CA - CPT ICAI Model Test Paper - 8

Errors of commission do not permit

All of the following have debit balance except

The term depletion is used for

A bill of exchange when drawn requires

According to the provisions of the Reserve Bank of India, a promissory note cannot be made payable to the

Rs.5,000 spent to remove a worn out part and replace it with a new one is

Outstanding salary account is

Drawings are deducted from ________

The trial balance of Meghna shows the opening inventory of Rs. 10,000 which will be_____

Purchase returns appearing in the trial balance are deducted from ____

_______ will generally show a debit balance

Purchase of a fixed asset on credit basis is recorded in _____________

Accounting means recording of _________________

Unless given otherwise, the ratio of sacrifice is the same as________

The ratio in which the continuing partners acquire the outgoing (retired or deceased) partner’s share is called ________

A bill of exchange is called a ________ by one who is liable to pay it on the maturity date.

The amount of calls in arrear is deducted from_____________ to arrive at________.

Smita places an order to Priya for supply of certain goods yet to be manufactured. On receipt of order, Priya purchases raw materials, employs workers, produces the goods and delivers them to Smita. In this case, sale will be presumed to have been made at the time of

If a machinery is purchased for Rs. 1,00,000, the asset would be recorded in the books at Rs. 1,00,000 even if its market value at that time happens to be Rs. 1,40,000. In case, a year after, the market value of this asset comes down to Rs. 90,000, it will ordinarily continue to be shown at Rs. 1,00,000 and not at Rs. 90,000 due to

Mr. Shyam deposited a cheque on 28^th March, 2012 for a sum of Rs.10,000.  The cheque was collected on 4^th April, 2012.  If the bank balance as per cash book on 31^st March, 2012 is Rs.1,00,000, balance as per pass book will be

If cost of goods sold is Rs.1,00,000, sales is Rs.1,25,000, closing inventory is Rs.20,000, the gross profit will be

X enters into a joint venture with Y.  The goods were purchased by X and Y amounting Rs.20,000 and Rs.40,000 respectively.  Y incurred the expenses of Rs.5,000.  Goods were sold by X and Y amounting Rs.22,000 and Rs.39,000.  Goods unsold were taken over by Y for Rs.2,000.  The profit or loss on joint venture is

On 1^st January, 2012, Mohan draws upon Sohan a bill of exchange for three months, of Rs.2,000 for mutual accommodation. On 4^th January, 2012 Mohan discounts the bill @ 6% per annum and sends half of the proceeds to Sohan. The amount of proceeds sent to Sohan will be

ABC Ltd. sells goods to its approved customers on sale or return basis at a profit of 20% on sales, treating as actual sales. On 26^th March, 2012 goods costing Rs.10,000 were sent to Annu Ltd. No confirmation has been received from Annu Ltd. till 31^st March, 2012.The amount of inventory with customers to be shown as closing inventory in the balance sheet of ABC Ltd. as on 31^st March, 2012 will be

Somesh and Ramesh are equal partners. Their capitals are Rs.40,000 and Rs.80,000 respectively. The profits for the year before charging interest on capital was Rs.6,000.  The accounts of the year were closed before providing interest @ 5% per annum as per partnership agreement. To rectify this mistake they decided to pass an adjustment entry between the partners. Therefore, Somesh’s account needs to be debited by

A, B and C are partners in the ratio of 3:2:1. D is admitted in the firm for 1/6^th share in profits. C would retain his original share. The new profit sharing ratio between A, B, C and D will be

According to which concept, the owner of an enterprise pays the ‘interest on drawings’?

A firm earns profit of Rs.1,10,000. The normal rate of return in a similar type of business is 10%. The value of total assets (excluding goodwill) and total outside liabilities are Rs.11,00,000 and Rs.1,00,000 respectively. The value of goodwill by capitalisation method is

The cost of inve nt or y as per physical verification of Bharat Ltd. on 10^th April, 2012 was Rs. 1,20,000.  The following transactions took place between 1^st April, 2012 to 10^th April, 2012:

Cost of goods sold                               Rs. 10, 000
Cost of goods purchased                     Rs. 10,000
Purchase returns                                  Rs. 1,000

The value of inventory as per books on 31^st March, 2012 will be

The following data has been provided by Omega Ltd.:

The value of inventory on item by item basis will be

Sushila’s business disclosed the following profits for the last two years:
2010                 Rs.40,000 (including an abnormal gain of Rs.5,000)
2011                 Rs.50,000 (After charging an abnormal loss of Rs.10,000)

The value of goodwill on the basis of one year purchase of the average profit of last two years is

Ram sells goods for Rs.1,00,000 to Hari on 1^st January, 2012 and on the same day draws a bill on Hari at three months for the amount. Hari accepts it and returns it to Ram, who discounts it on 4^th January, 2012 with his bank at 12% per annum. The discounting charges are

Nidhi started her business with capital of Rs.45,000 on 1^st January, 2011. Interest on drawings Rs.5,000 and interest on capital Rs.2,000 were appearing in the Profit and Loss A/c for the year ended 31^st December, 2011. Nidhi withdrew Rs.14,000 during the year and profit earned during the year amounted to Rs.15,000.  Her capital on 31st December, 2011 is

The accountant of M/s ABC & Bros. paid personal income tax for the proprietor amounting Rs.10,000. This income tax should be

Suresh’s Trial balance provides you the following information:

Bad debts                                          Rs. 10, 000
Provision for doubtful debts               Rs. 15 , 000

Suresh wants to make a provision of Rs.20,000 at the end of the year. The amount debited to the Profit & Loss Account is

Following are the extracts from the Trial Balance of a firm as at 31^st March, 2012:

Provide for employer’s share of P.F. equivalent to employee’s share to P.F. The amount at which salaries expense will be shown in the Profit and Loss A/c is

Dinesh Garments purchased a machine for Rs.50,000 and spent Rs.6,000 on its erection. On the date of purchase it was estimated that the effective life of the machine will be ten years and after ten years its scrap value will be Rs.6,000. The amount of depreciation for each year on straight line basis is

Xeta Ltd. was formed as a Public Limited Company with an authorized capital of Rs.20,00,000 divided into shares of Rs.10 each. Xeta Ltd. issued fully paid up shares of Rs.10 each at a premium of 20%, in consideration for acquiring assets worth Rs.3,64,800 from M/s Rahim Bros. To record this transaction, share capital need to be credited by

Mr. Rajiv was the holder of 200 shares of Rs.10 each in RPG Ltd. upon which Rs.5 per share had been called up but he had paid only Rs.2.5 per share thereon. The company forfeited his shares and afterwards sold them to Satbir, credited as Rs.5 per share paid for Rs.900.The amount to be transferred to capital reserve is

A Ltd. forfeited 1,000 equity shares of Rs.10 each, issued at par, for non-payment of first call of Rs.2 and second call of Rs.3 per share. For recording this forfeiture, calls in arrear account will be credited by

A fire broke out on 30^th March, 2012 in the godown of Mahesh. Inventory of invoice value Rs.1,600 was destroyed. The goods were invoiced at 25% above cost. The insurance company admitted claim of 50% only. The insurance claim accepted was

Salary has been paid for 11 months from April 2011 to February, 2012 amounting Rs.22,000.The amount of outstanding salary shown in the balance sheet will be

On 1^st April, 2011, Raghu invested capital of Rs.2,00,000. He withdrew Rs.50,000 during the year. Interest on drawings is provided @ 10% per annum. The amount of interest on drawings deducted from capital is

The Bank Account of Mukesh was balanced on 31st March, 2012. It showed an overdraft of Rs.50,000. It was observed that one cheque amounting Rs.20,000 deposited but not collected by bank till 31st March. Bank charges of Rs.500 were also charged by the bank during March but accounted in the book of Mukesh on April 4, 2012. The bank statement of Mukesh shows balance of

Rs.5,000 was spent by Saroj for addition to machinery in order to increase the production capacity. The amount is

Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 during the year. However, he sold damaged goods for Rs.20,000 costing Rs.30,000. This sale is included in Rs.10,20,000.The amount of gross profit is

The total of the debit and credit side of a trial balance of Mr. Rajiv as on 31^st March, 2012 were Rs.20,000 and Rs.10,000 respectively. The difference was transferred to suspense account. On 4^th April, 2012, it was found that the total of purchase returns book was carry forward as Rs.1,500 instead of Rs.1,400. The balance of the suspense account after the rectification of this error will be

Capital introduced by Mr. A on 1.4.2011 Rs. 3,00,000; further capital introduced during the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 per month and the profit earned during the year was Rs. 20,000. Capital as on 31.3.2012 will be

Goods costing Rs.10,000 sent out to consignee at Cost + 25% . Invoice value of the goods will be

A, B and C are the partners sharing profits in the ratio 1:1:2. C died on 30^th June 2012 and profits for the accounting year ended on 31^st December, 2011 were Rs. 24,000. How much share in profits for the period 1^st January, 2012 to 30^th June, 2012 will be credited to C’s Account?

A 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 a result of this transaction

Rekha purchased a machinery for Rs. 50,000 on 1.4.2011. She paid electricity charges and salary amounting Rs. 1,000 and Rs. 2,000 respectively. Telephone bill amounting Rs. 200 was outstanding on 31.3.2012. The amount of expenses for the year ended 31^st March, 2012 will be

Goods costing Rs. 10,000 is supplied to Ram at an invoice price of 10% above cost and a trade discount of 5%. The amount of sales is

Gauri paid Rs. 1,000 towards a debt of Rs. 1,050, which was written off as bad debt in the previous year. Gauri’s account should be credited with

Ramesh, an employee gets salary Rs. 10,000 per month. He withdrew goods worth Rs. 1,500 for personal use and got salary of Rs. 9,000 in cash in the month of March, 2012. The excess payment of Rs. 500 should be debited to

An old furniture was purchased for Rs. 10,000, it was repaired for Rs. 100.  The repairs account should be debited by

Rs.1,000 paid as rent to Krishna, the landlord, was debited to Krishna’s personal  account. This error will

A wager means:

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

Jus in personam means:

Which of the following is not correct:

Persons who do not fall under the category of persons of unsound mind

Delivery of goods in case of transit made by handing over documents of title to goods is

Contracts may be classified on the basis of their validity, formation o r performance.Contracts classified on the basis of performance are of the following types:

A partnership started for a particular adventure/undertaking:

A subsequent sale made by the original buyer of the goods to a third party:

Coercion involves :

Implied authority of the partner does not empower him to

A proposal may be revoked in the following ways:

Which of the following is correct?

Which of the following statement is / are correct?

A fraudulently informs B that A’s estate is free from incumbrance. B thereupon buys the estate. The estate is subject to mortgage. Now

Dissolution of a firm may take place in the following manner:

Dissolution by agreement is:

Misrepresentation means and includes:

A person may be admitted as a new partner:

The Doctrine of Privity of Contract states that___________.

A proposes by letter, to sell a house to B at a certain price. A revokes his proposal by telegram.The revocation is complete as against B when ___________.

The Indian Contract Act, 1872 came into operation on and from___________.

A person who has ceased to pay his debts in the ordinary course of business

In case of a sale the risk of loss resulting from the insolvency of the buyer is borne by___________.

Agreement to sale is an ___________.

Suit for specific performance and suit for injunction ___________.

Contracting parties may not remain same in ___________.

The liabilities of a minor when admitted to the benefits of the partnership ___________.

Recis s ion means ___________.

Registration of a partnership firm is___________.

Damag es awarded with the intention o f punis hing the defaulting party rather than compensating the aggrieved party:

Delivery by attornment is ___________.

In case of an agreement to sell, the aggrieved party ___________.

of goods is possible in case of __________.

‘Buyer’ means a person who___________.

The appropriation must be made by___________.

Partner by holding out is also known as ___________.

Interest on capital subscribed by a partner may be provided for in the partnership deed is ___________.

A had offered B, a price of Rs.10, 00,000/- for B’s flat. But B was not ready to sell the flat at all. A says to B that “I shall kill you if you don’t agree to sell me your house for Rs.10,00,000/-”.  B thereafter did all that was the desire of A in order to save his life.What is immediate answer?

Every wagering agreement is of a ___________ nature.

Which of the following statements is correct?

Which of the following is incorrect?

Which of the following situation does not lead to an increase in equilibrium price?

“I am making a loss, but with the rent I have to pay, I can’t afford to shut down at this point of time.” If this entrepreneur is attempting to maximize profits or minimize losses, his behaviour in the short run is:

An individual firm in a perfectly competitive market faces a demand curve which is:

A firm’s production function:

The law of diminishing returns:

Which of the following is correct?

You are given the following data: 

The above data is an example of:

Monopolies are allocatively inefficient because:

Which of the following statements is correct?

When unemployment tends to be a long term feature of a country, it is called

The effect of increase CRR will be reduced or nullified if:

India can reap the benefit of Demographic dividend, as a great percentage of population is in the age group_____.

What percent of the sick units in India are big units?

Which among the following is an indirect tax?

At the time of Independence and a number of years thereafter cotton textiles, jute and tea accounted for more than __________% of our export earnings.

According to the latest available data, the bed-population ratio in India is __________  per thousand population.

According to the latest UNDP report, 2012 India’s relative global rating on HDI index is __________ among 187 countries.

A Gini Index of zero represents:

Over a period of time, since GINI index has increased, it means:

As compared to the targeted growth rate of 10% per annum in industrial production, the actual growth rate was __________ % per annum during the Tenth Plan.

The value added by the industrial sector in the GDP 2013-14 (constant price) is _________.

The MSME sector in India employs nearly __________ million people in 2011-12.

GDP at factor cost is equal to GDP at market price minus indirect taxes plus __________.

Net domestic expenditure is consumption expenditure plus __________.

Custom duties are levied on __________.

Demand for final consumption arises in __________.

The share of direct taxes in the gross tax revenue (Centre and States combined) was __________ % in 2012-12

According to census 2011 the sex ratio (number of females per 1,000 males) in India is __________.

If as a result of 20 percent fall in the ticket fares the demand for ‘watching movie’ in the cinema hall increases by 10 percent, then __________.

If out of 1000 population, 500 persons are in the labour force, 450 are employed, what is the unemployment rate?

Questions 133 to 137 are based on 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.

If Figure 1 represents the market for Mars Bars, the initial equilibrium is at the intersection of S₁ and D₁. The new equilibrium if there is an increase in cocoa prices will be:

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. 

In Figure 1 (which represents the market for Mars Bars), the initial equilibrium is at the intersection of S₁ and D₁. The new equilibrium if there is rapid economic growth and the government also imposes a tax on Mars Bars is

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. 

In Figure 1 (which represents the market for Mars Bars), the initial equilibrium is at the intersection of S₁ and D₁. The new equilibrium if there is a health scare about the effect Mars Bars may have is:

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. 

In Figure 1 (which represents the market for Mars Bars), the initial equilibrium is at the intersection of S₁ and D_1. Assuming that mars bars are an inferior good, the new equilibrium if there is a recession and wages of workers producing them fall is:

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. 

In Figure 1(which represents the market for Mars Bars), the initial equilibrium is at the intersection of S₁ and D₁. Assume that the income of the consumers rises and at the same time there is an increase in the productivity in the production of Mars Bars. The new equilibrium will be:

A book seller estimates that if she increases the price of a book from Rs.60 to Rs.67, the quantity of books demanded will decrease from 2,035 to 1,946. The book’s price elasticity of demand is approximately

Concerned about the poor state of the economy, a car dealer estimates that if income decreases by 4 per cent, car sales will fall from 352 to 335.  Consequently, the income elasticity of demand for cars is approximately

Use Table 2 to answer questions 140-144.

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 200 per unit. Its fixed cost is Rs. 600 and its variable costs (in rupees) for different levels of production are shown in the following table.

Q. 

When production is 40 units, the average total cost is

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 200 per unit. Its fixed cost is Rs. 600 and its variable costs (in rupees) for different levels of production are shown in the following table.

Q. 

In the table marginal cost per unit that corresponds to 40 units of production is

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 200 per unit. Its fixed cost is Rs. 600 and its variable costs (in rupees) for different levels of production are shown in the following table.

Q. 

To maximize profit, the firm should produce

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 200 per unit. Its fixed cost is Rs. 600 and its variable costs (in rupees) for different levels of production are shown in the following table.

Q. 

If the market price drops from Rs. 200 to Rs. 112, the firm’s short run response should be 

A competitive firm sells as much as of its product as it chooses at a market price of Rs. 200 per unit. Its fixed cost is Rs. 600 and its variable costs (in rupees) for different levels of production are shown in the following table.

Q. 

If the market price rises from Rs. 200 to Rs. 352, the firm’s short run response should be

Suppose a shopkeeper buys inputs worth Rs. 2, 00, 000 and his sales are worth Rs. 4,00,000 in a month. The input tax rate is 4% and output tax rate is 10%. What is Value added tax here after set off of input tax credit?

If the quantity of blankets demanded increases from 4600 to 5700 in response to a decrease in their price from Rs. 220 to Rs. 190, the price elasticity of demand for blankets is

The cross elasticity of monthly demand for gel pen when the price of refills increases by 20% and demand for gel pens falls by 30% is equal to:

The cross elasticity of monthly demand for ink pen when the price of gel pen increases by 25% and demand for ink pen increases by 50% is equal to:

Read the following table and answer question number 149 -150.

Q.

What is marginal utility when consumption increases from 4 units to 5 units?

Q. 

What is marginal utility when consumption increases from 8 units to 9 units?

This method presents data with the help of a paragraph or a number of paragraphs.

If two events A and B are independent, the probability that they will both occur is given by

The normal curve is

If x denotes height of a group of students expressed in cm. and y denotes their weight expressed in kg. , then the correlation coefficient between height and weight

The base of log₆13 into the common logarithmic base is

Data collected on minority from the census reports are

The nationality of a person is an example of

The total sum of the values of a given year divided by the sum of the values of the base year is a

Find the first derivative of y = log_e x

Fisher’s ideal index is

_________  is the upper part of the table, describing the columns and sub columns.

The correlation between sale of cold drinks and day temperature is _________.

In case of a _________, plotted points on a scatter diagram lie from lower left corner to upper right corner.