127. Price support policy means:
(a) Prices at which government would be buying agricultural products from farmers
(b) Prices at which farmers will be selling goods to the private sector
(c) Subsidy received by farmers from government
(d) None of the above
128. Stagflation:
(a) means prices are falling and purchasing power is increasing
(b) is in the form of a low rate of growth combined with the general price level increase
(c) means high rate of growth combined with rise in the general price level
(d) means that due to increase in the cost of products, prices of final products are increasing
129. NPE stands far
(a) National Policy on Education (b) Nuclear Policy on Electronics
(c) National Policy on Electronics (d) National Policy on Elections
130. Sarva Shiksha Abhiyan was launched in the year
(a) 2000-01 (b) 2001-02
(c) 2002-03 (d) 2004-05
131. Secondary education prepares students in the age group of:
(a) 14-16 years (b) 14-18 years
(c) 12-18 years (d) None of the above
132. National Literacy mission was launched for:
(a) Primary education (b) Secondary education
(c) Adult education (d) All of the above
133. Postal system was started in India in the year:
(a) 1837 (b) 1847
(c) 1857 (d) 1867
134. Which is not the problem faced by Indian ports?
(a) Inadequate dredging and container handling facilities
(b) Inefficient and non optimal deployment of port equipment
(c) Proper coordination in the entire chain
(d) Operational constraints such as frequent break down of cargo handling equipment due to
obsolescence
135. GRT stands for
(a) Gross Registered Tonnage (b) Gross Regular Tonnage
(c) Gross Regulated Tonne (d) Gross Registered Tollage
Common Proficiency Test (CPT) Volume - II 45
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MODEL TEST PAPER - 2
136. Pawan Hans Helicopters Ltd provides helicopter support services to:
(a) Petroleum sector
(b) State and Union Territory government
(c) Public sector undertaking
(d) All of the above
137. India has a long coastline of:
(a) 7517 Km, 12 major ports and 200 minor ports
(b) 7518 Km, 12 major ports and 87 minor ports
(c) 7517 Km, 11 major ports and 187 minor ports
(d) 7577 Km, 12 major ports and 187 minor ports
138. For the prices- taking firm:
(a) Marginal revenue is less than price
(b) Marginal revenue is equal to price
(c) Marginal revenue is greater than price
(d) The relationship between marginal revenue and price is indeterminate
139. A monopolist is able to maximize his profits when:
(a) His output is maximum
(b) He charges high price
(c) His average cost is minimum
(d) His marginal cost is equal to marginal revenue
140. In Imperfect competition:
(a) Excess capacity always exists
(b) Excess capacity never exists
(c) Excess capacity may or may not exist
(d) None of the above
141. In long run, in perfectly competitive market there will be:
(a) Normal profit (b) Super normal profits
(c) Losses (d) None of the above
142. In perfect competition utilization of resources is
(a) Partial (b) Moderate
(c) Full (d) Over
143. Which of the following statements is false?
(a) For equilibrium the main condition is MC=MR
(b) AR curve and Demand curve are same
(c) MC and AC curves are U-shaped in every market
(d) None of the above
46 Common Proficiency Test (CPT) Volume - II
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144. Product differentiation is the most important feature of:
(a) Monopolistic Competition (b) Monopoly
(c) Oligopoly (d) Perfect Completition
145. MC=MR and MC cuts MR from below is a true equilibrium condition in:
(a) Short run (b) Long run
(c) Both in short run and long run (d) None of the above
146. Price discrimination occurs when:
(a) Producer sells a specific commodity or service to different buyers for the same price
(b) Producer sells specific commodity or service to different buyers at two or more different
prices due to differences in cost
(c) Producer sells a specific commodity or service to different buyers at two or more different
prices for reasons not associated with difference in cost
(d) Producer under perfect competition sells different goods to consumers at different prices
147. MR curve under Monopoly lies between AR and Y-axis because, the rate of decline of the
MR is
(a) Just half of the rate of decline of AR
(b) Just equal to the rate of decline of AR
(c) Just triple the rate of decline of the average revenue
(d) Just double the rate of decline of the average revenue
148. Relationship between AR, MR and Price elasticity of demand is
(a) MR = AR + [e -1/e] (b) MR = AR x [e -1/e]
(c) AR = MR x [e -1/e] (d) MR = AR x [e/e -1]
149. In a perfectly competitive firm, MC curve above AVC is the_____Curve of the firm
(a) average cost (b) marginal revenue
(c) demand (d) supply
150. In the long run, normal profits are included in the ______ curve.
(a) LAC (b) LMC
(c) AFC (d) SAC
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)
151. If (P+1)th term of A.P. is twice the (q+1)th term; then the ratio of (P+q+1)th term and
(3P+1)th term is:
(a) 1:2 (b) 2:1
(c) 1:3 (d) None of these
Common Proficiency Test (CPT) Volume - II 47
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MODEL TEST PAPER - 2
152. If the common difference of an A.P. equals to the first term, then the ratio of its mth term
and nth term is:
(a) n:m (b) m:n
(c) m2:m2 (d) None of these
1 1
153. If the mth term of A.P. is and the nth term is , then its mnth term is:
n m
(a) 1 (b) –1
(c) 0 (d) None of these
1 1 1
154. Sum the series upto n terms + + +............
2.5 5.8 8.11
n −n
(a) 2(3n+2) (b) 2(3n+2)
n
(c) 2(3n−2) (d) None of these
155. Which term of the series 0.004 + 0.02 + 0.1 + ……………… is 12.5
(a) 5 (b) 10
(c) 6 (d) None of these
157. Find the compound interest on Rs. 2,000 at 5% per annum, compounded yearly for 2½
years.
(a) Rs. 250 (b) Rs. 250.50
(c) Rs. 260.12 (d) None of these
1 1 1
158. At what rate percent s upto n terms + + +............
2.5 5.8 8.11
n −n
(a) 2(3n+2) (b) 2(3n+2)
n
(c) 2(3n−2) (d) None of these
159. If the compound interest on a certain sum for 2 years at 3% be Rs. 101.50, what would be
the S.I.?
(a) Rs. 100 (b) Rs. 200
(c) Rs. 300 (d) None of these
48 Common Proficiency Test (CPT) Volume - II
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160. The difference between the compound interest and the Simple Interest on a certain sum of
money at 5% per annum for 2 years is Rs. 1.50. Find the sum.
(a) Rs. 500 (b) Rs. 700
(c) Rs. 600 (d) None of these
161. A batsman in his 17th innings makes a score of 85 and thereby increases his average by 3.
What is his average after 17th innings?
(a) 37 (b) 35
(c) 36 (d) None of these
162. A person travels from A to B at the rate of 20 km/h and from B to A at the rate of 30 km/hr.
What is the average rate for whole journey?
(a) 20 km./hr. (b) 24 km./hr.
(c) 30 km./hr. (d) None of these
163. A person divides his journey into three equal parts and decides to travel on three parts at
the speeds of 40, 30 and 15 km/hr respectively. Find his average speed during the whole
journey.
(a) 30 km./hr. (b) 24 km./hr.
(c) 35 km./hr. (d) None of these
164. A person covers 12 km at 3 km/hr, 18 km at 9 km/hr and 24 km at 4 km/hr. Find the average
speed in covering the whole distance.
(a) 4.5 km./hr. (b) 5 km./hr.
(c) 10 km./hr. (d) None of these
1
165. A person runs the first th of the distance at 2 km/hr, the next one half at 3 km/hr and the
5
remaining distance at 1 km/hr. Find his average speed.
15 30
(a) km./hr. (b) km./hr.
17 17
17
(c) km./hr. (d) None of these
30
166. The mean of 100 observations is 50. If one of the observations which was 50 is replaced by
40, the resulting mean will be
(a) 40 (b) 49.90
(c) 50 (d) None of these
Common Proficiency Test (CPT) Volume - II 49
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MODEL TEST PAPER - 2
167. The combined mean of three groups is 12 and the combined mean of first two groups is 3. If
the first, second and third groups have 2, 3 and 5 items respectively, then the mean of third
group is
(a) 10 (b) 21
(c) 12 (d) 13
168. Mode is
(a) Least frequent value (b) Middle most value
(c) Most frequent value (d) None of these
169. If the arithmetic mean of two numbers is 10 and their geometric mean is 8, the numbers are
(a) 20,5 (b) 16,4
(c) 15,5 (d) 12,8
170. A frequency distribution can be presented graphically by a
(a) Pie diagram (b) Histogram
(c) Pictogram (d) Line diagram.
171. In co - variance method the sum of difference of rank is
(a) 1 (b) –1
(c) 0 (d) Cannot say
172. The relation between the production of Pig iron and Soot content in a factory is
(a) Positive (b) Negative
(c) 0 (d) None of these
173. If the relation between two random variables x and y is 2x + 3y = 4, then the correlation
coefficient between them is
(a) –2/3 (b) 1
(c) –1 (d) None of these
174. For a two way frequency table having (m×n) classification the total number of cells is
(a) m (b) n
(c) m + n (d) mn
175. For a m×n two way or bivariate frequency table, the maximum number of marginal
distributions is
(a) 1 (b) 2
(c) m+n (d) m.n
50 Common Proficiency Test (CPT) Volume - II
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176. The correlation coefficient r is the ………….. of the two regression coefficients.
(a) G.M. (b) H.M.
(c) Arithmetic Mean (d) None of these
177. Each and every index number is independent of Unit of measurement.
(a) True (b) False
(c) Both (a) & (b) (d) None of these
∑PQ
P ×Q = 1 1
178. For factor reversal test: 01 01 ∑PQ = True Value Ratio (T.V.R.) This is
0 0
(a) False (b) True
(c) Both (a) & (b) (d) None of these
179. Factor Reversal test is satisfied by
(a) Fisher’s Ideal Index Number (b) Laspeyre’s Index Number
(c) Paasche’s Index Number (d) All of the above
180. During a certain period, the cost of living index number goes up from 110 to 200 and the
salary of the worker is also raised from Rs. 3,250 to Rs. 5,000. Does the worker really gain?
(a) No (b) Yes
(c) Cannot determine (d) None of these
181. Ticket numbered 1 to 20 are mixed up and then a ticket is drawn at random. What is the
probability that the ticket drawn bears a number which is multiple of 3 or 7?
1 2
(a) (b)
5 5
3
(c) (d) None of these
5
182. A card is drawn from a pack of playing cards at random. What is the probability that the
card drawn is neither a king nor a heart?
4 9
(a) (b)
13 13
2
(c) (d) None of these
13
183. A bag contains 3 red, 5 yellow and 4 green balls. 3 balls are drawn at random. Find the
chance that balls drawn contain exactly two green balls.
Common Proficiency Test (CPT) Volume - II 51
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MODEL TEST PAPER - 2
12 10
(a) (b)
55 55
13
(c) (d) None of these
55
184. A husband and a wife appear in an interview for two vacancies in the same post. The
probability of husband’s selection is 3/5 and that of wife’s selection is 1/5. Then the probability
that only one of them is selected is
16 17
(a) (b)
25 25
14
(c) (d) None of these
25
185. A bag contain 4 white balls and 2 black balls. Another contains 3 white and 5 black balls. If
one ball is drawn from each bag. Then the probability that one is white and one is black is
11 13
(a) (b)
24 24
15
(c) (d) None of these
25
186. Poison distribution is a biparametric distribution. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
187. Binomial distribution is a biparametric distribution. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
188. If x and y are two independent variance follow poison distribution in the parameters
m & m respectively. If z = x + y and also follows the poison distribution then the
1 2
parameter of Z is
(a) m – m (b) m . m
1 2 1 2
(c) m + m (d) None of these
1 2
189. If x and y are two independent variables such that x ~ B (n , P) and y ~ B (n , p) then the
1 2
parameter of Z = x + y is
(a) (n +n ), P (b) (n –n ), P
1 2 1 2
(c) (n +n ), 2P (d) None of these
1 2
52 Common Proficiency Test (CPT) Volume - II
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190. The Binomial or poison distribution could be uni–modal or bi–modal. This is
(a) False (b) True
(c) Either (a) or (b) (d) None of these
191. If x be a normal variate with mean 3 and variances 16, find the value of t such that:
P (3 < x <t) = 0.4772 (Given: P(Z < 2) = 0.9772, where Z is N (0, 1) variate.)
(a) 10 (b) 11
(c) 12 (d) None of these
192. A bag contains 5 red and 4 blackballs. A ball is drawn at random from the bag and put into
another bag contains 3 red and 7 black balls. A ball is drawn randomly from the second bag.
What is probability that it is red?
32 1
(a) (b)
99 3
74
(c) (d) None of these
99
193. A committee of 4 persons is to be appointed from 3 officers of the production department, 4
officers of the purchase department, two officers of the sales department and 1 Chartered
Accountant. Find the chance there must be one from each category.
4 3
(a) (b)
35 35
1
(c) (d) None of these
7
194. A committee of 4 persons is to be appointed from 3 officers of the production department, 4
officers of the purchase department, two officers of the sales department and 1 Chartered
Accountant. Find the chance that it should have at least one from the purchase department.
4 39
(a) (b)
35 42
42
(c) (d) None of these
105
195. A committee of 4 persons is to be appointed from 3 officers of the production department, 4
officers of the purchase department, two officers of the sales department and 1 Chartered
Accountant. Find the chance that the Chartered Accountant must be in the committee.
4 39
(a) (b)
35 42
Common Proficiency Test (CPT) Volume - II 53
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MODEL TEST PAPER - 2
42
(c) (d) None of these
105
196. Six boys and five girls are to be seated in a row such that no two girls and no two boys sit
together. Find the number of ways in which this can be done.
(a) 86,400 (b) 85,000
(c) 85,400 (d) None of these
197. A six faced die is so biased that it is twice as likely to show an even number as an odd number
when it is thrown. What is the probability that the sum of the two numbers is even.
4 5
(a) (b)
9 9
3
(c) (d) None of these
8
198. A and B select a digit at random from 0, 1, 2, 3, ………….. 9 independently. Find the chance
that the product of the two digits chosen is Zero.
1 2
(a) (b)
5 5
4
(c) (d) None of these
5
195 n+ 3P
x = − 3
199. In the sequence (x ) where & n belongs to N, the set of natural numbers.
n n 4n! (n+1)!
The number of positive terms is
(a) 1 (b) 2
(c) 4 (d) 5
1 1 1
, ,
200. If are in A.P., then x, y, z are in
x+y 2y y +2
(a) A.P. (b) G.P.
(c) Cannot determined (d) None of these
❖❖❖
54 Common Proficiency Test (CPT) Volume - II
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BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 3
Time : 4 hours Maximum Marks : 200
The test is divided into four sections.
Questions 1 to 200 have only one correct answer and carry + 1mark for each correct answer and
– 0.25 mark for each wrong answer.
SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)
1. ............... is recorded in purchase book.
(a) Credit purchases of goods dealt in by firm
(b) Cash purchases of goods dealt in by firm
(c) All purchases of goods dealt in by firm.
(d) None of the above.
2. When will the bill mature if the date of maturity of a bill is a holiday.
(a) Holiday itself (b) Other agreed day
(c) Preceding working day (d) Next working day
3. Under Bank reconciliation statement while adjusting the cash book
(a) All the errors and omissions in the passbook are taken into consideration
(b) Delays in recording in the passbook due to difference in timing are taken into consideration
(c) All the errors and omission in the cashbook are taken into consideration
(d) All of the above
4. Memorandum joint venture account is a
(a) Personal A/c (b) Real A/c
(c) Nominal A/c (d) None of the above
Common Proficiency Test (CPT) Volume - II 55
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MODEL TEST PAPER - 3
5. .................. is not required in Promissory Note
(a) Acceptance (b) Noting
(c) Discounting (d) None of the above
6. Loss leads to a reduction in
(a) Capital (b) Income
(c) Liabilities (d) None of the above
7. Transaction between business and owner are recorded following ________ concept
(a) Periodicity (b) Business Entity
(c) Prudence (d) Going Concern
8. One of the Fundamental accounting assumption is
(a) Materiality (b) Going Concern
(c) Business entity (d) Dual aspect
9. Bhagat Ltd. depreciate machinery by written down value method year after year dueto
(a) Consistency (b) Comparability
(c) Convenience (d) All of the above
10. Contra-entries are passed only when
(a) Double column cash book is prepared
(b) Three-column cash book is prepared
(c) Simple cash book is prepared
(d) None of the above
11. Petty cash balance is
(a) Liability (b) Income
(c) Expense (d) An asset
12. Dividends are usually paid as a percentage of
(a) Net profit (b) Authorised share capital
(c) Called-up capital (d) Paid-up capital
13. A proforma invoice is sent by
(a) Consignee to consignor (b) Consignee to Debtors
(c) Debtors to consignee (d) Consignor to consignee
14. A ............... is sent to a customer when he return the goods
(a) Cheque (b) Proforma invoice
(c) Credit note (d) Debit note
56 Common Proficiency Test (CPT) Volume - II
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15. Commission to promote credit sale by consignee is known as
(a) Del-credere commission (b) Over riding commission
(c) Ordinary commission (d) Special commission
16. Generally, when the size of the venture is............... the co-venture keep separate sets of account
for joint venture transactions
(a) Big (b) Medium
(c) Small (d) None of the above
17. The Petty cashier generally works on............... system
(a) Imprest (b) Balancing
(c) Accrual (d) None of the above
18. The amount due to the retiring partner on account of goodwill is debited to the continuing
partners in their........
(a) Gaining ratio (b) Capital ratio
(c) Sacrificing ratio (d) None of the above
19. When money is withdrawn from the bank, the bank............... the account of the customer
(a) Debit (b) Credit
(c) Either (a) or (b) (d) None of the above
20. The Cash discount allowed to a debtor should be credited to
(a) Sales account (b) Discount account
(c) Customer’s/Debtors account (d) None of the above
21. Closing capitals of Amit, Sumit and Vineet were Rs. 50,000, Rs. 45,000 and Rs. 30,000
respectively. Their drawings during the year were Rs. 10,000, Rs. 5,000 and Rs. 12,000
respectively. Amount of net profit earned during the year was Rs. 18,000 which was
distributed in the ratio of 3:2:1. Opening capital of Vineet will be
(a) Rs.45,000 (b) Rs.39,000
(c) Rs.56,000 (d) Rs.44,000
22. Ryan Ltd. issued 20,000, 8% debentures of Rs. 10 each at par, which are redeemable after 5
years at premium of 20%. The amount of loss on redemption of debenture to be written off
every year will be
(a) Rs.8,000 (b) Rs.40,000
(c) Rs.20,000 (d) Rs.10,000
Common Proficiency Test (CPT) Volume - II 57
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MODEL TEST PAPER - 3
23. Ram and Shyam are partners sharing profits and losses in the ratio 5:3. On admission
Mohan brings Rs. 70,000 cash as capital and Rs. 48,000 against goodwill. New profit sharing
ratio between Ram, Shyam and Mohan are 7:5:4. The sacrificing ratio between Ram and
Shyam will be
(a) 2:1 (b) 5:4
(c) 3:1 (d) 4:2
24. Nikhil of Delhi sent out goods costing Rs. 45,000 to Shyam of Kolkata at cost +33 1/3%.
1/10th of goods were lost in transit and 2/3rd of the remaining goods are sold at 20% above
IP. The amount of sales value will be
(a) Rs.36,000 (b) Rs.60,000
(c) Rs.54,000 (d) Rs.43,200
25. Debit balance as per cash book of Shyam enterprises as on 31.3.2010 is Rs. 1,500. Cheques
deposited but not cleared amount Rs. 100 and cheque issued but not presented of Rs. 150. The
bank allowed interest amounting Rs. 50 and collected dividend Rs. 50 on behalf of ABC
enterprises. Balance as per pass book should be
(a) Rs.1,650 (b) Rs.1,600
(c) Rs.1,850 (d) Rs.1,450
26. A business purchased goods for Rs. 10,00,000 and sold 60% of such goods during the financial
year ended 31st March 2010. The market value of the remaining goods was Rs. 3,00,000.
They valued the closing stock at cost. He violated the concept of
(a) Periodicity (b) Cost
(c) Conservatism (d) Money Measurement
27. A Company forfeited 2,000 shares of Rs. 10 each (which were issued at par) 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 Account will be
(a) Rs.18,000 (b) Rs.8,000
(c) Rs.10,000 (d) Rs.2,000
28. Ram and Rahim are partners in a firm sharing profits and losses in the ratio 5:3. The firm’s
profit or loss of last four years amounting Rs. 18,000, Rs. 8,500 (loss), Rs. 30,000 and Rs.
16,500 respectively. The value of goodwill on the basis of one and a half year’s purchase of
average profits of last four years will be
(a) Rs.14,000 (b) Rs.6,000
(c) Rs.17,000 (d) Rs.21,000
58 Common Proficiency Test (CPT) Volume - II
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29. A cheque of Rs. 1,000 received from Ratnesh was dishonoured and had been posted to the
debit of sales return account. The rectifying journal entry will be.
Rs. Rs.
(a) Sales return A/c Dr 1,000
To Ratnesh 1,000
(b) Ratnesh A/c Dr 1,000
To Sales return A/c 1,000
(c) Ratnesh Dr 1,000
Sales return Dr 1,000
To Suspense A/c 2,000
(d) None of the above
30. If sales revenue are Rs. 3,00,000; cost of goods sold is 2,00,000 and operating expenses are
Rs. 50,000 the gross profit is
(a) Rs.50,000 (b) Rs.1,00,000
(c) Rs.1,50,000 (d) Rs.2,50,000
31. Rs. 5,000 spent on the overhauling of machines purchased second hand is
(a) Deferred revenue expenditure (b) Capital expenditure
(c) Revenue expenditure (d) None of the above
32. Our acceptance to Mr. Ram for Rs. 8,000 renewed for 3 months on the condition that
Rs. 2000 is paid in cash immediately and the remaining balance to carry out interest at 18%.
p.a. The amount of the renewed bill of exchange will be
(a) Rs.6,270 (b) Rs.8,000
(c) Rs.6,370 (d) Rs.6,000
33. Shyam bought a Guitar of Rs. 1,870 by cheque. It has been wrongly posted in the cashbook
as Rs. 1,780. This has the effect of
(a) Decreasing the bank balance by Rs. 180 in the cash book
(b) Increasing the bank balance by Rs. 180 in the cash book
(c) Increasing the bank balance by Rs. 90 in the cash book
(d) Decreasing the bank balance by Rs. 90 in the cash book
34. Mohan, Sohan and Rohan share profits and loss in the ratio of 4:4:2. They have a Joint Life
Insurance Policy of Rs. 1,00,000 whose premium is paid by the firm. Surrender value of the
policy at the beginning of the year 2010 is 80,000. On the death of Mohan on 2nd Jan 2010
the amount to be credited in Rohan’s account will be
(a) Rs.40,000 (b) Rs.16,000
(c) Rs.30,000 (d) Rs.20,000
Common Proficiency Test (CPT) Volume - II 59
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MODEL TEST PAPER - 3
35. Books of Ram shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the
furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another
furniture by paying additional Rs. 500. Ram charge depreciation @ 10% p.a. The net amount
of the furniture to be shown in the balance sheet will be
(a) Rs. 18,478 (b) Rs. 18,600
(c) Rs. 18,504 (d) Rs. 18,784
36. X, Y and Z takes a joint life policy; their profit sharing ratio is 2:2:1. On death of Y, X and Z
decides to share profits equally. They had taken a Joint life policy of Rs. 2,50,000 with the
surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on
receiving the JLP amount if joint life policy is maintained at surrender value along with the
reserve?
(a) Rs. 2,50,000 created to all the partners in old ratio
(b) Rs. 2,00,000 credited to all the partner in old ratio
(c) Distribute JLP reserve account in old profit sharing ratio
(d) Both ‘b’ and ‘c’
37. Mohit Ltd. had 9,000, 10% redeemable preference shares of Rs. 10 each, fully paid up. The
company decided to redeem these preference shares at par by the issue of sufficient number
of equity shares of Rs. 10 each fully paid up at a discount of 10%. The number of equity
share issued should be
(a) 11,000 (b) 9,000
(c) 7,000 (d) 10,000
38. Goods costing Rs. 2,00,000 is sent on consignment basis. These goods are invoiced to give a
gross margin of 20% on invoice price. The amount of loading is :
(a) Rs.50,000 (b) Rs.40,000
(c) Rs.60,000 (d) Rs.55,000
39. A lease is purchased on 1st January 2010 for 4 years at a cost of Rs. 1,00,000. Lease is to be
depreciated by the annuity method charging 5% interest. Annuity of Re. 1 over 4 years
charging 5% interest is Re. 0.282012. The amount of annual depreciation will be
(a) Rs.26,405 (b) Rs.27,612
(c) Rs.28,201 (d) Rs.28,000
40. Ashok Ltd. purchased land and building from Vivek Ltd. for a book value of Rs. 2,00,000.
The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of
20%. The debenture account is credited with
(a) Rs.2,50,000 (b) Rs.2,40,000
(c) Rs.2,70,000 (d) Rs.1,90,000
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41. Debit balance as per cash book of ABC enterprises as on 31.3.2010 is Rs. 15,000. Cheque
deposited but not cleared amount to Rs. 1,000 and cheque issued but not presented of Rs.
2,000. Balance as per pass book should be
(a) Rs.15,000 (b) Rs.16,000
(c) Rs.14,000 (d) Rs.17,000
42. Goods purchased Rs. 2,00,000. Sales Rs. 1,10,000. Margin 25% on sales. Closing stock is
(a) Rs.90,000 (b) Rs.75,000
(c) Rs.1,17,500 (d) Rs.1,50,000
43. Sohan runs a departmental store. He renovates his shop to increase its space. The amount of
Rs. 75,000 was incurred on renovation. The amount to be charged to Profit and Loss A/c is
(a) Rs. 75,000 (b) Rs. 10,000
(c) NIL (d) None of the above
44. X of Kolkata sends out goods costing Rs. 3,00,000 to Y of Delhi. Commission agreed is 2%
on sales + 3% on sales as del-credre commission. The entire goods is sold by consignee for
Rs. 4,00,000. However consignee is able to recover Rs. 3,95,000 from the debtors. The amount
of profit to be transferred to P/L as net commission by consignee will be
(a) Rs.16,000 (b) Rs.15,500
(c) Rs.15,000 (d) Rs.17,000
45. Alok and Rohit were partners in a joint venture sharing profits and losses in the proportion
of 3/5th and 2/5th respectively. Alok supplies goods to the value of Rs. 60,000 and incurs
expenses amount Rs. 6,000. Rohit supplies goods to the value of Rs. 16,000 and his expenses
amount to Rs. 3,000. Rohit sells goods on behalf of the joint venture and realises Rs. 1,20,000.
Rohit is entitled to a commission of 5% on sales. Rohit settles his account by bank draft.
How much amount Rohit will pay to Alok as final settlement.
(a) Rs.93,600 (b) Rs.82,000
(c) Rs.83,400 (d) Rs.40,000
46. Ram, Mohan and Sohan are partners in a firm sharing profits and losses in the ratio of
5:3:2. The firm took separate life policy of Rs. 50,000, Rs. 1,00,000 and Rs. 1,50,000 for
Ram, Mohan and Sohan respectively. The share of Mohan in the policy will be
(a) Rs.45,000 (b) Rs.90,000
(c) Rs.80,000 (d) Rs.70,000
47. Rs. 7,000 paid as rent to Sohan, was debited to Sohan’s personal account. The error will
(a) Not affect the trial balance
(b) Affect the suspense account
(c) Affect the trial balance
(d) None of the above
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MODEL TEST PAPER - 3
48. Which one of these is not a cause of difference in balance as per pass book and as per cash
book
(a) Errors in cash book
(b) Errors in pass book
(c) Cheques deposited and cleared
(d) Cheques issued but not presented for payment.
49. If average stock = Rs. 20,000. Closing stock is Rs. 4,000 were than opening stock then the
value of closing stock will be
(a) Rs.16,000 (b) Rs.18,000
(c) Rs.20,000 (d) Rs.22,000
50. If sales is Rs. 10,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of
goods sold will be
(a) Rs. 2,000 (b) Rs. 8,000
(c) Rs. 2,500 (d) Rs. 10,000
51. Rajesh of Ramnagar sends out goods costing Rs. 2,00,000 to Gopal of Gujarat.
3/5th of the goods were sold by consignee for Rs. 1,50,000. Commission 2% on sales plus
10% of gross sales less all commission exceeds cost price. The amount of commission will be
(a) Rs. 4,545.45 (b) Rs. 5,454.54
(c) Rs. 6,363.63 (d) Rs. 7,272.72
52. Ankit, Anu and Anurag are partners sharing profits in the ratio 4:3:2. On retirement of
Anu, goodwill was valued Rs. 90,000. The contribution of Ankit and Anurag to compensate
Anu will be
(a) Rs. 20,000 and Rs. 10,000
(b) Rs. 10,000 and Rs. 20,000
(c) Rs. 8,700 and Rs. 97,000
(d) Rs. 10,800 and Rs. 18,200
53. Jai Ltd. purchased machinery from Om Ltd. for Rs. 8,00,000. The consideration was paid
by issue of 15% debentures by Rs. 100 each at a discount of 20%. Number of debentures
issued by Jai Ltd. will be
(a) 8,000 (b) 10,000
(c) 12,000 (d) 15,000
54. Ankur purchased a computer costing Rs. 24,000. Repairing expenses Rs.1,500 & other charges
(loading & unloading) Rs. 1,500 were incurred by him. He sold the computer at 25% margin
on selling price. The profit on sale will be
(a) Rs. 8,500 (b) Rs. 9,000
(c) Rs. 10,000 (d) Rs. 11,500
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55. Mr. Rakesh Roshan is a partner in a firm. He withdraws Rs. 500 at the beginning of each
month. If the rate of interest is @ 5%, then interest on drawings is
(a) Rs. 55.50 (b) Rs. 157.50
(c) Rs. 160.50 (d) Rs. 162.50
56. Mr. Bajaj who was the holder of 200 Equity shares of Rs. 100 each of Canny Ltd., on which
only Rs. 75 per share has been called up, couldn’t pay his dues on allotment and first call
each at Rs. 25 per share. The director forfeited the above shares and reissued 150 of such
shares to Mr. Birla at Rs. 65 per share paid up as Rs. 75 per share. The amount to be
transferred to capital reserve account will be
(a) Rs. 1,500 (b) Rs. 2,250
(c) Rs. 2,750 (d) Rs. 3,250
57. On 1.4.2010 Mr. Rahul draws a bill for one month on Mr. Sachin for Rs. 1,00,000. At maturity
Mr. Sachin request to accept Rs. 20,000 in cash and noting charges Rs. 1,000 and for the
balance Mr. Rahul draws a bill on Sachin for 2 months at 12% p.a. Interest will be
(a) Rs. 1,200 (b) Rs. 1,300
(c) Rs. 1,400 (d) Rs. 1,600
58. Opening stock of material is Rs. 12,000, purchases Rs. 30,000 carriage Rs. 5,000, Sales value
Rs. 40,000, closing stock 14,000 & other indirect expenses Rs. 2,300. Amount of Gross Profit
will be
(a) Rs. 7,000 (b) Rs. 4,700
(c) Rs. 6,300 (d) Rs. 5,000
59. A promissory note does not require
(a) Discounting (b) Acceptance
(c) Noting (d) All of the above
60. Errors are .................. mistakes
(a) Intentional (b) Undetected
(c) Unintentional (d) None of the above
SECTION – B : MERCANTILE LAWS (40 MARKS)
61. A Minor admitted to the benefits of the firm, towards third party
(a) He is personally liable (b) He is not personally liable
(c) He is liable only upto his share in the firm (d) He has no liability at all.
62. The reconstitution of the firm takes place in case of
(a) Admission of a partner (b) Retirement of a partner
(c) Expulsion or death of a partner (d) All of the above.
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MODEL TEST PAPER - 3
63. Which of the following is not an essential feature of partnership?
(a) Result of an agreement
(b) Organised to carry on business
(c) Carried on by all any of them acting for all
(d) Separate legal entity
64. Which of the following is not the right of unpaid seller?
(a) To resell
(b) To stop the goods in transit
(c) Of lien
(d) To demand back the goods.
65. Breach of contract may be
(a) Actual breach of contract
(b) Anticipatory breach of contract
(c) (a) or (b)
(d) (a) not (b)
66. An anticipatory breach does not give any right to claim
(a) Damages (b) Compensation
(c) Either (a) or (b) (d) Both (a) and (b)
67. A contract can be discharged by operation of law in which of the following ways
(a) Death of Promisor (b) Insolvency of Promisor
(c) Merger of Rights (d) All of the above
68. Acceptance is complete for the offer
(a) When it is posted
(b) When the offer thinks to accept the offer
(c) When it is re-posted
(d) None of these
69. In a bilateral contract, obligations are outstanding
(a) An offeror (b) An offeree
(c) On Both (d) On none
70. Vindictive or exemplary damages may not be awarded-
(a) For breach of promise to divorce
(b) For breach of promise to marry
(c) Wrongful dishonor by a bankers of his customer’s cheque
(d) None of the above
71. When a partner declared insolvent he ceases to be a partner from the date of its
(a) Insolvency (b) Birth
(c) Appointment (d) None of the above
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72. It is the duty of the finder of goods to trace the true owner of the goods, and if does not do so,
he shall be guilty of
(a) Theft
(b) Extortion
(c) Criminal misappropriation of property
(d) None of the above
73. A person who supplies “necessaries” to a minor is entitled to be reimbursed from the property
of the minor on the basis of a
(a) Valid contract (b) Voidable contract
(c) Quasi contract (d) Contingent contract
74. Which of the following constitute responsibility of finder of lost goods?
(a) He shall take reasonable steps to trace the owner
(b) He shall take care of the goods
(c) If the goods are in a deteriorated or wrong condition, sell them off and remit the proceeds
to the owner
(d) All of the above
75. Where price of goods sold is to be fixed by a third party and the third party refuses to fix the
price, the contract becomes
(a) Void (b) Voidable
(c) Illegal (d) Void and illegal
76. Where seller delivers to the buyer a quantity of goods less than the contracted to sell, the
buyer
(a) May reject them
(b) Should not reject them as more quantity might be supplied
(c) May resell them
(d) Give less price for them
77. In a quasi contract, obligation to perform the contract is imposed by :
(a) The promisor
(b) The Law
(c) The Promisee
(d) None of the above
78. Delivery of goods to the carrier would not pass the property in the goods to the buyer where
the seller
(a) Reserves the right to disposal
(b) Does not reserve the right to disposal
(c) (a) or (b)
(d) None of the above
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MODEL TEST PAPER - 3
79. A contract to do or to abstain from doing a certain thing on the happening of an event
(a) Cannot be enforced
(b) Can be enforced when the event has happened
(c) Can be enforced at any time
(d) Can not be lawful
80. A person having possession of goods under voidable contract can sell the goods before
_________ of the contract by the agreed party.
(a) Confirmation (b) Execution
(c) Rescission (d) Ratification
81. When the seller gives physical delivery of the goods to the buyer it is called ________ delivery.
(a) Systematic (b) Actual
(c) Construction (d) Symbolic
82. In the case of ______, in addition to the implied conditions as to merchantability, there is
another implied condition that the goods shall be wholesome.
(a) Eatables (b) Shares
(c) Gold (d) Machineries
83. An ‘auction sale’ is a mode of selling property by inviting bids.
(a) Privately (b) Publicly
(c) Cordially (d) All of the above
84. If the changes taking place in a registered firm are not registered with the registrar of firms,
it is _________.
(a) No more a registered firm
(b) Needs to be re-registered
(c) Cannot file suit against other party
(d) Can not claim its statutory rights
85. The public notice is not required if partner __________.
(a) Retires (b) Expelled
(c) Dies (d) Either (a) or (b)
86. Extension or restriction of implied authority can be made by
(a) Any one of partner (b) Majority of the partners
(c) All the partners unanimously (d) At least 75% of total partners’ strength
87. ____________ means a claim to any debt or any beneficial interest in movable property not
in possession and which can be enforced through the court of law.
(a) Actionable claim (b) Auctionable claim
(c) Default claim (d) None of the above
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88. Where a buyer neglects to accept delivery of the goods, the seller may sue for ________.
(a) Payment of price
(b) Damages for non acceptance
(c) Damages for non acceptance and charges for care and custody of the goods
(d) All of the above
89. Where in an auction sale, the seller appoints more than one bidder, the sale is_________.
(a) Void (b) Illegal
(c) Conditional (d) Voidable
90. A ___________ is a right to retain the possession of goods until the payment of the price of
such goods.
(a) Capture (b) Lien
(c) Surrender (d) Sue
91. Knock-out agreements are generally _________ in auction sale.
(a) Unlawful (b) Not unlawful
(c) Void (d) Required
92. A buyer can sue for specific performance of the contract if the goods are _______.
(a) Specific (b) Future
(c) Contingent (d) Perishable
93. The expression ‘Proprerty of the firm’ denotes all property, rights and interest to which
_____ may be entitled:
(a) All partners severally (b) All partners & third parties
(c) All partners collectively (d) All of the above
94. A partner may be expelled by a _______ decision.
(a) Unanimous (b) Managing partner’s
(c) Majority (d) Senior partner’s
95. If a partner was not expelled in good faith and in the interest of the firm, it will be:
(a) Null (b) Void
(c) Both (a) & (b) (d) Voidable
96. Partnership property vest in the ________.
(a) Firm (b) Partner of the firm
(c) Continuing partners of the firm (d) Retiring partners of the firm
97. Which one of the following is not an implied warranty?
(a) Agreement to sell (b) Sale
(c) Hire purchase (d) Installment to sell
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MODEL TEST PAPER - 3
98. Whether a given contract is one of sale or same other kind of contract in respect of goods, is
a matter of _________.
(a) Terminology (b) Law
(c) Agreement (d) All of the above
99. Promotion of litigation in which one had no interest is
(a) Champerty
(b) Maintenance
(c) Stifling litigation
(d) None of the above
100. ‘B’ agrees to buy the entire crop of wheat that would yield in ‘A’s farm, at the rate of Rs.
1,000 per quintal. Decide the subject matter of goods.
(a) This is an agreement of sale of future goods
(b) This is an agreement of sale of present goods
(c) This is a contract of sale
(d) None of the these
SECTION – C : GENERAL ECONOMICS (50 MARKS)
101. The definition “Science which deals with wealth” was given by:
(a) Alfred Marshall (b) A.C. Pigou
(c) Adam Smith (d) J. B. Say
102. Questions like what should be the level of national income, what should be the wage rate fall
within the scope of:
(a) Positive Science (b) Normative Science
(c) Both (a) and (b) (d) None of the above
103. The shape of PPC is concave due to:
(a) Falling opportunity cost between two goods
(b) Rising opportunity cost between two goods
(c) Constant opportunity cost between two goods
(d) None of the above
104. Which of the following is not one of the features of capitalist economy?
(a) Right of private property
(b) Freedom of choice by the consumers
(c) No profit, No Loss motive
(d) Competition
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105. Calculate Income-elasticity for the household when the income of a household rises by 10%
the demand for T.V. rises by 20%
(a) + .5 (b) - .5
(c) + 2 (d) - 2
106. In case of necessaries the marginal utilities of the earlier units are large. In such cases the
consumer surplus will be:
(a) Infinite (b) Zero
(c) Marginally positive (d) Marginally Negative
107. Which is not the assumption of Indifference curve Analysis?
(a) The consumer is rational and possesses full information about all the aspects of economic
environment
(b) The consumer is not capable of ranking all combinations
(c) If consumer prefers combination A to B, and B to C, then he must prefer combination A to C
(d) If combination A has more commodities than combination B, then A must be preferred to B.
108. The horizontal demand curve parallel to x-axis implies that the elasticity of demand is
(a) Zero
(b) Infinite
(c) Equal to one
(d) Greater than zero but less than infinity
109. Which of the following is not the characteristic of Labour?
(a) Labour is highly ‘Perishable’ in the sense that a day’s labour lost cannot be completely
recovered
(b) Labour is inseparable from the labourer himself
(c) Labour has a strong bargaining power
(d) The supply of labour and wage rate are directly related in the initial stages
110. Indicate which of the following is a variable cost?
(a) Payment of rent on building
(b) Cost of Machinery
(c) Interest payment on Loan taken from bank
(d) Cost of raw material
111. Marginal costs are closely associated with:
(a) Variable cost (b) Total fixed cost
(c) Average cost (d) Total cost
112. The present cash reserve ratio as in (June 2010) is:
(a) 5% (b) 5.5%
(c) 6.5% (d) 6%
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MODEL TEST PAPER - 3
113. Population per Bank Office at present in 2008 is :
(a) 5,000 (b) 55,000
(c) 15,000 (d) 18,000
114. The Highest Deposit Mobilisation is in:
(a) Delhi (b) Gujarat
(c) Maharashtra (d) Punjab
115. Total bank lending was just ——— in June, 1969
(a) 9,933 crore (b) 3,399 crore
(c) 1,000 crore (d) 10,000 crore
116. ————— means integrating the domestic economy with the world economy
(a) Disinvestment (b) Liberalisation
(c) Privatisation (d) Globalisation
117. In World Trade Organization, each member country has:
(a) One vote
(b) Depends upon National Income of the nation
(c) Depends upon UNO ranking
(d) Depends upon whether the country is developed, developing or underdeveloped
118. NRIs are allowed to remit upto ——— per calendar year out of their Non - resident ordinary
accounts / sale proceeds of assets.
(a) $ 25,000 (b) $ 25 million
(c) $ 1 million (d) $ 5,000
119. India achieved full convertibility on current account in:
(a) 1994 (b) 1991
(c) 2001 (d) 2005
120. Current account convertibility means freedom to buy and sell foreign exchange for the
following transactions except:
(a) All payment for purchase and sale of goods and services
(b) Payment due as interest on loans
(c) Moderate remittances for family living expenses
(d) Purchase of immovable property abroad
121. Which one of the following is not a method of disinvestment?
(a) Equity offer (b) Cross holding
(c) Warehousing (d) None of the above
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122. Cash compensatory scheme was abolished in:
(a) 1992 (b) 1999
(c) 1991 (d) False. It is still continuing
123. Export promotion capital goods scheme was liberalized in April 1992 to:
(a) To encourage Export of Capital Goods
(b) To encourage Import of Capital Goods
(c) Both (a) and (b)
(d) None of the above
124. As per RBI recommendations Basel II framework, has been operationalised since:
(a) March, 2007 (b) March, 2009
(c) March, 2008 (d) March, 2010
125. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, was passed for assisting banks:
(a) In the recovery of their loans
(b) To give more loans on lesser security
(c) To give loans by taking more security
(d) None of the above
126. Which of the following is not the problem of India’s Education System?
(a) Unplanned expansion of higher education
(b) Neglect of primary education
(c) Large number of unemployed uneducated people
(d) Large scale migration of educated people to the developed western countries
127. VPT stands for:
(a) Village Public Telephone (b) Value Public Telephone
(c) Various Public Telephone (d) Valmiki Public Telephone Yojna
128. Which of the following is not the factor for poor growth of coastal shipping?
(a) High transportation costs (b) Port delays
(c) Over - aged vessel (d) Fast handling of the cargo at ports
129. Price discrimination is not possible:
(a) Under Monopoly (b) Under Monopolistic competition
(c) Under perfect competition (d) Under any market firm
130. Most of the unemployment in India is:
(a) Voluntary (b) Structural
(c) Frictional (d) Technical
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MODEL TEST PAPER - 3
131. Which of the following has not been a part of the land reforms programme in India?
(a) Ceiling an holding (b) Consolidation of holding
(c) Abolition of zamindari system (d) Agricultural holding tax
132. Disguised unemployment in India is maximum in:
(a) Agricultural Sector (b) Secondary Sector
(c) Tertiary Sector (d) Both (a) and (c)
133. Which of the following is an economic activity?
(a) Seeing T.V.
(b) Teaching one’s own son at home
(c) Medical Facilities rendered by a charitable hospital
(d) A housewife preparing food for the household
134. The cost incurred on the factor of production is known as:
(a) Accounting cost (b) Economic cost
(c) Marginal cost (d) Implicit cost
135. Which of the following is considerered as economic cost?
(a) The normal return on money capital invested
(b) Salary of entrepreneur
(c) The interest on capital invested
(d) All of the above
136. Economic cost means
(a) Accounting cost + Implicit cost (b) Accounting cost + Marginal cost
(c) Cash cost + Opportunity cost (d) Implicit cost
137. When is average product at its maximum point
(a) When AP intersects MP (b) When AP intersects TP
(c) When MP is highest (d) At the point of inflexion
138. When is TP maximum?
(a) When AP becomes Zero
(b) When MP becomes Zero
(c) At the intersecting point of AP and MP
(d) When MP is highest
139. Variable cost includes the cost of
(a) Buying land and building
(b) Hire charges of machinery
(c) Insurance premium
(d) Material bought
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140. Which of the following is correct?
(a) Marginal cost is always less than the average cost.
(b) Marginal cost is always more than the average cost.
(c) Marginal cost is always equal to the average cost at its minimum point.
(d) Marginal cost is always equal to the average cost
141. When average cost curve is rising then, marginal cost
(a) Must be decreasing (b) Must be above the average cost curve
(c) Must be constant (d) Must be equal to average cost
142. Which among the following is NOT a cause of sickness of industrial units in India?
(a) Outdated Technology (b) Labour Problems
(c) Faulty Location (d) Lack of capital account convertibility
143. Which of the following is not a factor payment?
(a) Free uniform to defense personal
(b) Salaries to the member of Parliament
(c) Imputed rent of an owner occupied premises
(d) Scholarship given to the backward class students
Use following table to answer the below mentioned questions and (144 – 145)
Hours of Total Marginal
Labour Output Output
0 -
1 350 350
2 - 230
3 670 -
144. What is the marginal output when 3rd hour of labour is employed?
(a) 90 (b) 670
(c) 350 (d) 230
145. What is the total output when 2 hours of labour are employed?
(a) 500 (b) 580
(c) 680 (d) 780
146. Which of the following is not the name of LAC curve?
(a) Planning curve (b) Enveloping curve
(c) Round curve (d) None of the above
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MODEL TEST PAPER - 3
147. A firms average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output:
(a) Rs. 60 (b) Rs. 30
(c) Rs. 40 (d) Rs. 20
148. A firm has producing 7 units of output has an average total cost of Rs. 150 and has to
pay Rs. 350 to its fixed factors of production whether it produces or not. How much of
the average total cost is made up of variable cost?
(a) 200 (b) 50
(c) 300 (d) 100
149. A firm has variable cost of Rs.1,000 at 5 units of output. If fixed cost are Rs.400, what will be
the average total cost at 5 units of output?
(a) 380 (b) 280
(c) 60 (d) 400
150. The vertical difference between TVC and TC is equal to:
(a) MC (b) AVC
(c) TFC (d) None of the above
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)
151. The ratio of the sum and the difference of two numbers is 7:1. Find the ratio of those two
numbers.
(a) 5:3 (b) 4:3
(c) 4:5 (d) None of these
152. The difference between a two digit number and the number obtained by inter–changing the
digit is 54. What is the difference of the two digits of the number?
(a) 4 (b) 3
(c) 6 (d) None of these
153. The numerator of a fraction is 4 less than its denominator. If the numerator is decreased by
2 and the denominator is increased by 1, then the denominator is eight times the numerator.
Then the fraction is
(a) 3/7 (b) 4/7
(c) 9/7 (d) None of these
154. Father is six times as old as his son. Four years hence he will be four times as old as his son.
Then the present ages are
(a) 42, 8 (b) 36, 6
(c) 40, 10 (d) None of these
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155. Find the value of 1 + 2 + 3 + …………….+ 105
(a) 5000 (b) 5560
(c) 5565 (d) None of these
0.03
156. If log3 = 0.48 and log 7 = 0.84, then the value of log is
0.7
(a) – 2.26 (b) – 3.26
(c) – 1.36 (d) None of these
157. Evaluate 4 0.5173
(a) 0.8480 (b) 0.8210
(c) 0.6480 (d) None of these
0.7214×20.37
158. Evaluate 3
69.8
(a) 1.5948 (b) 0.5948
(c) 0.2348 (d) None of these
159. A sum of Rs. 4,000 is invested in an account that pays 6% interest compounded annually. If
yields Rs. 5,353 after a number of years. Determine the number of years for which the sum
was inverted.
(a) 8 (b) 5
(c) 10 (d) None of these
23
160. If log x + log x + log x = then the value of x is
2 8 32 15
(a) 8 (b) 5
(c) 2 (d) None of these
161. The number of ways in which n different books can be arranged in an almirah so that two
particular books are always together is –
(a) n!×2! (b) (n–1)! × 2!
(c) (n–2)! (d) None of these
162. There are 3 copies each of two books and two copies each of five books. In how many ways
can a book seller arrange the 16 books in a shelf so that the copies of the same book are never
separated?
(a) 5040 (b) 5000
(c) 5030 (d) None of these
Common Proficiency Test (CPT) Volume - II 75
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MODEL TEST PAPER - 3
163. How many words can be formed with the letters of the world “PARALLEL” so that all L’s
do not come together?
(a) 2000 (b) 3000
(c) 4000 (d) None of these
164. Find the sum of four digit numbers made by the given digits 1, 3, 3, 0?
(a) 22554 (b) 22550
(c) 22,000 (d) None of these
165. There are stalls for 10 animals in a ship. In how many ways can the shipload be made, if
there cows, calves and horses to be transported, animals of each kind being not less than 10?
(a) 59040 (b) 59049
(c) 59149 (d) None of these
166. Evaluate ∫ x3 3+5x4dx
(a)
1(
6x3 +11
)
3/2 +c
(b)
−
1(
3+5x4
)
2/3+c
9 9
(c)
1 ( 3+5x4 ) 3/2 +c
(d) None of these
30
2x+1
∫
dx
167. Evaluate:
x(x+1)
(a) log (x2 – x) + c (b) log (x2 + x) + c
(c) log (x2 + 1) + c (d) None of these
dx
∫
168. Evaluate:
x+ x
(a) 2 log (x + 1)+c (b) –2log ( x + 1)+c
(c) 2 log ( x + 1)+c (d) None of these
log x
∫
169. Evaluate dx
3x
1( ) 2 1 ( )
(a) log x +c (b) log x +c
3 3x
(c) 1 ⎡ ⎣ log ( 3x+ x ) ⎤ ⎦ +c (d) None of these
3x
76 Common Proficiency Test (CPT) Volume - II
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170. Evaluate
∫ e2x×x2dx
x3 x2e2x e2x x2e2x xe2x e2x
(a)
e3x − + +c
(b)
− + +c
3 2 4 2 2 4
x3e2x x2ex
(c)
− +c
(d) None of these
3 2
5 x2
∫
dx
171. Evaluate: x2 +(5−x)2
0
(a) 0 (b) 1
(c) –1 (d) None of these
2x −1
lim
172. Evaluate:
x→0 1+x –1
(a) 2 log 2 (b) log 2
(c) 0 (d) None of these
|x–1|
173. Evaluate: lim
x→0 x–1
(a) –1 (b) 1
(c) Does not exist (d) None of these
x–|x|
174. If f(x) =
,x≠
0 and f(x) = 2 for x = 0 is f(x) continuous at x = 0?
x
(a) Yes (b) No
(c) Cannot say (d) None of these
dy
175. If y = log log x, find
3 3 dx
1 −1
(a) (b)
x log3.logx x log3.logx
1
(c) (d) None of these
log3.logx
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MODEL TEST PAPER - 3
176. A sum of money is put at compound interest for 2 years at 20% p.a. It would earn Rs. 482
more, if the interest were payable half-yearly than it were payable yearly; then the sum is
(a) Rs. 20,000 (b) Rs. 25,000
(c) Rs. 26,000 (d) None of these
177. What is the amount of an annuity if the size of the each payment is Rs. 3,000 payable at the
end of each year for 3 years at an interest rate of 9% compounded annually?
(a) Rs. 9,000 (b) Rs. 9,800.50
(c) Rs. 9,833.33 (d) None of these
178. Find the present value of an annuity of Rs. 1,000 payable at the end of each year for 10 years,
if the money is worth 5% effective.
(a) Rs. 7,724 (b) Rs. 7000
(c) Rs. 8000 (d) None of these
179. A company sets aside a sum of Rs. 45,000 annually for 9 years to pay off a debenture issue of
Rs. 5,00,000. If the fund accumulates at 6% p.a., find the surplus after full redemption of the
debenture issue.
(a) Rs. 15,500 (b) Rs. 16,500
(c) Rs. 17,500 (d) None of these
180. A company may obtain a machine either by leasing it for 5 years, (useful life) at an annual
rent of Rs. 2,000 or by purchasing it for Rs, 8,100. If the company can borrow money at 10%
p.a., which alternative is preferable?
(a) Leasing is preferable (b) Leasing is not preferable
(c) Cannot say (d) None of these
181. The sum of deviations of the given values from their ………… is always 0.
(a) Arithmetic Mean (b) G.M.
(c) H.M. (d) Median
182. The sum of squares of the deviations of the given values from their ………… is minimum.
(a) Arithmetic Mean (b) Median
(c) Mode (d) None of these
183. Which is greatly affected by the extreme values?
(a) Arithmetic Mean (b) Median
(c) Mode (d) None of these
184. Which is not amenable to further algebraic treatment?
(a) Arithmetic Mean (b) Median
(c) Mode (d) Both (b) and (c)
78 Common Proficiency Test (CPT) Volume - II
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185. In a frequency distribution, the mid value of a class is 15 and the class interval length is 4.
The lower limit of the class is
(a) 10 (b) 12
(c) 13 (d) 14
186. During a certain period, the cost of living index number goes up from 110 to 200 and the
salary of the worker is also raised from Rs. 3,250 to Rs. 5,000. Find the value of salary in real
terms?
(a) Rs. 5,800 (b) Rs. 5,909
(c) Rs. 5,900 (d) None of these
187. When the prices or quantities of all the goods are charging in the same ratio then the
Laspeyre’s and Paasche’s Index Number will be
(a) Equal (b) Unequal
(c) Either (a) or (b) (d) None of these
188. Between 1990 and 2000, the price of a commodity increased by 60% while the production
decreased by 30%. By what percentage did the value index of production of commodity
change in 2000 with respect to its value 1990.
(a) 10% (b) 15%
(c) 12% (d) None of these
189. The consumer price index over a certain period increased from 120 to 215 and the wages of
worker increased from Rs. 1,680 to Rs. 3000. What is the loss of the worker?
(a) 5.58 (b) 6.58
(c) 7.58 (d) None of these
190. The consumer price index for a group of workers was 250 in 1994 with 1980 as the base.
Compute the purchasing power of a rupee in 1994 Compared to 1980.
(a) 0.40 (b) 0.50
(c) 0.60 (d) None of these
191. Three groups of children contain respectively 3 girls and 1 boys; 2 girls and 2 boys; 1 girl
and 3 boys. One child is selected at random from each group. Then the chance that the three
selected consist of 1 girl and 2 boys is:
17 15
(a) (b)
32 32
13
(c) (d) None of these
32
Common Proficiency Test (CPT) Volume - II 79
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MODEL TEST PAPER - 3
192. A, B, C are three mutually exclusive and exhaustive events associated with a random
experiment. Find P(A), given that P(B) = 3/2 P(A) and P(C) = 1/2 P (B)
3 4
(a) (b)
13 13
5
(c) (d) None of these
13
193. A committee of four has to be formed from among 3 economists, 4 engineers, 2 statisticians
and 1 doctor. What the probability that the committee consists of the doctor and at least one
economist?
(a) 0.3048 (b) 0.6048
(c) 0.9048 (d) None of these
194. The probability that a company executive will travel by plane is 2/3 and that he will travel
by train is 1/5. Find the probability of his traveling by plane or train.
11 13
(a) (b)
55 15
14
(c) (d) None of these
15
195. The probability that a contractor will get a plumbing contract is 2/3, and the probability
that he will not get an electric contract is 5/9. If the probability of getting at least one contract
is 4/5. What is the probability that he will get both the contracts?
14 13
(a) (b)
45 45
11
(c) (d) None of these
45
196. The mean of normal distribution is 50 and 5% of the values are greater than 60; then the
Standard Deviation of the distribution is: (Given the area under Standard Normal Curve
between z = 0 & z = 1.64 is 0.45)
(a) 6.7 (b) 7.6
(c) 6.82 (d) None of these
197. The mean monthly expenditure of a batch of students is Rs. 100 with standard deviation Rs.
20. If the expenditure is normally distributed find out the maximum expenditure of those
10% of the students whose expenditure is the lowest.
(a) Rs. 80 (b) Rs. 80.50
(c) Rs. 74.40 (d) None of these
80 Common Proficiency Test (CPT) Volume - II
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198. The mean monthly expenditure of a batch of students is Rs. 100 with standard deviation Rs.
20. If the expenditure is normally distributed find the minimum expenditure of those 10%
of the students whose expenditure is the highest.
(a) Rs. 150 (b) Rs. 125.60
(c) Rs. 125.80 (d) None of these
199. Find the mean and Standard Deviation of a normal distribution, when 8% of the items are
⎡ 0.496 1.405 ⎤
∫ ∫
⎢Given: f(z)dz =0.19& f(z)dz =0.42⎥
over 64 and 31% are under 45.
⎣ ⎦
0 0
(a) 50,10 (b) 60,10
(c) 60, 20 (d) None of these
200. Marks obtained by a number of students are assumed to be normally distributed with mean
65 and variance 25. If 3 students are taken at random what is the probability that exactly
two of them will have marks over 70?
(a) 0.07 (b) 0.08
(c) 0.06 (d) None of these
❖❖❖
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© The Institute of Chartered Accountants of India
BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 4
Time : 4 hours Maximum Marks : 200
The test is divided into four sections.
Questions 1 to 200 have only one correct answer and carry + 1mark for each correct answer and
– 0.25 mark for each wrong answer.
SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)
1. Which error cannot be revealed on the preparation of trial balance?
(a) Wrong totaling of account
(b) Compensatory error
(c) Error of commission
(d) Wrong balancing of an account
2. A change in accounting policy is justified
(a) To comply with accounting standard
(b) To ensure more appropriate presentation of the financial statement of the enterprise
(c) To comply with law
(d) All of the above.
3. The determination of expenses for an accounting period is based on the principle of
(a) Periodicity (b) Matching
(c) Materiality (d) Objectivity
4. In the case of downward revaluation of an asset, which is for the first time revalued,
................account is debited.
(a) Fixed Asset (b) Revaluation Reserve
(c) Profit and Loss A/c (d) General Reserve
C83ommon Proficiency Test (CPT) Volume - II 83
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MODEL TEST PAPER - 4
5. Parties to a bill of exchange are
(a) Drawee (b) Payee
(c) Drawer (d) All of the above
6. Inventories should be generally valued at lower of cost or............
(a) Present value (b) Net Realisable Value
(c) Replacement Value (d) Fair Market Value
7. The value of an asset after deducting depreciation from the historical cost is known as
(a) Fair Value (b) Market Value
(c) Net Realisable Value (d) Book Value
8. Fluctuating capital account is credited with..........
(a) Profit of the year (b) Interest on capital
(c) Salaries of the partner (d) All of the above
9. The amount of calls in arrear is deducted from...............to arrive at.........
(a) Paid up capital, called up capital (b) Called up capital, paid up capital
(c) Issued capital, called up capital (d) Called up capital, Issued capital
10. Debit balance as per pass book means
(a) Bank overdraft as per cash book (b) Debit balance in pass book
(c) Cash balance with bank (d) None of the above
11. If del-credere commission is allowed for bad debt, consignee will debit the bad debt amount
to :
(a) Debtors A/c (b) General Trading A/c
(c) Commission Earned A/c (d) Consignee A/c
12. Accommodation bill is drawn
(a) To finance actual purchase or sale of goods
(b) To facilitate trade transmission
(c) To cater the fund requirements of both the parties
(d) None of the above
13. Accounts receivable normally has...........balance
(a) Credit (b) Debit
(c) Unfavourable (d) None of the above
14. The un-expired portion of capital expenditure is shown in the financial statement
(a) As a liability (b) As an asset
(c) As an Income (d) As an expense
84 Common Proficiency Test (CPT) Volume - II
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15. Rs. 5,000 spent on maintenance of computer is...........
(a) Deferred capital expenditure (b) Capital expenditure
(c) Revenue expenditure (d) None of the above
16. The assumption underlying the fixed instalment method of depreciation is that of.........of the
asset over its useful life
(a) Equal usage (b) Usage
(c) Charge (d) None of the above
17. Abnormal loss on consignment is credited to........
(a) Consignment account (b) Consignee’s account
(c) Profit & loss account (d) None of the above
18. .............will generally show a debit balance
(a) Bank loan (b) Bad debts recovered
(c) Drawings (d) Salary payable
19. Memorandum joint venture account is a
(a) Nominal A/c (b) Real A/c
(c) Personal A/c (d) None of the above
20. The portion of the acquisition cost of the asset yet to be allocated is known as........
(a) Salvage value (b) Realisable Value
(c) Accumulated value (d) Written down value
21. XYZ Ltd. purchased goods for Rs. 25,00,000 and sold 80% of such goods during the
accounting year ended 31st March 2010. The Market Value of the remaining goods was Rs.
4,00,000. The company valued the closing stock at cost. They violated the concept of
(a) Conservatism (b) Money Measurement
(c) Periodicity (d) Cost
22. Rohan, Mohan and Sohan are partners in the firm sharing profits and losses in 5:3:2 ratio.
The firm’s balance sheet as on 31.3.2010 shows the reserve balance of Rs. 25,000. Profit of
the last year Rs. 1,00,000, joint life policy of Rs. 5,00,000, fixed asset of Rs. 50,00,000. On 1st
October, Rohan died and on the same date assets were revalued. The executor of the deceased
partner will get........... along with the capital of Rohan
(a) Share in joint life policy
(b) Share in reserve account the firm
(c) Proportionate share of profit upto the date of death
(d) All of the above
Common Proficiency Test (CPT) Volume - II 85
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MODEL TEST PAPER - 4
23. A building purchased on 1st January 2006 at Rs. 15,00,000 having useful life of 15 years was
depreciated on straight line basis. On 1st January 2009 the same building was revalued
upward by Rs. 3 lakhs. The revised amount of depreciation for the year 2009 will
(a) Rs. 1,33,000 (b) Rs. 1,26,000
(c) Rs. 1,25,000 (d) Rs. 1,30,000
24. Gopal sent out certain goods to Ramesh of Delhi. 1/10th of the goods were lost in transit.
Invoice value of goods lost is Rs. 12,500. Invoice value of goods sent out on consignment will be
(a) Rs. 1,25,000 (b) Rs. 1,20,000
(c) Rs. 1,40,000 (d) Rs. 1,00,000
25. Ram drew a bill on Shyam for Rs. 50,000 for 3 months proceeds of which are to be shared
equally. Ram got the bill discounted at 12% p.a. and remits proceeds to Shyam. The amount
of such remittance will be
(a) Rs. 16,167 (b) Rs. 32,333
(c) Rs. 24,250 (d) Rs. 25,000
26. If sales are Rs. 2,000 and the rate of gross profit on cost of goods sold is 25% than the cost of
goods sold will be
(a) Rs. 1,600 (b) Rs. 1,700
(c) Rs. 1,500 (d) Rs. 1,800
27. The profit of last three years are Rs. 42,000, Rs. 39,000 and Rs. 45,000. Find out the goodwill
at two year’s purchase.
(a) Rs. 1,26,000 (b) Rs. 42,000
(c) Rs. 36,000 (d) Rs. 84,000
28. If a purchase return of Rs. 1,000 has been wrongly posted to the debit of the sales return
account, but has been correctly entered in the suppliers account then the total of the
(a) The credit side of the trial balance will be Rs. 2000 more than the debit side
(b) The debit side of the trial balance will be Rs. 2000 more than the credit side
(c) Trial balance would show the credit side to be Rs. 1000 more than the debit
(d) Trial balance would show the debit side to be Rs. 1000 more than the credit
29. 10,000 equity shares of Rs. 10 each were issued to public at a premium of Rs. 2 per share.
Applications were received for 12,000 share. Amount of securities premium account will be
(a) Rs. 40,000 (b) Rs. 20,000
(c) Rs. 16,000 (d) Rs. 24,000
30. Rachna and Payal are partners sharing profits and losses equally. They admitted Ashna for
1/3 share in the firm. The new profit sharing ratio will be
(a) 2:2:1 (b) 3:2:1
(c) 1:2:1 (d) 1:1:1
86 Common Proficiency Test (CPT) Volume - II
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31. Rohit purchased a machine on 1.1.2010 for Rs. 1,20,000 installation expenses were Rs. 10,000.
Residual value after 5 years Rs. 5,000. On 01.02.2010 expenses for repair were incurred to
the extent of Rs. 2,000. Depreciation is provided under straight line method. Annual
depreciation is
(a) Rs. 20,000 (b) Rs. 22,000
(c) Rs. 25,000 (d) Rs. 26,000
32. A firm has on average profit of Rs. 60,000; rate of return on capital employed is 12.5% p.a.;
total capital employed in the firm was Rs. 4,00,000. Goodwill on the basis of two year’s
purchase of super profit is
(a) Rs. 15,000 (b) Rs. 10,000
(c) Rs. 20,000 (d) None of the above
33. Ansh and Vansh entered into a joint venture where Ansh purchased goods costing Rs.2,40,000.
Vansh sold goods costing Rs. 1,60,000 at Rs. 2,40,000. Balance goods were taken over by
Ansh at same gross profit percentage as in case of sale. The sale value of goods taken over
will be
(a) Rs. 40,000 (b) Rs. 1,00,000
(c) Rs. 1,20,000 (d) Rs. 80,000
34. 18% investment of Rs. 1,00,000 and interest received on investment Rs. 15,000 have been
given in the trial balance for the period ended on 31.3.2010. The amount of interest outstanding
in the final accounts will be
(a) Rs. 3,000 (b) Rs. 15,000
(c) Rs. 4,000 (d) Rs. 8,000
35. A draws a bill on B for Rs. 30,000 for mutual accommodation. A discounted that bill for Rs.
28,000 from bank and remitted Rs.14,000 to B. On due date A will send to B
(a) Rs. 15,500 (b) Rs. 15,700
(c) Rs. 17,000 (d) Rs. 15,000
36. If sales revenue is Rs. 4,00,000, cost of goods sold is Rs. 3,10,000 and operating expenses are
Rs. 60,000, the gross profit is
(a) Rs. 90,000 (b) Rs. 60,000
(c) Rs. 30,000 (d) Rs. 2,50,000
37. Average stock = Rs. 12,000. Closing stock is Rs. 3,000 more than opening stock. The value of
closing stock will be
(a) 24,000 (b) 12,000
(c) 10,500 (d) 13,500
Common Proficiency Test (CPT) Volume - II 87
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MODEL TEST PAPER - 4
38. Goods costing Rs. 2,00,000 sent out to consignee at cost + 25%. Invoice value of the goods
will be
(a) Rs. 2,40,000 (b) Rs. 2,30,000
(c) Rs. 2,50,000 (d) None of the above
39. The Board of Directors of a company decides to issue minimum number of equity shares of
Rs. 10 each at 10% discount to redeem Rs. 5,00,000 preference shares. The maximum amount
of divisible profits available for redemption is Rs. 3,00,000. The number of share to be issued
by the company will be
(a) 18,182 shares (b) 22,223 shares
(c) 20,000 shares (d) 25,000 shares
40. Ajay bought goods of the value Rs. 20,000 and consigned them to Saroj to be sold by them on
a joint venture, profits being divided equally. Ajay draws a bill on Saroj for an amount
equivalent to 80% of cost of consignment. The amount of bill will be
(a) Rs. 20,000 (b) Rs. 4,000
(c) Rs. 16,000 (d) None of the above
41. Beta Ltd. was formed as a public limited company with on authorised capital of Rs. 20,00,000
divided into shares of Rs. 10 each. Beta Ltd. issued fully paid up shares of Rs. 10 each in
consideration of acquiring asset worth Rs. 3,80,000 from M/s Rahim Bros. The shares are
issued at a premium of 25%. To record this transaction share capital need to be credited by
(a) Rs. 3,04,000 (b) Rs. 76,000
(c) Rs. 3,80,000 (d) Rs. 3,00,000
42. Manish purchased a car for Rs. 5,00,000 making a down payment of Rs. 1,00,000 and signing
a bill payable of Rs. 4,00,000. As result of this transaction
(a) Asset will increase by 4,00,000
(b) Liabilities will increase by 4,00,000
(c) Both (a) and (b)
(d) Asset will increase by 5,00,000
43. The cash-book showed on overdraft of Rs. 1,500 but the pass book made up to the same date
showed that cheque of Rs. 100, Rs. 50 and Rs. 125 respectively had not been presented for
payment and the cheque of Rs. 400 paid into account had not been cleared. The balance as
per the pass book will be
(a) Rs. 1,625 (b) Rs. 1,375
(c) Rs. 2,175 (d) Rs. 1,100
44. If repair cost is Rs. 25,000, white wash expenses are Rs. 5,000 cost of extension of building is
Rs. 2,50,000 and cost of improvement in electrical wiring is Rs. 19,000. The amount to be
capitalized will be
(a) Rs. 2,69,000 (b) Rs. 2,99,000
(c) Rs. 2,80,000 (d) Rs. 2,74,000
88 Common Proficiency Test (CPT) Volume - II
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45. Ram draws a bill on Rahim for Rs. 30,000. Ram wants to endorse it to Shyam in settlement
of Rs. 35,000 at 2% discount and balance in cash. How much cash Ram will pay to Rahim.
(a) Rs. 5,000 (b) Rs. 4,200
(c) Rs. 4,300 (d) Rs. 4,600
46. Gopal Ltd. issued 20,000, 8% debentures of Rs. 10 each at par which are redeemable after 5
years at a premium of 20%. The amount of loss on redemption of debenture to be written off
every year will be
(a) Rs. 10,000 (b) Rs. 8,000
(c) Rs. 2,000 (d) Rs. 30,000
47. Gopal sent out certain goods to Kamal of Mumbai. 1/10 of the goods were lost in transit.
Invoice value of goods lost Rs. 12,500. Invoice value of goods sent out on consignment will be
(a) Rs. 1,20,000 (b) Rs. 1,40,000
(c) Rs. 1,25,000 (d) Rs. 1,00,000
48. Mohan and Sohan enter into joint venture sharing profits and losses equally. Mohan
purchased 100 kg of rice @ 20 kg. Brokerage paid Rs. 200, carriage Rs. 300 Sohan sold 90 kg
of rice @ Rs. 22 Kg. Balance rice was taken over by Sohan at cost. The value of rice taken
over to be recorded in joint venture will be
(a) Rs. 200 (b) Rs. 250
(c) Rs. 220 (d) Rs. 230
49. If unsold goods costing Rs. 20,000 is taken over by venturers at Rs. 15,000 the joint venture
A/c will be credited by
(a) Rs. 5,000 (b) Rs. 15,000
(c) Rs. 20,000 (d) NIL
50. On 1.6.09 X draws a bill on Y for Rs. 25,000. At maturity bill was dishonoured and noting
charges incurred Rs. 100. Y requested X to accept Rs. 5,100 in cash and for the balance X
draws a bill on Y for 2 months at 12% p.a. Interest amount will be
(a) Rs. 440 (b) Rs.400
(c) Rs.420 (d) Rs.410
51. On 1.8.09 Ram draws a bill on Moti for 30 days after sight. The date of acceptance is 8.8.09
the maturity date of the bill will be
(a) 10.9.09 (b) 8.9.09
(c) 9.9.09 (d) 11.9.09
52. Fees paid in cash to Notary Public is charged by them from
(a) Drawer (b) Drawee
(c) Holder of bill of exchange (d) None of the above
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MODEL TEST PAPER - 4
53. Ryan Ltd. issued 5,000, 12% debentures of Rs. 100 each at a premium of 10% which are
redeemed after 10 years at a premium of 20%. The amount of loss on redemption of debenture
to be written off every year will be
(a) Rs.8,000 (b) Rs.10,000
(c) Rs.30,000 (d) Rs.40,000
54. As per the Companies Act, “Interest accrued and due on debentures” should be shown
(a) Under Debentures Account
(b) As Current liabilities
(c) As Provision
(d) As a reduction of bank balance
55. Preference shares amounting to Rs. 2,00,000 are redeemed at a premium of 5% by issue of
equity shares amounting to Rs. 1,00,000 at a premium of 10% the amount to be transferred
to capital redemption reserve account will be
(a) Rs.1,05,000 (b) Rs.1,00,000
(c) Rs.2,00,000 (d) Rs.1,11,000
56. If the rate of dipreciation is same then the amount of depreciation under straight line method
vis-a-vis written down value method will be
(a) Equal in all years
(b) Equal in the first year but higher in subsequent years
(c) Equal in the first year but lower in subsequent years
(d) Lower in the first year but equal in subsequent years
57. A of Mumbai sends goods to B of Delhi, the goods are to be sold at 125% of cost which is
invoice price or above. B was entitled to the commission of 10% on sales plus 25% on any
surplus realised above invoice price. 10% of goods sent out on consignment (invoice value
of which is Rs. 12,500) were destroyed. 75% of the total consignment is sold by B at Rs.
1,00,000. The amount of commission payable will be
(a) Rs.10,000 (b) Rs.11,562.50
(c) Rs.9,700 (d) Rs.9,000
58. A and B enter into a joint venture sharing profits and losses in the ratio 2:3. Goods purchased
by A for Rs. 45,000. Expense increased by A Rs. 13,500 and by B Rs. 5,200. B sold the goods
for Rs. 85,000. Remaining stock taken over by B as Rs. 7,200. The profit of the venture will
be
(a) Rs.9,800 (b) Rs.35,700
(c) Rs.21,300 (d) Rs.28,500
59. On 1.4.2009 Mohan invested Rs. 1,00,000 in a business. Interest of capital is to be allowed @
12% p.a. Accounting year is financial year. Amount of interest to be charged to Profit and
Loss account for the year 2009-2010 is
(a) Rs.12,000 (b) Rs.9,000
(c) Rs.10,000 (d) Rs.11,000
90 Common Proficiency Test (CPT) Volume - II
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60. 1,000 kgs. of Apple are consigned to a whole saler the cost being Rs. 8 per kg. plus Rs. 925 of
freight. It is concluded that a loss of 15% is unavoidable the cost per kg. of apple will be
(a) Rs.9.41 (b) Rs.10.50
(c) Rs.10.00 (d) Rs.9.50
SECTION – B : MERCANTILE LAWS (40 MARKS)
61. Which of the following is not the legal requirements of a valid offer?
(a) It must be communicated to the offeree
(b) It must be made with a view to obtain offeree’s assent
(c) It must express offeror’s final willingness
(d) It must be made to specific person and not to public at large
62. A promisee is a person
(a) Who makes a promise
(b) A person who monitors the statement intentions of two parties
(c) To whom the promise is made
(d) Who fails to perform the promise
63. Silence cannot amount to offer by conduct. It is
(a) True (b) Partly true
(c) False (d) Partly false
64. Coercion involves
(a) Moral Pressure (b) Moral or Mental Pressure
(c) Mental Pressure (d) Moral and Mental Pressure
65. ‘A’ Offers to sell his car to ‘B’. Only A can accept or reject it. This is a case of
(a) General offer (b) Express offer
(c) Specific offer (d) Standing offer
66. A voidable contract is one which
(a) Can be enforced at the option of aggrieved party
(b) Cannot be enforced in a court of law
(c) Can be enforced at the option of both the parties
(d) Courts prohibit
67. According to the Indian Contract Act, 1872 an agreement must be
(a) In writing
(b) Registered
(c) Out of natural love and affection between two relations
(d) All of the above
Common Proficiency Test (CPT) Volume - II 91
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MODEL TEST PAPER - 4
68. Which one of the following is an essential element of a valid contract?
(a) Free consent (b) Consideration
(c) Competent parties (d) All of the above
69. Where no price is fixed by express agreement or by implication, the buyer shall pay the
seller
(a) Net realisable value (b) Reasonable price
(c) Resale price (d) Ad hoc price
70. Which of the following statements are correct?
(a) In case of sale the subject matter of contract exists at the time of sale
(b) The term does not include shares
(c) In a contract of sale, the price may be paid partly in cash and partly in goods valued in
terms of money
(d) A contract of sale must be in writing
71. According to Sale of Goods Act, 1930 a warranty is
(a) A stipulation essential to the main purpose of the contract
(b) A stipulation collateral to the main purpose of the contract
(c) Either (a) or (b)
(d) Both (a) and (b)
72. A stipulation in a contract of sale with reference to the goods which are the subject matter
thereof may be
(a) Condition (b) Warranty
(c) Condition precedent (d) Either (a) or (b)
73. Breach of a condition gives a right to
(a) Repudiate a contract
(b) Claim damages only
(c) Repudiate the contract and claim damages
(d) None of the above
74. Any stipulation other than time of payment is of the essence of the contract depends upon
(a) Stipulation as to time given under Section 11 of the Indian Contract Act, 1872
(b) Operation of law
(c) Terms of the contract
(d) All of the above
75. Lien in Sale of Goods Act 1930, is a right to
(a) Regain possession of goods
(b) Retain possession of goods
(c) Give away possession of goods
(d) All of the above
92 Common Proficiency Test (CPT) Volume - II
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76. The right of lien is available to the unpaid seller, only when
(a) Seller is not in possession of the goods
(b) Seller is in possession of goods
(c) Seller delivered the goods to the carrier
(d) Seller has delivered the goods to the buyer
77. The term ‘business’ under the the Partnership Act 1932, includes
(a) Trade (b) Occupation
(c) Profession (d) All of the above
78. A minor when admitted into partnership
(a) Can opt to continue as a partner or not, on attaining majority
(b) Becomes personally liable
(c) Cannot inspect any books of accounts of the firm
(d) Can interfere in the day to day affairs of the firm
79. For admitting a minor into the benefits of the partnership, which of the following is required?
(a) Consent of guardian
(b) Consent of Registrar of firms
(c) Consent of all the partners of the firms
(d) Consent of majority partners of the firm
80. A partnership firm is compulsorily dissolved where___________.
(a) All partners have become insolvent
(b) Firm’s business has become unlawful
(c) The fixed term has expired
(d) In cases (a) and (b) only
81. Unregistered firm cannot file a suit against a _________ to enforce any right arising from a
contract.
(a) Incoming partner
(b) Outgoing partner
(c) Third party
(d) Minor admitted to benefits of partnership.
82. A ware house keeper agrees to hold goods of X on behalf of B at X’s request . This amounts
to:
(a) Symbolic delivery (b) Constructive delivery
(c) Actual delivery (d) Both (a) & (b)
83. Caveat Emptor means-
(a) Responsibility of the seller to inspect the goods
(b) Responsbility of the seller to reveal the defect
(c) Responsibility of the buyer to inspect goods
(d) Seller is responsible to the buyer.
Common Proficiency Test (CPT) Volume - II 93
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MODEL TEST PAPER - 4
84. In a contract of sale of goods, implied condition as to description of goods applies where
goods are sold by _________.
(a) Sample (b) Description
(c) Sample and description (d) Junk dealer
85. When the goods have not been sold on credit and the buyer fails to pay the ________, the
unpaid seller can exercise his right of lien.
(a) Substantial portion of the price
(b) Whole of the price
(c) Part of the price
(d) Minimum portion of the price
86. In the Indian Partnership Act, 1932, partners in a firm are entitled to share profits _____and
contribute to losses:
(a) Equally, equally
(b) Equally in capital contribution ratio
(c) Profit sharing ratio, in capital contribution ratio
(d) Capital contribution ratio, equally
87. A travel agency operates buses from Jaipur to Agra. The bus standing at its bus terminals is
with a view to taking the passengers. There is __________to take passengers.
(a) Internal offer (b) External offer
(c) Implied offer (d) Express offer
88. The parties to a contract should be __________ to contract.
(a) Able (b) Competent
(c) Reliable (d) Incapacitated
89. In a wagering agreement, the future event is the _________ in determining the agreement.
(a) Collateral aspect (b) Primary factor
(c) Secondary factor (d) (a) and (b)
90. In case of firms carrying on business other than banking, maximum numbers of partners
are ________.
(a) 20 (b) 21
(c) 25 (d) 10
91. _________ is an error ...... belief about something.
(a) Fraud (b) Representation
(c) Mistake (d) Misrepresentation
92. There can be a stranger to a ________.
(a) Contract (b) Consideration
(c) Agreement (d) Promise
94 Common Proficiency Test (CPT) Volume - II
© The Institute of Chartered Accountants of India
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