CA - CPT ICAI Model Test Paper - 4

“Business unit is separate and distinct from the person who supply capital to it”, is based on

State the case where the going concern concept is applied?

If two or more transactions of the same nature are journalised together having either the debit or the credit account common is known as

If the cheque issued is not presented for the payment upto the date of the preparation of the Bank Reconciliation Statement, then the balance as per Pass Book will be

Whenever errors are noticed in the accounting records, they should be rectified

Parties to a bill of exchange are

All the expenditures and receipts of revenue nature go to

A _______ is sent to a customer when he returns the goods.

Noting charges are paid at the time of _______ of a bill.

Depreciation of fixed assets is an example of _______ expenditure.

Interest on drawings is _______ for the business.

An amount of Rs.200 received from A credited to B would affect _______

As per section 12 of Negotiable Instruments Act, which of the following is not a foreign bill?

In _______ method, depreciation is charged by allocating depreciable cost in proposition of the annual output to the probable life-time output.

General reserve at the time of admission of a new partner is transferred to ______.

A suspense account facilitates the preparation of ______  even when the ______ has not tallied.

Recording of a transaction in the ledger is called ______.

Accounting has certain norms to be observed by the accountants in recording of transactions and preparation of financial statements. These norms reduce the vagueness and chances of misunderstanding by harmonizing the varied accounting practices. These norms are

RPG Ltd. purchased equipment from PQR Ltd. for Rs.50,000 on 1^st April, 2009.  The freight and cartage of Rs.2,000 is spent to bring the asset to the factory and Rs.3,000 is incurred on installing the equipment to make it possible for the intended use.  The market price of machinery on 30^th April, 2010 is Rs.60,000 and the accountant of the company wants to disclose the machinery at Rs.60,000 in financial statements.  However, the auditor emphasizes that the machinery should be valued at Rs.55,000 (50,000+2,000+3,000) according to:

Mr. A started a business on 1^st January 2009 with Rs. 5,00,000. During the year he bought goods worth Rs. 1,00,000 on credit and sold 80% of the same goods at profit of 20% on cost.At the end of the year 2009, the amount of opening inventory to be shown in the trial balance of Mr. A will be

Trade receivables on 31^st March 20 10 are Rs.5 5,200 . Further bad debts are Rs.2 00.Provision for doubtful debts are to be made on Trade receivables @ 5% and also provision of discount is to be made on Trade receivables @ 2%. The amount of provision of doubtful debts will be

A firm purchases a 5 years’ lease for Rs. 40,000 on 1^st January. It decides to write off depreciation on the Annuity method, presuming the rate of interest to be 5% per annum.The annuity for it is 0.230975. The amount of annual depreciation will be

The balance of machine on 31^st March 2010 is Rs.72,900 (after charging  depreciation of the year). The machine was purchased on 1st April 2007 charging depreciation @10% p.a. by diminishing balance method. The cost price of the machine as on 1^st April 2007 would be

On May 01, 2009, Y Ltd. issued 7% 40,000 convertible debentures of Rs.100 each at a premium of 20%. Interest is payable on September 30 and March 31, every year.Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to Profit and Loss Account for the year ended March 31, 2010 will be

A company cannot issue redeemable preference shares (not issued for infrastructure projects) for a period exceeding

E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro-rata basis. The amount payable on application is Rs.2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be

Z Ltd. issued 10,000 shares of Rs.10 each. The called up value per share was Rs.8. The company forfeited 200 shares of Mr. A for non-payment of 1st call money of Rs.2 per share. He paid Rs.6 for application and allotment money. On forfeiture, the share capital account will be _________.

R, J and D are partners sharing profits in the ratio 7:5:4. D died on 30^th June 2010 and profits for the accounting year 2009-2010 were Rs. 24,000. How much share in profits for the period 1^st April 2010 to 30^th June 2010 will be credited to D’s Account?

A company sends its cars to dealers on ‘sale or return’ basis.  All such transactions are however treated like actual sales and are passed through the sales day book.  Just before the end of the financial year, two cars which had cost Rs.55,000 each have been sent on ‘sale or return’ and have been debited to customers at Rs.75,000 each, cost of goods lying with the customers will be

A second hand car is purchased for Rs. 10,000, the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission.  The amount debited to car account will be

A bill of Rs. 12,000 was discounted by A with the banker for Rs. 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from A’s bank balance at the time of such dishonour?

In a joint venture between A and B, A purchased goods costing Rs.42,500. B sold goods costing Rs. 40,000 at Rs. 50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over by A will be:

Mr. X is a partner in a firm.  He withdraws Rs.200 at the end of each month.  If rate of interest on drawings is @ 5% p.a., the interest on drawings is

Mohan and Sohan are partners in a firm sharing profits and losses in the ratio 5:3. The firm earned profits during 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 to whom 100 shares of Rs.10 each was allotted at par, paid Rs.3 on application, Rs.3 on allotment but could not pay the first and final call money of Rs.4.  His shares were forfeited by the directors.  The amount to be credited to shares forfeited account will be

Balance as per cash book is Rs. 5,000.  Cheques issued but not presented for payment debited the account of firm by Rs. 20.  Balance as per pass book will be

Following are the extracts from the trial balance of a firm as on 31^st December, 2009:

Following are the extracts from the Trial Balance of a firm as on 31^st December, 2009.

(i) After preparing the trial balance, it is learnt that a customer, Mohan became insolvent and therefore, the entire amount of Rs.3,000 due from him was irrecoverable.

(ii) 10% provision for bad and doubtful debts is generally created.
The amount of provision for bad and doubtful debts to be charged to profit and loss account will be

A and B are partners in a firm.  During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use.  Interest on drawings is to be charged @ 10% p.a. The interest on drawings will be

A and B are partners in a firm sharing profits and losses in the ratio of 3:2.  They have invested capitals of Rs.40,000 and Rs.25,000 respectively.  As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits.  During the year, the firm earned a profit of Rs.3,900 before allowing interest.  The net profit will be apportioned as

Our acceptance to Mr. A for Rs.8,000 renewed for 3 months on the condition that Rs.2,000 is paid in cash immediately and the new bill to be drawn for remaining balance to carry out interest at 18% p.a. The amount of the renewed bill of exchange will be

Advertisement expenditure of Rs.10,000 paid on 30.12.2009, the advertisement in respect of which has appeared in the magazines of January, 2010.This expenditure will be

On 1^st January, 2009, Alpha Ltd. purchased a machine for Rs.50,000 and spent Rs.4,000 on its carriage and Rs.2,000 on its installation. On the date of purchase, it was estimated that the effective life of the machine will be 10 years and after 10 years its scrap value will be Rs.6,000.  Depreciation is charged on straight line basis. Depreciation for the year 2009 will be

Ram and Gopal are partners sharing profits and losses in the ratio of 2:1.  Gopal gave a loan of Rs.12,000 to the firm. They did not have any specific agreement about interest on loan mentioned in the partnership deed. Gopal claims interest on loan @ 10% p.a. The interest on loan as per the rules of the Partnership Act, 1932 will be:

Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs.40,000 and Rs.50,000 respectively on the 1^st of July, 2009. Interest on capital is to be charged @ 10% p.a.  Books of account are to be closed on 31^st December, 2009. Interest on capital is

A firm has an 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 years purchase of super profits is

A transport company purchases a truck for Rs.2,00,000 on 1^st January, 2009.  It charges 20% depreciation p.a. according to w.d.v. method.  The truck was sold on 1^st July, 2010 for a sum of Rs.1,60,000.The  profit or loss on sale of truck is

Ram started business with cash Rs.50,000 Purchased goods from Mohan on credit Rs.20,000 Sold goods to Shyam (costing Rs.3,000) for cash Rs.3,600 The accounting equation on the basis of the above transactions will be

Value of physical inventory on 15.4.2010 was Rs.3,00,000.  Sales amounting Rs.1,00,000 and purchases worth Rs.50,000 were held between 31.3.2010 and 15.4.2010. Goods are sold at a profit of 20% on sales. Value of inventory as on 31.3.2010 is

A and B entered into a joint venture agreement to share the profits and losses in the ratio of 2:1.  A supplied 100 radio sets worth Rs.1,00,000 to B incurring expenses of Rs.5,000 for freight and insurance. B sold 95 radio sets for Rs.1,20,000. 5 radio sets were taken over by B. The profit/loss on venture will be

The liabilities that are payable in more than a year and are not be liquidated from current assets

Record of purchase of T.V.parts.

Q. The value of T.V. sets on 15 March, as per LIFO will be 

Goods costing Rs. 10,000 were sold at 1/6 profit on selling price. The sale value  will be

A purchased a computer costing Rs.10,000. Repairing expenses Rs.1,000 and miscellaneous expenses Rs.500 were incurred by him on the Computer. He sold the computer at 20% margin on selling price.  The sales value will be

Priya sold goods to Nidhi for Rs.1,00,000. Priya will grant 5% discount to Nidhi. Nidhi requested Priya to draw a bill. The amount of the bill will be

A bill is drawn on 28^th March, 2010 for one month after sight. The date of acceptance is 2^nd April, 2010. The maturity  date of the bill will be

Under mutual accommodation, Mohan drew a bill on Shyam for Rs.50,000 for 3 months.Proceeds are to be shared equally. Mohan got the bill discounted at 12% p.a. and remits required proceeds to Shyam. The amount of such remittance will be

Cross Offers means

Valid Contract:

Which of the following is a requirement for misrepresentation to exist?

Which of the following agreements is void?

Which of the following offers constitute a valid offer?

Which of the following statements is true?

Contract caused by which of the following is void?

Suppose the time fixed for performance of the contract has expired but the time is not essential.What is the remedy to the promisee in the circumstances?

What is legal terminology for the doing or not doing of something which the promisor desires to be done or not done?

Goods must be the same as wanted by the buyer. This is

Goods dependant upon certain events which may or may not happen.

Which of the following is a not document of title to goods?

The term ‘goods’ for the purpose of the Sale of Goods Act, 1930 includes

In which of the following cases, the unpaid seller loses his right of lien?

In case of sale of standing trees, the property passes to the buyer when trees are

Partnership

X and Y agree to work together as carpenters but X shall receive all profit and shall pay wages to Y. The relation between X and Y is that

Which of the following is an essential feature of partnership?

Which of the following acts are not included in the implied authority of a partner?

Implied contract, even if not in writing or express words, is perfectly ________if other conditions are satisfied

R, an optical surgeon, employs S as the assistant for a term of three years and S agrees not to practice as a surgeon during this period. This contract is _________

________ consideration is no consideration in England.

A agrees to pay Rs. 500 to B if it rains, and B promises to pay a like amount to A if it does not rain, this agreement is called ___________.

When the offeree offers to qualified acceptance of the offer subject to modifications and variations he is said to have made a ___________.

When after the formation of a valid contract, an event happens which makes the performance of contract impossible, and then the contract becomes ___________.

Where the performance of a promise by one party depends on the prior performance of promise by the other party, such reciprocal promises fall under the category of __________.

The basis of ‘quasi contractual relations’ is the __________.

A agrees to pay Rs. 1000 to B if a certain ship returns within a year.  However, the ship sinks within the year.  In this case, the contract becomes __________

Where an agreement consists of two parts once legal and the other illegal, and the legal part is separable from the illegal one, such legal part is __________.

The Sale of Goods Act, 1930 came into force on __________.

Contract of Sale is __________.

Where in an auction sale, the seller appoints more than one bidder, the sale is __________.

Where the goods are delivered to a carrier or wharfinger for the purpose of transmission to the buyer, the delivery is __________.

The property in the goods means the __________.

Untill goods are ascertained there is merely __________.

A genuine pre-estimate of the probable loss is __________.

Discharge by mutual agreement may involve__________.

A enquires from B, “Will you purchase my cow for $ 100?” B replies, “I shall purchase your cow for $ 100 provided you purchase my parrot for $ 120.” In this case __________.

A sold 1000 tins of oil to B without appropriating any particular oil to the contract. B sold 600 tins out it to C and gave delivery order addressed to A. C lodged the delivery order with A requesting him to “await” his orders. Meanwhile, B became insolvent and thus A became the unpaid seller.

X fraudulently induced Y to enter into partnership with him and Y pays a premium of Rs.5,000/- to A. Within three months the firm incurs liabilities to the extent of Rs.10,000/-.On discovering the fraud, Y files a suit for the rescission of the contract creating partnership and contract is rescinded. The creditors of the firm also levy attachment on Y who pays Rs.3,000/- to them as well.  Which of the following is correct?

Find the correct match:

Suppose the demand for meals at a medium-priced restaurant is elastic. If the management of the restaurant is considering raising prices, it can expect a relatively:

Which of the following is not a characteristic of a “price taker”?

Which cost increases continuously with the increase in production?

Which one is not an assumption of the theory of demand based on analysis of indifference curves?

Which of the following statements is correct?

We can say Indian agriculture has become modern since:

Which of the following statements is correct?

Jet Airways and Kingfisher are examples of:

All of the following developments were noticed during 1991(when economic reforms were enforced) except one. Identify it.

All of the following statements except one are correct about the foreign trade policy, 2004-09. Identify the incorrect statement:

The economic reforms have failed to:

Broad money refers to

Nationalization of banks aimed at all of the following except:

In order to encourage investment in the country, the RBI may:

Which of the following statements is incorrect?

————— expressed the view that “Economics is neutral between end”.

The law of demand refers to —————.

Increasing returns imply —————.

In monopolistic competition, a firm is in long run equilibrium —————.

Of the major 12 ports, ———— has been top traffic handler for the last five years.

On an average, one post office in India serves —————.

At present, nearly ————— percent of the energy consumed is obtained from noncommercial traditional sources.

————— refers to the transfer of assets or services functions from public to private ownership.

At present only ————— industries are reserved for the public sector.

At present, Bank rate is ————— percent. (Sept. 2014)

————— is the official minimum rate at which the central bank of a country is prepared to rediscount approved bills held by banks.

EPCG stands for —————.

The area under irrigation has ————— over the years in India.

The service sector in India now accounts for —————.

————— is the Banker’s Bank  in India.

According to the 2001 census the total literacy ratio is

(Direction 133 - 137) on based the demand and supply diagrams in Figure 1.

D₁ and S₁ are the original demand and supply curves. D₂, D₃, S₂ and S₃ are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change?

Q. Ass ume X is a no rmal good.  H olding ev erything else constant, as sume that income rises and the price of a factor of production also increases. What point in Figure 1 is most likely to be the new equilibrium price and quantity? 

D₁ and S₁ are the original demand and supply curves. D₂, D₃, S₂ and S₃ are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change?

Q. We are analyzing the market for good Z.  The price of a complement good, good Y, declines.
At the same time, there is a technological advance in the production of good Z. What point Figure 1 is most likely to be the new equilibrium price and quantity?

D₁ and S₁ are the original demand and supply curves. D₂, D₃, S₂ and S₃ are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change?

Q. Heavy rains in Maharashatra during 2005 and 2006 caused havoc with the rice crop. What point in Figure 1 is most likely to be the new equilibrium price and quantity? 

D₁ and S₁ are the original demand and supply curves. D₂, D₃, S₂ and S₃ are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change?

Q. As sume that cons umers expect the prices o n new cars to sig nificantly increase next year.  What point in Figure 1 is most likely to be the new equilibrium price and quantity?

D₁ and S₁ are the original demand and supply curves. D₂, D₃, S₂ and S₃ are possible new demand and supply curves. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change?

Q. What combinations of changes would most likely decrease the equilibrium quantity?

(Direction 138 - 141) Use Table 1 to answer questions .

Q. Refer to Table 1 which lists the average costs of a perfectly competitive firm. If the price of the good is Rs 13, the firm will be produce 

Q. Refer to the competitive firm in Table 1. If the market price is Rs 31, the firm will produce:

Q. In Table 1, if price is Rs 26, the perfectly competitive firm will

Q. In Table 1, if price is Rs 34, the perfectly competitive firm will:

(Direction 142 - 147) Read the following paragraph and answer Questions.

Anisha quit her job at a private company where she earned Rs. 2,90,000 a year. She withdrew Rs. 4,00,000 in a savings account that earned 10% interest annually to buy a second hand mini bus to commune passenger between Cannaught Place and Noida. There are 1000 passengers who will pay Rs. 4000 a year each for commuter services; Rs. 2800 from each passenger goes for petrol, maintenance, depreciation etc.

Q. What is Anisha’s total revenue from her commuter service?

Anisha quit her job at a private company where she earned Rs. 2,90,000 a year. She withdrew Rs. 4,00,000 in a savings account that earned 10% interest annually to buy a second hand mini bus to commune passenger between Cannaught Place and Noida. There are 1000 passengers who will pay Rs. 4000 a year each for commuter services; Rs. 2800 from each passenger goes for petrol, maintenance, depreciation etc.

Q. Calculate Anisha’s accounting costs? 

Anisha quit her job at a private company where she earned Rs. 2,90,000 a year. She withdrew Rs. 4,00,000 in a savings account that earned 10% interest annually to buy a second hand mini bus to commune passenger between Cannaught Place and Noida. There are 1000 passengers who will pay Rs. 4000 a year each for commuter services; Rs. 2800 from each passenger goes for petrol, maintenance, depreciation etc.

Q. Calculate Anisha’s economic cost?

Anisha quit her job at a private company where she earned Rs. 2,90,000 a year. She withdrew Rs. 4,00,000 in a savings account that earned 10% interest annually to buy a second hand mini bus to commune passenger between Cannaught Place and Noida. There are 1000 passengers who will pay Rs. 4000 a year each for commuter services; Rs. 2800 from each passenger goes for petrol, maintenance, depreciation etc.

Q. We can say that Anisha:

Anisha quit her job at a private company where she earned Rs. 2,90,000 a year. She withdrew Rs. 4,00,000 in a savings account that earned 10% interest annually to buy a second hand mini bus to commune passenger between Cannaught Place and Noida. There are 1000 passengers who will pay Rs. 4000 a year each for commuter services; Rs. 2800 from each passenger goes for petrol, maintenance, depreciation etc.

Q. Calculate Anisha’s accounting profit/loss?

Anisha quit her job at a private company where she earned Rs. 2,90,000 a year. She withdrew Rs. 4,00,000 in a savings account that earned 10% interest annually to buy a second hand mini bus to commune passenger between Cannaught Place and Noida. There are 1000 passengers who will pay Rs. 4000 a year each for commuter services; Rs. 2800 from each passenger goes for petrol, maintenance, depreciation etc.

Q. Calculate Anisha’s economic profit/loss? 

If the local pizzeria raises the price of a medium pizza from Rs.60 to Rs.100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of demand for pizzas is: (use arc Elasticity Method)

Suppose a consumer’s income increases from Rs.30,000 to Rs.36,000. As a result, the consumer increases her purchases of compact discs (CDs) from 25 CDs to 30 CDs. What is the consumer’s income elasticity of demand for CDs?

If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%, the cross-price elasticity of demand between beef and chicken is

The entire upper part of a table is known as

Ogive is a

In case of an even number of observations which of the following is median?

If the A.M. and G.M. for two numbers are 6.50 and 6 respectively then the two numbers are

If all the observations are increased by 10, then

Mode of  0, 3, 5, 6, 7, 9, 12, 0, 2 is

What is spurious correlation?

The line x = a + by represents the regression equation of

When ‘p’  = 0.5, the binomial distribution is

A population comprises 5 members. The number of all possible samples of size 2 that can be drawn from it with replacement is

Tally marks determines ______.

______ always lies in between the arithmetic mean & mode.

In case ‘The ages of husbands and wives’ correlation is ______.

If P = 0, then the two events A and B are ______ .