77. When reconstitution of firm happens ____
a) Partner retires b) Partner admits c) Partner dies d) All of the above

The Sale of Goods Act, 1930

78. A Sale is a Right in Rem
a) Yes b) No c) Discretion of court d) None of these

79. Right of seller against buyer is called
a) Right in personam b) Right in Rem c) Both d) None of these

80. Unpaid seller has a right of ____
a) Right of lien b) Right of stoppage of goods c) to resell the goods d) All of the above

81. Risk in sale of goods follows
a) Only when delivery of goods to agent of buyer takes place
b) Only when property of goods passes to the buyer
c) Only when price is paid d) All of these

CPT _June_2010_Session 1______________________________________ 8
82. Goods under sale of goods act include ____
a) Equity shares b) Trees c) Gross d) All of the above

83. A warranty is a stipulation which is _____ to the main purpose of a contract
a) Collateral b) optional c) contingent d) Essential

84. Under sale of goods act 1930, the essential element of sale is
a) Price b) Exchange of goods c) possession d) None of the above
The end

Key - Part A ACCOUNTS

1. A 2. D 3. D 4. B 5. B
6. A 7. A 8. B 9. B 10. A
11. C 12. B 13. C 14. B 15. A
16. B 17. B 18. A 19. C 20. B
21. A 22. D 23. D 24. D 25. A
26. D 27. A 28. A 29. A 30. A
31. A 32. B 33. A 34. D 35. B
36. C 37. D 38. B 39. C 40. B
41. B 42. B 43. A 44. C 45. D
46. C 47. B 48. A 49. C 50. B
51. C

Part B - M.LAW
52. A 53. C 54. A 55. B 56. A
57. C 58. B 59. D 60. C 61. C
62. A 63. A 64. B 65. D 66. C
67. D 68. A 69. B 70. A 71. B
72. B 73. B 74. A 75. D 76. D
77. D 78. A 79. A 80. D 81. B
82. D 83. A 84. A 85. 86.

CPT _June_2011_Session 1___________________________________________ 1
No.1 for CA/CWA & MEC/CEC MASTER MINDS


CPT _June_2011_Session 1___________________________________________ 2
Ph: 0863 22 42 355 www.gntmasterminds.com



Part A Fundamentals of Accounting
1. Which method of depreciation is approved as
per the income tax rules?
a) Sinking fund method
b) Written Down Value Method
c) Annuity Method d) None of the above

2. Capital A/c is a _______ A/c.
a) Personal b) Real
c) Nominal d) None

3. Cash A/c is a ________ A/c.
a) Personal b) Real c) Nominal d) None
4. Which is not only a subsidiary book, but also
a principal book?
a) Cash book b) Sales book
c) Purchase book d) Bills receivable book

5. The principle Debit the receiver and credit
the giver is related to_____
a) Personal a/c b) Real a/c
c) Nominal a/c d) None

6. If shares are forfeited, Share Capital a/c is
debited with ________
a) Called up face value b) Face value
c) Paid up face value d) none of these

7. Wages paid for erection of machinery is
debited to _____
a) Machinery A/c b) Wages A/c
c) Cash A/c d) None of these

8. Share Premium A/c appears in the Balance
Sheet under the heading.
a) Current liabilities b) Reserves & Surplus
c) Miscellaneous expenditure
d) None of the above

9. The goods or cash taken by the proprietor for
his personal use will be debited to _____
a) Expenditure a/c b) Debtors a/c
c) Drawings a/c d) None of these

10. Interest on drawings is a ___ to the business
a) Expenditure b) Gain
c) Liability d) Loss

11. If a contingent liability becomes probable, it
has to be:
a) Shown in notes on accounts
b) Provided in the books of accounts
c) Ignored and no entry will be passed
d) Shown in directors report
12. Capital work in progress is shown in the
balance sheet under _____
a) Share capital b) Current Assets
c) Fixed Assets d) Current Liabilities
13. Which of the following statements is correct?
a) Goodwill is a fictitious asset
b) Patents are intangible asset
c) Debtors are current liability

14. ________ is allowed by the consignor to the
consignee to put hard work while introducing
a new product in the market.
a) Commission on total sales
b) Del-credere commission
c) Over riding commission d) Extra salary

15. The company decided to redeem 5000
redeemable preference shares of Rs.100
each. The company issued 2000 equity
shares of Rs.100 each. The amount to be
transferred to CRR is _____.
a) Rs.2,00,000 b) Rs.3,00,000
c) Rs.1,50,000 d) Rs.5,00,000

16. Which account should be credited in case of
shares issued at premium?
a) Share capital account
b) Securities premium A/c
c) Share forfeiture A/c d) Both (a) & (b)
17. Income tax demand disputed will be _____
a) Contingent liability b) Current Liability
c) Possible Asset d) Possible Liability

18. Goods worth Rs.100 bought from Narayan
have remained unrecorded. What will be the
effect of the error on trial balance.
a) No effect
b) Trial Balance Credit total will be short by
Rs.100
c) Trial Balance Debit total will be short by
Rs.100
d) Trial Balance Credit total will be increased
by Rs.200

19. Credit balance in the ledger will be either
_____ or ____
a) Assets, Revenue b) Expenses, Assets
c) Liabilities, Revenue
d) Expenses, Liabilities

CPT _June_2011_Session 1___________________________________________ 3
20. As per the Matching concept,
Revenue ? = Profit
a) Expenses b) Liabilities
c) Losses d) Assets

21. Sales Gross Profit = ________
a) Cost of goods sold b) Net sales
c) Gross Sales d) Liabilities

22. Which one of the following methods of
Inventory Valuation matches current cost
with Current Revenues?
a) Last in first out b) First in First Out
c) Simple Average d) Weighted Average

23. The periodic total of the purchase returns
book is posted to the __ side of the Purchase
Returns A/c.
a) Credit b) Debit c) Both d) None

24. If the company has already received the
premium on issue of shares and the shares
are forfeited, then _______
a) Share premium A/c will be credited
b) Share premium A/c will be debited
c) Share premium A/c will have no effect
d) None of these

25. When shares are issued to promoters for the
services offered by them ____ A/c is debited.
a) Preliminary Expenses b) Goodwill
c) Asset d) Share capital

26. A & B are the partners in a firm; C is admitted
as a partner with guarantee of profit 10,000.
Profit for the year 2009-10 is Rs.1,20,000. A,
B & C share profits and losses in the ratio of
3:2:1. Share of C in the profit is:
a) 10,000 b) 20,000 c) 30,000 d) 40,000

27. Where in a partnership firm the partners are
entitled to interest on their capitals, such
interest is payable ______
a) Only out of partners capitals
b) Only out of cash brought in by a new
partner towards goodwill
c) Only out of profits of the firm d) None

28. The shares of a company can be issued at:
a) Par b) Premium
c) Discount d) All
29. Immediately after purchasing a truck of
Rs.50,000. Rs.1000 was spent for painting
the truck for the purpose of advertisement of
a product. Rs.1000 spent for painting is ____
a) Capital Expenditure
b) Revenue Expenditure
c) Differed Revenue Expenditure d) None
30. Capital reserves are created out of:
a) Capital Profits b) Profits in balance
c) Revenue profits d) None

31. Discount on issue of shares is shown in the
Balance Sheet under the heading
a) Reserve & Surplus b) Misc. Expenditure
c) Current Liabilities d) None of the above

32. When there is no agreement, interest on loan
taken from a partner is allowed at ___ p.a.
a) 6% b) 12% c) 8% d) None

33. Sagar Ltd. installed a plant for Rs.5,00,000 on
01-01-2002. They were charging depreciation
on 31st December every year on Straight Line
Basis taking useful life of the machine to be
10 years. On 31st December 2008 they found
that the plant became obsolete and it could
fetch only 50,000. Loss on the sale of the
plant will be:
a) 1,00,000 b) 1,50,000
c) 50,000 d) 3,50,000

34. Which of the following is a Real A/c?
a) Building A/c b) Capital A/c
c) Shyam A/c d) Rent A/c

35. Dishonour of a cheque deposited in bank is
recorded in:
a) Returns inward book
b) Bills receivable book
c) Cash Book d) Sales book

36. If a firm makes a number of promissory notes
usually, it would be convenient to record the
transactions in
a) Bills Receivable Book
b) Bills Payable Book
c) Journal Proper d) Sales Book

37. Valuation of stock in accounting follows the
principle of cost price or ____ which ever is
lower.
a) Market Price b) Average Price
c) Net realizable Value d) None of these.

38. Minimum Capital required to form a
partnership firm is:
a) 5,000 b) 50,000
c) 1,00,000 d) Not limited
39. C of Chennai sent out 5000 boxes to D of
Delhi costing Rs.20 each. Expenses of C
were Rs.5000 4/5th of the goods were sold by
D at Rs.25/- each. The profit on consignment
would be:
a) 16,000 b) 20,000 c) 15,000 d) 5,000

CPT _June_2011_Session 1___________________________________________ 4

40. C a dealer in washing machine have a stock
of 4 machines as follows:
Particulars Mod A Mod B Mod C Mod D
Cost 15,000 20,000 22,500 30,000
Net realizable
value
13,500 22,000 20,500 32,500

Calculate the value of Inventory.
a) 88,500 b) 92,000 c) 87,500 d) 84,000

41. To constitute a partnership, the agreement
between parties must be
a) In writing b) An oral Agreement
c) Either (a) or (b) d) neither (a) nor (b)

42. For mutual accommodation, A accepted a bill
of 2 months for 10,000 drawn on him by B. B
Discounted the bill at 12% p.a. Out of the
proceeds A receives Rs.____
a) 9800 b) 8100 c) 4900 d) 5000

43. On the death of partner, profit (or) loss on
revalution of assets and liabilities is
transferred to the capital accounts of partners
as per ______
a) Sacrificing Ratio b) Gaining ratio
c) New profit sharing ratio
d) Old profit sharing ratio

44. When the drawer endorses the Bill and the
bill is dishonored, which account will be
debited by Endorsee.
a) Drawer b) Endorser
c) Endorsee d) None

45. When bonus shares are issued
a) Working capital is issued
b) Fixed capital is issued
c) Dividend is paid
d) Reserves and surplus are capitalized

46. Which of the following factors does not effect
the good will
a) Efficiency of management
b) Nature of Business
c) Technical know how d) none of these
47. If a machine is sold for Rs.90,000 whose
original cost is Rs. 1,00,000 and the W.D.V is
40,000. What amount will be credited to profit
and loss account.
a) Loss 10,000 b) Profit 10,000
c) Loss 50,000 d) Profit 50,000
48. Amount Received from bank as a medium
term loan is:
a) Capital expense b) Revenue expense
c) Capital receipt d) Revenue receipt

49. Under the Companies Act what is the
percentage of minimum subscription, to
make the issue successful.
a) 50% b) 75% c) 90% d) 100%

50. When repairs and maintenance work of
machine is said to increase, which method of
depreciation is used
a) Sinking fund b) Annuity
c) St. Line d) Diminishing balance

51. Calls in advance are recorded under which
heading of the balance sheet?
a) Share capital
b) Reserves & Surplus
c) Miscellaneous Expenditure d) none

52. Mr. X is admitted as a partner with capital of
Rs.1,00,000 and Rs.25,000 as goodwill for
his 1/3rd share. The old partners A & B will
sacrifice in the ratio of 2:3. What amount A
will receive as his share of goodwill.
a) 15,000 b) 20,000 c) 10,000 d) 5,000

53. When the excess money is received over par
value, which account should be credited?
a) Calls In advance b) Share capital
c) Revenue Capital d) Securities premium

54. A, B & C are sharing profits equally. They
agreed to change their profit sharing ratio as
4:3:2. The amount of goodwill raised is Rs.
90,000. The goodwill is shared by
a) A & B b) A & C c) C & B d) None

55. On 01.08.2009 Anand draws a bill for 30
days after sight. Date of acceptance is
08.08.2009. Then the due date will be:
a) 03-09-2009 b) 04-09-2009
c) 10-09-2009 d) 07-09-2009

56. Provision for bad and doubtful debts should
be deducted in balance sheet from
a) Capital b) Cash
c) Debtors d) Creditors

57. If partnership is dissolved due to retirement
of a partner, which value should be taken
into consideration for JLP
a) Maturity value b) Surrender value
c) premium of policy d) None

58. The firm shouldnt allot the shares until ___ is
received
a) Minimum subscription
b) Share allotment
c) share call d) share capital

CPT _June_2011_Session 1___________________________________________ 5
59. On the death of a partner the amount of JLP
should be credited to capital accounts of:
a) all partners including the deceased partner
in profit sharing ratio
b) Remaining partners in their profit sharing
ratio
c) Remaining partners equally
d) Deceased partner only
Part B Mercantile Laws

60. The dissolution of the firm can be informed to
the registrar of the firms by
a) Any of the partner before dissolution
b) Any of agent of partner before dissolution
c) Any of authorized agent elected by
partners d) Any of the above

61. Where in a partnership firm the partners are
entitled to interest on their capital balance
such interest is payable.
a) Only out of partners capital
b) Only out of cash brought in by a new
partners towards goodwill
c) Only out of profits of the firm

62. An unregistered firm can set off the claim up
to ____
a) 100 b) 10,000 c) 50,000 d) 1,000

63. Mere silence as to fraud likely to affect the
willingness of a party to enter into a contract
is not fraud unless.
a) The circumstances of the case imposed
the duty of the person to speak
b) The circumstances do not show that
silence is equivalent to speech
c) The circumstances such that silence is not
fraudulent.
d) Obligations are not imposed by the law.

64. A contract infringing the law is?
a) Valid b) Void c) Illegal d) Voidable

65. Which of the following sales is valid?
a) Sale by mercantile agent
b) Sale by one of the Joint owners
c) Sale by a person who has possession of
goods under a voidable contract but still
rescinded. d) both (a) & (b).

66. Acceptance on Telephone is complete
a) When words of acceptance are heard by
the proposer
b) When words of acceptance are spoken
c) When proposer hears the words of
acceptance & he acts upon it
d) When proposer hears the words of
acceptance & he communicates this to
offeree.

67. Who can perform the contract?
a) Promisor himself b) Promisor agent
c) Promisor representatives
d) all the above

68. A contract cannot be performed by
a) Parties to the contract
b) Agents to the parties
c) Stranger d) Promisor

69. A promise to pay a time barred debt made in
writing & signed by the debtor may be
a) Enforceable b) Not enforceable
c) Unlawful
d) Enforceable at the discretion of the court

70. An unpaid seller can exercise the right of
resale
a) if the goods are of durable nature
b) if the goods are of perishable
c) with the consent of buyer
d) without the consent of buyer

71. Accepting lesser amount that what owes
agreed upon in discharge of full
consideration is called
a) Remission b) Alteration
c) Merger d) Recession

72. Which of the following is not the duty of a
partner of a firm?
a) to indemnify the partner for loss caused by
fraud
b) to indemnify the firm for loss cause by
fraud
c) To carry on business of the firm to the
greatest common advantage
d) to render true accounts

73. In case of misrepresentation the party who
has suffered, can avoid the contract even if
he had the means of discovering the truth
with ordinary diligence.
a) true b) partly true
c) totally false d) None of the above

74. Under the sale of goods act, 1930 the
implied condition that the goods are of
merchantable quality ____ where the buyer
has actually examined the goods
a) is not applicable b) is presumed
c) is applicable d) exists

CPT _June_2011_Session 1___________________________________________ 6

75. Who of the following can be a party to enter
into contract?
a) A convict undergoing sentence
b) A joint stock company
c) A minor d) All of the above

76. Where performance of contract depends
upon personal skill, the contract is
discharged on ____
a) Promisors illness
b) Promisors incapacity to perform
c) Change of law d) All of the above

77. Reciprocal promises consists of promises by
a) Both of the parties b) Only of the promisor
c) Only of the promise
d) More than two parties

78. In contract of sale, the goods destroyed after
delivery thus risk bears by
a) The buyer b) The seller
c) Partly by the seller or buyer
d) Neither buyer Nor seller

79. An agreement to interfere in the legal
proceedings before a court is:
a) Valid b) Void
c) Enforceable under law d) none of these

80. Where the goods are delivered to a carrier or
wharfinger for the purpose of transmission to
the buyer, the delivery is
a) Invalid & effective b) Valid & effective
c) Conditional d) None

81. The contract is discharged by _______
a) Performance b) Lapse of time
c) Mutual Agreement d) All

82. A contract cannot be Enforced by
a) Parties of contract b) Agent of parties
c) A stranger d) A Promisor

83. Impossibility arising subsequent to entering
in to a contract is called____
a) Supervening impossibility
b) Irregular impossibility
c) Perpetual impossibility d) None

84. ______ is included in the implied authority of
a partner.
a) To submit to arbitration a dispute relating
to the firms business
b) To pledge a security goods of the firm for
obtaining loan for the firm
c) To enter into another partnership on behalf
of the firm
d) To open a bank account on behalf of the
firm in the partner own name
85. In an agreement where the subject matter is
essentially different from what the parties
thought it to be, the agreement is:
a) Void b) Voidable c) Valid d) Illegal

86. Suman who is 17 years old entered into a
contract for 50 Lakhs he could not honour the
contract and ended up breaching the same.
Which one of the following statements is correct
as regards the above situation?
a) Action can be taken against suman for
breach of contract
b) No action can be taken against suman for
breach of contract
c) Taking action against suman depends on
terms of contract.
d) Specific performance can be insisted
through judicial proceedings

87. To constitute a partnership, the agreement
must be in:
a) In writing b) In Oral
c) Either in written or in Oral
d) Neither in writing Nor in Oral

88. A person who wants to inspect the register of
firms maintained by registrar is required to
pay the fee as prescribed by law
a) True b) False
c) Partly True d) None of these

89. Impossibility arising subsequently to
formation of a contract is
a) Pre-contractual contract
b) Supervening impossibility
c) Initial Impossibility d) None of these

90. Jus in Personam is Right Against
a) Specific person b) Specific thing
c) Public at large d) None

91. A person who is not a party to a partnership
agreement and conducts (or) represents
himself as a partner in a firm is called
a) Sub partner b) Sleeping Partner
c) Partner by estoppels d) A share holder

92. In a contract of sale, under the sale of goods
act 1930, physical delivery of goods is not an
essential element.
a) False b) Partly True
c) True d) None

93. _____ is one sided contract in which only
one party has to perform his part of promise
a) Unilateral contract b) Illegal
c) Bilateral d) enforceable

THE END

CPT _June_2011_Session 1___________________________________________ 7
Key
Part A FUNDAMENTALS OF ACCOUNTING
1. B 2. A 3. B 4. A 5. A
6. A 7. A 8. B 9. C 10. B
11. B 12. C 13. B 14. C 15. B
16. D 17. A 18. A 19. C 20. A
21. A 22. A 23. A 24. C 25. B
26. B 27. C 28. D 29. B 30. A
31. B 32. A 33. A 34. A 35. C
36. B 37. C 38. D 39. A 40. D
41. C 42. C 43. D 44. B 45. D
46. D 47. D 48. C 49. C 50. D
51. A 52. C 53. D 54. B 55. C
56. C 57. B 58. A 59. A

Part B MERCANTILE LAWS
60. D 61. C 62. A 63. A 64. B
65. D 66. A 67. D 68. C 69. A
70. B 71. A 72. A 73. C 74. B
75. B 76. D 77. A 78. A 79. B
80. B 81. D 82. C 83. A 84. B
85. A 86. B 87. C 88. A 89. B
90. A 91. C 92. C 93. A

FOR IPCC ADMISSIONS CONTACT
9885125025/26/03
IPCC coaching is available at Guntur, Rajahmundry,
Vizag and Kurnool. New batches will commence from
June 27
Full day and half day batches are also available.

CPT _June_2011_Session 1___________________________________________ 8

CPT _June_2011_Session 2_____________________________________________ 1


CPT _June_2011_Session 2_____________________________________________ 2

2nd Session Marks: 100 Marks Time: 2 hrs.

Part A General Economics

1. Pradhanmantri Bharat Jodo Pariyojna is
related to _____
a) Communications b) Social Integration
c) Linking of Rivers
d) Development of Highways

2. Mixed Economy means___________
a) Co-existence of both public and private
sector
b) Only Public Sector exists
c) Only Private Sector exists d) None

3. During inflation which type of monetary policy
is followed
a) Cheap money policy
b) Dear Money Policy
c) Neutral money policy d) None of these

4. G.N.P MP minus ______ is equal to G.D.P MP.
a) Subsidies b) Direct Taxes
c) Depreciation
d) Net factor income from abroad

5. Which organization has facilitated the
process of Globalisation.
a) UNO b) WHO c) WTO d) None

6. Special Drawing Rights (SDR) was first
introduced in the year ______
a) 1959 b) 1969 c) 1979 d) 1989

7. What would be the cross elasticity of demand
for complementary goods.
a) Positive b) Negative c) Zero d) None

8. Before financial reforms the banking sector
characterized by the following features
except
a) High Revenue Requirements
b) Quantitative credit restrictions
c) Administered interest rate structure
d) keeping very less lendable resource for
the priority sector.

9. Green Revolution is also known as ____
a) Wheat revolution b) Rice Revolution
c) Maize Revolution d) Forest Revolution

10. Which among the following factors caused
demand pull inflation.
a) Decrease in government expenditure
b) Decrease in Direct taxes
c) Decrease in wealth
d) Decrease in money supply

11. In the long run _____
a) All factors are fixed
b) All factors are variable
c) No factor is variable d) None

12. The price of apples falls by 5% and quantity
demanded rises by 6%, this means ______
demand
a) Elastic b) Perfectly elastic
c) Inelastic d) Zero elastic

13. Which of the following is the best example of
agreement between oligopolists.
a) OPEC b) WTO c) SAARC d) GATT

14. Globalization and Liberalisation are ______
to each other.
a) Complementaries b) Competitive
c) Substitutes d) None

15. The Oligopoly market structure having
identical products is _______
a) Pure Oligopoly b) Imperfect
c) price Leader d) Collusive

16. The monopolist usually fixes the price of his
product range when the elasticity of demand
is ______
a) < 1 b) > 1 c) 1 d) none

17. Which state has maximum percentage of
schedule caste population_______
a) Uttar Pradesh b) Madhya Pradesh
c) Punjab d) Karnataka

18. SEZ came into force in ________
a) 2004 b) 2006 c) 2005 d) 2000

19.
Output 0 1 2 3
TC 300 1000 1500 3000
Find out AFC at 3 units of output
a) 100 b) 200 c) 250 d) 350

20. When TU is maximum then MU will be ___
a) zero b) Negative
c) Positive d) Contrast

CPT _June_2011_Session 2_____________________________________________ 3
21. The value of 1$ which is Rs. 49, now
changed to Rs. 39 it indicates the value of
Rupee is ______
a) Devaluation b) Appreciated
c) Depreciated d) None

22. Who was the Chairman of planning
commission working group that has
suggested the shift of whole sale price index
base year from 1993-94 to 1999-2000.
a) C. Ranga Rajan b) Prof. Abhijit sen
c) Prof. A.M.Khusrou d) Prof. Janakiraman

23. Which of the following is studied in micro
economics
a) Factor pricing b) Product pricing
c) Both (a) and (b) d) None

24. Which of the following is studied in Macro
Economics
a) National Income
b) Balance of payments
c) per capita income d) all of these

25. Contraction of Demand is the result of ____
a) Decrease in number of consumers
b) Increase in price
c) Increase in price of related goods
d) Decrease in the income of consumers.

26. _____ is not a U shaped curve
a) AFC b) AVC c) ATC d) MC

27. Excise duty is levied on ________
a) Services b) Sales
c) Production d) Both (b) & (c)

28. About _________ percent of Indias External
assistance has been in the form of loans.
a) 40 b) 90 c) 15 d) 35

29. Bank rate refers to ______
a) The rate at which banks give loans to
customers
b) The rate at which banks give loans to RBI
c) The rate at which RBI discounts the Bills
d) None of these

30. The objectives of monetary policy are ____
a) Price stability
b) Exchange rate stability
c) Employment generation d) All the above

31. A perfectly competitive firm has ___ demand.
a) Perfectly Elastic b) Imperfectly Elastic
c) Relatively Elastic d) Relatively inelastic

32. Which state has highest MMR________
a) Madhya Pradesh b) Uttar Pradesh
c) Himachal Pradesh d) Gujarat
33. Which state has lowest infant Mortality Rate
a) Tamilnadu b) Kerala
c) Goa d) Himachal Pradesh

34. Public sector in India suffers from _____
a) Political Interference b) Over staffing
c) lack of talented personal d) All the above

35. In order to measure inequalities of income
and wealth which of the following is generally
used.
a) HDI b) Gini index
c) Per capita income d) National Income

36. GNP at factor cost minus depreciation is
equal to ________
a) NNPFC b) NDPFC
c) GDPFC d) NNPMP

37. Who among the following has considered
economics only as a positive science
a) A.Marshall b) L.Robbins
c) Adam Smith d) A.C.Pigou

38. When people move from one job to another
job (or) in between the jobs, the
unemployment thus results in
a) Frictional b) Voluntary
c) Cyclical d) Disguised

39. Iron & Steel Industries come under
a) Capital goods industries
b) Basic good industries
c) Both (a) & (b) d) None of these

40. Under which of the following tax system,
heavy tax imposed on the lower section of
society.
a) Digressive b) Progressive
c) Regressive d) Proportional

41. Deflation has a side effect of:
i) Increase in unemployment
ii) Increase in Demand
iii) Economic depression
iv) Increase in individual expenditure

Which are correct?
a) (i) & (ii) b) (ii) & (iv)
c) (i) & (iii) d) All of the above

42. Calculate AFC at 2 units from following table
Output 0 1 2
Total cost 580 695 850

a) 105 b) 235 c) 180 d) 290

CPT _June_2011_Session 2_____________________________________________ 4

Part B - Quantitative Aptitude

43. If n = M! then
log n
1 ...... log n
1
log n
1
log n
1
2 3 4 m
+ + +
a) 1 b) 0 c) 2 d) 1

44. If ( ) ( ) ( ) =
+
=

= ,then fog x
1 x
x ,g x
1 x
x f x
2 2 __
a) x b) x c) f(x) d) g(x)

45. Two AMs between 68 & 260 is:
a) 132 & 196 b) 130 &194
c) 70 & 258 d) None

46. If the sum of first n terms of an A.P is
2n n 2 + then the difference of its tenth & first
term is:
a) 207 b) 36 c) 90 d) 63

47. (243) (243)1/6 (243)1/36
a) 243 b) 729 c) 2187 d) 6561

48. Geometric mean of P, P2
, P3
,, Pn

where P is a positive integer.
a) ( ) n 1 P + b)

+
2
n 1
P c)

+
2
n(n 1)
P d) None

49. From the following choice, what is the
equation of a line whose x-intercept is half as
that of line 3x+4y=12 and y-intercept twice of
same.
a) 3x+8y=24 b) 8x+3y=24
c) 6x+3y=6 d) 3x+y=6

50. For x x r 0 2 + = , the roots are , such
that 3 3 + = 6 then the value of r is
a) 1/3 b) 1/3 c) 5/3 d) 5/3

51.
x 2x 8
x 4 lim 2
2
x 2 +

= K then find lim( ) 3x 4 x k
+
a) 2 b) 3 c) 5 d) 6

52. f(x) = 3
xC then f1
(1) =
a) 1/6 b) 1/6 c) 6 d) 0

53. If Y= alogx xloga e + e then
dx
dy = ____
a) a x x +a b) ax a loga a 1 x +
c) a 1 x 1 ax x.a + d) x a x +a

54. ( ) dx
x
logx
3
2 x

a) logx X C
3
x3
+ + b)
( ) C
3
logx 3
+
c) ( ) C
3
log logx
+ d) ( ) C
3
logx
3 x
+

55. If f1
(x) = 3
2
x
2 3x and f(1) = 0 then f (x) = __
a) 2
x
1
x 2
3 + b) 2
3
x
1
x +
c) 2
3
x
1
x d) 2
x
1
x 2
3 + +

56. ( ) e e dx
1
1
x x

=
a) 1 b) 1 c) 2 d) 0

57. In how many ways can 15 people be seated
at two round tables with 7 seats and 8 seats
respectively.
a) 8!
15!
b) 7! 8!
c) 8
15C 6! 7! d) 2. 7
15C 6! 7!

58.
5y 3x
5x 3y

=
4
3 then x : y
a) 27:29 b) 29:27 c) 3:1 d) 1:3

59. If the difference b/w the compound interest &
simple interest of a certain sum of money is
Rs.72 at 12% p.a. per two year. Find the sum
(in Rs.)
a) 6000 b) 5000 c) 5500 d) 6500

60. If S.I. on a sum at 6% for 7 years is equal to
the simple interest on another sum of money
for 9 years at 10%. Then the two sums are in
the ratio.
a) 2:15 b) 7:15 c) 15:7 d) 2:7

61. The error made by a clerk in calculating
simple interest for 5 months @ 6.5% and
compound interest for 6 months @ 5.5%
calculated half yearly is 25.40. Find the sum?
a) 69,960 b) 90,690 c) 60,690 d) 90,660

62. If P (AB) = P (A) then P (A B) is equal
to:
a) P(A) P(B) b) P(A)+P(B)
c) 0 d) P(B)

63. A team of 4 is to be selected from 6 boys and
5 girls, find the probability that it includes
exactly 2 girls:
a) 2/5 b) 1/2 c) 5/11 d) 2/4

CPT _June_2011_Session 2_____________________________________________ 5
64. A bag contains 5 red, 4 blue and M green
balls if the probability of getting both the balls
green, when two balls are selected at
random is 1/7, find M
a) 5 b) 4 c) 9 d) 6

65. The probability that a girl student gets
scholarship is 0.6 and that of a boy is 0.8,
then probability that at least one gets the
scholarship is:
a) 0.48 b) 0.92 c) 0.08 d) None

66. In a binomial distribution mean is K times the
variance then what is the value of K
a) P b) P
1 c) 1-P d)
1 P
1

67. A coin is tossed 5 times, Probability of getting
head exactly 3 times is:
a)
16
5 b) 32
1 c) 32
3 d) None

68. For a poisson variate the variance is 3 then
the S.D is?
a) =3 b) = 3 c) 9 d) none

69. If the points of inflexion of a normal curve are
6 & 14 respectively. Then standard deviation
is:
a) 4 b) 8 c) 16 d) 32

70. If x ~N ( ) 3,36 and y ~N ( ) 5,64 then x + y ~
(8,A) the value of A is_________
a) 100 b) 10 c) 64 d) 36

71. The average of 5 quantities is 6 the average
of 3 of them is 8 what is the average of the
remaining quantity.
a) 4 b) 5 c) 3 d) 3.5

72. If all the observations are increased by 6
then
a) C.V would be increased
b) C.V would be decreased
c) C.V remains unchanged

73. Given variance of X and Y is 25 & 36
respectually and cov of x & Y is 8.4 then find
correlation coefficient?
a) 0.33 b) 0.28 c) 0.30 d) 0.36

74. Two judges were asked to rank 3 candidates
for their proficiency in certain job. Their
ranking were 2, 1, 3 & 3,2, 1 respectively.
The rank correlation coefficient is equal to
a) -0.5 b) -0.8 c) 0.5 d) 0.8

75. For a average data the 2 lines of regression
are given by 8x-10y+66=0 & 40x-18y=214
then the means of x & y are respectively
a) 17 & 13 b) 13 & 17
c) 13 & -17 d) -13 & 17

76. Fishers ideal index is _____
a) Median of Laspers & Paasche index
numbers
b) Arithmetic Mean of Laspers & Paasche
index numbers
c) Geometric Mean of Laspers & Paasche
index numbers
d) Harmonic Mean of Laspers & Paasche
index numbers

77. The index number of prices at a place in the
year 2008 is 225 with 2004 as base year
then:
a) There has been on an average 125%
increase in price
b) There has been on an average 225%
increase in price
c) There has been on an average 1000%
increase in price
d) There has been on an average 150%
increase in price

78. The point of intersection of two kinds of
ogives provides
a) 1st Quartile b) 2nd Quartile
c) 3rd Quartile d) Mode

79. Write the dimensions of Pie diagram Bar
diagram Cube diagram
a) 1, 2, 3 b) 3, 2, 1
c) 3, 1, 2 d) 2, 1, 3

80. In chronological order of data are classified
on basis of:
a) Attributes b) Class
c) Time d) Location

81. Consider the frequency distribution with
classes having unequal width then the
frequency density of a class is:
a) Class Length
Class frequency b) Total frequency
Class frequency
c) 100
Total frequency
Class frequency d) None

82. The SD of sampling distribution is called
a) Standard error b) Mean
c) Variance d) Mode

THE END

CPT _June_2011_Session 2_____________________________________________ 6

Key
Part A GENERAL ECONOMICS

1. D 2. A 3. B 4. D 5. C
6. B 7. B 8. D 9. A 10. B
11. B 12. A 13. A 14. A 15. A
16. B 17. C 18. B 19. A 20. A
21. B 22. B 23. C 24. D 25. B
26. A 27. C 28. B 29. C 30. D
31. A 32. A 33. B 34. D 35. B
36. A 37. B 38. A 39. B 40. C
41. C 42. D

Part - B - QUANTITATIVE APTITUDE

43. A 44. A 45. A 46. B 47. B
48. B 49. D 50. D 51. D 52. B
53. B 54. B 55. A 56. D 57. C
58. A 59. B 60. C 61. C 62. D
63. C 64. D 65. B 66. D 67. A
68. B 69. A 70. A 71. C 72. B
73. B 74. A 75. B 76. C 77. A
78. B 79. D 80. C 81. A 82. A

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June 27
Full day and half day batches are also available.

CPT _June_2011_Session 2_____________________________________________ 7

CA-CPT _Dec_2011_ Question Paper______________________________________ 1
December 2011, CA-CPT Question Paper (Based on Memory)

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Disclaimer: We have compiled this Question paper, based on the memory
of students who have appeared for CPT exam. Questions asked in the
examination may have wrong/inadequate information and/or ambiguous
language. In that case the answers provided by the institute may differ
from these ideal answers. MASTER MINDS IS NOT RESPOSIBLE FOR ANY
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1st Session
Part A Fundamentals of Accounting

1. If a company issued 1,00,000 shares of Rs.10
each in consideration of net assets of
Rs.12,00,000, an amount of Rs.2,00,000 is
credited to _____
a) Capital Reserve A/c b) Good will A/c
c) Revaluation A/c d) P & L A/c

2. If assets of Rs.60,000 are purchased and shares
of Rs.10 each are issued at a premium of 20%,
the no. of shares to be issued is _____
a) 60,000 b) 50,000 c) 6,000 d) 5,000

3. Purchases Rs.90,000
Sales Rs.80,000
Profit 20% of sales
Closing stock?
a) 10,000 b) 20,000 c) 6,000 d) 26,000

4. 5,000 units of goods costing Rs.40 each are
consigned. Carriage inward Rs.25,000. Normal
loss is 10%.
Cost of each unit of goods is:
a) 40 b) 45.50 c) 50 d) 50.50

5. If one of the cars purchased by a car dealer is
used for business purpose, instead of resale,
then it should be recorded by_____
a) Dr Drawing A/c & Cr Purchases A/c
b) Dr Office Expenses A/c & Cr Motor Car A/c
c) Dr Motor Car A/c & Cr Purchases A/c
d) Dr Motor Car & Cr Sales A/c

6. Insurance premium paid by a firm on the life
insurance policy of the partners will be ______
a) Debited to Capital A/cs of partners
b) Credited to Partners Capital A/cs
c) Debited to Profit and Loss A/c
d) Credited to Profit and Loss A/c

7. If wages are paid for construction of business
premises ______ A/c is credited and _____ A/c
is debited.
a) Wages, Cash b) Premises, Cash
c) Cash, Wages d) Cash, Premises
8. If depreciation is excess charged by Rs.500 and
closing stock is understated by Rs.500, the net
profit will be _____ due to these errors
a) Understated by Rs.500
b) Understated by Rs.1000
c) Overstated by Rs.1000 d) No effect

9. After re-issue of forfeited shares, the profit
remaining in the Share forfeiture A/c is
transferred to_____
a) Profit & Loss A/c b) Share Capital A/c
c) General Reserve A/c d) Capital Reserve A/c

10. The revenue for transaction of consignment
sale is recognized.
a) When goods are sold to customers by
consignee.
b) When goods are sent to consignee
c) When advance against delivery is received
by consignor d) When consignor
received the payment from consignee

11. Rent due for the month of March will appear
in the cash book _______
a) On the Receipts side
b) On the payments side
c) As Contra entry d) No where

12. Debit notes issued are used to prepare _____
a) Sales Returns Book
b) Purchase Returns Book
c) Journal Proper d) Purchases Book

13. When shares are issued for purchase of assets,
____ is credited.
a) Vendors A/c b) Assets A/c
c) Share Capital A/c d) Bank A/c

14. Liability for bill discounted is a______
a) Short term liability b) Long term liability
c) Current liability d) Contingent liability

15. P sold goods to Q for Rs. 2,00,000. Q paid cash
Rs.60,000, P allowed a discount of 2% on the
balance. What is the amount of the bill drawn
by P on Q.
a) 1,96,000 b) 1,37,200
c) 1,40,000 d) 1,36,000

16. A partnership firm can raise its capital.
a) By issue of cumulative preference shares
b) By issue of participating preference shares
c) By issue of Non convertible preference
shares d) None of the above.

17. A machinery was sold for Rs.30,000 on credit.
In which subsidiary book this transaction
should be recorded?
a) Sales Book b) Cash Book
c) Journal Proper d) No entry is required.

18. The debts written off as bad, subsequently
collected by the proprietor and retained by
him for his personal use. What is the
accounting treatment for this transaction?
a) Debit Drawings A/c & Credit Debtors A/c
b) Debit Cash A/c & Credit Bad debts
recovered A/c
c) Simply ignore the Transaction
d) Debit Drawings A/c & Credit Bad debts
recovered A/c

19. Mr. A purchased a car on 1.6.10 for
Rs.5,60,000 and incurred Rs.25,000 for
registration. He paid Rs.10,000 for insurance
and Rs.1,500 for petrol. What amount should
be debited to Car A/c.
a) 5,60,000 b) 5,96,000
c) 5,95,000 d) 5,85,000

20. Balance in Share Forfeiture A/c is shown in the
Balance Sheet under the head.
a) Share Capital b) Reserves & Surplus
c) Current liabilities d) Provisions

21. Loss on issue of debentures is treated as:
a) Miscellaneous expenditure
b) Intangible assets.
c) Current Assets d) Current Liability

22. Which of the following is not a Real Account?
a) Cash A/c b) Investments A/c
c) Out standing rent A/c d) Purchases A/c

23. Interest payable on debentures is _____
a) An appropriation of profit
b) A Charge against profit
c) Transferred to sinking fund.
d) Treated as miscellaneous expenses to be
shown in the balance sheet.

24. Bills Payable A/c is shown in the balance sheet
under the head ______
a) Provision b) Reserves & Surplus
c) Secured loans d) Current liabilities

25. Human resources will not appear in the
balance sheet according to ______ concept.
a) Accrual b) Going concern
c) Money measurement concept
d) None

26. Working capital is _____
a) Current assets current liabilities
b) Fixed assets fixed liabilities
c) Fixed assets - current liabilities
d) Current assets fixed liabilities

27. Profit or Loss on the sale of fixed assets is
transferred to ____
a) Profit & Loss A/c b) Capital Reserve A/c
c) Revaluation A/c d) Capital A/c

28. Provision for discount on debtors is calculated
on the amount of debtors.
a) Before deducting provision for doubtful
debts.
b) After deducting provision for doubtful
debts.
c) Before deducting actual debts and provision
for doubtful debts.
d) After adding actual bad and doubtful debts.

29. X of Delhi purchased machinery from Y of
Chennai for Rs.10,00,000. He paid freight of Rs.
2,00,000 and excise duty of Rs.1,00,000. He
used the machinery in his business. At the end
of the year he charged depreciation of
Rs.1,50,000. The market value of the machine
was estimated at Rs.15,00,000. At what value
the machine should be shown in the balance
sheet at the end of the year.
a) 13 lakhs b) 13.5 lakhs
c) 11.5 lakhs d) 15 lakhs

30. Salary paid Rs. 15,000 to a partner will appear
in _____
a) Note on account b) Revaluation A/c
c) Profit & Loss appropriation A/c
d) Trading A/c

31. Purchase of goods for Rs.13,500 has been
recorded as Rs.13,000 in the purchases book.
This is _____
a) Error of omission
b) Error of commission
c) Error of Principle d) None

32. Value of goods withdrawn by the proprietor
for his personal use should be credited to ____
a) Capital A/c b) Sales A/c
c) Drawings A/c d) Purchases A/c
33. __ is shown as foot note under the Balance
Sheet.
a) Contingent asset b) Contingent liability
c) Fixed asset d) None

34. Bills received discounted by the drawer will be
recorded by the drawee in _____
a) Journal b) Ledger
c) Trial Balance d) No where
35. M/s Stationery Mart will debit the purchase of
stationery to _______
a) Purchases A/c b) General Expenses A/c
c) Stationery A/c d) None

36. A Bill is drawn for 3 months on May 12th. The
due date of the bill date is ______
a) 15th August b) 14th August
c) 16th August d) 12th August

37. Machinery was purchased for Rs.5,00,000 on
1.4.2008. W.D.V. after 3 years of depreciation
at 10% p.a. under W.D.V. method will be ___.
a) 4,50,000 b) 4,05,000
c) 3,54,500 d) 3,64,500
38. A, B, C and D are partners sharing profits &
losses equally. After one year they decided to
share profits in the ratio of 2 : 2 : 1 : 1.
Ds sacrifice is________
a) 1/24 b) 1/12 c) 1/10 d) 1/6

39. After recording the transactions and events in
Journal and Subsidiary Books, they will be
transferred to ____
a) Ledger b) Trading A/c
c) Profit & Loss A/c d) Balance Sheet

40. XYZ Ltd has a house of 3 years old. It is used as
guest house. It incurred an expenditure of Rs.
2.5 lakhs for its repairs. The nature of this
expense is ______
a) Capital Expenditure
b) Revenue Expenditure
c) Deferred Revenue Expenditure
d) None of these

41. Which of the following is incorrect?
a) Good will intangible asset
b) Sundry debtorscurrent asset
c) Loose toolstangible fixed asset
d) Out standing expensescurrent asset.

42. Balance of Goods Sent on Consignment is
transferred to ____
a) Trading A/c b) P & L A/c
c) Consignee A/c d) Consignor A/c

43. In case of Reducing Balance Method
depreciation is calculated on _____
a) Original Cost
b) Original Cost Depreciation
c) Market value d) W.D.V

44. Goods worth Rs.5,000 were supplied to Mr. X
at an invoice price of 20% above cost and
allowed trade discount at 10% on invoice price.
The amount of sale will be Rs.____
a) 5,400 b) 5,500 c) 5,625 d) 6,600

45. Prepaid expenses of Rs.1000/- shown in the
trial balance will appear in _____
a) Liabilities side of balance sheet
b) Dr. Side of P & L A/c
c) Dr. Side of P & L Appropriation A/c
d) Assets side of Balance Sheet.

46. XYZ Ltd. follows W.D.V. Method of depreciation
year after year, due to ____ concept.
a) Consistency b) Convenience
c) Comparability d) Conservatism

47. Rs. 30 paid on postage is shown in which
subsidiary book.
a) Purchases Book b) Cash Book
c) Petty Cash Book d) None

48. Small items like, pencils, pens, files, etc. are
written off within a year according to _ concept.
a) Materiality b) consistency
c) Conservatism d) Realisation

49. Net profit of a firm is Rs. 5000/-. Interest on
capital & drawings still not recorded are
Rs.5,000 & Rs.2,500 respectively. Net profit
available for the distribution among the
partners will be Rs.___
a) 7,500 b) 5,000 c) 2,500 d) Nil

50. Deferred Revenue Expenditure to the extent
not written off is shown in the balance sheet
under ___
a) Miscellaneous expenses
b) Capital c) Current Liabilities
d) Fixed Asset

51. Business enterprise is separate from its owner
according to _____ concept.
a) Money measurement concept
b) Matching concept
c) Entity concept d) Dual aspect concept

52. Which of the following expenses will not be
included in the acquisition cost of plant?
a) Purchase price of plant
b) Installation expenses
c) Annual maintenance charges
d) Delivery charges.

53. Which account will be prepared at the time of
admission of a new partner for giving effect of
changes in the values of assets & liabilities in
the old balance sheet?
a) Profit & Loss A/c b) Revaluation A/c
c) Memorandum Revaluation A/c
d) Realisation A/c

54. On the admission of a new partner, which one
of the following in the Balance sheet should be
transferred to the Capital A/cs of the old
partners in old profit sharing ratio?
a) Bank O.D. b) General Reserve
c) Bills payable d) Outstanding expenses

55. When there is no partnership deed among the
partners, the partner is allowed to get ____
a) 15% interest on loan
b) 8% interest on loan
c) 6% interest on loan d) No interest

56. The policy of anticipate no profit and provide
for all possible losses arise due to the concept
of _____
a) Consistency b) Disclosure
c) Conservatism d) Matching

57. In case of death of a partner, the goodwill is to
be distributed to the deceased partner as per _
a) Gaining Ratio b) Sacrificing Ratio
c) New Ratio d) Old Ratio
58. Which of the following statements is false?
a) Partnership deed is a mutual agreement
among the partners
b) In the absence of agreement, partners share
the profits equally.
c) Profit & Loss appropriation account is
prepared to show the distribution of profits
among the partners.
d) The liability of the partners is limited.

59. Preliminary expenses will be shown in ____
a) Trading A/c debit side
b) Profit & Loss Appropriation A/c debit side
c) Balance sheet liabilities side
d) Balance sheet assets side

Part B Mercantile Laws

60. Ordinary damages are collected on breach of
contract.
a) True b) False

61. Pre contractual impossibility is also known as
a) Initial Impossibility
b) Supervening impossibility
c) Actual Impossibility d) None

62. __ arises when obligations are created without
a contract.
a) Quasi Contract
b) Wagering Agreement
c) Contingent Contract d) None

63. The criminal act involves in ____
a) Undue Influence b) Coercion
c) Misrepresentation d) All of the above

64. By transfer of partners interest then the ____
a) Partner does not ceases to be a partner
b) Partner ceases to be a partner
c) Has a right to share profit d) None

65. Partner expelled because of personal issues of
partners with him then it is___
a) Valid b) Void c) Voidable d) None

66. A contract which is based on the principles of
equity, justice and good conciseness is called:
a) anticipatory contract
b) contingent contract
c) quasi contract d) wagering agreement

67. Voidable contract is one which is :
a) Not enforceable by Law
b) Enforceable at the option of both the parties
c) Enforceable only with the permission of
court.
d) Enforceable at the option of one or more
parties but not at the option of other or others

68. A Boy of 21 years for whose property a
guardian has been appointed for entering in to
contract with respect to minors property is __
a) valid b) voidable c) void d) none

69. Some or all terms of a contract is cancelled in _
a) Novation b) Alteration
c) Merger d) Recission

70. Consideration must move at the desire of
a) Promisor b) Promisee
c) Any other person d) Any of these

71. Consensus-ad-idem means:
a) General Consensus
b) Reaching of Contract
c) Reaching of an Agreement
d) Meeting of Minds upon the same thing in
the sense of goods

72. If the buyer receives excess delivery then he
may ____
a) Reject the total goods
b) Accept the total goods
c) Accept or Reject the total goods
d) Any of the above

73. Where no provision is made by contract
between partners for the determination of
duration of their partnership then it is called _
a) Partnership at will
b) Fixed term partnership
c) Particular partnership d) None of these

74. If partners agreed to share profits of an illegal
business then it is ____
a) void b) voidable c) valid d) none

75. When the delivery of goods are taken placed
by way of handing over the document of title is
known as ____
a) Actual delivery b) Symbolic delivery
c) constructive delivery d) none of these
76. A condition is:
a) Not essential to the main purpose of the
contract
b) Essential to the main purpose of the contract
c) A stipulation collateral to the main purpose
of the contract d) None of these

77. An intentional misrepresentation amounts to _
a) undue influence b) misrepresentation
c) fraud d) mistake

78. X and Y enters in to an agreement to share the
profits of an illegal business. Then the
agreement is ______
a) Valid b) Void
c) Voidable d) Partly valid

79. A partner can be expelled by majority of
partners in good faith.
a) True b) False

80. A contract dependent on the happening or non
happening of future uncertain event, is a
a) Uncertain contract
b) Contingent contract
c) Void contract d) Voidable contract

81. Unless otherwise agreed all partners have
equal rights in conduct and management of
the partnership business.
a) True b) False

82. Special damages can be claimed by the
aggrieved party ________
a) Where he has brought to the notice of the
other party the special circumstances of the
case at the time of entering into the contract
b) Where he has brought to the notice of the
other party the special circumstances of the
case at any time before the breach of the
contract
c) Where he presumed that the other party
has knowledge of special circumstances of the
case d) In all the above cases

83. Newton owes Rs.18,000 to Johnson. Johnson
promises to accept Rs.10,000 in full
satisfaction of the original debt. Then the
agreement is:
a) unenforceable b) voidable
c) valid d) illegal

84. A Master ask the servant to sell the goods to
him at the price less than the market price.
Then the contract can be avoided on the
ground of ______
a) Fraud b) Misrepresentation
c) Undue influence d) Coercion

85. Which of the following sale is valid?
a) Sale by Mercantile Agent
b) Sale by one of the joint owner
c) Sale by the party in possession of goods
under a voidable contract
d) All of the above

86. The Right of lien is available to an unpaid seller
who is possession of goods _____
a) Where the goods have been sold without
any stipulation as to credit
b) On the expiry of the term of credit period
c) On the buyer becomes insolvent
d) In all the above situations

87. Mistake relating to the identity of the subject
matter by both the parties. Then it is ____
a) Unilateral Mistake b) Bilateral Mistake
c) Not a mistake d) Misrepresentation

88. A contract which is created without the
consent of the party then it is ____

89. Partnership in a banking business becomes
illegal when the number of persons exceeds __
a) 10 b) 20 c) 50 d) 100

90. A offers to sell his house to B who agrees to
purchase but subject to approval by Bs
solicitor. Which one of the statement is
correct.
a) Bs statement is absolute and unqualified
b) Bs statement is not absolute and
unqualified
c) Both (a) & (b) d) None

91. Partnership at will not be compulsorily
dissolved if ____
a) One of the partners becomes insolvent
b) The business of the firm becomes illegal
c) Only one of the several businesses becomes
illegal d) None

92. The contract where the consent of the party is
obtained by undue influence then it is _____

93. Which of the following statements are true?
a) Every partner is not an agent of the other
partners
b) The profits may be distributed equally
among partners
c) The liability of the partners is limited

94. A and B enters into contract to sell the goods.
B to get 300 as wages. Then the relationship
between A and B is _______
a) Master & Servant b) Partners
c) Either (a) or (b) d) None

95. The damages arising due to some special or
unusual circumstances are ______
a) Recoverable b) Unrecoverable
c) Recoverable at the discretion of the default
party if there is a prior notice
d) Cannot be claimed as a matter of right

96. Parties to a contract are yet to perform their
promises. This is a type of _____
a) Executed contract b) Voidable contract
c) Executory contract d) Void contract

97. Yatra Travel operates A.C. Buses from Mumbai
to Nashik. The bus is standing in bus stand in
Mumbai waiting for passengers. This is a ____
offer.
a) Internal b) External
c) Express d) Implied

98. A person entering into a contract with a minor
____
a) Is responsible for losses arising out of the
contract
b) Is responsible for all the losses
c) Is Responsible for giving compensation
granted in a suit
d) Cannot sue a minor.

2nd Session
Part A General Economics

1. Which system of note issue prevails in India at
present______
a) Minimum Reserve System
b) Proportional Reserve System
c) Fiduciary Reserve System
d) None of these

2. Globalisation has made Indian market
as________
a) Buyers Market b) Sellers Market
c) Monopoly Market d) Monopsony Market

3. As MODVAT had defects, so it was _______
a) Replaced by VAT b) Replaced by CENVAT
c) Replaced by Corporate tax
d) None of these

4. SEBI is __________
a) Statutory body b) Advisory body
c) Constitutional body d) None of these

5. Bank rate is called _________
a) Discount rate b) Repo rate
c) Reserve repo rate d) Lending rate

6. According to 2001 census to the highest urban
population________
a) UP b) Maharastra
c) Tamil Nadu d) Kerala

7. Franchising is one of the method of ________
a) Liberlisation b) Globalisation
c) Privatisation d) None of these

8. Customs duties are levied on __________
a) Only exports b) Only imports
c) Both exports & imports d) None of these

9. Upward rising in Administered price levels
leads to ________
a) Demand pull inflation
b) Cost push inflation
c) Both (a) & (b) d) None of these.

10. VAT is levied by __________
a) Central Government b) State Government
c) Both (a) & (b) d) All the above.
11. Supply of a commodity is ______ concept.
a) Stock Concept b) Flow concept
c) Both (a) & (b) d) Whole sale concept

12. Under which market condition firms make only
normal profit in the long run __________
a) Oligopoly b) Monopoly
c) Monopolistic Competition d) Duopoly

13. Most of the unemployment in India is_______
a) Voluntary b) Structural
c) Frictional d) Technical

14. On an average one post office in India serves _
a) 100 person b) 500 persons
c) 6.174 persons d) 7,176 persons
15. In perfect competition, since the firm is a price
taker, which curve among the following will be
a straight line _______
a) MC b) AC c) TC d) MR
16. Density of population lowest in _______ state.
a) Arunachal Pradesh b) Megalaya
c) Madhya Pradesh d) Goa

17. Normal good have _____
a) Zero income elasticity
b) Negative income elasticity.
c) Positive income elasticity
d) Infinite income elasticity

18. Which of the following function the modern
banks do not perform _________
a) Issue of letter of credit
b) Publishing of statistics
c) Handling of foreign exchange
d) Conducting economic survey.

19. Monopolist excess capacity ______ in the firm.
a) Always exists b) Some times exists
c) Never exists d) None of the above.

20. In which of the following situations firm
encounters shutdown point.
a) MC is equals to price at the profit
maximizing level of output.
b) AFC is equals to price at the profit
c) AVC is equals to price at the profit
d) ATC is equals to price at the profit

21. Which one of the following is envelop curve __
a) Average variable cost curve
b) Average total cost curve.
c) Long run average cost curve
d) Short run average cost curve.

22. In a capitalist economy the allocation of
resources is performed by
a) Producers b) Government
c) Planners d) Price Mechanism.

23. Government of India has replaced FERA by ___
a) The competition Act b) FRBMA
c) MRTP Act d) FEMA.

24. Long run investment loans to various countries
are given by:
a) World Bank b) World trade organisation
c) International Monetary fund

25. Stagflation means _____
a) Inflation with recession
b) Deflation with recession
c) Inflation galloping like a stag

26. Inequalities of income do not perpetuate in __
a) Socialism b) Mixed Economies
c) Capitalism d) None

27. Indian agriculture is characterized by _____
a) Gamble of Mansoon
b) Disguised unemployment
c) Sub-division and fragmentation of land
holdings d) All of the above
28. Economic infrastructure comprises of ___
a) Banking & financial institutions
b) Sanitation
c) Drinking water facilities

29. _____ port handles maximum traffic among
major pots of India
a) Kandla b) Kochin
c) Mumbai d) Visakhapatnam

30. CRR is determined in India by ______
a) Minister of finance b) SBI
c) RBI d) Parliament

31. Find the MC at 67 unit?
Units cost
output
0 10 25 37 67
Total cost 100 200 300 500 1400
a) 10 b) 40 c) 30 d) 50

32. Find AFC of 4 units of output is ______
Output 0 4 8
Total cost 20 24 48
a) 2 b) 3 c) 4 d) 5

33. In oligopoly the kink on the demand curve is
due to:
a) Discontinuity in MR
b) Discontinuity in AR
c) Fulfillment of the assumption that a price
cut is followed by others and a price increase
by a firm not followed by others
d) Price war among the firms

34. If there exists more exports than the imports
then it is called _____
a) Balance of payment deficit
b) Balance of payment surplus
c) Balance of trade deficit
d) Balance of trade surplus

35. Personal income tax is shared by central &
state government according to the
recommendations of ______
a) Finance commission
b) Planning commission
c) Market commission

36. Which of the following statement is correct
a) World bank provides debt funding to retail
borrowers
b) World bank provides loan to eligible foreign
institutional investors
c) World bank provides loan to all those who
need money
d) World bank provides loans to all member
countries

37. Price discrimination is allowed (or) occurs in__
a) Monopoly
b) Monopolistic competition
c) Perfect competition
d) Oligopoly

38. In India agriculture, trade and small scale
industries get credit facilities through the
respective institutions.
a) NABARD, EXIM, SIDBI
b) EXIM, NABARD, IDBI
c) IDBI, NABARD, EXIM

39. In India ____ is not a cause of low death rate:
a) Spread of Education
b) Control of Famines
c) Abolition of Joint Family System
d) Expanded Medical Facilities

40. The supply of commodity implies:
a) Actual product of a good
b) Stock available for sale
c) Total existing stock of the good
d) The amount of goods offered for sale at a
particular price per unit of time.

41. Fiscal Policy means ________
a) planning policy b) credit policy
c) taxation policy
d) Public expenditure, public debt & public
revenue policies

42. Find AFC at 3rd unit of output
Units of
output
0 1 2 3
Total cost 300 1000 2000 3000
a) 100 b) 150 c) 200 d) 300

43. Money is most liquid of all assets because ____
a) It includes shares and equities
b) money itself is a medium of exchange
c) It does not have general acceptability
d) It has few functions

44. Find the correct Match.
a) Science of wealth - L.Robbins.
b) Science of material wellbeing Marshall
c) Science of choice making Paul.Samuelson
d) Science of Growth and Development
Adam Smith
Part B - Quantitative Aptitude
45. 6 x
4 log x
2 log + = then x =
a) 16 b) 32 c) 64 d) 128
46. If A = {1,2,3,4,5,} B = {2,4} C = {1,3,5} then
(A C) x B
a) {(4,4), (2,2)} b) {(2,2), (2,4), (4,2), (4,4)}
c) {1,2} d) {2,4}

47. ( )' ' AB
a) B A b) A B c) A'B' d) B'A'

48. If f (x) = 3 + x - 3 < x < 0
3 2x 0 < x < 3
a) -1 b) 1 c) 3 d) 5

49. The sum of the all two digit odd numbers
a) 2475 b) 2575 c) 4950 d) 5049

50. The sum of 3 A.Ms between a & 22 is 42 then
a =
a) 14 b) 11 c) 10 d) 6

51. If the sum of 3rd & 9th term of an A.P is 8 then
sum of 11 terms
a) 44 b) 22 c) 19 d) 11

52. In an A.P. if a = 2000, n = 10, d = 100 then find
S n
a) 24,500 b) 15,400
c) 24,400 d) 55,300

53. If fifth term of a G.P is 3 3 then product of first
9 terms
a) 8 b) 27 c) 243 d) 9

54. If A.M = 12.5, G.M = 10 then the numbers are
a) 20,5 b) 10,5 c) 5,4 d) None

55. A straight line L is lr to the line 2x + y 4 = 0
and cuts x-axis at (3,0), find the lr distance
from the point (2,-3) to the line L
a)
5
1 b) 5 c) 5 d) 2 5

56. On the average experienced person does 5
units work which a fresh one 3 units of work
daily but the employer has to maintain an
output of at least 30 units of works per day
a) 5 x + 3y 30 b) 5x + 3y > 30
c) 5x + 3y 30 d) None

Then f (2)

57. If , are the roots of 0 4x 6x q 2 + = and
, are in the ratio 1 : 2 then q =
a) 2 b) 8 c) 16 d) None

58. If one root of equation 0 px qx r 2 + + = is r then
other root will be:
a)
q
1 b)
r
1 c)
p
1 d)
p q
1
+

59. If p & q are roots of 0 x bx c 2 + = then the
equation whose roots are (pq + p + q) &
(pq p q) is:
a) x 2cx c b 0 2 2 2
+ =
b) x 2bx c b 0 2 2 2
+ + =
c) 0 cx 2(b c)x c 2 2 + + =
d) 0 x 2bx (c b ) 2 2 2 + =

60. If f(x) =
x 3x 2
x 2x 5 2
2
+
+ + then find where it is
discontinuous.
a) x = 0, x = 1 b) x = 1, x = 2
c) x = 0, x = 2 d) None

61.

x
2 log
2
dx
d
a) 1 b) 0 c) 1/x d) 2 log x 2

62. If y = xx then 2 dx
y
2
d
a) dx
dy (1 logx) (1 logx) dx
d
y + + +
b) (1 logx) dx
d (1 logx) y dx
d
+ + +
c) (1 logx) dx
d (1 logx) y dx
d
+ +
d) None of these

63.
( ) ( )
+

+
.dx 2 2 1 x
x
e .dx 3 1 x
x
e
a) 0 b)
( )
C 2 2 1 x
x
e
+
+

c)
( )
C 2 2 1 x
x -e
+
+
d)
( )
C
2 1 x
xe
+
+

64.

1
1
dx
x
x
a) -1 b) 0 c) 1 d) 2
65. How many ways 3 prizes out of 5 can be
distributed among 3 brothers equally
a) 15 b) 45 c) 60 d) 120

66. There are 12 questions to be answered in yes or
no In how many ways can these be answered
a) 1024 b) 2048 c) 4096 d) None

67. The ratio compounded of 4 : 5 the sub
duplicate ratio of a : 9 is 8 : 15 then a =
a) 2 b) 3 c) 4 d) 5

68. Average age of a group of 10 students is 20
years, if average age increased by two years
when two new students are joined then the
average age of two new students
a) 84 b) 64 c) 32 d) 42

69. If x is inversely related with square of y for x =
1 and y = 2 then find the value of x when y = 6
a) 3 b) 9 c) 3
1 d)
9
1

70. Find the effective rate of interest of 9.9% p.a.
calculated monthly
a) 9.9% b) 11.36% c) 9.36% d) 10.36%
71. If the S.I on Rs.1,400 at certain rate of interest
for 3 yrs is less than that on Rs.1,800 for the
same period and same rate of interest is Rs.80,
then the rate of interest is:
a) 6.67% b) 7.67% c) 5.67% d) None

72. If four couples are placed in a room, two are
selected at Random the probability that the two
were a gentlemen and lady but not a couple
a)
7
3 b) 7
4 c) 7
1 d) None
73. A committee of 5 members is to be selected
from 8 boys and 3 girls the probability that in
which 2 particular girls include
a) 30
2 b) 111
12 c)
11
2 d) 9
8

74. One card is drawn from a pack of 52 cards.
What is the probability it is a king or queen
a) 13
11 b)
13
2 c) 13
1 d) None

75. Two unbiased dies are thrown then the
excepted value of sum on the sides of the die
a) 3.5 b) 7 c) 6 d) 12

76. In a packet of 500 pens 50 are defective. If a
pen is drawn at random what is the chance
that it is non-defective
a)
9
8 b)
8
7 c)
10
9 d)
3
2

77. The binomial distribution with mean 3 and
variance 2 is
a)
9
3
1
3
2

+ b)
9
6
1
6
2

+
c)
6
3
1
3
2

+ d)
9
5
1
5
2

+

78. The mean of binomial distribution is 20 and
S.D = 4 then
a) n = 100, p = 1/5, q = 4/5
b) n = 50, p = 2/5, q = 2/5
c) n = 100, p = 3/5, q = 4/5
d) n = 100, p = 3/5, q = 1/5

79. A car hire firm has 2 cars which is hired out
everyday. The number of demands per day for
a car follows Poisson distribution with mean
0.5. What is the proportion of days on which
some demand is refused? (Given e-0.5 = 0.6065)
a) 0.025 b) 0.302 c) 0.014 d) None

80. In normal distribution the relation between
Q.D, S.D is
a) Q.D > S.D b) Q.D < S.D
c) Q.D = S.D d) None

81. The graphical representation of Median is
found by using:
a) Frequency polygon b) Histogram
c) Ogives d) Frequency curve

82. Which of the following is not a two
dimensional Diagram?
a) Square Diagram b) Rectangular
c) Line Diagram d) Pie Diagram

83. Given the following observations arranged in
ascending order with median = 25. Find the
value of n.
11, 13, 15, 19, n + 2, n + 4, 30, 35, 39, 46
a) 22 b) 20 c) 15 d) 30
84. The classes of a frequency distribution are 80-
100, 100-120, 120-140, 140-160 and mode is 125.
Then find the class having maximum frequency.
a) 80-100 b) 100-120
c) 120-140 d) 140-160

85. The S.D of weight of some members is 4.5 k.g.
After some time it was observed that each
member was under weight by 0.5 kg then what
is new S.D?
a) < 4.5 b) > 4.5 c) = 4.5 d) None
86. Out of the following which one affects the
regression coefficient:
a) Change of origin b) Change in scale
c) Change of origin & scale d) None

87. If one of regression coefficient is ______ unity,
the other must be _____ unity.
a) Less than, greater than
b) Greater than, less than
c) (a) or (b) d) None

88. If y is dependent variable and x is independent
variable the regression coefficient y on x if r =
0.2, x= 2 and y = 4:
a) 0.4 b) 0.04 c) 0.8 d) 0.10

89. The total number of possible samples of
SRSWOR is:
a) n N
1 b)
nCN c)
nCN
1 d) None

90. Type II error happens when a H0 is accepted
which is:
a) True b) False
91. If prices are increased by 20%. What would be
the price index now?
a) 110 b) 120 c) 220 d) None
92. Given the prices of 2 commodities are
increased by 10% and 20% respectively and
the price of another commodity is decreased
by 30%. The relative importance of 3
commodities are in the ratio 3:3:1. Find
weighted price index number.
a) 80 b) 109 c) 110 d) 108.5
93. Fisher Ideal Index Number does not satisfy the:
a) Unit test b) Time Reversal Test
c) Factor Reversal test d) Circular Test

Key 1st Session - Part A FUNDAMENTALS OF ACCOUNTING
1. A 2. D 3. D 4. C 5. C
6. C 7. D 8. B 9. D 10. A
11. D 12. B 13. C 14. D 15. B
16. D 17. C 18. D 19. C 20. A
21. A 22. C 23. B 24. D 25. C
26. A 27. A 28. B 29. C 30. C
31. B 32. D 33. B 34. D 35. A
36. B 37. D 38. B 39. A 40. B
41. D 42. A 43. D 44. A 45. D
46. A 47. C 48. A 49. C 50. A
51. C 52. C 53. B 54. B 55. C
56. C 57. D 58. D 59. D
Part B MERCANTILE LAWS
60. A 61. A 62. A 63. B 64. B
65. B 66. C 67. D 68. A 69. B
70. A 71. D 72. D 73. A 74. A
75. B 76. B 77. C 78. B 79. A
80. B 81. A 82. A 83. C 84. C
85. D 86. D 87. B 88. B 89. A
90. B 91. C 92. C 93. B 94. A
95. C 96. C 97. D 98. D
Key 2nd Session - Part A GENERAL ECONOMICS
1. A 2. A 3. B 4. A 5. A
6. B 7. C 8. C 9. B 10. B
11. B 12. C 13. B 14. D 15. D
16. A 17. C 18. D 19. A 20. C
21. C 22. D 23. D 24. A 25. A
26. A 27. D 28. A 29. A 30. C
31. C 32. D 33. C 34. D 35. A
36. D 37. A 38. A 39. C 40. D
41. D 42. A 43. B 44. B
Part - B - QUANTITATIVE APTITUDE
45. A 46. B 47. A, C 48. A 49. A
50. D 51. A 52. A 53. B 54. A
55. C 56. C 57. A 58. C 59. A
60. B 61. A 62. A 63. C 64. B
65. C 66. C 67. C 68. C 69. D
70. D 71. A 72. A 73. C 74. B
75. B 76. C 77. A 78. A 79. C
80. B 81. C 82. C 83. A 84. C
85. C 86. B 87. B 88. A 89. B
90. A 91. B 92. D 93. D


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