CPT June 2016 Question Paper with Anskey (English Medium)

Disclaimer We have compiled of CPT June 2016 Question paper, based on the memory of students who have appeared for CPT exam. Questions asked in the examination may have inadequate/wrong information and/or ambiguous language. In that case the answers provided by the institute may differ from these ideal answers. Vidya Sagar Institute IS NOT RESPOSIBLE FOR ANY MISTAKES IN THIS QUESTION PAPER. Every effort has been made taken to give the best answers. Still if you find some errors please bring them to our notice through e-mail or call. Mail id: vsijaipur@yahoo.com . For Admission in CA – CPT, IPCC, Final CS – Foundation, Executive, Professional Contact Vidya Sagar Institute K-50, Bhawna Tower, Income Tax Colony, Tonk Road, Near Durga Pura, Bus Stand, Jaipur - 302018 www.vsijaipur.com e-mail vsijaipur@yahoo.com Ph. :- 7821821250, 7821821251, 7821821252, 7821821253, 7821821254 Mobile – 93514 68666 Admission Start for For Sure Success IPCC MAY 2017 Limited Seats (Only one Batch for English & one for Hindi Medium) From 27 th June 2016 Registration fee : ` 10,000 In case of negative result of CPT Registration Fee will be refundable. CPT – June 2016 Question Paper (Compiled By :- VSI, Jaipur. Based on Memory) Marks 100 Time : 2 Hours Session 1st Part A – Fundamentals of Accounting 01. Financial position of a business concern is ascertained on the basis of _____: (a) Records prepared under book – keeping process (b) Trial balance (c) Accounting Reports (d) None of these 02 On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This is: (a) An event (b) A transaction (c) A transaction as well as an event (d) Neither a transaction nor an event 03. Inventory is valued either at cost or market price whichever is lower, according to the principle of ____: (a) Conservatism (b) Matching (c) Accrual (d) None of these 04. Purchases = Rs. 25,00,000 70% of the goods are sold Closing inventory is valued at Rs. 5,00,000 instead of at Rs. 7,50,000. Which concept has been followed? (a) Conservatism (b) Cost (c) Accrual (d) Matching 05. Total assets = Rs. 3,06,000 Secured loans = Rs. 1,00,000 Unsecured loans = Rs. 60,000 Contingent Liabilities = Rs. 1,46,000 Capital = ? (a) Rs. 1,00,000 (b) Rs. 1,46,000 (c) Rs. 60,000 (d) Nil 06. Insurance claim received on machinery destroyed by fire is a ____ (a) Capital receipt (b) Revenue receipt (c) Capital expenditure (d) Revenue Expenditure 07 In Journal & ledger transactions are recorded in ______ order respectively: (a) Analytical (b) Chronological (c) Chronological & Analytical (d) Analytical & Chronological 08. If repair cost is Rs.30,000, whitewash expenses are Rs.6,000, cost of extension of building is Rs.3,00,000 and cost of improvement in electrical wiring system is Rs.22,800; the amount to be expensed is: (a) Rs. 3,58,800. (b) Rs. 52,800. (c) Rs. 36,000. (d) Rs. 3,30,000. 09. Errors can be detected ____: (a) Before the preparation of Trial Balance (b) After the preparation of Trial Balance, but before the preparation of final accounts (c) After the preparation of Final accounts (next accounting year) (d) All of the above 10. Which of the following statements is not true? (a) All Personal & Real accounts ultimately show some balance (b) The balances of Nominal accounts are transferred to Profit & Loss a/c (c) Rent a/c is a personal account but outstanding rent account is a nominal account (d) In ledger, accounts are opened separately 11. Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes: (a) A Credit to the cash received a/c of Rs.50,000 (b) A Credit to the account receivable account of Rs.50,000 (c) A Debit to the cash account of Rs.20,000 (d) A Debit to the accounts receivable account of Rs.20,000 12. From the following balances find out the total of trial balance: (e) Capital Rs. 4,00,000 Computer Rs. 25,000 AC & Furniture Rs. 1,00,000 Fixed deposits Rs. 2,00,000 Salaries Rs. 8,00,000 Fees Received Rs. 12,00,000 Traveling expenses Rs. 1,50,000 Rent & office expenses Rs. 2,40,000 Cash Rs. 1,80,000 Bank O.D Rs. 95,000 (a) Rs. 16,00,000 (b) Rs. 14,50,000 (c) Rs. 16,95,000 (d) Rs. 15,00,000 13. Sohan purchased goods for Rs.18,00,000 and sold 4/5th of the goods for Rs.21,60,000 and met expenses amounting to Rs.3,00,000 during the year, 2015. He counted net profit as Rs.4,20,000. Which of the accounting concepts was followed by him? (a) Entity. (b) Periodicity. (c) Matching. (d) Conservatism 14. Rent received from a tenant Rs. 18,000 was correctly entered in the cash book and posted to the debit of Rent a/c. The effect of this error on the trial balance will be (a) Debit total will be Rs. 36,000 more than the credit total (b) Debit total will be Rs. 18,000 more than the credit total (c) Subject to other entries being correct, the total will agree (d) None of these 15. BRS is a part of _____: (a) Financial Statements (b) Bank Book (c) Cash Book (d) None of these 16. Credit balance of bank pass book will be ___ to the account holder: (a) An asset (b) A liability (c) A provision (d) None of these 17 Overdraft balance as per Cash book Rs. 4,500 Cheques issued, but not presented Rs. 300,Rs. 150, Rs. 375 Cheques paid into bank account, but not cleared Rs. 1,200 Find the balance as per Pass Book (a) Rs. 3,300 Dr. (b) Rs. 6,925 Dr. (c) Rs. 4,875 Dr. (d) Rs. 4,125 Dr. 18. Opening inventory = Rs. 4,00,000 Cash sales = Rs. 2,00,000 Total sales = Rs. 17,00,000 Selling price = 125% of purchase price What is the cost of goods sold? (a) Rs. 15,60,000 (b) Rs. 13,60,000 (c) Rs. 15,00,000 (d) Rs. 11,00,000 19. Opening inventory = Rs. 23,200 Cost of goods sold = Rs. 3,22,800 Closing inventory = Rs. 24,000 Purchases =? (a) Rs. 3,22,000 (b) Rs. 2,99,600 (c) Rs. 2,98,800 (d) Rs. 3,23,600 20. Product A B C D E Cost (Rs.) 45,000 57,500 1,37,500 50,000 1,05,000 NRV (Rs.) 47,600 77,500 1,32,500 62,500 1,00,000 What is the value of inventory at the end of the year as per conservatism principle? (a) Rs. 3,95,000 (b) Rs. 3,85,000 (c) Rs. 4,20,100 (d) Rs. 3,48,000 21. The books of T Ltd. revealed the following information: Particulars Rs. Opening inventory 7,50,000 Purchases during the year 2014-15 22,50,000 Sales during the year 2014-2015 25,00,000 On March 31, 2015, the value of inventory as per physical Inventory-taking was Rs. 10,45,000. The company’s gross profit on sales has remained constant at 25%. The management of the company suspects that some inventory might have been pilfered by a new employee. What is the cost of goods sold & estimated cost of missing inventory? (a) Rs. 17,00,000, Rs. 75,000 (b) Rs. 18,75,000, Rs. 80,000, (c) Rs. 18,75,000, Rs. 75,000, (d) Rs. 17,00,000, Rs. 80,000, 22 On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015. (a) Rs. 72,000 (b) Rs. 1,02,000 (c) Rs. 30,000 (d) Rs. 1,00,000 23 From the following data, find out the gross profit on the inventory sold under weighted average price method 1st Jan - opening inventory - 1000 units @ Rs. 4 per unit 15th Jan Purchase - 1100 units @ Rs. 5 per unit 30th Jan Purchase - 1300 units @ Rs. 6 per unit Sales during the month - 3000 units @ Rs. 10 per unit (a) Rs. 14,735 (b) Rs. 15,000 (c) Rs. 14,300 (d) Rs. 15,100 24 Study the following table and answer: Particulars Rs. Opening Inventory 15,000 Closing Inventory 20,000 Purchases 2,80,000 Return outward 7,500 Return inward 10,000 Carriage inward 2,500 If gross profit is 20% of sales, the gross sales will be: (a) Rs.3,47,500 (b) Rs.3,37,500 (c) Rs.2,70,000 (d) Rs.3,34,375 25 A plant was purchased on 01-04-2010 for Rs.3,50,000. The useful life was estimated to be 5 years and scrap value as Rs.50,000. Calculate the rate of depreciation under Straight line method. (a) 17.14% (b) 20% (c) 15% (d) 17.5% 26. Which of the following statements is/are false? I. The terms ‘depreciation’, ‘depletion’ and ‘amortization’ convey the same meaning. II. Provision for depreciation A/c is debited when provision for depreciation A/c is created. III. The main purpose of charging the profit and loss A/c with the amount of depreciation is to spread the cost of an asset over its useful life for the purpose of income determination. (a) Only I) above (b) Only II) above (c) Only III) above (d) All I) II) and III) above 27. A machine was purchased on 01-04-2012 for Rs.15,00,000. The scrap value is estimated at Rs.50,000. Depreciation is charged at 15% p.a. under WDV method. The machine was sold on 01-07-2015 for Rs.9,04,115. Calculate the profit. (a) Rs. 17,472 (b) Rs. 47,026 (c) Rs. 17,073 (d) Rs. 67,472 28 A decrease in the provision for doubtful debts would result in _____: (a) Increase in liability (b) Decrease in liability (c) Decrease in net profit (d) Increase in net profit 29. Stock worth Rs. 50,000 was destroyed by fire. The claim was fully accepted by the insurance company. The journal entry is (a) Stock A/c Dr. 50,000 To Trading A/c 50,000 (b) P & L A/c Dr. 50,000 To Trading A/c 50,000 (c) Trading A/c Dr. 50,000 To Insurance claim A/c 50,000 (d) Insurance claim A/c Dr. 50,000 To Trading A/c 50,000 30. Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/c: (a) Rs. 500 (b) Rs. 3,500 (c) Rs. 1,000 (d) Rs. 1,500 31. Opening capital = Rs. 45,000 Interest on capital = Rs. 2,000 Interest on drawings = Rs. 5,000 Drawings = Rs. 14,000 Profit = Rs. 15,000 Closing Capital = ? (a) Rs. 63,000 (b) Rs. 43,000 (c) Rs. 47,000 (d) Rs. 30,000 32. Amount recovered from debtor, which was earlier written off as bad debt is debited to Cash A/c and credited to _______________ A/c: (a) Bad Debts (b) Bad debts recovered (c) Rahul (d) Sales 33. The net profit of X & Co. was Rs.7,02,000, before charging Mehta’s (Manager) salary and commission. Mehta was entitled to a salary of Rs. 6,000 per month plus a commission of 5% on net profit after charging his salary and commission. Calculate the amount payable to Mehta. (a) Rs. 72,000 (b) Rs. 1,02,000 (c) Rs. 60,000 (d) Rs. 1,03,500 34. When Del-credere commission is paid, bad debts will be debited to ____ A/c in the books of consignee: (a) Commission earned (b) Consignor (c) Credit receivable (d) Consignment 35. Goods sent on consignment = Rs. 2,00,000 Consignor’s expenses = Rs. 5,000 Consignee’s expenses = Rs. 2,000 Cash sales = Rs. 1,00,000 Credit sales = Rs. 1,10,000 Closing Inventory = Rs. 40,000 Ordinary Commission = Rs. 3,000 Del-credere commission = Rs. 2,000 Bad Debts = Rs. 2,000 Find the profit on consignment. (a) Rs.38,000 (b) Rs.36,000 (c) Rs.40,000 (d) Rs.43,000 36 Mr. X consigned goods costing Rs. 1,50,000 to Mr. Y at cost + 25%. 1/10 of the goods were lost in transit. Mr. Y sold 3/5th of the remaining goods at 10% above the invoice price. Calculate the amount of sales: (a) Rs. 1,85,625 (b) Rs. 1,01, 250 (c) Rs. 1,23,750 (d) Rs. 1,11,375 37. Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance? (a) Bar will remit Rs.69,160 to Aar (b) Aar will remit Rs.69,160 to Bar (c) Aar will remit Rs.69,000 to Bar (d) Bar will remit Rs.69,000 to Aar 38. Can a minor be admitted into a joint venture? (a) Can be admitted (b) Cannot be admitted (c) Can be admitted with the consent of other coventurers (d) Can be admitted for the benefit of minor 39. X sends out goods costing Rs.2,00,000 to Y. 3/5th of the goods were sold by consignee for Rs.1,40,000.Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of commission will be: (a) 5,667 (b) 5,800 (c) 6,000 (d) 5,600 40. A bill drawn and accepted for mutual help is known as ____ bill: (a) Accommodation (b) Trade (c) Ordinary (d) Retired 41. On 05-01-16, Mr. A draws a bill on Mr. B for 30 days after sight. The bill was accepted on 08-01-16. Then the date of maturity of the bill will be___________ : (a) 08-02-16 (b) 09-02-16 (c) 10-02-16 (d) 11-02-1 42. Mr. Sobby draws a two months bill of Rs. 50,000 on Mr. Dobby. Dobby accepts it on 01-02-16. Sobby discounts it on 15-02-16 at 18% per annum. On the due date of bill Dobby became insolvent and 50 paise in a rupee could only be recovered from his estate. Calculate the amount of bad debt: (a) Rs. 25,000 (b) Rs. 18,874 (c) Rs. 23,374 (d) Rs. 27,300 43. Sales for the year ended 31st March, 2010 amounted to Rs.10,00,000. Sales included goods sold to Mr. A for Rs.50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer’s risk. Therefore, such goods should be treated as part of: (a) Sales (b) Closing inventory (c) Goods in transit (d) Sales return 44. If goods are sent on sale or return basis, it will be treated as _____: (a) An ordinary sale and not recorded in the books (b) An ordinary sale and recorded in the books as normal sale (c) The goods are approved and no entry is passed in the books (d) None of these 45. A sent some goods costing Rs.3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs.800. At the end of the accounting period i.e. on 31st December, 2014, the remaining goods were neither returned nor were approved by him. The Inventories on approval will be shown in the balance sheet at Rs. (a) 2,000 (b) 2,700 (c) 2,700 less 25% of 2,700 (d) 3,500 46. P & Q are partners in a firm sharing profits and losses in the ratio of 5 : 3. R is admitted as a new partner for 1/5th share. Then the sacrificing ratio will be ____: (a) 4 : 6 (b) 1 : 2 (c) 5 : 3 (d) 1 : 1 47. A & B are partners in a firm with capitals of Rs.5,00,000 each. C joined as a new partner for 1/4th share in profits with a capital of Rs.8,00,000. The credit balance of Profit & Loss a/c is Rs.4,00,000. Find the value of hidden goodwill: (a) 14,00,000 (b) 10,00,000 (c) 18,00,000 (d) 12,00,000 48. Profit of the year = Rs. 6,00,000 Capital employed = Rs. 4,00,000 Normal rate of return = 15% Calculate the value of goodwill under capitalization method (a) Rs. 41,00,000 (b) Rs. 6,00,000 (c) Rs. 36,00,000 (d) Rs. 21,00,000 49. A & B are partners in a firm sharing profits and losses in the ratio of 5 : 3 with capitals of Rs.2,50,000 and Rs.2,00,000 respectively. C is admitted as a new partner who brings Rs.50,000 as capital and Rs.16,000 as goodwill for his 1/5th share. The closing capitals of all the partners will be (a) Rs. 2,60,000, Rs. 2,06,000, Rs. 50,000 (b) Rs. 2,58,000, Rs. 2,08,000, Rs. 50,000 (c) Rs. 2,58,000, Rs. 2,08,000, Rs. 66,000 (d) Rs. 2,66,000, Rs. 2,00,000, Rs. 50,000 50. Rohit, Suman and Rohan are partners sharing profits & losses in the ratio of 2 : 1 : 1. They took a JLP for Rs. 1,00,000. Besides they took a JLP for Rs. 1,00,000. they took policies severally amounting to Rs.50,000 each. Rohit died on 30th September, 2015. The surrender values of the policies will be 30% of the policy values. What is the share of Rohit in the life policies? (a) Rs. 90,000 (b) Rs. 1,25,000 (c) Rs. 75,000 (d) Rs. 1,00,000 51. According to SEBI guidelines, the minimum share application money is ____: (a) 2.5% of nominal value of share (b) 2.5% of issue price of share (c) 25% of nominal value of share (d) 25% of issue price of share 52. The subscribed share capital of S Ltd. is Rs.80,00,000 divided into shares of Rs.100 each. There were no calls in arrears till the final call was made. The final call made was paid on 77,500 shares. The calls in arrears amounted to Rs.67,500. The final call per share=? (a) Rs.27 (b) Rs.20 (c) Rs.25 (d) Rs.62.50 53. Reserve capital means: (a) The part of subscribed uncalled capital which will be called up at the time of liquidation only (b) Accumulated Profits (c) The part of Capital Reserve (d) (d) The part of Capital Redemption Reserve 54. Oye Ltd. Issued 10,000 equity shares of Rs. 100 each at a premium of 20%. The money is payable as Rs.30 (including premium) on application, Rs.50 on allotment, Rs.20 on First call & Rs.20 on Final call. The company received applications for 15,000 shares and allotment was made on prorata. H, the holder of 400 shares failed to pay allotment money and on his subsequent failure to pay the 1st call money, the company forfeited his shares. The amount to be transferred to Share Forfeiture A/c at the time of forfeiting his shares will be: (a) 12,000 (b) 32,000 (c) Nil (d) 10,000 55. A holder of 100 shares of Rs. 10 each, failed to pay the final call money of Rs. 4 per share. These shares were forfeited and reissued at Rs. 7 per share as fully paid up. The entry on reissue will be: (a) Bank A/c Dr. 700 To Share capital A/c 700 (b) Bank A/c Dr. 700 To Share forfeiture A/c 700 (c) Share forfeiture A/c Dr. 700 To Share capital A/c 700 (d) Bank A/c Dr. 700 Share forfeiture A/c Dr.300 To Share capital A/c 1000 56. WYE ltd redeemed 1,000, 10% preference shares of Rs.100 each at a premium of Rs.10 per share. The company had a balance of Rs.50,000 in general reserve and Rs.27,000 in Profit & Loss a/c. For the purpose of redemption the company issued 5,000 equity shares of Rs. 10 each at a premium of 20%. The amount to be transferred to Capital Redemption Reserve will be: (a) Rs. 50,000 (b) Rs. 1,00,000 (c) Rs. 60,000 (d) Rs. 77,000 57. Which of the following can be utilized for redemption of preference shares? (a) The proceeds of fresh issue of equity shares (b) The proceeds of issue of debentures (c) The proceeds of issue of fixed deposit (d) All of the above 58. Debentures can be _________. I. Mortgage Debentures or Simple Debentures II. Registered Debentures or Bearer Debentures. III. Redeemable Debentures or Irredeemable Debentures. IV. Convertible Debentures or Non-convertible Debentures. (a) Both I) and II) above (b) Both I) and III) above (c) Both II) and III) above (d) All of I), II), III) and IV) above. 59. Debenture interest: (a) Is payable only in case of profits (b) Accumulates in case of losses or inadequate profits (c) Is payable after the payment of preference dividend but before the payment of equity dividend (d) Is payable before the payment of any dividend on shares 60. If preference shares are redeemed out of divisible profits, the nominal value of preference shares should be transferred to ___: (a) Capital Reserve A/c (b) Capital Redemption Reserve A/c (c) General Reserve A/c (d) Contingent Reserve A/c 61. The subsequent change in law leads to _____________: (a) Supervening impossibility (b) Partial impossibility (c) Commercial impossibility (d) Material alteration 62. A telegraphed to B “will you sell me your house? Let me know the lowest price” B replied “Lowest price is Rs.900.” A agreed to uy and asked for title deeds. There is no reply from B. Is B under obligation to sell? (a) Yes, B should sell the house because the offer with the lowest price is accepted by A (b) No, there was no contract because B has communicated only the lowest price (c) Yes because communication of lowest price it self-forms a contract (d) No, because offer is of negative nature. 63. Doctrine of privity of contract means: (a) Third party can sue upon a contract (b) Consideration must move at the desire of promisor (c) Consideration may move from promisee or any other person (d) Consideration is valid when it moves at desire of promisor. 64. Which is false regarding consideration? (a) Consideration must be adequate (b) Consideration must be real (c) Consideration may move from third party (d) All of the above 65. If a creditor does not file a suit against buyer for recovery of price with is 3 years, the debt becomes : (a) Time barred and irrecoverable (b) Time barred and recoverable (c) Not time based (d) None of these 66. In case of sale of shares : (a) Shares can be sold to minor (b) Minor’s guardian can act on behalf of minor (c) Minor is a share holder for profits, but he has no voting rights . (d) Minor can become a member only in Register of members. 67. The agreement is void with _____________: (a) Mistake (b) Misrepresentation (c) Coercion (d) Fraud 68. In case of misrepresentation, parties have option to: (a) Alter the contract (b) Rescind the contract (c) Novate contract (d) Accord the contract 69. An agreement in which consideration is unlawful becomes _____________: (a) void (b) voidable (c) Valid (d) unenforceable 70. A and B entered into a contract where first part is legal and the second is illegal. Here former part is ____ and later part is ______ : (a) Void, valid (b) valid, void (c) Void, void (d) None of these 71. A buys a lottery ticket of Rs. 500/-. It comes under ____ agreement/contract: (a) Wagering (b) contingent (c) Uncertain (d) certain 72. An agreement in restraint of marriage is _____: (a) Fraud (b) Misrepresentation (c) Mistake (d) Opposed to public policy 73. In case of wagering agreement, the event is _________________: (a) Collateral (b) Certain (c) Uncertain (d) None of these 74. Wagering agreement is of _______ nature: (a) Contingent (b) Illegal (c) Void (d) None of these 75 _______ of contract can take place without consideration: (a) Alteration (b) Rescission (c) Novation (d) Remission 76. A promise can be performed by: (a) Promisor himself (b) Agent (c) Legal representation (d) All of the above 77. In an agreement to sell, transfer of property takes pace in _____: (a) past (b) present (c) Future (d) both (b) & (c) 78. Auctioneer is ____ of owner of goods: (a) Seller (b) Bailee (c) Agent (d) None of these 79. X agrees to deliver 100 kgs. Of wheat in exchange of 10 liters of milk. It is: (a) Contract of sale (b) Agreement to sell (c) Goods sent on approval (d) Barter 80. In an agreement to sell where goods are under the possession of seller and buyer breaches the contract, the remedy available to seller is : (a) Suit for damages (b) No suit can be filed (c) Suit for price (d) None of these 81. In a contract of sale, consideration can be : (a) In any form other than money (b) Only in the form of money (c) Gratuitous or non-gratuitous (d) None of these 82. A document becomes document of title to goods if _______ undertaking to deliver the goods to holder exists: (a) Statutory (b) Conditional (c) Unconditional (d) None of these 83. A Contracts with B to sell a new Car. But A delivers an old Car. Here is: (a) breach of contract (b) breach of exchange (c) breach of condition (d) breach of guarantee 84. Caveat emptor means: (a) The seller should be beware (b) The buyer should be beware (c) Both (a) & (b) (d) None of these 85. In a contract of Sale, Condition is ____ to main purpose of contract: (a) Essential (b) Collateral (c) Non essential (d) None of these 86. A horse is sold on sale or return basis where trial period is 3 days. Horse dies on second day with out fault of either party. Who has to bear the loss? (a) Seller (b) Buyer (c) Both (a) & (b) (d) None of these 87. The buyer of goods gets good title, if the seller had acquired goods under: (a) Void Contract (b) Contract (c) Voidable Contract (d) None of these 88. When agent sells goods on behalf of principal, the buyer gets good title where the agent is: (a) Ordinary agent (b) Mercantile agent (c) Deemed agent (d) None of these 89. In which of the following cases, the seller can exercise right of stoppage of goods in transit: (a) When buyer becomes insolvent (b) When possession is not transferred (c) When seller is unpaid (d) None of these 90. Some persons formed a group to collect money for the purpose of giving financial assistance to widows. Here is: (a) Partnership (b) no partnership (c) Either (a) or (b) (d) None of these 91. Which of the following is/ are partnership/s? (a) A and B invest money to buy goods in auction by customs authorities, to sell and to share profits there on equally. (b) Joint Hindu family business (c) A and B are Co-owners of a house and handed over it to C on lease basis They agreed to share rent equally (d) None of these 92. The partner who gets share its profits: (a) Sub partner (b) Nominal partner (c) Active partner (d) None of these 93. In case of partnership, dissolution can be done by notice in case of: (a) Partnership at will (b) Partnership for fixed time (c) Particular partnership (d) None of these 94. A partner can retire form the firm: (a) When assignee is appointed (b) When he attains certain age (c) In accordance with partnership deed (d) When the nominee becomes partner 95. Which of the following is incorrect? (a) A partner can be expelled by majority of Partners (b) A partner can be expelled in good faith (c) Power to expel partner must exist in Contract between partners (d) Opportunity of being heard is not required at the time of expulsion of partner 96. A,B and C are partners in a financial firm. X a customer of firm deposits certain securities with the firm for safe custody. A & B sell away the securities without the knowledge of C. who will be liable for damages? (a) Only A and B (b) A,B, and C are liable to x for the full values (c) A,B, and C are liable for nominal value (d) Nobody will be liable 97. Right of a partner to open a bank account on behalf of the firm in his own name is not with in the scope of ____ authority: (a) Implied (b) Express (c) Specified (d) Restrictive 98. Non registration of the firm will not effect the following: (a) Claim of set off below Rs.100/- (b) Suit by a third party against partners (c) Claim by official receiver of insolvent partner (d) All of the above 99. On which of the following grounds, a partner need not apply to the court for dissolution of the firm: (a) Insanity of partner (b) Perpetual losses (c) Misconduct of partner (d) Business becoming unlawful 100. In case of no agreement among partners insolvency of partner leads to: (a) Dissolution of firm (b) Dissolution of partnership as well as firm (c) Neither dissolution of firm nor dissolution of Partnership (d) None of these CA -IPCC IS EASIER THAN CLASS 12TH For Details visit : http://vsijaipur.com/ca-ipcc-may-2017/ CPT – June 2016 Question Paper (Compiled By :- VSI, Jaipur. Based on Memory) Marks 100 Time : 2 Hours Session 2nd Part A – General Economics 01. Micro Economics is the study of ________: (a) Individual parts of economy (b) Economy as a whole (c) Choice making (d) Development of economy 02. India is a _____ economy: (a) Capitalistic (b) Socialistic (c) Mixed (d) Federal 03. An economy achieves “productive efficiency” when: (a) Resources are employed in their most highly valued uses (b) The best resources are employed (c) The total number of goods produced is greatest (d) Goods and services are produced at least cost and no resources are wasted 04. Law of demand explains inverse relationship between _______: (a) Price and demand (b) Demand and Price (c) Income and demand (d) Demand and income 05. Which of the following would cause the demand curve for auto mobiles shift to the left? (a) An increase in price of auto mobiles (b) An increase in the cost of production of auto mobiles (c) Increase in buyer’s income (d) An increase in the interest rate paid to borrow money to pay for auto mobiles 06. The second glass of lemonade gives lesser satisfaction to a thirsty boy. This is clear case of: (a) Law of variable proportions (b) Law of diminishing returns (c) Law of diminishing marginal utility (d) Law of supply 07. The price elasticity at mid point of a straight line on demand curve is” (a) = 0 (b) > 1 (c) < 1 (d) = 1 08. Which of the following is not a property of indifference curve? (a) Indifference curve always touch X-axis (b) Indifference curve has negative slope (c) Indifference curve is convex to origin (d) Indifference curves never intersect each other 09. Find out value of X? No. of units MU TU 1 30 30 2 27 X (a) 30 (b) 54 (c) 57 (d) 15 10. As the price of commodity increases, normally its supply: (a) Decreases (b) Remain unchanged (c) Increases (d) Can’t be determined 11. Price elasticity of demand for a product is infinite under: (a) Perfect competition (b) Monopolistic competition (c) Monopoly (d) Oligopoly 12. The marginal rate of substitution ____ as a consumer moves on indifference curve: (a) Increases (b) Diminishes (c) Remains unchanged (d) Becomes zero 13. An indifference curve slopes down towards right since more of one commodity and less of another result in: (a) Same satisfaction (b) Greater satisfaction (c) Maximum satisfaction (d) Decreasing expenditure 14. The law of variable proportions is associated with ________________: (a) Short period (b) Long period (c) Both short & long periods (d) Neither short nor long period 15. Iso-Quant is also known as: (a) Product possibilities curve (b) Production indifference curve (c) Indifference curve (d) None of these 16. The market price of a good is more than opportunity cost of producing it, then _____: (a) Market price increases in the long run (b) Producer will increase supply in the long run (c) Resources will flow outward and there will be a decline in supply (d) There will not be any change until demand and supply are equal 17. Human capital refers to: (a) Savings by individuals (b) Mobilisation of savings (c) Human skills and abilities (d) Productive investment 18. Which of the following statement is false ? (a) Land has indestructible power (b) Land is passive factor (c) Capital is nature’s gift (d) Labour is mobile 19. The vertical difference between TVC and TC is equal to ________: (a) MC (b) AVC (c) TFC (d) None of thes 20. What happens to marginal cost when average cost increases? (a) Marginal cost is below average cost (b) Marginal cost is above average cost (c) Marginal cost is equal to average variable cost (d) Marginal cost is equal to average cost 21. Fixed cost curve is normally: (a) Starts from the Origin (b) ‘U’ shaped (c) Vertical (d) Horizontal 22. A rational producer will produce in the stage in which marginal product is positive and (a) MP > AP (b) MP = AP (c) MP < AP (d) MP is ‘O’ 23. Comparing a monopoly and competitive firm the monopolist will ________: (a) Produce less at lower price (b) Produce more at lower price (c) Produce less at higher price (d) Produce zero at lower price 24. Which one of the following expressions is correct for marginal revenue? (a) MR = (b) MR = AR x (c) MR = (d) None of the above 25. If equilibrium is present in a market, then: (a) Quantity demanded is equal to quantity supplied (a) Quantity demanded exceeds quantity supplied (b) Quantity supplied exceeds quantity supplied (c) The price of the product will tend to rise 26. If the price of a commodity is fixed, then every increase in its sold quantity the total revenue will ______ and the marginal revenue will ____: (a) Increases, also increases (b) Increases, remain unchanged (c) Increases, decreases (d) Remains fixed, increase 27. A discriminating monopolist will charge a higher price in the market in which the demand for its product is: (a) Highly elastic (b) Relatively elastic (c) Relatively inelastic (d) Perfectly elastic 28. The reason for the kinked demand curve is that: (a) The oligopolist believe that competitors will follow output increases but not output reductions (b) The oligopolist believe that competitors will follow price increases but not output reductions (c) The oligopolist believe that competitors will follow price cuts but not price rises (d) The oligopolist believe that competitors will follow price increases but not output increases 29. If a firm under monopoly wants to sell more, its average revenue curve will be a _____ line: (a) Upward sloping (b) Downward sloping (c) Vertical (d) Horizontal 30. What is Net National Product? (a) The money value of final goods & services produce annually in the year (b) The money value of annual service generation in the account (c) The money value of tangible goods produced annually in the economy (d) The money value of tangible goods available in the economy 31. Which of the following is not a Khariff crop? (a) Jowar (b) Maize (c) Groundnut (d) Wheat 32. The concept of ‘entitlements’ was introduced by ______ : (a) Pranab Mukharjee (b) Amartya sen (c) Manmohan singh (d) Jagadeesh bhagawathi 33. Which of the following is not correct? (a) Direct tax is proportional in nature (b) An indirect tax is a progressive in nature (c) A Direct tax cannot be shifted (d) An indirect tax can be shifted to others 34. Over the years in India cost of tax collection is: (a) Increases (b) Decreases (c) Remains unchanged (d) Indeterminate 35. The ratio of dependents to working age population is called ______: (a) Demographic dividend (b) Demographic transition (c) Unemployment ratio (d) Dependency ratio 36. Which of the following is a direct tax? (a) Personal income tax (b) Sales tax: (c) Service tax (d) Excise duties 37. ______ is the best indicator of economic development of any country: (a) Agriculture (b) Transport (c) Gross production (d) Percapita income 38. The share of which one of the following sectors has increased rapidly in recent years in the GDP of India: (a) Agriculture (b) Industry (c) Services (d) All of the above 39. Balance of payments _____: (a) Current account for goods and services only (b) A capital account of financial assets only (c) Official settlement accounts only (d) All of the above 40. The Philips curve describe the relationship between: (a) Savings & investment (b) Marginal tax rate and tax revenue (c) Unemployment rate and inflation rate (d) The budget deficit and the trade deficit 41. Among all the states of India _____ has the lowest birth rate: (a) Kerala (b) Maharastra (c) Delhi (d) Uttar Pradesh 42 What is the average calories required in rural areas for measuring poverty? (a) 2,400 calories per person per day (b) 2,800 calories per person per day (e) 2,100 calories per person per day (d) None of these 43. Multi Dimensional Poverty index is used by ______ to measure poverty: (a) Human Development Report (b) Tendulkar committee (c) NSSO (d) Planning commission of India 44. Which of the following statements defines the density of population? (a) No. of persons living per unit area (b) No. of persons living in a country (c) Change in the no. of inhabitants of a country during a specific per unit of time (d) Absolute numbers added every year 45. Inflation is _______: (a) Persistent increase in general level of price (b) Persistent increase in price of individual goods, services & resources (c) One time increase in general level of price (d) One time increase in price of individual goods, services & resources 46. Special Drawing Rights was created by ______: (a) WTO (b) World Bank (c) IMF (d) UNO 47. Which of the following statement is not correct about the WTO? (a) WTO came to existence on 1st January, 1995 (b) WTO is main organ for implementing multilateral trade agreements (c) WTO is legal entity (d) WTO has lesser scope than its predecessor GATT 48. What does devaluation of a currency mean? (a) Decrease in the internal value of money (b) Decrease in the external value of money (c) Decrease both in the internal and external values of money (d) None of these 49. Which of the following statements about repo rate is not correct? (a) At this rate RBI borrows money from banks for short period (b) A reduction repo rate helps bank to get money at cheaper rate (c) An increase in repo rate makes borrowings from RBI expensive (d) At this rate banks borrow money from RBI 50. Which of the following is broad money? (a) M1 (b) M2 (c) M3 (d) M4 51. x, y, z together starts a business. If x invests 3 times as much as y invests and y invests two third of what z invests, then the ratio of capitals of x, y, z is _______: (a) 3 : 9 : 2 (b) 6 : 3 : 2 (c) 3 : 6 : 2 (d) 6 : 2 : 3 52. If 2x+y = 22x-y = then the respective values of x and y are _____: (a) 1, 1/2 (b) ½, 1 (c) ½, ½ (d) None of these 53. If log4 (x2 +x) – log4 (x+1) = 2 then the value of x is: (a) 2 (b) 3 (c) 16 (d) 8 54. log x + log (x2/y) + log (x3/ y2) …………………… n terms: (a) [n log + log (xy)] (b) [log + log (xy)] (c) [n log - log (xy)] (d) None of these 54. The value of + + = _____________ : (a) 0 (b) 1 (c) 5 (d) 60 56. The integral part of a logarithm is called ____, and the decimal part of a logarithm is called _____. (a) Mantissa, Characteristic (b) Characteristic, Mantissa (c) Whole, Decimal (d) None of these 57. The value of + + : (a) 0 (b) 1 (c) -1 (d) ∞ 58. If difference between the roots of the equation x2 -kx +8 =0 is 4 then the value of K is: (a) 0 (b) ± 4 (c) ± 8 (d) ± 4 59. If a line passes through the midpoint of the line segment joining the points (-3,-4) & (-5,6) and its slope is 4/5 then the equation of the line is: (a) 4x - 5y + 21 = 0 (b) 4x – 5y + 11 = 0 (c) 5x – 4y + 21 = 0 (d) 5x + 4y + 11 = 0 60. Let E1, E2 are two linear equations in two variables x and y. (0, 1) is a solution for both the equations E1 & E2. (2, -1) is a solution of equation E1 only and (-2, -1) is a solution of equation E2 only then E1, E2 are ______: (a) x = 0, y = 1 (b) 2x – y = -1, 4x + y = 1 (c) x + y = 1, x – y = -1 (d) x + 2y = 2, x + y = 1 61. The common region of x + y ≤ 6; x + y ≥ 3, is for shown by shaded region: (a) (b) Y Y O X O X x+y = 3 x+y = 6 x+y = 3 x+y = 6 (c) Y (d) None of these O X +y = 3 x+y = 6 62. If an amount is kept at Simple Interest, it earns Rs.600 in first 2 years but when kept at Compound Interest it earns at interest of Rs.660 for the same period; then the rate of interest and principle amount respectively are: (a) 20%; Rs.1200 (b) 10%; Rs.1200 (c) 20%; Rs.1500 (d) 10%; Rs.1500 63. Mr. X bought an electronic item for Rs.1000. What would be the future value of the item after two years, if the value is compounded semiannually at the rate of 22% per annum? (a) Rs.1488.40 (b) Rs.1518.07 (c) Rs.2008.07 (d) Rs.2200.00 64. There are 10 students in a class, including 3 girls. The number of ways arrange them in a row, when any two girls out of them never come together: (a) 8p3 x 7! (b) 3p3 x 7! (c) 8p3 x 10! (d) None of these 65. In how many ways can a selection of 6 out of 4 teachers and 8 students be done so as to include atleast two teachers? (a) 220 (b) 672 (c) 896 (d) 968 66. The maximum number of points of intersection of 10 circles will be: (a) 2 (b) 20 (c) 90 (d) 180 67. If , , are in Arithmetic Progression then a2, b2, c2 are in ________: (a) Arithmetic Progression (b) Geometric Progression (c) Both A.P & G.P (d) None of these 68. A Geometric Progression consists of 2n terms. If the sum of the terms occupying the odd places is S1 and that of the terms in even places is S2 , the common ratio of the progression is: (a) n (b) 2S1 (c) S2/ S1 (d) S1/ S2 69. If set A = {x: x/2  Z, 0 ≤ x ≤ 10}, B = {x : x is one digit prime number} and C = {x : x/3  N, x ≤ 12} then A ⋂ (B ⋂ C) : (a) ɸ (b) Set 1 (c) Set 2 (d) Set 3 70. Let A be the set of the squares of natural numbers and x  A, y  A then _______: (a) x + y  A (b) x - y  A (c) x/y  A (d) xy  A 71. The domain ‘D’and range ‘R’ of the function f(x) = 2 - |x +1| is: (a) D = Real numbers, R = (2, ∞) (b) D = Integers, R = (0, 2) (c) D = Integers, R = (-∞, ∞ ) (d) D = Real numbers, R = (-  , 2] 72. is equal to: (a) 0 (b) 1 (c) -1 (d) Does not exist 73. Let f(x) = x2 if x ≥ 0 = αx + β, if x < 0 is continuous at x = 0 Then find value of α and β: (a) α = any real number, β = 0 (b) α = 0, β = 0 (c) β = any real number, α = 0 (d) None of these 74. Y = then =: (a) (b) (c) (d) None of these 75. Evaluate (a) log+c (b) ½ log+c (c) ½ log+c (d) -log+c 76. (a) (b) (c) (d) None of these 77. Data collected on religion from the census reports are: (a) Primary data (b) Secondary data (c) Sample data (d) (a) or (b) 78. If the Arithmetic Mean of two numbers is 30 and Geometric Mean is 24 then what will be those two numbers? (a) 36 and 24 (b) 30 and 30 (c) 48 and 12 (d) None of these 79. If same amount is added to or subtracted from all the value of the individual series then the standard deviation and variance both shall be: (a) Changed (b) Unchanged (c) Same (d) None of these 80. The SD of first n natural numbers is _________: (a) (b) (c) (d) None of these 81. If mean and coefficient of variation of the marks of n students is 20 and 80 respectively. What will be variance of them: (a) 256 (b) 16 (c) 25 (d) None of these 82. If r = 0.6 then the coefficient of non-determination is _____: (a) 0.4 (b) -0.6 (c) 0.36 (d) 0.64 83. If the coefficient of correlation between x and y variables is –0.90 then what will be the coefficient of determination: (a) 0.10 (b) 0.81 (c) 0.94 (d) None of these 84. The two lines of regression become identical when: (a) r = 1 (b) r = -1 (c) r = 0 (d) (a) or (b) 85. The regression are as follows Regression equation of X on Y : 6X-2Y=20 Regression equation of Y on X : 64X-45Y=24 What will be the mean of X and Y? (a) = 8, = 6 (b) = 6, = 6 (c) = 6, = 8 (d) = 8, = 8 86. If P(A) = 2/3, P(B) = 3/5, P(A U B) = 5/6 then P(A/B’) is: (a) 7/12 (b) 5/12 (c) 1/4 (d) ½ 87. Two dice are tossed what is the probability that the total is divisible by 3 or 4. (a) 20/36 (b) 21/36 (c) 14/36 (d) None of these 88. If 2 dice are rolled simultaneously then the probability that their sum is neither 3 nor 6 is: (a) 0.5 (b) 0.75 (c) 0.25 (d) 0.80 89. In a game, cards are thoroughly shuffled and distributed equally among four players. What is the probability that a specific player gets all the four kings? (a) 52c4 x 48c13 (b) 4c4 x 48c9 52c11 52c13 (c) 13c9 x 39c9 (d) 4c4 x 39c9 52c13 52c13 90. A bag contains 4 red and 5 black balls. Another bag contains 5 red, 3 black balls. If one ball is drawn at random from each bag. Then the probability that one red and one black ball drawn is _______. (a) 12/72 (b) 25/72 (c) 37/72 (d) 13/72 91. For a Poisson variate X, P(X=1)=P(X=2). What is the mean of X? (a) 1 (b) 3/2 (c) 2 (d) 5/2 92. If a discrete random variable follows uniform distribution and assumes only the values 8,9,11,15,18,20. Then P(X ≤ 15) is ____: (a) 1/2 (b) 1/3 (c) 2/3 (d) 2/7 93. The normal curve is: (a) Positively skewed (b) Negatively skewed (c) Symmetrical (d) All these 94. A sample may be defined as a part of population is selected with a view to representing in all its ____: (a) Units (b) Characteristics (c) Costs (d) Errors 95. A parameter is a characteristic of: (a) Population (b) Sample (c) Both a) & b) (d) None of the above 96. The measure of divergence is ____ as a size of the sample approaches that of the population: (a) More (b) Less (c) Same (d) None of these 97. If price are changing year by year, then what should be preferred: (a) Fixed base index number (b) Fisher’s ideal index number (c) Chain base index number (d) Both (a) and (c) 98. Purchasing power of money is: (a) Reciprocal of price index number (b) Equal to price index number (c) Unequal to price index number (d) None of these 99. In the year 2010 the monthly salary was Rs.24,000. The consumer price index number was 140 in the year 2010 which rises to 224 in the year 2016. If he has to be rightly compensated what additional monthly salary to be paid to him: (a) Rs. 14,400 (b) Rs. 38,400 (c) Rs. 7,200 (d) None of these 100. If ∑ p0q0 = 1360, ∑ pnq0 = 1900, ∑ p0qn = 1344, ∑ pnqn = 1880 then the Laspeyre’s index number is: (a) 0.71 (b) 1.39 (c) 1.75 (d) None of these PART A : FUNDAMENTALS OF ACCOUNTING & MERCANTILE LAW 1 C 11 B 21 B 31 B 41 C 51 D 61 A 71 A 81 B 91 A 2 A 12 C 22 B 32 B 42 A 52 A 62 B 72 D 82 C 92 C 3 A 13 C 23 A 33 B 43 A 53 A 63 B 73 C 83 C 93 A 4 A 14 A 24 A 34 A 44 B 54 D 64 A 74 A 84 B 94 C 5 B 15 D 25 A 35 A 45 B 55 D 65 A 75 D 85 A 95 D 6 A 16 A 26 B 36 D 46 C 56 A 66 B 76 D 86 A 96 B 7 C 17 C 27 A 37 A 47 B 57 A 67 A 77 C 87 C 97 A 8 C 18 B 28 D 38 B 48 C 58 D 68 B 78 C 88 B 98 D 9 D 19 D 29 D 39 A 49 A 59 D 69 A 79 D 89 A 99 D 10 C 20 B 30 A 40 A 50 A 60 B 70 B 80 A 90 B 100 B PART B : GENERAL ECONOMICS & QUANTITATIVE APTITUDE 1 A 11 A 21 D 31 D 41 A 51 D 61 A 71 D 81 A 91 C 2 C 12 B 22 C 32 B 42 A 52 A 62 C 72 D 82 D 92 C 3 D 13 A 23 C 33 B 43 A 53 C 63 B 73 A 83 B 93 C 4 A 14 A 24 A 34 A 44 A 54 A 64 A 74 A 84 D 94 B 5 D 15 B 25 A 35 D 45 A 55 B 65 B 75 B 85 C 95 A 6 C 16 B 26 B 36 A 46 C 56 B 66 C 76 B 86 A 96 B 7 D 17 C 27 C 37 D 47 D 57 B 67 A 77 B 87 A 97 C 8 A 18 C 28 C 38 C 48 B 58 D 68 C 78 C 88 D 98 A 9 C 19 C 29 B 39 D 49 A 59 A 69 A 79 B 89 B 99 A 10 C 20 B 30 A 40 C 50 C 60 C 70 D 80 A 90 C 100 B