Saturday, May 12, 2012

CPT Model Question Papers


CPT Model Question Papers
  1. 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.
(a) A can exercise his right of lien and refuse to make delivery to C.
(b) A cannot exercise his right of lien and refuse to make delivery to C.
(c) C has claim over the goods in possession of A.
(d) None of the above.
  1. It is generally assumed that the business will not liquidate in the near foreseeable future because of.
(a) Periodicity
(b) Materialityc
(c) Matching
(d) Going concern
  1. Which of the following is correct?
(a) Capital is equal to assets plus liabilities
(b) Assets is equal to liabilities minus capital
(c ) Liabilities is equal to capital plus assets
(d) Capital is equal to assets minus liabilities.
  1. Double column cash book records
(a) Only cash transactions
(b) All transactions
(c) Cash and bank transactions
(d) Cash purchase and cash sale transactions.
  1. Errors of commission do not permit:
(a) Correct totaling of the trial balance
(b) Correct totaling of the Balance sheet,
(c ) Trial balance to agree
(d) None of the above.
  1. All of the following have debit balance except one. That account is:
(a)Wages account
(b) Debtors accounts
(c ) Bills payable account
(d) Goodwill.
  1. The term depletion is used for
(a) Fixed Assets
(b) Natural resources
(c) Intangible assets
(d) None of the three.
  1. A Bill of exchange requires
(a) Noting
(b) Registration
(c) Acceptance
(d) None of the above.
  1. According to the provisions of Reserve Bank of India Act, a promissory note cannot be made payable to the:
(a) Bank
(b) Endorser
(c ) Bearer
(d) None of the above.
  1. Rs. 5,000 spent to remove a worn out part and replace it with a new one is
(a) Capital expenditure
(b) Revenue expenditure
(c) Deferred revenue expenditure
(d) None of the above.
  1. Outstanding salary account is:
(a) Real account
(b) Personal account
(c ) Nominal account
(d) None of the above.
  1. Drawings are deducted from ________________
(a) Sales
(b) Purchases
(c ) Expenses
(d) Capital.
  1. The trail balance of Meghna shows the opening stock of Rs. 10,000, it will be ________________
(a) Debited to the trading account
(b) Credited to the trading account,
(c ) Deducted from closing stock in the balance sheet
(d) Added to closing stock in the balance sheet.
  1. Purchase returns appearing in the trial balance are deduced from __________________
(a) Sales returns
(b) Capital
(c ) Sales
(d) Purchases.
  1. ____________ Will generally show a debit balance.
(a) Bank Loan
(b) Bad debts recovered
(c ) Salary Payable
(d) Drawings.
  1. Purchase of a fixed assets on credit basis is recorded in ________________
(a) Cash Book
(b) Purchases Book
(c) Journal proper
(d) None of the above.
  1. Accounting means recording of _________________
(a) Transactions
(b) Events
(c ) Both (a) and (b)
(d) Neither (a) nor (b).
  1. Unless given otherwise, the ratio of sacrifice is the same as _______________
(a) New profit sharing ratio
(b) Equal ratio
(c ) Old profit sharing ratio
(d) None of the above.
  1. The ratio in which the continuing partners acquire the outgoing (Retired or deceased) partner�s share is called _____________
(a) Sacrificing ratio
(b) Gaining ratio
(c ) New Profit sharing ratio
(d) Old profit sharing ratio.
  1. A Bill of exchange is called a __________ by one who is liable to pay it on the due date.
(a) Bill receivable
(b) Noted bill of exchange
(c ) Bill payable
(d) None of the above.
  1. The amount of calls in arrear is deducted from ___________ to arrive at ______________
(a) Issued capital, called up capital
(b) Called up capital, issued capital,
(c ) Paid up capital, called up capital
(d) Called up capital, paid up capital.
  1. If a machinery is purchased for Ra. 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.
(a) Realization concept
(b) Present value concept
(c) Replacement concept
(d) Cost concept.
  1. Mr. Shyam deposited a cheque on 28th March, 2006 for a sum of Rs. 10,000. The cheque was collected on 4th April, 2006. If the Bank balance as per cash book on 31st March, 2006 is Rs. 1,00,000, balance as per pass book will be:
(a) Rs. 1,10,000
(b) Rs. 90,000
(c ) Rs. 1,00,000
(d) None of the above.
  1. If cost of goods sold is Rs. 100,000, sales is Rs. 1,25,000, closing stock is Rs. 20,000, the gross profit will be
(a) Rs. 45,000
(b) Rs. 5,000
(c) Rs. 25,000
(d) None of the three.
  1. 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 and received cash of Rs.1,000. 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.
(a) Profit of Rs. 2,000
(b) Loss of Rs. 2,000
(c ) Profit of Rs. 1,000
(d) Loss of Rs. 1,000.
  1. On 1st January, 2006, Mohan draws upon Sohan a bill of exchange at three months of Rs. 2,000 for mutual accommodation. On 4th January, 2006 Mohan discounts the bill @ 6% per annum and sends half of the
(a) Rs. 1,000
(b) Rs. 970
(c ) Rs. 985
(d) Rs. 2,000.
  1. 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 26th March, 2006 goods costing Rs. 10,000 were sent to Annu Ltd. No confirmation has been received from Annu Ltd. Till 31st March, 2006. The amount of stock with customers to be shown as closing stock in the balance sheet of ABC Ltd. As on 31st March, 2006 will be.
(a) Rs. 12,500
(b) Rs. 8,000
(c ) Rs. 10,000
(d) NIL
  1. Somesh and Ramesh are equal partners. Their capitals are Rs. 40,000 and Rs. 80,000 respectively. 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 account need to be debited by.
(a) Rs. 2,000
(b) NIL
(c ) Rs. 1,000
(d) None of the above
.
  1. A, B and C are paertners in the ratio of 3:2:1. D is admitted in the firm for 1/6th share in profits. C would retain his original share. The new profit sharing ratio between A, B C and D will be.
(a) 12:8:5:5
(b) 8:12:5:5
(c ) 5:5:12:8
(d) 5:5:8:12.
  1. Menu and Renu are partners sharing profits and losses in the ratio of 2:3 with capitals of Rs. 20,000 and Rs. 10,000. The partnership deals provides for interest on capital @ 6% per annum. Trading profits of the firm for the year ended 31st March, 2006 are Rs. 1,500. The amount of profit or loss apportioned between Menu and Renu are
(a) Loss of Rs. 300
(b) No Profit no loss
(c ) Profit of Rs. 1,000
(d) Profit of Rs. 1,500.
  1. A firm earns profit of Rs. 1,10,000. The normal rate of return ina 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 is
(a) Rs. 1,00,000
(b) Rs. 10,00,000
(c ) NIL
(d) None of the above.
  1. The cost of stock as per physical verification of Bharat Ltd. On 10th April, 2006 was Rs. 1,20,000. The following transactions took place between 1st April, 2006 to 10th April, 2006:

    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 31st March, 2006 will be
(a) Rs. 1,19,000
(b) Rs. 1,11,000
(c ) Rs. 1,21,000
(d) Rs. 1,20,000.
  1. The following data has been provided by Omega Ltd:

    Item No. Units Cost per unit Realization value per unit
1 2 10 11
2 10 5 4
3 2 2 2
The value of inventory
  1. RPC Ltd. follows the written down value method of depreciating machinery year after year due to
(a) Comparability.
(b) Convenience.
(c) Consistency.
(d) All of the above.
  1. A change in accounting policy is justified
(a) To comply with accounting standard.
(b) To ensure more appropriate presentation of the financial statement of the enterprise.
(c) To comply with law.
(d) All of the above.
  1. Purchases book records:
(a) All cash purchases.
(b) All credit purchases.
(c) Credit purchases of goods in trade.
(d) None of the above.
  1. A Bank Reconciliation Statement is prepared to know the causes for the difference between:
(a) the balances as per cash column of Cash Book and the Pass Book.
(b) the balance as per bank column of Cash Book and the Pass Book.
(c) the balance as per bank column of Cash Book and balances as per cash column of Cash Book
(d) None of the above.
  1. While finalizing the current year�s profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by Rs.50,000. As a result
(a) Previous year�s profit is overstated and current year�s profit is also overstated
(b) Previous year�s profit is understated and current year�s profit is overstated
(c) Previous year�s profit is understated and current year�s profit is also understated
(d) Previous year�s profit is overstated and current year�s profit is understated
  1. In the absence of any provision in the partnership agreement, profits and losses are shared
(a) In the ratio of capitals.
(b) Equally.
(c) In the ratio of loans given by them to the partnership firm.
(d) None of the above.
  1. Fundamental accounting assumptions are
(a) Materiality.
(b) Business entity.
(c) Going concern.
(d) Dual aspect
  1. Which of the following errors are not revealed by the Trial Balance:
(a) compensating errors;
(b) errors of commission;
(c) wrong balancing of an account;
(d) wrong totalling of an account
  1. Which of the following are of capital nature?
(a) Purchase of a goods
(b) Cost of repair
(c) Wages paid for installation of machinery
(d) Rent of a factory
  1. Which of the following statement is not true:
(a) If del-creder�s commission is allowed, bad debt will not be recorded in the books of consignor
(b) If del-creder�s commission is allowed, bad debt will be debited in consignment account
(c) Del-creder�s commission is allowed by consignor to consignee
(d) Del-creder�s commission is generally relevant for credit sales
  1. Discount on issue of debentures is a __________
(a) Revenue loss to be charged in the year of issue
(b) Capital loss to be written off from capital reserve
(c) Capital loss to be written off over the tenure of the debentures
(d) Capital loss to be shown as goodwill
  1. Loss on issue of debentures is treated as ____________.
(a) Intangible asset
(b) Current asset
(c) Current liability
(d) Miscellaneous expenditure
  1. Dividends are usually paid as a percentage of ______
(a) Authorized share capital
(b) Net profit
(c) Paid-up capital
(d) Called-up capital
  1. At the time of death of a partner, firm gets ________ from the insurance company against the Joint Life Policy taken jointly for all the partners.
(a) Policy Amount.
(b) Surrender Value.
(c) Policy Value for the dead partner and Surrender Value for the rest.
(d) Surrender Value for all the partners.
  1. Profit or loss on revaluation is shared among the partners in _______ ratio.
(a) Old Profit Sharing.
(b) New Profit Sharing.
(c) Capital.
(d) Equal.
  1. Interest on capital will be paid to the partners if provided for in the agreement but only from________
(a) Profits.
(b) Reserves.
(c) Accumulated Profits.
(d) Goodwill.
  1. The owner of the consignment stock is________
(a) Consignor
(b) Consignee
(c) Debtors
(d) None
  1. The parties to joint venture is called_________
(a) Co-venturers
(b) Partners
(c) Principal & Agent
(d) Friends
  1. The purpose of accommodation bill is_______
(a) To finance actual purchase or sale of goods
(b) To facilitate trade transmission
(c) When both parties are in need of funds
(d) None of the above
  1. The number of production or similar units expected to be obtained from the use of an asset by an enterprise is called as _________
(a) Unit life
(b) Useful life
(c) Production life
(d) Expected life
  1. Mr. A purchased a machinery costing Rs. 1,00,000 on 1st October, 2005. Transportation and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively. Dismantling charges of the old machine in place of which new machine was purchased amounted Rs. 10,000. Market value of the machine was estimated at Rs. 1,20,000 on 31st March 2006. While finalising the annual accounts, A values the machinery at Rs. 1,20,000 in his books. Which of the following concepts was violated by A?
(a) Cost concept
(b) Matching concept
(c) Realisation concept
(d) Periodicity concept.
  1. M/s ABC Brothers, which was registered in the year 2000, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The auditor raised objection to this change in the method of depreciation. The objection of the auditor is justified because
(a) Change in the method of depreciation should be done only with the consent of the auditor
(b) Depreciation method can be changed only from WDV to SLM and not vice versa
(c) Change in the method of deprecation should be done only if it is required by some statute and change would result in appropriate presentation of financial statement
(d) Method of depreciation cannot be changed under any circumstances.
  1. If Cost of goods sold is Rs.80,700, Opening stock Rs.5,800 and Closing stock Rs.6,000. Then the amount of purchase will be
(a) Rs.80,500
(b) Rs.74,900
(c) Rs.74,700
(d) Rs.80,900.
  1. External Econimics Is Form Of--
(a) Firm
(b) Group Of Firm
(c) Society
(d) None Of These
  1. Which Of Market Structure Is Known As Ideal Market Structure ?
(a) Monopoly
(b) Monopoly Competitation
(c) Perpect Competation
(d) OligopolY
  1. Revenue from sale of products, is generally, recognized in the period in which
(a)Sale is made.
(b)Cash is collected
(c) Products are manufactured.
(d) None of the above
  1. RPC Ltd. follows the written down value method of depreciating machinery year after

    year due to
(a) Comparability.
(b) Convenience.
(c) Consistency.
(d) All of the above.
  1. if A=B/2=C/5, then A:B:C is
(a)3:5:2
(b) 2:5:3
(c) 1:2:5
(d) none of the above (plese give the solution for the above)
  1. P,Q & R are three cities. the ratio of average tempareture between P and Q is 11:12 and that between P and R is 9:8. the ration between the average temparature of Q and R is
(a)22:27
(b) 27:22
(c) 32:33
(d) none of the above
  1. Sales for the year ended 31st march,2005 amounted to rs.10,00,000.sales included goods sold to mr.A for rs.50,000. at a profit 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 stock
(c)Goods in Transit
(d)None of these
  1. A new firm commenced business on 1st January, 2006 and purchased goods costing Rs. 90,000 during the year. A sum of Rs. 6,000 was spent on freight inwards. At the end of the year the cost of goods still unsold was Rs. 12,000. Sales during the year Rs.1,20,000. What is the gross profit earned by the firm?
(a) Rs. 36,000
(b) Rs. 30,000
(c) Rs. 42,000
(d) Rs. 38,000
  1. Original cost = Rs 1,26,000. Salvage value = 6,000. Useful Life = 6 years. Annual depreciation under SLM will be
(a) Rs.21,000
(b) Rs.20,000
(c) Rs.15,000
(d) Rs.14,000
  1. If Cost of goods sold is Rs.80,700, Opening stock Rs.5,800 and Closing stock Rs.6,000. Then the amount of purchase will be
(a) Rs.80,500
(b) Rs.74,900
(c) Rs.74,700
(d) Rs.80,900.
  1. Line Method (SLM) of depreciation. In the current year it changed its method from straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The auditor raised objection to this change in the method of depreciation. The objection of the auditor is justified because
(a) Change in the method of depreciation should be done only with the consent of the auditor
(b) Depreciation method can be changed only from WDV to SLM and not vice versa
(c) Change in the method of deprecation should be done only if it is required by some statute and change would result in appropriate presentation of financial statement
(d) Method of depreciation cannot be changed under any circumstances.
  1. Mr. A purchased a machinery costing Rs. 1,00,000 on 1st October, 2005. Transportation and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively. Dismantling charges of the old machine in place of which new machine was purchased amounted Rs. 10,000. Market value of the machine was estimated at Rs. 1,20,000 on 31st March 2006. While finalising the annual accounts, A values the machinery at Rs. 1,20,000 in his books. Which of the following concepts was violated by A?
(a) Cost concept
(b) Matching concept
(c) Realisation concept
(d) Periodicity concept.
  1. The number of production or similar units expected to be obtained from the use of an asset by an enterprise is called as _________
(a) Unit life
(b) Useful life
(c) Production life
(d) Expected life
  1. The purpose of accommodation bill is_______
(a) To finance actual purchase or sale of goods
(b) To facilitate trade transmission
(c) When both parties are in need of funds
(d) None of the above
  1. The parties to joint venture is called_________
(a) Co-venturers
(b) Partners
(c) Principal & Agent
(d) Friends
  1. Interest on capital will be paid to the partners if provided for in the agreement but only from________
(a) Profits.
(b) Reserves.
(c) Accumulated Profits.
(d) Goodwill.
  1. The owner of the consignment stock is________
(a) Consignor
(b) Consignee
(c) Debtors
(d) None
  1. Profit or loss on revaluation is shared among the partners in _______ ratio.
(a) Old Profit Sharing.
(b) New Profit Sharing.
(c) Capital.
(d) Equal.
  1. At the time of death of a partner, firm gets ________ from the insurance company against the Joint Life Policy taken jointly for all the partners.
(a) Policy Amount.
(b) Surrender Value.
(c) Policy Value for the dead partner and Surrender Value for the rest.
(d) Surrender Value for all the partners.
  1. Loss on issue of debentures is treated as ____________.
(a) Intangible asset
(b) Current asset
(c) Current liability
(d) Miscellaneous expenditure
  1. Discount on issue of debentures is a __________
(a) Revenue loss to be charged in the year of issue
(b) Capital loss to be written off from capital reserve
(c) Capital loss to be written off over the tenure of the debentures
(d) Capital loss to be shown as goodwill
  1. Which of the following statement is not true:
(a) If del-creder�s commission is allowed, bad debt will not be recorded in the books of consignor
(b) If del-creder�s commission is allowed, bad debt will be debited in consignment account
(c) Del-creder�s commission is allowed by consignor to consignee
(d) Del-creder�s commission is generally relevant for credit sales
  1. Which of the following are of capital nature?
(a) Purchase of a goods
(b) Cost of repair
(c) Wages paid for installation of machinery
(d) Rent of a factory
  1. Which of the following errors are not revealed by the Trial Balance:
(a) compensating errors;
(b) errors of commission;
(c) wrong balancing of an account;
(d) wrong totalling of an account
  1. Fundamental accounting assumptions are
(a) Materiality.
(b) Business entity.
(c) Going concern.
(d) Dual aspect
  1. In the absence of any provision in the partnership agreement, profits and losses are shared
(a) In the ratio of capitals.
(b) Equally.
(c) In the ratio of loans given by them to the partnership firm.
(d) None of the above.
  1. While finalizing the current year�s profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by Rs.50,000. As a result
(a) Previous year�s profit is overstated and current year�s profit is also overstated
(b) Previous year�s profit is understated and current year�s profit is overstated
(c) Previous year�s profit is understated and current year�s profit is also understated
(d) Previous year�s profit is overstated and current year�s profit is understated
  1. A Bank Reconciliation Statement is prepared to know the causes for the difference between:
(a) the balances as per cash column of Cash Book and the Pass Book.
(b) the balance as per bank column of Cash Book and the Pass Book.
(c) the balance as per bank column of Cash Book and balances as per cash column of Cash Book
(d) None of the above.
  1. Purchases book records:
(a) All cash purchases.
(b) All credit purchases.
(c) Credit purchases of goods in trade.
(d) None of the above
  1. A change in accounting policy is justified
(a) To comply with accounting standard.
(b) To ensure more appropriate presentation of the financial statement of the enterprise.
(c) To comply with law.
(d) All of the above.
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