Professional Documents
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Accounts CA CPT
Accounts CA CPT
Q.1 Which of the following practices is not in consonance with the convention of conservatism?
1. Creating provision for bad debts
2. Creating provision for discount on creditors
3. Creating provision for discount on debtors
4. Creating provision for tax
Correct Answer: 2
Q.2 Omission of paise and showing the round figures in financial statements is based on
1. Conservatism concept
2. Consistency concept
3. Materiality concept
4. Realisation concept
Correct Answer: 3
Q.3 Accounting does not record non-financial transactions because of:
1. Accrual concept
2. Cost concept
3. Continuity concept
4. Money measurement concept
Correct Answer: 4
Q.4 Which of these are is not a fundamental accounting assumption?
1. Going concern
2. Consistency
3. Conservatism
4. Accrual
Correct Answer: 3
Q.15 Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation, is termed as ________
1. Provision
2. Liability
3. Contingent liability
4. None of the above
Correct Answer: 1
Q.16 The debts written off as bad, if recovered subsequently are
1. Credited to Bad Debts Recovered Account
2. Credited to Debtors Account
3. Debited to Profit and Loss Account
4. None of the above
Correct Answer: 1
Q.17 Amount realized from the sale of securities (Investments) purchased earlier is an example of
1. Revenue Expenditure
2. Capital Receipt
3. Deferred Revenue Expenditure
4. Capital Expenditure
Correct Answer: 2
Q.18 Ram is aware that his books for the year ended 31'' March contained some errors. However, he took the difference to the
Suspense Account and prepared the annual Financial Statements. Later, he identified the errors as - Goods bought on credit from
Lal for Rs.3,500 was entered in the Sales Book as Rs. 3,050 . Lal was credited with Rs. 3,050 in the Ledger .
What is the entry for rectifying the above error?
1. Dr. Sales A/c 3,500 and Cr. Lal A/c 450 and Suspense A/c 3,050
2. Dr. Sales A/c 3,500, Purchase A/c 3,050 and Cr. Suspense A/c 6,550
3. Dr. Lal A/c 6,550 and Cr. Suspense A/c 450; P & L Adj. A/c 6,100
4. Dr. P & L Adjustment A/c 6,550 and Cr. Lal A/c 450; Suspense A/c 6,100
Correct Answer: 4
Q.36 The total cost of goods available for sale with a company during the current year is Rs.12,00,000 and the total sales during
the period are Rs. 13,00,000 . If the gross profit margin of the company is 33 1/3% on cost, the closing inventory during the
current Year is
1. Rs.4,00,000
2. Rs.3,00,000
3. Rs.2,25,000
4. Rs.2,60,000
Correct Answer: 3
Q.37 The adjustments to be made for prepaid expenses is:
1. Add prepaid expenses to respective expenses and show it as an asset
2. Deduct prepaid expenses from respective expenses and show it as an asset
3. Add prepaid expenses to respective expenses and show it as a liability
4. Deduct prepaid expenses from respective expenses and show it as a liability
Correct Answer: 2
Q.38 If average stock is Rs. 20,000. Closing stock is Rs. 4,000 more than value of opening stock. Closing stock will be:
1. Rs. 16,000
2. Rs. 18,000
3. Rs. 20,000
4. Rs. 22,000
Correct Answer: 4
Q.39 What is the amount of purchase when opening stock = Rs.3,500 Closing Stock = Rs.1,500, Cost of goods sold = Rs.22,000.
1. Rs.20,000
2. Rs.24,000
3. Rs.27,000
4. Rs.17,000
Correct Answer: 1
1,00,000
60,000
70,000
10,000
1,400
Equation -I
Equation -I I
Q.54 Commission provided by the consignor to the consignee to promote higher sale is known as:
1. Ordinary commission
2. Del credere commission
3. Over - riding commission
4. Special commission
Correct Answer: 3
Q.55 On 1st January Shilpa owes Rs. 10,000 and accepts a 3 months bill for the amount. On the date of maturity Shilpa was
not able to meet the bill. She pays Rs. 4,000 and asks to draw another bill for three months for the balance amount with
interest @ 15% p.a. The amount of interest will be:
1. Rs. 200
2. Rs. 225
3. Rs. 500
4. Rs. 900
Correct Answer: 2
Q.60 In the absence of Partnership Deed, a Partner is entitled to interest on money advanced to the firm at
1. 4% p.a.
2. 8% p.a.
3. 6% p.a.
4. 10% p.a.
Correct Answer: 3
Q.61 When a new Partner is admitted to the Partnership Firm
1. Old Partnership is dissolved
2. Old Partnership Firm is dissolved
3. Both old Partnership and Firm are dissolved
4. Neither old Partnership nor the Firm is dissolved
Correct Answer: 1
Q.62 When a Partner is given Guarantee by the other Partners, loss on such guarantee will be borne by
1. Partnership Firm
2. All the other Partners
3. Partners who gave the guarantee
4. Partner will highest profit sharing ratio.
Correct Answer: 3
Q.63 Fluctuating Capital Account is credited with:
1. Interest on Capital
2. Profit of the year
3. Remuneration to the partners
4. All of these
Correct Answer: 4
Q.87 The document inviting offers from Public to subscribe for Shares or Debentures or Deposits of a body Corporate is a
1.Share Certificate
2.Stock invest
3.Fixed deposit receipt
4.Prospectus
Correct Answer: 4
Q.88 Declared dividend should be classified in the Balance as a
1. Provision
2. Current Liability
3. Reserve
4. Current Asset
Correct Answer: 2
Q.89 On the issue of Shares, the application money should not be less than
1) 2.5% of the nominal value of shares
2) 2.5% of the issue price of the shares
3) 5% of the nominal value of shares
4) 5% of the issue price of the shares
Correct Answer: 3
Q.90 When shares are issued to promoters for the services offered by them, the account that will be debited with the
nominal value of shares is
1. Preliminary expenses
2. Goodwill
3. Asset account
4. Share Capital
Correct Answer: 2
Q.95 Which of these items are shown in the Profit & Loss appropriation account
1. Provision for Bad debts
2. Provision for depreciation
3. Provision for bonus
4. Provision for dividend
Correct Answer: 4
Q.98 In the event of liquidation of the company, the debenture holders have prior right over
1. Principal amount
2. Interest
3. Both "a" & "b"
4. Either "a" & "b"
Correct Answer: 3
Q.102 In case a Public limited Company is required to refund the application money due to non subscription to the minimum limit,
the application money is to be refunded within ------days of Closure of issue
1. 45 days
2. 60 days
3. 42 days
4. 21 days
Correct Answer: 2
Q.104 The act of voluntary return of shares by shareholders for cancellation is called
1. Cancellation of shares
2. Return of shares
3. Surrender of shares
4. Refusal of shares
Correct Answer: 3
Q.109 Profit from the date of purchase of business to the date of incorporation of the company is called
1. Profit prior to incorporation
2. Pre-acquisition a/c
3. Prior period profits
4. Pre-launch profits
Correct Answer: 1
Q.114 Opening Capital Rs. 30,000 , Closing Capital Rs. 15,000 , Loss during the Year Rs. 8,000 , Drawings Rs.7,000.
Additional Capital introduced will be :
1. Nil
2. 8,000
3. 16,000
4. 23,000 .
Correct Answer: 1
Q.120 Interest on a term loan for the purchase of machinery where the Commercial production has not begun till the last
day of the accounting Year is :
1. Capital Expenditure
2. Revenue Expenditure
3. Deferred Revenue Expenditure
4. Prepaid Expenses
Correct Answer: 1
Q.121 Interest on a term loan for the purchase of machinery where the Commercial production has already begun
1. Capital Expenditure
2. Revenue Expenditure
3. Deferred Revenue Expenditure
4. Prepaid Expenses
Correct Answer: 2
Q.124 As per AS-2 , the historical cost of inventories should normally be determined by using ----1. FIFO and LIFO Method
2. LIFO and Weighted Average Cost Method
3. FIFO and Weighted Average Cost Method
4. FIFO and Simple Average Cost Method
Correct Answer: 3
Q.126 Stock lost due to inherent characteristics of the commodities is----1. Normal Loss
2. Abnormal Loss
3. Normal Gain
4. Abnormal Gain
Correct Answer: 1
Q.128 Provision is :
1. an appropriation out of profits
2. a charge against the profits
3. a reserve
4. None of these
Correct Answer: 2
Q.129 Under Permanence approach ---1. the most liquid assets are presented at the top of the Balance Sheet
2. the least urgent payments are presented at the bottom of the Balance sheet
3. the most urgent payments are presented at the top of the Balance sheet
4. the least liquid assets are presented at the top of the Balance Sheet
Correct Answer: 4
Q.130 Under the Liquidity approach ---1. the most liquid assets are presented at the bottom of the Balance Sheet
2. the least urgent payments are presented at the top of the Balance sheet
3. the most urgent payments are presented at the bottom of the Balance sheet
4. the least liquid assets are presented at the bottom of the Balance Sheet
Correct Answer: 4
Q.132 When depreciation is recorded by charging to Provision for Depreciation Account , the asset apears --1. at Original Cost
2. at Original Cost less depreciation
3. at market value
4. at realizable value
Correct Answer: 1
Q.137 In Memorandum Joint Venture Account Method , each Co-Venturers records ----1. all the Joint Venture Transactions
2. Common Joint Venture transactions
3. only those which are effected by him only
4. None of these
Correct Answer: 3
Q.139 When the bill is honoured at the maturity date, the drawee debits -----1. Drawer's Account
2. Bills Payable Account
3. Cash / Bank Account
4. Holder of Bill Account ( Banker / Endorsee )
Correct Answer: 2