Chapter 2 : Consumer Equilibrium - Class Notes, Microecnomics, Class 12, CBSE Class 12 Notes | EduRev

Class 12 : Chapter 2 : Consumer Equilibrium - Class Notes, Microecnomics, Class 12, CBSE Class 12 Notes | EduRev

 Page 1


 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________1 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
JUNE 2016, CA-CPT QUESTION PAPER (BASED ON MEMORY) 
 
MASTER MINDS IS THE BIGGEST CA COACHING INSTITUTION IN SOUTH INDIA  
WITH MORE THAN 16,000 ADMISSIONS. 
FOR VIDEO PRESENTATION ON ‘COMPLETE DETAILS ABOUT IPCC COACHING IN 
MASTER MINDS’ VISIT THE WEBSITE WWW.MASTERMINDSINDIA.COM.   
 
FOR IPCC ADMISSIONS CALL: 98851 25025/26 
 
Disclaimer: We have compiled this Question paper, based on the memory 
of students who have appeared for CPT exam.  Questions asked in the 
examination may have wrong/inadequate information and/or ambiguous 
language. In that case the answers provided by the institute may differ 
from these ideal answers. MASTER MINDS IS NOT RESPONSIBLE FOR ANY 
MISTAKES IN THIS QUESTION PAPER. Every effort has been taken to give 
best answers. Still if you find some errors please bring them to our notice 
through e-mail.  
 
Visit us @ www.mastermindsindia.com Mail: mssprakash2012@gmail.com 
Facebook Page: Masterminds For CA Youtube Channel: Masterminds For CA  
 
Also send your feedback to this mail id.
Download From http://caknowledge.in
Page 2


 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________1 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
JUNE 2016, CA-CPT QUESTION PAPER (BASED ON MEMORY) 
 
MASTER MINDS IS THE BIGGEST CA COACHING INSTITUTION IN SOUTH INDIA  
WITH MORE THAN 16,000 ADMISSIONS. 
FOR VIDEO PRESENTATION ON ‘COMPLETE DETAILS ABOUT IPCC COACHING IN 
MASTER MINDS’ VISIT THE WEBSITE WWW.MASTERMINDSINDIA.COM.   
 
FOR IPCC ADMISSIONS CALL: 98851 25025/26 
 
Disclaimer: We have compiled this Question paper, based on the memory 
of students who have appeared for CPT exam.  Questions asked in the 
examination may have wrong/inadequate information and/or ambiguous 
language. In that case the answers provided by the institute may differ 
from these ideal answers. MASTER MINDS IS NOT RESPONSIBLE FOR ANY 
MISTAKES IN THIS QUESTION PAPER. Every effort has been taken to give 
best answers. Still if you find some errors please bring them to our notice 
through e-mail.  
 
Visit us @ www.mastermindsindia.com Mail: mssprakash2012@gmail.com 
Facebook Page: Masterminds For CA Youtube Channel: Masterminds For CA  
 
Also send your feedback to this mail id.
Download From http://caknowledge.in
 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________2 
Ph: 9885125025/26                                                www.mastermindsindia.com            
 
 
CA - CPT – JUNE 2016 QUESTION PAPER (BASED ON MEMORY) 
 
1
st
 Session     Marks: 100 Marks      Time: 2 hrs. 
 
PART A – FUNDAMENTALS OF ACCOUNTING 
 
1. A bill drawn and accepted for mutual help is 
known as ____ bill  
a) Accommodation    b) Trade 
c) Ordinary     d) Retired 
 
2. Financial position of a business concern is 
ascertained on the basis of _____  
a) Records prepared under book – keeping 
process  
b) Trial balance 
c) Accounting Reports  d) None 
 
3. BRS is a part of _____ 
a) Financial Statements  b) Bank Book 
c) Cash Book    d) None 
 
4. Inventory is valued either at cost or market 
price whichever is lower, according to the 
principle of ____ 
a) Conservatism    b) Matching 
c) Accrual     d) None 
 
5. Debentures can be _________.    
I. Mortgage Debentures or Simple 
Debentures 
II. Registered Debentures or Bearer 
Debentures. 
III. Redeemable Debentures or Irredeemable 
Debentures. 
IV. Convertible Debentures or Non-convertible 
Debentures. 
 a) Both I) and II) above  
 b) Both I) and III) above 
 c) Both II) and III) above  
 d) All of I), II), III) and IV) above. 
 
6. Total assets    =  Rs. 3,06,000  
Secured loans    =  Rs. 1,00,000 
Unsecured loans    =  Rs. 60,000 
Contingent Liabilities  =  Rs. 1,46,000 
Capital      =  ? 
a) Rs. 1,00,000   b) Rs. 1,46,000  
c) Rs. 60,000   d) Nil 
7. Insurance claim received on machinery 
destroyed by fire is a ____ 
a) Capital receipt    b) Revenue receipt 
c) Capital expenditure    
d) Revenue Expenditure 
 
8. Opening inventory =  Rs. 4,00,000  
Cash sales    =  Rs. 2,00,000 
Total sales    =  Rs. 17,00,000 
Selling price    =    125% of purchase price 
What is the cost of goods sold? 
a) Rs. 15,60,000   b) Rs. 13,60,000  
c) Rs. 15,00,000   d) Rs. 11,00,000 
 
9. In Journal & ledger transactions are recorded 
in ______ order respectively 
a) Analytical    b) Chronological 
c) Chronological & Analytical      
d) Analytical & Chronological  
 
10. According to SEBI guidelines, the minimum 
share application money is ____ 
a) 2.5% of nominal value of share    
b) 2.5% of issue price of share  
c) 25% of nominal value of share   
 d) 25% of issue price of share  
 
11. A decrease in the provision for doubtful debts 
would result in _____  
a) Increase in liability   b) Decrease in liability 
c) Decrease in net profit 
d) Increase in net profit 
 
12. On 05-01-16, Mr. A draws a bill on Mr. B for 30 
days after sight. The bill was accepted on 08-
01-16. Then the date of maturity of the bill will 
be ____  
a) 08-02-16     b) 09-02-16  
c) 10-02-16    d) 11-02-16 
 
13. Purchases  = Rs. 25,00,000 
70% of the goods are sold 
Closing inventory is valued at Rs. 5,00,000 
instead of at Rs. 7,50,000.  
Which concept has been followed? 
a) Conservatism    b) Cost  
c) Accrual    d) Matching  
Download From http://caknowledge.in
Page 3


 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________1 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
JUNE 2016, CA-CPT QUESTION PAPER (BASED ON MEMORY) 
 
MASTER MINDS IS THE BIGGEST CA COACHING INSTITUTION IN SOUTH INDIA  
WITH MORE THAN 16,000 ADMISSIONS. 
FOR VIDEO PRESENTATION ON ‘COMPLETE DETAILS ABOUT IPCC COACHING IN 
MASTER MINDS’ VISIT THE WEBSITE WWW.MASTERMINDSINDIA.COM.   
 
FOR IPCC ADMISSIONS CALL: 98851 25025/26 
 
Disclaimer: We have compiled this Question paper, based on the memory 
of students who have appeared for CPT exam.  Questions asked in the 
examination may have wrong/inadequate information and/or ambiguous 
language. In that case the answers provided by the institute may differ 
from these ideal answers. MASTER MINDS IS NOT RESPONSIBLE FOR ANY 
MISTAKES IN THIS QUESTION PAPER. Every effort has been taken to give 
best answers. Still if you find some errors please bring them to our notice 
through e-mail.  
 
Visit us @ www.mastermindsindia.com Mail: mssprakash2012@gmail.com 
Facebook Page: Masterminds For CA Youtube Channel: Masterminds For CA  
 
Also send your feedback to this mail id.
Download From http://caknowledge.in
 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________2 
Ph: 9885125025/26                                                www.mastermindsindia.com            
 
 
CA - CPT – JUNE 2016 QUESTION PAPER (BASED ON MEMORY) 
 
1
st
 Session     Marks: 100 Marks      Time: 2 hrs. 
 
PART A – FUNDAMENTALS OF ACCOUNTING 
 
1. A bill drawn and accepted for mutual help is 
known as ____ bill  
a) Accommodation    b) Trade 
c) Ordinary     d) Retired 
 
2. Financial position of a business concern is 
ascertained on the basis of _____  
a) Records prepared under book – keeping 
process  
b) Trial balance 
c) Accounting Reports  d) None 
 
3. BRS is a part of _____ 
a) Financial Statements  b) Bank Book 
c) Cash Book    d) None 
 
4. Inventory is valued either at cost or market 
price whichever is lower, according to the 
principle of ____ 
a) Conservatism    b) Matching 
c) Accrual     d) None 
 
5. Debentures can be _________.    
I. Mortgage Debentures or Simple 
Debentures 
II. Registered Debentures or Bearer 
Debentures. 
III. Redeemable Debentures or Irredeemable 
Debentures. 
IV. Convertible Debentures or Non-convertible 
Debentures. 
 a) Both I) and II) above  
 b) Both I) and III) above 
 c) Both II) and III) above  
 d) All of I), II), III) and IV) above. 
 
6. Total assets    =  Rs. 3,06,000  
Secured loans    =  Rs. 1,00,000 
Unsecured loans    =  Rs. 60,000 
Contingent Liabilities  =  Rs. 1,46,000 
Capital      =  ? 
a) Rs. 1,00,000   b) Rs. 1,46,000  
c) Rs. 60,000   d) Nil 
7. Insurance claim received on machinery 
destroyed by fire is a ____ 
a) Capital receipt    b) Revenue receipt 
c) Capital expenditure    
d) Revenue Expenditure 
 
8. Opening inventory =  Rs. 4,00,000  
Cash sales    =  Rs. 2,00,000 
Total sales    =  Rs. 17,00,000 
Selling price    =    125% of purchase price 
What is the cost of goods sold? 
a) Rs. 15,60,000   b) Rs. 13,60,000  
c) Rs. 15,00,000   d) Rs. 11,00,000 
 
9. In Journal & ledger transactions are recorded 
in ______ order respectively 
a) Analytical    b) Chronological 
c) Chronological & Analytical      
d) Analytical & Chronological  
 
10. According to SEBI guidelines, the minimum 
share application money is ____ 
a) 2.5% of nominal value of share    
b) 2.5% of issue price of share  
c) 25% of nominal value of share   
 d) 25% of issue price of share  
 
11. A decrease in the provision for doubtful debts 
would result in _____  
a) Increase in liability   b) Decrease in liability 
c) Decrease in net profit 
d) Increase in net profit 
 
12. On 05-01-16, Mr. A draws a bill on Mr. B for 30 
days after sight. The bill was accepted on 08-
01-16. Then the date of maturity of the bill will 
be ____  
a) 08-02-16     b) 09-02-16  
c) 10-02-16    d) 11-02-16 
 
13. Purchases  = Rs. 25,00,000 
70% of the goods are sold 
Closing inventory is valued at Rs. 5,00,000 
instead of at Rs. 7,50,000.  
Which concept has been followed? 
a) Conservatism    b) Cost  
c) Accrual    d) Matching  
Download From http://caknowledge.in
 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________3 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
14. When Del-credere commission is paid, bad 
debts will be debited to ____ A/c in the books 
of consignee 
a) Commission earned   b) Consignor  
c) Credit receivable  d) Consignment 
 
15. Credit balance of bank pass book will be ___ to 
the account holder. 
a) An asset     b) A liability 
c) A provision   d) None 
 
16. P & Q are partners in a firm sharing profits and 
losses in the ratio of 5 : 3. R is admitted as a 
new partner for 1/5
th
 share. Then the 
sacrificing ratio will be ____   
a) 4 : 6  b) 1 : 2  c) 5 : 3  d) 1 : 1 
 
17. A & B are partners in a firm with capitals of 
Rs.5,00,000 each. C joined as a new partner for 
1/4
th
 share in profits with a capital of 
Rs.8,00,000. The credit balance of Profit & Loss 
a/c is Rs.4,00,000. Find the value of hidden 
goodwill.  
a) 14,00,000     b) 10,00,000   
c) 18,00,000     d) 12,00,000    
 
18. The subscribed share capital of S Ltd. is              
Rs.80,00,000 divided into shares of Rs.100 each. 
There were no calls in arrears till the final call 
was made. The final call made was paid on 
77,500 shares. The calls in arrears amounted to 
Rs.67,500. The final call per share=?    
 a) Rs.27      b) Rs.20    c) Rs.25      d) Rs.62.50 
 
19. If repair cost is Rs.30,000, whitewash expenses 
are Rs.6,000, cost of extension of building is 
Rs.3,00,000 and cost of improvement in 
electrical wiring system is Rs.22,800; the 
amount to be expensed is   
a) Rs. 3,58,800.    b) Rs. 52,800.  
c) Rs. 36,000.    d) Rs. 3,30,000. 
 
20. Goods sent on consignment = Rs. 2,00,000 
Consignor’s expenses   = Rs. 5,000 
Consignee’s expenses   = Rs. 2,000 
Cash sales      = Rs. 1,00,000 
Credit sales     = Rs. 1,10,000 
Closing Inventory   = Rs. 40,000 
Ordinary Commission  = Rs. 3,000 
Del-credere commission  = Rs. 2,000 
Bad Debts     = Rs. 2,000 
Find the profit on consignment.    
a) Rs.38,000   b) Rs.36,000   
c) Rs.40,000   d) Rs.43,000 
21. Errors can be detected ____     
a) Before the preparation of Trial Balance  
b) After the preparation of Trial Balance, but 
before the preparation of final accounts     
c) After the preparation of Final accounts (next 
accounting year)  d) All of the above 
 
22. On March 31, 2015 after sale of goods worth 
Rs.50,000, he is left with the closing inventory 
of Rs.20,000. This is   
 a) An event     b) A transaction 
 c) A transaction as well as an event  
 d) Neither a transaction nor an event 
 
23. A plant was purchased on 01-04-2010 for          
Rs.3,50,000. The useful life was estimated to 
be 5 years and scrap value as Rs.50,000. 
Calculate the rate of depreciation under 
Straight line method. 
a) 17.14% b) 20%    c) 15%   d) 17.5% 
 
24. Opening inventory   = Rs. 23,200 
Cost of goods sold   = Rs. 3,22,800  
Closing inventory  = Rs. 24,000   
Purchases     =? 
a) Rs. 3,22,000   b) Rs. 2,99,600   
c) Rs. 2,98,800   d) Rs. 3,23,600  
 
25. Stock worth Rs. 50,000 was destroyed by fire. 
The claim was fully accepted by the insurance 
company. The journal entry is      
a) Stock A/c    Dr. 50,000 
  To Trading A/c    50,000   
b) P & L A/c    Dr. 50,000 
  To Trading A/c    50,000   
c) Trading A/c    Dr. 50,000 
  To Insurance claim A/c  50,000  
d) Insurance claim A/c  Dr. 50,000 
  To Trading A/c    50,000 
 
26. WYE ltd redeemed 1,000, 10% preference 
shares of Rs.100 each at a premium of Rs.10 
per share. The company had a balance of 
Rs.50,000 in general reserve and Rs.27,000 in 
Profit & Loss a/c. For the purpose of 
redemption the company issued 5,000 equity 
shares of Rs. 10 each at a premium of 20%. The  
amount to be transferred to Capital 
Redemption Reserve will be  
a) Rs. 50,000   b) Rs. 1,00,000   
c) Rs. 60,000   d) Rs. 77,000 
Download From http://caknowledge.in
Page 4


 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________1 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
JUNE 2016, CA-CPT QUESTION PAPER (BASED ON MEMORY) 
 
MASTER MINDS IS THE BIGGEST CA COACHING INSTITUTION IN SOUTH INDIA  
WITH MORE THAN 16,000 ADMISSIONS. 
FOR VIDEO PRESENTATION ON ‘COMPLETE DETAILS ABOUT IPCC COACHING IN 
MASTER MINDS’ VISIT THE WEBSITE WWW.MASTERMINDSINDIA.COM.   
 
FOR IPCC ADMISSIONS CALL: 98851 25025/26 
 
Disclaimer: We have compiled this Question paper, based on the memory 
of students who have appeared for CPT exam.  Questions asked in the 
examination may have wrong/inadequate information and/or ambiguous 
language. In that case the answers provided by the institute may differ 
from these ideal answers. MASTER MINDS IS NOT RESPONSIBLE FOR ANY 
MISTAKES IN THIS QUESTION PAPER. Every effort has been taken to give 
best answers. Still if you find some errors please bring them to our notice 
through e-mail.  
 
Visit us @ www.mastermindsindia.com Mail: mssprakash2012@gmail.com 
Facebook Page: Masterminds For CA Youtube Channel: Masterminds For CA  
 
Also send your feedback to this mail id.
Download From http://caknowledge.in
 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________2 
Ph: 9885125025/26                                                www.mastermindsindia.com            
 
 
CA - CPT – JUNE 2016 QUESTION PAPER (BASED ON MEMORY) 
 
1
st
 Session     Marks: 100 Marks      Time: 2 hrs. 
 
PART A – FUNDAMENTALS OF ACCOUNTING 
 
1. A bill drawn and accepted for mutual help is 
known as ____ bill  
a) Accommodation    b) Trade 
c) Ordinary     d) Retired 
 
2. Financial position of a business concern is 
ascertained on the basis of _____  
a) Records prepared under book – keeping 
process  
b) Trial balance 
c) Accounting Reports  d) None 
 
3. BRS is a part of _____ 
a) Financial Statements  b) Bank Book 
c) Cash Book    d) None 
 
4. Inventory is valued either at cost or market 
price whichever is lower, according to the 
principle of ____ 
a) Conservatism    b) Matching 
c) Accrual     d) None 
 
5. Debentures can be _________.    
I. Mortgage Debentures or Simple 
Debentures 
II. Registered Debentures or Bearer 
Debentures. 
III. Redeemable Debentures or Irredeemable 
Debentures. 
IV. Convertible Debentures or Non-convertible 
Debentures. 
 a) Both I) and II) above  
 b) Both I) and III) above 
 c) Both II) and III) above  
 d) All of I), II), III) and IV) above. 
 
6. Total assets    =  Rs. 3,06,000  
Secured loans    =  Rs. 1,00,000 
Unsecured loans    =  Rs. 60,000 
Contingent Liabilities  =  Rs. 1,46,000 
Capital      =  ? 
a) Rs. 1,00,000   b) Rs. 1,46,000  
c) Rs. 60,000   d) Nil 
7. Insurance claim received on machinery 
destroyed by fire is a ____ 
a) Capital receipt    b) Revenue receipt 
c) Capital expenditure    
d) Revenue Expenditure 
 
8. Opening inventory =  Rs. 4,00,000  
Cash sales    =  Rs. 2,00,000 
Total sales    =  Rs. 17,00,000 
Selling price    =    125% of purchase price 
What is the cost of goods sold? 
a) Rs. 15,60,000   b) Rs. 13,60,000  
c) Rs. 15,00,000   d) Rs. 11,00,000 
 
9. In Journal & ledger transactions are recorded 
in ______ order respectively 
a) Analytical    b) Chronological 
c) Chronological & Analytical      
d) Analytical & Chronological  
 
10. According to SEBI guidelines, the minimum 
share application money is ____ 
a) 2.5% of nominal value of share    
b) 2.5% of issue price of share  
c) 25% of nominal value of share   
 d) 25% of issue price of share  
 
11. A decrease in the provision for doubtful debts 
would result in _____  
a) Increase in liability   b) Decrease in liability 
c) Decrease in net profit 
d) Increase in net profit 
 
12. On 05-01-16, Mr. A draws a bill on Mr. B for 30 
days after sight. The bill was accepted on 08-
01-16. Then the date of maturity of the bill will 
be ____  
a) 08-02-16     b) 09-02-16  
c) 10-02-16    d) 11-02-16 
 
13. Purchases  = Rs. 25,00,000 
70% of the goods are sold 
Closing inventory is valued at Rs. 5,00,000 
instead of at Rs. 7,50,000.  
Which concept has been followed? 
a) Conservatism    b) Cost  
c) Accrual    d) Matching  
Download From http://caknowledge.in
 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________3 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
14. When Del-credere commission is paid, bad 
debts will be debited to ____ A/c in the books 
of consignee 
a) Commission earned   b) Consignor  
c) Credit receivable  d) Consignment 
 
15. Credit balance of bank pass book will be ___ to 
the account holder. 
a) An asset     b) A liability 
c) A provision   d) None 
 
16. P & Q are partners in a firm sharing profits and 
losses in the ratio of 5 : 3. R is admitted as a 
new partner for 1/5
th
 share. Then the 
sacrificing ratio will be ____   
a) 4 : 6  b) 1 : 2  c) 5 : 3  d) 1 : 1 
 
17. A & B are partners in a firm with capitals of 
Rs.5,00,000 each. C joined as a new partner for 
1/4
th
 share in profits with a capital of 
Rs.8,00,000. The credit balance of Profit & Loss 
a/c is Rs.4,00,000. Find the value of hidden 
goodwill.  
a) 14,00,000     b) 10,00,000   
c) 18,00,000     d) 12,00,000    
 
18. The subscribed share capital of S Ltd. is              
Rs.80,00,000 divided into shares of Rs.100 each. 
There were no calls in arrears till the final call 
was made. The final call made was paid on 
77,500 shares. The calls in arrears amounted to 
Rs.67,500. The final call per share=?    
 a) Rs.27      b) Rs.20    c) Rs.25      d) Rs.62.50 
 
19. If repair cost is Rs.30,000, whitewash expenses 
are Rs.6,000, cost of extension of building is 
Rs.3,00,000 and cost of improvement in 
electrical wiring system is Rs.22,800; the 
amount to be expensed is   
a) Rs. 3,58,800.    b) Rs. 52,800.  
c) Rs. 36,000.    d) Rs. 3,30,000. 
 
20. Goods sent on consignment = Rs. 2,00,000 
Consignor’s expenses   = Rs. 5,000 
Consignee’s expenses   = Rs. 2,000 
Cash sales      = Rs. 1,00,000 
Credit sales     = Rs. 1,10,000 
Closing Inventory   = Rs. 40,000 
Ordinary Commission  = Rs. 3,000 
Del-credere commission  = Rs. 2,000 
Bad Debts     = Rs. 2,000 
Find the profit on consignment.    
a) Rs.38,000   b) Rs.36,000   
c) Rs.40,000   d) Rs.43,000 
21. Errors can be detected ____     
a) Before the preparation of Trial Balance  
b) After the preparation of Trial Balance, but 
before the preparation of final accounts     
c) After the preparation of Final accounts (next 
accounting year)  d) All of the above 
 
22. On March 31, 2015 after sale of goods worth 
Rs.50,000, he is left with the closing inventory 
of Rs.20,000. This is   
 a) An event     b) A transaction 
 c) A transaction as well as an event  
 d) Neither a transaction nor an event 
 
23. A plant was purchased on 01-04-2010 for          
Rs.3,50,000. The useful life was estimated to 
be 5 years and scrap value as Rs.50,000. 
Calculate the rate of depreciation under 
Straight line method. 
a) 17.14% b) 20%    c) 15%   d) 17.5% 
 
24. Opening inventory   = Rs. 23,200 
Cost of goods sold   = Rs. 3,22,800  
Closing inventory  = Rs. 24,000   
Purchases     =? 
a) Rs. 3,22,000   b) Rs. 2,99,600   
c) Rs. 2,98,800   d) Rs. 3,23,600  
 
25. Stock worth Rs. 50,000 was destroyed by fire. 
The claim was fully accepted by the insurance 
company. The journal entry is      
a) Stock A/c    Dr. 50,000 
  To Trading A/c    50,000   
b) P & L A/c    Dr. 50,000 
  To Trading A/c    50,000   
c) Trading A/c    Dr. 50,000 
  To Insurance claim A/c  50,000  
d) Insurance claim A/c  Dr. 50,000 
  To Trading A/c    50,000 
 
26. WYE ltd redeemed 1,000, 10% preference 
shares of Rs.100 each at a premium of Rs.10 
per share. The company had a balance of 
Rs.50,000 in general reserve and Rs.27,000 in 
Profit & Loss a/c. For the purpose of 
redemption the company issued 5,000 equity 
shares of Rs. 10 each at a premium of 20%. The  
amount to be transferred to Capital 
Redemption Reserve will be  
a) Rs. 50,000   b) Rs. 1,00,000   
c) Rs. 60,000   d) Rs. 77,000 
Download From http://caknowledge.in
 
 
CA - CPT_June-2016 Question Paper _Session 1_____________________________4 
Ph: 9885125025/26                                                www.mastermindsindia.com            
 
 27. Discount received = Rs. 1,000     
Provision for discount on creditors = Rs. 1,600 
It is desired to make a provision of Rs. 1,100 on 
creditors. Find out the amount to be 
transferred to Profit & Loss A/c  
a) Rs. 500    b) Rs. 3,500   
c) Rs. 1,000    d) Rs. 1,500 
 
28. Reserve capital means 
a) The part of subscribed uncalled capital 
which will be called up at the time of 
liquidation only 
b) Accumulated Profits 
c) The part of Capital Reserve 
d) The part of Capital Redemption Reserve 
 
29. Debenture interest        
 a) Is payable only in case of profits 
b) Accumulates in case of losses or inadequate 
profits 
c) Is payable after the payment of preference 
dividend but before the payment of equity 
dividend 
d) Is payable before the payment of any 
dividend on shares 
 
30. Mr. Sobby draws a two months bill of Rs. 
50,000 on Mr. Dobby. Dobby accepts it on 01-
02-16. Sobby discounts it on 15-02-16 at 18% 
per annum. On the due date of bill Dobby 
became insolvent and 50 paise in a rupee 
could only be recovered from his estate. 
Calculate the amount of bad debt     
a) Rs. 25,000   b) Rs. 18,874   
c) Rs. 23,374   d) Rs. 27,300 
 
31. Opening capital    = Rs. 45,000  
Interest on capital    = Rs. 2,000 
Interest on drawings  = Rs. 5,000 
Drawings      = Rs. 14,000 
Profit       = Rs. 15,000 
Closing Capital     = ? 
a) Rs. 63,000   b) Rs. 43,000   
c) Rs. 47,000   d) Rs. 30,000 
 
32. Sales for the year ended 31st March, 2010 
amounted to Rs.10,00,000. Sales included 
goods sold to Mr. A for Rs.50,000 at a profit of 
20% on cost. Such goods are still lying in the 
godown at the buyer’s risk. Therefore, such 
goods should be treated as part of 
a) Sales     b) Closing inventory 
c) Goods in transit   d) Sales return 
33. Profit of the year = Rs. 6,00,000     
Capital employed = Rs. 4,00,000 
Normal rate of return = 15% 
Calculate the value of goodwill under 
capitalization method 
a) Rs. 41,00,000   b) Rs. 6,00,000   
c) Rs. 36,00,000   d) Rs. 21,00,000 
 
34. A & B are partners in a firm sharing profits and 
losses in the ratio of 5 : 3 with capitals of    
Rs.2,50,000 and Rs.2,00,000 respectively. C is 
admitted as a new partner who brings            
Rs.50,000 as capital and Rs.16,000 as goodwill 
for his 1/5
th
 share. The closing capitals of all 
the partners will be      
a) Rs. 2,60,000, Rs. 2,06,000, Rs. 50,000   
b) Rs. 2,58,000, Rs. 2,08,000, Rs. 50,000   
c) Rs. 2,58,000, Rs. 2,08,000, Rs. 66,000  
d) Rs. 2,66,000, Rs. 2,00,000, Rs. 50,000 
 
35. If preference shares are redeemed out of 
divisible profits, the nominal value of 
preference shares should be transferred to ___ 
a) Capital Reserve A/c   
b) Capital Redemption Reserve A/c   
c) General Reserve A/c  
d) Contingent Reserve A/c 
 
36. Which of the following statements is not true? 
a) All Personal & Real accounts ultimately 
show some balance    
b) The balances of Nominal accounts are 
transferred to Profit & Loss a/c    
c) Rent a/c is a personal account but 
outstanding rent account is a nominal account 
d) In ledger, accounts are opened separately  
 
37. Which of the following statements is/are false? 
I. The terms ‘depreciation’, ‘depletion’ and 
‘amortization’ convey the same meaning. 
II. Provision for depreciation A/c is debited 
when provision for depreciation A/c is created. 
III. The main purpose of charging the profit and 
loss A/c with the amount of depreciation is to 
spread the cost of an asset over its useful life 
for the purpose of income determination.   
a) Only I) above    
b) Only II) above 
 c) Only III) above  
 d) All I) II) and III) above 
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CA - CPT_June-2016 Question Paper _Session 1_____________________________1 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
JUNE 2016, CA-CPT QUESTION PAPER (BASED ON MEMORY) 
 
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CA - CPT_June-2016 Question Paper _Session 1_____________________________2 
Ph: 9885125025/26                                                www.mastermindsindia.com            
 
 
CA - CPT – JUNE 2016 QUESTION PAPER (BASED ON MEMORY) 
 
1
st
 Session     Marks: 100 Marks      Time: 2 hrs. 
 
PART A – FUNDAMENTALS OF ACCOUNTING 
 
1. A bill drawn and accepted for mutual help is 
known as ____ bill  
a) Accommodation    b) Trade 
c) Ordinary     d) Retired 
 
2. Financial position of a business concern is 
ascertained on the basis of _____  
a) Records prepared under book – keeping 
process  
b) Trial balance 
c) Accounting Reports  d) None 
 
3. BRS is a part of _____ 
a) Financial Statements  b) Bank Book 
c) Cash Book    d) None 
 
4. Inventory is valued either at cost or market 
price whichever is lower, according to the 
principle of ____ 
a) Conservatism    b) Matching 
c) Accrual     d) None 
 
5. Debentures can be _________.    
I. Mortgage Debentures or Simple 
Debentures 
II. Registered Debentures or Bearer 
Debentures. 
III. Redeemable Debentures or Irredeemable 
Debentures. 
IV. Convertible Debentures or Non-convertible 
Debentures. 
 a) Both I) and II) above  
 b) Both I) and III) above 
 c) Both II) and III) above  
 d) All of I), II), III) and IV) above. 
 
6. Total assets    =  Rs. 3,06,000  
Secured loans    =  Rs. 1,00,000 
Unsecured loans    =  Rs. 60,000 
Contingent Liabilities  =  Rs. 1,46,000 
Capital      =  ? 
a) Rs. 1,00,000   b) Rs. 1,46,000  
c) Rs. 60,000   d) Nil 
7. Insurance claim received on machinery 
destroyed by fire is a ____ 
a) Capital receipt    b) Revenue receipt 
c) Capital expenditure    
d) Revenue Expenditure 
 
8. Opening inventory =  Rs. 4,00,000  
Cash sales    =  Rs. 2,00,000 
Total sales    =  Rs. 17,00,000 
Selling price    =    125% of purchase price 
What is the cost of goods sold? 
a) Rs. 15,60,000   b) Rs. 13,60,000  
c) Rs. 15,00,000   d) Rs. 11,00,000 
 
9. In Journal & ledger transactions are recorded 
in ______ order respectively 
a) Analytical    b) Chronological 
c) Chronological & Analytical      
d) Analytical & Chronological  
 
10. According to SEBI guidelines, the minimum 
share application money is ____ 
a) 2.5% of nominal value of share    
b) 2.5% of issue price of share  
c) 25% of nominal value of share   
 d) 25% of issue price of share  
 
11. A decrease in the provision for doubtful debts 
would result in _____  
a) Increase in liability   b) Decrease in liability 
c) Decrease in net profit 
d) Increase in net profit 
 
12. On 05-01-16, Mr. A draws a bill on Mr. B for 30 
days after sight. The bill was accepted on 08-
01-16. Then the date of maturity of the bill will 
be ____  
a) 08-02-16     b) 09-02-16  
c) 10-02-16    d) 11-02-16 
 
13. Purchases  = Rs. 25,00,000 
70% of the goods are sold 
Closing inventory is valued at Rs. 5,00,000 
instead of at Rs. 7,50,000.  
Which concept has been followed? 
a) Conservatism    b) Cost  
c) Accrual    d) Matching  
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CA - CPT_June-2016 Question Paper _Session 1_____________________________3 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
14. When Del-credere commission is paid, bad 
debts will be debited to ____ A/c in the books 
of consignee 
a) Commission earned   b) Consignor  
c) Credit receivable  d) Consignment 
 
15. Credit balance of bank pass book will be ___ to 
the account holder. 
a) An asset     b) A liability 
c) A provision   d) None 
 
16. P & Q are partners in a firm sharing profits and 
losses in the ratio of 5 : 3. R is admitted as a 
new partner for 1/5
th
 share. Then the 
sacrificing ratio will be ____   
a) 4 : 6  b) 1 : 2  c) 5 : 3  d) 1 : 1 
 
17. A & B are partners in a firm with capitals of 
Rs.5,00,000 each. C joined as a new partner for 
1/4
th
 share in profits with a capital of 
Rs.8,00,000. The credit balance of Profit & Loss 
a/c is Rs.4,00,000. Find the value of hidden 
goodwill.  
a) 14,00,000     b) 10,00,000   
c) 18,00,000     d) 12,00,000    
 
18. The subscribed share capital of S Ltd. is              
Rs.80,00,000 divided into shares of Rs.100 each. 
There were no calls in arrears till the final call 
was made. The final call made was paid on 
77,500 shares. The calls in arrears amounted to 
Rs.67,500. The final call per share=?    
 a) Rs.27      b) Rs.20    c) Rs.25      d) Rs.62.50 
 
19. If repair cost is Rs.30,000, whitewash expenses 
are Rs.6,000, cost of extension of building is 
Rs.3,00,000 and cost of improvement in 
electrical wiring system is Rs.22,800; the 
amount to be expensed is   
a) Rs. 3,58,800.    b) Rs. 52,800.  
c) Rs. 36,000.    d) Rs. 3,30,000. 
 
20. Goods sent on consignment = Rs. 2,00,000 
Consignor’s expenses   = Rs. 5,000 
Consignee’s expenses   = Rs. 2,000 
Cash sales      = Rs. 1,00,000 
Credit sales     = Rs. 1,10,000 
Closing Inventory   = Rs. 40,000 
Ordinary Commission  = Rs. 3,000 
Del-credere commission  = Rs. 2,000 
Bad Debts     = Rs. 2,000 
Find the profit on consignment.    
a) Rs.38,000   b) Rs.36,000   
c) Rs.40,000   d) Rs.43,000 
21. Errors can be detected ____     
a) Before the preparation of Trial Balance  
b) After the preparation of Trial Balance, but 
before the preparation of final accounts     
c) After the preparation of Final accounts (next 
accounting year)  d) All of the above 
 
22. On March 31, 2015 after sale of goods worth 
Rs.50,000, he is left with the closing inventory 
of Rs.20,000. This is   
 a) An event     b) A transaction 
 c) A transaction as well as an event  
 d) Neither a transaction nor an event 
 
23. A plant was purchased on 01-04-2010 for          
Rs.3,50,000. The useful life was estimated to 
be 5 years and scrap value as Rs.50,000. 
Calculate the rate of depreciation under 
Straight line method. 
a) 17.14% b) 20%    c) 15%   d) 17.5% 
 
24. Opening inventory   = Rs. 23,200 
Cost of goods sold   = Rs. 3,22,800  
Closing inventory  = Rs. 24,000   
Purchases     =? 
a) Rs. 3,22,000   b) Rs. 2,99,600   
c) Rs. 2,98,800   d) Rs. 3,23,600  
 
25. Stock worth Rs. 50,000 was destroyed by fire. 
The claim was fully accepted by the insurance 
company. The journal entry is      
a) Stock A/c    Dr. 50,000 
  To Trading A/c    50,000   
b) P & L A/c    Dr. 50,000 
  To Trading A/c    50,000   
c) Trading A/c    Dr. 50,000 
  To Insurance claim A/c  50,000  
d) Insurance claim A/c  Dr. 50,000 
  To Trading A/c    50,000 
 
26. WYE ltd redeemed 1,000, 10% preference 
shares of Rs.100 each at a premium of Rs.10 
per share. The company had a balance of 
Rs.50,000 in general reserve and Rs.27,000 in 
Profit & Loss a/c. For the purpose of 
redemption the company issued 5,000 equity 
shares of Rs. 10 each at a premium of 20%. The  
amount to be transferred to Capital 
Redemption Reserve will be  
a) Rs. 50,000   b) Rs. 1,00,000   
c) Rs. 60,000   d) Rs. 77,000 
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CA - CPT_June-2016 Question Paper _Session 1_____________________________4 
Ph: 9885125025/26                                                www.mastermindsindia.com            
 
 27. Discount received = Rs. 1,000     
Provision for discount on creditors = Rs. 1,600 
It is desired to make a provision of Rs. 1,100 on 
creditors. Find out the amount to be 
transferred to Profit & Loss A/c  
a) Rs. 500    b) Rs. 3,500   
c) Rs. 1,000    d) Rs. 1,500 
 
28. Reserve capital means 
a) The part of subscribed uncalled capital 
which will be called up at the time of 
liquidation only 
b) Accumulated Profits 
c) The part of Capital Reserve 
d) The part of Capital Redemption Reserve 
 
29. Debenture interest        
 a) Is payable only in case of profits 
b) Accumulates in case of losses or inadequate 
profits 
c) Is payable after the payment of preference 
dividend but before the payment of equity 
dividend 
d) Is payable before the payment of any 
dividend on shares 
 
30. Mr. Sobby draws a two months bill of Rs. 
50,000 on Mr. Dobby. Dobby accepts it on 01-
02-16. Sobby discounts it on 15-02-16 at 18% 
per annum. On the due date of bill Dobby 
became insolvent and 50 paise in a rupee 
could only be recovered from his estate. 
Calculate the amount of bad debt     
a) Rs. 25,000   b) Rs. 18,874   
c) Rs. 23,374   d) Rs. 27,300 
 
31. Opening capital    = Rs. 45,000  
Interest on capital    = Rs. 2,000 
Interest on drawings  = Rs. 5,000 
Drawings      = Rs. 14,000 
Profit       = Rs. 15,000 
Closing Capital     = ? 
a) Rs. 63,000   b) Rs. 43,000   
c) Rs. 47,000   d) Rs. 30,000 
 
32. Sales for the year ended 31st March, 2010 
amounted to Rs.10,00,000. Sales included 
goods sold to Mr. A for Rs.50,000 at a profit of 
20% on cost. Such goods are still lying in the 
godown at the buyer’s risk. Therefore, such 
goods should be treated as part of 
a) Sales     b) Closing inventory 
c) Goods in transit   d) Sales return 
33. Profit of the year = Rs. 6,00,000     
Capital employed = Rs. 4,00,000 
Normal rate of return = 15% 
Calculate the value of goodwill under 
capitalization method 
a) Rs. 41,00,000   b) Rs. 6,00,000   
c) Rs. 36,00,000   d) Rs. 21,00,000 
 
34. A & B are partners in a firm sharing profits and 
losses in the ratio of 5 : 3 with capitals of    
Rs.2,50,000 and Rs.2,00,000 respectively. C is 
admitted as a new partner who brings            
Rs.50,000 as capital and Rs.16,000 as goodwill 
for his 1/5
th
 share. The closing capitals of all 
the partners will be      
a) Rs. 2,60,000, Rs. 2,06,000, Rs. 50,000   
b) Rs. 2,58,000, Rs. 2,08,000, Rs. 50,000   
c) Rs. 2,58,000, Rs. 2,08,000, Rs. 66,000  
d) Rs. 2,66,000, Rs. 2,00,000, Rs. 50,000 
 
35. If preference shares are redeemed out of 
divisible profits, the nominal value of 
preference shares should be transferred to ___ 
a) Capital Reserve A/c   
b) Capital Redemption Reserve A/c   
c) General Reserve A/c  
d) Contingent Reserve A/c 
 
36. Which of the following statements is not true? 
a) All Personal & Real accounts ultimately 
show some balance    
b) The balances of Nominal accounts are 
transferred to Profit & Loss a/c    
c) Rent a/c is a personal account but 
outstanding rent account is a nominal account 
d) In ledger, accounts are opened separately  
 
37. Which of the following statements is/are false? 
I. The terms ‘depreciation’, ‘depletion’ and 
‘amortization’ convey the same meaning. 
II. Provision for depreciation A/c is debited 
when provision for depreciation A/c is created. 
III. The main purpose of charging the profit and 
loss A/c with the amount of depreciation is to 
spread the cost of an asset over its useful life 
for the purpose of income determination.   
a) Only I) above    
b) Only II) above 
 c) Only III) above  
 d) All I) II) and III) above 
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CA - CPT_June-2016 Question Paper _Session 1_____________________________5 
No.1 for CA/CWA & MEC/CEC                                                       MASTER MINDS 
 
38.      
Product A B C D E 
Cost (Rs.) 45,000 57,500 1,37,500 50,000 1,05,000 
NRV (Rs.) 47,600 77,500 1,32,500 62,500 1,00,000 
 
What is the value of inventory at the end of 
the year as per conservatism principle? 
a) Rs. 3,95,000   b) Rs. 3,85,000   
c) Rs. 4,20,100    d) Rs. 3,48,000 
 
39. Sunset Tours has a Rs.70,000 account 
receivable from Mohan. On January 20, the 
latter makes a partial payment of Rs.50,000 to 
Sunset Tours. The journal entry made on 
January 20 by Sunset Tours to record this 
transaction includes:  
a) A Credit to the cash received a/c of 
Rs.50,000 
b) A Credit to the account receivable account 
of Rs.50,000 
c) A Debit to the cash account of Rs.20,000 
d) A Debit to the accounts receivable account 
of Rs.20,000 
 
40. Which of the following can be utilized for 
redemption of preference shares?   
a) The proceeds of fresh issue of equity shares  
 b) The proceeds of issue of debentures 
 c) The proceeds of issue of fixed deposit  
 d) All of the above 
 
41. Mr. X consigned goods costing Rs. 1,50,000 to 
Mr. Y at cost + 25%. 1/10 of the goods were 
lost in transit. Mr. Y sold 3/5
th
 of the remaining 
goods at 10% above the invoice price. 
Calculate the amount of sales.     
a) Rs. 1,85,625   b) Rs. 1,01, 250   
c) Rs. 1,23,750   d) Rs. 1,11,375  
 
42. If goods are sent on sale or return basis, it will 
be treated as _____     
a) An ordinary sale and not recorded in the 
books   
b) An ordinary sale and recorded in the books 
as normal sale 
c) The goods are approved and no entry is 
passed in the books  d) None of these 
 
43. Amount recovered from debtor, which was 
earlier written off as bad debt is debited to 
Cash A/c and credited to ___ A/c   
a) Bad Debts         b) Bad debts recovered  
c) Rahul           d) Sales 
44. From the following balances find out the total 
of trial balance. 
Capital       Rs. 4,00,000  
Computer      Rs. 25,000 
AC & Furniture     Rs. 1,00,000 
Fixed deposits    Rs. 2,00,000 
Salaries      Rs. 8,00,000 
Fees Received    Rs. 12,00,000 
Traveling expenses    Rs. 1,50,000 
Rent & office expenses   Rs. 2,40,000 
Cash       Rs. 1,80,000 
Bank O.D     Rs. 95,000   
a) Rs. 16,00,000   b) Rs. 14,50,000   
c) Rs. 16,95,000   d) Rs. 15,00,000 
 
45. Sohan purchased goods for Rs.18,00,000 and 
sold 4/5th of the goods for Rs.21,60,000 and 
met expenses amounting to Rs.3,00,000 during 
the year, 2015. He counted net profit as 
Rs.4,20,000. Which of the accounting concepts 
was followed by him?  
a) Entity.     b) Periodicity.  
c) Matching.    d) Conservatism. 
 
46. Aar and Bar were partners in a joint venture 
sharing profits and losses in the proportion of 
4/5th and 1/5th respectively. Aar supplies 
goods to the value of Rs.50,000 and incurs 
expenses amounting to Rs.5,400. Bar supplies 
goods to the value of Rs.14,000 and his 
expense amount to Rs.800. Bar sells goods on 
behalf of the joint venture and realizes 
Rs.92,000. Bar is entitled to a commission of 5 
percent on sales. Bar settles his account by 
bank draft. What will be the final remittance?  
 a) Bar will remit Rs.69,160 to Aar 
 b) Aar will remit Rs.69,160 to Bar 
 c) Aar will remit Rs.69,000 to Bar 
 d) Bar will remit Rs.69,000 to Aar 
 
47. Rent received from a tenant Rs. 18,000 was 
correctly entered in the cash book and posted 
to the debit of Rent a/c. The effect of this error 
on the trial balance will be       
a) Debit total will be Rs. 36,000 more than the 
credit total    
b) Debit total will be Rs. 18,000 more than the 
credit total   
c) Subject to other entries being correct, the 
total will agree      
d) None of these 
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