CA - CPT ICAI Model Test Paper - 7

Material costing Rs. 700 in the erection of the machinery and the wages paid for it amounting to Rs. 400 should be debited to:

Difference of totals of both debit and credit side of the trial balance is transferred to

“Inventories should be out of godown in the sequence in which they arrive” is based on:

The value of an asset after deducting depreciation from the historical cost is known as:

Expenses incurred to retain the title of a building is a

Carriage inwards is debited to

A bill has been drawn on 26.2.2010 payable after 90 days. The maturity date of the bill will be _________

If total of all debits of a ledger account is more than the total of all credits of the same account, then the balancing figure is placed at the __________

The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to __________

A minimum quantity of inventory always held as precaution against out of inventory situation is called __________

M/s Bhaskaran & Co. drew a three months’ bill of Rs. 6,000 on M/s Patel & Co. on 1.1.2010 payable to M/s Surendran & Co. or bearer. Here the payee will be _______

Fluctuating capital account is credited with __________

If the incoming partner brings any additio nal amount in cash other than his capital contributions then it is termed as ________

Memorandum joint venture account is prepared _________

In case of del-credere commission provided by consignor to consignee, bad debts is a loss of _________

The party who sends the goods for sale on fixed commission basis is __________

Discounting of bill by the drawer is done with________

Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:

M/s Mittal & Sen & Co. sends goods costing Rs. 50,000 to M/s Suneja & Jadeja & Co. for sale at invoice price. The invoice price of the goods was Rs. 60,000. Former spends Rs. 2,000 on freight for sending the delivery and later spends Rs. 1,500 for receiving the delivery.M/s Suneja & Jadeja & Co. sold 90% of goods at invoice price and earned a commission of Rs. 5,400. In the due course he made some credit sales also out of which some amount were proved to be bad and was borne by him only. Remaining goods were taken back by M/s Mittal & Sen & Co. The balance due was paid by M/s Suneja & Jadeja & Co. through a demand draft. The above transactions are in the nature of :

It is decided to form a partnership with a total capital of Rs. 6,00,000. Three partners Ajay, Vijay and Sanjay who will share profits and losses in the ratio of 5:3:2, agreed to contribute proportionate capital. Their capital contribution will be:

Aditya Ltd. issued 50,000 equity shares of Rs. 10 each for subscription. 40,000 shares were subscribed by the public by paying Rs. 3 as application money. Number of shares allotted to public by Aditya Ltd. will be:

A company issued 1,00,000 equity shares of Rs.10 each at a premium of Rs. 2 and 5,000 10% Debentures of  Rs. 100 each at 10% discount. All the shares and debentures were subscribed and allotted by crediting 10% Debentures account with :

Preference shares amounting to Rs. 1,00,000 are redeemed at a premium of 5% by issue of shares amounting to Rs. 50,000 at a premium of 10%. The amount to be transferred to capital redemption reserve account will be:

On 1^st June 2009, Harsh Ltd. issued 4,000 9% convertible debentures of Rs. 100 each at a premium of 10%. 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 31^st March 2010 will be :

Followings are the information related to Great Ltd.:
(i) Equity share capital called up Rs. 3,00,000, (ii) Call-in advance Rs. 10,000, (iii) Call in arrears Rs. 15,000 and (iv) Proposed dividend 20%. The amount of dividend payable by Great Ltd. will be:

3,000 shares of Rs. 10 each of Krishna were forfeited by crediting Rs. 5,000 to share forfeiture account. Out of these, 1,800 shares were re-issued to Radhe for Rs. 9 per share. The amount to be transferred to capital reserve account will be

Bittu Ltd. issued 10,000 shares of Rs.10 each to public. Applications were received for 12,000 shares by paying Rs.2 per share. Shares were allotted on pro-rata basis to the public and excess money was kept to be used in allotment and further calls. Kittu failed to pay the allotment money of Rs.3 per share and her 1,000 shares were forfeited after due notice. No further calls were made to her. Her call in arrears was

He, She and Me are partners in a firm sharing profits and losses in the ratio of 5:3:2. Firm took Separate Life Policy of Rs. 50,000, Rs.1,00,000 and Rs.1,50,000 for He, She and Me respectively. The share of Me in the policy will be:

Vijay, Vineet and Vivek are partners in a firm sharing profits or losses in 3:2:1. Vijay retires and goodwill of the firm was revalued at Rs.18,000. If new profit sharing ratio is 2:1, then Vijay’s share of goodwill debited respectively to Vineet and Vivek’s capital account will be:

Amit, Rohit and Sumit are partners sharing profits and losses in the ratio of 5:4:3. Sumit retires and if Amit and Rohit shares profits of Sumit in 4:3, then new profit sharing ratio will be:

Rachna and Sapna are partners sharing profits equally. They admitted Ashna for 1/3 share in the firm. The new profit sharing ratio will be:

Find the goodwill of the firm using capitalization method from the following information:
Total capital employed in the firm                    Rs. 80,00,000
Reasonable rate of return                               15%
Profits for the year                                           Rs. 12,00,000

A trader has credited certain items of sales on approval aggregating Rs. 60,000 to Sales Account.  Of these, goods of the value of Rs.16,000 have been returned and taken into inventory at cost Rs. 8,000 though the record of return was omitted in the accounts.  In respect of another parcel of Rs.12,000 (cost being Rs. 6,000) the period of approval did not expire on the closing date.  Cost of goods lying with customers should be:

On 1^st January 2010 Nisha draws a bill for Rs. 5,000 on Disha for 3 months for mutual accommodation. On the same day, Disha draws a bill for Rs. 6,000 on Nisha for 4 months.Both the bills were discounted with the bank for Rs. 4,850 and Rs. 5,700 respectively. 50% of the receipt was sent to the other party. First bill was met on its due date. On the maturity date of Nisha’s acceptance, Disha will send

Gaurav has to pay Rs. 10,000 to Saurabh on account of Bill accepted by him for credit purchases. Due to financial crisis, Gaurav was unable to pay the bill and was declared insolvent and his estate realized only 30 paisa in a rupee. The amount to be debited to bad debts account of Saurabh will be

Ram in a joint venture with Shyam purchased goods costing Rs. 20,000 and sends to Shyam for sale incurring Rs.1,000 on freight. Shyam took the delivery and paid Rs. 500 as carriage.He sold the goods costing Rs. 18,000 for Rs. 25,000 and kept the remaining goods at cost price. Sharing equal profits of the venture, amount to be paid by Shyam to Ram will be:

Expenses incurred by the consignor on sending the goods to the consignee is Rs.1,000 for insurance, Rs. 1,500 on freight and Rs.500 on packing the goods. While expenses incurred by the consignee on behalf of the consignment are Rs. 800 on octroi, Rs. 600 as godown charges and Rs. 1,200 as selling expenses. The amount to be excluded  while calculating consignment inventory will be:

The holder of debentures issued as collateral security is entitled to interest on

Opening inventory of the year is Rs. 20, 000, Goods purchas ed during the y ear is Rs. 1,00,000, Carriage Rs. 2,000 and Selling expenses Rs.2,000. Sales during the year is Rs. 1,50,000 and closing inventory is Rs. 25,000. The gross profit will be:

Following errors have been rectified at the end of the year:
(i) The return inward book was undercast by Rs. 150.
(ii) The return outward book was overcast by Rs. 1,000.
(iii) A payment of Rs.1,500 on account of salaries has been posted twice in the salaries account although entered correctly in the cashbook.

The above errors if rectified, will give correct trial balance. Before rectification, balance of suspense account was

Given below are the ledger balances of a management consultancy firm: Capital Rs. 4,00,000, Computer Rs. 25,000, Air conditioner and furniture Rs. 1,00,000, Fixed Deposits Rs. 2,00,000, Salaries Rs. 8,00,000, Fee received Rs. 12,00,000, Travelling expenses Rs. 1,50,000, Rent and office expenses Rs. 2,40,000, Cash balances Rs. 1,80,000. Bank overdraft Rs. 95,000. The total of trial balance will be:

M/s Delhi Stationers purchase goods from the manufacturers, do packaging and labelling and sell to their customers. At the year-end they had 1,000 pieces of toilet soaps in hand, purchase price of which is Rs. 3.25 per piece. These are yet not packed and labelled. The packaging cost per unit is Re. 0.35 per piece and selling price is Rs. 4.25 per piece. The historical cost and selling price of the closing inventory will be

Depreciable amount of the machinery is Rs. 11,00,000. The machine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows:

1-3 year                        5 lacs units each year
4-6 year                        3 lacs units each year
7-10 year                      1.5 lacs units each year.

Annual depreciation for 1-3 year, using production units method will be ______

The cashbook showed an overdraft of Rs. 2,000 as cash at bank, but the pass book made up to the same date showed that cheques of Rs. 200, Rs. 150 and Rs. 175 respectively had not been presented for payments; and the cheque of Rs. 600 paid into account had not been cleared. The balance as per the pass book will be ______

Cost of physical inventory on 31.3.2012 is Rs. 2, 80,000 , out of which inventory of Rs. 1,20,000 is held as consignee.  Goods costing Rs. 25,000 were damaged beyond repair and were expected to realize Rs. 5,000 only. The value of own inventory on 31.3.2012 will be  ______

A lease is purchased on 1^st January, 2012 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 ______

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 31.3.2012. The amount of interest outstanding in the final accounts will be  ______

Bank overdraft as per trial balance is Rs. 1,60,000. Bank has allowed the customer to overdrew 80% of the hypothecated value of the inventory. Hypothecation of inventory has been done by the bank at 80% of the original closing inventory value. The amount of closing inventory is:

Net profit before commission has been Rs. 1,20,000. Manager’s commission is 20% of net profit before charging such commission. The amount of manager’s commission is

Out of four floors of a building, ground floor is used as a store house for trading goods, first and second floor is used for office purpose and third floor is used for residential purposes. Total depreciation of a building amounts to Rs. 80,000. The depreciation of building to be shown in the business books will be  ______

Closing inventory was not taken on 31.3.2012 but only on 7.4.2012. Following transactions had taken place during the period from 1.4.2012 to 7.4.2012. Sales Rs. 2,50,000, purchases Rs. 1,50,000, inventory on 7.4.2012 was Rs. 1,80,000 and the rate of gross profit on sales was 20%. Closing inventory on 31.3.2012 will be  ______

Ravi Ltd. issued 1,40,00,000, 9% debentures of Rs.100 each at a discount of 6%, redeemable at a premium of 5% after 3 years payable as Rs.50 on application and Rs.44 on allotment.Total amount of loss on issue of debentures will be

Kena Ltd. issued 10,000 12% Debentures of Rs.100 each at a discount of 10% payable in full on application by 31^st March, 2012. Applications were received for 12,000 debentures.Debentures were allotted on 9^th June, 2012. The amount of excess money refunded on the same date will be  ______

Ankush Ltd. had issued 10,000, 10% Redeemable Preference Shares of Rs. 100 each, fully paid up. The company decided to redeem these preference shares at par, by issue of sufficient number of equity shares of Rs. 10 each at a premium of Rs.2 per share as fully paid up. The amount to be transferred to capital redemption reserve account will be  ______

Bill of Rs. 10,000 accepted by Rajesh was endorsed by Ritesh to Dinesh on account of final settlement of Rs.10,500. The benefit of Rs.500 earned by Ritesh was:

A company on non-receipt of First Call money of Rs. 2 per share and Final Call money of Rs. 3 per share from Rahul, debited Call-in-Arrears account by Rs. 2,000 and Rs. 3,000 respectively. After due notice 1,000 shares of Rs.10 each were forfeited from Rahul. The amount to be credited to First Call Account at the time of entry for forfeiture will be

1,000 shares of Rs. 100 each were issued to a promoter of the company for their legal services, rendered in the formation of the company. For this, company credited Share Capital Account and debited

Which of the following is correct :

As per the Indian Contract Act, 1872 every person is competent to contract provided he:

Necessary condition for existing goods is

The action of goods being physically delivered to the buyer is known as:

A tells his wife that he would commit suicide, if she did not transfer her personal assets to him. She does so under his threat.

In case of a hire – purchase the hirer

Which of the following are the characteristics of a contingent contract:

Partnership is created by:

A sold some land to B. At the time of sale both the parties believed to be in good faith that the area of the land sold was 10 hectares. It however, turned out that the area was 7 hectares only. How is the contract of sale affected?

Which one of the following is a legal requirement regarding consideration:

Exceptions to the statement “No consideration no contract” are the following:

In case of a firm carrying on the business other than banking

Which of the following agreements are void:

Following conditions are implied in a contract of sale of goods unless the circumstances of the contract show a different intention:

The distinction between fraud and misrepresentation are the following:

The following are the essential elements which need to co-exist in order to make a valid contract:

The test of good faith as required under  the Partnership Act incudes the following:

Delivery which is effected without any change in the custody or actual possession of the thing is known as:

The essential elements of a partnership at will are:

True test of partnership is ______________.

Where a person asserts something which is not true, though he believes it to be true, his assertion amounts to ___________.

___________  does not exist.

The communication of an acceptance is complete as against the acceptor, __________.

Total s ubstitution of new contract in place of the old contract takes place in case of ___________.

A bonafide agreement between pers ons not to bid against each other at an auction sale.

In which of the following cases the partnership relationship does not exist:

A intending to deceive B falsely represents that 750 tons of sugar is produced per annum at the factory of A and hereby induces B to buy the factory. The contract is avoidable at the option of __________.

A and B, co-owners, agree to conduct the business in common for profits.

A contract to do or not to do something if some event, collateral to such contract does or does not happen is __________.

A contracts to pay B Rs. 5,00,000/- if B’s house is destroyed by fire. It is __________.

All Contracts which are not made under seal are __________ contracts.

The latin maxim “Nemo dat quod non habet” means __________.

Rules regarding delivery of goods are given in the __________ .

Right of lien is to __________.

Non - Registration of a partnership firm__________.

A person who finds goods belonging to another and takes them into his custody __________.

Quasi – contracts arise __________.

Discharge by mutual agreement may involve__________.

A & B are partners in a partnership firm. A introduced C, a former partner, as his partner to D. C remained silent at that moment, but later on informed D that he is actually a former partner of the firm. C had also issued public notice in the year of his retirement from the partnership firm. D, a trader supplied 500 refrigerators to the firm on credit. The credit period expired and D did not get the price of his supplies. D filed a suit against A & C for the recovery of price. In light of the above circumstances answer which of the following is correct:

H contracted with NIC Corporation for the erection of a number of houses. In calculating his price for the houses, H by mistake deducted a particular sum twice over. The corporation affixed its seal to the contract, which correctly represented its intention.

An increase in the demand can result from:

In the short run if a perfectly competitive firm finds itself operating at a loss, it will:

A competitive firm maximizes profit at the output level where:

Which of the following is correct?

A necessity is defined as a good having:

In the long run any firm will eventually leave the industry if:

If a firm’s average variable cost curve is rising, its marginal cost curve must be:

You are given the following data:

The above data is an example of:

Which of the following is incorrect?

When a market is in equilibrium:

Which among the following is incorrect?

Reserve Bank of India is India’s:

In infrastructure of an economy we include:

Find the odd one out:

Indian economy is mixed economy because:

What is the contribution of agriculture to National income in India (2013-14) Constant Price?

In a ________ budget revenue equals expenditure.

Indian population registered a growth of 1.25% per annum during the decade ________.

India’s population recorded the maximum growth rate of 2.22 % per annum during the decade ________.

Suppose India’s GNP increased at an annual average rate of 6.6% during the Tenth plan, presuming that the growth rate of population is 2 per cent per annum; per capita income would increase at an annual average rate of________.

About ________ area is rain fed in India.

Fiat money is some thing which ________

________ FDI is allowed in private banking in India.

MS ME sector contributes nearly __ ___ __ of the total exports in India.

Services account for around ________ of total export of India.

Product method of calculating national income is also known as ________.

NDP is GDP minus ________.

In 2012-13, direct taxes were around ________ % of GNP.

Abolition of intermediaries and tenancy reforms are both parts of ________.

A sick industrial unit in India is one ________.

BPO stands for ________.

India accommodates about________ percent of the world’s population.

Questions  133 to 135 are based on  Figure 1 which shows production possibilities curve (PPC) for grape juice and wine.

The opportunity cost of increasing wine production from D to E is:

Assuming that the PPC does not shift, which of the following is true? 

The PPC in the diagram reflects:

Read the following paragraph and answer questions 136 and 137.

John is Jacqueline’s father. Both of them are unemployed. Jacqueline, a brilliant new Ph.D in Economics, has turned down many job offers because she hopes eventually to teach at one of the top ten universities in her field. John lost his job as a shipbuilder during the recession of 1991. His plant never reopened and he has very specialized skills that are no longer in demand.

Q. 

The type of unemployment Jacqueline is experiencing is 

John is Jacqueline’s father. Both of them are unemployed. Jacqueline, a brilliant new Ph.D in Economics, has turned down many job offers because she hopes eventually to teach at one of the top ten universities in her field. John lost his job as a shipbuilder during the recession of 1991. His plant never reopened and he has very specialized skills that are no longer in demand.

Q. 

The type of unemployment John is experiencing is

In the table below what will be equilibrium market price?

Read Table 3 and answer questions 139-143

At a labour input of 2, output is:

At a labour input of 4, output per worker is:

At a labour input of 6, the marginal product of labour is:

Output per worker is maximized at a labour input of:

The firm’s output is at a short run maximum at a labour input of :

Read Table 4 and answer questions 144-150

Table 4 provides cost and price information for a firm called Comfy Cushions (CC). The firm produces and sells cushions using a fixed amount of capital equipment but can change the level of inputs such as labour and materials.

Q. 

What is the value of fixed cost incurred by CC? 

Table 4 provides cost and price information for a firm called Comfy Cushions (CC). The firm produces and sells cushions using a fixed amount of capital equipment but can change the level of inputs such as labour and materials.

Q. 

What is the average total cost when 5 units are produced?

Table 4 provides cost and price information for a firm called Comfy Cushions (CC). The firm produces and sells cushions using a fixed amount of capital equipment but can change the level of inputs such as labour and materials.

Q. 

What is the marginal revenue (per unit) when production increases from 7 units to 8 units?

Table 4 provides cost and price information for a firm called Comfy Cushions (CC). The firm produces and sells cushions using a fixed amount of capital equipment but can change the level of inputs such as labour and materials.

Q. 

What is the marginal cost when production increases from 3 to 4 units? 

Table 4 provides cost and price information for a firm called Comfy Cushions (CC). The firm produces and sells cushions using a fixed amount of capital equipment but can change the level of inputs such as labour and materials.

Q. 

To maximize its profit or minimize its loss, what level of production should CC choose?

Table 4 provides cost and price information for a firm called Comfy Cushions (CC). The firm produces and sells cushions using a fixed amount of capital equipment but can change the level of inputs such as labour and materials.

Q. 

At the profit maximizing level, what price should be charged? 

Table 4 provides cost and price information for a firm called Comfy Cushions (CC). The firm produces and sells cushions using a fixed amount of capital equipment but can change the level of inputs such as labour and materials.

Q. 

Calculate CC’s maximum profit or minimum loss. 

If q: p is the sub duplicate ratio of q – x²: p – x², then x² is

If p: q = r: s, implies q: p = s: r, then the process is called

The gender of a baby is example of :

The coefficient of correlation

If two events A and B are dependent, the conditional probability of B given A i.e.,
P(B/A) is calculated as

Time reversal test is satisfied when

The mean of binomial distribution is 

Standard deviation of poisson distribution is

If A has 70 elements, B has 32 elements and A ∩ B has 22 elements then A U B is

Which of the following statements is not false?

The value of the integral will be _______ for 

The derivative of log x.e^x is _______.

The null set is given by _______.

Quartiles are values dividing a given set of observations into _______ equal parts.