CA CPT JUNE 2014

TIME : 2 HRs. MARKS : 100

SECTION I - ACCOUNTS
1. Varun Associates purchased a new office building for 10,00,000 by making a down
payment of 2,00,000 and executing a promissory note to pay the balance amount in 90
days. ow is this transaction going to affect the balance sheet of Varun Associates!
"a# $otal assets increased by 10,00,000 and liabilities increased by %,00,000.
"b# $otal assets increased by %,00,000 and liabilities also increased by %,00,000.
"c# Assets increased by 10,00,000
"d# &iabilities increased by %,00,000
2. 'n which of these areas can there be different accounting policies!
"a# Valuation of goodwill "b# (ethod of pro)iding depreciation
"c# (ethod of )aluation of in)entories "d# All the three
3. &oss due to fire is debited to
"a# $rading A*c "b# +rofit and loss A*c
"c# (anufacturing A*c "d# ,apital A*c
4. -nder which heading will Accounts .ecei)able appear!
"a# Assets "b# &iabilities
"c# .e)enue receipt "d# .e)enue expenses
5. -nexpired insurance of /,000 will be recorded in
"a# 0ournal +roper "b# ,ash 1ournal
"c# 2irectly in balance sheet "d# +rofit and loss A*c
6. 3ominal ,apital means4
"a# Authorised ,apital "b# 5ubscribed ,apital
"c# +aid up ,apital "d# 3one
7. 'n a three columnar cash book which of these columns are not balanced!
"a# 2iscount "b# ,ash
"c# 6ank "d# 3one
8. 6alance in petty cash represents
"a# 7utstanding expenses "b# +repaid expenses
"c# ,ash balance "d# 3et +rofit
9. 8hich of these receipts is * are capital receipts
"a# 7ld bad debts amounting to /,000 fully written off reco)ered now.
"b# 'nterest on 9ixed 2eposits held with 6ank amounting to 1,000
"c# /,000 being sale of by products and scrap and waste generated
MOCK TEST
"d# 'nsurance claim of 20,000 recei)ed on account of damage of +lant and (achinery in a
ma1or fire.
10. 8hich of these is an error of commission!
"a# /,000 recei)ed from 5uman credited to 5imran:s A*c
"b# 9reight paid on new machinery debited to freight A*c
"c# 5alary of /,000 paid to shyam debited to his A*c
"d# /00 paid to (ohan omitted to be recorded in the books.
11. 8hich of the following shows the financial position of the business!
"a# ,ash 9low 5tatement "b# +rofit and &oss A*c
"c# 6alance 5heet "d# 9und 9low 5tatement
12. ;oods worth /,000 were distributed as free sample, how will distribution of free samples
be accounted for in final accounts!
"a# 2ebit profit and loss A*c "b# ,redit trading A*c
"c# 2ebit trading A*c "d# 6oth a < b
13. 8hen balance as per cash book is the starting point, che=ue deposited but not cleared are
>>>>> for the purpose of reconciliation of balance with bank passbook
"a# 2educted from balance as per cash book
"b# Added to the cash balance as per cash book
"c# 2educted from balance as per bank passbook
"d# ?ept in abeyance for sometime.
14. 8hen balance as per passbook is the starting point, che=ue issued but not presented for
payment are @ for the purpose of reconciliation of balance with cash book
"a# 2educted from balance as per cash book
"b# Added to the cash balance as per cash book
"c# 2educted from balance as per bank passbook
"d# ?ept in abeyance for sometime
15. 7pening stock 10,000, +urchases 110,000, 5ales 120,000 if the profit margin on
sales is 2/A, closing stock will be
"a# B0,000 "b# C0,000 "c# C/,000 "d# /0,000
16. A DDDDDD affects the financial position of an entity and can be expressed in monetary
terms.
"a# $ransaction "b# Entity "c# Episode "d# Entry
17. Ashish ?umar of Ahmedabad sends goods costing 1%0,000 "in)oiced at 20A abo)e cost
price# on consignment to 6hasker of 6hopal and spent 10,000 on freight, forwarding
charges. 6hasker paid C,000 as rent and 1,000 on insurance of godown. e sold goods
costing 120,000 for 200,000 and failed to reco)er 1,000 from one customer. 6hasker
is entitled to 10A commission on the in)oice price which is 20A abo)e cost price and /A
"o)erriding commission# of any price abo)e in)oice price. ;oods costing C0,000 were
substantially damaged in transit and only a claim of 2F,000 was admitted by 'nsurance
company. $he net abnormal loss transferred to profit and loss A*c will be
"a# /,FFG "b# /,000 "c# B,000 "d# C1,FFG
18. 7riginal cost H .s.1,2F,000. 5al)age Value H F,000. -seful &ife H F years. Annual
depreciation under 5&( will be
"a# .s.21,000 "b# .s. 20,000 "c# .s.1/,000 "d# .s.1B,000
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19. 'n the absence of partnership deed loan I FA is pro)ided to
"a# 2ebtor "b# ,reditor "c# +artner "d# (ember
20. DDDDD.are economic obligations of an organiJation to outsiders, or claims against the
assets by outsiders.
"a# &iabilities "b# Assets "c# 7wners e=uity "d# 3et worth
21. (artin 'ndustries allotted 100 shares of 10 each issued at a discount of 10A to K. e paid
2 on application and failed to pay allotment money of C. 5ubse=uently his shares were
forfeited. $he accounting entry of forfeiture would be
"a# 5hare capital debit /00, credit share forfeited A*c 200, share allotment A*c C00
"b# 5hare capital debit F00, credit share forfeited A*c C00, share allotment A*c C00
"c# 5hare capital debit F00, credit share forfeited A*c 200, share allotment A*c C00,
discount A*c 100
"d# share capital debit /00, credit share forfeited A*c 200, share allotment A*c 100,
discount A*c 200
22. A and 6 are partners sharing profits and losses in the ratio of C 4 2 ha)ing the capital of
.s.%0,000 and .s./0,000 respecti)ely. $hey are entitled to 9A p.a. interest on capital before
distributing the profits. 2uring the year firm earned .s.G,%00 after allowing interest on
capital. +rofits apportioned among A and 6 is
"a# .s.B,F%0 and .s.C,120 "b# .s.B,%00 and .s.C,000
"c# .s./,000 and .s.2,%00 "d# 3one of the abo)e
23. $he bank passbook shows a credit balance of /000 but the cash book shows a different
balance. 8hile analyJing the cause of difference it was noticed that a payment collected and
credited by the bank amounting to 1,000 was not recorded in the cash book. 8hat would
be the balance as per cash book!
"a# F,000 "b# /,000 "c# B,000 "d# B,/00
24. A1ay accepted a 6ill of Exchange of 20,000 payable in three months. 5an1ay got it
discounted from the 6ank at a discount of 12A p.a. 7n due date the bill was returned
dishonoured due to bankruptcy of A1ay and final di)idend of 0.2/ in a rupee was recei)ed
from the estates of A1ay. 8hat would be the discounting charges!
"a# 2,B00 "b# F00 "c# B/0 "d# C00
25. 2ebenture suspense A*c is shown in 6alance 5heet on4
"a# Asset side "b# &iabilities side "c# 6oth side "d# 3one
26. ,alls in arrears is
"a# .educed from called up capital "b# .educed from subscribed capital
"c# .educed from authoriJed capital "d# 5hown in the assets side
27. 2i)idend e=ualiJation fund is
"a# ,apital reser)e "b# .e)enue reser)e "c# .eser)e capital "d# 3one of these
28. An old furniture was sold for 2,000, but the amount has been entered in the 5ales Account
as 200. 7n rectification of this error suspense A*c will be
"a# 2ebited by 1,%00 "b# ,redited by 2,000 "c# 2ebited by 2,200 "d# ,redited by B00
29. 0oint )enture business is done for4
"a# 5pecified period "b# 5hort period "c# &ong +eriod "d# 6oth "a# and "c#
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30. 7n 1>1>200/ L draws a bill on K for .s.C0,000 for C months. At maturity K re=uests L to
accept 10,000 in cash and for the balance to draw a fresh bill for 2 months together with
12A p.a. interest, amount of interest will be 4
"a# B00 "b# F00 "c# B%0 "d# GF0
31. +reference shares can be redeemed
"a# 7nly if they are fully paid "b# E)en if they are partly paid up
"c# After getting the permission from the court only "d# All of the abo)e
32. ;ulshan 'ndustries issued 1%,000, 10Adebenture of 100 each at par and redeemable at
.s. / premium. At the time of issue, the entry to be passed will be
"a# 2r. 6ank A*c . 1%,00,000 loss on redemption of debenture 1,%0,000, ,r. 2ebenture
A*c 1%,00,000 premium on redemption of debenture A*c 1%0,000
"b# 2r. 6ank A*c 1%,00,000, &oss*2iscount on issue of 2ebenture A*c 90,000, ,r.
2ebenture A*c 1%,00,000, +remium of redemption of debenture A*c 90,000
"c# 2r. 6ank a*c 1%,00,000, &oss on redemption of debenture 1,%0,000, ,r. 2ebenture
A*c 1%,00,000, &oss on issue of debenture A*c 1,%0,000
"d# 2r. 6ank A*c 19,%0,000, ,r. 2ebenture A*c 1%,00,000, +remium of redemption of
debenture A*c 1 %0,000.
33. 10A 2ebentures issued will be shown in 6*5 under the head4
"a# 5hare ,apital "b# 5ecured loans "c# -nsecured loan "d# ,urrent &iabilities
34. $ick the 9alse statement
"a# ,ompanies Act recogniJes only 9'97 method of )aluation of in)entories
"b# ,ash basis and Accrual basis of Accounting will show different operating results
"c# -nexpired 'nsurance A*c is a personal account
"d# ,onsistency concept facilitates inter>firm comparison.
35. 9rom the following details what will be the bank balance as per pass book as on C1.0C.200G
6alance as per ,ash book as on C1.0C.200G 2,10,000. 2irect payment made by the 6ank
20,000
,he=ues deposit %,000 and 2,000 out of which che=ue of %,000 collected by the
bank on or before C1.0C.200G. ,he=ue 10,000M /,000 and F,000 issued out of which
che=ue for 10,000 and /,000 were presented on or before C1.0C.200G. %,000 interest
on bank balance credited by the bank
"a# 2,02,000 "b# 1,G/,000 "c# 1,C0,000 "d# 1,F/,000
36. 5elect the odd one
"a# 5ingle entry system "b# ,ost Accounting
"c# 9inancial Accounting "d# (anagement Accounting
37. 7)er casting of purchase daybook will lead to
"a# 7)er statement of profit "b# -nder statement of profit
"c# 7)er statement of sundry debtors "d# 3one
38. 'nclusion of C months insurance paid in ad)ance in insurance account will lead to
"a# 7)er statement of net profit "b# -nder reporting of profit
"c# 'nflation of liabilities "d# 3one
39. +ayment of a bill of exchange before the due date is called
"a# .enewal of a bill of exchange "b# 2ishonour of a bill of exchange
"c# 2iscounting of a bill of exchange "d# .etirement of a bill of exchange
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40. +lant and (achinery are generally purchased for DD..
"a# &ong term use "b# 5hort term use
"c# 9or resale "d# ,onsumption in production process
41. +rofit and &oss account shows>
"a# ;ross profits only "b# ;ross loss only
"c# ;ross profit or loss "d# 3et profit or net loss
42. +resent liability of uncertain amount which can be measured reliably by using a substantial
degree of estimation is termed as
"a# +ro)ision "b# &iability
"c# ,ontingent liability "d# All of the abo)e
43. 8hich of these are not to be recorded in ,ash book.
"a# ;oods worth /,000 sold on three months credit "b# 'nterest paid C,000
"c# ,ash recei)ed from the client "d# ,he=ue dishonoured
44. Annual maintenance contract of computer lab amounting to B0,000 is a
"a# ,apital expenditure "b# .e)enue expenditure
"c# 2eferred re)enue expenditure "d# 3one
45. 5alary outstanding account appearing in $rial 6alance is shown in >
"a# +rofit and &oss Account "b# $rading Account
"c# (anufacturing Account "d# 6alance 5heet
46. 8hich of these items are shown in profit and loss appropriation account!
"a# +ro)ision for bad debts "b# +ro)ision for depreciation
"c# +ro)ision for tax "d# +ro)ision for di)idend
47. +rofit and loss account is prepared on
"a# Accrual basis "b# ,ash basis
"c# (ixed basis "d# 3one
48. 8hich of the following is or are intangible real assets>
"a# ,opyright "b# ;oodwill
"c# +atents "d# All the three
49. /,000 is to be paid to 6 from whom goods worth /,000 were purchased on C months
credit. 6:s account appearing in trial balance will be shown>
"a# -nder 5undry debtors "b# -nder 6ill recei)able
"c# -nder 5undry creditors "d# -nder ,laims recei)able
50. 8hile preparing the trial balance for the year 0/>0F, the total of debit side of trial balance
stood at 1,00,000 and total of credit side stood at 120,000. $he difference could not be
reconciled. Accordingly it was decided to prepare the final accounts without further delay.
$he trial balance would be made to reconcile by putting the difference to
"a# ,apital Account "b# ;oodwill Account
"c# 5uspense Account "d# ,ash Account
51. 2ouble Entry means4
"a# 7ne 2ebit and another ,redit "b# 6oth 2ebit
"c# 6oth ,redit "d# 3one
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52. 8hich of the following is a non recurring expense!
"a# ;odown rent "b# 'nsurance of consignment stock
"c# (arketing expenses "d# ,ustom and excise duties
53. A consignee is entitled to all except
"a# 2el credere commission
"b# 7rdinary commission
"c# +rofit and loss on consignment
"d# 7)er riding commission
54. A company pays di)idend on its
"a# +aid up )alue of share capital "b# ,alled up )alue of share capital
"c# 5ubscribed capital "d# 'ssued capital
55. 8hich of these accounts is*are not carried forward to next year!
"a# 8ages account "b# ,ash in hand account
"c# 6ank account "d# 2ebtors account
56. $he maximum amount beyond which a company cannot raise share capital is called its
"a# AuthoriJed capital "b# 5ubscribed capital
"c# 'ssued capital "d# +aid up capital
57. $ransactions between owner and business are recorded as per
"a# +eriodicity concept "b# ;oing concern concept
"c# +rudence concept "d# 6usiness Entity concept
58. 8hich of these errors are detected by agreement of trial balance
"a# Errors of partial omission "b# Errors of commission
"c# Errors of principle "d# none of abo)e
59. A company in which the liability of shareholders is not restricted to the )alue of shares is known
as >
"a# &imited liability company "b# -nlimited liability company
"c# &isted company "d# -nlisted company
60. 6alance in share forfeited account is transferred to
"a# ;oodwill a*c "b# ,apital .eser)e a*c
"c# .eser)e ,apital "d# ;eneral .eser)e a*c
Correct Questo!s """""""""""""""" 1 # """""""""""""""
$ro!% Questo!s """"""""""""""""" -0.25 # """""""""""""""
N.A. Questo!s """"""""""""""""" 0 # """""""""""""""
"""""""""""""""& 60
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SECTION II - 'A$
61. 0us in personam means right against DDDDDDDD
"a# a specific person. "b# a specific thing. "c# $he public at large "d# none of these
62. N'ndian ,ontract ActO defines an agreement as
"a# Ne)ery promise and e)ery set of promise forming consideration for each otherO
"b# Ne)ery promise forming part of consideration for each otherO
"c# Na promise or set of promise forming consideration for each otherO
"d# Na promise and set of promises forming consideration for each otherO
63. A agrees to buy 100 meters of cloth from 6 for 1,00,000. $his agreement is not
enforceable because of
"a# -ncertainty of meaning "b# -nreasonableness of consideration
"c# 3on>certainty of terms of payments "d# All the these
64. 8hich of the following is a remedy for breach of contract to the aggrie)ed party
"a# 5uit for in1unction "b# 5uit for damage
"c# 5uit for =uantum meruit "d# All of the abo)e
65. $he damages which arose naturally from usual course of things from the breach is
"a# 5pecial damage "b# 7rdinary damage
"c# 3ominal damage "d# Exemplary damage
66. A makes an offer of sale of his flat to 6 on /
th
(arch which is open upto 10
th
(arch. A is
"a# 6ound to keep the offer open up to 10
th
(arch as per his commitment
"b# 's not bound to keep the offer open upto 10
th
(arch unless some consideration mo)es
from 6 to keep the offer open upto 10
th
(arch
"c# 's not bound to keep the offer open upto 10
th
(arch if there is not such written
commitment from him
"d# 's bound to keep the offer open upto 10
th
(arch if there is such commitment from him in
writing
67. L offers to sell his car to K for .s./0,000, K agreed to buy the same for .s.B/,000 pro)ided
L get it re>ser)iced at his cost also. K is said to ha)e made
"a# A cross offer "b# A counter offer
"c# .e)ocable offer "d# 'rre)ocable offer
68. L sold basmati rice to K by sample. $hinking that they would be old rice, K purchased the
same, but it turned out to be new rice. K can
"a# A )oid the contract
"b# 3ot a)oid the contract due to unilateral mistake of fact
"c# 3ot a)oid the contract due to the doctrine of ,a)eat Emptor
"d# 3ot a)oid the contract due to the reasons both "b# and "c#
69. A promise to turn a roll of iron into sil)er stick by magic. $his agreement is >
"a# Valid "b# Void being illusory "c# Voidable due to lack of consideration "d# illegal
70. A consideration which mo)es simultaneously with the promise is called
"a# Executed consideration "b# Executory consideration
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"c# 9uture consideration "d# past consideration
71. L sa)es K from a train accident. K promises to pay him .s. /,000 out of gratitude. $he
consideration for K:s promise is a
"a# Executed consideration "b# Executory consideration
"c# 9urther consideration "d# +ast consideration
72. 8hen a party to contract transfers his right, title and interest in the contract to another
person or persons he is said to ha)e
"a# .escinded the contract "b# Assigned the contract
"c# 2ischarged the contract "d# Endorsed the contract
73. .escission means >
"a# ,ancellation of all or some of the term of a contract
"b# .elin=uishment or abandonment of a right in a contract
"c# ,hange in certain terms of the contract.
"d# All the three
74. A person is said to be insol)ent when he ceased to pay his
"a# 2amages "b# +rice "c# 2ebts "d# All the abo)e
75. 8hich of the following statement is true
"a# -ntil a)oided a )oidable contract is absolutely )alid
"b# A counter offer constitute acceptance of the first offer
"c# +erformance of contract can be tendered by the party to contract only
"d#

9raud is a false statement, the person making it belie)ed it to be true
76. 5elect the false statement
"a# Abandonment or relin=uishment of a right in a contract is called wai)er
"b# .escission means cancellation of all or some of the terms of a contract
"c# An agreement to agree in future is no agreement
"d# A )alid contract may results from identical cross offers
77. L agrees to sell his flat to K for 10,00,000. 'n case K uses it as a brothel house, its price
will be 1/,00,000. $he contract is
"a# Valid to the extent to first part and for second part
"b# $otally )oid
"c# Valid to the extent of first part and )oid to the extent of second part
"d# $otally )oidable
78. ,ontract of sale is between
"a# 7ne party "b# $wo party "c# 3o party "d# All the abo)e
79. 'llegal agreements are
"a# forbidden under law "b# unenforceable under law "c# both a and b "d# )oidable
80. Any agreements interfering with the course of 1ustice are
"a# Void "b# Voidable "c# 'llegal "d# Valid
81. +rior to enactment of 'ndian partnership Act, 19C2 was included in
"a# ,ompanies act "b# ,hapter L' of 'ndian ,ontract Act
"c# indu &aw "d# ,hapter L of 'ndian ,ontract Act
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82. 'nsol)ency of partner in a firm may result
"a# ,ompulsory dissolution of the firm in any case
"b# .econstitution of the firm
"c# ,ontinuation of the firm
"d# ,ontinuation of the firm if the partnership deed specially pro)ide that in such contingency
the firm shall not be dissol)ed.
83. 7n dissolution of the firm, the partners continues to remain liable till
"a# +ublic notice thereof is gi)en
"b# +artners due are settled
"c# 'ncome tax assessment order up to the date of dissolution of the firm is recei)ed
"d# a b c whiche)er is later
84. 8hen there is a breach of contract to marry, the court may order
"a# 7rdinary damage "b# 5pecial damage
"c# 2amage for loss of reputation "d# Exemplary damage
85. An implied contract is made
"a# 'n writing "b# 7rally "c# 6oth "d# 3one of the abo)e
86. DDDD.. of 'ndian ,ontract Act deals with the liability of person getting benefit under
mistake
"a# 5ection G2 "b# 5ection /0 "c# 5ection F9 "d# 5ection B%
87. +ublic notice is not re=uired in the e)ent of
"a# 2eath of any partner
"b# .etirement or expulsion of any partner
"c# 2issolution of the firm
"d# (inor partner attaining age of ma1ority and opting to remain or not to remain partner of the
firm
88. -nder 'ndian ,ontract Act, a Puasi contract is a
"a# Express contract "b# 'mplied contract
"c# &egal obligation "d# Valid agreement
89. 'n the case of sale of unascertained goods, the ownership is transferred when
"a# $he goods are ascertained "b# $he goods are appropriated to the contract
"c# 8hen a and b are complete "d# 8hen either a or b is complete
90. 'ndian +artnership Act, 19C2 is based on
"a# English +artnership Act, 1%90 "b# 5ocieties .egistration Act
"c# &aw of insurance "d# American law of partnership
91. L threaten to abduct K:s minor son if he does not sign a document transferring his plot worth
/ crore to him for 20 lakhs, K sign the documents. $he contract is
"a# Void "b# Voidable at the option of K "c# -nenforceable "d# 'llegal
92. An irregularly expelled partner has right to
"a# 6e re>institute "b# 5ue for profit
"c# 5ue for return of capital "d# All of three
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93. $he persons who ha)e entered into a partnership are collecti)ely called
"a# +artners "b# 9irm
"c# 9riends "d# Association of like minded persons
94. 5ection G2 of 'ndian contract Act states that NA person to whom money has been paid or
anything deli)ered by mistake or undue coercion must repay or return it.O
"a# (istake of fact "b# (istake of law
"c# 6oth "a# < "b# "d# 3one of the abo)e
95. An insol)ent partner ceases to be a partner of firm
"a# 7n the date on which order of ad1udication is made
"b# 7n dissolution of the firm
"c# C0 days after dissolution of the firm
"d# C0 days from the date of ad1udication order
96. 8hen the performance of a contract depends on happening of certain e)ent and the e)ent
becomes impossible, such contracts becomes
"a# Enforceable "b# &awful
"c# -nlawful "d# 3one of the abo)e
97. As per the doctrine of NQQQQQQQQQQQQQQQO only parties to a contract can sue or be sued
under a contract
"a# +ri)ity of contract "b# .ight in rem
"c# .ight in personam "d# 5tranger to consideration
98. $he sub1ect matter of contract of sale must always be
"a# ;oods "b# 5pecific goods
"c# 9uture goods "d# All the abo)e
99. ;oods include as per sale of goods A*c
"a# (o)able property "b# 'mmo)able property
"c# 6oth "a# and "b# "d# 3one of the abo)e
100. An offer which can be accepted by any one who satisfy the terms and conditions, it is
called a
"a# 5pecial offer "b# ;eneral offer
"c# ,ounter offer "d# ,ross offer
Correct Questions __________________ 1 = --------------------
Wrong Questions _______________ - 0.25 = --------------------
N.A. Questions _________________ 0 = --------------------
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