MODEL TEST PAPERS

Common Proficiency Test

(CPT)

The Institute of Chartered Accountants of India

Board of Studies

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Published by Dr. T.P. Ghosh, Director of Studies, ICAI, C-1, Sector-1, NOIDA-201301 Typeset and designed at Board of Studies, The Institute of Chartered Accountants of India.

PREFACE Under the New Scheme of Education and Training, the simplified entry to the chartered accountancy course has been designed through Common Proficiency Test (CPT). It is an objective type test of 200 marks of four subjects, i.e. Accounting, Mercantile Laws, General Economics and Quantitative Aptitude with an objective to test basic knowledge in these subject areas. This test is of 200 marks. This test is divided into two sessions of two hours each with a break in between. CPT is an objective type test with negative marking. Subjects to be studied in CPT are as follows: SESSION – I (Two Sections – Two hours – 100 Marks) Section A: Fundamentals of Accounting (60 Marks) Section B: Mercantile Laws (40 Marks) SESSION – II (Two Sections – Two hours – 100 Marks) Section C: General Economics ( 50 Marks) Section D: Quantitative Aptitude ( 50 Marks) The CPT is treated as a single paper of 200 Marks. A student has to obtain 100 marks in aggregate to qualify CPT. The Board of Studies has prepared comprehensive study materials covering the above mentioned subjects. There are good numbers of objective type questions in the study materials which students should practice. In addition, this question bank is published to facilitate students to prepare for the examinations. This book contains 10 Model Test Papers comprising of 2000 objective type questions. Each Model test paper is divided into four sections. Section A relates to Fundamentals of Accounting carrying 60 marks. Section B relates to Mercantile Law carrying 40 marks. Sections C and D relate to General Economics and Quantitative aptitude carrying 50 marks each. All the papers have been carefully designed so as to expose students to all types of questions such as one line statement questions, fill in the blanks, numerical based questions, table based questions, paragraph based questions and diagram based questions. Students are advised to answer these each test paper under examination conditions. They should attempt Section A and Section B in first two hours and with a break; Section C and Section D should be attempted in next two hours. Then the answer sheet should be assessed consulting the answers given at the end of the Model Test Papers. They should deduct 0.25 marks for each wrong answer. The same procedure should be followed for all ten test papers. I am confident that students will be able to evaluate their performance by this process. I acknowledge contribution of the faculty members of the Board Studies, namely, Mrs. Prem J. Bhutani, Mrs. Seema Gupta, Mrs. Shilpa Agrawal, CA. Vikas Kumar, Ms. Srishti Gupta, Ms. Ginni Aggarwal in the preparation of these Model Test Papers. I also acknowledge the contributions made by Mr. P.N. Kapur who developed question bank of Accounting, Mr. R.K. Gupta and Dr. G.K. Pandey who developed question bank of Mercantile Laws, Dr. O.P. Shukla, Dr. G.P. Srivastava and Dr, Chamma Shukla who developed question bank of Economics and CA. Atul Mittal and Mr. G.P. Bhargava who developed question bank of Quantitative Aptitude.

Director of Studies

The Institute of Chartered Accountants of India

COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT/VOLUME - I
CONTENTS
S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11 Test Paper Denomination Model Test Paper – BOS/CPT-1/2006 Model Test Paper – BOS/CPT-2/2006 Model Test Paper – BOS/CPT-3/2006 Model Test Paper – BOS/CPT-4/2006 Model Test Paper – BOS/CPT-5/2006 Model Test Paper – BOS/CPT-6/2006 Model Test Paper – BOS/CPT-7/2006 Model Test Paper – BOS/CPT-8/2006 Model Test Paper – BOS/CPT-9/2006 Model Test Paper – BOS/CPT-10/2006 Answsers Page No. 1 – 41 42 – 84 85 – 126 127 – 169 170 – 211 212 – 254 255 – 297 298 –341 342 –383 384 – 425 426 – 442

S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11

Test Paper Denomination Model Test Paper – BOS/CPT-1/2007 Model Test Paper – BOS/CPT-2/2007 Model Test Paper – BOS/CPT-3/2007 Model Test Paper – BOS/CPT-4/2007 Model Test Paper – BOS/CPT-5/2007 Model Test Paper – BOS/CPT-6/2007 Model Test Paper – BOS/CPT-7/2007 Model Test Paper – BOS/CPT-8/2007 Model Test Paper – BOS/CPT-9/2007 Model Test Paper – BOS/CPT-10/2007 Answsers Recent Publications of Board of the Studies

Page No. 443 – 480 481 – 517 518 – 553 554 – 591 592 – 631 632 – 670 671 – 707 708 – 744 745 –782 783 – 821 822 – 837 838 – 839

BOARD OF STUDIES

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT-1/2006
Time : 4 hours The test is divided into four sections. Please follow the instructions given in each section carefully and answer the questions. Maximum Marks : 200

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)
(i) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 11 to 20 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer. Questions 23 to 60 are numerical based questions, which have answers as numerical values and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. RPC Ltd. follows the written down value method of depreciating machinery year after year due to (a) (b) (c) (d) Comparability. Convenience. Consistency. All of the above.

(iii)

(iv)

PART I
1.

2.

A change in accounting policy is justified (a) (b) (c) (d) To comply with accounting standard. To ensure more appropriate presentation of the financial statement of the enterprise. To comply with law. All of the above. All cash purchases. All credit purchases. Credit purchases of goods in trade. None of the above.

3.

Purchases book records: (a) (b) (c) (d)

4.

A Bank Reconciliation Statement is prepared to know the causes for the difference between: (a) (b) (c) (d) the balances as per cash column of Cash Book and the Pass Book. the balance as per bank column of Cash Book and the Pass Book. the balance as per bank column of Cash Book and balances as per cash column of Cash Book None of the above.

5.

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) (b) (c) (d) Previous year’s profit is overstated and current year’s profit is also overstated Previous year’s profit is understated and current year’s profit is overstated Previous year’s profit is understated and current year’s profit is also understated Previous year’s profit is overstated and current year’s profit is understated

6.

In the absence of any provision in the partnership agreement, profits and losses are shared (a) (b) (c) (d) In the ratio of capitals. Equally. In the ratio of loans given by them to the partnership firm. None of the above. Materiality.

7.

Fundamental accounting assumptions are (a)

2

(b) (c) (d) 8. (a) (b) (c) (d) 9. (a) (b) (c) (d) 10. (a) (b) (c) (d)

Business entity. Going concern. Dual aspect compensating errors; errors of commission; wrong balancing of an account; wrong totalling of an account Purchase of a goods Cost of repair Wages paid for installation of machinery Rent of a factory If del-creder’s commission is allowed, bad debt will not be recorded in the books of consignor If del-creder’s commission is allowed, bad debt will be debited in consignment account Del-creder’s commission is allowed by consignor to consignee Del-creder’s commission is generally relevant for credit sales

Which of the following errors are not revealed by the Trial Balance:

Which of the following are of capital nature?

Which of the following statement is not true:

PART II
11. Discount on issue of debentures is a __________ (a) (b) (c) (d) 12. (a) (b) (c) (d) Revenue loss to be charged in the year of issue Capital loss to be written off from capital reserve Capital loss to be written off over the tenure of the debentures Capital loss to be shown as goodwill Intangible asset Current asset Current liability Miscellaneous expenditure

Loss on issue of debentures is treated as ____________.

3

15. Accumulated Profits. Old Profit Sharing.13. New Profit Sharing. The parties to joint venture is called_________ (a) (b) (c) (d) 4 . Policy Value for the dead partner and Surrender Value for the rest. Consignor Consignee Debtors None Co-venturers Partners Principal & Agent Friends 17. (a) (b) (c) (d) 16. Surrender Value. Interest on capital will be paid to the partners if provided for in the agreement but only from________ (a) (b) (c) (d) Profits. Reserves. Goodwill. At the time of death of a partner. (a) (b) (c) (d) Policy Amount. Capital. The owner of the consignment stock is________ (a) (b) (c) (d) 18. Surrender Value for all the partners. Dividends are usually paid as a percentage of ______ (a) (b) (c) (d) Authorized share capital Net profit Paid-up capital Called-up capital 14. firm gets ________ from the insurance company against the Joint Life Policy taken jointly for all the partners. Equal. Profit or loss on revaluation is shared among the partners in _______ ratio.

which was registered in the year 2000. 1. While finalising the annual accounts.000 respectively. Market value of the machine was estimated at Rs. Cost concept Matching concept Realisation concept Periodicity concept.000 on 31st March 2006.00.19. 2005. since such change would result in the additional depreciation of Rs. Transportation and installation charges were incurred amounting Rs. Which of the following concepts was violated by A? (a) (b) (c) (d) 22. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The purpose of accommodation bill is_______ (a) (b) (c) (d) To finance actual purchase or sale of goods To facilitate trade transmission When both parties are in need of funds None of the above 20. Dismantling charges of the old machine in place of which new machine was purchased amounted Rs.20. The number of production or similar units expected to be obtained from the use of an asset by an enterprise is called as _________ (a) (b) (c) (d) Unit life Useful life Production life Expected life PART III 21. 10.20. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method. The objection of the auditor is justified because (a) (b) (c) Change in the method of depreciation should be done only with the consent of the auditor Depreciation method can be changed only from WDV to SLM and not vice versa 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 5 .000 in his books. Mr. has been following Straight Line Method (SLM) of depreciation. 4. 1. A purchased a machinery costing Rs. 1. M/s ABC Brothers.000 and Rs. The auditor raised objection to this change in the method of depreciation. A values the machinery at Rs.000 on 1st October. 10.000.

500 Rs. 1/10th of the goods were lost in transit. If Cost of goods sold is Rs. Annual depreciation under SLM will be (a) (b) (c) (d) Rs.700.25.000 during the year. 12.700 Rs. 42.000 Rs.000 to Y of Mumbai at cost + 25%. A sum of Rs. Method of depreciation cannot be changed under any circumstances.6. Sales during the year Rs. A new firm commenced business on 1st January. 36.000 27.900 Rs. Opening stock Rs. He pays expenses amounting to Rs 1000. The net loss on account of abnormal loss is (a) (b) (c) (d) Rs.80. Consignor’s expenses Rs 5000. 2006 and purchased goods costing Rs.000 was spent on freight inwards. What is the gross profit earned by the firm? (a) (b) (c) (d) Rs.000 Rs.500 Rs.000. A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. 30. Original cost = Rs 1.000 Rs. V incurs further expenses on carriage Rs 1000.21.15.800 and Closing stock Rs. The profit on joint venture is 6 .20.500 Rs.000.27. 38.000 Rs.000 Rs.500 Rs. Insurance claim received Rs 3000.000. X of Kolkata sends out goods costing 300. 90.900. He also takes over goods to the value of Rs 2000. 6. Salvage value = 6.30.26. Useful Life = 6 years.5. Then the amount of purchase will be (a) (b) (c) (d) 24.80.000 Rs. Rs. 1.statement (d) PART IV 23. At the end of the year the cost of goods still unsold was Rs.80.27.20. A provides biscuits from stock Rs 10000.74.74.14. He receives cash for sales Rs 15000.000.000.000 26.000 25.

A and B are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs.1.a. C brings Rs. 2:1.e. 3. Profits apportioned among A and B is (a) (b) (c) (d) 4. 1. 48.100 19.700. 80. They are entitled to 9% p.680 and 3. 3. New profit sharing ratio between A. The cash book showed an overdraft of Rs. The stock on approval will be shown in the balance sheet at Rs. B returned goods costing Rs.500 at a profit of 25% on sale to B on sale or return basis. 4.(a) (b) (c) (d) 28. on 31st December.700. 31. 800.000 20.900 20. (a) (b) (c) (d) 2.000.500. The scarificing ratio among A:B will be (a) (b) (c) (d) 3:1. 70. A sent some goods costing Rs. 2005. The bill is discounted with banker at a charge of Rs 100.800.120.800 29.000 respectively.000 and Rs.6000 Rs.800 and 3. 50.3000 Rs.05. 2.000 cash and Rs. 4:7.000 for 3 months on 1. A & B are partners sharing profits and losses in the ratio 5:3. 32. for dishonour. (a) (b) (c) (d) 19.000 against goodwill.000 and 2. On admission.5000 Rs. the remaining goods were neither returned nor were approved by him. Rs. At the end of the accounting period i.500. During the year firm earned Rs. interest on capital before distributing the profits. In the books of X.000. but the pass book made up to the 7 . 2. At maturity the bill return dishonoured. the bank account will be credited by Rs.3500 X draws a bill on Y for Rs 20.700 less 25% of 2. 30. 5:4.800 after allowing interest on capital. B and C are 7:5:4. None of the above. 5. 7.

Rs. The balance as per the cash book will be (a) (b) (c) (d) 33.400 paid into account had not been cleared. 1. Rs. 50 and Rs.000 35.625. 500 is incurred to get the car registered in owner’s name and Rs. the debit side to be Rs. 1. The amount debited to car account will be (a) (b) (c) (d) Rs.000 2.500. No. Rs. 1.500 2. 12. 10.500. 2. If a purchase return of Rs.000 is spent on its repairs. the amount of Rs.100. 4.375. the credit side to be Rs. 34.700. 3.500 Credit (Rs. 2.500 12. Rs.000.same date showed that cheques of Rs. the debit side to be Rs.000.Rs. The accountant of the firm M/s ABC is unable to tally the following trial balance. the total of the trial balance would show (a) (b) (c) (d) the credit side to be Rs.168 more than credit side. 10. The above difference in trial balance is due to (a) (b) (c) (d) wrong placing of sales account wrong placing of salaries account wrong placing of miscellaneous expenses account Wrong placing of all accounts 8 . S. Rs.) 10. 1.) 15. 125 respectively had not been presented for payments. 1. and the cheque of Rs.84 more than credit side.84 has been wrongly posted to the debit of the sales return account. 11.168 more than debit side.84 more than debit side. A second hand car is purchased for Rs.200 is paid as dealer’s commission. 1. Account heads Sales Purchases Miscellaneous expenses Salaries Total Debit (Rs. but had been correctly entered in the suppliers account. Rs. 100. 10.175. Rs.500 17. Rs.

D died on 30th June 2006. The amount of loss on redemption of debentures to be written off every year will be (a) (b) (c) (d) Rs.000 Rs.000.000 Rs.40.10 each at par. J and D are the partners sharing profits in the ratio 7:5:4.20. 8% debentures of Rs. X sent out certain goods to Y of Delhi. The called-up value per share was Rs.000 Rs.100 each at par.000.10. 82.600.2.125.500 Equity Shares of Rs.8. Rs.9. If the profits are Rs.600.10 each (which were issued at par) held by Mr. 1/10 of the goods were lost in transit. 37.8. R. the amount debited to share capital will be (a) (b) (c) (d) Rs.800. 38. Rs.4 per share.120. 24. W Ltd.000.000 9 . Rs. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits.10. John for non-payment of allotment money of Rs. At the time of redemption of Preference Shares.000 shares of Rs.18. issued 2. 10% Preference shares of Rs.700.000 Rs. which are redeemable after 5 years at a premium of 20%.000 Rs. Invoice value of goods lost Rs 12.2. Rs. Rs. Invoice value of goods sent out on consignment will be: (a) (b) Rs.800. For the purpose of redemption.100 each at a premium of 20% per share. S Ltd.900. 20.36. 29. 28. the company issued 1.700. which are redeemable at a premium of 10%. D’s share of goodwill will be (a) (b) (c) (d) Rs.000 39.20.40. Rs.50.00. 27.000 40.000 Rs.2. issued 20. A company forfeited 2. the amount to be transferred by the company to the Capital Redemption Reserve Account will be (a) (b) (c) (d) Rs.000.000 and Rs. 28.000 Rs. 27.500. On forfeiture.000 Rs.000 Rs. 26.000 Rs.

50. 9.000.(c) (d) 41. C is admitted on bringing Rs. Rs.60 Rs.60.000 for B and Rs.000 for A.2.1. 25.2. What is the share of C in the JLP amount? (a) (b) (c) (d) Rs.3.250.54 43. They share profits and losses equally. 11. issued shares of Rs.000 T Ltd. 51. Rs. Rs.000 Rs. Rs. 25. A. 20. What will be value of goodwill in the books after the admission 10 .60. The consideration was paid by issue of 12% Debentures of Rs.000 for C. 20. 50.90 Rs.000 Rs.000 Rs. 18. Rs.2. 51.2 on application but did not pay the allotment money of Rs.000 is revalued as Rs. 15.500.000.000. 12. Rs. 30.81 Rs. B Ltd. Mr.000. A and B are partners sharing profits and losses in the ratio of 3:2 (A’s Capital is Rs. purchased land and building from U Ltd.000 and Rs.000).2. 14.100. 45.100 each at a discount of 20%. for a book value of Rs.000.000 respectively. A and B are partners with the capital Rs. How much C should bring in towards his capital? (a) (b) (c) (d) Rs.00. 44.000 and B’s Capital is Rs.10 each at a discount of 10%.000. Goodwill in Balance sheet of Rs.000 42.000 as capital only and nothing was bought against goodwill. Rs.000. 35. They admitted C agreed to give 1/5th share of profits to him.000 Rs.000. 20. B and C are partners sharing profits and losses in the ratio 9:4:3. They took joint life policy of Rs.40.140. 40. The debentures account will be credited with (a) (b) (c) (d) Rs.50. Rs. If the company forfeited his entire shares. the forfeiture account will be credited by (a) (b) (c) (d) Rs. C purchased 30 shares and paid Rs.

A purchased Typewriter costing Rs 100000. 80.000.800. Rs. Rs.000 X.000. 400 for Z. 2. 400 for X. Y and Z respectively. Rs.000. 48. 4.000. 6. A merchant sends out his goods casually to his dealers on approval basis. 15. (a) (b) (c) (d) Rs.000. At the time of division of profit for the year there was dispute between the partners. Rs. The amount of stock on approval will be amounting (a) (b) (c) (d) Rs.400 to each partner.400 for X and Z & Y will take home Rs. None of the above. Calculate the amount payable to X. it was found that 100 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price.000 at 2% discount with the help of B’s acceptance and balance in cash. All such transactions are. A and B enter into a joint venture for purchase and sale of Type-writer. 14. 20. Rs. There was no agreement on this point.000 to each partner.000. Rs. Profits before interest on partner’s capital was Rs. On 31-12-2005. A wants to endorse it to C in settlement of Rs 35.16. 15. 125000 11 .000 and Y determined interest @ 24% p. Loss of Rs.000. A draws a bill on B for Rs 30. 55. Rs.000.of C? (a) (b) (c) (d) 46.200 for Y and Rs. 5. B sold it at 20% margin on selling price. Repairing expenses Rs 10000. Rs. 20. Rs. printing expenses Rs 10000. The sales value will be: (a) Rs. however. Y and Z are partners in a firm. How much cash A will pay to B? (a) (b) (c) (d) 4300 4000 4100 5000 49.a. recorded as actual sales and are passed through the sales book. 35. on his loan of Rs. 47. The sale price was made at cost plus 25%. 2.

O Ltd.200.000 Rs. 45. 140000 P of Faridabad sent out goods costing Rs.000 Rs.300. Rent paid on 1 October. 1.000.60. 1. 53. The amount of sale value will be: (a) (b) (c) (d) Rs. maintains the inventory records under perpetual system of inventory.600. H Ltd. 100000 Rs.00.36. 52.43.00.000 to Y of Delhi at cost + 331/3 %. 150000 Rs.000 Rs. as shown in the profit and loss account for the year ended 31 December 2005. 2005 was Rs. 2004 for the year to 30 September.54.200 and rent paid on 1 October.60. 54.000 Rs. 1. the amount of depreciation charged during the year 2004-05 was (a) (b) (c) (d) Rs. Rs. Consider the 12 .000 Rs 10.200 Rs. would be: (a) (b) (c) (d) Rs.500. 2005 for the year to 30 September.500 Rs 13.000 51.500. 2000 for Rs. Rs. purchased a machinery on April 01. Closing stock is Rs 3. Rs. 1.000. 1. 2/3rd of the goods are sold at 20% above IP.1. Rs.20.000 Rs. 2006 was Rs. 1/10th of goods were lost in transit. 1.000 more than opening stock then the value of closing stock will be (a) (b) (c) (d) Rs 12. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value.000 Rs 24.600. Rent payable.80. If the company follows sum-of-the-years’-digits method of depreciation.(b) (c) (d) 50.3. If Average Stock = Rs 12.000.

50. the amount to be expensed is (a) (b) (c) (d) Rs.000 more than the credit side.following data pertaining to inventory of O Ltd. the Rotary makes a partial payment of Rs.600.450. whitewash expenses are Rs.000. 1. Debit balance as per Cash Book of ABC Enterprises as on 31. 1 Mar.2. 1.1.681 Rs. the total of the (a) (b) (c) (d) trial balance would show the debit side to be Rs. If a purchase return of Rs. 57. the credit side of the trial balance will be Rs.2006 is Rs. 100 and Cheques issued but not presented of Rs.) 400 450 460 If the company sold 32 units on March 24. but has been correctly entered in the suppliers’ account. 1.000. 49.1.000. 150.3.800 Rs.1.000 more than the debit. 50 on behalf of ABC Enterprises.5. Rs. 2005.Cheques deposited but not cleared amounts to Rs.000. 5.000 has been wrongly posted to the debit of the sales returns account.2100 to Sunset Tours. cost of extension of building is Rs.000.000 more than the credit trial balance would show the credit side to be Rs. The journal entry made 13 . Sunset Tours has a Rs. Balance as per pass book should be (a) (b) (c) (d) 1. 25.000 and cost of improvement in electrical wiring system is Rs.000.850.000 more than the debit side.200 Rs.3. Rs.000. If repair cost is Rs. The bank allowed interest amounting Rs.5. 44. held for the month of March 2005: Date Mar.2. On January 20. 19. 1.500.99. Rs. 56. closing inventory under FIFO method is (a) (b) (c) (d) 55. the debit side of the trial balance will be Rs.950. 6 Particulars Opening Inventory Purchases Purchases Quantity 15 20 10 Cost Per unit (Rs. 58.500 account receivable from Mohan. 4 Mar. 50 and collected dividend Rs.5.650. 2. 30.5. 2. Rs.

On forfeiture.000 and Rs.1.100.10. (a) (b) (c) (d) Rs. goodwill was valued as Rs. They will not contribute any thing.1. Information is insufficient for any comment. A company forfeited 2. The called-up value per share was Rs. 30.2.000. 10. A debit to the cash account of Rs. A credit to the cash received account of Rs.000 Rs.10 each (which were issued at par) held by Mr.000 and Rs. 8.000 Rs.400. A credit to the Accounts receivable account of Rs.4 per share.100. A. John for non-payment of allotment money of Rs.000 shares of Rs. Find the contribution of A and C to compensate B.000 Rs.000.on January 20 by Sunset Tours to record this transaction includes: (a) (b) (c) (d) 59.2.400. Rs. 20.000.18. A debit to the Accounts receivable account of Rs. 4. B and C are partners sharing profits in the ratio 2:2:1. 60.2. the amount debited to share capital = ? (a) (b) (c) (d) Rs.000. 14 . On retirement of B.9.8.

Arises after he attains majority age. Consideration must result in a benefit to both parties.SECTION – B : MERCANTILE LAWS (40 MARKS) (i) (ii) Questions 61 to 79 have only one correct answer and carry + 1mark each for correct answer and – 0. 15 .25 mark for each wrong answer. Compensation for involuntary services. (a) (b) (c) (d) 63. Is against only minor’s property.25 mark for each wrong answer. Be communicated to the person to whom it is made. Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. Consideration must be something. Which of the following statement is true? Which of the following is not an exception to the rule – No Consideration. No Contract? A minor’s liability for ‘necessaries’ supplied to him. An agreement is void if it is opposed to public policy. Does not arise at all. (a) (b) (c) (d) 65. Which of the following is false? An offer to be valid must: (a) (b) (c) (d) 62. Past consideration is no consideration in India. Intend to create legal relations. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. Love & Affection. Gift. (a) (b) (c) (d) 64. Have certain & unambiguous terms. Contain a term the non-compliance of which would amount to acceptance. Arises if minor gives a promise for it. which a promisor is not already bound to do. Contract of Agency.25 mark for each wrong answer. Which of the following is not covered by heads of public policy? (a) Trading with an enemy. (iii) PART I 61. Consideration must be adequate.

should be performed by A and B alone. actionable claims.(b) (c) (d) 66. Legal representatives of promisor. Nominal damages. Promisor alone. stocks and shares. Here. Trafficking in public offices. All of these. Generally. B and C jointly promised to pay Rs. the contract (a) (b) (c) (d) becomes void on C’s death. Marriage brokerage contracts.000 to D. Which of the following is not an implied condition in a contract of sale? (a) 16 . 60. Special damages. Agent of the promisor. Remote damages. B and D. Contracts to do impossible acts. (a) (b) (c) (d) 67. Before performance of the contract. Ordinary damages. The term “goods” under Sale of Goods Act. C dies. which of the following damages are not recoverable? (a) (b) (c) (d) 69. Condition as to title. mistake of fact mistake of Indian law fraud misrepresentation goodwill. Which of the following persons can perform the contract? A. A mistake as to a law not in force in India has the same effect as: (a) (b) (c) (d) 70. 1930 does not include (a) (b) (c) (d) 71. should be performed by A and B along with C’s legal representatives. 68. should be renewed between A. harvested crops.

raise money on the security of goods. Condition as to free from encumbrance. (a) (b) (c) (d) 73.(b) (c) (d) 72. Entitled to share in proportion to their ages. Not entitled to share profits Entitled to share in capital ratio. Condition as to sample. Takes part in the business of the firm Which of the following is not a form of delivery? Mercantile Agent is having an authority to Doctrine of Caveat Emptor means The most important element in partnership is: In the absence of agreement to the contrary all partners are: Active partner is one who: 17 . (a) (b) (c) (d) 76. Business Sharing of Profits Agreement Business to be carried on by all or any of them acting for all. sell or buy goods. Structured delivery. Entitled to share profits equally. (a) (b) (c) (d) 74. any of the above. (a) Condition as to description. (a) (b) (c) (d) 75. none of the above. let the seller beware. Symbolic delivery. let the buyer beware. Actual delivery. (a) (b) (c) (d) 77. sell or consign goods. let the creditor beware. Constructive delivery.

The threat to commit suicide amounts to ___________ (a) 18 . Illegal Contract. Void Contract. Void ab initio Voidable. Ordinarily. Voidable. Void. Valid. the contract is _____________ (a) (b) (c) (d) 82. is not true: An agreement which is enforceable by law at the option of one or more of the parties thereon but not at the option of the other or others is a ____________ (a) (b) (c) (d) Valid Contract. Valid. Voidable Contract. about the registration of firm. 81. It may be done before filing a suit against third party. It may be done at the time of formation. Illegal. Coercion. Actively participates in co-curricular activities Actively shares the profits Makes a show of authority Accounts are settled Partners dues are paid off Public notice is given The registrar strikes off the name It must be done at the time of its formation.(b) (c) (d) 78. (a) (b) (c) (d) 79. It may be done at any time after its formation. When the consent of a party is not free. (a) (b) (c) (d) PART II 80. On dissolution the partners remain liable to till Which of the following statements. Unlawful. a minor’s agreement is ____________ (a) (b) (c) (d) 83.

and A’s consent was obtained by coercion. is _____________ A contingent contract is ____________ A agrees to sell his car worth Rs. Voidable.(b) (c) (d) 84.000 only. the agreement is __________ (a) (b) (c) (d) void valid voidable unlawful 87. Void Voidable Valid Illegal An agreement the object or consideration of which is unlawful. Illegal. Fraud. 20. Contingent. Undue Influence. A contract for the sale of “future goods” is __________ (a) . (a) (b) (c) (d) 85. A agrees to pay Rs. Void. Here. Misrepresentation. (a) (b) (c) (d) 86. 5 lakhs to B if he (B) procures an employment for A in Income Tax Department.000 to B for Rs. sale 19 88. Void. Agreement-the meaning of which is uncertain is ________ (a) (b) (c) (d) 89. Valid. Voidable. Valid. This agreement is _________ (a) (b) (c) (d) void valid voidable contingent. 100.

A stipulation which is collateral to the main purpose of the contract. none of the above. amortization. Barter. Goods which are in existence at the time of the Contract of Sale is known as _________ (a) (b) (c) (d) present Goods. existing Goods. specific Goods. If A agrees to deliver 100 kg of sugar to B in exchange of 15 mts of cloth. An auction sale is complete on the __________ (a) (b) (c) (d) 94. Sale on Approval. is known as __________ (a) (b) (c) (d) conditions.(b) (c) (d) 90. A partner can retire on_____________ (a) (b) . guarantee. agreement to sell. 93. then it is __________ (a) (b) (c) (d) Contract of sale. delivery of goods payment of price fall of hammer none of the above. void. Reaching the age of superannuation On the balance in the capital account reaching a certain amount 20 95. 92. gives the buyer only a right to claim damages. hire-purchase contract. 91. warranty. Agreement to sell. storage. none of these. and if proves false. Selection of goods with the intention of using them in performance of the contract and with the mutual consent of the seller and the buyer is known as __________ (a) (b) (c) (d) distribution appropriation.

The contract is void as it is opposed to public policy and G cannot recover. 100.00. K was injured while opening the tin. A is liable for the damages. Death of partner has the effect of____________ Registration of a firm is____________ The reconstitution of the firm takes place in case of __________ G paid Rs. A has no duty to disclose the facts to K. G sued H for recovery of the amount. G can recover the amount with interest.00.000 to H to influence the head of the Government Organisation in order to provide him some employment. Which of the following is correct? (a) (b) (c) (d) The contract is valid and G can recover the amount from H.1. The buyer has the responsibility to enquire about all the things before purchasing the goods. (a) (b) (c) (d) 97.000 and damages. Compulsory Optional Occasional None of the above Admission of a partner Retirement of a partner Expulsion or death of a partner All of the above. (a) (b) (c) (d) 98. On his failure to provide the job. G can recover the amount of Rs.(c) (d) 96. A sold a tin of disinfectant powder to K without warning knowing fully that if the tin was not opened with care. 21 . (a) (b) (c) (d) PART III 99.1. Which of the following statement(s) is/are correct? (a) (b) (c) (d) A is not liable to K under the Doctrine of caveat emptor. In accordance with the Partnership Deed On the condition of his nominee becoming a partner Dissolving the firm Result in continuance of the business of the firm His heirs joining the firm Computation of profits upto the date of death. it will likely to cause injury.

Who expressed the view that “Economics should be neutral between ends”? (a) (b) (c) (d) (a) (b) (c) (d) 103.25 mark for each wrong answer.SECTION – C : GENERAL ECONOMICS (50 MARKS) (i) (ii) (iii) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. MU y Py 102. Tea and coffee. MU x Px > .25 mark for each wrong answer. Which of the following pairs of goods is an example of substitutes? 104. Shirt and trousers.25 mark for each wrong answer. Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0. We will never be faced with the need to make choices. We must develop ways to decrease our individual wants. Questions 117 to 132 are Fill in the blanks type and carry + 1 mark for each correct answer and -0. Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0. Tea and sugar.25 mark for each wrong answer. Robbins Marshall Pigou Adam Smith. The consumer is in equilibrium when the following condition is satisfied: (a) 22 . (iv) PART I 101 What implication does resource scarcity have for the satisfaction of wants? (a) (b) (c) (d) Not all wants can be satisfied. The discovery of new natural resources is necessary to increase our ability to satisfy wants. Pen and ink.

the tractor used by the farmer in planting and cultivating not only wheat but also corn and barley. as long as all inputs are fixed. MU y Py MU x Px = . MU y Py None of the above. as long as at least one input is fixed. Which of the following best describes this smallness? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) The individual firm must have fewer than 10 employees. The individual firm faces a downward-sloping demand curve. average variable cost equals price at the profit-maximizing level of output. marginal cost equals price at the profit-maximizing level of output. are said to be “small” relative to the market. 106.(b) (c) (d) 105. i.. In the production of wheat. 23 108. the number of hours that the farmer spends cultivating the wheat fields.e. the short run is best described as lasting 107. Which of the following statements is correct? . The foreign trade policy post Independence allowed free trade of all goods and services. MU x Px < . Price-taking firms. A firm encounters its “shutdown point” when: 109. Monetary policy post Independence sought to keep the CRR at a very low level. The public sector was given a dominant position in the newly Independent India. The individual firm is unable to affect market price through its output decisions. average total cost equals price at the profit-maximizing level of output. In describing a given production technology.20 lakh. up to five years from now. average fixed cost equals price at the profit-maximizing level of output. The individual firm has assets of less than Rs. firms that operate in a perfectly competitive market. all of the following are variable factors that are used by the farmer except: (a) (b) (c) (d) (a) (b) (c) (d) the seed and fertilizer used when the crop is planted the field that has been cleared of trees and in which the crop is planted. up to six months from now.

1991: 24 . Find the tax which is direct tax among the following: 115. we mainly use the concept of relative poverty for measuring poverty. poor returns on government investments. The industrial sector faced the process of retrogression and deceleration during 114. In India. high levels of government expenditures. the public sector has been stripped off all its power. The focus will be on strategic high tech and essential infrastructure industries. When poverty is related to the distribution of income or consumption expenditure. None of the above.(d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) None of the above. Personal income tax.1995 1965 -1980. the public sector has been given the commanding heights of the economy. insufficient revenues. As a result of the New Industrial Policy. the public sector’s portfolio will be reviewed with greater realism. Excise duty Sales tax Service tax. all of the above. First Second Third Fourth Gini coefficients are often used for measuring poverty in relative sense. Which is of the following statements is correct? 113. 1950-1965 1990-2005 1980. it is absolute poverty. What is India’s rank in world population? 112. The unsustainable levels of government deficits in the late 80’s can be attributed to: 111. 110.

121. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is --------(a) (b) (c) (d) (a) (b) zero. CRR should be increased and Bank rate should be decreased. Consumer surplus means -------------------------------------------. Under --------------------. 118. the different between the maximum amount a person is willing to pay for a good and its market price. infinite.(d) (a) (b) (c) (d) the public sector’s management has been passed over to the private sector. CRR should be reduced and Bank rate should be reduced. 116. The average product of labour is maximized when marginal product of labour ------------. equals the average product of labour. CRR should be reduced and Bank rate should be increased. 120.market condition. the area inside the budget line. 25 . Consumer goods. greater than zero but less than one. equal to one. In order to control credit: PART II 117. firms make normal profits in the long run. Larger production of ----------------------goods would lead to higher production in future. Public goods. none of the above. 119. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Perfect Competition Monopoly Oligopoly None of the above. the area between the average revenue and marginal revenue curves. Agricultural goods. CRR should be increased and Bank rate should be increased. equals zero. Capital goods.

(a) (b) 5 per cent 8 percent 26 . 127. supply. In a free market economy. when consumers increase their purchase of a good and the level of ________________exceeds ______________ then prices tend to rise. The Tenth Plan aims at achieving a growth rate of _______________ in the industrial sector. we know that the firms are earning just normal profits. 124. (a) (b) (c) (d) AC = AR MC = MR MC = AC AR = MR 123. 126. supply. About ________ percent of the sick units in India are small units.(c) (d) is maximized. India has the _____________ largest scientific and technical manpower in the world. ____________ is the apex bank for agriculture credit. demand prices. supply. RBI SIDBI NABARD ICICI fifth tenth eighth second 10 percent 5 percent 30 percent 98 percent. 122. demand profits. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) demand. 125. When ______________________________ . none of the above.

225 27 . Service sector accounted for nearly ______________ percent of exports (2004-05).2000. disguised. Rs.(c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 10 percent 6 percent 23 percent 45 percent 80 percent 50 percent 10 percent 20 percent 35 percent 80 percent 128. 130 A situation of employment in which a person is apparently employed but his contribution to the production is almost nil is called ________ unemployment. a person is said to be below poverty line. According to the Planning Commission.per capita per month for rural areas. Nearly __________ percent of working population is engaged in the service sector. Rs.3000 Rs.1000 Rs. (a) (b) (c) (d) 131. (a) (b) (c) (d) Cyclical. Frictional. Rs. chronic. ______________ unemployment may result when some workers are temporarily out of work while changing job. if he is earning less than ___________ per capita per month for urban areas and less than -----------.500. cyclical.240. (a) (b) (c) (d) Rs.200 Rs. 129. structural.265. seasonal 132. Rs. Voluntary.

By the end of the reconstruction. Rotterdam has shifted to a lower PPC. An outward shift of the PPC of Rotterdam. It became more efficient than it was before the destruction. docks and cargo handling technology. A movement from point U to point C.PART III Read the following paragraph and answer questions 133-134. 134. 28 . a beautiful city in Holland. 135. The above destruction would mean: (a) (b) (c) (d) A complete wipe off of the Production Possibilities Curve (PPC) of Rotterdam. A downward movement on the same PPC of Rotterdam. Nearly 75. Hitler’s air force bombed Rotterdam. ships were loading and unloading faster and at lower cost than any where in the world. Which of the following represents the concept of trade-offs? (a) (b) (c) (d) A movement from point A to point B. If immediately after the war. Rotterdam has shifted to a higher PPC. An inward shift of the PPC of Rotterdam. Twenty five thousand homes.000 people became homeless and 1000 people died. In 1940. 1200 factories. Point W. This means: (a) (b) (c) (d) Rotterdam has come back to its original PPC. 69 schools and 13 hospitals were destroyed. Point U. Nothing can be said. Read the following figure and answer questions 135-137. 35 % of the port was gutted by the German army. Rotterdam rebuilt its port with the help of most up to date cranes. 133.

U W PART IV Use Table 1 to answer questions 138-140.240 1 Rs.410 3 Rs.120 Rs. Which of the following would not move the PPF for this economy closer to point W? (a) (b) (c) (d) A decrease in the amount of unemployed labour resources.133 Rs. An increase in the population growth rate. Output (O) Total Cost (TC): 0 Rs.136.80 Rs. The marginal cost of the sixth unit of output is: 140. A shift in preferences toward greater capital formation.85 Rs. Diminishing marginal returns starts to occur between units: . Unemployment or underemployment of one or more resources is illustrated by production at point: (a) (b) (c) (d) A C.330 2 Rs.480 4 Rs.690 138.610 6 Rs.540 5 Rs.75 Rs. 137.450 2 and 3 3 and 4 4 and 5 5 and 6 29 139.205 Rs.80 Rs. An improvement in the overall level of technology. The average fixed cost of 2 units of output is : (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Rs.

Suppose a department store has a sale on its silverware. the opportunity cost of Good A: (a) (b) (c) (d) increases as more of good A is produced. Given the data in Table 2.50 30 . E and F. 143.5 units of A. what is the price elasticity of demand for silverware? (a) (b) (c) (d) .000 place-settings. According to Table 2. is always equal to one unit of B.125 units of A.200 and the quantity demanded increases from 3. 300 to Rs.000 place-settings to 5. the opportunity cost of increasing Good A’s production from 2 to 4 units is equal to: (a) (b) (c) (d) 10 units of B 14 units of B 24 units of B 2 units of B.25 1. 144. If the price of a place-setting is reduced from Rs. decreases as more of good A is produced. 1 unit of A. the opportunity cost of increasing one unit of Good B from 10 units to 18 units is: (a) (b) (c) (d) 3 units of A. 142. as one moves from successively from point A to point B. C.Use Table 2 to answer questions 141-143 Table 2: Production Possibilities Production A possibilities Good A Good B 0 30 B 1 28 C 2 24 D 3 18 E 4 10 F 5 0 141.0 1. 0. 0. According to Table 2.8 1. remains constant. D.

145.100.5 2. implicit costs are Rs.30.100.100.25 1. the individual is earning an economic profit of Rs.150 to Rs.75.000 a year. What is the price elasticity of demand for CDs? (a) (b) (c) (d) .300 CDs.25. A discount store has a special offer on CDs. If the owner could work for another company for Rs.100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night.8 1.000.000 and is incurring explicit costs of Rs.000.000. What is the total output when 2 hours of labour are employed? (a) (b) (c) (d) 80 100 180 200 31 .000. Suppose that a sole proprietorship is earning total revenues of Rs.50 146. Suppose the store manager observes that the quantity demanded increases from 700 CDs to 1.0 147. we would conclude that: (a) (b) (c) (d) the firm is incurring an economic loss.0 1.25. Table 3 Hours of Labour 0 1 2 3 Total Output --100 ________ 240 Marginal Product --100 80 ________ 148. the total economic costs are Rs. It reduces their price from Rs. If the local pizzeria raises the price of a medium pizza from Rs.67 1. Use Table 3 to answer questions 148-150.0 3. the price elasticity of demand for pizzas is: (a) (b) (c) (d) .60 to Rs.

149. What is the average product of the first three hours of labour? 32 . What is the marginal product of the third hour of labour? (a) (b) (c) (d) (a) (b) (c) (d) 60 80 100 240 60 80 100 240 150.

(iii) PART I 151. which have answers as numerical value and carry + 1 mark each for correct answer and – 0. then P(A ∩ B) Equals to P(A) + P(B). Both (a) and (b).25 mark for each wrong answer. Questions 171 to 200 are numerical based questions. B : Peter is a voter of Kolkata. If two events A and B are independent. Mean – Mode Median – Mode Mean – Median Mean – Median = 3 (Mean – Median) = 3 (Mean– Median) = 3 (Mean – Mode) = 3 (Median – Mode) 154. The population is not much heterogeneous. Which of the following statements is untrue for tabulation? Statistical analysis of data requires tabulation. A : Raju was born in India. It facilitates comparison between rows and not columns. A : Peter is under 15 years of age. For a moderately skewed distribution. Simple random sampling is very effective if (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) The population is not very large.25 mark for each wrong answer. 33 . B : He studies Philosophy. The population is partitioned into several sections. 152. B : He is a fine Engineer. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. Complicated data can be presented. A : The student reads in a school.SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0. which of he following relationship holds? 155. B : She is a good singer. A : Ruma is 16 years old. Which of the following pairs of events are mutually exclusive? 153.25 mark for each wrong answer. Diagrammatic representation of data requires tabulation.

Normally.square 34 . Both (a) and (b). Personal interview. Annuity. Equals to P(A) × P(B/A).5. Establishing a mathematical relationship between two variables. Predicting the value of the dependent variable for a given value of the independent variable. Usually mean is the best measure of central tendency. GM is the best measure of central tendency. Telephone interview. The best method to collect data in case of natural calamity is 159. Usually mode is the best measure of central tendency. Measuring the extent of association between two variables. Indirect interview.(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Equals to P(A) × P(B). Both (a) and (c). Mean and standard deviation are equal. Which of the following statements is true? PART II 161. Perpetuity. 158. (a) Chi. Mailed questionnaire method. Annuity due. Equals to P(B) × P(A/B). Mean and variance are equal. Sequence of periodic payments/ receipts regularly over a period of time is called 160. Annuity regular. For a Poisson distribution. Usually median is the best measure of central tendency. Standard deviation and variance are equal. 156. Regression analysis is concerned with 157. _________ distribution is symmetrical when p = 0.

If _______.5:1 384 834 438 854 166. 24……is_______. The 7th term of the series 6. ________ is the mean proportional between 12x2 and 27y2. 165. The two variables are known to be_______ if the movement on the part of one variable does not produce any movement of the other variable in a particular direction. the roots are real and equal. The letters of the words CALCUTTA and AMERICA are arranged in all possible ways. log 32/4 is equal to ________. (a) Correlated 35 .(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Population Poisson Binomial log 32/log4 log 32 – log4 23 None of these b 2 – 4ac= 0 b 2 – 4ac> 0 b 2 – 4ac<0 b 2 – 4ac ≤ 0 18xy 81 xy 8 xy 19. 167. The ratio of the number of these arrangement is _______. 163. 164.5 xy 162. 12. (a) (b) (c) (d) (a) (b) (c) (d) 1: 2 2:1 1:1 1.

a. 170. x→ −2 lim (a) (b) (c) (d) 172. The derivative of y = (a) (b) (c) 1/ –1/ 1/2 x + 1 is x+1 x+1 x+1 36 . If two letters are taken at random from the word HOME . When the data are classified in respect of successive time points. (a) (b) (c) (d) (a) (b) (c) (d) 1/6 1/2 1/3 1/4 15 years 3 months 14 years 2 months 14 years 3 months 15 years 2 months 169.(b) (c) (d) Positive correlated Negative correlated Uncorrelated 168. In ________ years a sum will double at 5% p. _________ is the probability that none of the letters would be vowels. they are known as_______. compound interest. (a) (b) (c) (d) Chronological data Geographical data Ordinal data Cordinal data x2 − 4 is equal to x+2 4 –4 does not exist None of these PART III 171.

link relative of current year × chain index of the current year 100 link relative of previous year × chain index of the current year 100 link relative of current year × chain index of the previous year 100 link relative of previous year × chain index of the previous year 100 (d) 176. g(–½) is 175.(d) 173. n = 2 years. If g(x) = x–1/x. If from a population with 25 members. a random sample without replacement of 2 members is taken. 1000. Chain index is equal to (a) (b) (c) (d) 177. The sum of first n natural number [(n / 2) (n + 1)] 2 None of these. R = 6% p.a compound interest payable half-yearly then 37 . If A = Rs. None of these logx dx is equal to (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) x logx x logx – x2 + k x logx + k None of these 1 2 3/2 3 (n / 2) (n + 1) (n / 6) (n + 1) (2n + 1) 174. the number of all such samples is (a) (b) (c) (d) 300 625 50 600 178.

163 Rs. There are 10 trains plying between Calcutta and Delhi. 180. The number of ways in which a person can go from Calcutta to Delhi and return by a different train is (a) (b) (c) (d) 99 90 80 None of these. 24 elements. 183 Rs. None of these. The number of guests in the party is (a) (b) (c) (d) 11 12 13 14 181. Q four and R two then the set P×Q×R contains . –4. 163. 38 183. 182. then your total savings in two weeks will be (a) (b) (c) (d) (a) (b) (c) (d) Rs. Every person shakes hands with each other in a party and the total number of hand shakes is 66.80 Rs. 20 elements. 888. If the set P has 3 elements. 9 elements. 880 800 None of these 179. The number of terms is (a) (b) (c) (d) 12 13 11 None of these. If you save 1 paise today. …… is 52. 2 paise the next day 4 paise the succeeding day and so on. –6.principal ( P ) is (a) (b) (c) (d) Rs. The sum of a certain number of terms of an AP series –8.83 None of these.

16. If a coin is selected at random from the bag. The number of accidents for seven days in a locality are given below : No. 10. 16. : 0 15 1 19 2 22 3 31 4 9 5 3 6 2 185. 10. The standard deviation of. A bag contains 15 one rupee coins. What is the combined mean salary? (a) (b) (c) (d) (a) (b) (c) (d) 6500 6200 6160 6100 4 6 3 0 188.184. A function f(x) is defined by f(x) = (x–2)+1 over all real values of x. now f(x) is (a) (b) (c) (d) Continuous at x = 2 Discontinuous at x = 2 Undefined at x = 2 None of these. This situation can be expressed as (a) (b) (c) (d) 5x + 3y ≤ 30 5x + 3y >30 5x + 3y ≥ 30 None of these 187. On the average experienced person does 5 units of work while a fresh one 3 units of work daily but the employer has to maintain an output of at least 30 units of work per day. 10. 16. The mean salary for a group of 40 female workers is 5200 per month and that for a group of 60 male workers is 6800 per month . then the probability of not selecting a one 39 . of accidents Frequency (a) (b) (c) (d) 56 6 68 87 : What is the number of cases when 3 or less accidents occurred? 186. 16 is 189. 25 two rupee coins and 10 five rupee coins. 10.

20.30 0.25 0. The quartile deviation of a normal distribution with mean 10 and SD 4 is 192. 191. ex eax / a log x eax eax dx d ( ax) dx (a) (b) (c) ax log e a log x eax 40 .25 0.20 0. (a) (b) (c) (d) 194. what is the chance of getting a Spade or an ace? (a) (b) (c) (d) (a) (b) (c) (d) 4/13 5/13 0. 20. 67.70.50 . If a card is drawn at random from a pack of 52 cards. 0 5 –5 None of these.rupee coin is (a) (b) (c) (d) 0. 2. 3.675. 25 then the sum of deviation of the observations from their AM is (a) (b) (c) (d) 193.20 190.70 0. If there are 3 observations 15.

199. 5.83 0. The total area of the normal curve is One. –18900 18900 19900 None of these.93 None of these.…. 0.50. If the profits of a company remains the same for the last ten months. The number is (a) (b) (c) (d) 3 4 –3 2 196. Any value between 0 and 1. Five times of a positive whole number is 3 less than twice the square of the number. 197. then the standard deviation of profits for these ten months would be ? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Positive Negative Zero (a) or (c) n (1– p). 200.1 to be received after two years compounded annually at 10% ? (a) (b) (c) (d) (a) (b) (c) (d) 0. to 100 terms is 41 .73 0.(d) ae ax 195. The mean of a binomial distribution with parameter n and p is 198. 50 per cent. What is the present value of Re. The sum of the series 9. np (1 – p). 1. np. np (1 – p ) .

Questions 11 to 20 are the fill in the blank based questions having four alternate options and carry + 1mark each for correct answer and – 0. Cost accounting. Which of the following is not a sub-field of accounting? (a) (b) (c) (d) Management accounting. Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer.25 mark for each wrong answer. Financial accounting.25 mark for each wrong answer. Book-keeping. 42 . which have answers as numerical values and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. (iii) (iv) PART I 1. Questions 23 to 60 are numerical based questions.BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT-2/2006 Time : 4 hours The test is divided into four sections. Please follow the instructions given in each section carefully and answer the questions. Maximum Marks : 200 SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) (i) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0.

Matching. Plant and Machinery. The determination of expenses for an accounting period is based on the principle of (a) (b) (c) (d) 4. Periodicity. All of the above. Objectivity. Change in accounting estimate means (a) (b) (c) (d) 6. Freehold Land and Buildings. Two accounts. Transparency. Products are manufactured. Comparability. The same account on two different dates. Sale is made. All of the above. Which account is the odd one out? (a) (b) (c) (d) 7. 43 3. Two sides of the same account. Stock of raw materials. Differences arising between certain parameters re-estimated during the current period and actual results achieved during the current period. None of the above.2. Both (a) and (b). Revenue from sale of products. Office Furniture & Equipment. In Double Entry System of Book-keeping every business transaction affects: (a) (b) (c) (d) . Differences arising between certain parameters estimated earlier and reestimated during the current period. realized in the period in which (a) (b) (c) (d) Cash is collected. Materiality. It is essential to standardize the accounting principles and policies in order to ensure (a) (b) (c) (d) 5. is generally. Consistency. Differences arising between certain parameters estimated earlier and actual results achieved during the current period.

is termed as ________ (a) (b) (c) (d) 12.8. ________ method will show highest value of closing stock? (a) FIFO 44 . The amount owed to a particular creditor. Contra entries are passed only when (a) (b) (c) (d) 10. if you start with a debit balance as per the Cash Book. Provision Liability Contingent liability None of the above When preparing a Bank Reconciliation Statement. Locating errors of principle. Locating clerical errors. All of the above 9. The preparation of a trial balance is for: (a) (b) (c) (d) PART II 11. but not in the general ledger? (a) (b) (c) (d) Total cost of goods sold for the period. then cheques issued but not presented within the period are __________ (a) (b) (c) (d) Added Deducted Not required to be adjusted None of the above. 13. Double column cash book is prepared Three-column cash book is prepared Simple cash book is prepared None of the above Locating errors of commission. Which of the following types of information are found in subsidiary ledgers. The portion of total current assets that consist of cash. which can be measured reliably by using a substantial degree of estimation. The quantity of a particular product sold during the period. Under inflationary conditions. Present liability of uncertain amount.

Goods in transit. an asset. 45 . 50. A for Rs. Sales for the year ended 31st March. such goods should be treated as part of (a) (b) (c) Sales. the Balance Sheet as on March 31.(b) (c) (d) 14. _______ account is debited. liability 17. If a concern proposes to discontinue its business from March 2005 and decides to dispose off all its assets within a period of 4 months. whichever is lower an expense. The portion of the acquisition cost of the asset. LIFO Weighted Average None of the above In the case of downward revaluation of an asset. (a) (b) (c) (d) Fixed Asset Revaluation Reserve Profit & Loss account General Reserve 15. Closing stock. 2005 should indicate the assets at their _________ (a) (b) (c) (d) Historical cost Net realizable value Cost less depreciation Cost price or market value. The balance of the petty cash is _________ (a) (b) (c) (d) 18. income.00. 2005 amounted to Rs.000 at a profit of 20% on cost. Therefore. Sales included goods sold to Mr. Such goods are still lying in the godown at the buyer’s risk. which is for the first time revalued.000. 10. yet to be allocated is known as ________ (a) (b) (c) (d) Written down value Accumulated value Realisable value Salvage value 16.

Periodicity concept. 15. 1. 2005. As per Section 37 of the Indian Partnership Act.20. 2006.(d) 19.50.70. Transportation and installation charges were incurred amounting Rs.000 and paid expenses amounting Rs.000 in his books. 4. Matching concept. Mohan purchased goods for Rs.000 respectively.000 and sold 4/5th of the goods amounting Rs. While finalising the annual accounts. 10. Dismantling charges of the old machine in place of which new machine was purchased amounted Rs.000 and Rs. 1.000. 2004 and advance salaries amounting Rs. Mr.3. 2005. He counted net profit as Rs. (a) (b) (c) (d) 7. Which of the following concepts was violated by A? (a) (b) (c) (d) 22. 46 . 10.000 on 1st October. The profit calculated by him is correct according to (a) (b) (c) Entity concept. Sales return. He paid Rs. 4.000. the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at ________ percentage per annum.00.000 on 31st March 2006. 6. consignee will debit the bad debt amount to: (a) (b) (c) (d) Commission Earned A/c Consignor A/c Debtors A/c General Trading A/c PART III 21.18.000 was paid for the month of Jan. Cost concept Matching concept Realisation concept Periodicity concept. 1932.2. 12.00.000 during the year. A purchased a machinery costing Rs. 5000 for an electricity bill of Dec.15.20. Market value of the machine was estimated at Rs.00. 1. A values the machinery at Rs. If del-credere commission is allowed for bad debt. 20.

00.250 47 .000.000 Rs.00.750 Rs. issued 20.000 Rs.40.000 shares 7.625 shares Rs. The following information pertains to X Ltd. the company issued 1.000 from H Ltd.40.000 25. 8% debentures of Rs.000 Rs.375 shares 5.10 each at par.20. 40. The amount of loss on redemption of debentures to be written off every year will be (a) (b) (c) (d) Rs. to settle the purchase consideration will be (a) (b) (c) (d) 6. by issue of shares of Rs. S Ltd.72. acquired assets worth Rs. For the purpose of redemption. W Ltd.20. 10% Preference shares of Rs.50.7.500 shares 9.50. At the time of redemption of Preference Shares.8.75.000 Rs.5. 25.100 each at a premium of 20% per share.000 Rs.000 Rs. the amount to be transferred by the company to the Capital Redemption Reserve Account will be (a) (b) (c) (d) Rs.000 24.500 Equity Shares of Rs. G Ltd.100 each at par.000.000 15% 26. which are redeemable after 5 years at a premium of 20%.: Equity share capital called up Calls in arrear Calls in advance Proposed dividend The amount of dividend payable will be (a) (b) (c) Rs. Conservatism concept.10.(d) PART IV 23.100 at a premium of 25%.000 Rs.2. issued 2.2. The number of shares to be issued by G Ltd.71.000 Rs. which are redeemable at a premium of 10%.000 Rs.

20 Rs. find closing capital of C. is Rs.(d) 27. 50.000 for A and B. took a joint life policy of Rs. A Company wishes to earn a 20% profit margin on selling price. 15. for C Rs.69. 25. A. 8.000 and C – Rs. Rs. 48 . Capital of B Rs. 10. B and C are the partners sharing profits and losses in the ratio of 5:3:2.820. If goodwill of the firm was valued as Rs. B – Rs. 20%.500 shares.000.820.500.000.820. B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively with the capital balance of Rs. 15.25 Rs. B declared to retire from the firm and balance in reserve on the date was Rs. 31. If C is to purchase 1/6th share in the partnership from the existing partners A and B in the ratio of 3:2 for Rs. 30. Rs. 30. They admit C as a partner. 16.00. 7. 6. Which of the following is the profit mark up on cost. A. who contributes to the firm Rs.000.62.000.100 each. 22.000.000. which will achieve the required profit margin? (a) (b) (c) (d) 33%. A – Rs. 70. 8.000.000. B – Rs. 25. Reserve Fund Rs.7. 30. 15.050 then what amount will be transferred to the loan account of C? (a) (b) (c) (d) Rs.820.000. 9. (a) (b) (c) (d) A – Rs. The final call made was paid on 77. 58. 25. who share profits and losses in the ratio of 3:2 has the following balances: Capital of A Rs. 29.000 and profit on revaluation was Rs. 30.80. 50. Rs.000 and B – Rs. A – Rs.000 and B – Rs. 14. There were no calls in arrear till the final call was made.000 of Rs.000 and C – Rs.80 Rs. 10.000 The subscribed share capital of S Ltd. The calls in arrear amounted to Rs.62.000.000. A and B. None of the above.000 for 1/6th share in the partnership.000. 25%.50 28. 50. On the death of B what amount will be payable to each partner. Rs.000. 25. A – Rs. The final call on share will be (a) (b) (c) (d) Rs.

000 and Rs.(a) (b) (c) (d) 32. half of which is to be withdrawn by P and Q.000.000. 19. 10. None of the above. Rs. 18. 20. B and C are equal partners. Rs. D brings Rs. Rs.000. None of the above. they admitted C giving him 3/10th share of profit.000 capital and Rs. 20.000:3.000. Rs. A and B are partners with capitals of Rs. A. Rs. 9. 2:4:6. 20. new profit sharing ratio will be: (a) (b) (c) (d) 5:6:3.000. P and Q are partners sharing Profits in the ratio of 2:1.000 Rs. How much cash can P & Q withdraw from the firm (if any)? (a) (b) (c) (d) 3.000 as his capital for 1/4th share and pays Rs.000:1.000. D is admitted to the firm for one-fourth share. NIL. A and B are partners sharing profits in the ratio 5:3. 20. R is admitted to the partnership with effect from 1st April on the term that he will bring Rs. If C acquires 1/5th share from A and 1/10th from B.000. 5. The amount of hidden goodwill is: (a) (b) (c) (d) 6. They admitted C as their third partner with one-fourth profits of the firm on the payment of Rs. None of the above. 35. The value of goodwill of the firm is (a) (b) (c) (d) Rs. 25. 12. 6.000.000 being half of the premium for goodwill.500. 10. 20.000. 8. 40.000 for goodwill. 18:24:38. 17:11:12 34. 10.000. 49 .000 respectively and sharing profits equally.000. 33.

How much amount of bad debt will be recorded in the books of Bobby? (a) 12. All such transactions are. The amount of stock on approval will be amounting (a) (b) (c) (d) Rs.000. 7. Profits apportioned among Bill and Monica is: (a) (b) (c) (d) 4. 80. On admission C brings Rs. New profit sharing ratio between A. None of the above.680 and 3.a.500 50 . B and C are 7:5:4.05 X draws a bill on Y for Rs 25.11. On 31-12-2005. interest on capital before distributing the profits. Mr Bobby sold goods worth Rs 25. During the year firm earned Rs.120.01. however. 15.11. Bobby discounted this bill @ 18% p. on 15. 70. 39.16. None of the above.000 cash and Rs. 4. A & B are partners sharing profits and losses in the ratio 5:3. On the due date Bonny failed to discharge the bill. They are entitled to 9% p. payable after 2 months.000.000 respectively.36. Find the scarificing ratio as A:B (a) (b) (c) (d) 3:1.000 and Rs. 37. Bonny immediately accepted a bill on 1.800 and 3. Rs.6. 50.01. 4:7. due date of the bill will be: (a) (b) (c) (d) 19th July 18th July 17th July 16th July 40. A merchant sends out his goods casually to his dealers on approval basis.000 for 30 days. Rs. 5:4. 48.000 against goodwill. 19th July is a public holiday. 38.000 to Mr Bonny.800. Bill and Monica are partners sharing profits and losses in the ratio of 3:2 having the capital of Rs. 20. The sale price was made at cost plus 25%. Later on Bonny became insolvent and 50 paise is recovered from Bonny’s estate. On 16.a. 5.000.000.800 after allowing any interest on capital. recorded as actual sales and are passed through the sales book. it was found that 100 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. 2:1.000 and 2.

000 4.000 at 2% discount with the help of B’s acceptance and balance in cash.650 Ram’s acceptance to Din for Rs 8. A and B enter into a joint venture to underwrite the shares of K Ltd. How many shares to be purchased by A? (a) (b) (c) (d) 80000 shares 72000 shares 12000 shares 8000 shares 51 . 80% of the issue are subscribed by the party.167 32.000 for 3 months.250 25.000 16. How much cash A will pay to B? (a) (b) (c) (d) 4.100 5. K Ltd make an equity issue of 100000 equity shares of Rs 10 each. 35. 30. The amount of interest will be: (a) (b) (c) (d) 120 80 90 160 42. purchased by A and B in profit sharing ratio. The profit sharing ratio between A and B is 3:2.(b) (c) (d) 41. The balance shares not subscribed by the public. A drew a bill on B for Rs. A got the bill discounted at 12% p.437 11.a.000 be paid in cash immediately and the remaining amount will carry interest @ 12% p.300 4.333 44. A draws a bill on B for Rs. The amount of such remittance will be: (a) (b) (c) (d) 24.000 renewed at 3 months on the condition that Rs 4.687 13.a. Proceeds are to be shared equally.000.000 43. 9. and remits required proceeds to B. A wants to endorse it to C in settlement of Rs. 50.

000. 3/5th of the goods were sold by consignee for Rs 70.000 for insurance.00. Balance goods were taken over by B at cost less 20%.90000 Rs.20.15000 Rs.000 Rs.000 Rs.2800 49.85.45. If unsold goods costing Rs 20000 is taken over by Venturer at Rs 15000.1. Find out profit on venture.50. X of Kolkata sends out goods costing Rs 1.00.80.20000 Rs.000 and spent Rs 10. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. find out profit on venture. M spent Rs 10.2900 Rs.00.000.70.000 46.5.20. If a same set of books is maintained.000 Rs.000 to Y of Delhi.000. R and M entered into a joint venture to purchase and sell new year gifts. B sold 4/5th of the goods for Rs 2. The amount of Commission will be: (a) (b) (b) (d) Rs. the Joint Venture A/c will be credited by: (a) (b) (c) (d) Rs.00. 82000 Rs .1.000 Rs.000 52 . A purchased goods costing 2.000.000l Nil 48.000. R purchased goods worth Rs 1.3000 Rs. Rahim of Kolkata sends out 1000 boxes to Ram of Delhi costing Rs 100 each at an Invoice Price of Rs 120 each. He also paid Rs 5.000 as selling expenses and sold goods for Rs. 50000 None 47.000 in sending the goods to M.75. (a) (b) (c) (d) Rs.2. (a) (b) (c) (d) Rs.000 Rs.00.2833 Rs. Remaining goods were taken over by him at Rs 5. They agreed to share the profit and losses equally. Goods send out on consignment to be credited in general trading account will be: (a) (b) (c) Rs.

1/5th of the boxes were still in transit.(d) 50. 1. Depreciation rate is 10%. Consignee’s expenses Rs.07.13.21.2003 for Rs 1. Amit Ltd.00.000 53.00. 1. Installation expenses were Rs 10. Rs.000 Rs. If sales are Rs. Del-credere commission Rs. Depreciation is provided under straight line method.000. On 01.000.17.01. None Goods sent out on consignment Rs. Ordinary commission payable to consignee Rs.000 51. The amount irrecoverable from customer Rs. Consignor’s expenses Rs.1.00. Consignor’s expenses Rs 5000.000.2003. 3/4th of the goods received by consignee.40. then the cost of goods sold will be (a) (b) (c) (d) Rs. Rs. What will be the profit on consignment? (a) (b) (c) (d) Rs. 54.2.000 Rs. Annual Depreciation will be (a) (b) Rs. were sold.000 the gross profit is (a) (b) (c) (d) Rs.1. Consignment stock Rs.3.000 Rs.20.000. A of Kolkata sends out 500 boxes to B of Delhi costing Rs 200 each. 90.000. credit sales Rs. 30. The amount of goods still in transit will be: (a) (b) (c) (d) Rs.10.2000. 2. None of the above. Rs.2. Rs.2000.000.000.21.000 Rs.000.000. If sales revenues are Rs. Rs. 3.000 and operating expenses are Rs.40. 60. 4.36. expenses for repairs were incurred to the extent of Rs 2.000 and the rate of gross profit on cost of goods sold is 25%. Cash sales Rs.60. cost of goods sold is Rs.000 53 .000.000.200 None 52.000.000 Rs.000.000. 2.000 Rs.43.20. purchased a machine on 01.000. 3.40.600.000.38. Residual value after 5 years Rs 5.10.500.5.

000. cheques issued but not presented within the period should be: (a) (b) (c) Added Deducted Not required to be adjusted 54 . Profit / Loss on sale will be (a) (b) (c) (d) 13.000 Rs.80.5. the machinery account shows a debit balance of Rs. Rs.00.000.3.000 As on March 31.200 loss 6. The total cost of goods available for sale with a company during the current year is Rs.000 and the total sales during the period are Rs.00.12.15.(c) (d) 55. if you start with a debit balance as per the Cash Book.25. 2004 for Rs.200 Profit 13.60. The company charges depreciation @ 20% p. During the month of March 2005.3.2. 3. Rs.60.4.4.000 The company made purchases amounting Rs. Consider the following data pertaining to H Ltd.The machinery was sold on September 30. 2005 (Rs.12. on diminishing balance method. When preparing a Bank Reconciliation Statement.25.30.) 90.000 Rs.000 to the suppliers.3.500 Rs. the closing inventory during the current year 3 is (a) (b) (c) (d) Rs.000 Rs.13.000 In the books of D Ltd.800 profit 6.000. The sales for the month of March 2005 were (a) (b) (c) (d) 58. for the month of March 2005: Particulars Stock As on March 01.a. 2005 (Rs. The goods are sold at 25% above the cost.800 loss 56.000.2.21.30.000 as on April 1.000 Rs. the company paid a sum of Rs.00.90.25.00.50.000 on credit.) 1. 57.000 Rs.000 Rs. If the gross profit 1 margin of the company is 33 % on cost.2003.

(d) 59. (a) (b) (c) (d) None of the above. Machine account. Repair account.500 spent on the overhaul of machines purchased second-hand is 55 . Capital account. 200 paid as wages for erecting a machine should be debited to Rs. 2. Furniture account capital expenditure revenue expenditure deferred revenue expenditure None of the above Rs. (a) (b) (c) (d) 60.

1972 Valid but not enforceable Enforceable at the option of both the parties.25 mark for each wrong answer. Offer. Contract. (a) Indian Contract Act. Enforceable at the option of one party Not enforceable in a court of law. Must move at the desire of the promisor.SECTION – B: MERCANTILE LAWS (40 MARKS) (i) (ii) Questions 61 to 79 have only one correct answer and carry + 1mark each for correct answer and – 0. Must be accepted by a person having authority to accept. 1962 Indian Contract Act. 1872 Indian Contract Act.25 mark for each wrong answer. The law of contract in India is contained in (a) (b) (c) (d) 62. (a) (b) (c) (d) 65. Must be absolute and unconditional. May be presumed from silence of offeree. A void agreement is one which is Which of the following is false? An acceptance: A proposal when accepted becomes a Which of the following statement is false? Consideration: 56 . (a) (b) (c) (d) 64. (iii) PART I 61. Must be communicated. Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. Promise. (a) (b) (c) (d) 63. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer. Acceptance. 1862 Indian Contract Act.

abandonment of rights by a party. An agreement with a minor can be ratified after he attains majority. Silence always amounts to fraud. Which one of the following is/are document of title to goods? (a) 57 . On the valid performance of the contractual obligations by the parties. Which of the following statement is true? Which of the following statement is true? (a) (b) (c) (d) 68. (a) (b) (c) (d) 67. cancellation of the existing contract. becomes enforceable. is discharged. railway receipt. Ignorance of law is no excuse. A threat to commit suicide does not amount to coercion. change in one or more terms of the contract. 1930 deals with (a) (b) (c) (d) 71. the contract (a) (b) (c) (d) 69. sale mortgage. A contract is discharged by rescission which means the (a) (b) (c) (d) 70. Undue influence involves use of physical pressure. A person who is usually of an unsound mind cannot enter into contract even when he is of a sound mind.(b) (c) (d) 66. The Sale of Goods Act. Must be illusory. becomes void. none of these. A person who is usually of a sound mind cannot enter into contract when he is of unsound mind. A contract with a minor is voidable at the option of the minor. all of the above. Must be of some value. acceptance of lesser performance. pledge. May move from any person.

Which one of the following is not an implied warranty? (a) (b) (c) (d) 75.(b) (c) (d) 72. (a) (b) (c) (d) 73. Warranty as to existence of encumbrance. Which one of the following is not true? In which form of the contract. warehouse keeper’s certificate. A partnership at will is one: (a) (b) (c) (d) 77. which does not have any deed which does not have any partner which does not provide for how long the business will continue which cannot be dissolved. Disclosure of dangerous nature of goods. The Partners The minors in the firm. None of the above. Every partner has the right to: (a) 58 . Bill of lading is a document of title to goods. The business under which the firm carries on business The collective name under which it caries on business. Warranty as to undisturbed possession. Take part in the business of the firm 74. A firm is the name of: (a) (b) (c) (d) 76. Specific goods can be identified and agreed upon at the time of the contract of Sale. the property in the goods passes to the buyer immediately: (a) (b) (c) (d) agreement to sell. hire purchase. wharfinger’s certificate. Warranty as to quality or fitness by usage of trade. sale installment to sell. all of the above Document showing title is different from document of title.

All of these. Fraud. To share exclusive profits To use the property of the firm for personal purposes Pay taxes It cannot file a suit against third parties Its partners cannot file a suit against a firm. Void. It cannot claim a set-off exceeding Rs. Valid. Right to share profits. PART II 80. Fraud. Voidable. In case of illegal agreements. Misrepresentation. Right to receive remuneration. (a) (b) (c) (d) 82. Coercion. (a) (b) (c) (d) 79.e. (a) (b) (c) (d) 83. Right to have access to account books. Undue Influence. Consent is not said to be free when it is caused by ____________ Moral pressure is involved in the case of ___________ Sometimes.. which he cannot claim as a matter of right? (a) (b) (c) (d) Right to take part in business. the collateral agreements are ___________ .(b) (c) (d) 78. Undue Influence. It cannot be sued by a third party. None of these. 100. a party is entitled to claim compensation in proportion to the work done by 59 . (a) (b) (c) (d) 81. Coercion. Which of the following is not disability of an unregistered firm? Which of the following is not the right of a partner i.

A agrees to pay Rs. A contract with the minor. an agreement made without consideration is __________ (a) (b) (c) (d) 87. (a) (b) (c) (d) void valid voidable unlawful void ab initio voidable valid illegal 60 88. Void contract. A contract dependent on the happening or non-happening of future uncertain event. An agreement made with free consent to which the consideration is lawful but inadequate.him. Voidable contract. 85. void voidable valid unlawful 86. One lakh to B if he brings on earth a star from sky. As a general rule. This is a contingent contract and __________. is __________ (a) (b) (c) (d) . (a) (b) (c) (d) Illegal Valid Voidable Void. is a __________ (a) (b) (c) (d) Uncertain contract. which is beneficial for him. is _________. It is possible by a suit for ________ (a) (b) (c) (d) 84. Contingent contract. damages injunction quantum meruit none of these.

A contact for the sale of goods which provide that the property would pass to the buyer on full payment of price and execution of sale deed. Exchange. Voluntary transfer of possession by one person to another is popularly known as __________ (a) Transfer.000 to B. 93. regain the possession. 80. retain the possession. deliver the goods. The essence of a right of lien is to _________ (a) (b) (c) (d) 91. A agrees to deliver his old car valued at Rs. in exchange for a new car. none of the above. is known as ___________ (a) (b) (c) (d) sale agreement to Sell hire-purchase Agreement sale of approval 94. Agreement to sell. Condition. 90. If a seller handed over the keys of a warehouse containing the goods to the buyer results in ___________ (a) (b) (c) (d) constructive delivery actual delivery symbolic delivery none of the above 92. is called ____________ (a) (b) (c) (d) Guarantee. Term. Barter. and agrees to pay the difference in cash it is _________ (a) (b) (c) (d) Contract of sale. A stipulation in a contract of sale of goods whose violation by seller gives a right of rescission to buyer. Warranty. 61 .89. a car dealer.

Rahim wants to recover the entire amount from Ram. Which of the following statement(s) is correct? (a) (b) (c) Rahim can recover the entire amount from Ram. (a) (b) (c) (d) 96. Rohit and Kiran jointly borrowed Rs.00. Rahim cannot recover any amount from Ram.000 from Ram.00.000 from Rahim by executing a promissory note. 62 . Rahim can only recover 1/3 of Rs. All partners have become insolvent Firm’s business has become unlawful The fixed term has expired In cases (a) and (b) only. Ram. with consent of all partners as per express agreement by written notice in partnership at will all of the above. (a) (b) (c) (d) Possession.2. Rohit and Kiran are not traceable.2. None of the above. Ram objected this move by saying he is liable to pay 1/3 of the debt only. (a) (b) (c) (d) 97. Delivery. Such expulsion is in good faith The majority of the partner agree on such expulsion The expelled partner is given an opportunity to start a business competing with that of the firm Compensation is paid All the partners Simple majority of partners Special majority of partners New partner only. A partner can be expelled if _________________ A new partner can be admitted in the firm with the consent of _________ A partner may retire from an existing firm ________ A partnership firm is compulsorily dissolved where ___________ PART III 99.(b) (c) (d) 95. (a) (b) (c) (d) 98.

Choose the correct alternative. 100 per mile per annum. 63 . namely. (a) (b) (c) (d) X and Y are partners X and Y are cab owners X and Y are co-owners Can’t be decided. 100.(d) The promissory note is not executable against Ram as Rohit and Kiran are not traceable. and X and Y are to share the costs of repairing and replacement of the cars. X agrees with Y to carry passengers by taxi from Delhi to Gurgaon on the following terms. Y is to pay X Rs. and to divide equally between them the proceeds of fares received from passengers.

Consider the following and decide which. 64 . Changing the level of interest rates is a better way of managing the economy than using taxation and government expenditure. Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer.25 mark for each wrong answer. economy is without scarcity: (a) (b) (c) (d) (a) (b) (c) (d) 103. if any. None of the above. Higher levels of unemployment will lead to higher levels of inflation. where most people were farmers. The pre-independence Indian economy. Questions 117 to 132 are Fill in the blanks type and carry +1 mark for each correct answer and -0.SECTION – C : GENERAL ECONOMICS (50 MARKS) (i) (ii) (iii) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. Any economy where income is distributed equally among its people. Total utility and marginal utility both to increase. Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0. (iv) PART I 101 Which of the following statements would you consider to be a normative one? (a) (b) (c) (d) Faster economic growth should result if an economy has a higher level of investment.25 mark for each wrong answer.25 mark for each wrong answer. The economic analysis expects the consumer to behave in a manner which is: 104. The average level of growth in the economy was faster in the 1990s than the 1980s. After reaching the saturation point. 102. Rational Irrational Emotional Indifferent. consumption of additional units of the commodity cause: (a) (b) Total utility to fall and marginal utility to increase. A mythical economy where everybody is a billionaire.

Do not advertise because they can sell as much as they want at the current price. Advertise to increase the demand for their products. Decreasing returns to scale. Total utility to become negative and marginal utility to fall. Increasing returns to scale. In the case of monopoly. Comforts. MC. None of the above. AVC. If one unit of labour and one unit of capital give 200 units of output. Luxuries. Necessities. TFC. The vertical difference between TVC and TC is equal to: 108. Conventional necessities. The AR curve and industry demand curve are same: 110. None of these. equal to National Income? . Consumer surplus is highest in the case of: 106. (a) (b) (c) (d) Total utility to fall and marginal utility to become negative. Do not advertise because most advertising is harmful for the society. Price taker firms: 109. None of these. Who advertise will get more profits than those who do not.(c) (d) 105. by definition. Which of the following is not. In the case of oligopoly. two units of labour and two units of capital give 400 units of output and 5 units of labour and five units of capital give 1000 units of output then this is a case of: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) Constant returns to scale. In the case of perfect competition. National product National expenditure 65 107.

The maintenance of intellectual property rights and patent rights of member countries. 66 . An improvement in the USA’s terms of trade in the next decade. elimination of import quotas and globalization of international trade. Which of the following is not an objective of Fiscal policy? 112. GATT OPEC WTO UNIDO 111. Which of the following concepts of Budget deficit has become practically redundant in India? (a) (b) (c) (d) (a) (b) (c) (d) Fiscal deficit Budgetary deficit Primary deficit Revenue deficit 100 population 1000 population 10000 population 100000 population 115. Birth rate and Death rate are measured as per: 116. Money includes: (a) Currencies and demand deposits. A reduction in tariffs through negotiation.(c) (d) (a) (b) (c) (d) (a) (b) (c) (d) National output National wealth Economic growth Economic stability Maximization of employment level Regulating of financial institutions A general agreement among common market countries on technical training and mutual prices of traded goods. The main objective of the World Trade Organisation is to secure among others: 113. Which one of the following is the best example of agreement between oligopolists? (a) (b) (c) (d) 114.

All of the above. . Charges for electricity. Hicks Alfred Marshall Robbins A C Pigou Imperfect competition Perfect competition Monopoly Monopsony There are only two variable factors. All factors are variable. the demand for X -----------------. 119. While analyzing Marshall’s measure of consumer’s surplus one assumes ------------------. 122.R. PART II 117. There is a fixed factor and a variable factor.(b) (c) (d) Bonds. Variable factors yield less. The law of variable proportions come into being when ----------------------------. -------------. When the price of a substitute of X commodity falls. Marginal utility approach to demand was given by -----------------------------------. Equity shares. Wages of the labour. 67 118. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) Coffee and milk Diamond and cow Pen and ink Mustard oil and coconut oil Rises Falls Remains unchanged Any of the above. 121.is an implicit cost of production. 120.pair of commodities is an example of substitutes. government securities. J. -------------------------------.

is not a direct tax.has been founded to act as permanent watchdog on the international trade. 68 . ------------. 128. 125. Stagflation means -----------------------. ----------------------.(c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Interest on owned money capital. 126. (a) (b) (c) (d) IBRD ADB WTO IMF 127. Payment for raw material. 124. Monopoly Monopolistic competition Perfect competition. ___________measure usually gives the lowest estimate of unemployment especially for poor economy. The average profit is the difference between ---------------------. Oligopoly. Inflation with recession Recession with stagnation Inflation galloping like a stag Inflation and increasing output. Excess capacity is not found under ------------------. Income tax Wealth tax Expenditure tax Entertainment tax 123. (a) (b) (c) (d) (a) (b) Usual status Current weekly status Current daily status Current yearly status AC and TC AC and VC.

129. the marginal product is -----------------------. then elasticity at R equals ---------------. 130 . At the point of inflexion. guns and bread. Read the following table and answer questions 133-135 Table 1 : Production Possibilities Production possibilities Guns Bread A 0 105 B 10 100 C 20 90 D 30 75 E 40 55 F 50 30 G 60 0 H 30 45 69 .(c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 131. One Greater than one 132. (a) (b) (c) (d) Zero Five Two One PART III The following data give the production possibilities frontier of an economy that produces two types of goods. Equal to zero. The suggested remedy would only work if the demand for rail travel had a price elasticity of -------------(a) (b) (c) (d) Zero Greater than zero but less than one. If R point bisects the demand curve in two equal parts. AC and AR AC and TR Increasing Decreasing Maximum Negative Less than one. More than one. If the railways are making losses on passenger traffic they should lower their fares. Equal to one. Marginal revenue will be negative if elasticity of demand is ------------------.

What is Bank Rate? (a) (b) (c) (d) The rate of interest charged by public sector banks from the general public. Reverse Repo Rate and Cash Reserve Ratio have been kept unchanged at their present levels of 6 per cent. one moves successively from point A to points B. 24 units of bread. The rate of interest on housing loans. Increase Bank Rate and increase CRR. These have been kept unchanged as liquidity pressure seen during the last 4 months of 2005-06 have eased off considerably.Bank Rate. the opportunity cost of guns: (a) (b) (c) (d) (a) (b) (c) (d) Increases as more of guns are produced. Point D is efficient while point H (30 guns and 45 loaves of bread) is inefficient. Remains constant as more of guns are produced. 134. Repo Rate. 6. In the given paragraph it is stated that Bank Rate and Cash Reserve Ratio(CRR) have been kept unchanged. Point D is on the PPF while point H is inside the PPF. 70 . The rate at which the RBI discounts the bills of commercial banks.5 per cent. the opportunity cost of increasing gun’s production from 20 to 30 units is equal to (a) (b) (c) (d) 10 units of bread. C. Point D is outside the PPF while point H is on the PPF. 135. According to Table 1. nothing can be said.E and F. 136. What can RBI do if it wants to control credit in the economy? (a) (b) Decrease Bank Rate and decrease CRR. 5. 137. Point D is inside the PPF while point H is on the PPF.133. In the Monetary Policy announced for the year 2006-07 the following announcements have been made . Given the data in Table 1. 25 units of bread. Nothing can be said. The rate of interest on educational loan. 15 units of bread.5 per cent and 5 per cent respectively. Why? Read the following paragraph and answer questions 136 to 137. D. Decreases as more of guns are is produced.

5 Rs.33 Rs. what is Bozzo’s profit maximizing level of output : (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 10 burgers 40 burgers 50 burgers 60 burgers Rs. What is average fixed cost when 20 burgers are produced? 71 .440 Rs. If burgers sell for Rs14 each.3. PART IV Use Table 2 to answer questions 138-141. The table below provides the data of Bozzo’s output and costs in Rupees.110 Rs.960 Rs.5 139. Quantity Total cost 100 210 300 400 540 790 1060 Fixed cost Variable cost − Average variable cost − Average total cost Marginal cost − 0 10 20 30 40 50 60 138. What is the total variable cost when 60 burgers are produced? 140. 2. 690 Rs.(c) (d) Increase Bank Rate and decrease CRR Decrease Bank Rate and increase CRR. Bozzo’s burgers is a small restaurant and a price taker. 10 Rs.

The number of packets of powered milk customers bought went up from 90 to 220 per month.30 is equal to: (a) (b) (c) (d) .0.25. -2. 142. 144.19.0 1. . 13 Rs 14 Rs. 9 In Econoville. What can be said about the price elasticity of demand for fresh milk? 72 .66 2 .141. The cross elasticity of monthly demand for cereal when the price of fresh milk increases from Rs 20 to Rs. at which price 400 litres of milk were sold per month.09. + 0. there is one grocery shop.20 per litre.38.09. 20 per litre to Rs 30 per litre is equal to: (a) (b) (c) (d) 2. Following the price rise: ♦ ♦ ♦ Only 200 litres of milk was sold every month. what is the marginal cost (per burger)? (a) (b) (c) (d) Rs. Between 10 to 20 burgers. The price elasticity of demand when fresh milk’s price increases from Rs. 145. The cross elasticity of monthly demand for powdered milk when the price of fresh milk increases from Rs 20 to Rs 30 per litre is equal to: (a) (b) (c) (d) (a) + 1. Now answer Questions number 142-147. Ecoconvenience. It is perfectly elastic.05. the price was raised to Rs 30 per litre.38 + 0.05.0.5 1. 11 Rs.66 143. After some time. The number of boxes of cereal customers bought went down from 280 to 240. + 2. -1. It used to sell fresh milk at Rs.

(b) (c) (d) It is elastic.50. What is income elasticity of demand for fresh milk? (a) (b) (c) (d) (a) (b) (c) (d) 0.50 luxury good inferior good normal good nothing can be said.5 0.6 1.00.50.2.000.000 a year. the individual is earning an economic profit of Rs. 147. Use Table 3 to answer questions 149-150.000.60. What is the total output when 2 hours of labour are employed? (a) 160 73 .25 1. If the owner could work for another company for Rs.000. Table 3 Hours of Labour 0 1 2 3 Total Output --200 ________ 480 Marginal Product --200 160 ________ 149.000 and is incurring explicit costs of Rs.000.00. implicit costs are Rs.2. It is inelastic. Suppose income of the residents of Ecoville increases by 50% and the quantity of fresh milk demanded increases by 30%. 146 . We can say that fresh milk in economics sense is a/an: 148. Suppose that a sole proprietorship is earning total revenues of Rs. the total economic costs are Rs.1. we would conclude that: (a) (b) (c) (d) the firm is incurring an economic loss.50. It is perfectly inelastic.

(b) (c) (d) (a) (b) (c) (d) 200 360 400 120 160 200 480 150. What is the marginal product of the third hour of labour? 74 .

lim x →0 A discrete variable. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 153. Equally likely. If an unbiased coin is tossed once. Exhaustive. (b) and (c).SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0. A continuous variable.25 mark for each wrong answer. then the two events Head and Tail are 75 . An attribute.25 mark for each wrong answer. Questions 171 to 200 are numerical based questions. All these (a). (iii) PART I 151.25 mark for each wrong answer. Mutually exclusive classification is usually meant for (a) (b) (c) (d) 152. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. Which measure of dispersion is based on all the observations? 154. 3x + | x | 7x − 5 | x | Exists Does not exist 1/6 None of these Mean deviation Standard deviation Quartile deviation (a) and (b) but not (c) Mutually exclusive. Any of these. which have answers as numerical value and carry + 1 mark each for correct answer and – 0.

3rd quadrant. Circular Test. Compute the extent of correlation between two variables. Time Reversal Test. Remains constant. As the sample size increases. Unit Test. standard error 157. A and B are mutually exclusive events. None of these. A and B must be same events. Scatter diagram helps us to 160. The point of intersection between the straight lines 3x + 2y = 6 and 3x – y = 12 lie in 76 . 4th quadrant. Obtain the mathematical relationship between two variables. 1st quadrant. Both (a) and (c). Decreases proportionately. . Increases Decreases. A and B may be different events. 2nd quadrant. If P(A) = P(B). Systematic sampling Simple random sampling Purposive sampling Quota sampling Find the nature correlation between two variables. The test of shifting the base is called 158.155. then (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) A and B are the same events. Which sampling is subjected to the discretion of the sampler? 159. 156.

(a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Characteristic. 164. Characteristic Number. Mantissa Real and equal Imaginary Real and unequal Irrational and unequal Annuity Perpetuity Annuity regular Annuity due Median Mode Mean G. In __________ receipts/payments takes place forever. Rows Left. 166. dispersion & skewness. Rows 162. Columns Right. (a) (b) (c) (d) Left. the whole part or the integral part is called the ______ and the decimal part is called the _______. ________ are used for measuring central tendency . The logarithm of a number consists of two parts. ‘Stub’ of a table is the _________ part of the table describing the _________.PART II 161. Columns Right. Median Deciles Percentiles Quartiles. 77 . Mantissa Mantissa. 165. Number Characteristic. If b2–4ac < 0 then the roots are _____________.M. Usually _________ is the best measure of central tendency. 163.

then the correlation is_______. for two or more periods of time.167. 168. 170. An index time series is a list of _______ nos. The method usually applied for fitting a binomial distribution is known as______. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Good Poor Maximum Highest Method of least square Method of moments Method of probability distribution Method of deviations Index Absolute Relative Sample 169. PART III 171. A small value of r indicates only a _________ linear type of relationship between the variables . of students : (a) (b) (c) (d) 65 50 35 43 How many students got marks more than 30? 78 . If the plotted points in a scatter diagram lie from upper left to lower right. The following data relate to the marks of a group of students: Marks : Below 10 15 Below 20 38 Below 30 65 84 Below 40 100 Below 50 No. (a) (b) (c) (d) Positive Zero Negative None of these.

5 4.3x–1 if x = 4 is 174. 80000 None of these 176. No. find the number. of persons (a) (b) (c) (d) (a) (b) (c) (d) 50 45 40 60 3 4 3. 1500? 173. The following data relate to the incomes of 86 persons : Income in Rs. x and y can be related by the inequality (a) (b) (c) (d) (a) (b) (c) (d) x+y ≠9 x+y≤9 x+y≥9 None of these Rs. The sum required to earn a monthly interest of Rs 1200 at 18% per annum SI is 79 . A number between 10 and 100 is five times the sum of its digits.172. If 9 be added to it the digits are reversed.5 : : 500–999 15 1000–1499 1500–1999 2000–2499 28 36 7 What is the percentage of persons earning more than Rs. An employer recruits experienced (x) and fresh workmen (y) for his firm under the condition that he cannot employ more than 9 people. (a) (b) (c) (d) 54 53 45 55 175. 50000 Rs. Value of 2x1/2. 60000 Rs.

Rs 250 Rs 277 Rs 300 Rs 310 4P is equal to 4 (a) (b) (c) (d) 1 24 0 None of these 179. –3. Number of trials the room shall be lighted (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) 6 8 5 7 21st 20th 19th None of these 20100 4100 16000 80 181. The sum of natural numbers upto 200 excluding those divisible by 5 is .20000 is (a) (b) (c) (d) 178. Five bulbs of which three are defective are to be tried in two bulb points in a dark room. –5. is –39? 182. …. Which term of the progression –1. The difference between compound and simple interest at 5% per annum for 4 years on Rs.177. In how many ways can 8 persons be seated at a round table? In how many cases will 2 particular persons sit together? (a) (b) (c) (d) 5040 4050 450 540 180.

If y = (a) (b) (c) (d) (a) (b) (c) (d) 1 x then dy is equal to dx 1 2x x −1 x x – 1 2x x None of these. The number of subsets of the set {2. None of these. 183. 5)} None of these. 187. (3. B = {4. 3. 6} then A × (BC) is lim x→ 4 ( x 2 − 16 ) is evaluated as ( x − 4) 8 –8 0 None of these. (5. f(x) = x2/ex then f′(–1) is equal to 81 . – 1/e 1/e e None of these.(d) (a) (b) (c) (d) (a) (b) (c) (d) 185. 2). 5} is 184. 5)} {(5. 5). C = {5. 3 8 6 None of these. {(2. (a) (b) (c) (d) 186. 3)} {(2. (5. 3}. 5}. 3). Given A = {2.

60. If the relationship between two variables x and y is given by 2x + 3y + 4 = 0. 12.70. Rs.30 Rs. 16? 191.75.188. what is the probability of getting no difference of points? (a) 1/2 82 .85.20 30 20 192. 193. Rs. Rs. Rs. then the value of the correlation coefficient between x and y is (a) (b) (c) (d) 0 1 –1 Negative. 4 189. What is the coefficient of range for the following wages of 8 workers? Rs. Evaluate 2 ( 3x . 10. 17 16 15. Rs. 23.65. Evaluate (a) (b) (c) (d) 5x 2 dx and the answer will be 5 / 3x3 + k 5x3 / 3 5x3 None of these.75 12 190. Rs.72. Rs. 28.80. 20. If two unbiased dice are rolled together.90.2 ) 2 dx and the value is (a) (b) (c) (d) (a) (b) (c) (d) 104 100 10 None of these. What is the value of the first quartile for observations 15. 18. (a) (b) (c) (d) Rs.

what is the probability that out of a group of 4 students. at least one has passed? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 0. The probability that a card drawn at random from the pack of playing cards may be either a queen or an ace is (a) (b) (c) (d) 2/13 11/13 9/13 None of these.01 0.= 20 and sample size is 100 then standard error of mean is 198.625 0. If the mean deviation of a normal variable is 16.0256 10.00 12. what is the value of the correlation coefficient? (a) (b) (c) (d) 0. 16 and 256 respectively.9744 0.6525 0.5 83 .8704 0. 196.00 13.D. the covariance. variance of x and variance of y are 40. If S. 195.4 0.05 2 5 1 5 None of these.50 15. If for two variable x and y. If the overall percentage of success in an exam is 60. what is its quartile deviation? 197.(b) (c) (d) 1/3 1/5 1/6 194.

a. 84 .199.000.10000 due in 2 years at 5% p. compound interest when the interest is paid on yearly basis is (a) (b) (c) (d) Rs 9070 Rs 9069 Rs 9061 Rs 9060 200. A town has a total population of 50.000 read the newspaper X and 23000 read Y while 4000 read both the papers. The present value of Rs. Out of it 28. The number of persons not reading X and Y both is (a) (b) (c) (d) 2000 3000 2500 None of these.

BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT-3/2006 Time : 4 hours The test is divided into four sections.25 mark for each wrong answer. Measurement. Maximum Marks : 200 (iii) (iv) PART I 1. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) (i) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0. 85 . Please follow the instructions given in each section carefully and answer the questions. All of the following are functions of Accounting except (a) (b) (c) (d) Decision making.25 mark for each wrong answer.25 mark for each wrong answer. Questions 23 to 60 are numerical based questions. which have answers as numerical values and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. Questions 11 to 20 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. Ledger posting. Forecasting.

000 and signing a Rs.5. Neither a transaction nor an event. 2006 after sale of goods worth Rs.00. Assets expressed in non-monetary terms.00.000. The debts written off as bad.1.4. Which financial statement represents the accounting equation.000. On March 31. Total assets increased by Rs.000. Total assets increased by Rs. A transaction as well as an event. As a result of this transaction (a) (b) (c) (d) Total assets increased by Rs. 2. credited to Bad Debts Recovered Account credited to Debtors Account.000 with corresponding increase in liabilities by Rs. A transaction. 3. Assets expressed in monetary terms.00.000. making a down payment of Rs.000.000 bill payable due in 60 days.00.00.000. assets = Liabilities + Owner’s equity: (a) (b) (c) (d) Income Statement Statement of Cash flows Balance Sheet None of the above 6. Assets and liabilities expressed in monetary terms 4.2.00. Manufacturing account is prepared to (a) (b) (c) (d) ascertain the profit or loss on the goods produced ascertain the cost of the manufactured goods show the sale proceeds from the goods produced during the year both (b) and (c).00. Total liabilities increased by Rs. 10. Financial statements only consider (a) (b) (c) (d) 5. debited to Profit and Loss Account 7.4.4.000.4.5. he is left with the closing stock of Rs.4.00. if recovered subsequently are (a) (b) (c) 86 . A purchased a car for Rs. This is (a) (b) (c) (d) An event. Liabilities expressed in monetary terms.

Authorized share capital Net profit Paid-up capital Called-up capital 87 12. Matching.(d) 8. (a) (b) (c) (d) 10. Accounting policies refer to specific accounting ________ (a) (b) (c) (d) 13. double column cash book is prepared three-column cash book is prepared simple cash book is prepared None of the above Real account Personal account Nominal account None of the above A withdrawl of cash from business by the proprietor should be credited to: Contra entries are passed only when Consignment account is Economic life of an enterprise is split into the periodic interval as per ________ (a) (b) (c) (d) Money Measurement. Going concern. None of the above Drawings Account Capital Account Cash Account None of the above. (a) (b) (c) (d) 9. Dividends are usually paid as a percentage of ______ (a) (b) (c) (d) . Methods of applying those principles. Principles. (a) (b) (c) (d) PART II 11. Accrual. Both (a) and (b). None of the above.

Income. Liability 15. An asset.14. X endorsed the bill to Z. Interest on capital will be paid to the partners if provided for in the agreement but only from________ (a) (b) (c) (d) Profits. the discounting charges will be borne by________ (a) (b) (c) (d) The drawer of the bill The drawee of the bill The discounting charges will be recorded in memorandum account The discounting charges will be borne by bank X Y Z 19. X draws a bill on Y. The balance of the petty cash is ______ (a) (b) (c) (d) 16. Profit Sharing Ratio. The remaining partners contribute to such compensation amount in ______ (a) (b) (c) (d) Gaining Ratio. An expense. Consignee to Consignor Consignor to Consignee Debtors to Consignee Debtors to Consignor 17. Capital Ratio. ________will be the payee of the bill (a) (b) (c) 88 . Goodwill. Accumulated Profits. Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. A proforma invoice is sent by ________ (a) (b) (c) (d) 18. Reserves. Sacrificing Ratio. If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained.

00. 20%. Conservatism.. has been following Straight Line Method (SLM) of depreciation.4.00.15. The market value of the remaining goods was Rs. He valued the closing stock at cost. a dealer in second-hand cars has the following five vehicles of different models and makes in their stock at the end of the financial year 2004-2005: Car Cost Fiat 90.000 Net realisable value (Rs.75.000 and sold 80% of such goods during the accounting year ended 31st March.25.00.(d) 20. None of the above. PART III 21.000 Maruti Esteem 2. since such change would result in the additional depreciation of Rs. Money measurement.000 89 .000 1. The auditor raised objection to this change in the method of depreciation. E Ltd. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method.55. A businessman purchased goods for Rs.10. None A Company wishes to earn a 20% profit margin on selling price. 25%. He violated the concept of (a) (b) (c) (d) 22.) 95. which will achieve the required profit margin? (a) (b) (c) (d) 33%. The objection of the auditor is justified because (a) (b) (c) Change in the method of depreciation should be done only with the consent of the auditor Depreciation method can be changed only from WDV to SLM and not vice versa 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 Method of depreciation cannot be changed under any circumstances.000 1. Periodicity. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. ________is the profit mark up on cost. Cost.25.00.000 Maruti 800 1. (d) PART IV 23.000 2.65.000 Zen 2. M/s ABC Brothers.000 Ambassador 1. 2005. which was registered in the year 2000.000.000 2.

Rs. 30. 20.000 25% 26. 40.000 90 .000 Rs.000 25. 12. Rs. 3. Useful life = 6 years.000 Rs.000 Rs. Salvage value = Nil. 3.90.000 Rs.6. 4.000.000.000 Rs.000.000.The value of stock included in the balance sheet of the company as on March 31. Original cost = Rs. 60.8.60.1.000 in 2005.7.60.000. 80.70.00. 60.000 Rs. the gross profit is (a) (b) (c) (d) Rs.000. 27. cost of goods sold is Rs. 20.80. 36.40.500 Rs.26.7.10.1.7.000.000 Rs.62. 90.000 and sold it for Rs 60.000 Rs.70. Consider the following for Alpha Co.00. 18.40.000 Rs. for the year 2005-06: Cost of goods available for sale Total sales Opening stock of goods Gross profit margin Closing stock of goods for the year 2005-06 was (a) (b) (c) (d) Rs.000 Rs.000 Rs. A and B purchased a piece of land for Rs 20.000.000 Rs. Originally A had contributed Rs 12000 and B Rs 8000. If sales revenues are Rs. 2005 was (a) (b) (c) (d) 24.000 and operating expenses are Rs. Depreciation for the first year under sum of years digits method will be (a) (b) (c) (d) Rs. Rs. Rs. The profit on venture will be (a) (b) (c) Rs.000 Rs.36.

00. 12. Average Stock = Rs 12. the bill returned dishonoured as Y become insolvent and 40 paise per rupee is recovered from his estate. 42.000. 12. The cash book showed an overdraft of Rs.000 Nil 30.(d) 28.00.000 more than opening stock. and the cheque of Rs.00.400 paid into account had not been cleared. The sacrificing ratio among A:B will be (a) (b) (c) (d) 3:1. After admission of C. 2:1. 125 respectively had not been presented for payments.100.500. 50 and Rs.00.500 Rs 13. A & B are partners sharing profits and losses in the ratio 5:3. The value of closing stock will be (a) (b) (c) (d) Rs 12.000 Rs 24.00.000 Rs 10. 8.000 Reasonable Rate of Return 15% Profits for the year Rs. 100. Rs. 30. 32.500. but the pass book made up to the same date showed that cheques of Rs.000 40 paise 29. 1. 91 .000 (a) (b) (c) (d) Rs.000. The balance as per the cash book will be (a) Rs. 4:7.000.00. 1. The amount recovered is: (a) (b) (c) (d) 20. B and C are 7:5:4.000. new profit sharing ratio between A. Closing stock is Rs 3.1. 5:4. 82.000. Rs. 72. Nil On 1.000 31.05 X draw a bill on Y for Rs 50.Rs. At maturity. Find the goodwill of the firm using capitalization method from the following information: Total Capital Employed in the firm Rs. Rs.

A second hand machinery is purchased for Rs.1.750 Rs.700.400. Rs. Rs.500 12. Consider the following data pertaining to a company for the month of March 2005: Particulars Opening stock Closing stock Purchases less returns Gross profit margin (on sales) (a) (b) (c) (d) Rs. 1. The accountant of the firm M/s ABC is unable to tally the following trial balance. 10. 1. Rs.175. 12.1.600 Rs.500 17. Rs. 2.500. 22.000 The sales of the company during the month are 35.000 1.) 15.500 is spent on its transportation and Rs.500 Credit (Rs.500 2.000. 2. Rs.35.28.1. 1. S.33.200 is paid for installation. 11. The above difference in trial balance is due to (a) (b) (c) (d) 92 . The amount debited to machinery account will be (a) (b) (c) (d) Rs.000 2.000.625. Rs. 10.375.250 Rs. 1. 3.) 10.500.1. Account heads Sales Purchases Miscellaneous expenses Salaries Total wrong placing of sales account wrong placing of salaries account wrong placing of miscellaneous expenses account Wrong placing of all accounts Debit (Rs. 1. the amount of Rs.41.000 25. 10.10. Rs. No.(b) (c) (d) 33. 4.000 20% 34.

00. 20.40.75. 80.000 Rs.85.30. 42.55.000 1. 1.000 5.00.000.36.600 Rs. Rs. if it is calculated on average profits of last five years on the basis of 3 years of purchase.000 85. 70.000.000 Rs. Stock as on April 01. 47.300 Carriage on sales Rent of Office Sales Rs. Rs.1.600 Rs. 85.000 2. Rs.60.000.60.700 93 . 2004 Purchases Sales 80.800 2. recorded the following information as on March 31.000 18. 50. Rs. Against this.600 Rs.000. The company sells goods at cost plus 33 (a) (b) (c) (d) 38. Rs. Rs.20. Rs.00. (a) (b) (c) (d) Rs.000 37.000.000. 2. 3. The profits of last five years are Rs. after 3 taking into account the above transactions is. Rs. C Ltd. 2. Opening Stock Closing Stock Purchases Carriage on purchases Gross profit will be (a) (b) (c) (d) Rs. 2. 85. 2005: It is noticed that goods worth Rs.000.000. 90.000.000 1.000 Rs. Find the value of goodwill.000 were destroyed due to fire. 50.000. the insurance company accepted a claim of Rs.10.000 and Rs.000 Rs. The value of closing inventory. 1 % .30.

39.

Omega Ltd., a listed company , acquired assets worth Rs. 7,50,000 from Alpha Ltd. and issues shares of Rs. 100 each at premium of 25%. The number of shares to be issued by Omega Ltd. to settle the purchase consideration will be (a) (b) (c) (d) 6,000 7,500. 9,375. 5,625.

40.

X sent out certain goods to Y of Delhi. 1/10 of the goods were lost in transit. Invoice value of goods lost Rs 12,500. Invoice value of goods sent out on consignment will be: (a) (b) (c) (d) Rs.120,000 Rs.125,000 Rs.140,000 Rs.100,000

41.

F Ltd. purchased Machinery from G Company for a book value of Rs.4,00,000. The consideration was paid by issue of 10% debentures of Rs.100 each at a discount of 20%. The debenture account was credited with (a) (b) (c) (d) Rs.4,00,000 Rs.5,00,000 Rs.3,20,000 Rs.4,80,000

42.

P Ltd. issued 5,000, 12% debentures of Rs.100 each at a premium of 10%, which are redeemable after 10 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year is (a) (b) (c) (d) Rs.80,000 Rs.40,000 Rs.10,000 Rs. 8,000

43 .

X and Y share profits and losses in the ratio of 2 : 1. They take Z as a partner and the new profit sharing ratio becomes 3 : 2 : 1. Z brings Rs. 4,500 as premium for goodwill. The full value of goodwill will be (a) (b) (c) (d) Rs. 4,500. Rs. 18,000. Rs. 27,000. Rs. 24,000.

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44.

The profits of last three years are Rs. 42,000; Rs. 39,000 and Rs. 45,000. Find out the goodwill of two years purchase. (a) (b) (c) (d) Rs. 42,000. Rs. 84,000. Rs. 1,26,000. Rs. 36,000.

45.

T Ltd. has issued 14% Debentures of Rs.20,00,000 at a discount of 10% on April 01, 2004 and the company pays interest half-yearly on June 30, and December 31 every year. On March 31, 2006, the amount shown as “interest accrued but not due” in the Balance Sheet will be (a) (b) (c) (d) Rs.70,000 shown along with Debentures Rs.2,10,000 under current liabilities Rs.1,40,000 shown along with Debentures Rs.2,80,000 under current liabilities

46.

A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased goods costing Rs 2,00,000. B sold the goods for Rs 2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. The profit on venture will be: (a) (b) (c) (d) Rs. 35,500 Rs. 36,000 Rs. 34,000 Rs.38,000

47.

Ashok purchased a machine on 01.01.2005 for Rs 1,20,000. Installation expenses were Rs 10,000.Residual value after 5 years Rs 5,000. On 01.07.2005, expenses for repairs were incurred to the extent of Rs 2,000. Depreciation is provided under straight line method. Annual Depreciation is (a) (b) (c) (d) 13,000 17,000 21,000 25,000

48.

X draws a bill on Y for Rs 30,000. X wants to endorse it to W in settlement of Rs 35,000 at 2% discount with the help of Y’s acceptance and balance in cash. How much cash X will pay to Y? (a) (b) 4300 4000

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(c) (d) 49.

4100 5000

A purchased 1000 kg of rice costing Rs 200 each. Carriage 2000, insurance 3000. 4/5th of the boxes were sold by B at Rs 250 per boxes. Remaining stock were taken over by B at cost. The amount of stock taken over will be: (a) (b) (c) (d) Rs. 40000 Rs.41000 Rs.50000 Rs.50200

50.

A company sends its cars to dealers on ‘sale or return’ basis. All such transactions are however treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had cost Rs.55,000 each have been sent on ‘sale or return’ and have been debited to customers at Rs.75,000 each, cost of goods lying with the customers will be (a) (b) (c) (d) Rs.1,10,000. Rs. 55,000. Rs. 75,000. None of the above.

51.

Electricity paid on 1 October, 2004 for the year to 30 September, 2005 was Rs. 2,400 and electricity paid on 1 October, 2005 for the year to 30 September, 2006 was Rs. 3,200. Electricity payable, as shown in the profit and loss account for the year ended 31 December 2005, would be: (a) (b) (c) (d) Rs. 2,400. Rs. 3,200. Rs. 2,600. Rs. 3,000.

52.

Goods costing Rs 2,00,000 sent out to consignee at Cost + 25%. Invoice value of the goods will be (a) (b) (c) (d) Rs.250,000 Rs.2,40,000 Rs.300,000 None of the above.

53.

R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006 and profits for the accounting year 2005-2006 were Rs. 24,000. How much share in

96

profits for the period 1st April 2006 to 30th June 2006 will be credited to D’s Account. (a) (b) (c) (d) 54. Rs. 6,000. Rs. 1,500. Nil. Rs. 2,000.

X of Kolkata sends out certain goods at cost + 25%. Invoice value of goods sends out Rs 200,000. 4/5th of the goods were sold by consignee at Rs.1,76,000. Commission 2% upto invoice value and 10% of any surplus above invoice value. The amount of commission will be: (a) (b) (c) (d) Rs.4800 Rs.5200 Rs.3200 Rs.1600

55.

Debit balance as per Cash Book of ABC Enterprises as on 31.3.2006 is Rs. 1,500.Cheques deposited but not cleared amounts to Rs. 100 and Cheques issued but not presented of Rs. 150. The bank allowed interest amounting Rs. 50 and collected dividend Rs. 50 on behalf of ABC Enterprises. Balance as per pass book should be (a) (b) (c) (d) 1,600. 1,450. 1,850. 1,650.

56.

If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the (a) (b) (c) (d) trial balance would show the debit side to be Rs.1,000 more than the credit trial balance would show the credit side to be Rs.1,000 more than the debit. the debit side of the trial balance will be Rs.2,000 more than the credit side. the credit side of the trial balance will be Rs.2,000 more than the debit side.

57.

X and Y are partners sharing profits in the ratio 5:3. They admitted Z for 1/5th share of profits, for which he paid Rs. 1,20,000 against capital and Rs. 60,000 against goodwill. Find the capital balances for each partner taking Z’s capital as base capital. (a) (b) (c) 3,00,000; 1,20,000 and 1,20,000. 3,00,000; 1,20,000 and 1,80,000. 3,00,000; 1,80,000 and 1,20,000.

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(d) 58.

3,00,000; 1,80,000 and 1,80,000.

L’s acceptances of Rs 20,000 given to A is renewed upon cash payment of Rs 5000 and the fresh bill of Rs 15,100. Journal entry for renewal in the books of A will be: (a) B/R A/c Cash A/c To L A/c To Interest A/c (b) B/R A/c To Cash A/c To L A/c To Interest A/c (c) (d) B/R A/c To L A/c B/R A/c Cash A/c To L A/c Dr Dr 15000 5000 20000 Dr 20100 20100 Dr 20100 5100 15000 100 Dr Dr 15100 5000 20000 100

59.

A company forfeited 2,000 shares of Rs.10 each (which were issued at par) held by Mr. John for non-payment of allotment money of Rs.4 per share. The called-up value per share was Rs.9. On forfeiture, the amount debited to share capital will be (a) (b) (c) (d) Rs.10,000 Rs.8,000 Rs.2,000 Rs.18,000.

60.

X, Y and Z are partners sharing profits in the ratio 2:2:1. On retirement of Y, goodwill was valued as Rs. 30,000. The contribution of X and Z to compensate Y will be (a) (b) (c) (d) Rs. 20,000 and Rs. 10,000. Rs. 8,000 and Rs. 4,000. They will not contribute any thing. Information is insufficient for any comment.

98

SECTION – B : MERCANTILE LAWS (40 MARKS)
(i) (ii) Questions 61 to 79 have only one correct answer and carries + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carries + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0.25 mark for each wrong answer.

(iii)

PART I
61. Which of the following statement is true? (a) (b) (c) (d) 62. (a) (b) (c) (d) 63. (a) (b) (c) (d) 64. (a) (b) (c) (d) An agreement is an unaccepted proposal. An agreement enforceable by law is a contract. An agreement can only consist of an offer. An agreement can only consist of an acceptance. Revocation. Counter Offer. Rejection of Offer by Offeree. All of these. Promisor. Promisee. Any other person. Any of these. He cannot become a partner in an existing firm. He can become a partner in an existing firm. He can be admitted only to the benefits of any existing firm. He can become partner on becoming a major.

An offer may lapse by:

Consideration must move at the desire of

Which of the following statements is not true about minor’s position in a firm?

99

65.

A contract is discharged by novation which means the (a) (b) (c) (d) cancellation of the existing contract. change in one or more terms of the contract. substitution of existing contract for a new one. none of these.

66.

When prior to the due date of performance, the promisor absolutely refuses to perform the contract, it is known as (a) (b) (c) (d) abandonment of contract. remission of contract. actual breach of contract. anticipatory breach of contract.

67.

In case of breach of contract, which of the following remedy is available to the aggrieved party? (a) (b) (c) (d) Suit for rescission. Suit for damages. Suit for specific performance. All of these. can be enforced at the option of aggrieved party can be enforced at the option of both the parties cannot be enforced in a court of law courts prohibit.

68.

A voidable contract is one which (a) (b) (c) (d)

69.

A agrees to sell his car worth Rs. 100,000 to B for Rs. 20,000 only, and A’s consent was obtained by coercion. Here, the agreement is (a) (b) (c) (d) void valid voidable unlawful goodwill.

70.

The term “goods” under Sale of Goods Act, 1930 does not include (a)

100

(b) (c) (d) 71. (a) (b) (c) (d) 72. (a) (b) (c) (d) 73. (a) (b) (c) (d) 74. (a) (b) (c) (d)

actionable claims. stocks and shares. harvested crops. Condition as to title. Condition as to description. Condition as to free from encumbrance. Condition as to sample. Constructive delivery. Structured delivery. Actual delivery. Symbolic delivery. present Goods. existing Goods. specific Goods. none of the above the goods are bought by sample. the goods are bought by sample as well as description. the goods are purchased under its brand name. all of the above.

Which of the following is not an implied condition in a contract of sale?

Which of the following is not a form of delivery?

Goods which are in existence at the time of the Contract of Sale is known as

The doctrine of Caveat Emptor does not apply, when

75. If X commissioned Y, an artist, to paint a portrait of A for 200 dollars & Y uses his own canvas & paint then it is (a) (b) (c) (d) 76. (a) (b) Contract of sale. Contract of work & materials. Sale on approval. Hire-Purchase agreement. Business Sharing of Profits

The most important element in partnership is:

101

To engage a lawyer to defend actions against firm. which of the following partners is not liable by holding out. Misrepresentation. To borrow money for the purposes of firm. Agreement Business to be carried on by all or any of them acting for all. 102 . (a) (b) (c) (d) 79. Undue Influence. An agreement enforceable by law is a __________.(c) (d) 77. Obligation. (a) (b) (c) (d) Coercion. Fraud. (a) (b) (c) (d) 78. (a) (b) (c) (d) 81. Lawful Promise. Accounts are settled Partners dues are paid off Public notice is given The registrar strikes off the name To buy or sell goods on accounts of partners. Contract. Promise. A wrong representation when made without any intention to deceive the other party amounts to ____________. even if the public notice of retirement is not given? (a) (b) (c) (d) Active partner Sleeping partner Representative of deceased partner Both (b) and (c) PART II 80. To enter into partnership on behalf of firm. On dissolution the partners remain liable to till Which of the following acts are not included in the implied authority of a partner? After retirement from firm.

An agreement. (a) (b) (c) (d) Valid Void Voidable Contingent 87. A mistake as to a law not in force in India has the same effect as ______________. is ___________. (a) (b) (c) (d) void voidable valid illegal 83. Where the consent of both the parties is given by mistake. This agreement is ___________. which prevents a person from carrying a lawful business. the contract is____________. (a) (b) (c) void valid voidable 103 . the contract is ___________ (a) (b) (c) (d) 85. When the consent of a party is obtained by coercion undue influence. Here Bs consent is obtained by __________. A threatens to kill B if he does not agree to sell his scooter to him for Rs. fraud or misrepresentation. 1000 only. A agrees to sell his car to B at a price which B may be able to pay.82. (a) (b) (c) (d) 86. (a) (b) (c) (d) undue influence fraud coercion none of these void valid voidable illegal mistake of fact mistake of Indian law fraud misrepresentation 84.

For this rule to apply. In case of sale on approval.(d) 88. Voidable. In case of sale of unascertained goods. (a) (b) (c) (d) 91. Illegal. (a) (b) accepts the goods adopts the transaction 104 . (a) (b) (c) (d) wagering agreement contingent contract quasi contract uncertain agreement. Valid. the property passes to the buyer at the time of making the contract. (a) (b) (c) (d) 90. Agreement-the meaning of which is uncertain is ________. (a) (b) (c) (d) ascertained appropriated to the contract weighed and measured both (a) and (b) 93. the goods must be ___________ (a) (b) (c) (d) specific in a deliverable state physically transferred to buyer both (a) and (b) 92. In case of unconditional contract of sale. Ownership of goods Possession of goods Custody of goods both (b) and (c) 89. contingent An agreement to pay money or money’s worth on the happening or non-happening of a specified uncertain event is a ____________. Void. The goods are at the risk of a party who has the ____________. the ownership is transferred to the buyer when he _________. the ownership is transferred to the buyer when the goods are _________.

(a) (b) (c) (d) As given by express contract By majority of partners In absolute good faith All of the above. A partner can retire on_____________ Death of partner has the effect of____________ The reconstitution of the firm takes place in case of __________ A partner may be expelled from the firm on the fulfillment of the condition that the expulsion power is exercised ______________. any time during auction before fall of hammer before payment of price cannot withdraw at all. 105 . Admission of a partner Retirement of a partner Expulsion or death of a partner All of the above.(c) (d) 94. The bidder at an auction sale can withdraw his bid __________. Reaching the age of superannuation On the balance in the capital account reaching a certain amount In accordance with the Partnership Deed On the condition of his nominee becoming a partner Dissolving the firm Result in continuance of the business of the firm His heirs joining the firm Computation of profits upto the date of death. (a) (b) (c) (d) 95. (a) (b) (c) (d) 97. fails to return goods in all the above cases. (a) (b) (c) (d) 96. (a) (b) (c) (d) 98.

100. Which of the following statements is/are true? (a) (b) (c) (d) Builder can reject the goods and can claim damages.PART III 99. believing it is made of pearls whereas in fact it is made of imitation pearls of no value. A can claim damages. A cannot cancel the contract. 106 . Builder has to accept the goods. A timber merchant agreed to supply best teak at a certain agreed price to a builder. A contracts with B to buy a necklace. Later the merchant supplied timber which was identified as ordinary class of timber and demanded the payment from the builder. A can cancel the contract alleging undue influence. Which of the following statement is correct? (a) (b) (c) (d) A can cancel the contract alleging fraud. Builder has to pay the price by taking delivery of teak wood. Timber merchant cannot plead the doctrine of caveat emptor. Now A wants to cancel the contract on the basis of fraud. B knows that A is mistaken and takes no steps to correct the error.

Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0.25 mark for each wrong answer. Questions 117 to 132 are Fill in the blanks type and carry +1 mark for each correct answer and -0. The production techniques are backward. The green revolution is also known as: 103. wheat revolution rice revolution maize revolution forest revolution 102. Which of the following statements is correct? (a) (b) (c) (d) (a) (b) (c) (d) Agriculture occupies 10 percent population of India.25 mark for each wrong answer. Which of the following has been specifically established to meet the requirements of credit of the farmers and villagers? (a) (b) (c) (d) (a) (b) (c) (d) ICICI bank Regional Rural Banks State Bank of India EXIM bank NNP ÷ population Total capital ÷ population Population ÷ NNP None of the above.25 mark for each wrong answer. Per capita national income means .25 mark for each wrong answer. (iv) PART I 101. Nearly 5 percent population of India is below the poverty line. None of the above. 107 104.SECTION – C : GENERAL ECONOMICS (50 MARKS) (i) (ii) (iii) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0.

none of the above. None of the above both of the above (a) & (b) 108 106.105. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) birth rate rises. birth rate rises. In the theory of demographic transition in the last stage. population which is forced to work. hydel electricity. Fiscal Responsibility and Budget Management. capital markets should be sufficiently developed. labour force which is unemployed unemployment rates on the basis of current daily status were same as those on the basis of usual status. Electricity generated from radio active elements is called: 109. atomic energy. The pre-condition for privatization to be successful requires: . unemployment rates on the basis of current daily status were higher than those on the basis of usual status. Foreign Revenue and Business Management. FRBM Act stands for: 110. labour force which is employed. unemployment rates on the basis of current daily status were lower than those on the basis of usual status. birth rate falls. tidal energy. Work force refers to that part of: 107. thermal electricity . Foreign Responsibility and Budget Management liberalization and de-regulation of the economy. death rate rises. Fiscal Revenue and Budget Management. birth rate falls. death rate falls. population which is unemployed. death rate rises. death rate falls. According to the latest NSSO survey (2004): 108.

Narrow money refers to: 115. 1991: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) the mandatory convertibility clause is applicable for all term loans.111. Under the new industrial policy. the mandatory convertibility clause is no longer applicable. policy relating to non banking financial institutions. Banks help in creating credit money. Banks mobilize savings and make them available for production. the mandatory convertibility clause is applicable for term loans of more than 10 years. M1 M2 M3 M4 Banks encourage saving habits among people. serves as both medium of exchange and store of value. policy relating to money and banking in a country. none of the above. Money in traditional sense: 114. serves neither as medium of exchange and store of value. serves as a medium of exchange. policy relating to public revenue and public expenditure. Who is the official “lender of the last resort” in India? 109 . Fiscal policy means: 113. None of the above. SBI PNB RBI OBC 112. Which of the following statements about banks is incorrect? 116. the mandatory convertibility clause is applicable for term loans of less than 10 years. serves as a store of value.

At present. 119. At present only _________________ industries are reserved for the public sector. 110 . 121.PART II 117. Rourkela and Durgapur were set up in the -------------------. 122. The annual addition to the country’s population is almost equal to the total population of ------------. (a) (b) (c) (d) (a) (b) (c) (d) increased decreased remained constant remained above 50 percent First plan Second plan Third plan Fourth plan 118. Three steel plants in Bhilai. India’s passing through _________ stage of demographic transition. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) Bangladesh Australia Japan China fourth third first second 5 7 8 3 defence drugs and pharmaceuticals banks 120. Over the planning period the share of industrial sector in the GDP of India has ___________. 100 percent FDI is allowed in ______________ .

negative but greater than -1. A study of how increases in the corporate income tax rate will affect the national unemployment rate is an example of ------------------------. positive and greater than 1. seasonal. 127. 126.(d) insurance 123. voluntary structural frictional technical 14 60 47 82 124. their unemployment is termed as ________________. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) structural. some workers tend to be replaced by machines. normative economics. When due to introduction of new machinery. 125. If the marginal (additional) opportunity cost is a constant then the PPC would be -------------(a) (b) (c) (d) (a) (b) (c) straight line convex backward leading concave positive and less than 1. mechanical. descriptive economics. technological. Rural bank branches constitute ______ percent of total bank branches in India. its income elasticity of demand is ---------------------. microeconomics. . (a) (b) (c) (d) macroeconomics. Most of the unemployment in India is ________________. 111 128. If a good is a luxury.

130 . Short-run average cost curve. the demand curve will be -------------------. The suggested remedy would only work if the demand for air travel had a price elasticity of ------------(a) (b) (c) (d) zero greater than zero but less than one.is also known as planning curve. downward-sloping to the right. When ________________________________. one greater than one 132. In the case of a Giffen good. zero. we know that the firms must be producing at the minimum point of the average cost curve and so there will be productive efficiency . ------------------. Long run average cost curve. Average variable cost curve. (a) (b) (c) (d) AC = AR MC = AC MC = MR AR = MR 112 . If the airlines are making losses on passenger traffic they should lower their fares. 129. upward-sloping to the right. horizontal. Average total cost curve. backward falling to the left .(d) (a) (b) (c) (d) (a) (b) (c) (d) 131.

It is a powerful body which aims at making the whole world a big village where there is a free flow of goods and services and there is no barrier to trade. The World Trade Organisation came into existence on 1 st January 1995. At its heart are the WTO agreements.PART III Figure 1 give the production possibilities frontier of an economy that produces two types of goods. A movement from point E to point B. A movement from a point inside the PPF to a point on the PPF. 134. A rightward shift of the PPF. Read the figure and answer questions 133-135 133. A movement down along the PPF. Which of the following illustrates a decrease in unemployment using the PPF? Read the para below and answer Qus 136-137. guns and bread. A movement from point F to point C. It was the World Trade Organisation(WTO) which gave a real push to the process of globalization. Which of the following clearly represents a movement toward greater productive efficiency? (a) (b) (c) (d) (a) (b) (c) (d) A movement from point A to point B. A movement from point C to point D. Which point on the PPF shows a productively efficient level of output? (a) A (b) B (c) C (d) All of the above. 135. A movement from a point on the PPF to a point inside the PPF. negotiated and signed by the bulk of the world’s 113 .

. Use Table 2 to answer questions 138-141. It is the main organ for implementing the Multilateral Trade Agreements. 136. 137. What of the following is false about WTO? PART IV A competitive firm sells as much as of its product as it chooses at a market price of Rs 100 per unit. It is global in its membership.trading nations. It means integrating the domestic economy with the world economy None of the above. Its fixed cost are Rs 300 and its variable costs (in rupees) for different levels of production are shown in the following table. Table 2 Quantity 0 5 10 15 20 25 30 35 40 45 50 Variable cost 0 250 470 700 980 1350 1850 2520 3400 4530 5950 Fixed cost Total cost Average variable cost Average total cost Marginal cost - 114 . Only countries having more than prescribed level of total GDP can become its members. What is globalization? (a) (b) (c) (d) (a) (b) (c) (d) It refers to the transfer of assets from public to private ownership. It has far wider scope than GATT. It refers to the disposal of public sector’s equity in the market.

4. he raises the price to Rs 15 per pen. 7. 22 Rs.880 15 units 30 units 35 units 50 units shut down produce 5 units produce 20 units continue to produce the same number of units as before the drop in price. the firm should produce 141.138. Following the price rise: ♦ ♦ ♦ Only 60 pens were sold every month.50 Rs. 10 per pen to Rs 15 per pen is equal to: (a) (b) (c) (d) 2. The number of refills bought went down from 200 to 150. In the table marginal cost per unit that corresponds to 40 units of production is 140. 139.85 Rs.66 115 . 85 Rs.176 Rs.0 1.66 2 . The price elasticity of demand when gel pen’s price increases from Rs. If the market price drops from Rs 100 to Rs 56. the average total cost is (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Rs.50 Rs.40 Rs.5 1. The number of ink pen customers bought went up from 90 to 180 per month. At this price he can sell 120 per month. 142. the firm’s short run response should be Read the following data and answer Questions number 142-147 A shopkeeper sells gel pen at Rs10 per pen. After some time. When production is 40 units. 92. To maximize profit.

0. -2. We can say that gel pen in economics sense is a/an 148.50. + 0. If the owner could work for another company for Rs. Suppose income of the residents of locality increases by 50% and the quantity of gel pens demanded increases by 20%. What is income elasticity of demand for gel pen? (a) (b) (c) (d) (a) (b) (c) (d) 0.000. It is elastic.66. we would conclude that: (a) (b) the firm is incurring an economic loss. Suppose that a sole proprietorship is earning total revenues of Rs.71 + 0.4 0. . It is perfectly inelastic. 145. The cross elasticity of monthly demand for refills when the price of gel pen increase from Rs 10 to Rs.000 and is incurring explicit costs of Rs 90.05.120.6 1. implicit costs are Rs.0. + 2.15 is equal to: (a) (b) (c) (d) .50 luxury good inferior good normal good nothing can be said. 147. 116 . What can be said about the price elasticity of demand for pen? 146 . -1. It is inelastic.09.25. It is perfectly elastic. 144.000 a year.19. The cross elasticity of monthly demand for ink pen when the price of gel pen increases from Rs 10 to Rs 15 is equal to: (a) (b) (c) (d) (a) (b) (c) (d) + 1.38.000.143.90.25 1.09.

25.100. the individual is earning an economic profit of Rs. What is the total output when 2 hours of labour are employed? (a) (b) (c) (d) (a) (b) (c) (d) 160 200 360 540 120 160 200 180 150. Table 3 Hours of Labour 0 1 2 3 Total Output --300 ________ 720 Marginal Product --300 240 ________ 149. What is the marginal product of the third hour of labour? 117 .000. Use Table 3 to answer questions 149-150.000.(c) (d) the total economic costs are Rs.

Ungrouped data. Half of the range. Two variables at different points of time. (a) or (b). Two variables. Grouped data. Bivariate Data are the data collected for 154. More than two variables. None.25 mark for each wrong answer.SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer. Both (a) and (b).25 mark for each wrong answer. An experiment is known to be random if the results of the experiment 118 . Two variables at the same point of time. None of these. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. Quantitative information. Questions 171 to 200 are numerical based questions. 152. Both. For any two numbers SD is always 153. Can not be predicted. Statistics is concerned with (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) Qualitative information. Twice the range. Square of the range. (iii) PART I 151. Karl Pearson’s coefficient is defined from 155. which have answers as numerical value and carry + 1 mark each for correct answer and – 0.

Standard error can be described as 159. Exists only in theory. If b2– 4ac >0 then the roots are ______ and ______ . 3000 for 15 years at 4. Unimodal. Does not exist. (a) or (b). 32908. Multi-modal.41 Rs.41 Rs. Can be split into further experiments. Poisson distribution may be 158.41 None of these. Both (b) and (c). Can be selected at random. The error committed in sampling. 23809. Exists in real life.(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Can be predicted. A theoretical probability distribution 157. The error committed in sample survey. Equal Real. The present value of an annuity of Rs.5% p. The error committed in estimating a parameter. P01 is the index for time 160. (a) (b) Real. 156. Unequal 119 .a CI is PART II 161. Standard deviation of a statistic. 1 on 0 0 on 1 1 on 1 0 on 0 Rs. Bimodal. 32809.

(a) (b) (c) (d) x28 1/x 1/x28 1/x30 165.__________.60000 and Rs.(c) (d) Imaginary. Equal 162. to 31 terms is _______ . (a) (b) (c) (d) 7500 8000 7750 7800 163. …. 1.6500 an investment of Rs.5750 Rs. 120 . If an investment of Rs. The sum of all natural numbers between 200 and 400 which are divisible by 7 is ______.70000 respectively yields an income of Rs. x. (a) (b) (c) (d) (a) (b) (c) (d) 7730 8729 7729 8730 2 3 4 5 166. An Ogive can be prepared in ______ different ways. (a) (b) (c) (d) 4! × 3! 4 P4 C4 3 × 4 P4 4 164. In ______ ways can 4 Americans and 4 English men be seated at a round table so that no 2 Americans may be together. Unequal Imaginary.90000 would yield income of Rs. The last term of the series x2.

167. For finding the degree of agreement about beauty between two Judges in a Beauty Contest. Probability density function is always ______ . (a) (b) (c) (d) (a) (b) (c) (d) A discrete variable A continuous variable An attribute All these Range Mean Deviation Standard Deviation All these measures 168. PART III 171. ______ is an absolute measure of dispersion. (a) (b) (c) (d) (a) (b) (c) (d) Scatter diagram Coefficient of rank correlation Coefficient of correlation Coefficient of concurrent deviation Greater than 0 Greater than equal to 0 Less than 0 Less than equal to 0 170. Mutually inclusive classification is usually meant for______ . The value of (8/27)1/3 is (a) (b) (c) (d) (a) (b) (c) (d) 2/3 3/2 2/9 None of these. The equation –7x + 1 = 5–3x will be satisfied for x equal to . 2 –1 1 None of these. we use______ . 121 172. 169.

1640? (a) (b) (c) (d) Rs.6355. Given that (1.500 is made annually for 7 years at interest rate of 14% compounded annually. 19000 176.173. ? 175.a. The numbers are (a) (b) (c) (d) (a) (b) (c) (d) 17 and 15 12 and 10 27 and 25 None of these.5023. 4 5 6 7 A man has 5 friends. 17000 Rs. In how many ways can he invite one or more of his friends to dinner? (a) (b) (c) 29 30 31 122 .25 Rs.6535.5365. 18 years 18.25 Rs. 16000 Rs. Find n if nP3 = 60 (a) (b) (c) (d) 178. Find the future value of an annuity of Rs.85000 amount to Rs.157675 at 4.25 177.14)7 = 2. In what time will Rs. (a) (b) (c) (d) Rs.5 % p. 18000 Rs. The sum of two numbers is 52 and their difference is 2.5635.25 Rs. On what sum will the compound interest at 5% per annum for two years compounded annually be Rs.5 years 19 years 20 years 174.

8. 18 None of these. (a) (b) (c) (d) 184. The 4 arithmetic means between –2 and 23 are 180. 8 drink tea but not coffee and 13 like tea. Evaluate: lim (a) (b) (c) (d) 183. 18 18.. 53. None of these. 54. 3. 16. 13.… 16. If y = x (x –1 ) (x – 2) then (a) 3x2 – 6x +2 dy is dx 123 . 36. lim x →1 x 2 − 6x + 9 . The number of children drinking coffee but not tea is (a) (b) (c) (d) 6 7 1 None of these. 13 3. x→3 182. 24. The second term of a G P is 24 and the fifth term is 81.. 24. The series is 181... 36. 8. 36. 8. 54. In a group of 20 children.(d) (a) (b) (c) (d) (a) (b) (c) (d) 32 3. x−3 –1 0 1 2 x2 − x is equal to x −1 –3 1/3 3 None of these. 179. 24. 13.

What is the median for the following observations? 5. 3 − 5x is 3 + 5x 185. 6. 11. 1 0 186. The derivative of (a) (b) (c) (d) (a) (b) (c) (d) 30 / (3 +5x)2 1 / (3 +5x)2 –30 / (3 +5x)2 None of these. Integration of 3 – 2x – x4 will become 187. (a) (b) (c) 6 7 8 124 . 9. Evaluate ( 2x 2 − x 3 ) dx and the value is (a) (b) (c) (d) Value (a) (b) (c) (d) 56 23 15 8 4/3 5/12 – 4/3 None of these. of observations: 189. 8. – x2 – x5 / 5 3x – x2 – x5 / 5 3x – x2 x5 / 5 +k None of these. Find the number of observations between 250 and 300 from the following data : No. : More than 200 More than 250 More than 300 More than 350 56 38 15 0 188.(b) (c) (d) –6x + 2 3x2 + 2 None of these. 4.

25. 9.y) is equal to 194. 5. 193. 20. 9. 13 10. 10. 9. If the range of x is 2. 5. What is the standard deviation of 5. If an unbiased die is rolled once. The third decile for the numbers 15. 11. 9.50 2 6 –6 44 190. If A.(d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) None of these. 10.70 11 11. When r = 0 then cov(x. 18. 10.50 0 125 . what would be the range of –3x +50 ? 192. B and C are mutually exclusive independent and exhaustive events then what is the probability that they occur simultaneously? (a) (b) (c) 1 0. 10? 14 42 4.50 8 +1 –1 0 None of these. 12 is 191. the odds in favour of getting a point which is a multiple of 3 is (a) (b) (c) (d) 1:2 2:1 1:3 3:1 195.

24 4. then its mean deviation is If 2 log x = 4 log 3.50 0. (a) (b) (c) (d) (a) (b) (c) (d) 200.80 3 9 2 None of these. 11} is lim (a) (b) (c) (d) 126 . 9 6 8 None of these. 197.05. ex + 1 is evaluated to be ex + 2 0 –1 1 None of these.24 4. 8. The number of subsets of the sets {6. x →∞ 0.(d) Any value between 0 and 1 196.26 6. what is the probability that the other child is also a girl ? (a) (b) (c) (d) (a) (b) (c ) (d) 198. If the quartile deviation of a normal curve is 4. the x is equal to 199.75 1/3 2/3 5. It is given that a family of 2 children has a girl.

Please follow the instructions given in each section carefully and answer the questions.25 mark for each wrong answer.25 mark for each wrong answer.25 mark for each wrong answer.BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT-4/2006 Time : 4 hours The test is divided into four sections. opening stock consists of (a) (b) (c) (d) Raw materials Work-in-progress Finished goods All of the above 127 . SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) (i) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 23 to 60 are numerical based questions. Maximum Marks : 200 (iii) (iv) PART I 1. Questions 11 to 20 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. which have answers as numerical values and carry + 1mark each for correct answer and – 0. In the books of manufacturing concern. Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0.

Posting. 128 . which has been achieved. Business entity concept Dual aspect concept. Owners. When adjusted purchase is shown on the debit column of the trial balance then (a) (b) (c) (d) Both opening stock and closing stock do not appear in the trial balance Closing stock is shown in the trial balance and not the opening stock Opening stock is shown in the trial balance and not the closing stock Both opening and closing stock appear in the trial balance Government. 5. is based on (a) (b) (c) (d) Money measurement concept. Fixed assets are acquired for use in the business for earning revenues and are not meant for resale. Management. If the cheque is not presented for the payment upto the date of the preparation of the Bank Reconciliation Statement. Going concern concept. “Business unit is separate and distinct from the person who supply capital to it”. When a receiver or liquidator has been appointed in case of as a company which is to be liquidated. When an enterprise is declared sick. None of the above. Employees.2. 3. Following is the example of external users: (a) (b) (c) (d) 4. 7. then the balance as per Pass Book will be (a) Higher than the balance shown by the cashbook by the amount of unpresented cheque. or to be achieved shortly. If two or more transactions of the same nature are journalised together having either the debit or the credit account common is known as (a) (b) (c) (d) Compound journal entry. Separate journal entry. State the case where the going concern concept is applied? (a) (b) (c) (d) 6. When an enterprise was set up for a particular purpose.

None of the above At the time of preparation of the trial balance. Same as shown by the cashbook. Credit note. . Proforma invoice None of the above. (a) (b) (c) (d) 12. Drawer.(b) (c) (d) 8. (a) (b) (c) (d) 9. A__________is sent to a customer when he returns the goods. After the preparation of final accounts. (a) (b) (c) (d) Lower than the balance shown by the cashbook by the amount of unpresented cheque. 129 Noting charges are paid at the time of _______of a bill. All of the above Trading account. (a) (b) (c) (d) 10. Drawee. In the next accounting year. Profit and loss account. Retirement. Without waiting the accounting year to end. they should be rectified Parties to a bill of exchange are All the expenditures and receipts of revenue nature go to PART II 11. (a) Debit note. (a) (b) (c) (d) 13. Renewal Dishonour None of the above. Balance sheet. Either to (a) or (b) Whenever errors are noticed in the accounting records. Payee. Revenue. Depreciation of fixed assets is an example of ____________expenditure.

Revaluation method. Replacement method. Deferred revenue. Partners’ capital accounts. Creditors ledger. (a) (b) (c) (d) Working hours method. (a) (b) (c) (d) 15. 130 . (a) (b) (c) (d) Profit and loss adjustment account. General ledger. (a) (b) (c) (d) 18. A’s account Cash account B’s account. General ledger adjustment account(s) is/are opened in__________. (a) Ledgers. Production units method.(b) (c) (d) 14. Both (a) and (c) 17. An amount of Rs.200 received from A credited to B would affect____________ In___________ method. Capital None of the above. Interest on drawings is________for the business. Expense Gain None of the three. 19. (a) (b) (c) (d) 16. General reserve at the time of admission of a new partner is transferred to __________. Trial balance. A suspense account facilitates the preparation of __________even when the_______has not tallied. Expenditure. Debtors ledger. depreciation is charged by allocating depreciable cost in proposition of the annual output to the probable life-time output. Accounts of A and B. Revaluation account Memorandum revaluation account.

(b) (c) (d) 20. (a) (b) (c) (d)

Financial statements; Trial Balance. Trial balance; Financial statements. Journal; Trial balance. Costing. Balancing. Journalizing Posting

Writing of transaction in the ledger is called________________.

PART III
21. Accounting has certain norms to be observed by the accountants in recording of transactions and preparation of financial statements. These norms reduce the vagueness and chances of misunderstanding by harmonizing the varied accounting practices. These norms are (a) (b) (c) (d) 22. Accounting regulations. Accounting guidance notes. Accounting standards. Accounting framework.

RPG Ltd. purchased equipment from PQR Ltd. for Rs.50,000 on 1st April, 2005. The freight and cartage of Rs.2,000 is spent to bring the asset to the factory and Rs.3,000 is incurred on installing the equipment to make it possible for the intended use. The market price of machinery on 31st April, 2006 is Rs.60,000 and the accountant of the company wants to disclose the machinery at Rs.60,000 in financial statements. However, the auditor emphasizes that the machinery should be valued at Rs.55,000 (50,000+2,000+3,000) according to: (a) (b) (c) (d) Money measurement principle. Historical cost concept. Full disclosure principle. Revenue recognition.

PART IV
23. Mr. A started a business on 1st January 2005 with Rs. 5,00,000. During the year he bought goods worth Rs. 1,00,000 on credit and sold 80% of the same goods at profit of 20% on cost. At the end of the year 2005, the amount of opening stock to be shown in the trial balance of Mr. A will be (a) Rs. 20,000

131

(b) (c) (d) 24.

Rs. 24,000 Rs. 1,00,000 Nil

Sundry debtors on 31st March 2006 are Rs.55,200. Further bad debts are Rs.200. Provision for doubtful debts are to be made on debtors @ 5% and also provision of discount is to be made on debtors @ 2%. The amount of provision of doubtful debts will be (a) (b) (c) (d) Rs.1,045 Rs.2,750 Rs.1,100 Rs.2,760

25.

A firm purchases a 5 years’ lease for Rs. 40,000 on 1st January. It decides to write off depreciation on the Annuity method, presuming the rate of interest to be 5% per annum. The annuity for it is 0.230975. The amount of annual depreciation will be (a) (b) (c) (d) Rs. 8,000 Rs. 2,000 Rs. 9,239 Rs. 6,000

26.

The balance of machine on 31st March 2006 is Rs.72,900. The machine was purchased on 1st April 2003 charging depreciation @10% p.a. The cost price of the machine as on 1st April 2003 would be (a) (b) (c) (d) Rs.1,00,000 Rs.90,000 Rs.81,000 Rs.72,900

27.

On May 01, 2003, Y Ltd. issued 7% 40,000 convertible debentures of Rs.100 each at a premium of 20%. Interest is payable on September 30 and March 31, every year. Assuming that the interest runs from the date of issue, the amount of interest expenditure debited to profit and loss account for the year ended March 31, 2004 will be (a) (b) (c) (d) Rs.2,80,000 Rs.2,33,333 Rs.3,36,000 Rs.2,56,667

132

28.

A company cannot issue redeemable preference shares for a period exceeding (a) (b) (c) (d) 6 years 7 years 8 years 20 years

29.

E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro rata basis. The amount payable on application is Rs.2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be (a) (b) (c) (d) 60 shares; Rs.120 340 shares; Rs.160 320 shares; Rs.200 300 shares; Rs.240

30.

Z Ltd. issued 10,000 shares of Rs.10 each. The called up value per share was Rs.8. The company forfeited 200 shares of Mr. A for non-payment of 1st call money of Rs.2 per share. He paid Rs.6 for application and allotment money. On forfeiture, the share capital account will be _________. (a) (b) (c) (d) Debited by Rs.2,000 Debited by Rs.1,600 Credited by Rs.1,600 Debited by Rs. 1,200

31.

R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006 and profits for the accounting year 2005-2006 were Rs. 24,000. How much share in profits for the period 1st April 2006 to 30th June 2006 will be credited to D’s Account. (a) (b) (c) (d) Rs. 6,000. Rs. 1,500. Nil. Rs. 2,000.

32.

A company sends its cars to dealers on ‘sale or return’ basis. All such transactions are however treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had cost Rs.55,000 each have been sent on ‘sale or return’ and have been debited to customers at Rs.75,000 each, cost of goods lying with the customers will be (a) (b) Rs.1,10,000. Rs. 55,000.

133

(c) (d) 33.

Rs. 75,000. None of the above.

A second hand car is purchased for Rs. 10,000, the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will be (a) (b) (c) (d) Rs. 10,000. Rs. 10,500. Rs. 11,500. Rs. 12,700.

34.

A bill of 12,000 was discounted by A with the banker for 11,880. At maturity, the bill returned dishonoured, noting charges Rs 20. How much amount will the bank deduct from A’s bank balance at the time of such dishonour? (a) (b) (c) (d) 12,000 11,880 12,020 11,900

35.

A purchased goods costing 42500. B sold goods costing Rs 40000 at Rs 50000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be: (a) (b) (c) (d)

Rs. 3125
Rs. 2500 Rs. 3000 None of the above

36.

Mr. X is a partner in a firm. He withdraws Rs.200 at the end of each month. If rate of interest is @ 5% p.a., the interest on drawings is (a) (b) (c) (d) Rs.65 Rs.55 Rs.60 Rs.50

37.

Mohan and Sohan are partners in a firm sharing profits and losses in the ratio 5:3. The firm earned profits during last four years amounting Rs.18,000, Rs.8,500 (loss), Rs.30,000 and Rs.16,500 respectively. The value of goodwill on the basis of one and a half year’s purchase of average profits of last four years will be (a) Rs.14,000

134

(b) (c) (d) 38.

Rs.27,375 Rs.21,000 Nil

A to whom 100 shares of Rs.10 each was allotted at par, paid Rs.3 on application, Rs.3 on allotment but could not pay the first and final call money of Rs.4. His shares were forfeited by the directors. The amount to be credited to shares forfeited account will be (a) (b) (c) (d) Rs.500 Rs.400 Rs.600 Rs.1,000

39.

Balance as per cash book is Rs.5,000. Cheques issued but not presented for payment Rs.2,000 and cheques sent for collection but not collected Rs.1,500. The Bank had wrongly debited the account of firm by Rs.20. Balance as per pass book will be (a) (b) (c) (d) Rs.5,500 Rs.6,300 Rs.5,700 Rs.8,300 Dr. 30,000 9,000 31st December will be 31st March and 30th September) Cr.

40.

Following are the extracts from the trial balance of a firm as on 31st December, 2005: Particulars Investments in 6% Debentures of A Ltd. (Interest Payable on Interest on investments The amount of accrued interest on (a) (b) (c) (d) Rs.1,800 Rs.900 Rs.450 None of the above. Rs. 30,000 5,000

41.

Following are the extracts from the Trial Balance of a firm was on 31st December, 2005. Particulars Sundry debtors Bad debts Additional information: (i) After preparing the trial balance, it is learnt that a debtor, Mohan became

135

insolvent and therefore, the entire amount of Rs.3,000 due from him was irrecoverable. (ii) 10% provision for bad and doubtful debts is generally created. The amount of provision for bad and doubtful debts to be charged to profit and loss account will be (a) (b) (c) (d) 42. Rs.3,000. Rs.2,700. Rs. 2,500. None of the three.

A and B are partners in a firm. During the year 2006, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will be (a) (b) (c) (d) Rs.650. Rs.975 Rs.900 Rs.1,800

43.

A and B are partners in a firm sharing profits and losses in the ratio of 3:2. They have invested capitals of Rs.40,000 and Rs.25,000 respectively. As per the partnership deed, they are entitled to interest on capital @ 5% p.a. before dividing the profits. During the year, the firm earned a profit of Rs.3,900 before allowing interest. The net profits will be apportioned as (a) (b) (c) (d) Rs.260 to A and Rs.390 to B. Rs.390 to A and Rs.260 to B. Rs.2,340 to A and Rs.1,560 to B. Rs.1,560 to A and Rs.2,340 to B.

44.

Advertisement expenditure of Rs.10,000 paid on 30.12.2006, the advertisement in respect of which has appeared in the magazines of January, 2007. This expenditure will be (a) (b) (c) (d) Shown as ‘expense’ in the financial statements of the year ended 31st December, 2006. Shown as ‘liability’ in the financial statements of the year ended 31st December, 2006. Shown as prepaid expense in the financial statements of the year ended 31st December, 2006. None of the three.

136

45.

Our acceptance to Mr. A for Rs.8,000 renewed for 3 months on the condition that Rs.2,000 is paid in cash immediately and the remaining balance to carry out interest at 18% p.a. The amount of the renewed bill of exchange will be (a) (b) (c) (d) Rs.6,270 Rs.8,270 Rs.8,000 None of the three. 1st

46.

On January, 2005, Alpha Ltd. purchased a machine for Rs.50,000 and spent Rs.4,000 on its carriage and Rs.2,000 on its installation. On the date of purchase, it was estimated that the effective life of the machine will be 10 years and after 10 years its scrap value will be Rs.6,000. Depreciation is charged on straight line basis. Depreciation for the year 2005 will be (a) (b) (c) (d) Rs.4,600 Rs.5,000 Rs.4,800 Rs.4,500

47.

Ram and Gopal are partners sharing profits and losses in the ratio of 2:1. Gopal gave a loan of Rs.12,000 to the firm. They did not have any specific agreement about interest on loan mentioned in the partnership deed. Gopal claims interest on loan @ 10% p.a. The interest on loan as per rules of Partnership Act, 1932 will be: (a) (b) (c) (d) Rs.840 Rs.820 Rs.720 Rs.960

48.

Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs.40,000 and Rs.50,000 respectively on the 1st of July, 2005. Interest on capital is to be charged @ 10% p.a. Book of account are to be closed on 31st December, 2005. Interest on capital is (a) (b) (c) (d) Rs.2,500 Rs.2,000 Rs.4,500 None of the above.

49.

A firm has on average profit of Rs.60,000. Rate of return on capital employed is 12.5% p.a. Total capital employed in the firm was Rs.4,00,000. Goodwill on the basis of two years purchase of super profits is (a) Rs.20,000
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(b) (c) (d) 50.

Rs.15,000 Rs.10,000 None of the above.

A transport company purchases a truck for Rs.2,00,000 on 1st January, 2005. It charges 20% depreciation p.a. according to w.d.v. method. The track was sold on 1st July, 2006 for a sum of Rs.1,60,000. The profit or loss on sale of truck is (a) (b) (c) (d) Loss of Rs. 16,000. Profit of Rs. 16,000. Profit of Rs. 12,000. Loss of Rs. 12,000. Rs.50,000 Rs.20,000 Rs.3,600

51.

Ram strated business with cash Purchased goods from Mohan on credit Sold goods to Shyam costing Rs.3,000 for cash The accounting equation on the basis of these transactions will be (a) (b) (c) (d)

Assets Rs.70,600 = Laibilities Rs.3,600+Owner’s equity Rs.67,000 Assets Rs.70,600 = Liabilities Rs.50,600+Owner’s equity Rs.20,000 Assets Rs.70,600= Liabilities Rs.20,000+Owner’s equity Rs.50,600. None of the three.

52.

Cost of physical stock on 15.4.06 was Rs.3,00,000. Sales amounting Rs.1,00,000 and purchases worth Rs.50,000 were held between 31.3.06 and 15.4.06. Goods are sold at a profit of 20% on sales. Value of inventory as on 31.3.06 is (a) (b) (c) (d) Rs.3,50,000. Rs.2,70,000. Rs.3,30,000. Rs.3,00,000.

53.

A and B entered into a joint venture agreement to share the profits and losses in the ratio of 2:1. A supplied 100 ratio sets worth Rs.1,00,000 to B incurring expenses of Rs.5,000 for freight and issuance. B sold the 95 ratio sets for Rs.1,20,000. 5 radio sets were taken over by B. The profit/loss on venture will be (a) (b) (c) (d) Profit of Rs.20,000. Profit of Rs.15,000. Loss of Rs.20,000. Profit of Rs.20,250.
138

13.V. 600 400 900 400 Price per unit Rs. 55.000 1.1. 1.650 Rs.375 Rs. Nidhi 139 .1.00. (a) (b) (c) Sales Returns A/c To Ramesh Ramesh To Sales Return A/c Ramesh Sales Returns A/c To Suspense A/c (d) None of the above.11.50 Dr.000 Rs.000.500 were incurred by him.500. He sold the computer at 20% margin on selling price.12.000 Dr.14.500 Rs. A cheque of Rs. 1. Priya sold goods to Nidhi for Rs.54. The rectifying journal entry will be Rs.000 Rs. 5 5. Record of purchase of T. The sales value will be (a) (b) (c) (d) Rs. sets on 15 March.1. sets.575.000.800 57.1. A purchased a computer costing Rs. Rs. 1.000 2.000 and miscellaneous expenses Rs.000 received from Ramesh was dishonoured and had been posted to the debit of sales returns account.1. Priya will grant 5% discount to Nidhi.V. Quantity Units March 4 March 10 Record of issues March 5 March 12 (a) (b) (c) (d) Rs. as per LIFO will be 56. Date The value of T.000 1.000 Dr. Dr.10. None of the three. Repairing expenses Rs.1.000 1.

Rs. 60. Rs. Rs.50.95.000.000. 5th May.16. Rs. 2006.167 Rs. Rs. 2006.000 for 3 months.000. 2006.500. 10.93.800.00. The date of acceptance is 2nd April. The due date of the bill will be (a) (b) (c) (d) 1st May. 28th April. 2006.000 A bill is drawn on 28th March. Rs. None of the three. 2nd May. The amount of such remittance will be (a) (b) (c) (d) Rs. 12.12. 2006.000.000. The amount of the bill will be (a) (b) (c) (d) 58. Rs.90. 10.a.24. The sales will be of (a) (b) (c) (d) 140 . Goods costing Rs.32. Mohan got the bill discounted at 12% p. 59. Mohan drew a bill on Shyam for Rs. Rs.requested Priya to draw a bill.1.25. Porceeds are to be shared equally.000 were sold at 25% profit on selling price.250. Rs.333. 2006 for one month after sight. and remits required proceeds to Shyam.

Offer made to a definite person. Cross Offers means (a) (b) (c) (d) 62. Not enforceable in a court of law. An auctioneer displays a TV. (iii) PART I 61. (a) (b) (c) (d) 65. (a) Exchanging identical offers by two parties in ignorance. Agreements made under the unilateral mistake of fact. Valid Contract: Which of the following is a requirement for misrepresentation to exist? Which of the following agreements is void? Which of the following offers constitute a valid offer? 141 . (a) (b) (c) (d) 63. set before a gathering in an auction sale.25 mark for each wrong answer.25 mark for each wrong answer.SECTION – B : MERCANTILE LAWS (40 MARKS) (i) (ii) Questions 61 to 79 have only one correct answer and carry + 1mark each for correct answer and – 0. The person making a misrepresentation should not believe it to be true. It must be made with an intention to deceive the other party. (a) (b) (c) (d) 64. Misrepresentation should relate to a material fact. An agreement enforceable by law at the option of one or more of the parties thereon but not at the option of the other or others. In case of this collateral agreements are void.25 mark for each wrong answer. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. Agreements made under the influence of fraud. Enforceable at the option of both the parties. Agreements made under the bilateral mistake of fact. Offer made to the public in general. Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. Contingent agreement. All of the above. Offer allowed to remain open for acceptance over a period of time.

No remedy available. Goods must be the same as wanted by the seller. 20. Which of the following statements is true? Contract caused by which of the following is void? (a) (b) (c) (d) 68. Can’t be determined. This is (a) (b) (c) (d) 142 . A says to B. Even if a proposal is not accepted properly it becomes a valid contract. To claim compensation. What is the remedy of the promisee in the circumstances? (a) (b) (c) (d) Can rescind the contract. Condition as to description Condition as to sample Condition as to wholesomeness Condition as to title 70. Promise. Misrepresentation. Two are more persons are said to consent when they agree upon the same thing in the same sense. 69. Fraud. What is legal terminology for the doing or not doing of something which the promisor desires to be done or not done? (a) (b) (c) (d) Desires. Suppose the time fixed for performance of the contract has expired but the time is not essential.(b) (c) (d) 66. A contract can consist of an offer or an acceptance only. The agreements which are against the public policy can be enforced if the parties are willing to contract. Consideration. “Will you purchase my motor cycle for Rs. Coercion. (a) (b) (c) (d) 67. Wishes.000? All of the above. Ram who is in possession of three cars purchased in different years says ‘I will sell you a car’. Bilateral Mistake.

Comes into existence only after registration. Arise by way of an agreement only. Existing Goods. Actionable claims. Arises by operation of law. Money. Goods dependant upon certain events which may or may not happen. In which of the following cases. 72. Growing crops. Delivery of goods to carrier. the property passes to the buyer when trees are (a) (b) (c) (d) 76. Not felled but earmarked. None of these. includes (a) (b) (c) (d) 74. Felled and ascertained. Railway Receipt. grass. Delivery of goods to buyer. Counted and ascertained. Future goods. In case of sale of standing trees. the unpaid seller loses his right of lien? (a) (b) (c) (d) 75. Tender of price by buyer. Partnership (a) (b) (c) (d) 143 . The term ‘goods’ for the purpose of Sale of Goods Act. Contingent Goods. Performa invoice. All of these. Both (b) and (c). Dock Warrant. Which of the following is a not document of title to goods? (a) (b) (c) (d) 73. (a) (b) (c) (d) Unascertained goods.71. Can arise by agreement or otherwise. Bill of Lading.

Labourers. Valid. X and Y agree to work together as carpenters but X shall receive all profit and shall pay wages to Y. 78. To borrow money for the purposes of firm. This contract is _________ (a) (b) (c) (d) Valid Void Voidable Illegal Past Present 82. (a) (b) 144 . Carpenters. Illegal. Registration. R. ________ consideration is no consideration in England. is perfectly ________if other conditions are satisfied (a) (b) (c) (d) 81. All of the above. Master-Servant. To engage a lawyer to defend actions against firm.77. Which of the following is an essential feature of partnership? (a) (b) (c) (d) 79. To buy or sell goods on accounts of partners. Void. Test of Mutual Agency. Implied contract. Voidable. an optical surgeon. employs S as the assistant for a term of three years and S agrees not to practice as a surgeon during this period. even if not in writing or express words. The relation between X and Y is that (a) (b) (c) (d) Partners. To enter into partnership on behalf of firm. Separate Legal Entity. Which of the following acts are not included in the implied authority of a partner? (a) (b) (c) (d) PART II 80.

500 to B if it rains. and then the contract becomes ___________. such reciprocal promises fall under the category of ________________. Future Past and Present A agrees to pay Rs. The basis of ‘quasi contractual relations’ is the ______________. (a) (b) (c) (d) Mutual and concurrent Conditional and dependent Mutual and independent Can’t be determined Existence of a valid contract between the parties Prevention of unjust enrichment at the expense of others Provisions contained in Section 10 of the Contract Act Existence of a voidable contract between the parties 87. open or continuing offer Counter Offer Cross Offers Special Offer 85. When after the formation of a valid contract. Where the performance of a promise by one party depends on the prior performance of promise by the other party. this agreement is called ___________. an event happens which makes the performance of contract impossible. When the offeree offers to qualified acceptance of the offer subject to modifications and variations he is said to have made a ___________. (a) (b) (c) (d) Void Voidable Valid Illegal 86. (a) (b) (c) (d) 145 .(c) (d) 83. and B promises to pay a like amount to A if it does not rain. (a) (b) (c) (d) Standing. (a) (b) (c) (d) Quasi Contract Contingent Contract Wagering Agreement Voidable Contract 84.

Contract of Sale is _______________. The Sale of Goods Act. the delivery is ______________. the sale is _____________. (a) (b) (c) (d) Void Valid Voidable Illegal 15th March. 1930 Executory Contract Executed Contract Executory Contract or Executed Contract None of the above 90. (a) (b) (c) (d) 92. Where in an auction sale. 1930 30th June. 1930 1st July. the seller appoints more than one bidder. 1930 30th July. (a) (b) (c) Invalid and ineffective Valid and effective Conditional 146 . Where an agreement consists of two parts once legal and the other illegal. the ship sinks within the year. such legal part is __________. 1930 came into force on ______________.88. Where the goods are delivered to a carrier or wharfinger for the purpose of transmission to the buyer. However. (a) (b) (c) (d) 91. In this case. the contract becomes _____________ (a) (b) (c) (d) Valid Void Voidable Illegal 89. (a) (b) (c) (d) Void Illegal Conditional Voidable 93. A agrees to pay Rs. and the legal part is separable from the illegal one. 1000 to B if a certain ship returns within a year.

“I shall purchase your cow for $ 100 provided you purchase my parrot for $ 120.” In this case __________. (a) (b) (c) (d) 96. A enquires from B. Meanwhile. B sold 600 tins out it to C and gave delivery order addressed to A. Untill goods are ascertained there is merely __________. 97. The rights of an agent against the principal are the following _____________. None of these Possession of goods Custody of goods Ownership of goods Both (a) and (b) An agreement to sell A breach of warranty A breach of condition All the above Right of indemnification Right to compensation Right of stoppage in transit All of the above Novation Recission Alteration All of the above The property in the goods means the _____________. (a) (b) (c) (d) 95. (a) (b) (c) (d) B has accepted the offer of A B has made a counter offer to A A is bound by the actions of B B cannot make such an offer PART III 99. Discharge by mutual agreement may involve___________. “Will you purchase my cow for $ 100?” B replies.(d) 94. C lodged the delivery order with A requesting him to “await” his orders. B became insolvent and thus A 147 . (a) (b) (c) (d) (a) (b) (c) (d) 98. A sold 1000 tins of oil to B without appropriating any particular oil to the contract.

to them as well.8000/. Y can obtain a decree for Rs. (a) (b) (c) (d) A can exercise his right of lien and refuse to make delivery to C.000/. Within three months the firm incurs liabilities to the extent of Rs.3.or Rs. X fraudulently induced Y to enter into partnership with him and Y pays a premium of Rs. Y files a suit for the rescission of the contract creating partnership and contract is rescinded. 100.against A. Y can obtain a decree for Rs. Which of the following is correct? (a) (b) (c) (d) Y can obtain a decree for Rs.000/-.5. 148 .3000/.against A.000/.000/.to A.3.against A.8000/against.000/. On discovering the fraud.or Rs.became the unpaid seller.5. C has claim over the goods in possession of A. None of the above. Y cannot obtain a decree for either Rs.5000/. A cannot exercise his right of lien and refuse to make delivery to C.10. The creditors of the firm also levy attachment on Y who pays Rs.

Questions 117 to 132 are Fill in the blanks type and carries +1 mark for each correct answer and -0. small fall in quantity demanded. Which of the following is not a characteristic of a “price taker”? 104. Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0. Find the correct match: (a) (b) (c) (d) An enquiry into the nature and causes of the wealth of the nation: A.25 mark for each wrong answer.25 mark for each wrong answer. it can expect a relatively: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) large fall in quantity demanded. small fall in demand.Pigou. Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0. If the management of the restaurant is considering raising prices. TR = P x Q AR = Price Negatively –sloped demand Marginal Revenue = Price Average cost Marginal cost 149 103. Suppose the demand for meals at a medium-priced restaurant is elastic. large fall in demand. (iv) PART I 101. Science which deals with wealth: Alfred Marshall. Which cost increases continuously with the increase in production? .25 mark for each wrong answer. Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses: Robbins.25 mark for each wrong answer.C.SECTION – C : GENERAL ECONOMICS(50 MARKS) (i) (ii) (iii) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. 102. The range of our enquiry becomes restricted to that part of social welfare that can be brought directly or indirectly into relation with the measuring rode of money: Adam Smith.

Sahara Jet and Kingfisher are examples of: 150 . 106. None of the above. there has been an increased in the use of high yielding varieties of seeds. other things remaining the same. Oil prices have been decreasing since 1973. Constant marginal utility of money. private schools. Which of the following statements is correct? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 107. Under zamindari system. farmers are increasingly resorting to intensive cultivation. Transmission and distribution losses of power companies are very high. farmers directly paid land revenue to the state. pesticides etc. Which one is not an assumption of the theory of demand based on analysis of indifference curves? (a) (b) (c) (d) Given scale of preferences as between different combinations of two goods. At present. Diminishing marginal rate of substitution.(c) (d) Fixed cost Variable cost 105. fertilizers. scientific water management all of the above. private ships. The demand and the supply of fuel are almost equal. there has been noticeable positive change in the attitude of farmers towards new techniques of production. We can say Indian agriculture has become modern since: 108. Our import bill on account of oil has been decreasing since 1990. income tax revenues from the agriculture sector are negligible. private railways. Which of the following statements is correct ? 109. multiple cropping. Commercial banks are providing loans to the agriculture sector at zero interest rate. private airlines. Consumers would always prefer more of a particular good to less of it.

M1 M2 M3 M4 removal of control by a few. all of the above.Identify the incorrect statement: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Certain thrust areas like agriculture. provision of credit to big industries only. ‘Served from India’ scheme has been started. The entry of FDI in India has been restricted. increase Bank rate. the RBI may: . 111. Broad money refers to 114. small industry and export units. handlooms. sell securities in the open market. The economic reforms have failed to: 113. fully implement industrial deregulation.110. provision of adequate credit for agriculture. Identify it. Nationalization of banks aimed at all of the following except: 115. All of the following statements except one are correct about the foreign trade policy. 2004-09. increase CRR. 151 112. keep fiscal deficits to the targeted levels. In order to encourage investment in the country. handicrafts etc have been identified. All of the following developments were noticed during 1991(when economic reforms were enforced) except one. (a) (b) (c) (d) National debt was nearly 60 percent of the GNP of India. fully open the economy to trade. encouragement of a new class of entrepreneur. Inflation crossed double digits Foreign reserves were maintained at a very high level. reduce CRR. Vishesh Krishiupaj Yojana has been started. None of the above.

------------------. ____________ is the top traffic handler. The National highways carry more than 40 percent of the total road traffic. Which of the following statements is incorrect? (a) (b) (c) (d) PART II 117.expressed the view that “Economics is neutral between end”. In monopolistic competition. Most of the State Road Transport Corporations are running on profits. The law of demand refers to ------------------------. in the declining segment of the LAC curve. constant average cost.cost relationship price-demand relationship price-income relationship. 118.116. 152 . 119. Increasing returns imply -----------------------------. optimum use of capital and labour. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Robbins Marshall Pigou Adam Smith price-supply relationship price. in the rising segment of the LAC curve. 120. at the minimum point of the LAC curve. Of the major 12 ports. a firm is in long run equilibrium ----------------------------. diminishing cost per unit of output. when price is equal to marginal cost. 121. Paradip Cochin Vishakhapatnam Mumbai The Indian road net work is one of the longest in the world. external economies. The rural road network connects around 65 percent of all weather roads.

At present only _________________ industries are reserved for the public sector. one post office in India serves ________. At present. On an average. (a) (b) (c) (d) CRR SLR Bank rate Repo rate 153 . 23 10 124. nearly ____________ percent of the energy consumed is obtained from non-commercial traditional sources. 126.122. _____________________ refers to the transfer of assets or services functions from public to private ownership. (a) (b) (c) (d) 100 persons 1000 persons 6615 persons 5800 persons 123. _____________ is the official minimum rate at which the central bank of a country is prepared to rediscount approved bills held by banks. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 127. Bank rate is _____________ percent. (a) (b) (c) (d) 45 51.5 125. At present. Globalization Privatization Disinvestment Liberalization 5 7 8 3 5 6 6.5 5.

first increased and then decreased more than 80 percent of GDP. D2. 132.5% 65. Exchange Programme for Consumer Goods. _____ is the Banker’s Bank in India.8% 129. more than 50 percent of GDP. 130 . more than 90 percent of GDP. Expert Programme for Credit Generation. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) PART III Questions 133 to 137 are based on the demand and supply diagrams in Figure 1. Export Promotion Consumer Goods remained constant. According to the 2001 census the total literacy ratio is 154 .128. S1 and D1 are the original demand and supply curves. D3. The service sector in India now accounts for -------------------------------. EPCG stands for ---------------------------. decreased increased. Starting from initial equilibrium point(1) what point on the graph is most likely to result from each change? Export Promotion Capital Goods.1% 75. The area under irrigation has ____________ over the years in India.4% 52. SBI PNB RBI OBC 32. 131. S2 and S3 are possible new demand and supply curves. more than 70 percent of GDP.

declines. Holding everything else constant. Assume X is a normal good. Heavy rains in Maharashatra during 2005 and 2006 caused havoc with the rice crop. What point in Figure 1 is most likely to be the new equilibrium price and quantity? 155 . What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) (b) (c) (d) Point 6 Point 3 Point 7 Point 8 136. The price of a complement good. We are analyzing the market for good Z. What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) (b) (c) (d) Point 9 Point 5 Point 3 Point 2. Point 5 Point 7 Point 8 135. there is a technological advance in the production of good Z. 134. Assume that consumers expect the prices on new cars to significantly increase next year. assume that income rises and the price of a factor of production also increases. What point Figure 1 is most likely to be the new equilibrium price and quantity? (a) (b) (c) (d) Point 4.133. good Y. At the same time.

33 26.00 36.00 8.33 11.141 Table 1 Quantity 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Average Fixed cost 80.00 13.13 26.30 28.00 26.00 58. What combinations of changes would most likely decrease the equilibrium quantity? Use Table 1 to answer questions 138 .00 31.25 31.42 10. When demand decreases and supply decreases.29 26.56 27.88 8.45 30.00 40. 137. 93 156 .00 44.15 Average Total cost 100. the firm will be produce (a) 4 units at a loss of Rs.40 28.27 6. When demand increases and supply decreases When supply increases and demand increases. Refer to Table 1 which lists the average costs of a perfectly competitive firm.66 6.00 7.66 20. If the price of the good is Rs 13.(a) (b) (c) (d) (a) (b) (c) (d) PART IV Point 6 Point 5 Point 3 Point 8 When supply increases and demand decreases.92 Marginal cost 20 17 15 13 12 13 14 25 30 34 40 47 55 138.00 16.

There are 1000 passengers who will pay Rs 4000 a year each for commuter services. In Table 1. 30. shut down produce 10 units produce 11 units produce 13 units.000 Rs. Refer to the competitive firm in Table 1. Calculate Anisha’s accounting costs? 157 .000 a year. Zero units of output and lose its fixed cost. 1. maintenance. 9 139.2. if price is Rs 34. 92 zero units at a loss of Rs. What is Anisha’s total revenue from her commuter service? (a) (b) (c) (d) (a) Rs. 80 8 units at a profit of Rs. the perfectly competitive firm will: Read the following paragraph and answer Questions number 142-147 Anisha quit her job at a private company where she earned Rs2. She withdrew Rs 4.(b) (c) (d) 6 units at a loss Rs. 12. Rs 2800 from each passenger goes for petrol. shut down in the short run.000 Rs.00. produce 8 units at an economic loss of Rs. In Table 1.90. the firm will produce: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 9 units at an economic profit of Rs 40 10 units at an economic profit of Rs 67 9 units at an economic profit of Rs 81. the perfectly competitive firm will: 141. produce 9 units at an economic loss of Rs.04.000 Rs. 00. if price is Rs 26. 142. 140. If the market price is Rs 31. 00.000 143. produce 8 units at an economic loss of Rs 9.000 Rs 31. 40. 5.000 in a savings account that earned 10% interest annually to buy a second hand mini bus to commune passenger between Cannaught Place and Noida. 90. depreciation etc.00. 28.

suffered economic loss and accounting loss. 12.36. Rs. 31. 70.000. 2.100 and quantity demanded falls from 700 pizzas a night to 100 pizzas a night. 40. Rs.(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Rs. 00. 40.0 3.000 144. As a result.000 Rs. 30. 00. the consumer increases her purchases of compact discs(CDs) from 25 CDs to 30 CDs. Rs. 70. 90. We can say that Anisha: 146. 30.000.000 Rs. What is the consumer’s income elasticity of demand for CDs? 158 . 30. Calculate Anisha’s economic cost? 145.67 1. Suppose a consumer’s income increases from Rs. If the local pizzeria raises the price of a medium pizza from Rs. Calculate Anisha’s economic profit/ loss? 148.000 Rs. 8. Rs. 8. earned accounting profits but suffered economic loss.000 Rs. 000 Rs.000 Rs.000.28.000. 00.000. Rs. 12. 70. Rs.60 to Rs.000 to Rs. 00. earned economic profits and accounting profits.0 149. earned economic profits but suffered accounting loss. Rs. Rs.000. 8. 00.000. the price elasticity of demand for pizzas is: (a) (b) (c) (d) .000. 30. 31.000. Calculate Anisha’s accounting profit/ loss? 147.30. 00. 40.28. 3.5 2.

0 150.5 2.25 0. If the quantity demanded of beef increases by 5% when the price of chicken increases by 20%.25 -4 4 159 . the cross-price elasticity of demand between beef and chicken is (a) (b) (c) (d) -0.(a) (b) (c) (d) 0.5 1.0 1.

25 mark for each wrong answer. The weighted average of these two middle values.25 mark for each wrong answer. which have answers as numerical value and carry + 1 mark each for correct answer and – 0. Both. In case of an even number of observations which of the following is median ? 154. 155. The simple average of these two middle values. Box head. If all the observations are increased by 10. Any of the two middle-most value. 152. None. Bar diagram. Ogive is a 153. (iii) PART I 151. Stub. Questions 171 to 200 are numerical based questions. Body. If the AM and GM for two numbers are 6. then 160 .SECTION – D : QUANTITATIVE APTITUDE(50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0. The entire upper part of a table is known as (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Caption. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. Line diagram. Any of these.50 and 6 respectively then the two numbers are (a) (b) (c) (d) (a) 6 and 7 9 and 4 10 and 3 8 and 5 SD would be increased by 10.25 mark for each wrong answer.

the binomial distribution is 160.0.5. The number of all possible samples of size 2 that can be drawn from it with replacement is (a) (b) (c) (d) PART II 161.3. y on x x on y Both of above. It is a negative correlation. Mode of 0.9. (a) Class width 100 15 125 25 161 . When ‘p’ = 0. Both of above. It is the correlation between two variables having no causal relation. It is very low correlation between two variables. None of above. A population comprises 5 members. Quartile deviation would be increased by 10. The line x = a + by represents the regression equation of 159.12.5. What is spurious correlation? 158. 6 0 3 5 It is a bad relation between two variables. Tally marks determines ______ .7. None of above.6.2 is 157. Symmetrical.(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Mean deviation would be increased by 10. All these three remain unchanged. 156. Asymmetrical.

165. then the two events A and B are ______ .500 162 . 166. mean = variance. ______ always lies in between the arithmetic mean & mode.90 and Rs. Positive Negative Zero One Mutually exclusive Exhaustive Equally likely Independent Normal Binomial Poisson None of above 162. 164.100 yield an income of Rs. and H.M.______will be required. A______ distribution is a theoretical distribution that expresses the functional relation between each of the distinct values of the sample statistic and the corresponding probability. In case ‘The ages of husbands and wives’ correlation is ______ .M. H.50 investment of Rs. 163. If an investment of Rs.M.1000 and Rs. (a) Less than Rs. In ______ distribution. If P(A∩B) = 0.20 respectively. for earning Rs.(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Class boundary Class limit Class frequency G. Median G. (a) (b) (c) (d) Normal Binomial Poisson Sampling 167.M.

500 Rs. [(n / 2) (n + 1)] 2 None of above. Unequal (d) (a) (b) (c) (d) 170. There has been on the average a 250% increase in price. 172. Unequal Real. The index number of prices at a place in 1998 is 355 with 1991 as base. The sum of a series in A. This means (a) (b) (c) (d) There has been on the average a 255% increase in prices. None of these.486 168.485 Rs. If b2–4ac = 0 the roots are ______ and ______.P.(b) (c) (d) Over Rs. There has been on the average a 355% increase in price. Equal Irrational. Real. is 72 the first term being 17 and the common difference –2. (a) (b) (c) (d) (a) (b) (c) 0 –2 8 None of above (n / 2) (n + 1) (n / 6) (n + 1) (2n + 1) 169. The sum of square of first n natural number is __________. the number of terms is (a) (b) (c) (d) 6 12 6 or 12 10 163 . If 18Cn = 18Cn + 2 then the value of n is ______ . Unequal Rational. PART III 171.

12) 177.4 gms and 5. The mean proportional between 1.173. 3. x+4 x−5 + = 11 4 3 x + 4 x + 10 + =8 2 9 x + 24 x =4+ 5 4 x − 15 x + 5 + =4 10 5 174.12) (–1.8 gms. The number is (a) (b) (c) (d) (a) (b) (c) (d) 37 73 64 None of these. Which is True ? 175. 2o >(1/2)o 2o <(1/2)o 2o =(1/2)o None of these.2 gms. The values of x for the equation x2+9x+18 = 6–4x are 178. The sum of the digits of a two digit number is 10. The effective rate of interest corresponding a nominal rate of 7% p. If 18 be subtracted from it the digits in the resulting number will be equal.a convertible quarterly is (a) 7% 164 .–12) (–1. 8 is the solution of the equation (a) (b) (c) (d) 176. None of these. 2.–12) (1. (1.6 gms is (a) (b) (c) (d) (a) (b) (c) (d) 28 gms.

3. 76000 Rs. (a) (b) (c) (d) 3579 2468 5 9 13 17 None of these.(b) (c) (d) 7. 9 9. 9. 179. 27 None of these.a.10% None of these. 180. C. 182. 27. 20000 cash down and Rs. 27 3.I. The numbers are Find the four numbers in A. 165 . 75000 Rs. 4000 at the end of each year for 25 yrs. The sum of 3 numbers of a G P is 39 and their product is 729. If there are 50 stations on a railway line how many different kinds of single first class tickets may be printed to enable a passenger to travel from one station to other? (a) (b) (c) (d) (a) (b) (c) (d) 183. A person bought a house paying Rs. The ways of selecting 4 letters from the word EXAMINATION is 181. The cash down price is (a) (b) (c) (d) (a) (b) (c) (d) Rs. 136 130 125 None of these . with the sum of second and third being 22 and the product of the first and fourth being 85.P. 3.5% 7. At 5% p. 76392 None of these. 2500 2450 2400 None of these.

If f(x) = eax (a) (b) (c) (d) + bx+ c the f ’(x) is eax eax 2 + bx+ c + bx+ c 2 (2ax +b) 2ax +b None of these. 2 188. B has 42 elements and A∪B has 62 elements. lim x →1 12 74 10 None of these. is (a) (b) (c) (d) 2n 2 n2 n2 / 2 4n 2 185. lim x →t 4 1/4 –4 None of these.184. The sum of n terms of the series 2 + 6 + 10 + ……. x3 − t 3 is evaluated to be x2 − t 2 (a) (b) (c) (d) 3/2 2/3t 3 t 2 None of these. 166 . the number of elements in A∩B is (a) (b) (c) (d) 186. If A has 32 elements. x2 − 1 is evaluated to be 3x + 1 − 5 x − 1 (a) (b) (c) (d) 187.

00 3. 5 is . The following data relate to the marks of a group of students: Marks : No.189. 3.33 2. of students : How many students got marks more than 30? (a) (b) (c) (d) (a) (b) (c) 65 50 35 43 2. 4 191. 190.90 167 193. Below 10 15 Below 20 38 Below 30 65 Below 40 84 Below 50 100 192. dy is calculated as dx e e e 2x 2x 2x 2x 2x None of these. Evaluate 1 ( 2x + 5 ) dx and the value is (a) (b) (c) (d) 3 10 30 None of these. Evaluate result of (a) (b) (c) (d) ( x 2 –1 ) dx is x5/5 – 2/3 x3 + x + k x5/5 – 2/3 x3 + x 2x None of these. The harmonic mean for the numbers 2. If y = e (a) (b) (c) (d) 2x .

then the index number of prices for the place is now (a) (b) 100 125 168 .(d) (a) (b) (c) (d) (a) (b) (c) (d) –3 30 194. of trials of a binomial distribution having mean and SD as 3 and 1. (b) (c) (d) 2 4 8 12 199.5 respectively? (a) . What is the no. what is the Probability that none of the letters would be vowels? (a) (b) (c) (d) (a) (b) (c) (d) 1/6 1/2 1/3 1/4 3/36 4/36 6/36 5/36 197. 195. If two letters are taken at random from the word HOME. The coefficient of mean deviation about mean for the first 9 natural numbers is 200/9 80 400/9 50 –1 +1 0 None of these. The chance of getting a sum of 6 in a single throw with two dice is 198. Maximum value of Rank Correlation coefficient is 196. If the price of all commodities in a place have increased 125 times in comparison to the base period prices.

90 None of these.90 Rs.(c) (d) (a) (b) (c) (d) 225 None of the above. Rs.I. 50000 the annuity will be 169 . 200.1146. If the amount of an annuity for 25 years at 5% p.1046.a C. is Rs.1406.90 Rs.

25 mark for each wrong answer. Questions 23 to 60 are numerical based questions. Questions 11 to 20 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. 170 . Maximum Marks : 200 SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) (i) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0. Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0.BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT-5/2006 Time : 4 hours The test is divided into four sections.25 mark for each wrong answer. which have answers as numerical values and carry + 1mark each for correct answer and – 0. Please follow the instructions given in each section carefully and answer the questions.25 mark for each wrong answer. Drawings account is in the nature of (a) (b) (c) (d) Personal account Real account Nominal account None of the above (iii) (iv) PART I 1.

Recording of a transaction in a journal is called (a) (b) (c) (d) 5. The basic consideration(s) in distinction between capital and revenue expenditures is/are (a) (b) (c) (d) Nature of business. Effect on revenue generating capacity of business. Each journal entry. All of the above. Transfer. Posting. Debited in the ledger and reference should also be of the respective debit account 3.2. Final accounts. 171 . The concerned account debited in the journal should be (a) (b) (c) (d) 7. Income tax paid by the sole-proprietor from business bank account is debited to (a) (b) (c) (d) Income tax account Bank account Capital account Not to be shown in the business books Government. Investors. Each ledger account. Credited in the ledger and reference should also be of the respective credit account. Purpose of expenses. Ruling. Following is the example of internal users: (a) (b) (c) (d) 4. Employees. Debited in the ledger but reference should be of the respective credit account. Credited in the ledger but reference should be of the respective debit account. Entry. Creditors. Narrations are given at the end of (a) (b) (c) (d) 6. Trial balance.

Misinterpretation. (a) (b) (c) (d) 13. Descending order of amount None of the above In journal. Unintentional omission or commission of amounts and accounts in the process of recording transactions are known as (a) (b) (c) (d) Frauds. All the errors and omissions in the cashbook are taken into consideration. None of the above. transactions are recorded on __________. In ledger there are _______ columns (a) (b) (c) (d) 12.8. it is commonly known as ___________ (a) (b) Errors of principle. Under bank reconciliation statement. 4 6 8 10 Chronological order. If an effect of an error is cancelled by the effect of some other error. Ascending order of amount. All of the above. Errors of omission. 9. All the errors and omissions in the passbook are taken into consideration. Errors of commission. Compensating errors. Delays in recording in the passbook due to difference in timing are taken into consideration. “Treating a revenue expense as a capital expenditure” is an example of (a) (b) (c) (d) 10. Compensating errors. while adjusting the cash book (a) (b) (c) (d) PART II 11. Errors of principle. Errors. 172 .

18. _________ is unavoidable and should be spread over the entire consignment while valuing consignment stock. Old partners in sacrificing ratio New partner in gaining ratio. Understated. it is written back by ________ (a) (b) (c) (d) Old partners in old profit/loss sharing ratio All the partners including the new partner in new profit/loss sharing ratio. When opening entry is overstated. Errors of commission. None of the above. Net realisable value. None of the above. (a) Abnormal loss 173 . net income for the accounting period will be __________. Inventories should be generally valued at lower of cost or ________ (a) (b) (c) (d) 16. Present value. Personal account. if the value of goodwill is overstated in the books. Fair market value. Commission provided by the consignor to the consignee to promote credit sale is known as _____________ (a) (b) (c) (d) Ordinary commission Del-credere commission Over riding commission Special commission 19. Real account. (a) (b) (c) (d) Overstated. Replacement value. Not be affected. Nominal account. At the time of admission of a new partner. Errors of omission. 15. Memorandum Joint venture account is a ________ (a) (b) (c) (d) 17.(c) (d) 14.

3. Due to financial crisis. Mohit. he is unable to pay the amount of bill of Rs. For remaining goods Mridul spend Rs. (a) (b) (c) (d) Small Medium Big All of the above PART III 21.000 will be considered as (a) (b) (c) (d) 22. PART IV 23. 40.(b) (c) (d) 20.000 Rs. 2. 20. he approaches Rohit on 20th March 2006 for extension of bill for further 3 months.000 to take the delivery including storage charges.000 and charged commission @10% on it to Sujal. Some goods were lost in transit. 15. During the quarter.000 on freight. the acceptor of the bill has to honour a bill on 31st March 2006. sold. Rohit agrees to extend the credit period by drawing a new bill for Rs. Therefore. expenses commission and balance due to him alongwith the consignment stock from Mridul. Discounted Dishonoured Cancelled Retired Sujal consigned goods costing Rs. In this case old bill of Rs.5.000 174 . Sujal asked the details of goods lost. when the size of the venture is ________. At the end of the quarter.00. Mridul sold 3/4 of the goods received by him for Rs. The following information pertains to X Ltd.000. 1. As desired. 20.00.000 in cash.000 to Mridul on 1st January 2006 by incurring Rs. 20.500 together with interest of Rs. Normal loss Extra-ordinary loss None of the three Generally. Equity share capital called up Calls in arrear Rs. Mridul sent the periodical detail statement commonly known as (a) (b) (c) (d) Account statement Account sales Statement of affairs Summary statement.50. 20. the co-venturers keep separate set of books of account for the joint venture.

000 shares to the applicants of 14. 1.000 Rs.93 175 .000 shares on pro rata basis.279. Rs. 50.71. The wholesaler offered 5% sales tax on net price.780. The purchase price per piece of cover file will be (a) (b) (c) Rs. Transport charges were Rs.31 Rs. 275 per 100. M/s Delhi Stationers purchase 1.1.69.1.200 300 shares.2. The amount payable on application is Rs.000 15% The amount of dividend payable = ? (a) (b) (c) (d) 24.000 E Ltd. X of Kolkata sent out 2000 boxes costing 100 each with the instruction that sales are to be made at cost + 45%.000 26.000 pcs of cover file @ Rs.000 Rs.Calls in advance Proposed dividend Rs.180 Decreasing the bank balance by Rs. A purchase of Rs.72. Rs.180 27.000 Rs.75. Rs. X draws a bill on Y for an amount equivalent to 60% of sales value. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F = ? (a) (b) (c) (d) 60 shares.750 Rs.000 Rs. 1.2.13 Rs. This has the effect of (a) (b) (c) (d) Increasing the bank balance by Rs. Rs.793. had allotted 10.120 340 shares.250 Rs.240 25.2. The amount of bill will be (a) (b) (c) (d) Rs.20.00.27.74. 25.870 by cheques has been wrongly posted in the cashbook as Rs. F applied for 420 shares. Rs.160 320 shares.90 Decreasing the bank balance by Rs.90.90 Increasing the bank balance by Rs.2.

charge 25% profit on cost. B Rs.3. 5.000.540 Rs.000 on freight.60. B and C are in partnership with no partnership deed. On 31st March he received an approval letter for goods of Rs.000 Rs.000 as godown rent.000. 10.40.250 30. 9.10.80.000 accepted by Ritesh on 1July 2006.840 Rs.4.000 Rs.600 Rs.000 Rs.2.000 Rs.32. On 4th October 2006.200 Rs.000 and C Rs. A. repayable after 1 month. was discounted by Hitesh on 15 July 2006 for Rs. In a Joint venture between A and B.000 29. 3.000 Rs. the bill was dishonoured and bank notified it for Rs.20.(d) 28. B 176 .250 Rs.600. The amount to be received from Ritesh would be (a) (b) (c) (d) Rs. B spend Rs.10.000.2. Rs. 200.000 at 18% repayable after 2 months.8.500 Rs. 80.000 32. 2% del-credere commission on credit sale and 3% over-riding commission on amount in excess of cost price.80. 64. 1. Rs. The total expenses of Joint venture will be (a) (b) (c) (d) Rs. 50. A does not take part in day to day activities.000 at 18% p. The cost price of the un-approved goods with the dealer will be (a) (b) (c) (d) Rs.50. 5.000 as selling expenses and he also raised a loan from bank of Rs.000 as capital. As per the agreement the consignee will get 5% ordinary commission. 8.3.000 to one of its dealer on Sale or Return basis. Y Ltd.000 at a profit of Rs. and also raised a loan from bank of Rs.10.1.250 Rs.400 31.50. Y Ltd. A spend Rs.79 A consignee sold goods costing Rs.1. A brought Rs.10.13. 10. The amount of commission will be (a) (b) (c) (d) Rs. The bill of Rs. Out of total sale 30% was credit sale. sends out its goods Rs.40.a.

2 Re.000.1.000 at Rs 2. 2.000: Rs.30. 1 per share.20. The share of each partner in profit will respectively be (a) (b) (c) (d) 33. 80. The amount debited to car account will be (a) (b) (c) (d) Rs. 10 each at a discount of Re.00.25000 Rs.50. Rs.000 Rs. Rs.000 is paid as dealer’s commission.600 35. The profit for the year was Rs.000 Rs.40.000.000 36. 3 Rs.3.60.20. 2. Atul.1.000: Rs.50.a.000.75.2. Rs. 1.1 177 . 4.1.000 is spent on its repairs.00. The amount of goods taken over will be: (a) (b) (c) (d) Rs. 40.000 Nil: Rs.2. issued 60.000 34.50. 2.50.200 Rs.50.000 shares of Rs.00. The application money was Rs. A second hand car is purchased for Rs.000 and Rs.000 as capital in the firm. 1. Vipul and Prafful are partners in a firm with no partnership agreement.33.333 Rs. 25.40. 2. The amount of final call will be (a) (b) (c) Rs. Brave Ltd.400 Nil Rs.000: Rs.66.000: Rs.000 Rs.000 Rs. 2.50. and first call was of Re. Ansh purchased goods costing 2. Prafful demands interest on loan of Rs. allotment money was Rs. 75.000 advanced by him at the market rate of interest which is 12% p. 2. They invested Rs.acts as general manger and C acts as a sales manager. The amount of interest received by him will be (a) (b) (c) (d) Rs.000. the amount of Rs.000.50. 2.05. Vansh sold goods costing Rs 1.667: Rs.75. 1.000 Rs.000 None of the above.32.000 is incurred to get the car registered in owner’s name and Rs. Balance goods were taken over by Ansh at same gross profit percentage as in case of sale. 5.000. The profit during the year was Rs.

Invoice value of goods sent out on consignment will be: (a) (b) (c) (d) Rs. the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at ________ percentage per annum. The profit for the year 2005 was Rs.000 178 .000 Rs. B.000 41.2.1.15. Asha Ltd.18.000 Nil 39. at the time of allotment. (a) (b) (c) (d) 7. As per Section 37 of the Indian Partnership Act.500 Rs. Invoice value of goods lost Rs 25.000 Rs. which was distributed among all the three partners equally. failed to pay first and final call totalling Rs.10. Premium was taken by Asha Ltd.750 Rs.000. one of its partner died on 31st March 2006. issued shares of Rs..100 each at a discount of 20%. 12.00. Mamta.000.2.Nil Rs.250 38.000 shares of Asha ltd. Nil A partnership firm maintains its accounts on calendar year basis.000.00. who has 2. The share of profit of B for the year 2006 on the basis of the year 2005 will be (a) (b) (c) (d) Rs. for a book value of Rs. The consideration was paid by issue of 10% Debentures of Rs. the amount to be debited to Share premium account will be (a) (b) (c) (d) Rs.50. 6.5.5.6.25. The debentures account will be credited with (a) Rs. purchased land and building from Daksh Ltd. 4.5. Taksh Ltd. 40. 75. On forfeiture of Mamta’s shares.000 Rs.000 Rs. Fena sent out certain goods to Kena of Delhi.(d) 37. 1932.000 Rs.25.6.25. 1/10 of the goods were lost in transit. 100 each at a premium of 25%.

000.400 Excess depreciation Rs. Rs.D.600 Short depreciation Rs.000 179 .3. 21.L. Rs.000 Nil 43.25.00. 21. The amount of excess/ short depreciation of last two years will be (a) (b) (c) (d) Excess depreciation Rs. 20. Surrender value of the policy at the beginning of the year 2006 is Rs. 10. On the death of A on 2nd January 2006. The amount of net debtors to be shown in the balance sheet will be (a) (b) (c) (d) Rs.000. A machine purchased on 1st April 2004 for Rs.400 Short depreciation Rs. Nil X. Profits before salary of partners capital was Rs. 80.344 45.M.5. Rs.000. These shares were reissued Rs.3. Rs. Sundry debtors of M/s Santosh amounts to Rs.2. Now a company wants to sitch over to W. Y and Z are partners in a firm.000 is showing a balance of Rs. 16. 25.50.000 Rs.3.000 Rs. basis.600 44. 9 per share.000.000 Rs.560 Rs. 22. the amount to be credited in C’s account will be (a) (b) (c) (d) 46. They have a joint life insurance policy of Rs.(b) (c) (d) 42. 40.1. 6. B and C shares profit and loss in the ratio of 4:4:2.1.000.6. The amount to be transferred to Capital Reserve account will be (a) (b) (c) (d) Rs.1.000.000 as on 1st April 2006 when depreciation is charged on S.000 Jadu Ltd.V method charging depreciation @ 20%.000 shares.000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%.780 Rs. reissued 2.00.5. whose premium is paid by the firm. At the time of division of profit for the year there was dispute between the partners. 60. which were forfeited by debiting Share forfeiture account by Rs.000 Rs.000 Rs.000 and bad debts Rs. A. 21.1.

Calculate the amount payable to X. The amount to be credited to the debenture premium account will be (a) (b) (c) (d) Rs. B sold it at 20% margin on selling price. A discounted that bill for Rs.15.500 Rs.000. A and B enter into a joint venture for purchase and sale of Type-writer. Rs.000.10. Sure Ltd. Y and Z respectively.100 each at a premium of Rs. printing expenses Rs 10. Repairing expenses Rs 10. 1.60. A draws a bill on B for Rs 30. 15. issued 5.50. (a) (b) (c) (d) 47.10.36.18.000 Rs. On due date A will send to B (a) (b) (c) (d) Rs.500 49. 10.000 Rs.000 50.000 p. 1. 1. The new price of each TV will be (a) (b) (c) (d) Rs. 20.40.000 to X and Z and Rs.000 to Y and Rs.000. 5 TVs were damaged in transit due to unavoidable reason whose price was adjusted in the remaining TVs.28. The sales value will be: (a) (b) (c) (d) Rs.000 to each partner Rs.000 to B. 24.000 Rs.50.25.000 to Y Rs.15.25.10.000 from bank and remitted Rs.14.000 to X and Z Deepak consigned 100 sets of TVs to Sudeep @ Rs.00.4 each after 5 years. Rs. A purchased Typewriter costing Rs 1.000 each.000 Rs.200 Rs.000.526 48.000 Rs.40. 15% Debentures of Rs.and Y claimed salary for his extra services to the firm @ 2. 12.m.000 to each partner Rs.10 each.000 Rs. Rs. 1.12. 14. These debentures were to be redeemed at a premium of Rs.000 Rs. There was no agreement on this point.000.000 fro mutual accommodation.14.000 180 .000 Rs.000.00.

Remaining shares were redeemed out of reserves of the company.49. 10 each payable as Rs.000 shares paid full value of shares with allotment money.47.000 equity shares of Rs. 500. 2 on first call and the balance in the final call. 10 each to be redeemed after 5 years.000 Rs. 99.000 Rs. 100 and Cheques issued but not presented of Rs.000. Books of Ekta. The company forfeited 500 preference shares on which final call of Rs 2 has not been received.51.478.a. The bank allowed interest amounting Rs. 95. In the bank reconciliation statement. 54. Rs. 2. issued 25. 150. has 10.508 Rs 20. Rs 3 on allotment. 1. Debit balance as per Cash Book of Topsy Enterprise as on 31.3. when balance as per the cashbook is taken as the starting point.00. Cheques deposited but not cleared amounts to Rs.2006 is Rs. Archit.000 5% preference shares of Rs.500 52.500 in the bank will be (a) (b) (c) (d) Added Subtracted Ignored None of the above 55. shows on 1st January 2006 furniture Rs.48. Ekta charge depreciation @ 10% p.000 Rs. The net amount of the furniture to be shown in the balance sheet will be (a) (b) (c) (d) Rs 18. who has 1.000 Rs.50.000 Rs. Bajaj Ltd. after due notice and cancelled these shares on account of redemption. 2 on application. 1.500.1.440 Rs 18. The amount to be debited to bank account at the time of receipt of first call money will be (a) (b) (c) (d) Rs. then direct deposits from the customer of Rs.000.200 has been exchanged with another furniture by paying additional Rs. During the year a part of the furniture whose book value on 1st January 2006 is Rs. 99.000 Rs. The amount to be credited to capital redemption reserve will be (a) (b) (c) (d) Rs. 53. 20.396 Rs 18. 50 and collected 181 . Light Ltd.

000 Rs.00.2.40.000 182 .2.000 more than the credit trial balance would show the credit side to be Rs. but has been correctly entered in the debtors’ account.850 after availing 5% cash discount.3.00.000. Suraj has to pay to M/s Chandra Rs. 57.13. 2.350 Rs. On 31st March 2005. If the gross profit margin of the company is 33 1/3% on cost.400 Rs. Balance as per pass book should be (a) (b) (c) (d) 56. the amount to be paid by Suraj without any discount will be (a) (b) (c) (d) Rs.12.800 on 30th June 2006 after availing a cash discount of 10%.000 Rs. the total of the (a) (b) (c) (d) trial balance would show the debit side to be Rs.7. 58.1.4. the closing inventory during the current year is (a) (b) (c) (d) Rs.2.1.000 on account of credit purchase from the later. 2.200 Rs.150 59. 1.000.4. On account of final settlement.000 Rs.500 more than the debit side.000.3. he paid Rs. 2.00. 50 on behalf of Topsy Enterprise Enterprises.000 more than the debit.25.3.1.4. If a sales return of Rs.500 more than the credit side.60.dividend Rs. 1.850.500 has been wrongly posted to the credit of the purchase returns account.650.2. The managerial commission is charged @ 10% on profit after charging such commission. a partnership firm before charging managerial commission is Rs.000 Rs.000 and the total sales during the period are Rs. the credit side of the trial balance will be Rs. On 30th September 2006. The profit of the M/s ABC.450.000 Rs. The total cost of goods available for sale with a company during the current year is Rs. 1. the debit side of the trial balance will be Rs.1. The amount of managerial commission will be (a) (b) (c) Rs. 44.600. He paid Rs.00. 1.

600.(d) 60. Capital expenditures Revenue expenditures Capital receipt Revenue receipt A bad debt recovered during the year is a 183 . (a) (b) (c) (d) Rs.39.

All of the above. There should be at least two members and maximum number of members should not exceed fifty. There should be at least seven members and maximum number of members should not exceed fifty. The services should have been rendered voluntarily.25 mark for each wrong answer. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. An agreement whereby a person promises to maintain a suit. The following conditions must exist so that a promise to pay for the past voluntary services is binding: (a) (b) (c) (d) 62. An agreement to trade with the enemy owing allegiance to a government at war with India.25 mark for each wrong answer. An agreement to stifle criminal prosecutions tend to be a perversion or an abuse of justice. (a) (b) (c) (d) 63. by money or otherwise. There should be at least two members and maximum number of members should not exceed ten.SECTION – B : MERCANTILE LAWS (40 MARKS) (i) (ii) Questions 61 to 79 have only one correct answer and carry + 1mark each for correct answer and – 0. They must be in existence at the time when the services were rendered and must have intended to compensate the promise. (iii) PART I 61. in which he has no interest. There should be at least ten members and maximum number of members should not exceed twenty. The services must have been rendered for the promisor.25 mark for each wrong answer. Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. An agreement whereby a person agrees to help another in a litigation in exchange of a share of the result of the litigation. 184 In case of a firm carrying on the business of banking Champerty means (a) (b) (c) (d) .

Must repay the money or return those goods. Right to recover damages. 66. All of the above. if possible. A person to whom money has been paid. All of the above. Following conditions are implied in a contract of sale of goods unless the circumstances of the contract show a different intention: (a) (b) (c) (d) Condition as to non – existence of encumbrances. It is the entire consideration for the promise. or anything delivered by mistake (a) (b) (c) (d) 69. Condition as to undisturbed possession. A collateral event is an event (a) (b) (c) (d) The performance for which is neither directly promised nor it is the entire consideration for the promise. Rescind the contract.100.64.200 to Rs. The performance for which is directly promised. 65. Which one of the offers is a valid offer? (a) 185 . None of the above. Rely upon the misrepresentation as a defence to an action on the contract. Right to resist agent’s claim for indemnity against incurred liability. A person who has been induced to enter into a contract by misrepresentation has the following remedies: (a) (b) (c) (d) Affirm the contract and insist on the misrepresentation being made good. The performance which is agreed upon by the parties in a Court of Law. Is allowed to sell the goods and retain the money realized from such sale. A garment store gave the following advertisement in a newspaper – “Special sale for tomorrow only. Has no obligation to return the money. Becomes the owner of such money or those goods. Right to obtain an account of secret profits and recover them and resist a claim for remuneration.” 68. The rights of a principal are the following: (a) (b) (c) (d) 67. Men’s night suits reduced from Rs. All of the above. he may do so only a good gesture.

A promises to paint a picture for B at a certain price. 1872: (a) (b) (c) (d) Alien Enemy Foreign Sovereigns or accredited representatives of a foreign state Insolvents and convicts None of the above 186 . An auctioneer displays a refrigerator before a gathering in an auction sale. None of the above. A advertises in a leading daily newspaper that he would pay Rs. Can pass a goods title to a bonafide purchaser. By the adjudication of all the partners or of all the partners but one as insolvent.(b) (c) (d) 70. 2000 to anyone who finds and returns his lost dog. the contract can be enforced either by representatives of A or by B. Both of the above. Expressed or implied from the act done by partners. P says to Q. By the business of the firm becoming unlawful. “I will sell you a digital camera. A dies before painting the picture. A can appoint some other painter to paint the picture on his behalf.” P owns three different types of digital cameras of various prices. An agreement of partnership may be (a) (b) (c) (d) 72. All of the above. As a result of any agreement between all the partners. The following persons can enter into contracts as per the provisions of The Indian Contract Act. Cannot pass a goods title to a bonafide purchaser. Dissolution of a firm may take place (a) (b) (c) (d) 73. None of the above. In case of a sale the buyer (a) (b) (c) (d) 74. Oral or in writing. Both of the above. All of the above are incorrect. Which of the following is not correct? (a) (b) (c) (d) A is not bound to perform the promise himself. 71.

(a) (b) (c) Express Contracts Implied Contracts Quasi Contracts 187 . Suit for Specific Performance. the contract is said to be an ________. Khawaja Md. Limited. A sale implies an agreement (a) (b) (c) (d) PART II 80. or anything delivered under coercion (a) (b) (c) (d) 78. Has no obligation to return the money. If the terms of a contract are expressly agreed upon (whether by words spoken or written) at the time of formation of the contract. State of Madras v. Bhoot Nath. Must repay the money or return those goods. 76. Suppu Ammal v.Gannon Dunkerly and Co. he may do so only a good gesture. Remedies available for breach of contract are: (a) (b) (c) (d) 77. Plus conveyance of property and creates jus in personam. Anticipatory breach and anticipatory bail are actually the same thing The concept of damage allows one to make some gain out of it. Subramanian. Which of the following case laws relate to the definition of contract of sale? (a) (b) (c) (d) 79. 1958. if consideration is preset. Which of the following is correct? (a) (b) (c) (d) Free consent is not important. None of the above. All of the above are incorrect. even if the consideration is inadequate. 1900. Khan v.75. A person to whom money has been paid. Charging extra fees from the party committing the breach. Hussaini Begum. Is allowed to sell the goods and retain the money realized from such sale. Becomes the owner of such money or those goods. No conveyance of property and creates jus in personam. Dissolution of the firm. Rajlikhee Devi v. Plus conveyance of property and creates jus in rem. No conveyance of property and creates jus in rem. 1910. 1910.

he is said to have made a________. (a) (b) Special Offer Counter Offer 188 . If the offeree offers to qualified acceptance of the offer subject to modifications and variations in the terms of original offer.(d) 81. None of the above According to Section 14 of The Indian Contract Act. (a) (b) (c) (d) 28 17 30 11 86. essential to such contract. 1872 The Constitution of India Void as against the minor Illegal Unlawful Unenforceable by the minor 83. (a) (b) (c) (d) Misrepresentation Undue Influence Coercion All of the above 82. Where both parties to a contract of sale are under a mistake as to a matter of fact. Consent is said to be free when it is not caused by ________. ‘Partner by holding out’ is governed by Section of _______ The Indian Partnership Act. In India the age of majority is regulated by ________. (a) (b) (c) (d) 84. 1875 The Indian Contract Act. 1932. 1872. Agreement entered into by a minor is ________. then the contract is ________. (a) (b) (c) (d) Illegal Void Still enforceable None of the above The Indian Majority Act. 1875 The Indian Minority Act. (a) (b) (c) (d) 85.

2006 Must be expressed Must be implied if not expressed May either be expressed or implied None of the above Sells goods Agrees to sell goods Sells or agrees to sell goods Has sold goods Actual Delivery Constructive Delivery Delivery by acknowledgment None of the above 189 Sale is an_______. 1930 The Indian Partnership Act . (a) (b) (c) (d) Continuing Offer Cross Offer Executed contract Executory contract Both of the above None of the above @ 6% per annum @ 8% per annum @ 8.(c) (d) 87. Delivery of a thing in token of a transfer of something else is known as________. 1932 The Indian Partnership Act. (a) (b) (c) (d) 92. (a) (b) (c) (d) 88. (a) (b) (c) (d) 89. The law dealing with the partnerships is contained in ________. 1872 The Indian Partnership Act. . Interest on advances by a partner to his firm may be payable _______.5% per annum At any rate The Indian Partnership Act. Conditions and warranties ________. ‘Seller’ means a person who________. (a) (b) (c) (d) 90. (a) (b) (c) (d) 91.

Promise of A is _______.93. 190 . An offer should be distinguished from________ . The ship was sunk. (a) (b) (c) (d) Binding. The rule of caveat emptor does not apply in the case of_______. (a) (b) (c) (d) 97.1. Enforceable. illegal and against public policy. Not binding.000/.500/. no consideration no contract. Cannot be enforced by B. Is a wagering contract Is unlawful.00. A agrees to pay B Rs. ________ is/are the exception(s) to the general rule. A agrees to B for Rs.that A will never marry. Illegal. Fitness for buyer’s purpose Sale under a patent or trade name Usage of trade or consent by fraud All of the above Natural love and affection Compensation for past voluntary services Promise to pay a time barred debt All of the above Invitation to treat an offer Mere communication of information in the course of negotiation Statement of intention All of the above Railway receipt or Multimodal transport document Warrant or order for delivery of goods Warehouse keeper’s certificate All the above 94. ________ is/are the ‘document of title to goods’ (a) (b) (c) (d) 98. The contract ________.if a particular ship does not return to the port. (a) (b) (c) (d) Can be enforced by B. A is not a minor. (a) (b) (c) (d) 96. (a) (b) (c) (d) 95.

which of the following is correct? (a) (b) (c) (d) The original partnership is dissolved. Unintentional fraud. A now wants to take D as a partner in the said firm. M believes D and accepts the blue colour to be black colour. Fraud. D is father of C. for any reason whatsoever. He sells one blue colour shirt to M. 191 .PART III 99. B was murdered by C. The original partnership is not dissolved and A & D can continue. In light of the situation answer. D believes blue colour to be black colour. who wanted to become a partner of the firm. Later on M’s mother explains M that the colour of the shirt is actually blue and not black. M knows nothing about colours. Cheating. It is a clear case of (a) (b) (c) (d) Misrepresentation. Both (a) & (c). 100. representing it to be black colour. but B has raised objections to it. A & D has to enter into a fresh agreement and create a new partnership. A & B are the only two partners in a firm. He has a garment shop.

AC curve. All of the above. varies inversely with price. AR curve lies below the MR curve. quantity demanded: (a) (b) (c) (d) (a) (b) (c) (d) varies directly with price. (iv) PART I 101. AR curve is parallel to the MR curve.SECTION – C : GENERAL ECONOMICS (50 MARKS) (i) (ii) (iii) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. the relationship between average and marginal revenue curves is as follows: (a) (b) (c) (d) (a) (b) (c) (d) AR curve lies above the MR curve. Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer. AR curve coincides with the MR curve. P=MR=SAC=LAC. When the perfectly competitive firm and industry are in long run equilibrium then: 103. AVC curve. 104. AFC curve. P=MR=Lowest point on the LAC curve. In monopoly. In a typical demand schedule.25 mark for each wrong answer. All of the following are U shaped curves except the: 192 . is independent of price. 102. varies proportionately with price.25 mark for each wrong answer. MC curve. Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0. D=MR=SMC=LMC. Questions 117 to 132 are Fill in the blanks type and carry +1 mark for each correct answer and -0.25 mark for each wrong answer.

Control of population. 193 . From the national point of view which of the following indicates micro approach? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Per capita income of India. The difference between GNP and NNP equals: 110. Net consumer income. substitution effect minus income effect. indirect business taxes. Underemployment in agricultural sector. Cost of electricity for running machines. Depreciation on machines owing to time. 106. 109. Subsidy under public distribution system. a statistical discrepancy. Piece wages paid to workers. plus subsidies. Private income before cost. The following are some of the costs of a clothing manufacturer. State which among them will you consider as fixed cost? (a) (b) (c) (d) (a) (b) (c) (d) Cost of cloth. Lock out in TELCO. National income at market prices.105. substitution effect plus price effect. National income at factor cost. substitution effect plus income effect. consumer expenditure on durable goods. but less indirect taxes is equal to which one of the following? (a) (b) (c) (d) Gross national income. substitution effect plus demonstration effect. Issue of bonds by government. The total effect of a price change of a commodity is 107. Imposition of taxation. depreciation. Total savings in India. Which of the following is not a part of Fiscal policy? 108.

increase CRR. Who first raised the fears of a world food shortage? 113. high ratio of industrial output to total output. All but one of the following statements are incorrect. the RBI may: 116. Malthus. (c). J. high utilization of existing capital in the economy. (b). 112. Balance of payments is a narrow concept than balance of trade. Devaluation is panacea for BOP problem.R. The RBI is the lender of last resort for Indian public sector banks. meet the deficits in Balance of Payments in the short run. high ratio of commercial farming to subsistence farming. Mill. 115.B. India is facing severe foreign exchange reserves crunch. sell securities in the open market. Find the correct statement. coexistence of underutilized labour with unexploited national and other resources. 194 . (d). In order to encourage investment in the country. contain inflationary pressures. T. Say. increase Bank rate. An underdeveloped economy is generally characterized by a: Which institution is known as the “soft loan window” of World Bank? (a) (b) (c) (d) (a). J. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 114.111.S. IFC IDA IMF Indian Development Forum decrease Bank Rate. David Ricardo. A strategy of heavy industry is sometimes preferred for a developing economy because it can : (a) (b) (c) (d) generate employment opportunity on a large scale. provide a strong base for rapid industrialization.

2. Demand for electricity is elastic because -----------------------------. 195 . Macroeconomic theory.1%. it has a number of close substitutes. -----------------------. 15%. 120. creating utility. excess capacity. 119. it has alternative uses. earning profit. monopolistic competition. 7%. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) 8%. The sale of branded articles is common in a situation of ----------------------. providing services. Fiscal deficit Budgetary deficit Primary deficit Revenue deficit it is very expensive.PART II 117. 118. None of the above. 122. destroying utility. monopoly. The branch of economic theory that deals with the problem of allocation of resources is ------------(a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Microeconomic theory. pure competition. production in the economy has grown by ------------------------. If GNP is 15% higher than last year’s and the rate of inflation is 7%. Econometrics. Production may be defined as an act of ------------------------------. 121.concept of Budget deficit has become practically redundant in India.

129. km.RRBs working in the Indian economy. 196 . d. a. 126. The cost that firm incurs in hiring or purchasing any factor of production is referred to as -----------. c. 125 196 216 324 124. d. b. (a) (b) (c) (d) a. exchange programme for consumer goods. d. b.(d) none of the above. ratio of population living below poverty line to total population. a. -------------. 127. a. number of persons living per kilometer. bank. Population density means ----------------------------------------. c. -----------------is the most liquid measure of money supply. b. c. 123. c. The main security guard for International Trade is ------------------------------------. board. explicit cost implicit cost variable cost fixed cost IMF World Bank WTO RBI M1 M2 M3 M4 number of persons living per sq. c. number of persons in a village. d. d. NABARD is a ---------------------. 128. b. a. department. b.

a. c. b.130. b.1 57.32 15. c. d. S2 and S3 are possible new demand and supply curves. 11.22. 197 . (a) (b) (c) (d) PART III Questions 133 to 137 are based on the demand and supply diagrams in Figure 1.34 25. S1 and D1 are the original demand and supply curves.17 25.56 19. 131. According to 2004 data. d. The telephone penetration rate in India is----------------. TRAI stands for-------------------------------------------.per 100 population.3 1. D3. a. D2. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change? 38. there are --------------------cases of leprosy per 10000 population in India.1 Trade Regulatory Authority of India Transport Regulatory Authority of India Training Registrar Authority of India Telecom Regulatory Authority of India 132.

affect price in an indeterminate way and quantity will decrease. Point 9. In addition. What point in Figure is most likely to be the new equilibrium price and quantity? (a) (b) (c) (d) (a) (b) (c) (d) Point 6. affect equilibrium quantity in an indeterminate way and price will increase. Assume that consumer income has increased. Point 3. affect price in an indeterminate way and quantity will increase. What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) (b) (c) (d) Point 6. 137. Point 2. Point 4.What point in Figure 1 is most likely to be the new equilibrium price and quantity? (a) (b) (c) (d) Point 6. Point 8. 134. Assume that the government has just removed the 10% excise duty on good X. Suppose wage rate of coal miners increases and price of natural gas decreases. Point 4. (Coal and natural gas are substitutes). A government research agency has published outcome of studies which say that the consumption of good X could cause cancer. 135. assume that a powerful lobby has persuaded the government to give subsidy to the manufacturers of good X. 136. Point 8. which point in Figure is most likely to be the new equilibrium price and quantity? (a) (b) (c) (d) Point 4.133. Point 5. An increase in demand and an increase in supply will: 198 . Point 7. Point 5. Point 6. Point 3. affect equilibrium quantity in an indeterminate way and price will decrease. Given that Y is an inferior good.

(Make sure you answer each question using the production level specified. but can change the level of other inputs such as labour and materials. and use the table to answer questions 138 to 142. Calculate the missing values in the table. fixed cost is 193 and its variable cost is 0. fixed cost is 45 and its variable cost is 148. When production equals 5 units. fixed cost is 0 and its variable cost is 193. The first two columns represent the demand curve that the firm faces.) Production Price per unit (P) 130 124 118 112 106 100 94 88 82 76 Total Cost (TC) 45 88 125 159 193 230 273 325 389 465 Table 1 Variable Cost (VC) 0 Marginal Cost (per unit) (Q) 0 1 2 3 4 5 6 7 8 9 (MC) – (TR) Total Revenue Marginal Revenue (per unit) (MR) – 138. Rs 100 Rs 270 Rs 324 Rs 500 139. When production equals 4 units. the firm’s total revenue is: 199 . the firm’s: (a) (b) (c) (d) (a) (b) (c) (d) fixed cost is 100 and its variable cost is 93.PART IV Use Table 1 to answer questions 138-142 The following table provides cost and price information for an individual firm. The firm has a fixed amount of capital equipment.

s 200 . Rs 0 Rs 41. s is not attainable given society' current resources and technology. 144. 5 units. According to the production possibilities curve in Table 2. the firm’s marginal revenue is: (a) (b) (c) (d) Rs 384 Rs 94 Rs 64 Rs 2. Table 2 Production Possibilities (alternatives) A B 12 6 C 9 11 D 6 15 E 3 18 F 0 20 141 When production equals 7 units. 7 units. a combination of 12 Hot Pockets and 11 Eggos: (a) (b) (c) (d) is attainable and it involves an efficient use of society' resources. s is attainable but involves the unemployment or inefficient use of some of society' resources.57 Rs 291 Rs 336 0 units. the firm should produce: (a) (b) (c) (d) Read table 2 and answer Questions number 143-149 Hot Pockets Eggos 15 0 143.140 When production equals 6 units. 3 units. According to the production possibilities curve in Table 2. the firm’s profit is: (a) (b) (c) (d) 142 To maximize its profit. a combination of 3 Hot Pockets and 15 Eggos: (a) is attainable and it involves an efficient use of society' resources. s may be produced only if the production possibilities curve shifts inward.

B. 149.(b) (c) (d) is attainable but involves the unemployment or inefficient use of some of society' resources. E. remains constant as more Eggos are produced. decreases as more Hot potatoes are produced. as one moves successively from point A to points B. the opportunity cost of 1 more Hot Pocket is: (a) (b) (c) (d) 4 eggos. Technology and the educational attainment of the work force. 148. cannot be measured. remains constant as more Hot potatoes are produced. In drawing a production possibilities curve. s is not attainable given society' current resources and technology. Widespread application of irrigation to agricultural land. s may be produced only if the production possibilities curve shifts inward. the opportunity cost of Hot Pockets: (a) (b) (c) (d) increases as more Hot potatoes are produced. Improvements in technology. as one moves successively from point F to points E. Which of the following would not cause an economy' production possibilities curve to s shift to the right? (a) (b) (c) (d) The discovery of new superconductivity materials which makes manufacturing more efficient. cannot be measured. and A. Both (a) and (b). decreases as more Eggos are produced. in moving from point D to point C. 146. 147. D. C. and F the opportunity cost of egos: (a) (b) (c) (d) increases as more Eggos are produced. Given the data in Table 2. Referring to Table 2. ¾ eggos. 201 . D. A decrease in unemployment. C. 4/3 eggos. 145. Given the data in Table 2. which of the following is (are) held constant? (a) (b) (c) (d) The supply of natural resources and the supply of labor. 1 eggo. None of the above.

2% 22.150.9% 12.2% 202 .5% 20. The following table provides a breakdown of a country’s population (millions): Table 3 Total population Unemployed people looking for a job Retired people People confined to correctional institutions 114 Children (below the working age) 9 Full-time students (not looking for a job) 14 Employed people 1 Other adults not in the labour force 18 2 63 7 Based on the information in the table. the country’s unemployment rate is (a) (b) (c) (d) 7.

Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. Least squares. Never symmetrical. (iii) PART I 151. 152. Product moment. A binomial distribution is 203 .25 mark for each wrong answer. Stub. Caption. Body. Questions 171 to 200 are numerical based questions. Class interval. Which of the following measures of central tendency is based on only fifty percent of the central values? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) Mean Median Mode Both (i) and (ii) Box head.SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer. Concurrent deviation. Class boundaries. Normal equation. The method applied for deriving the regression equations is known as 155. which have answers as numerical value and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer. Most extreme values which would ever be included in a class interval are called 154. None of these. Class limits. The unit of measurement in tabulation is shown in 153.

If A denotes that a student reads in a school and B denotes that he plays cricket. then the index number of prices for the place is now (index number of prices of base period = 100) (a) (b) (c) (d) 100 135 65 None of these.5. 160. The probability distribution of a statistic. 204 . then 157. 71 Km/hr. None of these. 50 Km/hr. Never negatively skewed. The ratio between the speeds of two trains is 7 : 8. The distribution of a parameter. the speed of the first train is (a) (b) (c) (d) 10 Km/hr. P(A∩B) = 1 P(A∪B) = 1 P(A∩B) = 0 P(A) = P(B) 0 Greater than 0 Greater than equal to 0 Less than 0 The distribution of sample observations. If the second train runs 400 Kms. The distribution of random samples. Symmetrical when p = 0. 156.(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Never positively skewed. Probability mass function is always 158. If now the prices of all the commodities in a place have been decreased by 85% over the base period prices. in 5 hours. The sampling distribution is 159.

M Median G. Under Algebraic Method we get ______ linear equations. 164. Difference between the maximum & minimum value of a given data is called______ . (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 5 7 3 –4 Annuity immediate Annuity regular Annuity due Annuity special Width Size Range Class A.M Mode Range Mean Median Mode One Two Three Five 162. ß be the roots of the equation 2x2 – 4x – 3 = 0 . If α . 165. 167. If the probability of a horse A winning a race is 1/6 and the probability of a horse B 205 . ______ is used when distribution pattern has to be studied at varying levels.PART II 161. 163. ______ is extremely sensitive to the size of the sample.the value of α 2 + ß2 is ______ . 166. In ______ first payment/receipt takes place at the end of first period.

winning the same race is ¼, ______ is the probability that one of the horses will win. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) PART III 171. Solve for y in the equation
(a) (b) (c) (d) –1 7 1 –
1 7

5/12 7/12 1/12 1/7 Poisson Normal Binomial t Normal Poisson Binomial Sampling 5 3 4 6
y + 11 y + 1 y + 7 − = and the value of y is 6 9 4

168. ______ distribution is sometimes known as the “distribution of rare events” .

169. The Standard deviation of the ______ distribution is called standard error.

170. For 5 sample values, we have ______ degree of freedom.

172. If 5Pr = 60, then the value of r is (a) (b) (c) 3 2 4
206

(d)

None of these.

173. A question paper contains 6 questions, each having an alternative. The number of ways an examiner can answer one or more questions is (a) (b) (c) (d) 174. 720 728 729 None of these.
2x 2 − 7 x + 6 is equal to 5 x 2 − 11x + 2 1/9 9 –1/9 None of these.
( −1 / 2) x −3 / 2 (1/ 2) x −3 / 2 (1/ 2) x 3 / 2 None of these. 3x − x 2 − x 5 / 5 3x + x 2 − x 5 / 5 3x + x 2 + x 5 / 5 None of these.

lim
(a) (b) (c) (d)

x →2

175. If y = x −1 / 2 then dy / dx is
(a) (b) (c) (d)

176. Integrate w.r.t x, ( 3 − 2 x − x 4 ) (a) (b) (c) (d) 177.
2 0

3x 2 dx is 7 –8 8 None of these.

(a) (b) (c) (d)

178. If there are two groups containing 30 and 20 observations and having 50 and 60 as arithmetic means, then the combined arithmetic mean is

207

(a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b)

55 56 54 52 New SD would be also multiplied by 2. New SD would be half of the previous SD. New SD would be increased by 2. New SD would be decreased by 2. 30 42 44 37 0 –2 1 –1 r=1 r = –1 r=0 (a) or (b) 0.25 0.50 0.75 1.00 1/9 5/36
208

179. If all the observations are multiplied by 2, then

180. The median of 27,30,26,44,42,51,37 is

181. The minimum value of correlation coefficient is

182. The two lines of regression become identical when

183. If an unbiased coin is tossed twice, the probability of obtaining at least one tail is

184. In a single throw with two dice the probability of getting a sum of five on the two dice is

(c) (d)

5/9 None of these.

185. A card is drown from each of two well-shuffled packs of cards.The probability that at least one of them is an ace is (a) (b) (c) (d) (a) (b) (c) (d) 1/169 25 /169 2 /13 None of these. 8/3 8/9 4/3 None of these.

186. In Binomial distribution if n = 4 and p = 1/3 then the value of variance is

187. A die was thrown 400 times and ‘six’ resulted 80 times then observed value of proportion is (a) (b) (c) (d) 0.4 0.2 5 None of these.

188. If the prices of all commodities in a place have increased 1.25 times in comparison to the base period, the index number of prices of that place is now (a) (b) (c) (d) 189. (a) (b) (c) (d) 125 150 225 None of these. 6 7 5 None of these.

The solution of the equation (p+2) (p–3) + (p+3) (p–4) = p(2p–5) is

209

190. The effective rate of interest corresponding to a nominal rate 3% p.a payable half yearly is (a) (b) (c) (d) 3.2% p.a. 3.25% p.a 3.0225% p.a None of these.

191. The present value of annuity of Rs. 5000 per annum for 12 years at 4% p.a C.I. annually is (a) (b) (c) (d) Rs. 46000 Rs. 46850 RS. 15000 None of these.

192. A person has 8 friends. The number of ways in which he may invite one or more of them to a dinner are (a) (b) (c) (d) (a)
(b) (c) (d)

250 255 200 None of these.
2n2 n2 n2 / 2 4n 2

193. The sum of n terms of the series 2 + 6 + 10 + ……. is

194. If A has 32 elements B has 42 elements and A ∪ B has 62 elements. Find the number of elements in A ∩ B. (a) (b) (c) (d) 195.
x →1 / 2

74 62 12 None of these.

lim

8x 3 − 1 6x 2 − 5x + 1 5

is equal to

(a)

210

(b) (c) (d) (a) (b) (c) (d)

–6 6 None of these. 18 : 25 8 : 25 17 : 24 None of these.

196. If a : b = 3 : 4, the value of (2a+3b) : (3a+4b) is

197. The value of 81/3 is (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d)
4

3 2 4 2 None of these. log 1 + log 2 + log 3 log 3 log 2 None of these. 2 9 16 16 9 2 Both (a) and (b) –2 –9 –16

198. log (1 × 2 × 3) is equal to

199. The three numbers in A.P. whose sum is 27 and the sum of their squares is 341 are

200.
0

3x + 4 dx is equal to
(a) (b) (c) (d) 9/112 112/9 11/9 None of these.

211

BOARD OF STUDIES

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT-6/2006
Time : 4 hours The test is divided into four sections. Please follow the instructions given in each section carefully and answer the questions. Maximum Marks : 200

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)
(i) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 11 to 20 are the fill in the blank based questions having four alternate options and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer. Questions 23 to 60 are numerical based questions, which have answers as numerical values and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Transactions between owner and business are recorded as per (a) (b) (c) (d) 2. (a) Periodicity. Going concern. Prudence Business Entity. Salary paid to manager.
212

(iii)

(iv)

PART I
1.

Which of the following items is not an asset?

(b) (c) (d) 3. (a) (b) (c) (d) 4. (a) (b) (c) (d) 5. (a) (b) (c) (d) 6. (a) (b) (c) (d) 7. (a) (b) (c) (d) 8.

Accounts payable. Sales. Debtors. Business Industry. Economy. Individual business entity. None of the three. Goods are purchased on cash basis for Rs.1,000. Salaries paid for the month of May, 2006. Land is purchased for Rs.10 lacs. An employee dismissed from the job. Providing information about the assets, liabilities and capital of business entity. Maintaining records of business. Providing information about the performance of business entity. Providing details about the personal assets and liabilities of the owner. Drawings. Liabilities. Expenses. None of the three. All purchases. All purchases of goods dealt in by the firm. Credit purchases of goods dealt in by firm. Cash purchase of goods dealt in by firm.

The information provided in the annual financial statements of an enterprise pertain to

Which of the following is not a transaction?

All the following statements are objectives of accounting except

Payment of personal expenses of the owners of the business need to be recorded as

The purchases Journal records

Which of the following lists the balance and the title of accounts in the ledger on a given date? (a) (b) P & L Account. Balance sheet.

213

depreciation is calculated on If the date of maturity of a bill is a holiday. then the bill will mature on PART II 11. debit. Business entity. 214 . Payee. (a) (b) (c) (d) Earnings Statement Trial balance. (a) (b) (c) (d) Conservatism. None of the three. Drawer. None of the three. Original cost. (a) (b) (c) (d) 10. Written down value. Maker. Next working day. credit. Under straight line method. Drawee.(c) (d) 9. every transaction affects at least ______account(s). asset. Payee. In double entity book keeping system. Preceding working day. Drawer. Payer. (a) One. Holiday itself. Payee. Credit. Money measurement. ____________principle requires that the same accounting method should be used from one accounting period to the next. Other agreed day. Scrap value. Liability. (a) (b) (c) (d) 12. The left side of an account is known as _________ and the right side as___________. Consistency. Debit. A promissory note is drawn by_______in favour of his________________. (a) (b) (c) (d) 14. 13.

Imprest. (a) (b) (c ) (d) Consignee. Carriage account. Two. The petty cashier generally work on_________system. None of the three. Consignor. Scrap value of an asset means the amount that it can fetch on sale at the ______of its useful life. (a) (b) (c) (d) Beginning. 19. None of the three.(b) (c) (d) 15. (a) (b) (c) (d) 18. (a) (b) (c) (d) Loss. Consignor. Carriage charges paid for a new plant purchased if debited to carriage account would affect (a) (b) (c) (d) Plant account. Accrual. 17. Four. None of the three. 16. Revenue Asset. Plant and carriage accounts. consignee. Proforma invoice is a statement of information in the firm of invoice prepared by the __________to appraise the __________ about certain essential particulars of the goods. Liability. 215 . None of the three. All expense and_________accounts appearing in the trial balance are transferred to the trading and profit and loss account. Balancing. Three. Buyer/Seller. End Middle.

None of the three. PART IV 23. Substance over form. None of the three. They admit C as a new partner for 3/10th share. The transactions and events recorded in the books of account and presented in the financial statements. A and B are partners sharing profits in the ratio of 3:2. He justifies his contention on the basis that business and the proprietor are two different entities as per business entity concept and therefore drawings should be charged at the same price on which the goods are sold to the outside customers. However. PART III 21. withdrew some goods from the business for his personal use. Selling price. The amount due to the retiring partner on account of goodwill is debited to the continuing partners in their __________. Capital ratio. should be governed by the substance of such transactions and not merely by their legal form as per (a) (b) (c) (d) Faithful representation. Mr. The new profit sharing ratio of A. which he acquires 2/10 from A and 1/10 from B. Fair value. the drawings should be recorded? (a) (b) (c) (d) 22. 3:3:4. Neutrality.20. The accountant of the firm recorded this transaction on the basis of selling price of goods. A. A emphasizes that he should be charged with only the cost price of the goods withdrawn by him. Cost price. B and C is (a) (b) (c) (d) 3:4:3. Gaining ratio. (a) (b) (c) (d) Profit sharing ratio. The substance of the transactions gets preference over legal position. 4:3:3. At which price. Sacrificing ratio. 216 . Fair disclosure. the owner of M/s Apex Ltd. Mr.

The number of shares to be issued by G Ltd.00.25. Purchases Purchase Returns Sales Sales Returns (a) Rs. Following figures have been taken from the trial balance of a trader.10. G Ltd.000.000 Rs.30.000 The value of goodwill on the basis of three years’ purchase of average profits based on the last four years will be (a) (b) (c) (d) 25.10 at a premium of Rs.000. 5.000 shares 7. Rs. A and B are partners in a firm sharing profits in the ratio of 3:2. Rs.000.00.000.40.375 shares 5. The amount of profit will be 217 . The profits for the last four years are given as follows: Year 2000 2001 2002 2003 Rs. Rs. None of the three.000 None of the three.000. by issue of shares of Rs.2.1. The firm goodwill was valued at Rs.000 50.50.000 Rs.000/-. 5.000 60. Rs.000 from H Ltd. They admit C as the new partner for 1/6th share in the profits. acquired assets worth Rs. Rs.50.000. 5. 40. C’s account will be debited by (a) (b) (c) (d) Rs. For adjustment of goodwill.000 50.20.000 shares 26.000 27. to settle the purchase consideration will be (a) (b) (c) (d) 6.000 Rs.1.1.15. Rs.24.500 shares 9.75.

Rs. 5. Mr. Rs.500. but could not paid the allotment money of Rs. The amount of abnormal loss will be (a) (b) (c) (d) Rs. 30. 1. None of the above.000.000 was purchased on 1st October.000.100 per case.as freight and cartage.2.(b) (c) (d) 28.each at a premium of 20%. Yatharth consigned to Mr.1.60 lacs. In the books of the company. It was decided that the purchase consideration will be discharged by issue of 10% debentures of Rs. Sharma holding 1000 equity shares of Rs. Mr.each issued at a discount of 10% could pay Rs. The balance of furniture and fixtures as on 1st April. 29. None of the three.500.250. shares forfeited account will be credited by (a) (b) (c) (d) Rs. 2.2. 3. None of the three.50 on application.10/.5.000. 10000.000. 2005.7. method.1.5 per share and his shares were forfeited. purchased assets of Alfa Ltd. Rs.10. Ramesh 100 cases of tea costing Rs.500. None of the above. Depreciation is charged @ 10% on W. Rs.5.D.10/. 218 .750. Rs.1. 2005 was Rs.500. He paid Rs.1.1.1. 31. Mr. for purchase consideration of Rs. Rs. Rs.500.050/-.1. The depreciation for the year ended 31st March.000/. 2006 will be (a) (b) (c) (d) Rs.V. Furniture of Rs.3. Ramesh could take delivery of only 90 cases since 10 cases were loss in transit. The number of debentures issued will be (a) (b) (c) (d) 6000.100/-.000/-. Rs. Omega Ltd. Rs.

32.

Asha Deep Company Ltd. issued 1,00,000, 7% debentures of Rs.100 each at a discount of 4% redeemable after 5 years at a premium of 6%. Loss on issue of debentures is (a) (b) (c) (d) Rs.10,00,000 Rs.6,00,000. Rs. 16,00,000. Rs.4,00,000.

33.

Om, Jai and Jagdish are partners sharing profits and losses in the ratio of 5: 3 :2. Om retires and goodwill is valued at Rs.50,000. New profit sharing ratio of Jai and Jagdish will be equal. For the adjustment of goodwill, Jai and Jagdish’s capital accounts will be debited by: (a) (b) (c) (d) Rs. 15,000 and Rs.10,000 respectively. Rs.10,000 and Rs.15,000 respectively. Rs.20,000 and Rs.5,000 respectively. Rs.5,000 and Rs.20,000 respectively.

34.

The date of maturity of bill is 10th October, 2006. The Government of India declares 10th October, 2006 as the holiday under the Negotiable Instruments Act, then the bill will mature on (a) (b) (c) (d) 9th October, 2006 10th October, 2006. 12th October, 2006. 11th October, 2006.

35.

A Ltd. Company purchase machinery on 1st April, 2004 for Rs.1,00,000. The depreciation on this machinery is charged @ 10% per annum on straight line method. On 30th October, 2006 machinery is sold for Rs.89,000. The profit or loss on sale of such machinery is: (a) (b) (c) (d) Profit of Rs.12,000. Loss of Rs.12,000. Profit of Rs.14,000. Loss of Rs.6,000.

36.

The following are the details regarding purchases of a certain item during the month of January. January 1 January 8 Purchases Purchases 200 units 900 units @Rs.7 @Rs.8 Rs. 1,400 Rs. 7,200

219

January 25 January 30

Purchases Purchases

300 units 400 units

@Rs.9 @Rs.10

Rs. 2,700 Rs. 4,000 Rs.15,300

A physical inventory of the items taken on January 31 shows that there are 700 units in hand. The valuation of inventory as per FIFO method is: (a) (b) (c) (d) 37. Rs.5,400. Rs.6,700. Rs.8,600 Rs.5,000.

Our promissory note for Rs.5,000 in favour of Mohan settled by sending him Tania’s acceptance for Rs.5,000. The required Journal entry will be (a) (b) (c) (d) Mohan To Tania Tania To Mohan Bill receivable Bill payable Dr. Dr. 31st Rs.5,000 Rs.5,000 Rs.5,000 Rs.5,000 To Bills payable To Bills receivable Dr. Rs.5,000 Rs.5,000 Dr. Rs.5,000 Rs.5,000

38.

March, 2006. The debit total of Shyam prepared a trial balance for his factory on the trial balance was short by Rs.500. He transferred the deficiency to a suspense account. In April, 2006 after a close examination, he found that the purchases day book for September, 2005 was under castes by Rs.500. The necessary Journal entry to rectify the error will be (a) (b) (c) (d) Purchases A/c To Cash A/c Suspense A/c To Purchases A/c Purchases A/c To Suspense A/c None of the above. Rs.10,000 Dr. Rs.500 Rs.500 Dr. Rs.500 Rs.500 Dr. Rs.500 Rs.500

39.

The following particulars relate to the business of Mohan on March 31, 2006. Balance as shown by the cash book

220

Cheques issued but not presented for payment Rs. 4,000 Cheque deposited but not yet collected Balance as shown by the Bank pass book will be (a) (b) (c) (d) 40. (a) (b) (c) (d) 41. Rs.9,000. Rs.10,000. Rs.11,000 None of the above. Repairs to building wrongly debited to Building A/c Total of Purchase Journal by Rs.1,000 short. Freight paid on new machinery debited to Freight A/c None of the three. Rs. 3,000

Which of the following errors will affect the trial balance?

A’s acceptance to B for Rs 10,000 renewed at 2 months on the condition that Rs 4,000 be paid in cash immediately and the remaining amount will carry interest @ 12% p.a. The amount of interest will be (a) (b) (c) (d) 120 80 90 160

42.

On 1.1.2005, a machine costing Rs.10,000 and a piece of furniture costing Rs.20,000 was purchased. Depreciation is provided @ 5% on furniture and 10% per annum on machine. The depreciation for the year ended 31st March, 2005 should be: (a) (b) (c) (d) Rs.1,000. Rs.300 Rs.1,250 None of the three.

43.

On 1st February, 2005, a loan of Rs.10,000 was given @ 12% per annum. Interest was received for 3 months from February to April in April, 2005. In the financial statements of the year ended 31st March, 2005 amount of accrued interest should be: (a) (b) (c) (d) Rs.100. Rs.200 Rs.300 Rs.1200

221

44.

Goods costing Rs.4,80,000 were sent on consignment basis. Goods are invoiced at 125% of the cost price. The invoice price and the loading will be: (a) (b) (c) (d) Rs.6,00,000 and Rs.1,00,000. Rs.5,00,000 and Rs.1,00,000. Rs.6,00,000 and Rs.1,20,000. Rs.5,00,000 and Rs.1,20,000.

45.

Mr. A sent 250 units costing Rs.10,000 each to Mr. B. The goods were to be sold as to yield a gross profit of 20% on sales. Mr. B sold 150 units @ Rs.14,200 per unit on credit and 75 units @ Rs.14,000 for cash. Mr. B is entitled to a commission Rs.500 per unit. The amount of commission will be: (a) (b) (c) (d) Rs.75,000 Rs.37,500 Rs.1,12,500 Rs.85,000

46.

Ram and Shyam enter into a joint venture. Both of them deposited Rs.65,000 and Rs.32,500 respectively into a joint venture. Goods were purchased for Rs.75,000 and expenses amounting Rs.10,950 were incurred. Goods sold for Rs.90,000 and goods unsold were taken over by Ram at an agreed value of Rs.2,700. The profit on joint venture is: (a) (b) (c) (d) Rs. 17,700 Rs. 4,500 Rs. 4,050 Rs.6,750

47.

On 1st January Shilpa owes Rs.10,000 and accepts a 3 months bill for the amount. On the date of maturity Shilpa, not being able to meet the bill of first Rs.4,000 and asks to draw another bill for three months for the balance amount with interest @ 15% per annum. The amount of interest should be (a) (b) (c) (d) Rs.200 Rs.225 Rs.500 Rs.900

48.

A draws a bill of Rs.10,000 on B on 23rd December, 2005 for one month. The bill is accepted on 25th December, 2005 by B. The due date of the bill will be: (a) (b) 26th January, 2006. 28th January, 2006.

222

(c) (d) 49.

27th January, 2006. 25th January, 2006.

On 1st January, 2006, Vimal sold goods worth Rs.20,000 to Renu and drew a bill on Renu for 3 months. Renu accepted the bill and returned it to Vimal who discounted the bill with bank on 4th February, 2006 @ 15% per annum. The discounted charges will be: (a) (b) (c) (d) Rs.3,000 Rs.750 Rs.500 None of the three.

50.

X and Y are partners sharing profit and losses in the ratio of 2:1. On 1st January, 2006, Z is admitted with 1/4th share in profits with guaranteed amount of Rs.25,000. The profits for the year ended 31st December, 2006 amounting to Rs.76,000. The share of Y in the profits should be: (a) (b) (c) (d) Rs.19,000 Rs.38,000 Rs.17,000 None of the above.

51.

Dheeraj and Gopal are partners in a firm with capitals of Rs. 5,00,000 each. They admit Deepak as a partner with ¼th share in the profits of the firm. Deepak bring Rs. 8,00,000 as his share of capital. The profit and loss account showed a credit balance of Rs. 4,00,000 as on the date of his admission. The value of hidden goodwill will be (a) (b) (c) (d) Rs.14,00,000. Rs. 18,00,000. Rs. 10,00,000. None of the above.

52.

X and Y are partners sharing profits and losses in the ratio of 2: 1. They admit Z into partnership and the profit sharing ratio of the three partners is agreed at 2:2:1. The gaining or sacrificing ratio among X and Y will be: (a) (b) (c) (d) Gaining ratio of 4:1. Gaining ratio of 1:4. Sacrificing ratio of 1:4. Sacrificing ratio of 4:1.

223

53.

Alfa Ltd. issued 20,000, 8% debentures of Rs.10 each at par. The debentures are redeemable at a premium of 20% after 5 years. The amount of loss on redemption of debentures should be: (a) (b) (c) (d) Rs. 50,000 Rs. 40,000 Rs. 30,000 None of the above.

54.

Gama Ltd. issued 10,000, 10% debentures of Rs.100 each at a discount of 10%. The entire amount is payable on application. Application were received for 12000 debentures. The allotment of debentures was made on 10th October, 2006. The amount which should be credited to the debentures account on 10th October, 2006 will be: (a) (b) (c) (d) Rs.12,00,000. Rs.10,80,000. Rs.9,00,000 Rs.10,00,000

55.

Indigo Ltd. had 9000, 10% redeemable preference shares of Rs.10 each, fully paid up. The company decided to redeem these preference shares at par by the issue of sufficient number of equity shares of Rs.10 each fully paid up at a discount of 10%. The number of equity shares issued should be: (a) (b) (c) (d) 9,000 11,000 10,000 None of the above.

56.

A firm dealing in cloth has 15000 meters of cloth on April 1, 2005 valued at Rs.1,50,000 according to LIFO. The firm purchased 20000 meters @ Rs.12 per meter during the year ending 31st March, 2006 and sold 30000 meters @ Rs.25 per meter during the same period. As per LIFO, the closing stock will be valued at: (a) (b) (c) (d) Rs.60,000 Rs.1,25,000 Rs.50,000 None of the above.

57.

On January 1, 2006 Victory Ltd., purchased a second hand machinery for Rs.50,000 and spend Rs.2,000 as shipping and forwarding charges, Rs.1,000 as import duty, Rs.1,000 as carriage inwards, Rs.500 is repair charges, Rs.200 as installation charges,

224

Rs.400 as brokerage of the middle man and Rs.100 for an iron pad. Total cost of machinery is (a) (b) (c) (d) 58. Rs.55,100 Rs.55,000 Rs.54,600 Rs.55,200.

On 1-4-2005, Ram invested Rs.1,00,000 in a business. Interest of capital is to be allowed @ 12% per annum. Accounting year is financial year. Amount of interest to be charged to P & L Account for the year 2005-2006 is: (a) (b) (c) (d) Rs.9,000. Rs.10,000 Rs.12,000 None of the above.

59.

Goods costing Rs.1,20,000 were sent on consignment basis. These goods are invoiced to give a gross margin of 20% on invoice price. The amount of loading is: (a) (b) (c) (d) Rs.24,000. Rs.30,000. Rs.20,000. None of the above. Rs.1,000 Rs.1,600

60.

Mohan’s trial balance contains the following information: Discount received Provision for discount on creditors

It is desired to maintain a provision for discount on creditors at Rs.1,100. The amount to be credited to P & L Account is (a) (b) (c) (d) Rs.1,500 Rs.3,500. Rs.1,000. Rs.500.

225

SECTION – B : MERCANTILE LAWS (40 MARKS)
(i) (ii) Questions 61 to 79 have only one correct answer and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0.25 mark for each wrong answer. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer.

(iii)

PART I 61. A mate’s receipt (a) (b) (c) (d) 62. (a) (b) (c) (d) 63. Is a document of title to goods. Is an acknowledgement for the receipt of goods. Both the above. None of the above. The above statement is correct. The above statement is not correct in case of unregistered partnerships. The above statement is incorrect. The above statement is correct only in case of registered partnerships.

Each partner is a principal as well as an agent of other partners.

A contract was entered before 1st September, 1872 is governed by The Indian Contract Act, 1872 (a) (b) (c) (d) Yes if the contract was entered in Indian soil. Yes if there was performance of the contract on or after 1st September 1872. No as the act does not apply retrospectively. No as there was no performance on or after 1st September 1872. Can be transferred in accordance with the terms and conditions contained in the partnership deed. Can be transferred only if all the partners agree for such transfer Cannot be transferred at all. Can be transferred through the recognized stock exchanges.

64.

A share in a partnership: (a) (b) (c) (d)

226

None of the above. Which of the statement is incorrect? (a) (b) (c) (d) 69.65. Joint Hindu Family is governed by Hindu Law. B does the work. B accepts the invitation. 66. Joint Hindu Family is governed by the Civil Procedure Code. A engages B for a certain work and promises to pay such remuneration as shall be fixed by C. Risk in the goods passes to the buyer. Which of the following is not correct? (a) (b) (c) (d) Joint Hindu Family is governed by law relating to registration of agreements. A voidable contract is not voidable at the option of the aggrieved party. Which one of the following is not a contract? (a) (b) (c) (d) 68. All illegal agreements are void but all void agreements are not necessary illegal. The difference between contingent contract and wagering agreements are as follows: (a) (b) (c) (d) 70. In a wagering agreement the uncertain event is the sole determining factor while in a contingent contract the event is only collateral. A invites B to a card party. 1872 if (a) (b) The agreement is expresses in writing. A and B promise to marry each other. A takes a seat in a public vehicle. In case of sale (a) (b) (c) (d) 67. Both (a) & (c) Property in goods passes to the buyer. A wagering agreement is void whereas a contingent contract is valid. Both the above. The agreement is made on account of natural love and affection or the parties to the agreement stand in a near relation to each other. A wagering agreement consists of reciprocal promises whereas a contingent contract may not contain reciprocal promises. All of the above. All of the above. 227 . Contracts that are immoral or opposed to public policy are illegal in nature. An agreement made without consideration is valid under Section 25 of The Indian Contract Act.

Only after the Registrar of Firms records an entry of the statement in the Register of Firms to this effect. Minor can be a beneficiary.(c) (d) 71. After giving the information to the Central Government in this regard. As soon as an application in the prescribed form with the prescribed fee and other relevant details is delivered to the Registrar of Firms. Both the above. Consideration may be past. Consideration should be always monetary. Minor can always plead minority. Modifying or altering the terms of contract such that it has the effect of substituting a new contract for the old one. None of the above. Only after the issue of certificate of Registration by the Registrar of Firms. Breach of warranty. Which of the following is not correct? Which of the following is not correct? Novation means The following may be treated as a breach of warranty: Registration of a partnership is complete 228 . Breach of condition. Minor is liable for necessaries supplied to him. (a) (b) (c) (d) 74. Minor is a person who has not completed 18 years of age. Substituting a new contract for the old one. but should be real and supported by free consent. (a) (b) (c) (d) The document is registered under the law for the time being in force for registration of such document. Consideration must be at the desire of the promisor. Consideration need not be adequate. All of the above. Dispensing away the performance of the promise made by the other party. (a) (b) (c) (d) 72. present or future. Cancellation of the old contract. (a) (b) (c) (d) 75. (a) (b) (c) (d) 73.

Coercion. None of the above.00.000/-) for Rs. (a) Unilateral Contract 229 . A company may be in the form of (a) (b) (c) (d) An unincorporated association.00. the other party having fulfilled his obligation at the time of the contract or before the contract comes into existence is known as__________. Sleeping Partner. ‘Price’ under Section 2(10) of The Sale of Goods Act. Goods that are identified and agreed upon at the time of contract of sale are known as________. Money or money’s worth.5. 78. The student sold the same at the desired price of the teacher.000/-. Specific Goods Existing Goods Future Goods Generic Goods A contract in which only one party has to fulfill his obligation at the time of the formation of the contract. Monetary consideration for the sale of goods. Incorporated association. All of the above. (a) (b) (c) (d) 81. Both the above. Fraud.76. A student was motivated by his teacher to sell his car (value being Rs.10. Misrepresentation. None of the above. Any consideration that can be expressed in terms of money. 77. Nominal Partner. The student can sue the teacher on the ground of (a) (b) (c) (d) Undue Influence. 1930 means (a) (b) (c) (d) PART II 80. Active Partner. Types of partners includes (a) (b) (c) (d) 79.

(b) (c) (d) 82. (a) (b) (c) (d) 86. Agreement for the creation of monopolies__________. An auction sale is an example of _________. (a) (b) (c) (d) The buyer The seller Both the buyer and the seller The insurance company Invitation to treat an offer Mere communication of information in the course of negotiation Statement of intention Offer Is allowed in the interest of economy Is opposed to public policy and hence void Is not detrimental to any nation Is impossible because of perfect competition in today’s scenario Where obligations are created without a contract Where obligations are created under a contract Out of natural causes Out of man-made causes There are two parties to the contract 84. (a) (b) (c) (d) 87. (a) (b) (c) (d) 85. Bilateral Contract Quasi Contract Express Contract An offer made to the public in general which anyone can accept and do the desired act is________. In case of a contract of guarantee__________. Quasi – contracts arise __________. subsequent loss or destruction of the goods is the liability of _______ . (a) (b) (c) (d) General Offer Special Offer Cross Offer Counter Offer 83. (a) 230 . In case of an agreement to sell.

(a) (b) (c) (d) 92. (a) (b) (c) (d) 89.(b) (c) (d) 88. (a) (b) 231 . Registration of a partnership firm is __________. Goods that are defined only by description and not identified and agreed upon at the time of contract of sale are known as__________. Delivery by acknowledgment is_________. Rights of an unpaid seller include_________. There are three parties to the contract There should be at least two parties to the contract There should be at least five parties to the contract Express or implied agreement Ratification Operation of law All of the above The relationship of principal and agent may arise by_________. (a) (b) (c) (d) 93. (a) (b) (c) (d) Specific Goods Existing Goods Future Goods Unascertained Goods Actual Delivery Constructive Delivery Symbolic Delivery None of the above Owner of the goods Bailee of the goods Hirer of the goods None of the above Right against the goods Right of stoppage in transit Right of re-sale All of the above Compulsory from the beginning Not compulsory till first five years of beginning of the partnership 90. (a) (b) (c) (d) 91. In case of a sale the position of a buyer is that of _________.

(c) (d) 94. Ltd sold tyres to a dealer S. Before or after he became a partner Which is enforceable Which is legal Between two or more persons The object of which is not prohibited by law. and if the tyres were sold at a price lower than the list price. D P Tyre Co. Not compulsory at all Compulsory only if the Registrar of Firms gives an order in this regard Dissolution of the partnership. One of the essential elements of a partnership is agreement _________. Revision of the partnership. Any time after even he ceases to be a partner and upto his death. (a) (b) (c) (d) By sale By mortgage By charge All of the above PART III 99. Before he became a partner After he became a partner. Reconsidering of the partnership. As per Section 29 of the Indian Partnership Act. a penalty 232 . (a) (b) (c) (d) 96. who sold those to D. A person is deemed to be in a position to dominate the will of the other when he __________. 1932 a partner may transfer his interest in the firm________. Induction of a new partner to carry on the partnership. a sub-dealer on the condition that those tyres would not be sold at a price lower than the list price fixed by D P Tyre Co. (a) (b) (c) (d) Holds real authority over the other Holds apparent authority over the other Stands in a fiduciary relation to the other All of the above 98. Ltd. (a) (b) (c) (d) 95. (a) (b) (c) (d) 97. A new partner is held liable for all acts of the firm done __________. Death of a partner ordinarily leads to _________.

Which of the following is correct? (a) (b) (c) (d) Estate of B is liable for the act of the firm done after the death of B. A. Ltd filed a suit against S. B was murdered by D. D sold five tyres below the list price. B and C are partners in a firm. Yes as D P Tyre Co.of $ 2 for every tyre sold below the list price would be recovered as damages. Ltd was not a party to the contract. No since only 5 tyres are involved and the amount is insignificant. Ltd entitled to maintain the suit? (a) (b) (c) (d) No since D P Tyre Co. 233 . Estate of D is liable for the act of the firm done after the death of B. 100. Yes as D P Tyre Co. The Partnership Deed contains a provision that the firm would not be dissolved after the death of any partner. Estate of B is not liable for the act of the firm done after the death of B. who wanted to become a partner of the firm. but B has raised objections to it. Ltd sold the tyres to S who in turn sold to D. D P Tyre Co. Is D P Tyre Co. Ltd is the producer of the tyres. D is liable for the act of the firm done after the death of B.

The law of consumer surplus is based on (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Indifference curve analysis Revealed preference theory.25 mark for each wrong answer. An indifference curve relating the two goods will be divided into two segments which meet at a right angle. (ii) Questions 117 to 132 are Fill in the blanks type and carry + 1 mark for each correct answer and -0. (iv) Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0. (iii) Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0. The MC curve cuts the AVC and ATC curves 234 . At their respective minimas. At the rising part of each. 102. Stock concept A flow concept Both stock and flow concept.25 mark for each wrong answer.25 mark for each wrong answer. PART I 101. Law of substitution The law of diminishing marginal utility. An indifference curve relating the two goods will be linear. An indifference curve relating the two goods will be curvilinear. At the falling part of each.25 mark for each wrong answer. None of these. Supply of a commodity is a 103.SECTION – C : GENERAL ECONOMICS(50 MARKS) (i) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. At different points. If two goods were perfect substitutes of each other. it necessarily follows that 104. An indifference curve relating the two goods will be convex to the origin.

Resource specialisation. A monopolist who is selling in two markets in which demand is not identical will be unable to maximize his profits unless he (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Sells below costs of production in both markets. The relation between the factors of production. Equates marginal costs with marginal revenue in one market only. In general. Monopolistic competition. 106. Increasing opportunity costs. Which of the following market situations explains marginal cost equal to price for attaining equilibrium? (a) (b) (c) (d) (a) (b) (c) (d) Perfect competition. The short period The market period The long period All of the above. at any point in time we have limited amounts of productive resources. The inverse relationship between the use of technology and the use of natural resources. The economies of scale. Monopoly Oligopoly. Practices price discrimination. The national economy’s annual rate of growth. Equates the volume of sales in both markets. The price of apples. The cost of producing a fire truck for the fire department of Delhi. most of the production functions measure (a) (b) (c) (d) The productivity of factors of production. The relations between change in physical inputs and physical output. 235 109. 107. Which of the following is a reason for the negative slope of the PPF? .105. Which of the following is not microeconomic subject matter? 110. Scarcity. The period of time in which the plant capacity can be varied is known as 108. India The quantity of apples produced for the apple market.

money stock in India refers to 236 . M1 M2 M3 M4 116. Steel Authority of India.111. SJSRY stands for (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Swaran Jayanti Shahari Rozgar Yojana Shahari Jeewan Sudhar Rashtriya Yojana Sampoorna Jeewan Shahari Rozgar Yojana None of the above. finance and labour problems Technical complications All of the above. Which of the following statements is correct with regard to external sector in the prereform period? (a) (b) (c) (d) (a) (b) (c) (d) The foreign trade policy was very liberal. and Bharat Heavy Electricals are all examples of (a) (b) (c) (d) small scale units. Oil and Natural Gas Corporation Indian Oil Corporation. Who is regulatory authority for telecom in India? 113. Which of the following has resulted in failure to achieve targets of industrial production? 114. it allowed import of all types of goods. private sector units public sector units sick units 115. SEBI TRAI MTNL BSNL Poor planning Power. 112. Import of food grains was strictly prohibited The balance of payments situation was quite comfortable None of the above. In the present context.

122. the government coming to the rescue of poor farmers. this means that a rise in the price of one commodity will induce ----------------------------------------. income and consumption methods. Outlay.PART II 117. 120. _______________ controls affect indiscriminately all sectors of the economy. ‘The lender of last resort’ means -------------------------------------. outlay and income methods. Saving. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) An upward shift in demand for the other commodity. Optional. Balance of payments. depreciation and production methods. 121. Giffen goods are those goods -------------------------------------. If two goods are complements. central bank coming to the rescue of other banks in times of financial crisis. commercial banks coming to the rescue of small industrial units. Selective credit Quantitative Margin requirements. 119. Three methods of computing national income are ------------------------------------------------. investment and income methods. 237 . No shift in the demand for the other commodity. Normal profit Net profit Gross profit Supernormal normal profit 118. When AR= Rs 10 and AC=Rs 8 the firm makes --------------------------------. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) For which demand increases as price increases Which have a high income elasticity of demand Which are in short supply None of these Production. A rise in the price of the other commodity. A downward shift in demand for the other commodity.

(a) (b) revenue deficit.is the custodian of monetary reserves in India (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 124. _______________________ is a systematic record of all the economic transactions between one country and rest of the world (a) (b) (c) (d) Balance of trade Balance of transactions Budget Balance of payments.(d) people coming to the rescue of commercial banks in times of their financial crisis. neither household nor movement sector. 20% 30% 40% 123. If borrowings and other liabilities are added to the budget deficit we get ______________. tax for the highest slab) is --------------- 127. SBI SIDBI NABARD RBI household sector only. both household and government sectors. 238 . the marginal rate of income tax(i. capital deficit. About ________________ percent of the external assistance has been in the form of loans. ----------------. At present. 10%. government sector only. Demand for final consumption arises in -----------------------------------.e. 126. (a) (b) (c) (d) 40 30 10 90 128. 129.

PART III Questions 133 to 137 are based on the Figure 1. ----------------percent of the population of India lives below poverty line. In terms of deposit mobilization. DPAP VAMBAY TRYSUM IRDP According to National Sample Survey 2004-05.(c) (d) primary deficit. -----------------------program facilitates the construction and upgradation of dwelling units for the slum dwellers. (a) (b) (c) (d) (a) (b) (c) (d) 22 26 15 25 U.P Maharashtra Kerala Bihar 132. _____________ leads other states. (a) (b) (c) (d) 131. 130. fiscal deficit. Figure 1 239 .

Use Table 1 to answer questions 138-142 Table 1 Number of Workers 1 2 Total Output 10 22 240 . curve E is the firm’s: 136. Perfectly competitive industry. A F B Marginal cost curve Average cost curve Demand curve. the firm’s most efficient output is: (a) K (b) L (c) M (d) N 137. Marginal revenue curve 134. E.133. In figure 1. Monopolist None of the above. In figure 1. Figure 1 represents a (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Perfectly competitive firm. the firm’s most profitable output is: (a) K (b) L (c) M (d) N PART IV Consider Sumit’s production data given in the table 1. In Figure 1. the firm’s marginal revenue curve is curve 135. In figure1.

25 Rs.(As it happens. Suppose Sumit has to pay his workers Rs 20 per hour.00 141. 2. we know that the approximate marginal cost of the 52nd unit of output is: (a) (b) (c) (d) Rs. and further suppose there are no other production costs at all. What is the marginal product of the 5th worker? (a) (b) (c) (d) (a) (b) (c) (d) 12 9 7 8 Rs 2 Rs 80 Rs 5 Rs 20 139.25 Rs 1. Suppose Sumit decides to purchase fire insurance which costs Rs.50 241 . 87.25 Rs 1.600 a year.0. 2.25 Rs. 4. Sumit’s Average Total Cost when 40 units are produced is: 140.50 Rs. it works out to be Rs 10 per hour) The approximate marginal cost of the 52nd unit now is: (a) (b) (c) Rs.3 4 5 6 7 8 9 10 31 40 47 52 56 58 60 61 138. Using data in Table 1.0. In Table 1.

144. 5.00 2 units. (a (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) -20. -0. Refer Table 2 and find the value of y. -3. 7 units. -1. 14 1 0. Refer Table 2 and find the value of x.07.(d) (a) (b) (c) (d) Rs. % change in price % change in quantity demanded(quantity supplied) -1 y 14 Elasticity x 3 1 142. 242 . -45. 3 units. Sumit’s marginal product of the 9th worker: Read table 2 and answer Questions number 143-145 Demand for salt Demand for bananas Supply of chicken 20 15 z 143. 5 units. Can not be determine(d) -5 15.05. 145. 4. Refer table 2 and find the value of z.

2. 1/3 cow.5 and X and Y are complements. what is the opportunity cost to the farmer of feeding one cow? (a) (b) (c) (d) 1 sheep 3 sheep 9 cows. 1/3 sheep. Given the options available to him. 9 sheep.Read table 3 and answer Questions number 146-147 With the same amount of resources. what is the opportunity cost to the farmer of feeding one sheep? (a) (b) (c) (d) 9 sheep.3. 2. If the quantity of CD demanded increases from 260 to 290 in response to an increase in income from Rs 9000 to Rs 9800. 148.3 2. 0. If the quantity of good X demanded increases from 8 to 12 in response to an increase in the price of good Y from Rs 23 to Rs 27. 147. 3 cows. 1.35 and X and Y are substitutes.35 and X and Y are complements.4 0. the cross elasticity of demand for X with respect to the price of Y is approximately: (a) (b) (c) (d) 0.5 and X and Y are substitutes. Given the options available to him.01. 243 . the income elasticity of demand is approximately: (a) (b) (c) (d) 3. 149. a farmer can feed the following combinations of sheep and cows: Table 3 Sheep Option I Option II 84 75 Cows 22 25 146.

2% 22.2% 244 .9% 12. The following table provides a breakdown of a country’s population(millions): Table 4 Total population Unemployed people looking for a job Retired people People confined to correctional institutions 224 18 28 2 Children(below the working age) Full-time students(not looking for a job) Employed people Other adults not in the labour force 36 4 126 14 Based on the information in table4.150.5% 20. the country’s unemployment rate is (a) (b) (c) (d) 7.

None of these. x8 (2x2+1) (b) (c) (d) (a) 154.25 mark for each wrong answer.25 mark for each wrong answer. g(x) = 2x2+1 245 . x3 is equal to x2 + 1 153. Questions 171 to 200 are numerical based questions.SECTION – D : QUANTITATIVE APTITUDE(50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0. A (a) (b) (c) (d) (npq)2 npq (np)2 np A’ is equal to A.25 mark for each wrong answer. (iii) PART I 151. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. Sample Space. φ. which have answers as numerical value and carry + 1 mark each for correct answer and – 0. Standard deviation of binomial distribution is (a) (b) (c) (d) 152. The integral of (a) 1 + 2x 2 +c 4( x 2 + 1) 2 1 − 2x 2 +c 4( x 2 + 1) 2 − (1 + 2x 2 ) 4( x 2 + 1) None of these. Find f o g for the functions f (x) = x8 .

Zero. None of these. The algebraic sum of deviations of a set of observations from their AM is 158. A continuous variable. Methods that are employed for the collection of primary data – . Questionnaire method. Simple Aggregative Method is used for computing a 157. Either (a) or (b). Price index. 246 155. Relative index. Number of petals in a flower is an example of 159. All of these. A variable.(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) x8 2x2+1 (2x2+1)8 Sampling error. A Qualitative characteristic is known as 160. A sample survey is prone to 156. An attribute. None of these. Value index. Positive. Observation method. Interview method. Non-sampling error. A discrete variable. An attribute. Negative. A discrete variable. A continuous variable. Both (a) and (b).

The triplicate ratio of 4:5 is ________. the sum of absolute deviations is ______ when the deviations are taken from the median. (a) (b) Mean Median 247 . PART II 161. The ______ is satisfied when Pab × Pbc × Pca = 1.(d) All of these. ______ is an extension of time reversal test. we consider ______. For a set of observations. 164. 166. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Bell-shaped U-shaped J-shaped Inverted J-shaped Time reversal test Factor reversal test Circular test Unit test Factor reversal test Circular test Unit test None of above 162. When we want to divide the given set of observations into two equal parts. (a) (b) (c) (d) (a) (b) (c) (d) Zero Maximum Minimum None of these 125:64 16:25 64:125 None of these 165. 163. The normal curve is ______.

(c) (d) Mode None of these 167. x. The correlation between demand and price (for normal goods) is ________. If y=x2x then dy is ________. (a) (b) (c) (d) (a) (b) (c) (d) Correlated Uncorrelated Positive correlated Negative correlated Zero Positive Negative None of these 170. Differentiate (a) (b) 2x 1− x2 x 1+ x2 1+ x 2 w. dx (a) (b) (c) (d) 2x2x(1+logx) 2(1+logx) x2x(1+logx) None of these x →1 168.t. The value of lim (a) (b) (c) (d) 1 2 0 3 2x 2 + x − 3 is _______. PART III 171.r. we get 248 . x3 + 9 169. The two variables are known to be _________ if the movement on the part of one variable does not produce any movement of other variable in a particular direction.

3 0. chance of throwing 8 is 249 .–8 None of these. the value of a is x−a 9.3. (d) 172. x9 − a9 = 9.(c) x2 1+ x2 None of these.6. If the coefficient of correlation between two variables is –0. In a single throw with two dice. If lim (a) (b) (c) (d) x →a 173. If the coefficient of correlation between two variables is 0.9 174.–1 8. then the coefficient of determination is (a) (b) (c) (d) 0.09 0. then the percentage of variation accounted for is (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 60% 40% 64% 36% 17/52 1/3 4/13 3/13 1/9 5/36 5/18 2/9 175. What is the chance of picking a heart or a queen not of heart from a pack of 52 cards? 176.–9 1.7 0.

probability will be 179. 1 –1 0 None of these. If an event cannot take place. What is the value of n? (a) (b) (c) (d) 14 16 18 20 180.45. What is the combined mean weight? (a) (b) (c) (d) 46 47 48 49 182.50 – 6. 178. then y is (a) (b) (c) (d) 6. Find median wage.47.56.66 – 6. (a) (b) 47 48 250 . A ball is drawn from it. The mean weight for a group of 40 female students is 42 kg and that for a group of 60 male students is 52 kg.54. Two variables x and y are related by 5x + 6y + 9 = 0 and x = 6. The mean of binomial distribution is 4 and standard deviation 3 .38.177. The wages of 8 workers expressed in rupees are 42.55. The probability that it will be green is (a) (b) (c) (d) (a) (b) (c) (d) 1/10 1/3 1/2 None of these.49. A bag contains 10 red and 10 green balls.50 6.66 181.

36. Ravi will receive for Rs. (a) (b) (c) (d) (a) (b) (c) (d) Rs.02 Rs. y–2x+2=0 y–3x+4=0 y–4x+3=0 y–2x+4=0 186.5938.19.5893.02 Rs.36.291 – 2. 4) and slope 2 is 251 . 184. of students (Frequency) 4 5 7 16 Find class mark for the first class interval.5000 None of these.4000 @10% rate of interest for 4 years.192 185. The equation of a line passing through (3. (Class interval) 44 – 48 49 – 53 54 – 58 Total (a) (b) (c) (d) 4 46 44 48 No.192 2.P with first term and common ratio being 8 and 3 respectively (a) (b) (c) (d) 2. Refer following table: Frequency distribution of weights of 16 students Weight in kg. Find the sum of 10 terms G.63.(c) (d) 49 50 183. If compounding is done quarterly what will be the amount Mr.631 2.

37. –3 2. Eleven students are participating in a race. 12:21 28:9 9:28 None of these. 1 1 1 188. Solve for x. . The ratio compound of two ratios 4:3 and 7:3 is 252 .3 50 years.9 1. 2 4 8 (a) (b) (c) (d) 1.998 1. 4x–3. . A sum of money doubles itself in 25 years.5 years. Find the logarithmic of 58.989 1. In how many ways the first 5 prizes can be won? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 44550 55440 120 90 4. 75 years.10 terms.564 to the base 11 2 (a) (b) (c) (d) 3 4 2 None of these. .…………… . None of these.89 189. 6 2. 190.2x+2 +25=0 191.187. Find the sum of progression 1. The number of years it would trebles itself is 192. 8 –2.

Find them. 194. 20. Find the value of n if (n+1)! = 42 (n–1)! 198.95 per share. Evaluate the value of 0 ( 3x 2 + 5x + 2) dx (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 55 55.4} is . A plans to invest upto Rs.000 175x+95y > 30.3 193.5 57 56 9 45 40 None of these.000 175x+95y = 30. The number of subsets of the set {1.2. 6 –7 7 –6 13 12 16 15 253 197. If the antecedent is 25. 18 10.3. The ratio of two quantities is 5:9.175 and Stock Y(y) at Rs.000 None of these. the consequent is 195. 15 None of these. Mr.50. Stock X(x) is priced at Rs.000 in two stocks X and Y. 196. 12 17. This can be shown by (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 175x+95y < 30. The sum of two numbers is 38 and their difference is 2.

A box contains 7 red. How many selections of three balls can be made so that none is red? (a) (b) (c) (d) 90 120 48 24 254 . 6 white and 4 blue balls.199. The derivative of 8x2–2x+5 is (a) (b) (c) (d) 16x+2 16x–2 16x–2+5 16x+7 200.

Money measurement concept.BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT-7/2006 Time : 4 hours The test is divided into four sections. which have answers as numerical values and carry + 1mark each for correct answer and – 0. Maximum Marks : 200 SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) (1) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0. Trial Balance. 255 (iii) (iv) PART I 1. Please follow the instructions given in each section carefully and answer the questions.25 mark for each wrong answer. Questions 11 to 20 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. Cost concept. (a) Accrual concept. Questions 23 to 60 are numerical based questions.25 mark for each wrong answer. “Assets should be valued at the price paid to acquire them” is based on (a) (b) (c) (d) 2.25 mark for each wrong answer. Realisation concept.25 mark for each wrong answer. Cash book is a form of . Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0.

Weighted average. If bank balance as per cashbook differs from that appearing in the current account statement. Ledger.(b) (c) (d) 3. Cash book before any adjustments. Fair value. Book value. Purchases account. Market value.700 in the erection of the machinery and the wages paid for it amounting to Rs. then the balance considered for finalizing the accounts is of (a) (b) (c) (d) Adjusted cash book. LIFO. Difference account. Net realisable value. Pass book. 400 should be debited to (a) (b) (c) (d) Material account. Suspense account. Machinery account. “Inventories should be out of godown in the sequence in which they arrive” is based on (a) (b) (c) (b) 7. Not taken to final accounts in case of difference in the balance. Trading account. 5. The value of an asset after deducting depreciation from the historical cost is known as (a) (b) (c) (d) 8. All of the above. Expenses incurred to retain the title of a building is a (a) 256 . Material costing Rs. Revenue expenditure. HIFO. Wages account. Journal. 4. Difference of totals of both debit and credit side of the trial balance is transferred to (a) (b) (c) (d) 6. FIFO. Miscellaneous account.

(a) (b) (c) (d) 10.2006. Matching concept.2006. Deferred revenue expenditure. A minimum quantity of stock always held as precaution against out of stock situation is called __________ (a) (b) (c) Zero stock.5.(b) (c) (d) 9. 29. PART II 11. Debit side of that ledger account. 257 . Risk stock. None of the above. The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to __________ (a) (b) (c) (d) Materiality concept.5. If total of all debits of a ledger account is more than the total of all credits of the same account.2. 27.2006. then the balancing figure is placed at the __________ (a) (b) (c) (d) 12.2006. Conservatism concept. Profit and loss account Profit and loss appropriation account Balance sheet Carriage inwards is debited to A bill has been drawn on 26. End of that ledger account as a footnote.5. Trading account. 28. Base stock. Credit side of that ledger account. None of the above. 13. Capital expenditure. The due date of the bill will be (a) (b) (c) (d) 30.5.2006 payable after 90 days. Periodicity concept.

M/s Surendran & Co. Fluctuating capital account is credited with __________ (a) (b) (c) (d) 16. Here the payee will be (a) (b) (c) (d) M/s Bhaskaran & Co. Both consignor and consignee. M/s Bhaskaran & Co. M/s Patel & Co. 17. Memorandum joint venture account is prepared _________ (a) (b) (c) (d) 18. Premium for goodwill. If the incoming partner brings any additional amount in cash other than his capital contributions then it is termed as ________ (a) (b) (c) (d) Capital.000 on M/s Patel & Co. All of the above. on 1. or bearer. 6. None of the above.2006 payable to M/s Surendran & Co. Salaries or remuneration of the partners. None of the above. All of the above. When separate set of joint venture books is prepared. Profits of the year. bad debts is a loss of _________ (a) (b) (c) (d) Consignee. Consignor. Consignee. drew a three months’ bill of Rs. Reserves. 19. 15. or bearer. The party who sends the goods for sale on fixed commission basis is __________ (a) 258 . Interest on capital.(d) 14.1. Neither of the two. Profits. When each co-venturer keeps records of their own joint venturer transactions. In case of del-credere commission provided by consignor to consignee. When each co-venturer keeps records of all the the joint venture transactions himself.

Discounting of bill by the drawer is done with________ Under this method. Drawee. Sale of goods on sale or return basis Credit sales. 2. The balance due was paid by M/s Suneja & Jadeja & Co.5. the annual charge for depreciation decreases from year to year.400. 50. Consignor. Former spends Rs. The invoice price of the goods was Rs. (a) (b) (c) (d) PART III 21. Sinking Fund Method. 259 .000 on freight for sending the delivery and later spends Rs. the value of asset can never be completely extinguished. The above transaction is in the nature of (a) (b) (c) (d) Consignment. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high. so that the burden and benefits of later years are shared by the earlier years. the burden of depreciation gets lesser and lesser. Drawer. 60.(b) (c) (d) 20. Drawee. M/s Suneja & Jadeja & Co sold 90% of goods at invoice price and earned a commission of Rs. repairs are negligible. M/s Mittal & Sen & Co. Also. sends goods costing Rs. Annuity Method. for sale at invoice price. Creditor.000. Remaining goods were taken back by M/s Mittal & Sen & Co.000 to M/s Suneja & Jadeja & Co.1. under this method. 22. This method of depreciation is (a) (b) (c) (d) Straight Line Method.500 for receiving the delivery. Written Down Value Method. Notary public. Joint venture. Bank. In the due course he made some credit sales also out of which some amount were proved to be bad and was borne by him only. and as the repairs increase. through a demand draft.

80. 3 as application money.12. A company issued 1.000. will be (a) (b) (c) (d) 50. 25. 27. 260 . issued equity shares of 50. 10.50.000: Rs.000 at a premium of 10%.00.000 10% Debentures of Rs. 5. Rs. Rs.55.000.100 each at 10% discount.000 shares.00.2.2.000 9% convertible debentures of Rs. 4.45. It is decided to form a partnership with a total capital of Rs.1.00.000 shares were subscribed by the public by paying Rs. Rs.2.000.000 equity shares of Rs. 40. Rs. Rs. Rs.PART IV 23. Their capital contribution will be (a) (b) (c) (d) 24.2 and 5.50. Harsh Ltd. Preference shares amounting to Rs.000.000. 26.000: Rs. Rs. Rs.000.1.57.00.00.000. Rs.000: Rs.000. Three partners Ajay.00.00. All the shares and debentures were subscribed and allotted by crediting 10% Debentures account with (a) (b) (c) (d) Rs.20.1.000: Rs.500.000: Rs.000 shares. 6.000.00.1.00.00.000 shares of Rs.00. issued 4.000: Rs. every year. 10.000.00.00.00.1.000.000: Rs.00. Aditya Ltd. The amount to be transferred to capital redemption reserve account will be (a) (b) (c) (d) Rs.2. the amount of interest expenditure debited to profit and loss account for the year ended 31st March 2006 will be (a) Rs.3.000.10 each at a premium of Rs.000 are redeemed at a premium of 5% by issue of shares amounting to Rs. agreed to contribute proportionate capital.3. Interest is payable on September 30 and March 31.2.100 each at a premium of 10%. Assuming that the interest runs from the date of issue. Rs. 10 each for subscription. Number of shares allotted to public by Aditya Ltd.3. 30.00. 12. Vijay and Sanjay who will share profits and losses in the ratio of 5:3:2. On 1st June 2005.000: Rs.000 shares. 40.000.50.000 shares.

The amount to be transferred to capital reserve account will be (a) (b) (c) (d) Rs.800.00.800 shares were re-issued to Radhe for Rs.000.58. Rs.000. Rs. No further calls were made to her. 1. She and Me respectively. Rs. 30.000. Bittu Ltd. 29.10 each to public. issued 10.1. 3.2. Rs. (iii) Call in arrears Rs.000 shares of Rs.000. They took Joint Life Policy of Rs.000 and (iv) Proposed dividend 20%. will be (a) (b) (c) (d) Rs.200.(b) (c) (d) 28. Her call in arrears was (a) (b) (c) (d) Rs.000. Rs. 5. 3.000. Out of these.3. The amount of dividend payable by Great Ltd.60.000 Rs.000.60.2 per share.2. He.1.50. Kittu failed to pay the money of Rs. Rs. 261 .50. 31.36. (ii) Call-in advance Rs.1. 10 each of Krishna were forfeited by crediting Rs.000 and Rs.400.000 to share forfeiture account.1. Followings are the information related to Great Ltd. 10.57. 9 per share.3. Rs.00.00.18.800.000. The share of C in the policy will be (a) (b) (c) (d) Rs.: (i) Equity share capital called up Rs.000 shares of Rs. Rs. Applications were received for 12.000.59.2. Shares were allotted on pro-rata basis to the public and excess money was kept to be used in allotment and further calls.000 shares were forfeited after due notice.000.3 per share and her 1. Rs.000.000 shares by paying Rs.000. 15.000. Rs.000.000.90.30. 3. Rs. Rs. Rs.200.1. Rs. 50.000 for He.600. She and Me are partners in a firm sharing profits and losses in the ratio of 5:3:2.2. Rs.

000 have been returned and taken into stock at cost Rs. The new profit sharing ratio will be (a) (b) (c) (d) 3:2:1. 47:37. 34.000.9.000 15% Rs.60.32. A trader has credited certain items of sales on approval aggregating Rs. 36.500: Rs.4. 80. 5:4. then new profit sharing ratio will be (a) (b) (c) (d) 4:3.16. Rs. Nothing is to be debited to their account.000 though the record of return was omitted in the accounts.9.88. 2:2:1.6. Sumit retires and if Amit and Rohit shares profits of Sumit in 4:3.12.500. Rs. 68.000 to Sales Account.00. Find the goodwill of the firm using capitalization method from the following information: Total capital employed in the firm Reasonable rate of return Profits for the year (a) (b) (c) (d) Rs. then the amount of goodwill debited respectively to Vineet and Vivek’s capital account will be (a) (b) (c) (d) Rs. Rohit and Sumit are partners sharing profits and losses in the ratio of 5:4:3. 1:1:1.4. Vineet and Vivek are partners in a firm sharing profits or losses in 3:2:1.00. They admitted Ashana for 1/3 share in the firm. If new profit sharing ratio is 2:1. Rs.3. Cannot be calculated. Of these. In respect of another parcel of Rs. Vijay retires and Rs. 12. Amit. Rs.000) the period of approval did 262 . 5:3. 12.000 35. goods of the value of Rs.000 was debited to goodwill account of the firm.000: Rs.000.8.000.6.000 (cost being Rs.000.000: Rs. Nil. Rachna and Sapna are partners sharing profits equally. 11.00.00. Rs.000. 18. 33. Vijay.

39.500.850. On the same day.000.7. Rs. 1.not expire on the closing date. Ram in a joint venture with Shyam purchased goods costing Rs. Both the bills were discounted with the bank for Rs.000 on freight.1.3. Rs.000 to Saurabh on account of Bill accepted by him for credit purchases. First bill was met on its due date.10. While expenses incurred by the consignee on behalf of the consignment are Rs. Expenses incurred by the consignor on sending the goods to the consignee is Rs. The amount to be debited to bad debts account of Saurabh will be (a) (b) (c) (d) Rs. 40. The amount to be excluded 263 .200 as selling expenses.000 for insurance. Rs. Sharing equal profits of the venture.000 on Disha for 3 months for mutual accommodation. Rs.23.000 on Nisha for 4 months.000. 5.750.000. 10.18. Disha will send (a) (b) (c) (d) Rs.850 and Rs.000 for Rs.000. Gaurav has to pay Rs. Shyam took the delivery and paid Rs. 12. Rs. Rs. On 1st January 2006 Nisha draws a bill for Rs.000 and sends to Shyam for sale incurring Rs.425.22.800 on octroi. Cost of goods lying with customers should be (a) (b) (c) (d) 37. amount to be paid by Shyam to Ram will be (a) (b) (c) (d) Rs. 20.500 on packing the goods. He sold the goods costing Rs.500 on freight and Rs.2.500.2.000. 25. 54.3. On the maturity date of Nisha’s acceptance. Rs.25.1.24.000. Rs.250.700 respectively. Rs. 6. Gaurav was unable to pay the bill and was declared insolvent and his estate realized only 30 paisa in a rupee. Rs.1. None of the above. Disha draws a bill for Rs. Due to financial crisis.000.500 as carriage. None of the above. 38.600 as godown charges and Rs.000.2. Rs. 4. Rs. 50% of the receipt was sent to the other party. 6.5. Rs.000 and kept the remaining goods at cost price.

000.375. 150.80.500 (Cr.000.600.1.12. 1.000.).000 and closing stock is Rs.000. Some of the goods were returned by the consignee costing Rs.1.875.350 (Cr.50.1. The return inward book was undercast by Rs.000. Before rectification. Rs. The amount to be credited to consignment account for goods returned will be (a) (b) (c) (d) Rs. Carriage Rs. Rs. The gross profit will be (a) (b) (c) (d) Rs. Rs. Rs.1.00.000.00. 80.000.000.11.while calculating consignment stock will be (a) (b) (c) (d) 41.000 for taking the delivery. Rs.500.25.Sales during the year is Rs. Rs.800 Goods costing Rs.1.1.2.13.2.000. will give correct trial balance.100.).10.200.000. Rs. 42.51.).000 are consigned by Manjari & Co.000.150 (Dr. 1. Rs. 43. 1. Consignee spends Rs. Goods purchased during the year is Rs.20. 150 (Dr.2.11. 264 . Following errors have been rectified at the end of the year: (i) (ii) (iii) The above errors if rectified.600.53. Rs. Expenses of the consignor in this respect was Rs. 6. 5.) Rs. The return outward book was overcast by Rs. A payment of Rs. to Anjali & Co. for Rs.000 and Selling expenses Rs. Rs.500 on account of salaries has been posted twice in the salaries account although entered correctly in the cashbook. balance of suspense account was (a) (b) (c) (d) Rs.55. Rs. Rs. Rs.000. Opening stock of the year is Rs.

900 respectively.250 respectively. Air conditioner and furniture Rs. 3.000.000. Cash balances Rs.25 per piece. Rs. 2. 5 lacs units each year 3 lacs units each year 1.000.000. 45. Travelling expenses Rs.900 respectively.00. 65.250 and Rs.000.1. do packaging and labelling and sell to their customers.11. Rs.000.4.35 per piece and selling price is Rs. 2.000.80. 25. 16.600 and Rs. 95.000 pieces of toilet soaps in hand. These are yet not packed and labelled. Rent and office expenses Rs. 4.150. 4.000.000. Annual depreciation for 1-3 year. 0. Rs.333.50.50. Rs. Bank overdraft Rs.000.00.250 respectively. 200. The balance as per the cash book will be (a) Rs. At the year-end they had 1. 3.10. 14. M/s Delhi Stationers purchase goods from the manufacturers.600 and Rs.3. Fees received Rs.000.2. 600 paid into account had not been cleared. Rs. 12.000. Depreciable amount of the machinery is Rs. The historical cost and selling price of the closing stock will be (a) (b) (c) (d) 46. Rs. 4.000. 150 and Rs.1. 16. 3.3.55. Rs.000 as cash at bank. Rs. 1. Fixed Deposits Rs. 175 respectively had not been presented for payments.00. 1. but the pass book made up to the same date showed that cheques of Rs. The total of trial balance will be (a) (b) (c) (d) Rs. Computer Rs. Rs.000. Given below are the ledger balances of a management consultancy firm: Capital Rs.000. purchase price of which is Rs.8. Rs.2.00. The packaging cost per unit is Re.44.95. using production units method will be 47.40.00. The cashbook showed an overdraft of Rs. 265 .250 and Rs.000. Salaries Rs.00.00.00.3.000.83.000.25 per piece. and the cheque of Rs. Rs. 3. 1. 15.5 lacs units each year. The machine is expected to produce 30 lakhs units in its 10 year life and expected distribution of production units is as follows: 1-3 year 4-6 year 7-10 year (a) (b) (c) (d) Rs.

000 Rs. Rs.20.1. 1. Goods costing Rs.15.000.000. 52. Rs. 1. The amount of annual depreciation will be (a) (b) (c) (d) Rs.80.000 only. 20.000 49.35.20. 1.2006 is Rs. 50.2006.000 and out of which stock of Rs. Lease is to be depreciated by the annuity method charging 5% interest. Rs.000. None of the above. If cost of physical stock on 31.02.2.201. The amount of closing stock is (a) (b) (c) (d) Rs.000 is held as consignee.3.1 over 4 years charging 5% interest is Re. Hypothecation of stock has been done by the bank at 80% of the original closing stock value.000 Rs. A lease is purchased on 1st January. 1.1. 2.00. 1. Rs.5.60. 1.000.000. The amount of manager’s commission is 266 .400. Annuity of Re. Bank has allowed the customer to overdrew 80% of the hypothecated value of the stock. Net profit before commission has been Rs. 2.000 Rs.(b) (c) (d) 48. Bank overdraft as per trial balance is Rs.3.000.000 were damaged beyond repair and were expected to realize Rs. 0.000 Rs.1.25.00.00.000.475.1.925.18.50. 2. 18% investment of Rs. Rs. 15.60.000 and interest received on investment Rs. Nil 51. 25.000 have been given in the trial balance for the period ended on 31. Rs.2. The amount of interest outstanding in the final accounts will be (a) (b) (c) (d) Rs.000.000 Rs.2006 will be (a) (b) (c) (d) Rs.3. Manager’s commission is 20% of net profit before charging such commission. 28.3.28. 1.60.000. 1.282012. 2005 for 4 years at a cost of Rs. Rs. Rs. The value of own stock on 31.40.175.

4. first and second floor is used for office purpose and third floor is used for residential purposes. Applications were received for 12.1.4.40.8.000.00.44 on allotment.000.00.00.80.000.3. Rs.000.1.22.50..(a) (b) (c) (d) 53.1. 60.00.000.000 debentures.7. The depreciation amount of building to be shown in the business books will be (a) (b) (c) (d) Rs.25. issued 10. Rs. Rs. 2006. stock on 7. Rs.1.80.000.000.40.1.2006 will be (a) (b) (c) (d) Rs.50.00.000.000.00. Rs.4. Rs.80. Total amount of discount/loss on issue of debenture will be (a) (b) (c) (d) Rs. ground floor is used as a store house for trading goods.100 each at a discount of 6%. Out of four floors of a building.2. Closing stock on 31. Rs. 80.000. Debentures were allotted on 9th June. Kena Ltd.000. Total depreciation of a building amounts to Rs.100 each at a discount of 10%payable in full on application by 31st March.000. redeemable at a premium of 5% after 3 years payable as Rs.2.4.40. 40.50 on application and Rs. 80.000.000. Rs.20.50.000. purchases Rs.000. Ravi Ltd.2006.1.1. issued 1.1. Sales Rs.3.24.00. Closing stock was not taken on 31. Following transactions had taken place during the period from 1.2006 to 7. 55. Rs. 267 .000.000.000.000. 9% debentures of Rs.50. Rs.40. Rs.00. 56. 20.15. 2006. Rs.000.30.2006 but only on 7.4. Rs. 54.3.000. Rs.20.000. The amount of excess money refunded on the same date will be (a) (b) (c) (d) Rs.000 12% Debentures of Rs. Rs.000 and the rate of gross profit on sales was 20%.000.2006 was Rs. Rs.2006.

58.000 shares of Rs. The company decided to redeem these preference shares at par.000. 1.000. 10% Redeemable Preference Shares of Rs.000 shares of Rs.000.000 respectively.10. Promoter’s account by Rs.000. 12. The amount to be credited to First Call Account at the time of entry for forfeiture will be (a) (b) (c) (d) Rs.000 and Rs. Credited to rebate account by Rs.3.3 per share from Rahul.00. rendered in the formation of the company. fully paid up.2 per share and Final Call money of Rs.57.1.3. 1.00.000.100 each.000.00. 10. After due notice 1. 10 each at a premium of Rs. Rs. 2.00.500.2. Formation expenses account by Rs.000.000.000. Legal services account by Rs. Nil.000. Ankush Ltd.00.10.10.000 accepted by Rajesh was endorsed by Ritesh to Dinesh on account of final settlement of Rs. Rs. 500. The amount to be transferred to capital redemption reserve account will be (a) (b) (c) (d) Rs.2 per share as fully paid up. The benefit of Rs. had issued 10. A company on non-receipt of First Call money of Rs. For this. 8. Not shown in the books of Ritesh at all. Rs. Nil. 60.000.100 each were issued to a promoter of the company for their legal services.1.500.500. 268 . by issue of sufficient number of equity shares of Rs.00.10 each were forfeited from Rahul. Credited to discount received account by Rs.1. 59. company credited Share Capital Account and debited (a) (b) (c) (d) Goodwill account by Rs. debited Call-in-Arrears account by Rs.00. Bill of Rs. Rs.500 earned by Ritesh was: (a) (b) (c) (d) Credited to discount allowed account by Rs.

(iii) PART I 61. Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. A minor can be admitted as a partner provided the partnership deed is signed by the guardian of the minor on behalf of and in the best interest of such minor.25 mark for each wrong answer. Actual Delivery.25 mark for each wrong answer.25 mark for each wrong answer. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. All of the above. Symbolic Delivery. Is not disqualified from contracting by any law to which he is subject. Constructive Delivery. A minor cannot be admitted as a partner unless all the partners agree to it. They should be owned or possessed by the seller. Which of the following is correct : (a) (b) (c) (d) 62.SECTION – B : MERCANTILE LAWS (40 MARKS) (i) (ii) Questions 61 to 79 have only one correct answer and carry + 1 mark each for correct answer and – 0. The action of goods being physically delivered to the buyer is known as: (a) (b) (c) (d) . A minor can be admitted to the benefits of partnership. Necessary condition for existing goods is (a) (b) (c) (d) 64. They should be in existence at the time of the contract of sale. Both of the above. 1872 every person is competent to contract provided he: (a) (b) (c) (d) Is of the age of majority according to the law to which he is subject. All of the above. Is of sound mind. 269 63. None of the above. A minor can enter into a contract of partnership provided it is a ‘necessity’ and not a ‘luxury’. As per Section 11 of The Indian Contract Act.

All of the above. Which of the following are the characteristics of a contingent contract: (a) (b) (c) (d) 68. By holding-out. 66. The performance of a contingent contract depends upon the happening or nonhappening of a certain event in future. The wife cannot avoid the contract. (a) (b) (c) (d) The wife can avoid the contract. How is the contract of sale affected? (a) (b) (c) (d) The agreement is void. Consideration may move from promisee or any other person. Cannot pass a goods title to a bonafide purchaser. Can pass a goods title to a bonafide purchaser.65. present or future. turned out that the area was 7 hectares only. By estoppel. In case of a hire – purchase the hirer (a) (b) (c) (d) 67. Agency by ostensible authority may happen in the following ways: (a) (b) (c) (d) 69. She does so under his threat. Which one of the following is a legal requirement regarding consideration: (a) (b) (c) 270 . By a legal presumption. A tells his wife that he would commit suicide. All of the above. All of the above. The agreement is illegal. All of the above. The husband can enforce the contract. Both (b) & (c). if she did not transfer her personal assets to him. At the time of sale both the parties believed to be in good faith that the area of the land sold was 10 hectares. The agreement is impossible. Consideration should move at the desire of the promise. Consideration may be past. Can choose whether to pass or not to pass the goods title to a bonafide purchaser. 70. A sold some land to B. The event must be collateral to the main contract. The event must be uncertain. It however.

Following conditions are implied in a contract of sale of goods unless the circumstances of the contract show a different intention: (a) (b) (c) (d) Condition as to title. There should be at least two members and maximum number of members should not exceed fifty. made in writing and signed by the person to be charged therewith. (a) (b) (c) (d) 73. A promise made without consideration is valid if it is a promise. or by his agent generally or specially authorized in that behalf. 75. to pay wholly or in part a debt. An agreement to sell a religious office. Exceptions to the statement “No consideration no contract” are the following: (a) (b) No consideration is required to create an agency as also in the case of completed gifts. There should be at least two members and maximum number of members should not exceed twenty.(d) All of the above. Misrepresentation is innocent whereas fraud is deliberate or willful. A promise made without any consideration is valid if it is a promise to compensate wholly or in part a person who has already voluntarily done something for the promisor or something which the promisor was legally compellable to do. The distinction between fraud and misrepresentation are the following: (a) 271 . (c) (d) 72. An agreement with the objective of procuring a public post. Sale by description. There should be at least two members and maximum number of members should not exceed ten. Sale by sample. which is barred by the Law of Limitation. An agreement to share the salary of a public officer. All of the above. There should be at least seven members and maximum number of members should not exceed fifty. All of the above. 71. In case of a firm carrying on the business other than banking Which of the following agreements are void: (a) (b) (c) (d) 74. All of the above.

All of the above. The essential elements of a partnership at will are: (a) (b) (c) (d) PART II 80. Both of the above. There is no provision in the partnership agreement for its determination. All of the above. Delivery which is effected without any change in the custody or actual possession of the thing is known as: (a) (b) (c) (d) Actual Delivery. Lawful Agreement. None of the above. All of the above. True test of partnership is ______________. (a) (b) (c) (d) Sharing of profits Sharing of profits and losses Mutual agency Existence of an agreement to share profits of the business 272 . None of the above. No period has been fixed by the partners for its duration. That the partner to be expelled is given an opportunity of being heard.(b) (c) (d) 76. 79. The test of good faith as required under Section 33(1) includes the following: (a) (b) (c) (d) 78. That the expulsion must be in the interest of the partnership. Constructive Delivery. In misrepresentation there can be no suit for damages whereas in fraud there can be a suit for damages. Free Consent. 77. The following are the essential elements which need to co-exist in order to make a valid contract: (a) (b) (c) (d) Lawful Consideration. In misrepresentation the person making the suggestion believes it to be true while in case of a fraud he does not believe it to be true. Symbolic Delivery. That the partner to be expelled is served with a notice.

Profits of a partnership firm must be distributed among the partners as per the partnership deed while the profits of a company _________________. _____________ does not exist. (a) (b) (c) (d) Must be distributed to its shareholders May or may not be distributed to its shareholders May or may not be distributed to its board of directors. (a) (b) (c) (d) Coercion Undue Influence Fraud Misrepresentation Liability for special damages Liability for exemplary damages Liability for nominal damages Liability for disciplinary damages 82. his assertion amounts to _____________. (a) (b) (c) (d) 83. The communication of an acceptance is complete as against the acceptor. though he believes it to be true.81. 273 . shareholders and other stakeholders Are not distributable at all the case of Garner v. Where a person asserts something which is not true. (a) (b) (c) (d) Remission Recission Novation Alteration 85. Total substitution of new contract in place of the old contract takes place in case of _________________. _____________. (a) (b) (c) (d) When it is put in course of transmission to him so as to be out of reach of the acceptor When it comes to the knowledge of the proposer When both the proposer and the acceptor declare the acceptance When the acceptor accepts his acceptance in a court of law 84. The principle evolved in _______________________. Murray (1904) is 86.

It is ____________. Deficiencies in the capital of the insolvent partner are distributed among the solvent partners in the ratio of their capital Partners have a fiduciary relationship with each other Partners liability is unlimited Partners can make supernatural profits. collateral to such contract does or does not happen is _________________.if B’s house is destroyed by fire. (a) (b) (c) (d) B A Congruence of A & B Either party cannot avoid the contract Death of the principal Insanity of the principal Insolvency of the principal Death or Insanity or Insolvency of the principal 88.5. (a) (b) (c) (d) A contingent contract A wagering contract Illegal Void A wagering contract A contingent contract A wagering contract plus a contingent contract Neither a contingent contract nor a wagering contract 90. (a) (b) 1 2 274 .000/. (a) (b) (c) (d) 89. provided proper disclosures are made in this regard A intending to deceive B falsely represents that 750 tons of sugar is produced per annum at the factory of A and hereby induces B to buy the factory.00. The contract is avoidable at the option of_______________. A contracts to pay B Rs. 1930 is subject to _________ exceptions. A contract to do or not to do something if some event. The rule stated under Section 26 of The Sale of Goods Act. (a) (b) (c) (d) 91. An agency coupled with interest does not come to an end in case of____________.(a) (b) (c) (d) 87.

(a) (b) 275 . Quasi – contracts arise _______________.Registration of a partnership firm ___________. 1930. Non . 3 4 An eye for an eye and a tooth for a tooth Never dare to quarrel with a good seller No one can give what he has not got Let the buyer beware. (a) (b) (c) (d) 96. he may do so only a good gesture Where obligations are created without a contract Where obligations are created under a contract 97. (a) (b) (c) (d) 95. A person who finds goods belonging to another and takes them into his custody ______________. Rules regarding delivery of goods are dealt in the __________ of The Sale of Goods Act. Right of lien is to ____________. Sections 18-24 Sections 33-32 Retain possession Regain possession Remove possession Recharge possession Is a Criminal offence Renders the partnership illegal Is compulsory to activate the partnership Is not compulsory but desirable 94. (a) (b) (c) (d) Sections 33-39 Sections 20-24. (a) (b) (c) (d) Becomes the owner of those goods thereafter Is subject to the same responsibility as a bailee Is allowed to sell them and retain the money realized from such sale Has no obligation to return those goods. The latin maxim “Nemo dat quod non habet” means ________________. (a) (b) (c) (d) 93.(c) (d) 92.

The credit period expired and D did not get the price of his supplies. Out of natural causes Out of man-made causes Novation Recission Alteration Novation. but later on informed D that he is actually a former partner of the firm. 276 . C is liable for the price to D. H contracted with NIC Corporation for the erection of a number of houses. H by mistake deducted a particular sum twice over. D. The corporation affixed its seal to the contract. C had also issued public notice in the year of his retirement from the partnership firm. The contract is not binding. None of the above. C is not liable for the price to D. a trader supplied 500 refrigerators to the firm on credit. which correctly represented its intention. whether C remained silent or not.(c) (d) 98. Recission and alteration Discharge by mutual agreement may involve ______________. In light of the above circumstances answer which of the following is correct: (a) (b) (c) (d) C is liable for the price to D. There is no contract at all. A & B are partners in a partnership firm. A introduced C. 100. The contract can be avoided by H. as his partner to D. a former partner. (a) (b) (c) (d) The contract is now binding. In calculating his price for the houses. C remained silent at that moment. D filed a suit against A & C for the recovery of price. since there is no consensus ad idem. (a) (b) (c) (d) PART III 99. irrespective of the fact.

25 mark for each wrong answer. price equals marginal cost. Normative economics is not concerned with value judgment. continue to operate as long as it covers its variable cost. In the short run if a perfectly competitive firm finds itself operating at a loss. marginal revenue equals marginal cost. a reduction in the price of substitutes. it will: 103. raise the price of its product. 102. an increase in the price of complements.SECTION – C : GENERAL ECONOMICS (50 MARKS) (i) (ii) (iii) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0.25 mark for each wrong answer. A mixed economy has a certain level of government intervention in the economy along with private sector ownership of the economy. reduce the size of its plant to lower fixed costs. A market is a process that reconciles consumer decision. shut down.25 mark for each wrong answer. (iv) PART I 101. An increase in the demand can result from: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) a decline in market price.25 mark for each wrong answer. A competitive firm maximizes profit at the output level where: 104. Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0. Questions 117 to 132 are Fill in the blanks type and carry + 1 mark for each correct answer and -0. (b) and (c). production decisions and labour decisions. the slope of the firm’s profit function is equal to zero. all of the above. an increase in income. Which of the following is correct? 277 .

price does not at least cover average total cost. Which of the following is incorrect? .105. price is greater than long run average cost. an income elasticity of demand less than 1. The central problem in economics is that of allocating scarce resources in such 278 106. constant. an own price elasticity of demand less than 1. price does not equal marginal cost. decreasing returns to scale. If a firm’s average variable cost curve is rising. economies of scale are being reaped. all of the above. Table 1 Output 0 1 2 3 4 5 The above data is an example of: (a) (b) (c) (d) (a) constant returns to scale. A necessity is defined as a good having: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) a positive income elasticity of demand. globalization. its marginal cost curve must be: 108. You are given the following data: Total Costs 0 15 30 45 60 75 109. above the average variable cost curve. a negative income elasticity of demand. above the total cost curve. increasing returns to scale. In the long run any firm will eventually leave the industry if: 107.

The Second plan was a very ambitious plan as seeds of industrialization were sowed. Which among the following is incorrect? (b) (c) (d) 112. Reserve Bank of India. India has never been able to achieve its targeted rate of growth. Find the odd one out: 279 . central bank. all of the above are correct. biggest cooperative bank. Removal of poverty and the attainment of self reliance were two basic objectives of the fifth plan. all of the above. 110. An important theme in economics is that market systems are better than command (socialistic) economies. India adopted planning as her way of life because she wanted to quicken industrialization and economic development with optimum utilization of resources and reduction of inequalities. Microeconomics best describes the study of the behaviour of individual agents. biggest commercial bank. no shortages exist.a manner that society’s unlimited needs are satisfied as well as possible. When a market is in equilibrium: (a) (b) (c) (d) (a) 111. quantity demanded equals quantity supplied. (b) (c) (d) In mixed economy. State Bank of India. Reserve Bank of India is the country’s: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) 113. the government and the private sector interact in solving the basic economic questions. banking all of the above. power. transport. a price is established that clears the market. In infrastructure of an economy we include: 114.

25% per annum during the decade ------------.22 % per annum during the decade ---------------------. presuming that the growth rate of population is 2 per cent per annum. 44%. 50%. What is the contribution of agriculture to National income in India? PART II 117. private ownership and public ownership over means of production co-exist. 119. Indian economy is mixed economy because: 116. 115. per capita income would increase at an annual average rate of----------------. 280 . 22%. Suppose India’s GNP increased at an annual average rate of 6.3%. agriculture and industry have both simultaneously developed in India. Bank of India.(c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Bank of Baroda. (a) 3. agriculture and industry have both developed in the public sector. 34%.6% during the Tenth plan. (a) (b) (c) (d) 1941-51 1961-71 1971-81 1981-91 120. any of the above. India’s population recorded the maximum growth rate of 2. In a -------------------budget revenue equals expenditure. (a) (b) (c) (d) (a) (b) (c) (d) balanced deficit surplus long term 1941-51 1961-71 1971-81 1981-91 118. Indian population registered a growth of 1.

5 income method 124. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) 2. 60% 35% 45% 20% 5. (a) (b) (c) (d) 10% 8% 3.(b) (c) (d) (a) (b) (c) (d) 4. Small scale sector contributes nearly _______ of the manufacturing exports in India.2% 123. 2%. 125. 126. Product method of calculating national income is also known as -----------------------. 10 million hectares. 5. one third one half two third three fourth 121. The industrial production has grown at an annual average rate of ----------.area is rain fed in India.98 million hectares.18 million hectares 2. India’s share in the world total services export in 2004 was --------------%.2 3. 122.58 million hectares.9 8. 281 .during the planning period.2 1. After imposition of ceilings on the landholding in India.6%. the total surplus area distributed has been of the order of -----------------. 6.5% 6. About -----------------.6%.

(b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) value added method expenditure method distribution method depreciation. A sick industrial unit is one --------------------------------------------. external sector reforms in India. land reforms in India. which is unable to make profits more than 10 percent of its capital employed. which is unable to perform its normal functions and activities of production of goods and services at a reasonable profit on a sustained basis.7% 11. Bharat Petro Organisation Business Process Outsourcing Big Portfolio Outsourcing Business Partners Organisation 16. indirect taxes. banking reforms in India. 282 . At present direct taxes are around ---------.% of GNP. NDP is GDP minus _____________. BPO stands for -----------------------------.4% 127. India accommodates ---------------. 132. Abolition of intermediaries and tenancy reforms are both parts of ----------------------------. 128. subsidies NNP 10 15 12 5 industrial reforms in India. which borrows money from bank for its fixed assets. 130.percent of the world’s population. where most of the employees are sick. 129. 131.

Production possibilities curve 28 27 25 22 18 13 A B C D E G F H Grape juice (litres) 7 0 0 1 2 3 4 Wine (litres) 5 6 7 Figure 1 133. Point H is desirable but is not attainable. 5 litres of grape juice. increasing opportunity cost of more wine production and decreasing opportunity cost of more grape juice production. Point D represents a more efficient allocation of resources than points A and F. the maximum amount of grape juice that can be produced simultaneously is 28 litres.(c) (d) 15. Point A is desirable but is inefficient. 1 litre of wine. 134. The opportunity cost of increasing wine production from D to E is: (a) (b) (c) (d) (a) (b) (c) (d) 0 litres of grape juice.8% PART III Questions 133 to 135 are based on Figure 1 which shows production possibilities curve (PPC) for grape juice and wine. 0. decreasing opportunity cost of more wine production and decreasing cost of more grape juice production.2 litres of wine. which of the following is true? 135. The PPC in the diagram reflects: (a) (b) (c) 283 . If wine production equals 7 litres. Assuming that the PPC does not shift.1% 25. increasing opportunity cost of more wine production and constant opportunity cost of more grape juice production.

a brilliant new Ph.(d) increasing opportunity cost of more wine production and increasing cost of more grape juice production.3 Demand (tonnes per annum) 1000 900 800 700 600 500 400 300 Supply (tonnes per annum) 400 500 600 700 800 900 1000 1100 284 . has turned down many job offers because she hopes eventually to teach at one of the top ten universities in her field. The type of unemployment Jacqueline is experiencing is (a) (b) (c) (d) (a) (b) (c) (d) frictional. John (now age 54) lost his job as a shipbuilder during the recession of 1991. cyclical. Read the following paragraph and answer questions 136 and 137. John is Jacqueline’s father. The type of unemployment John is experiencing is PART IV 138.D in Economics.) 1 2 3 4 5 6 7 8 (a) (b) Rs. seasonal. structural.2 Rs. 137. Both of them are unemployed. 136. seasonal. Jacqueline. frictional. In the table below what will be equilibrium market price? Table 2 Price (Rs. His plant never reopened and he has very specialized skills that are no longer in demand. structural. cyclical.

At a labor input of 4. 2 4 285 140. 90.(c) (d) Rs. output is: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) 25. Output per worker is maximized at a labour input of: . 45.5 Table 3 Labor Input 0 2 4 6 8 10 12 90 120 140 14 10 Output 0 Average Product --Marginal Product --25 Read Table 3 and answer questions 139-143 139. 30. output per worker is: 141. the marginal product of labor is: 142. 15. 20. 20. At a labor input of 6. 22. At a labor input of 2. 10.4 Rs.5. 120. 50. 75.

250 Rs.(c) (d) (a) (b) (c) (d) 6 8. What is the value of fixed cost incurred by CC? (a) (b) (c) (d) Rs. The firm’s output is at a short run maximum at a labour input of : Table 4 provides cost and price information for a firm called Comfy Cushions (CC). Read Table 4 and answer questions 144-150 Table 4 Production (Q) Price per unit (P) 250 240 230 220 210 200 190 180 170 160 Total cost (TC) 500 730 870 950 1010 1090 1230 1470 1850 2410 Average total cost (ATC) Marginal cost (MC) Total revenue (TR) Marginal Revenue per unit (MR) 0 1 2 3 4 5 6 7 8 9 144. can not be determined. The firm produces and sells cushions using a fixed amount of capital equipment but can change the level of inputs such as labour and materials. 286 . 6 10 12 2 143. 730 Rs.500.

What is the average total cost when 5 units are produced? (a) (b) (c) (d) Rs. 100. 6 units 4 units. What is the marginal cost when production increases from 3 to 4 units? 148. 146. what price should be charged? 150. Rs. 210 Rs. 730. Rs. Rs. 100 Loss of Rs 60 Profit of Rs. 140 80 60 240 7 units. 190 Rs. 218. 8 units. Rs. Calculate CC’s maximum profit or minimum loss. what level of production should CC choose? 149. At the profit maximizing level. 90 Loss of Rs.210. 200 Rs.1090. To maximize its profit or minimize its loss. 220 Loss of Rs. 140 120. What is the marginal revenue (per unit) when production increases from 7 units to 8 units? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 160.145. 90 147. 287 .

25 mark for each wrong answer. (iii) PART I 151. implies q : p = s : r. If p : q = r : s. A continuous variable. then the process is called 153. A variable. A discrete variable. Questions 171 to 200 are numerical based questions. 152. Can be less than one. An attribute. Has no limits. Dividendo. Alternendo. The gender of a baby is and example of 154. which have answers as numerical value and carry + 1 mark each for correct answer and – 0. If q : p is the sub duplicate ratio of q–x2 : p–x2 then x2 is (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) p+q pq pq p−q pq p+q None of these. Can be more than one. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. The coefficient of correlation 288 .SECTION – D : QUANTITATIVE APTITUDE(50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0. Invertendo.25 mark for each wrong answer.25 mark for each wrong answer. Componendo.

The mean of binomial distribution is 158. m m2 m 1/ m B has 22 elements then A B is 60 124 80 None of these. Scatter diagram can measure correlation only when the variables are having a linear relationship. 289 156. B has 32 elements and A 160. Scatter diagram fails to measure the extent of relationship between the variables. If two events A and B are dependent.(d) Varies between ± 1. P(AB)/P(A). Time reversal test is satisfied when 157. P01×P10 = 0 P01×P10 = 1 P01×P10 <1 P01×P10 >1 (np)2 np np None of these. If A has 70 elements.e.. the conditional probability of B given A i. Which of the following statements is not false? . Standard deviation of poisson distribution is 159. P(A)/P(B). P(B/A) is calculated as (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) P(AB)/P(B). P(A)/P(AB). 155.

The null set is given by __________. (a) 1 x3 –2x +c 3 x x3 1 + 2x + + c 3 x x3 1 − 2x − + c 3 x None of these.ex is _______ . The value of the integral will be__________for 1 x− x 2 dx.(c) (d) Scatter diagram can measure correlation only when the variables are having a non–linear relationship. The data are known to be ________ if the data. None of these. Quartiles are values dividing a given set of observations into __________equal parts. as being already collected. The derivative of log x. φ 163. { φ} 0 {0} Two Four Six Ten 164. PART II 161. ex + e x (log x) x ex 1 − log x x (b) (c) (d) 162. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) ex(1+log x) None of these. 290 . are used by a different person or agency. 165.

The slope of the equation x–y+5=0 is _________.P with common ratio as 2 and first term being 5 is________. If two variables x and y are independent then the correlation coefficient between x and y is ______.(a) (b) (c) (d) Primary Secondary Specialized Subsidiary 166. PART III 291 . The correlation between height and intelligence is ________. 169. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Positive Negative Zero One 1 –1 5 –5 Zero Positive Negative None of these 160 32 800 64 168. (a) (b) (c) (d) Telephone interview method Personal interview method Mailed questionnaire method Observation method 167. The sixth term of a G. The amount of non responses is likely to be maximum in ________ method of collecting data. 170.

(a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 46. What is the annual rate of interest compounded annually doubles an investment in 2 years.171. log 8 + log 9 is expressed as 175.42135 % None of these .4142135. The gradient of the curve y=4x2–2x at x=1 is (a) (b) (c) (d) (a) (b) (c) (d) 4 6 8 None of these. Find the f o g for the functions f (x) =x2. log 72 log 27 log 8/9 None of these. x2 (x+1) x2 x+1 (x+1)2 172.04125 % 14. Given that 2 = 1. Determine the value of lim (a) (b) (c) (d) 2 10 5 8 10 x − 2 x x 292 . The value of 8C4 + 5C4 is 176. 29 24 30 27 x →0 174. g (x) = x+1 173.142135 41.

293. 6 6. 240... 366.. 4 –4. Find the sum of progression 8. Division of Rs. –4 2.. Evaluate −3 ( x 3 + x) dx (a) (b) (c) 0 3 –3 293 . Determine the value of x for the equation x2 – 8x + 16 = 0 180.. 3 181.33..177.000 Rs. 440 200 : 500 : 400 400 : 300 : 400 None of these. 10 terms.000 None of these. 2 179. How much money should be invested to earn a monthly interest of Rs. (a) (b) (c) (d) (a) (b) (c) (d) Rs. 120.12 .000 Rs.67.. 200.15... In how many difference ways 3 letters can be formed using the letters of the words SPECIAL? (a) (b) (c) (d) (a) (b) (c) (d) 5040 6 840 450 4. 1800 at 9% per annum simple interest.. (a) (b) (c) (d) 40 45 –45 42 178. 1100 into 3 parts in the ratio of 4:5:6 is 182..

...(d) 1 183. The sum of progression (a+b). 7 (a) (b) (c) (d) 12 19 7 14 9 16 11 18 184.. 120 362880 720 40320 n [2a+(n–1)b] 2 n [2a+(3–n)b] 2 n [2a+(3–n)] 2 n [2a+ (n–1)] 2 185. What is the value of 294 .. A firm plans purchase hens (x) for its canteen. The mean of binomial distribution is 4 and standard deviation 3 . The denominator of a fraction exceeds the numerator by 7 and if the 2 is added to the 4 denominator then the fraction becomes ... Compute the value of 8! 186. This can be shown by (a) (b) (c) (d) (a) (b) (c) (d) x < 20 x = 20 x > 20 None of these.n term is (a) (b) (c) (d) 187. Find the fraction. a. There cannot be more than 20 hens. (a–b).

42. 5400 Rs.33 6. The mean salary for a group of 20 female workers is Rs. 5000 per month and that for a group of 30 male workers is Rs.3 and P(B) = 0. the real salary increase is by (a) (b) (c) (d) (a) (b) (c) (d) 10% More than 10% 20% Less than 10% 0.44 –6.41.39. 5700 192. 5500 Rs. find P(A∪B).12 0.7 0. (a) (b) (c) 40.50. Find median weight. 6000 per month.4. If with a rise of 10% in prices the salaries are increased by 20%.5 41 41. 190. 5600 Rs. What is combined mean salary? (a) (b) (c) (d) Rs. If A and B are mutually exclusive events and P(A) = 0. 189. Two variables x and y are related by 10x+ 9y+8=0 and x =5.46. then y is (a) (b) (c) (d) 6.44 191.33 –6. The weight of 8 students expressed in kg. are 40.35.5 295 .45.p? (a) (b) (c) (d) 1/3 1/4 1/5 3/4 188.3 None of these.

(Class interval) 44 – 48 49 – 53 54 – 58 Total (a) (b) (c) (d) 4 5 46 44 – 48 No. The probability that the number of the drawn ball will be multiple of 5 or 7 is (a) (b) (c) (d) 1/2 1/3 1/4 None of these.50 8. of students (Frequency) 4 5 7 16 Find width of class interval for the second class interval. Refer following table: Frequency distribution of weights of 16 students Weight in kg.00 8. Find median of y.(d) 42 193. What is the probability of getting two kings? (a) (b) (c) (d) 7/52 1/221 3/221 None of these. If the relationship between x and y is given by 4x–6y=13 and if the median of x is 16. One ball is drawn at random. A card is drawn from a pack of playing cards and then another card is drawn without the first being replaced. 195. 296 . (a) (b) (c) (d) 7. 194. 196. A bag contains 30 balls numbered from 1 to 30.50 None of these.

Find Q1 for the following observations.15.2.25 200.2 0.197. 199. Find P(A∪B).8 0. (a) (b) (c) (d) 4/5 11/20 3/5 None of these.18.19.16. If u=(x3+1)5 and y=(x3+5x+7) then (a) (b) (c) (d) 10x ( x 2 + 1) 4 3x 2 + 5 10 ( x 2 + 1) 4 3x 2 + 5 5x(x2+1)4 None of these.04 297 . If the coefficient of correlation between two variables is – 0.13.4 0. then the coefficient of determination is (a) (b) (c) (d) 0.20.25 15 15. du is dy 198.22 (a) (b) (c) (d) 14 14. 14. P(B) = ¼ and P(A∩B) = 1/5. A and B are two events such that P(A) = 1/2 .

Matching . which have answers as numerical values and carry + 1mark each for correct answer and – 0. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) (i) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0. Materiality.25 mark for each wrong answer. Questions 23 to 60 are numerical based questions. Maximum Marks : 200 (iii) (iv) PART I 1.25 mark for each wrong answer. 298 . Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. Going concern. Questions 11 to 20 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0.BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT-8/2006 Time : 4 hours The test is divided into four sections. It is generally assumed that the business will not liquidate in the near foreseeable future because of (a) (b) (c) (d) Periodicity.25 mark for each wrong answer.25 mark for each wrong answer. Please follow the instructions given in each section carefully and answer the questions.

None of the three. Correct totaling of the Balance sheet. None of the above 3. Acceptance. Trial balance to agree. Which of the following is correct? (a) (b) (c) (d) Capital is equal to assets plus liabilities. Cash purchase and cash sale transactions. Assets is equal to liabilities minus capital. Double column cash book records (a) (b) (c) (d) 4.2. Bills payable account. Capital is equal to assets minus liabilities. Registration. Correct totaling of the trial balance. Liabilities is equal to capital plus assets. Intangible assets. That account is: (a) (b) (c) (d) 6. Natural resources. All of the following have debit balance except one. A bill of exchange requires (a) (b) (c) (d) 299 . Debtors accounts. None of the above. Only cash transactions. Errors of commission do not permit: (a) (b) (c) (d) 5. All transactions. Noting. Wages account. Goodwill. The term depletion is used for (a) (b) (c) (d) 7. Fixed assets. Cash and bank transactions.

Capital The trail balance of Meghna shows the opening stock of Rs. Revenue expenditure. Added to closing stock in the balance sheet. Rs.8. Expenses. a promissory note cannot be made payable to the: (a) (b) (c) (d) Bank. Sales Purchases.5.000. 10. Purchase returns appearing in the trial balance are deducted from ____________ (a) (b) (c) 300 . it will be___________ (a) (b) (c) (d) Debited to the trading account. Credited to the trading account. Outstanding salary account is: (a) (b) (c) (d) PART II 11. Deducted from closing stock in the balance sheet. Capital. None of the above. 13. Drawings are deducted from ________ (a) (b) (c) (d) 12. None of the above Real account Personal account Nominal account None of the above 9. Sales returns. Capital expenditure. According to the provisions of Reserve Bank of India Act. Sales. Endorser Bearer. Deferred revenue expenditure.000 spent to remove a worn out part and replace it with a new one is (a) (b) (c) (d) 10.

New profit sharing ratio. (a) (b) (c) (d) 18. _______ will generally show a debit balance. Old profit sharing ratio. Bill receivable. Purchases book. (a) (b) (c) (d) 17. Unless given otherwise. (a) (b) (c) (d) 301 . Drawings. Noted bill of exchange. Transactions. 19. Journal proper. Gaining ratio.(d) 14. New profit sharing ratio. A bill of exchange is called a________by one who is liable to pay it on the due date. Purchase of a fixed assets on credit basis is recorded in _____________ Accounting means recording of _________________. Both (a) and (b) Neither (a) nor (b). Bank Loan. None of the above. Bad debts recovered. (a) (b) (c) (d) 16. Salary payable. 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) (b) (c) (d) Sacrificing ratio. Purchases. Bill payable. Equal ratio Old profit sharing ratio. (a) (b) (c) (d) 15. None of the above. Events. Cash book. None of the above.

If the bank balance as per cash book on 31st March.1. balance as per pass book will be (a) (b) (c) (d) 24.00.1.1.20.90. paid up capital PART III 21. Priya purchases raw materials . Receipt of order.employs workers. the market value of this asset comes down to Rs. Mr. Present value concept.000. Rs.000 due to (a) (b) (c) (d) Realization concept. 90.000 and not at Rs. 5. Replacement concept. (a) (b) (c) (d) Issued capital.000 Rs.000 302 .000.000 Rs. 2006. Called up capital. Production of goods. If a machinery is purchased for Rs. Delivery of goods. If cost of goods sold is Rs.00. On receipt of order. issued capital. called up capital.000.000 None of the above. the gross profit will be (a) (b) Rs. The cheque was collected on 4th April.1. 2006 for a sum of Rs. In this case. 1.00. Cost concept. called up capital. PART IV 23.00.00. Shyam deposited a cheque on 28th March. produces the goods and delivers them to Smita. the asset would be recorded in the books at Rs. sales is Rs.000.40.45.10.000. 1.1.000. In case a year after. 1.000 even if its market value at that time happens to be Rs.00. it will ordinarily continue to be shown at Rs 1. 2006 is Rs.10.000. The amount of calls in arrear is deducted from_____________ to arrive at________.20. Paid up capital.25. Purchase of raw material.000. sale will be presumed to have been made at the time of (a) (b) (c) (d) 22. Smita places an order to Priya for supply of certain goods yet to be manufactured. closing stock is Rs.000 Rs. Called up capital. 90.

till 31st March. On 4th January. Goods unsold were taken over by Y for Rs. To rectify this mistake they decided to pass an adjustment entry between the partners. The goods were purchased by X and Y amounting Rs. as on 31st March.5.1.500 Rs. Somesh account need to be debited by (a) (b) (c) Rs. On 1st January.000.000. 8. The amount of stock with customers to be shown as closing stock in the balance sheet of ABC Ltd. Loss of Rs. 2006. 10. 2006 will be (a) (b) (c) (d) Rs.000 Nil 28. On 26th March.2.000 303 . 2.000 respectively. ABC Ltd.1. The profit or loss on joint venture is (a) (b) (c) (d) Profit of Rs.000.000 None of the three. 1. Goods were sold by X and Y amounting Rs.000. X enters into a joint venture with Y.000 Rs. Their capitals are Rs.39.2.000 and Rs. The amount of proceeds sent to Sohan will be (a) (b) (c) (d) Rs.000 26. 12. Therefore.000. Y incurred the expenses of Rs.2.000 respectively.1.000 and Rs. 2006.000.10. Mohan draws upon Sohan a bill of exchange at three months of Rs.40.(c) (d) 25. Somesh and Ramesh are equal partners. 27.1.000 were sent to Annu Ltd.970 Rs. No confirmation has been received from Annu Ltd.000 for mutual accommodation. treating as actual sales.000. 25.80. 2006 goods costing Rs.20.985 Rs.40.22.000 Nil Rs. 2.000 and received cash of Rs. Profit of Rs. 2006 Mohan discounts the bill @ 6% per annum and sends half of the proceeds to Sohan. Loss of Rs. The accounts of the year were closed before providing interest @ 5% per annum as per partnership agreement. sells goods to its approved customers on sale or return basis at a profit of 20% on sales.000 Rs.000 and Rs.2. Rs.

10. on 10th April.1. The partnership deals provides for interest on capital @ 6% per annum. Profit of Rs.1.000 Rs. The new profit sharing ratio between A.000. No profit no loss. The value of goodwill is (a) (b) (c) (d) Rs.21.10.B and C are partners in the ratio of 3:2:1.000 and Rs.1.1500.000.300. 2006 will be 304 . None of the above. 1.000. Profit of Rs.000.000 The value of inventory as per books on 31st March. 2006 are Rs. A firm earns profit of Rs.000. D is admitted in the firm for 1/6th share in profits.1. None of the above. 32.10. 2006: Cost of goods sold Cost of goods purchased Purchase returns (a) (b) (c) (d) Rs. The following transactions took place between 1st April.000. C would retain his original share. 31.C and D will be (a) (b) (c) (d) 12:8:5:5 8:12:5:5 5:5:12:8 5:5:8:12.00.10.10. Trading profits of the firm for the year ended 31st March.20.000 and Rs.000.19. 30.000 Nil. The cost of stock as per physical verification of Bharat Ltd.00.(d) 29.1. 2006 was Rs.00. Rs. 1. Menu and Renu are partners sharing profits and losses in the ratio of 2:3 with capitals of Rs.11. The normal rate of return in a similar type of business is 10%.20.1500. Rs. 1.00. The value of total assets (excluding goodwill) and total outside liabilities are Rs. 2006 to 10th April. Rs. The amount of profit or loss apportioned between Menu and Renu are (a) (b) (c) (d) Loss of Rs.000 Rs. A.000 Rs.1.B.000.000 respectively.11. 1. Rs.20.

who discounts it on 4th January.00.000 Rs. Rs. 305 .45.000 (After charging an abnormal loss of Rs. Nidhi started her business with capital of Rs. 2006 and on the same day draws a bill on Hari at three months for the amount. Hari accepts it and returns it to Ram.000 to Hari on 1st January. 2006. 40.000 Rs. The discounting charges are: (a) (b) (c) (d) Rs.14.12.1. Rs.64.000. 2006 with his bank at 12% per annum.47. Rs.500 None of the three. 2006.40.000 Nil 36.500 Rs. 2006 is (a) Rs.000.60.66.: Item No. Her capital on 31st December.45.3.50.15. 67.000) Rs.10.33. Ram sells goods for Rs.000 were appearing in the Profit and Loss A/c for the year ended 31st December.4. Sushila’s business disclosed the following profits for the last three years: 2003 2004 The value of goodwill on the basis of one year purchase of the average profit of last two years is: (a) (b) (c) (d) 35.2. 1 2 3 (a) (b) (c) (d) Rs. Rs.000 on 1st January. Nidhi withdrew Rs.000.5. Rs.000) Units 2 10 2 Cost per unit Realization value per unit 10 5 2 11 4 2 The value of inventory on item by item basis will be 34.000 and interest on capital Rs.000 during the year and profit earned during the year amounted to Rs. Rs.000 (including an abnormal gain of Rs. Interest on drawings Rs. The following data has been provided by Omega Ltd.5.37.

Rs. 15. equivalent to employee’s share to P. Debit Balance Rs.10. Rs.F.10. 5.F.000. To be deducted from capital. 43. deducted from salaries 16. Rs. This income tax should be (a) (b) (c) (d) To be added to capital. Rs.6.000. To be credited to Profit & Loss Account.000 None of the above.000 None of the above.000 38. 2006: Name of Account Provide for employer’s share of P.15.6. The amount at which salaries expense will be shown in the Profit and Loss A/c is (a) (b) (c) (d) 40.20. 45. Dinesh Garments purchased a machine for Rs.000 Rs. Following are the extracts from the Trial Balance of a firm as at 31st March.000 Rs. Rs.000 Rs.15.000 at the end of the year.000 Rs. Suresh’s Trial balance provides you the following information: Bad debts Provision for doubtful debts Suresh wants to make a provision of Rs. The amount debited to the Profit & Loss Account is: (a) (b) (c) (d) 39. 47.000.50. paid personal income tax for the proprietor amounting Rs.000 on its erection.45. To be debited to Trading Account. Rs.000. The accountant of M/s ABC & Bros.F.17. Salaries P.000 1.16.(b) (c) (d) 37.000 Credit Balance Rs.000 and spent Rs.000 Rs. 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.000. The amount of depreciation for each year on straight line basis is 306 .

Rs.000. A fire broke out on 30th March.000 None of the above.5 per share paid for Rs. The company forfeited his shares and afterwards sold them to Satbir. The goods are invoiced at 25% above cost. 1.000 Rs. Rs. share capital need to be credited by (a) (b) (c) (d) Rs. credited as Rs. issued fully paid up shares of Rs.000 42.3. Rs. 44.000. Rs. To record this transaction.(a) (b) (c) (d) 41. For recording this forfeiture. 5. upon which Rs. Rs.2. 4. 43 .400 None of the above.000 Rs.80.10/. Rs.500 Rs.3.20. 640. A Ltd. The amount to be transferred to capital reserve is: (a) (b) (c) (d) Rs. calls in arrear account will be credited by: (a) (b) (c) (d) Rs. issued at a discount of 10%.300 Rs.900.000. None of the above.00.600 was destroyed.5 per share had been called up but he had paid only Rs.000.1.each in consideration of acquiring assets worth Rs. was formed as a Public Limited Company with an authorized capital of Rs.3 per share. 10.6. 307 . The shares are issued at a premium of 20%.10 each in RPG Ltd.10 each. Rs.000.5.80.2 and second call of Rs. Rs.000.3.000 from M/s Rahim Bros.600 Rs. 5. Xeta Ltd.04. Mr.10 each. The insurance company admitted claim of 50% only. Rajiv was the holder of 200 shares of Rs.5 per share thereon.2. Xeta Ltd.76. The insurance claim will be: (a) (b) (c) (d) Rs. Company forfeited 1000 equity shares of Rs. for non-payment of first call of Rs.00. 600. 2006 in the godown of Mahesh stock of invoice value Rs.000 divided into shares of Rs. 800.

500 47.000 Rs.70.20. 2.000 during the year. Rs. This sale is included in Rs. The amount is: (a) (b) (c) (d) Revenue in nature.10. Liability in nature.50.000 during the year.000 (d) Rs.69.50.20.000 was spent by Mrs. The bank statement of Mukesh shows balance of: (a) Rs.500 (b) Rs. None of the above.2.000.22. 2006.2.2. However. 2005 Raghu invested capital of Rs. The amount of gross profit is: (a) (b) (c) (d) Rs.500 (c) Rs. 49.000 Rs. Rs. It was observed that one cheque amounting Rs.000.7.50.000. 46.50.000. The amount of interest on drawings deducted from capital is: (a) (b) (c) (d) Rs.000 costing Rs.500 were also charged by the bank during March but accounted in the book of Mukesh on April 4. he sold damaged goods for Rs.000.5. Salary has been paid for 11 months from April 2005 to February.40. 48. Rs.2. 1.90.000. Saroj for addition to machinery in order to increase the production capacity. 5.70.10.2.500 Rs.45. Interest on drawings is provided @ 10% per annum. His sales were Rs.000 Rs.1833. 308 .000.000 Rs. He withdrew Rs.20.000. Deferred revenue in nature.00.20.000 Rs. 15. The amount of outstanding salary shown in the balance sheet will be: (a) (b) (c) (d) Rs.000.000 deposited but not collected by bank till 31st March. The Bank Account of Mukesh was balanced on 31st March. It showed an overdraft of Rs. Bank charges of Rs.00. 2006. Capital in nature. Mr Prakash sells goods at 20% above cost. On 1st April. 2006 amounting Rs.30.1.

The total of the debit and credit side of Mr. The balance of the suspense account after the rectification of this error will be: (a) (b) (c) (d) Rs. 11. A.900. Goods costing Rs10. 53. Liabilities will increase by Rs.000.1. Mr.000. Rs. Assets will increase by Rs.00.000 sent out to consignee at Cost + 25%. Capital introduced by Mr.10. 5.00. making a down payment of Rs.2006 Rs.000. Capital as on 31.10. 9.10.500.500 instead of Rs. 2006 were Rs. it was found that the total of purchase returns book was carry forward as Rs. 3. 2. Rs.000.000 per month and the profit earned during the year was Rs. Rs. 20. A purchased a car for Rs.4.000.000. 52. On 4th April.94. None of the three. 2006. 51. C died on 30th June 2006 and profits for the accounting year ended on 31st December.000.94.00.00. Rs. 1. None of the above. The difference was transferred to suspense account. 2.400. How much share in profits for the period 1st January.000.00. Rajiv as on 31st March. 6.12. Rs. (a) (b) (c) (d) Rs.000.000. 309 .000. Rs.00. A withdrew Rs.000. Rs. 2006 were Rs.500.2006 was (a) (b) (c) (d) Rs. Rs.000. 3.000 and signing a bill payable of Rs.100.000 respectively.12. Nil. Invoice value of the goods will be (a) (b) (c) (d) Rs.000.000. 3. B and C are the partners sharing profits in the ratio 1:1:2.000 in the mid of the year.50. 4. 54. 4.000 and Rs.1. As a result of this transaction (a) (b) (c) Assets will increase by Rs. 5.000.2006 will be credited to C’s Account. further capital introduced during the year was Rs. 24.2006 to 30th June. 3.000.00. Rs. 50.10.46. 4. A on 1.20.3. 12.

Nil.000 . 2. 50.000.500.000. Rekha purchased a machinery for Rs. 2006.050. Rs. Both (a) and (b). 1.000 in cash in the month of March.000 towards a debt of Rs. Gauri paid Rs. 11.100. 10. Gauri’s account should be credited with (a) (b) (c) (d) 1.000 is supplied to Ram at an invoice price of 10% above cost and a trade discount of 5%. 59.500 for personal use and got salary of Rs.050. 10.10.200.000 per month withdrew goods worth Rs. She paid electricity and and salary amounting Rs. 3. Rs.450. 3. which was written off as bad debt in the previous year. 1.2006.000 and Rs. 53. 310 . An old furniture was purchased for Rs.4. an employee of salary Rs. it was repaired for Rs. The amount of expenses for the year ended 31st March. 1. The amount of sales is (a) (b) (c) (d) Rs. 56.000. Nil None of the three. 53. 9. 1.000 on 1. 57.10.2006. 10. Ramesh. 1. Telephone bill amounting Rs. Drawing account.100 Rs.000. Rs. Goods costing Rs. 2006 will be (a) (b) (c) (d) Rs. Rs.3. 10. 500 should be debited to (a) (b) (c) (d) Salaries account. Salaries paid in advance account.(d) 55.000 Rs. Rs. 200 was outstanding on 31. None of the above.200.000 respectively. 58.The repairs account should be debited by (a) (b) (c) (d) Rs. 100. 10. The excess payment of Rs. Goods account.

the landlord. This error will (a) (b) (c) (d) Affect the trial balance. 1.000 paid as rent to Krishna. 311 . Affect the suspense account.60. None of the three. was debited to Krishan’s personal account. Rs. Not affect the trial balance.

Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. Which of the following is not correct: (a) (b) 312 . Following conditions are implied in a contract of sale of goods unless the circumstances of the contract show a different intention:(a) (b) (c) (d) Condition as to wholesomeness. A promise to give money or money’s worth upon the determination or ascertainment of an uncertain future event.25 mark for each wrong answer.SECTION – B : MERCANTILE LAWS (40 MARKS) (i) (ii) Questions 61 to 79 have only one correct answer and carry + 1mark each for correct answer and – 0. Jus in personam means: (a) (b) (c) (d) 64. Partner of firm cannot enter into a contract with the partnership firm. None of the above. A wager means: (a) (b) (c) (d) 62. A promise to give money or money’s worth upon the determination or ascertainment of a certain future event. A promise to give money or money’s worth upon the happening of future event the outcome if which is pre determined. Condition as to quality or fitness. Both (a) and (b). A promise to give money or money’s worth upon the non-happening of certain future events the outcome if which is pre determined.25 mark for each wrong answer. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. A right against or in respect of a thing.25 mark for each wrong answer. Sale by description as well as by sample. All of the above. A right against or in respect of a person. (iii) PART I 61. A member of a company can enter into a contract with the company. 63.

Relations of partners to one another is dealt is governed by the following Section of The Indian Partnership Act. 68. Executory Contracts. formation or performance. Actual Delivery. Partner of a firm can enter into a contract with the partnership firm. Partly Executed or Partly Executory Contracts. 313 . Contracts classified on the basis of performance are of the following types: (a) (b) (c) (d) Executed Contracts. 1932 (a) (b) (c) (d) 1-8. Allows the person named therein to transfer the share mentioned therein by mere endorsement on the back of the certificate. A share certificate (a) (b) (c) (d) 69. 18-27. Bailee. Contracts may be classified on the basis of their validity. Constructive Delivery. All of the above. Allows the person named therein to transfer the share mentioned therein by mere endorsement on the back of the certificate and the delivery of the certificate. 9-17. Agent.(c) (d) 65. Symbolic Delivery. Delivery of goods in case of transit made by handing over documents of title to goods is (a) (b) (c) (d) 67. None of the above. All of the above. Allows the person named therein to transfer the share mentioned therein by mere delivery of the certificate. A person employed to do any act for another or to represent another in dealings with the third parties is: (a) (b) (c) (d) Principal. 66. 28-36. All of the above. Servant.

Recission must be communicated to the other party in the same manner as a proposal is communicated. Both (a) & (b). risk is borne by the buyer only when the property in the goods passes over to him. Both (a) and (b). 71. All of the above. Implied authority of the partner does not empower him to (a) (b) (c) (d) 72. Recission must be revoked in the same manner as a proposal is communicated. Submit a dispute relating to the business of the firm to arbitration. Communication of recission is optional. Mental Pressure. Both (a) & (b) The general rule is “ unless otherwise agreed. the parties may by special agreement stipulate that risk will pass sometime after or before the property has passed. but when the property therein is transferred to the buyer. Which of the following statement is / are correct? (a) (b) (c) (d) 314 . Where the delivery of the goods has been delayed through the fault of either the buyer or the seller. Coercion involves: (a) (b) (c) (d) Physical Force or Threat. A proposal may be revoked in the following ways: (a) (b) (c) (d) 73. Which of the following is correct? (a) (b) (c) (d) 74. None of the Above. By notice of revocation. However. By lapse of time. By death or insanity. All of the above. In ordinary circumstances. the goods remain at the seller’s risk until the property therein is transferred to the buyer. the goods are at the buyer’s risk whether delivery has been made or not”.70. Withdraw a suit or proceedings filed on behalf of the firm. the goods are at the risk of the party in fault as regards any loss which might not have occurred but for such fault. None of the above.

In accordance with a contract between the existing partners or with the consent of all the existing partners subject to the provisions of Section 30 of the Act. B thereupon buys the estate.75. Now (a) (b) (c) (d) B may avoid the contract. in a manner not warranted by the information of the person making it. (a) (b) (c) (d) A person may be admitted as a new partner:- 315 . by misleading another to his prejudice or to the prejudice of any one claiming under him. gains an advantage to the person committing it. All of the above. or any one claiming under him. After obtaining specific approval of the Registrar of Firms & Societies. a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement. The positive assertion. All of the above. By simply taking the consent of the new partner. 76. Dissolution by agreement is: (a) (b) (c) (d) 78. to this effect. Causing. Dissolution by the adjudication of all the partners or of all the partners but one as insolvent. The estate is subject to mortgage. though he believes it to be true. By intervention of the court. Dissolution by agreement. Misrepresentation means and includes: (a) (b) (c) (d) 79. Compulsory dissolution. which. All of the above. Dissolution by the business of the firm becoming unlawful. In accordance with a contract between the existing partners or with the consent of all the existing partners. A fraudulently informs B that A’s estate is free from incumbrance. B may insist upon its performance. Any breach of duty. of that which is not true. without an intention to deceive. B may get the mortgage debt redeemed. Dissolution of a firm may take place in the following manner: (a) (b) (c) (d) 77. however innocently. All of the above. Dissolution as a result of any agreement between all the partners.

A contract cannot confer any right on one who is not a party to the contract. The revocation is complete as against B when____________. In case of a contract of guarantee______________________. (a) (b) (c) (d) 81. The Doctrine of Privity of Contract states that________________________. (a) (b) (c) (d) A writes the telegram but the same has not been sent to B A dispatches the telegram B receives the telegram B responds to the telegram 1st October. 1872 1st July. (a) (b) (c) (d) The seller The buyer Both of the above General Insurance Company of India Executed contract Executory contract 85. (a) (b) (c) (d) 83. In case of a sale the risk of loss resulting from the insolvency of the buyer is borne by_______________. Agreement to sale is an_______________________. 1872 1st September. 1872 came into operation on and from_______________. 1872 There is only one contract There are two contracts There are three contracts There are actually only agreements and no contracts 82. if the contract benefits him A contract always confers right on one who is not a party to the contract A contract can confer rights on strangers A proposes by letter. A revokes his proposal by telegram. 1872 15th August. (a) (b) 316 . The Indian Contract Act.PART II 80. even though the very object of the contract may have been to benefit him A contract can confer right on one who is not a party to the contract. (a) (b) (c) (d) 84. to sell a house to B at a certain price.

The liabilities of a minor partnership________________. Both of the above None of the above Are remedies which provide the same result Are different remedies and they provide different results Are not the correct way to act against the party committing the breach Are the only correct way to act against the party committing the breach Remission Recission Novation Alteration when admitted to the benefits of the Suit for specific performance & suit for injunction_________________. (a) (b) (c) (d) 88. A person to whom money mistake__________________. (a) (b) (c) (d) Is confined to his share of the profits and property in the firm Is same as that of any other partner in the firm Is similar as that of any other partner in the firm Is unlimited Substituting a new contract for the old one Cancellation of the old contract Modifying or altering the terms of contract such that it has the effect of substituting a new contract for the old one Dispensing away the performance of the promise made by the other party 89.(c) (d) 86. Contracting parties may not remain same in______________. (a) (b) (c) (d) 87. (a) (b) (c) (d) 90. (a) Compulsory from the beginning (b) Not compulsory till first five years of beginning of the partnership (c) Not compulsory at all (d) Compulsory only if the Registrar of Firms. or anything delivered by Becomes the owner of such money or those goods 317 . gives an order in this regard 91. Recission means_________________________. (a) has been paid. Registration of a partnership firm is______________.

‘Buyer’ means a person who_______________________. (a) (b) (c) . the aggrieved party___________________. (a) (b) (c) (d) 93. Partner by holding out is also known as___________________________. (a) (b) (c) (d) 96. Must repay the money or return those goods Is allowed to sell the goods and retain the money realized from such sale Has no obligation to return the money. he may do so only a good gesture Actual Delivery Constructive Delivery Symbolic Delivery Physical Delivery Delivery by attornment is _______________________. In case of an agreement to sell. (a) (b) (c) (d) 97.(b) (c) (d) 92. The appropriation must be made by_______________________. Return of goods is possible in case of ________________________. (a) Can sue for price (b) Can sue for damages (c) Can sue the buyer for injunction (d) None of the above 94. (a) (b) (c) (d) Sale Bailment Exchange None of the above Buys goods Agrees to buy goods Has bought goods Buys or agrees to buy goods The seller with the assent of the buyer The buyer with the assent of the seller The buyer or the seller with or without the assent of the other Both (a) & (b) Active Partner Dormant Partner Partner by estoppel 318 95.

B thereafter did all that was the desire of A in order to save his life. Choose the most suitable statement for the purpose of finding out remedy for B.10. A is guilty of misbehaving with B. What is immediate answer? (a) (b) (c) (d) A can enforce the contract.for B’s flat.10.10. A has an anti-social nature. A has done fraud with B. But B was not ready to sell the flat at all. provided it is payable only out of profits @ 8. A says to B that “I shall kill you if you don’t agree to sell me your house for Rs. a price of Rs.10. (a) (b) (c) (d) @ 6% per annum.000/-”.(d) 98. provided it is payable only out of profits PART III 99. provided it is payable only out of profits At any rate.000/-”. 00. A had offered B. 00. 100. The contract is unenforceable. A had offered B. B thereafter did all that was the desire of A in order to save his life. A has applied coercion. A says to B that “I shall kill you if you don’t agree to sell me your house for Rs.5% per annum. But B was not ready to sell the flat at all. provided it is payable only out of profits @ 8% per annum.for B’s flat. 00. 00. Partner by stoppage Interest on capital subscribed by a partner may be provided for in the partnership deed is _________________. 319 . a price of Rs.000/. B can enforce the contract. (a) (b) (c) (d) A has applied coercion.000/.

25 mark for each wrong answer. An increase in supply accompanied by a decrease in demand. PART I 101. (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 102. The income elasticity of demand is the percentage change in quantity demanded of a good due to a change in the price of a substitute. except for Giffen goods.” If this entrepreneur is attempting to maximize profits or minimize losses. A decrease in supply without a change in demand. (iv) Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0. Which of the following situation does not lead to an increase in equilibrium price? 104. if the firm is covering its variable cost.25 mark for each wrong answer. Which of the following statements is correct? (a) In a two-good economy. Positive economics focuses on welfare of the people of a society. (iii) Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0. Microeconomics is the study of the behaviour of the economy as a whole. None of the above.25 mark for each wrong answer.25 mark for each wrong answer. but with the rent I have to pay. I can’t afford to shut down at this point of time. The price elasticity of demand is always negative. “I am making a loss. Which of the following is incorrect? 103. the production possibilities frontier reflects the maximum amount of one good that can be produced when a given amount of the other good is produced.SECTION – C : GENERAL ECONOMICS (50 MARKS) (i) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. A decrease in supply accompanied by an increase in demand. without a change in supply. The cross elasticity of demand for two substitutes is positive. 320 . The cross elasticity of demand for two complements is negative. An increase in demand. his behaviour in the short run is: (a) rational. (ii) Questions 117 to 132 are Fill in the blanks type and carry +1 mark for each correct answer and -0.

states that beyond some level of a variable input. shows labour force which is employed states that beyond some level of a variable input. A firm’s production function : 107. irrational. establishes the minimum level of output that can be produced using the available resources. assumes that there is technological improvement over time. the average product of that variable input begins to increase steadily. since fixed costs are eliminated if a firm shuts down. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) rational. irrational. downward sloping. Which of the following is correct? 321 . the marginal product of that variable begins to decrease steadily. shows the maximum output that can be produced with a given amount of inputs with available technology. perfectly elastic. An individual firm in a perfectly competitive market faces a demand curve which is: 106. Under perfect competition. since plant closing is necessary to eliminate losses. shows how much output and the level of input required for the firm to maximize profits. Total revenue is equal to price times the quantity sold. total revenue is equal to marginal revenue times the quantity sold. if the firm is covering its fixed costs.(b) (c) (d) 105. relatively inelastic. informs a firm whether or not to use a factor input. All of the above. upward sloping. The law of diminishing returns: 108. total revenue will rise at a decreasing rate. If marginal revenue is positive and falling.

Easy Assistance scheme. they charge a price higher than the marginal cost. Agriculture sector need not depend upon industrial sector for its growth. None of the above. Employment Assurance Scheme.109. Endless Assistance scheme. positive fixed costs. Which of the following statements is correct? 112. Countries which are industrially well-developed generally have higher per capita income than countries which are not. they restrict the output to keep the price higher than under perfect competition. increasing returns to scale. both (a) and (b) are incorrect. Employment Assessment scheme. Monopolies are allocatively inefficient because: 111. constant returns to scale. Total Costs 0 15 35 60 92 140 110. EAS stands for 322 . You are given the following data: Table 1 Output 0 1 2 3 4 5 The above data is an example of: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) decreasing returns to scale. India is a capital surplus economy. both (a) and (b) are correct.

5 323 .5 11. the bed-population ratio in India is -------------per thousand population. According to the latest available data. What percent of the sick units in India are big units? 116.113. 10 percent 2 percent 30 percent 98 percent. SLR is increased. (a) (b) (c) (d) 50 70 80 90 118.2 9. Which among the following is an indirect tax? PART II 117. At the time of Independence and a number of years thereafter cotton textiles. (a) (b) (c) 3. people do not borrow from non-banking institutions CMC BALCO VSNL None of the above. The effect of increase CRR will be reduced or nullified if: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Bank rate is reduced. securities are sold in the open market. Income tax Wealth tax Custom duty Gift tax 114. Privatization in India has taken place in all of the cases except 115. jute and tea accounted for more than __________% of our export earnings.

According to the latest NSSO (2004) data. According to the latest UNDP report.5 26%. 67 23 123. the actual growth rate was ___________% per annum during the Ninth Plan.2 6.among 177 countries. around _____________ million persons years were unemployed in 2001-02. 32%.4 5.3 119.5 7. (a) (b) (c) (d) 40. 2005 India’s relative global rating on this index is ------------.12 34. (a) (b) (c) (d) increased remained same decreased can’t say 121. The small scale sector in India employs nearly _______________ lakh people. (a) (b) (c) (d) 150 177 127 5 120. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) 9. 19%.72 12.85 122. The value added by the industrial sector in the GDP (2004) is __________.2% per annum in industrial production. 124. According to the Tenth Plan estimates. As compared to the targeted growth rate of 8.12 45. 324 .(d) 20. 12%. the percentage of people living below poverty line has _________ compared to the previous (1999) data.

The share of direct taxes in the gross tax revenue (Center and States combined) was __________% in 2005-06. Custom duties are levied on ______________________. (a) (b) (c) (d) 66 34 25 75 130. According to census 2001 the sex ratio (number of females per 1000 males) in India is _________________. 129. GDP at factor cost is equal to GDP at market price minus indirect taxes plus _________________. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) depreciation direct taxes foreign investments subsidies net foreign investment net foreign investment plus net domestic investment net domestic investment replacement expenditure incomes of the individual production of goods export and import of goods incomes of the corporate household sector only government sector only both household and government sectors neither household nor government sector 126. 128. 127. Net domestic expenditure is consumption expenditure plus ____________________.(c) (d) 100 283 125. Demand for final consumption arises in ____________________. (a) 933 325 .

The suggested remedy would only work if the demand for watching movies in cinema halls had a price elasticity of _____________________. The Tenth Plan aims to reduce poverty ratio to ____________% by 2007. one greater than one 12. S1 and D1 are the original demand and supply curves.3 18. Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change? 326 . S2 and S3 are possible new demand and supply curves. D3. ( a) (b) (c) (d) (a) (b) (c) (d) zero greater than zero but less than one. PART III Questions 133 to 137 are based on the demand and supply diagrams in Figure 1.3 19.3 132.(b) (c) (d) 131.3 14. D2. 941 927 930 If cinema halls are making losses they should lower the ticket fares.

The new equilibrium if there is rapid economic growth and the government also imposes a tax on mars bars is: (a) (b) (c) (d) Point 3. 134. Assume that the price of sugar falls and at the same time there is a technological advancement in the production of mars bars. 136. the initial equilibrium is at the intersection of S1 and D1. the initial equilibrium is at the intersection of S1 and D1. Point 9. The new equilibrium if there is a health scare about the effect mars bars may have is: (a) (b) (c) (d) Point 2. Point 6. Point 3. Point 2. In Figure 1(which represents the market for Mars Bars). the initial equilibrium is at the intersection of S1 and D1. If Figure 1 represents the market for Mars Bars. In Figure 1(which represents the market for Mars Bars). In Figure 1 (which represents the market for Mars Bars). 135. In Figure 1(which represents the market for Mars Bars). The new equilibrium will be: (a) (b) Point 2 Point 7 327 .133. Assuming that mars bars are an inferior good. Point 6. The new equilibrium if there is an increase in cocoa prices will be: (a) (b) (c) (d) Point 3 Point 9 Point 4 Point 2. the initial equilibrium is at the intersection of S1 and D1. the new equilibrium if there is a recession and wages of workers producing them fall is : (a) (b) (c) (d) Point 2 Point 7 Point 3 Point 6 137. the initial equilibrium is at the intersection of S1 and D1. Point 9.

0 2. the quantity of books demanded will decrease from 2 035 to 1 946.60 to Rs. car sales will fall from 352 to 335. the income elasticity of demand for cars is approximately (a) (b) (c) (d) –1.2 0.8 1. The book’s price elasticity of demand is approximately (a) (b) (c) (d) 0.2 A competitive firm sells as much as of its product as it chooses at a market price of Rs 200 per unit.5 139.67.(c) (d) Point 3 Point 6 PART IV 138. Table 2 Quantity 0 5 10 15 20 25 30 35 40 45 50 Variable cost 0 500 940 1400 1960 2700 3700 5040 6800 9060 11900 Fixed cost Total cost Average variable cost Average Marginal cost total cost - 328 . A book seller estimates that if she increases the price of a book from Rs.4 0.4 1. Its fixed cost is Rs 600 and its variable costs (in rupees) for different levels of production are shown in the following table. Concerned about the poor state of the economy. a car dealer estimates that if income decreases by 4 per cent. Consequently.01 0. Use Table 2 to answer questions 140144.

the firm’s short run response should be (a) (b) (c) (d) (a) (b) (c) (d) shut down produce 5 units produce 20 units continue to produce the same number of units as before the drop in price. 44 Rs. 170 Rs. To maximize profit.00. If the market price rises from Rs 200 to Rs 352. 8.000 and his sales are worth Rs 4.000 Rs 8000 Rs.00. 4. Suppose a shopkeeper buys inputs worth Rs 2.15 Rs.000 329 .1760 15 units 30 units 35 units 50 units 141. 20. the firm should produce 143. The input tax rate is 4% and output tax rate is 10%. 32. In the table marginal cost per unit that corresponds to 40 units of production is 142. When production is 40 units. the firm’s short run response should be 145. shut down produce 40 units produce 20 units continue to produce the same number of units as before the increase in price.0000 Rs.80 Rs.140. 144.352 Rs. the average total cost is (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Rs. What is Value added tax here after set off of input tax credit? (a) (b) (c) (d) Rs. If the market price drops from Rs 200 to Rs 112.000 in a month.170 Rs. 185 Rs.

9 18000 149.25. Table 3 Number of products 0 1 2 3 4 5 6 7 8 Total utility 0 3600 6800 9600 12000 14000 15600 16800 17600 Marginal utility - Read the following table and answer question number 149 -150.00. − 0.19.46 2 . the price elasticity of demand for blankets is (a) (b) (c) (d) 0. If the quantity of blankets demanded increases from 4600 to 5700 in response to a decrease in their price from Rs 220 to Rs 190.09.69 1.00. 148. 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: (a) (b) (c) (d) + 2.0 1.146. −2.66 147.5. − 2. −1. 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: (a) (b) (c) (d) − 0.09. + 2.71 + 0. What is marginal utility when consumption increases from 4 units to 5 units? 330 .

1500. What is marginal utility when consumption increases from 8 units to 9 units? 331 . 3000. 2000. 150.(a) (b) (c) (d) (a) (b) (c) (d) 3000. 1200. 400. 1500. 2000.

153. If x denotes height of a group of students expressed in cm. Would be shown in cm. Symmetrical. All of these.25 mark for each wrong answer. Would be free from any unit. Negatively skewed. If two events A and B are independent. None of these. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. the probability that they will both occur is given by (a) (b) (c) (d) (a) (b) (c) (d) P(A) + P(B) P(A) X P(B) P(A) – P(B) P(A)/P(B) Positively skewed. This method presents data with the help of a paragraph or a number of paragraphs. Questions 171 to 200 are numerical based questions. (a) (b) (c) (d) Tabular presentation. Diagrammatic representation. 332 . The normal curve is 154. (iii) PART I 151. then the correlation coefficient between height and weight (a) (b) (c) (d) Would be shown in kg. Would be shown in kg. and y denotes their weight expressed in kg. Textual presentation.SECTION – D : QUANTITATIVE APTITUDE(50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0. which has answers as numerical value and carry + 1 mark each for correct answer and – 0. .25 mark for each wrong answer. and cm.25 mark for each wrong answer. 152.

None of these. Secondary data. A variable. Value index. 159. Find the first derivative of y=loge x (a) 1 x e. 156. Data collected on minority from the census reports are 157. Quantity index. A continuous variable. The nationality of a person is an example of 158. Continuous data. An attribute. A discrete variable.155. The base of log613 into the common logarithmic base is (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) log6 10 log6 13 log10 6 log10 13 log10 13 log10 6 None of these . Primary data. Discrete data. The total sum of the values of a given year divided by the sum of the values of the base year is a (a) (b) (c) (d) Price index.log x 1 e x None of these. (b) (c) (d) 333 .

(a) (b) (c) (d) (a) (b) (c) (d) Box head Stub Caption Body Zero Positive Negative None of these 162. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Zero correlation Negative correlation Positive correlation Simple correlation Medium Smaller Larger None of these Quartiles Deciles Centiles None of these 334 164. The correlation between sale of cold drinks and day temperature is ________. PART II 161. Fisher’s ideal index is (a) (b) (c) (d) Arithmetic mean of Laspeyre’s and Paasche’s index. describing the columns and sub columns. Median of Laspeyre’s and Paasche’s index. The ______ the size of the sample more reliable is the result. __________ is the upper part of the table.160. 163. In case of a ________. _________ are the values dividing a given set of observations into ten equal parts. None of these. 165. Geometric mean of Laspeyre’s and Paasche’s index. . plotted points on a scatter diagram lie from lower left corner to upper right corner.

If one root of the equation x2+7x+p=0 be reciprocal of the other then the value of p is________... (a) (b) (c) (d) (a) (b) (c) (d) Equal to More than Less than None of these 0 0.. is 2... 1+3–5+7+9–11+13...4 167. Variance of a binomial distribution is always ______ its mean. (a) (b) (c) (d) 1 –1 7 –7 PART III 171.....166. A person borrowed Rs. 170...... The sum of the following is ________ ... 3n terms (a) (b) (c) (d) (a) (b) (c) (d) 2n2+3 5n2+2 3n2–4n 3n2 5 2 1 3 169. (a) (b) 5% 25% 335 ..... q will be ________..... 168. If in binomial distribution mean is 10 and S. 4000 and after 6 months the amount paid was Rs.8 0.2 0. 4050.D. find the rate of interest.. If nP3=60 then value of n is _________.

(c) (d) 2. The fourth proportional to 2/3. /2 173.. The solution set of equations 3x+4y=7 and 4x–y=3. 1 2. 3/7. The value of (a) (b) (c) (d) 4x–3/5 4x5/3 4x–5/3 None of these. 2/7 14/8 7/2 None of these. 1 –1. 1 –1. is 176. 4/9.. 1... Find the value of x if (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 15/2 9/10 3/4 None of these. is 336 .5% 20% 16 x −1 is 4x 2 / 3 172. 2 175. Evaluate 0 1+cos x dx (a) (b) (c) (d) 0 2 −1 2 2 4 9 3 :x: : 5 2 4 174.....

5760 to invest in fans (x) and sewing machines (y).4} {0} x →1 178. 663 363 336 None of these. Find g o f for the functions 182. The cost per unit of fans and sewing machine is Rs. Compute the value of lim x 2 + 3x + 2 x 3 + 2x 2 − x + 1 (a) (b) (c) (d) (a) (b) (c) (d) 5 9 7 2 f (x) = x .360 and Rs. This can be shown by (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 360x + 240y > 5760 360x + 240y < 5760 360x + 240y = 5760 None of these.4} and B={2.177.2. B can be written as φ {1. Find the value of 8! / 5! 179. g (x) = 2x2+1 2x2+1 2x+1 2x2+1) ( x ) x 181.4} then A 180. then y is (a) (b) 10 –10 337 . If A={1. Two variables x and y are related by 5x+2y+5=0 and x =5. A dealer has only Rs.240 respectively.3} {2.3.

22.18. Find Q1 for the following observations.9. The variables x and y are related by 5x+6y=70 and median of x is 8.10.5.8 184.75 6.(c) (d) (a) (b) (c) (d) 15 –15 12 14 16 None of these 183. of students (Frequency) 4 5 7 16 338 .16.15. What is the median of y? (a) (b) (c) (d) 4 4.25 75 25 79 89 186.5 185.20 (a) (b) (c) (d) (a) (b) (c) (d) 4. (Class interval) 44 – 48 49 – 53 54 – 58 Total No.12. If y=4+3x and mode of x is 25.14.18. what is the mode of y? 187.4. 7.5 5 5.75 5.6.25 5. Refer following table: Frequency distribution of weights of 16 students Weight in kg. What is the median for the following observations? 10.

Find Frequency density of the second class interval. The coefficient of correlation between two variables is 0. A card is drawn from a pack of playing cards and then another card is drawn without the first being replaced. The probability that the number of the drawn ball will be multiple of 3 or 7 is (a) (b) (c) (d) 7/15 13/30 1/2 None of these.5. One ball is drawn at random.5 0. What is the probability that the sum of the numbers obtained is more than 10 ? (a) (b) (c) (d) 1/18 1/9 1/12 None of these. 192. A bag contains 30 balls numbered from 1 to 30. then the coefficient of determination is (a) (b) (c) (d) 0.25 –0. A pair of dice is thrown.5 189.10 188. (a) (b) (c) (d) 0.90 1. If the relationship between x and y is given by 4x+5y=10 and the range of x is 15.5 0. 190. what would be the range of y? (a) (b) 10 11 339 . 191.80 0. What is the probability of getting two hearts? (a) (b) (c) (d) 1/17 1/4 2/17 None of these.00 1.

7 2. 10% 9% 18% None of these. e x dx 193. t=1 year 197. P=18000.5 2. In how many ways it is possible to make an unsuccessful attempt to open the lock ? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 1000 999 5040 None of these. Which term of the progression 1. The length of the perpendicular from the point (2. is 64 194. Evaluate the integral of (a) (b) (c) (d) ex(x2+1) +c ex(x+1) +c ex(2x+1) +c ex(x–1) +c 195.4 . 8…………………….2. 5) on the line 4x–3y+18=0 is 340 . 2. Find the effective rate of interest if I=Rs.1 196.1800.(c) (d) (a) (b) (c) (d) 12 13 7 5 6 9 x.2 2. A letter lock has three rings each marked with 10 different letters.

If x2ey + 4 log x = 0 then (a) (b) (c) (d) 199.198. dy . Evaluate lim (a) (b) (c) (d) log 3 log 2 log 4 log 2 log 9 log 2 log 3 log 4 9x − 3x 4x − 2x 341 . when y=10x8 dx 80x7 10x7 80x8 None of these. x →0 dy is dx 200. Find (a) (b) (c) (d) e y 2 x 2 + 4 + 8x x3 ey e y 2x 2 − 4 x3 ey − e y 2x 2 − 4 x3 ey None of these.

Periodicity. Questions 11 to 20 are the fill in the blank based questions having four alternate answers and carry +1 mark each for correct answer and – 0.BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT-9/2006 Time : 4 hours The test is divided into four sections. which have answers as numerical values and carry +1 mark each for correct answer and – 0. During the life time of an entity.25 mark for each wrong answer. 342 . Please follow the instructions given in each section carefully and answer the questions. Maximum Marks :200 (iii) (iv) PART I 1. Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry +1 mark each for correct answer and – 0. accountants prepare financial statements at arbitrary points of time as per (a) (b) (c) (d) Prudence.25 mark for each wrong answer.25 mark for each wrong answer. Questions 23 to 60 are numerical based questions.25 mark for each wrong answer. Matching. Consistency. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) (i) (ii) Questions 1 to 10 have only one correct answer and carry +1 mark each for correct answer and – 0.

Personal account. Real accounts relate to assets of the firm and not (a) (b) (c) (d) Machinery. On March 31. Assets. Debt. A promissory note does not require (a) (b) (c) (d) 8.000. Both (a) and (b). Neither (a) nor (b). Depreciation arises because of (a) (b) (c) (d) 7. account is a (a) (b) (c) (d) 6. Capital. This is (a) (b) (c) (d) 4. None of the three. Fall in the value of money. Real account. Discounting. None of the above Fall in the market value of the asset. An event. A transaction. Personal account. Vikas & Co.2. 8. A transaction as well as an event. None of the three. Profit leads to increase in (a) (b) (c) (d) 5. Receivables. Acceptance None of the above Sale returns. Which of the following accounts will have credit balance? (a) . 2006 Amit purchased a typewriter from Arvind for Rs. Neither a transaction nor an event. 343 3. Noting. Physical wear and tear of the asset.

None of the above. (a) (b) (c) (d) 12. (a) (b) (c) (d) 13. Credit balance in the cash book means ______. Trial balance. Both (a) and (b). 344 .000 was written in the purchases journal. Favourable balance as per pass book. (a) (b) (c) (d) 10. Debit balance. None of the above. Change in the method of depreciation is change in ________ . Sale of Rs.(b) (c) (d) 9. Outstanding wages. The total of the sales journal has not been posted to the sales account. Overdraft as per pass book. (a) (b) (c) (d) Bills receivable. 5. None of the above Which of the following errors is an error of omission? Prepaid salary has a PART II 11. Accounting policy. Carriage inwards. Negative balance. None of the above Credit balance. Accounting estimate. Wages paid to Shyam has been debited to his account. (a) (b) (c) (d) Bank reconciliation statement. None of the three. Cash book. Measurement discipline. The equality of debits and credits of the ________ does not mean that the individual accounts are also accurate.

Profit and loss account. Tangible asset. (a) (b) (c) (d) 345 . None of the three. Real account. Consignment account. 15. When money is withdrawn from the bank. Joint venture account is ________. Consignee’s account. Nominal account. Abnormal loss on consignment is credited to ________ (a) (b) (c) (d) 18. Debits. Intangible asset. the bank ________ the account of the customer. None of eth three. Manufacturing account. Personal account.14. (a) (b) (c) (d) 17. Sale of scrap of raw materials appearing in the trial balance are shown on the credit side of ______ (a) (b) (c) (d) Trading account. Goodwill is ______ (a) (b) (c) (d) 16. None of the three. Fictitious asset. Either (a) or (b). ________days of grace are allowed in case of time bills for calculating date of maturity. Current asset. None of the three. 2 4 3 5 19. Profit and loss account. (a) (b) (c) (d) Credits.

All of the above.000. Last call on 500 shares were not received and were forfeited after due notice.000.20. The above is the case of (a) (b) (c) (d) 22.25. PART III 21. Over subscription. Proportionate share of profit upto the date of death.00.2006 shows the Reserve balance of Rs. Rs.25.10. Customer’s account.1.000. On 1st June C died and on the same date assets were revalued.1. 12. having useful life of 15 years was depreciated on straight line basis. The firm’s balance sheet as on 31. fixed assets of Rs. The applications were received for 75. Excess money was refunded to them after adjustment for further calls.00. the same machine was revalued upward by Rs.000. All of the above A.000. The amount of depreciation for the year 2006 will be (a) (b) (c) (d) Rs. Huge Ltd. Sales account. 50.15 each payable as Rs.00.1. None of the above.000 shares. Joint Life policy of Rs. Rs. Pro-rata allotment.25 on application. Rs.3 lacs. Profit of the last year Rs.000. The cash discount allowed to a debtor should be credited to (a) (b) (c) (d) Discount account. issued 25.50. Forfeiture of shares. 346 .20.000.3.00. A machine purchased on 1st January 2003 at Rs.15. Rs. B and C are partners in the firm sharing profits and loss in 5:3:2 ratio. Share in Joint life policy.1.000 equity shares but the company issued to them only 25. On 1st January 2006. The executor of the deceased partner will get along with the capital of C (a) (b) (c) (d) Share in the Reserves account the firm.000 equity shares of Rs.100 each at a premium of Rs.000.000. PART IV 23.40 on allotment and balance in the first call.

000. 38.35.000 and Discount account Rs. which is 50% above cost. At the end of the accounting year.000 received by M/s Nandini was endorsed to M/s Chandini on account of full settlement of Rs.24.000 was having a net realisable value of Rs. Rs.000. A cheque of Rs.000 due from Anshul .000 in the market and material C costing Rs.37.500. 75.500. On invoice price he enjoyed 15% trade discount and Rs.50.000.000.500.6. The amount to be expensed is (a) (b) (c) (d) Rs. which had been written off as a bad debt in a previous year.9.000 and Discount account Rs. Chandini deposited the same into the bank on 4th October 2006.000 only. Rs.000 and cost of improvement in electrical wiring system is Rs. and had been posted to the personal account of Anshul.6. 50. 26.35.5.35. Rs.000 at an invoice price.3.500. 50. cost of extension of building is Rs. 27. 25. To Suspense A/c Rs.15.000.000. 36.25.000. 60.35. 5. whitewash expenses are Rs.63.500 only.13. Bank account Rs. the amount to be debited on 1st October 2006 will be (a) (b) (c) (d) Cash account Rs.35.000. 10.000 was having net realisable value of Rs. Rs. Rs.000.14.10. 35. 347 .000.6.35. Nil 28. Bank account Rs.15.00.000 was having net realisable value of Rs. The purchase price to be recorded in the books before cash discount will be (a) (b) (c) (d) Rs. Cash account Rs.000.500. If repair cost of a building is Rs.750 cash discount on cash payment of goods in lump sum at the time of purchase.12. material A costing Rs. Atul purchased goods costing Rs.000.500. The rectification entry will be (a) Anshul’S A/c Dr. while material B costing Rs. Rs. An amount of Rs. 50. Rs.750.500 on 1st October 2006. In the books of M/s Chandini. was unexpectedly recovered.000. The total amount of closing stock will be (a) (b) (c) (d) Rs. Rs. Rs. 25.

On scrutiny it was found that interest of Rs.000 and closing stock of raw material is Rs.000. Rs. 31. 9. 3.6.000.6. Mr.000.000 kg of oranges are consigned to a wholesaler.000 to cost to company account.000. 10.2.12. the cost being Rs.000 to cost of sales account.00.500.000. Rs. 925 of freight. The amount to be transferred is (a) (b) (c) (d) Rs.2.8 per kg.000. The cost per kg of orange will be (a) (b) (c) (d) Rs. B at an invoice price of Rs. The amount of commission is (a) (b) (c) (d) Rs. plus Rs. No rectification entry required.50.5. Opening stock of raw material of a manufacturing concern is Rs. It is concluded that a loss of 15% is unavoidable.6. 500 is to be (a) (b) (c) (d) Added to the cash book balance. Subtracted from the cash book balance. 348 .15. Anshul’s A/c Dr. Mr. Wages Rs.e. 30.50. 1.2.000.15. Rs.500 charged directly by the bank was not entered in the cash book.3. Purchase during the year is Rs. Rs. Rs. 8. The goods were to be sold at invoice price or above. in the bank reconciliation statement.18.10. Rs.3. There was difference in the bank column of cash book and pass book by Rs.1.000 to cost of goods manufactured account. Rs. The same was adjusted in the cashbook before reconciliation statement.00.000. Suspense A/c Dr.00.6.75. 50.1.41. 32. A consigned goods costing Rs.000.2. Factory overheads Rs. 3.10. Rs.000. Carriage Rs. 3. To Bad debts recovered A/c Rs. 15.000 to Mr. For this he gets 5% commission. Now. Rs. 10. Rs. this interest of Rs. Rs.93. Rs.00.75.000.(b) (c) (d) 29. Ignored while preparing bank reconciliation statement.000 and some at 10% above cost i.25. To Bad debts recovered A/c Rs. None of the above.000.75.000.500. B sold some of the goods at invoice price of Rs.000 to cost of goods sold account.500.75.

13. Cannot be determined. Ajay bought goods of the value of Rs 20.000 Rs. The amount of depreciation for the year ending 31.500 37.3. X of Kolkata sends out goods costing 100.80. Rs.000. The due date of the bill will be: (a) 8. Consignor’s expenses Rs 2000.12.1. Rs.14.000.66.000. Anuj paid Rs 1. profits being divided equally.2.3.13.667.000 to Y of Mumbai at cost + 25%.4.01. 3/5th of the goods were sold by consignee at 85000. 34.000. The amount to be remitted by Biitu to Anuj will be: (a) (b) (c) (d) Rs.00.16.33.00.000 and consigned them to Bittu to be sold by them on a joint venture.500. Bittu sold the goods for Rs 15. 36. Rs.2003 for Rs.4. Anuj bought goods of the value of Rs 10.500 Rs. The date of acceptance is 8.10. Anuj got it discounted at Rs 9. On 1.500 Rs. 349 .000 and consigned them to Bijay to be sold by them on a joint venture.000.12.12.083. Rs.3. Rs.500. A machine purchased on 1. Ajay draws a bill on Bijay for an amount equivalent to 80% of cost on consignment.2006 will be (a) (b) (c) (d) Rs.05.4.000.000 was depreciated on straight line basis over its useful life of 10 years.000. Commission 2% on sales + 20% of gross sales less all commission exceeds invoice value.000 for freight and insurance. The amount of bill will be: (a) (b) (c) (d) Rs. Rs. Amount of commission will be: (a) (b) (c) (d) Rs.06.05 X draw a bill on Y “for 30 days after sight”.83.000.000 Rs. it was found that machine is in a good condition and will be used in the production for another 10 years.333. 35. On 1.20. profits being divided equally. Anuj draws a bill on Bittu for Rs 10.2. Commission payable to Bittu Rs 500.2005. Rs.

Interest amount will be: (a) (b) (c) (d) Rs.000.1. Consignor’s expenses Rs.000 Rs. 10.600 Rs. Mr. Aakash got the bill discounted at 12%.1.(b) (c) (d) 38.06.26. Rs.300 Rs.100 each at a premium of 10%.410.5.650 39. 9.5. 40.1.000.05 X draw a bill on Y for Rs. He receives cash for sales Rs 15.420. He pays expenses amounting to Rs 1.500 42. Ansh provides biscuits from stock Rs 10.000. He also takes over goods to the value of Rs 2. 4/5th of the goods were sold at 20% above cost.6. Rs.000.000 to K. The profit on consignment will be: (a) (b) (c) (d) Rs.6.000 on 1.000) 41. The amount of discount will be: (a) (b) (c) (d) Rs. 11. R sends out goods costing Rs. The amount of loss on redemption of debentures to be written off every year is 350 .000. Mr. Vansh incurs further expenses on carriage Rs 1.000.06.00.32.2.000. which are redeemable after 10 years at a premium of 20%.000 Rs. On 4.000 Rs.26.000. Consignee’s expenses in relation to sales Rs 2. Rs.200 Rs. Aakash draws a bill on Mr.100 and for the balance X draw a bill on Y for 2 months at 12% p.000 in cash and noting charges incurred Rs. issued 15.2.a. At maturity Y request X to accept Rs.1. Profit on venture will be (a) (b) (c) (d) Rs.440.400.06.900 Rs. Ansh and Vansh enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. 15% debentures of Rs.3.000 Rs.06. On 1.5. Yash for Rs 30. Prakash Ltd.25.000 Rs.(6.3.000.06 for 3 months.

On March 31.10. 45. has issued 14% Debentures of Rs. Rs. (a) (b) (c) (d) Rs. Rs.3.000. Rs. Capital employed is Rs. Rs.000.000 under current liabilities. 2006. a letter of approval was received from a customer for Rs. Sales account debited and debtors account credited with Rs.000.33%. 4.000 under current liabilities.000. The amount of goodwill calculated on the basis of super profit method for three years of purchase will be.30. Rs. In this respect.400. The profits of last three years are Rs. 45.40. entry will be (a) (b) (c) (d) Debtors account debited and sales account credited with Rs.000. Varun Ltd.000. 3. Entry will be made at the end of the year.000. On September 2006.00.00. and December 31 every year. 2004 and the company pays interest half-yearly on June 30. Rs.000 shown along with Debentures. Rs.800.550. 3. 351 . No entry is required for receiving the letter of approval from the customer. 42. During 2006. send goods to customers for Rs. sends goods to his customers on Sale or Return recording it as a sale at the time of sending it for approval.000. Rs.10.000. Varun Ltd. 6. 2.000 shown along with Debentures . 4.000 at a discount of 10% on April 01. 46.500.600.000 and normal rate of return is 10%. 40. 39.15. at cost plus 33.45.35. 3.000. 8. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. the amount shown as “interest accrued but not paid” in the Balance Sheet will be (a) (b) (c) (d) Rs. The profit on venture will be: (a) (b) (c) (d) Rs.22.000.(a) (b) (c) (d) 43. Tista Ltd.000.1. Rs.40.000 and Rs. Rs. Rs. Rs.00.40. 44. Anny and Bunny enter into a joint venture sharing profit and losses in the ratio 1:1.000.70. Rs. Rs.000. Bunny sold the goods for Rs 25. Anny purchased goods costing Rs 20.1.000 on sale or return basis.

Tum and Woh are 7:5:4.25. The sacrificing ratio between Hum:Tum will be (a) (b) (c) (d) 3:1.65 per share paid-up as Rs.000 equity shares of Rs.000. Mr.250. Small at Rs.10.4. 24.000 cash and Rs.000 but they want to immediately write it off. 18. 75. Rs.75 per share has been called up could not pay his dues on allotment and first call each at Rs. Rs. Hum and Tum are partners sharing profits and losses in the ratio 5:3. The amount to be transferred to Capital Reserve account will be (a) (b) (c) (d) Rs. 27.000 (c) C’s capital account debit and B’s capital account credit with Rs. 352 . 48.000 (d) A’s capital account debit and C’s capital account credit with Rs. Nil. The Directors forfeited the above shares and reissued 150 of such shares to Mr.100 each on which Rs. 70. Rs.100 each at 5% discount and 2.000 against goodwill. (b) B’s capital account debit and A’s capital account credit with Rs. 49.000. Rs. The effected accounts will be (a) C’s capital account debit and A’s capital account credit with Rs. The full value of goodwill will be (a) (b) (c) (d) Rs.10.500.000. Full amount was received from the applicants in one instalment. 1. On admission.1.000. A. 90.000. 4.47.75 per share. 9% preference shares of Rs. B & C are equal partners. 4:7.000. X and Y share profits and losses in the ratio of 2:1.10.10 each at 10% premium.10.000. A company issued 15. 50. Rs. Woh brings Rs. 51. They take Z as a partner and the new profit sharing ratio becomes 3:2:1.00. They raised the goodwill Rs. They wanted to change the profit sharing ratio into 4:3:2. Big who was the holder of 200 equity shares of Rs. 2:1. New profit sharing ratio between Hum.25 per share. Rs. 5.500 as premium for goodwill. Z brings Rs.000 48. The net balance of securities premium account will be (a) (b) Rs.000.500. 5:4. 2.

Rs. The amount to be credited to Share forfeiture account will be (a) (b) (c) (d) Rs. Rs. 1.800. Jai and Hari are the partners sharing profits in the ratio 7:5:4. 54.(c) (d) 52. (a) (b) (c) (d) Rs. 56.20.500.2 per share and allotment money @ Rs.5.000 shares for subscription. 2.000 shares are to be allotted as (a) (b) (c) (d) 4 shares for every 5 shares applied. 53. 4 each.00. However.24. 10 each were issued to public at a premium of Rs.4. The 353 .000.200.1. Applications were received for 12. Rs. held by Manju for non-payment of final call @ Rs.10 each fully called-up. Rs. 24. A company offers to the public 10. Nil. Rs.000. 10.4.000.000 preference shares.000. forfeited 300 equity shares of Rs. Anju Ltd. Hari died on 30th June 2006 and profits for the accounting year 2005-2006 were Rs.4 per share. Rs. 5 shares for every 6 shares applied. Rs.000. The Board of Directors of a company decides to issue minimum number of equity shares of Rs. 2.200. These shares were originally issued at par. Raj. Cannot be determined. If the shares are allotted on pro-rata basis. The company receives application for 12. 3 shares for every 4 shares applied.000. Amount of securities premium account will be (a) (b) (c) (d) Rs.000.3. 2 shares for every 3 shares applied.2 per share.1. then applicants for 12.000. Rs.00.000 shares.000 equity shares of Rs. How much share in profits for the period 1st April 2006 to 30th June 2006 will be credited to Hari’s Account. Rs. she paid application money @ Rs.000 shares. 6. 10 each at 10% discount to redeem Rs.1600 55.

Rs.000. Rs.2.000. The debentures account is credited with (a) (b) (c) (d) Rs.000 60. G Ltd. purchased land and building from H Ltd. 59.40.000.60.000.000. Rs.223 shares. Rs.75. Debentures are redeemable at par after 6 years.00. Rs.60. 22. 354 .000 Rs. 25.000 Rs.000. 8% debentures of Rs.00. Rich Ltd. The company issued 25.10 each at par and 1.1.50.20. All amounts were received in full. Rs.000. had 3.000.3.10 each at par. Rs. The number of shares to be issued by the company will be (a) (b) (c) (d) 57.00. 12% Redeemable preference shares of Rs.00.25.maximum amount of divisible profits available for redemption is Rs. 18.00.2.2. Rs.000 shares.00.00. Koina Ltd.000 shares.000.40.00.000. The amount to be transferred to Capital Redemption Reserve Account is (a) (b) (c) (d) Nil. The payment was made in full.00. for a book value of Rs.100 each at a discount of 20%. Win Ltd.25.000. fully paidup. 100 each.00. 100 each. The amount of loss on redemption of debentures to be written off every year will be (a) (b) (c) (d) Rs. 58.2.000 14% debentures of Rs. issued 15.000.5. The consideration was paid by issue of 12% Debentures of Rs.8.182 shares.2.000.000 equity shares of Rs.000.10.50 each at premium of 10% payablae as Rs. 3. All the money due on allotment was called up and received.000. The amount of premium will be (a) (b) (c) (d) Rs.3. Rs. which are redeemable after 5 years at a premium of 20%.000 Rs.20 on application and balance on allotment. issued 20. 12% debentures of Rs.50.2. 20.000.

Where the agent has incurred personal liability. Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. if the seller becomes insolvent while the goods are in his possession. the buyer’s remedy (a) (b) (c) Is to claim the goods from the official receiver or assignee. 355 . An agency is said to be irrevocable where agency cannot be terminated or put to an end. Both (b) & (c ). Has a right to become a partner in the firm of the deceased partner. (a) (b) (c) (d) 63. Where the agency is coupled with interest and the interests exists before the creation of the agency or where the agent has incurred personal liability. Which of the following is correct: The heir of the deceased partner In case of an agreement to sale. None of the above. None of the above. Can become a partner in the firm of the deceased partner only if the surviving partners give their consent in this regard. Does not have a right to become a partner in the firm of the deceased partner. Is not available . Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. Is to claim dividend from the estate of the seller for the price paid.25 mark for each wrong answer. A wagering agreement is void.25 mark for each wrong answer.25 mark for each wrong answer. An agency is irrevocable in the following cases: (a) (b) (c) (d) 62. (a) (b) (c) (d) 64. A wagering agreement is void while a contingent contract is valid. (iii) PART I 61. Where the agency is coupled with interest but the interest arises after the creation of the agency or where the agent has incurred personal liability.SECTION – B : MERCANTILE LAWS (40 MARKS) (i) (ii) Questions 61 to 79 have only one correct answer and carry + 1mark each for correct answer and – 0. A contingent contract is valid.

The goods must be unconditionally appropriated to the contract either by delivery to the buyer or to is agent or the carrier. (a) (b) (c) (d) 66. The goods must be in a deliverable state. Trademark. (a) (b) (c) (d) 67. Coercion need not be directed at the promisor. No at least two persons or parties must be involved. Is to file a suit for damages.(d) 65. Where the buyer or his agent lawfully obtains possession of the goods. Undue influence is always exercised between the parties to the contract. (a) (b) (c) (d) 68. The following are goods as per Section 2(7) of the Sale of Goods Act. All of the above Where the seller so conducts himself that he leads third parties to believe that the lien does not exist. There is not much difference in the nature of a partnership from the nature of a HUF because both involve a certain interest of a particular individual. 1930: An unpaid seller loses the right of lien under the following circumstances: Essentials involved in appropriation of the goods are Which of the following is not correct: State which of the following is correct: One person can contract with himself or with himself and others jointly (a) 356 . (a) (b) (c) (d) 69. Undue influence involves physical force. Goodwill. All of the above. There is considerable difference in the nature of a partnership from the nature of a HUF. (a) (b) (c) (d) 70. Patent. All of the above. The goods should conform to the description and the quality stated in the contract. There is difference in the nature of a partnership from the nature of a HUF because unlike the nature of a HUF. the nature of a partnership is voluntary and contractual. Coercion involves physical force. Where seller has waived the right of lien. There is not much difference in the nature of a partnership from the nature of a HUF.

The business may be carried on by all the partners acting for all. (a) (b) (c) (d) 72. None of the above. The features of a Quasi Contract are as follows: (a) 357 . Yes as the contract is between the individual and others jointly. It is imposed by law. Where the circumstances are such that silence is in itself equivalent to speech. The cardinal principle of partnership law implies that In case of a public company (a) (b) (c) (d) 73. There should be at least seven members and maximum number of members should not exceed fifty. Silent is fraudulent in the following cases: (a) (b) (c) (d) 74. Yes if there is a formal agreement. The business may be carried on by anyone or more of the partners acting for all. regard being had to them. An agency can be created by the following ways: (a) (b) (c) (d) 75. None of the above. All of the above. Agency by actual authority. Both (a) and (b). If the circumstances of the case are such that. The business must be carried on in accordance with the decided profit (loss) sharing ratio. Agency by ratification. Agency by ostensible authority. it is the duty of the person keeping silence to speak. There should be at least seven members and there is no restriction on the maximum number of members. Such contracts do not arise from any agreement of the concerned parties. The business must be carried on by all the partners or by anyone or more of the partners acting for all. There should be at least two members and maximum number of members should not exceed fifty. There should be at least seven members and maximum number of members should not exceed hundred.(b) (c) (d) 71.

(a) (b) (c) (d) 77. All of the above. The following are the essential elements which need to co-exist in order to make a valid contract: (a) (b) (c) (d) Offer & Acceptance. Operation of law. Intention to create legal acceptance. All of the above. 1932 requires the following: (a) (b) (c) (d) That the expulsion must be in the interest of the partnership. Express or implied agreement. All of the above. That he is given an opportunity of being heard. PART II 80. That the partner to be expelled is served with a notice.(b) (c) (d) 76. Insolvency of the principal. Such a right is always a right to money. The relationship of principal and agent may arise by (a) (b) (c) (d) 79. Ratification. All of the above. An agency coupled with interest does not come to an end in case of the following: The test of good faith as provided under Section 33(1) of the Indian Partnership Act. Death of the principal. not against the world at large. Insanity of the principal. All of the above. The essential elements of a partnership__________________. 78. Capacity of parties – competency. very often a right to a liquidated sum of money. (a) (b) (c) Must Coexist before a partnership can come into existence May be brought in within a reasonable time of a partnership coming into existence May be brought in any time either during the creation of partnership or even thereafter 358 . It is a right available against a particular person or persons only.

A registered firm cannot claim a set off exceeding the ________________ in a proceeding instituted against the firm or any partner thereof. There are __________ kinds of delivery (a) (b) (c) (d) 83. (a) (b) (c) (d) Rupess 1000/Rupess 100/Rupees 500/Rupees 10. ______________. (a) (b) (c) (d) 82. (a) (b) (c) (d) The buyer The seller Both the buyer and the seller The Central Government or the State Government. the ownership in the goods remains with _______________. The maxim ‘delegatus non potest delegare’means ____________________________. May not coexist before a partnership can come into existence.(d) 81.000/- 85. In case of an agreement to sell. as the case may be 359 . (a) (b) (c) (d) 84. but they must coexist within one year of a partnership coming into existence Property in goods passes to the bailee at the time of contract Property in goods passes to the bailee upon the payment of the last installment Property in goods can pass to the bailee at any time after the contract Property in goods does not pass to the bailee and instead there is transfer of possession of goods takes place from bailor to the bailee for a specific reason Three Four Five Two A person whom authority has been given cannot delegate the authority to another A person whom authority has been given can delegate the authority to another with prior permission A person whom authority has been given to indemnify agent for injury caused by principal’s neglect can be delegated An authority can be delegated under protest by the person to whom authority has been given In case of bailment.

(a) (b) (c) (d) 25 26 24 20 Dissolution of partnership between all the partners of a firm 91. The matter relating to passing of property in case of goods sent on approval or ‘on sale or return’ basis is dealt in the Section _________ of The Sale of Goods Act. 1930. Goods which are to be manufactured or produced or acquired by the seller after making the contract of sale are known as______________. (a) (b) (c) (d) Specific Goods Existing Goods Future Goods Unascertained Goods 88. (a) (b) (c) (d) Null and void Null and void to some extent Is unconstitutional In good faith and in the interest of the partnership 90. A person who is mentally deranged due to some mental strain or other personal experience and suffers from intermittent intervals of sanity and insanity is _____________. (a) (b) (c) (d) Standing Offer Open Offer Identical Offers Cross Offer 87. When two parties exchange identical offers in ignorance at the time of each other’s offer. (a) 360 . (a) (b) (c) (d) Idiot Person Lunatic Person Intoxicated Person All of the above 89. 1932 is __________. Dissolution of partnership means _______________. which is not in accordance with provisions of Section 33 of the Indian Partnership Act. Expulsion of a partner.86. the offers are called __________.

The lender advanced money at 100 percent rate of interest. A Hindu widow borrowed money from a lender for the purpose of filing a suit for maintenance. 1872 The Indian Partnership Act. (a) (b) (c) (d) 93. (a) (b) (c) (d) 96. 1932 The Indian Partnership Act. Insolvency of all the partners Both of the above None of the above The seller cannot exercise the right of stoppage in transit The seller cannot exercise the right of lien The seller can exercise the right of lien The seller can exercise the right of stoppage in transit If the buyer is insolvent. (a) (b) (c) (d) Remission Recission Supervening Impossibility Alteration 361 . (a) (b) (c) (d) Promisee or any other person Promisee Promisor An independent person 94. the contract becomes void. The law dealing with the partnerships is contained in ____________. ___________. The situation is dealing with ________________. 1930 The Indian Partnership Act . 2006 95. (a) (b) (c) (d) Coercion Undue Influence Fraud Misrepresentation The Indian Partnership Act. When performance of promise becomes impossible or illegal by occurrence of an unexpected event or change of circumstances beyond the contemplation of parties. There can be a stranger to a consideration but not a stranger to a contract signifies that a consideration may move from ___________________. The act of the money lender is induced by ___________.(b) (c) (d) 92.

650/. Were inscribed “see reverse for terms & conditions”.On the face of the ticket.Y. A cannot get back any amount of the premium paid by him. X.5. 100. Clause 10 of the printed Terms & Conditions limited the liability of the company for loss of a baggage to Rs. A pays B a premium of Rs. A & B become partners for 16 years.Z are partners in a firm and X becomes insolvent.000/-. issued to him. (a) (b) (c) (d) The firm has to dissolve by default The firm may not be dissolved unless there is any agreement between the partners to do so The status of the firm becomes illegal from the date of adjudication of X as an insolvent X remains a partner. A can get back Rs.from B. Arun was bound by the conditions on the back of the ticket even if he had not read them.as its value.100/-. The bag was lost and Arun claimed Rs. Arun was not bound by the conditions on the back of the ticket as his claim was 13 times more than the compensation offered to him by the railway company.97. 362 . Than ________________.2. unless the firm is dissolved A contract to do something if some event collateral to such contract does or does not happen A contract not to do something if some event collateral to such contract does or does not happen A contract to do or not to do something if some event collateral to such contract does or does not happen A contract to do or not to do something if some event collateral to such contract does not happen 98. (a) (b) (c) (d) A can get back entire amount of the premium paid by him to B. Arun was bound by the conditions on the back of the ticket as he had not read them in full. A contingent contract is _____________________. Arun had deposited a bag in the cloak room of a railway station by paying Rs.500/.50/-. (a) (b) (c) (d) PART III 99. At the end of 8 years there is dispute between A & B and they declare a dissolution. A can get back a reasonable part of the premium. (a) (b) (c) (d) Arun was not bound by the conditions on the back of the ticket as he had not read them at all.

Question 138 to 150 are numerical based which has answers as numerical value and carry +1 mark each for correct answer and – 0. Which of the following statements is correct? (a) (b) (c) (d) (a) (b) (c) (d) Unlike normative economics. Free markets are the markets in which the governments do not intervene. 363 . Which of the following is incorrect? 103. The opportunity cost of a good is the quantity of other goods sacrificed to get another unit of that good. positive economics is based on objective analysis of economic issues.25 mark for each wrong answer. a farmer can feed the following combinations of goats and horses: Goats Option I Option II 168 150 Horses 44 50 Given the option available with him. Increasing opportunity cost implies a production possibility frontier concave to the origin. Questions 117 to 132 are Fill in the blanks type and carry +1 mark for each correct answer and -0. The production possibilities frontier shows the maximum combination of outputs that the economy can produce using all the recourse available. Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries +1 mark each for correct answer and – 0. None of the above. what is the opportunity cost to the farmer of feeding one horse? (a) 1 goat.25 mark for each wrong answer. (iv) PART I 101. All of the above are correct.25 mark for each wrong answer. Microeconomics emphasizes interactions in the economy as a whole.SECTION – C : GENERAL ECONOMICS (50 MARKS) (i) (ii) (iii) Questions 101 to 116 have only one correct answer and carry +1 mark each for correct answer and – 0. With the same amount of resources.25 mark for each wrong answer. 102.

This would lead to a rise in the price of wheat and fall in the quantity of wheat demanded due to: (a) (b) (c) (d) excess demand at the original price. 364 106. 105. demand is inelastic and a change in price causes sellers’ revenue to change in the same direction.(b) (c) (d) 3 horses. Firms that earn accounting profits are economically profitable. Which of the following is correct? (a) (b) (c) . The commodity will be purchased regardless of increase in its price. adds successively less to total utility. total utility remains unchanged regardless of how many units of X are consumed. The elasticity of demand for this commodity must equal zero. for each extra unit of X consumed. A draught in India leads to unusually low level of wheat production. None of the above is correct. holding constant consumption of other goods. total utility increases. each extra unit of X consumed. Opportunity cost plus accounting cost equals economic cost. If the elasticity of demand for a commodity is perfectly inelastic then which of the following is incorrect? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) The commodity must be essential to those who purchase it. holding constant consumption of other goods. The law of diminishing returns implies that: 108. the supply curve shifting to the right. 18 goats. When a firm’s demand curve slopes down marginal revenue will rise as output rises. 3 goats. excess supply at the original price. demand is elastic and a change in price causes sellers’ revenue to change in the opposite direction. marginal utility will increase at a constant rate as more units of X are consumed. The commodity must have many substitutes. the demand curve shifting to the left. 104. If a good has price elasticity greater than one then: 107. demand is unit elastic and a change in price does not affect sellers’ revenue.

constant returns to scale. You are given the following data: Output 0 1 2 3 4 5 The above data is an example of: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) decreasing returns to scale. Economic profits are maximized when total costs are equal to total revenue. Watching a football game on Saturday afternoon Going to university 112. 365 . Total Costs 0 15 28 38 46 54 110. If marginal cost exceeds marginal revenue the firm should decrease output. Profits are maximized when marginal revenue equals marginal cost. When some people in a society are unwilling to work at the prevailing wage rate and there are people who have income from property or some other sources and need not work. casually unemployed. chronically unemployed. Which of the following involve a trade-off? Taking a nap All of these answers involve trade-offs. Which of the following statements is incorrect? 111. voluntarily unemployed.(d) Firms increase profits by selling more output than their rivals. increasing returns to scale. If marginal revenue exceeds marginal cost the firm should increase output. (c). (b). positive fixed costs. Table 1 109. such people are: (a).

(b). PART II 117. 4000 crore. (d). NIXI stands for: 115. (c). 113. 8. National Institute of Exchange of Indian goods. scarce 118. As against the target of 4000 crore disinvestment in 2004-05. (a). National International Exchange of India. 2765 crore. the number of people unemployed is: (a). 192. (d). None of the above. the actual disinvestment has been: (a) (b) (c) (d) 5000 crore. efficient. (c). (a). stagflation. 114. 100. If out of 100 people in the labour force. deflation. the resultant inflation is: 116. 1567 crore. (c). unlimited. Trade-offs are required because wants are unlimited and resources are ______________. (b). 92 National Internet Exchange of India. disguisedly unemployed. If an increase in the price of blue jeans leads to an increase in the demand for 366 . cost push inflation. 92 are in the work force. If demand for goods is services is more than their supply. (a) (b) (c) (d) economical.(d). demand pull inflation. (d). (b).

367 . one. normal goods. Rs 100 (because you could have used the Rs 100 to buy other things) plus the value of your time spent at the game.tennis shoes. (a) (b) (c) (d) nothing. infinite. below the demand curve and above the price. 100 (because you could have used Rs. If consumers always spend 15 percent of their income on food. the action produces marginal costs that exceed marginal benefits. above the demand curve and below the price. A rational person does not act unless ------------------------. (c). 122. (b). your opportunity cost of going to the game is _____________. once the fish are caught the fisherman' price elasticity of supply for fresh s fish is _______________.50. If you choose to use Rs. unable to be determined from this information. If a fisherman must sell all of his daily catch before it spoils for whatever price he is offered. inferior goods. Rs.100 to buy other things) plus the value of your time spent at the game. Suppose you find Rs 100. 119. (a). (c) (d) (a). (a) (b) (c) (d) zero. 121. plus the cost of the dinner you purchased at the game. the action makes money for the person 120. Rs. because you found the money.100 (because you could have used the Rs. substitutes. (a) 1. the action is ethical.100 to go to a football match. 123. (a) (b) (c) (d) complements. the action produces marginal benefits that exceed marginal costs. then blue jeans and tennis shoes are __________________. (b). above the supply curve and below the price. (d). below the supply curve and above the price.100 to buy other things). then the income elasticity of demand for food is _________. Consumer surplus is the area _______________.

(a) incomes of the individual (b) production of goods (c) export and import of goods (d) total property passing to the heirs on the death of a person. (a) European. 125. perfect competition. a monopolist should _______________.(b) (c) (d) (a) (b) (c) (d) 1. 1. increase output. raise the price. (c). (d) American 368 .00 0. (a) (b) (c) (d) net foreign investment net foreign investment plus net domestic investment net national product at factor cost. Estate duty was levied on the ______________________.15. A market structure in which many firms sell products that are similar but not identical is known as (a) (b). (d) monopolistic competition. advanced countries. (c) Asian. 126. If marginal revenue exceeds marginal cost. (b) Capital biased. 128.15. keep output the same because profits are maximized when marginal revenue exceeds marginal cost. oligopoly. replacement expenditure 127. decrease output. ___________________countries are more subject to cyclical fluctuations. Net national product at market price minus net indirect taxes is equal to ____________________. monopoly. 124.

tidal energy. (a) (b) (c) (d) (a) (b) (c) (d) thermal electricity. (a) (b) (c) (d) PART III Read figure 1 and answer questions 133-135. doubled. Electricity generated from water is called___________.6 130. atomic energy. remained constant. Over the years the number of cancer cases has ___________. 123 193 714 183 369 .6 (b) 5. hydel electicity. 131. 132.129. decreased. increased.5 (d) 3. Quantitative restrictions on _________items were removed in the EXIM Policy of 2000-01.4 (c) 2. (a) 6. For almost three decades (1950-80) the average GDP growth rate was about____________% per annum.

Refer to Figure 1. the opportunity cost of producing an additional 15 units of bacon is (a). 134. a combination of production that is inefficient because there are unemployed resources. the opportunity cost of 20 additional units of eggs is 30 units of bacon. 136. A movement from point C to point B. Which of the following represents a movement towards better utilisation of existing resources? (a) (b) (c) (d) A movement from point A to point B. a combination of production that can be reached if there is a sufficient advance in technology. the opportunity cost of 20 additional units of eggs is 20 units of bacon. 370 . (d). (c). Refer to Figure 1. 20 additional units of eggs can be produced with no impact on bacon production. If the economy moves from point A to point D in Figure 1 then: (a). the opportunity cost of eggs in terms of bacon is constant. (c). (c). Point F in figure 1 represents: 137.133. 40 units of eggs. 20 units of eggs. (b). 10 units of eggs. (d) (a). A movement from point E to point B. (b). (d). (c). (b). if the economy was operating at E: 135. (b). the economy becomes less efficient. the opportunity cost of eggs in terms of bacon falls. (d) (a). the opportunity cost of 20 additional units of eggs is 10 units of bacon. If the economy is operating at point C. A movement from point F to point B. none of these answers. a combination of production that can be reached if we reduce the production of eggs by 20 units. 30 units of eggs. the opportunity cost of eggs in terms of bacon rises.

000 and she is able to s actually buy it for Rs.PART IV 138. Read the following paragraph and answer questions 142-144 Nicole owns a small pottery factory. the number of subscribers will fall to 20.000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to Rs 400 per month.000.300 Rs. If the price is Rs 25.000 pieces of pottery per year and sell them for Rs. 141. what is the price elasticity of demand for cable TV in Small Town? (a) (b) (c) (d) 1.400.100 each. Rs20. Using the midpoint method for calculating the elasticity. 200. buyer 2 is willing to pay Rs 25 for one.000 pieces of pottery. Suppose that at a price of Rs 300 per month. She has invested Rs 100. If a buyer' willingness to pay for a new car is Rs.0 140.400 139. She can make 1.000. One vase will be sold and consumer surplus is Rs 5.200 Rs.000 in her factory and equipment: Rs 371 .200. Rs 2. and buyer 3 is willing to pay Rs 20 for one. there are 30.66 0.000 for the raw materials to produce the 1. It costs Nicole Rs 20.000. Natalie values a new bicycle at Rs. One vase will be sold and consumer surplus is Rs30. Suppose that the price of a new bicycle is Rs. Suppose there are three identical vases available to be purchased. Rs 0.4 0.180000 her consumer surplus is (a) (b) (c) (d) Rs18.000. how many vases will be sold and what is the value of consumer surplus in this market? (a) (b) (c) (d) Three vases will be sold and consumer surplus is Rs 80.75 2. Buyer 1 is willing to pay Rs 30 for one. Two vases will be sold and consumer surplus is Rs 5. What is the value of total consumer surplus if Natalie buys a new bike? (a) (b) (c) (d) Rs 500 Rs.

000 borrowed at 10 per cent. The economic profit at Nicole’s factory is: Mr X and Co. (Assume that she could have loaned her money out at 10 per cent. He sells his product at Rs.50000 Rs.) Nicole can work at a competing pottery factory for Rs 40. The accounting profit at Nicole’s pottery factory is: 145. 142. 80000 Rs 75000 Rs. 75000 Rs. 80000 Rs 75000 Rs. 30000 Rs.000 per year. Read the following table and answer questions 146-150. 25000 Rs. Output 0 1 2 3 4 5 6 Variable Cost 0 5 11 18 26 36 50 Fixed Cost Total Cost Marginal Cost 372 .000 from her savings and Rs 50. His fixed costs are Rs 100. 35000 Rs 80000 Rs 30000 143. too. 75000 Rs. The economic cost at Nicole’s factory is: 144. The accounting cost at Nicole’s pottery factory is: (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Rs. His other costs are given below.50000 Rs.50. operates in a perfectly competitive market. 70000 Rs 80000 Rs 30000 Rs. 8 per unit.

50. When 5 units are produced. When the company shuts down. When Mr. 8 Rs. The average total cost of producing 6 units is: 150. X and Co’s production increases from 5 to 6 units. The average fixed cost of producing 4 units is: 149.146. 8 147. Rs. 3. Rs.00. Rs. What is Mr X and Co’s total cost when 4 units are produced? (a) (b) (c) (d) Rs. Rs. 25 Rs. 30. 26 Rs.00. 25. Rs. 14 Rs.25.50 Rs 2. When will Mr X and Co maximize profits? 373 . 6 Rs 1. When 4 units are produced. 2. 3. his marginal cost becomes? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Rs. 148. 10 Rs. 126 Rs 100 Rs. When 3 units are produced.

Fisher’s ideal index. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry +1 mark each for correct answer and – 0.25 mark for each wrong answer. (a) (b) (c) (d) 1/13 1169 1/221 None of these. Current year Quantities. May be equal. The mean and mode of a normal distribution 154. 374 . Paasche’s index. Factor reversal test is satisfied by (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Laspeyre’s index. 152. Base year Quantities. Find the probability that they are both kings if the first is replaced. Questions 171 to 200 are numerical based questions. Are always different.SECTION – D : QUANTITATIVE APTITUDE(50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry +1 mark each for correct answer and – 0. None of these.25 mark for each wrong answer. May be different. Laspeyre’s index is based on 153. Are always equal. None of these. Two cards are drawn from a well shuffled pack of 52 cards. which have answers as numerical value and carry +1 mark each for correct answer and – 0. Average of current year and base year.25 mark for each wrong answer. (iii) PART I 151.

80 8. If in binomial distribution np = 6 and npq = 3 then p is equal to 157. P10 is the index for time 158. x →a 159. A pair of dice is thrown and sum of the numbers on the two dice comes to be 7. 1/3 1/2 1/4 None of these.86 –8. What is the probability that the number 3 has come on one of the dice? (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 1/9 1/3 1/4 None of these. Two variables x and y are related by 7x+7y+13=0 and x =7. Find value of (a) (b) (c) (d) xx . 1 on 0 0 on 1 1 on 1 0 on 0 dy if y=xx dx 156. loge ex 1+log x y.80 x2 − a2 x−a 160. log x None of these. then y is 375 .155. Compute the value of lim (a) (b) (c) (d) (a) (b) (c) a 2a –2a a2 8.

First quartile is the value for which one fourth of the observations are __________Q1 and the remaining three–fourths observations are _____________Q1. 165. (a) (b) (c) (d) (a) (b) (c) (d) Less than or equal to. We use t-distribution when samples are drawn from the ______ population. Less than or equal to Less than. A variable is known to be _______ if it can assume any value from a given interval. unit(s) measurement.(d) –8. More than More than. More than or equal to More than or equal to. . 163. (a) (b) (c) (d) (a) (b) Stub Box–head Body Caption Caption Body 376 166. Less than Discrete Continuous Attribute Characteristic 164. ________ is the entire upper part of the table which includes columns and sub–column numbers. ______ is uniparametric distribution. _______ is the left part if the table providing the description of the rows.86 PART II 161. (a) (b) (c) (d) (a) (b) (c) (d) Normal Binomial Poisson None of these Binomial Poisson Normal Hyper geometric 162.

plotted points on a scatter diagram concentrate from upper left to lower right.8 (a) (b) (c) (d) 8 10 15 None of these.15. Data collected on sex ratio from the census reports are ______ . 50% of actual values will be below & 50% of values will be above ________. The correlation between Employment and Purchasing power is ______ . In case of a _______. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Zero correlation Negative correlation Positive correlation Multiple correlation Mode Median Mean Q1 Positive Negative Zero None of these Primary data Secondary data Discrete data Continuous data 168. 169. What is the median for the following observations? 6. What is the median of y? (a) 1/3 377 . The variables x and y are related by 2x+3y=6 and median of x is 2.20. 172. PART III 171.10.5.(c) (d) Stub Box head 167.16. 170.

then the percentage of variation unaccounted for is (a) (b) 70% 30% 378 . of students (Frequency) 4 5 7 16 Find Relative frequency for the second class interval. then the coefficient of determination is (a) (b) (c) (d) 0. If the coefficient of correlation between two variables is –0.4 0. 175. 7.80 174.5.9. Find D6 for the following observations.14. (Class interval) 44 – 48 49 – 53 54 – 58 Total (a) (b) (c) (d) 1/11 5/4 5/16 1/4 No.40 13.40 12.20 (a) (b) (c) (d) 11.4.6 0.6.18. If the coefficient of correlation between two variables is 0. Refer following table: Frequency distribution of weights of 16 students Weight in kg.2 176.15.40 13.16 0.7.10. 173.4.(b) (c) (d) 2/3 1 None of these.

A bag contains 5 red and 3 yellow balls. 180.(c) (d) 51% 49% 177. –54 is 179.2. 216 120 24 240 3 –4 6 None of these. If A = (1.5? 181.P 2. The integral of (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 1 ( x − a) log 2a ( x + a) 1 ( x + a) log 2a ( x − a) 1 x log 2a ( x + a) None of these. The probability that both balls drawn are yellow is (a) (b) (c) (d) (a) (b) (c) (d) 9/64 3/28 1/7 None of these. How many numbers greater than 2000 can be formed with the digits 1.3.6. 2.10.7) and B= (1.15) then cardinal number of A~B is 379 .5. 18.–6. Two balls are drawn at random one after the other without replacement.4.3. 3 –3 4 –4 dx will be x − a2 2 178.3. The common ratio of the G.

a. x →∞ 184.38% None of these.0075)12 = 1. so what is the value of (a) (b) (c) (d) x+2x log x x2+log x 2x2 x2+2x log x None of these. Find (a) (b) (c) (d) 9% 9.09380690 The student decided to find effective rate of interest which is (a) (b) (c) (d) (a) (b) (c) (d) 185. Evaluate lim 9 1+ x x (a) (b) (c) (d) e9 9 1 e1 380 . Find the equation of the line with slope –0.25 and (–2. Ram is confused whether to invest at 9% p.25% 9. simple interest. d2p dx 183.25% p. given that (1+ 0. x+4y+18=0 2x+4y+15=0 2x+y+18=0 x+4xy–18=0 dy when y=4x3+8x7 at x2=2 dx 424 470 472 None of these. –4) on the line 186. Let p=x3 log x.182.a. compounded monthly or 9.

If 10–2 = (a) (b) (c) (d) (a) (b) (c) (d) –2 2 –1 1 +1 +2 0 None of these. If the set P has 6. 80.01 log 0. Solving equation 3x2–14x+16=0 we get roots as 192. np r 13 9 60 None of these.01 is 100 188. rate of interest. 32000 381 . Rahul invested in Bank Rs. 22 25 20 13 can be expressed as n! r! n! (n − r )! n! r! (n − r )! None of these.P with first term as 4 and common difference being 2 (a) (b) (c) (d) 190.a. Mr. 191. Q has 5 and R has 2 elements then the set PxQxR contains (a) (b) (c) (d) (a) (b) (c) (d) 189.000 for 4 years at 10% p.187. 1 then the value of 0. How much he will earn ? (a) Rs. Find the 10th term of an A.

2. 6 2 3 4 – – = –11 and x y z 3 2 1 + − =−6 x y z 382 . 3. Find the value of p from (a) (b) (c) (d) 16 8 –8 4 /2 4 4 ( 4) x ( 2) −6 −4 = 2p 194. find the product of extremes. x y z 197. (a) (b) (c) (d) 4.4. 2 are in proportion & their product of means is 4. (a) (b) (c) (d) 196. 3 2.8 2. 193. 1 1 1 + + =5 . 6.4 8. Evaluate 0 cos x sin x + 4 cos x dx (a) (b) (c) (d) 195.5.4 None of these. 1.(b) (c) (d) Rs. Determine the solution set of is (a) (b) 2. 3. The No’s 2. 18000 Rs.8. 23000 None of these. If –1 0 1 π 4 p+q+r p q r = = then is p 7 6 11 8 5 4 None of these.

6} {1..4. If P= {1.3.. Determine the common difference of progression 16. 25 terms 200..4} : Q= {2.(c) (d) 6.4. 13. This can be shown by (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) x + y < 360 x + y > 360 x + y ≠ 360 None of these..4. In a class of boys (x) and girls (y) the maximum seating capacity is 360.. 199.. 2 6.2..6} then P 383 ..10 ..6} None of these...2..2.6} {1. 2. 3..3. 2 –2 3 –3 Q {1. 3 198.3.

50.000. Maximum Marks : 200 (iii) (iv) PART I 1. Please follow the instructions given in each section carefully and answer the questions. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) (i) (ii) Questions 1 to 10 have only one correct answer and carry + 1mark each for correct answer and – 0. Questions 23 to 60 are numerical based questions. What is the amount of expense as per the accrual concept? (a) (b) (c) (d) Rs.BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT-10/2006 Time: 4 hours The test is divided into four sections.25 mark for each wrong answer.000 paying cash Rs. Rs. Questions 21 and 22 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. 20. Questions 11 to 20 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0. 30.000. 20.000. Nil. which have answers as numerical values and carry + 1mark each for correct answer and – 0. 50.25 mark for each wrong answer.000.25 mark for each wrong answer.25 mark for each wrong answer. 384 . Ashok buys clothing of Rs. Rs. Mr.

Basis for establishing and managing an entity. Ledger. Ledger. Balance sheet. As an income. Journal. As an asset. Journal. Ledger. All of the above. Profit and loss account. Loss leads to a reduction in (a) (b) (c) (d) Liability. 3. The determination of the amount of bad debts is an accounting (a) (b) (c) (d) 6. Basis for selection of accounting policy. Subsidiary books. Profit and loss account Journal. Income.2. As an expense. Estimate. Ledger. None of the above 5. Balance sheet . Ledger. Both (a) and (b). parameter. Balance sheet . The expired portion of capital expenditure is shown in the financial statements as (a) (b) (c) (d) 385 . Policy. Balance sheet . Profit and loss account. Disclosure of accounting policies. None of the three. 7. Capital. Profit and loss account. Set of broad accounting policies to be followed by an entity. None of the three. Accounting standards are (a) (b) (c) (d) 4. “Substance of any transaction should be considered while recording them and not only the legal form” is the statement which holds true for (a) (b) (c) (d) Substance over form. As a liability. What is the order in which the accounting transactions and events are recorded in the books? (a) (b) (c) (d) Journal..

Errors are ________ mistakes. Opening balances. except (a) (b) (c) (d) PART II 11. Debit balance. Frauds. (a) (b) (c) . 9. Compensating errors. 10. Trial balance is a statement which shows the ________or the ________of all the accounts. 386 13. In the currency set by the ministry of finance. Credit balance. Frauds. It is easy to detect ______than to ______. Intentional. Unintentional. In the ruling currency of the country in which books of account are prepared. Revenue expenditure. None of the above. 5. Undetected. Errors. Posted balances. In the currency set by the Govt. Errors of principle. Errors of partial omission. (a) (b) (c) (d) Balances.8. According to money measurement concept. Frauds. Mistakes. Rs. (a) (b) (c) (d) 12. Total of balances. currency transactions and events are recorded in the books of accounts (a) (b) (c) (d) In the ruling currency of the country in which transaction takes place.000 incurred for upgradation of computer by installation of 128 MB RAM is (a) (b) (c) (d) Capital expenditure. Errors. Errors of complete omission. All of the following errors do not affect the trial balance . Deferred revenue expenditure. Closing balances. None of the three. Totals.

Bank book. (a) (b) (c) (d) 15. Bank pass book is also known as ________ Capital expenditures are recorded in the ________ Accounts receivable normally has ________balance. By balance c/d. Deferred capital expenditure. Rs. Expense.000 spent on maintenance of plant and machinery is______. (a) (b) (c) (d) 16. Debit. Bank statement. Revenue expenditure. Mistakes. In case of debit balance. Profit and loss account. 387 . None of the three. Similar. (a) (b) (c) (d) 18.(d) 14. Bank column. Debit. To balance c/d. Unfavourable. Balance sheet. (a) (b) (c) (d) 17. (a) (b) (c) (d) Errors. Manufacturing account. Trading account. 5. An account is a formal record of changes in items of ________nature. None of the above. Credit. To balance b/d. Bank account. Revenue. the words ______ are written on the debit side. By balance b/d. (a) (b) (c) (d) 19. Capital expenditure.

000 and RS. which was registered in the year 2000. 2.000 and Rs.95. Conservatism. 5. X: Capital Rs. None of the above. Periodicity.000. A businessman purchased goods for Rs. Rs.000.00.7.20.25.00. Charge. Machinery Rs. 7. X spends Rs. 1. (a) (b) (c) (d) Usage. The market value of the remaining goods was Rs. the balance of capital and cash accounts will be (a) (b) (c) (d) Rs. Rs.00.00.00.000. 2005.95.000 and cash Rs. M/s Omega Brothers.00. 388 . Rs.00.00. Following are the items of the balance sheet of Mr.000.000 and Rs.000 due to (a) (b) (c) (d) 22. 5. Money measurement.000 to meet his family expenses.000.000 and Rs.6.000.000. 7.000 and not at Rs. 2. PART III 21.95. If Mr. 2.6.00. The assumption underlying the fixed installment method of depreciation is that of ________ of the asset over different years of its useful life. The objection of the auditor is justified because (a) (b) (c) (d) Change in the method should be done only with the consent of the auditor Method can be changed only from FIFO to LIFO and not vice versa Change in the method should be done only if it is required by some statute and change would result in appropriate presentation of financial statement Method cannot be changed under any circumstances. Cost. Equal usage.5. 1. 5.7.000 and sold 70% of such goods during the accounting year ended 31st March.50.95. He valued the closing stock at Rs. The auditor raised objection to this change in the method of valuation of investments. PART IV 23.00. In the current year it changed its method from LIFO to FIFO Method in the year 2005. has been following LIFO method for valuation of shares.

60. The amount of revenue earned by him is (a) (b) (c) (d) Rs. 4.000.000. Rs.000 Nil 40. 3. 50. 26.000 Rs.000 and sold it for Rs 60. 3.000. the bill returned dishonoured as Y become insolvent and 40 paise per rupee is recovered from his estate. Originally A had contributed Rs 12000 and B Rs 8000. 1.1. 25. If sales revenues are Rs. Mohan started a cloth business by investing Rs. 5. Rs.00. The profit on venture will be (a) (b) (c) (d) Rs.24. Add Rs 2. 50. 60. 2. bought merchandise worth Rs. The amount recovered is: (a) (b) (c) 20.000. 4. 1.10. On 1. At maturity. Rs. Mr. 50.10.000 in 2005. None of the three.000.00.000 deposited.000.05 X draw a bill on Y for Rs 1. Customers paid him Rs. 20.000 389 .500 were credited in March and cheques aggregating Rs. 90.500. 3.000.000 Nil 28. He sold merchandise for Rs.000.500.000. 50. 27.000 Rs. Rs. the gross profit is (a) (b) (c) (d) Rs.000 cash and assured him to pay Rs.000.000 shortly. cheques aggregating Rs. 10.000. Rs. When balance as per cash book (debit balance) as on 31 st March is the starting point. Add Rs. 70. Subtract Rs. what will be the effect while preparing bank reconciliation statement when out of the cheques amounting to Rs.000 credited in April and the rest have not been collected? (a) (b) (c) (d) Subtract Rs. 2. A and B purchased a piece of land for Rs 30.000.00.000. 60.00. cost of goods sold is Rs.000.000.3. 30.

6.000 per month and withdrew goods worth Rs. Cash embezzlement a/c Rs. 11.000. 31. 9. 620. The amount of surplus will be (a) (b) (c) (d) Rs 42. Goods costing Rs.000.000 Rs 27. he purchases goods for Rs. Salary account. Goods sold for cash Rs. plus 10% sales tax. Salary in advance account.500 for personal use and got salary Rs. 627. 10. The excess payment of Rs. Rs.5. 10. 6.000 for running a stationery business.00.2. 6.000 Rs 47. 33.000 Rs 1.000 None of the above.000 and finds that still he has goods worth Rs.000 and sells for Rs.000.. He pays shop rent for the month Rs.62. 30. 9. Rs. 40 paise An individual invests Rs.000 stolen from the safe of the firm will be (a) (b) (c) (d) 390 . 2.000 will be debited to (a) (b) (c) (d) Sales account.. Cash embezzlement a/c and Cr.000 None of the above.(d) 29. 1.500 in cash. P& L a/c and Cr. Dr.000 in hand. Ganesh got a salary Rs.000. 2. 6. Cash a/c and Cr. The amount of sales will be (a) (b) (c) (d) Rs.000 during the month of January. On 1st Jan. P& L a/c Rs. Rs. 15. Journal entry for Rs. Sales will be credited by (a) (b) (c) (d) 32. 1. 660.15. Dr. Rs. 10. Goods account. 570.47. Dr. 600 is supplied to Ram at the invoice of 10% above cost and a trade discount for 5%.000. Rs.000. Cash a/c Rs. Rs.

a.25. 2.000 Credit (Rs. S.800 None of the above. Profits apportioned among Sita and Gita is: (a) (b) (c) (d) Rs. interest on capital before distributing the profits.) 12.000 and 2. During the year firm earned Rs. 3.000 Rs. Normal rate of return is 20% in similar firms working under similar conditions.50. Sita and Gita are partnes haring profits and losses in the ratio of 3:2 having the capital of Rs.000.000 2.800 and 3.00. A sale of Rs. Debit (Rs.100 to A recorded in the Purchase Book would affect: (a) (b) (c) (d) 38. They are entitled to 9% p. The above difference in trial balance is due to (a) (b) (c) (d) 36. 4.120 Rs. Adjusted to any of the debit balance account.680 and 3. No.1.000 391 . 5.000 10. Sales Account Purchases Returns Account Sales Account. Account heads Sales Purchases Miscellaneous expenses Total wrong placing of sales account Incorrect totalling. Adjusted to any of the credit balance account.80.800 after allowing interest on capital.000.000 and its average profit is Rs.34.000 respectively. Debited to suspense account.500 35. After preparing the trial balance the accountant finds that the total of the debit side is short by Rs. 1.500 15. None of the above. 4. 37. The firms earns super profit of: (a) Rs.7. The accountant of the firm M/s ABC is unable to tally the following trial balance. wrong placing of miscellaneous expenses account Wrong placing of all accounts.) 10. 1. Total capital employed by a partnership firm is Rs. This difference will be (a) (b) (c) (d) Credited to suspense account. Purchases Account & A Account.000 and Rs. 3.

000 Rs.00.333 40. They mutually agree to change the profit sharing ratio to 3:3 2:2.25.000 If capital employed by a partnership firm is Rs.000 392 .1.000 and its average profit is Rs. Profit sacrificing ratio will be: (a) (b) (c) (d) 0:1/6 2:1 3:1 None of the above.40.000 Rs. The new profit sharing ratio is 3:2:1.75.30.00.(b) (c) (d) 39. B. 5.33. A and D are equal partners. the value of goodwill is: (a) (b) (c) (d) Rs.5.20. 2.72. Rs.000 as goodwill.1.33.000 (iii) Calls in advance Rs.333 Rs. C & D are in partnership sharing profits and losses equally.000 The amount of dividend payable is (a) (b) (c) (d) Rs.60.250 Rs.5.71.750 Rs. They wanted to admit C as 1/6th partner who brought Rs.000 Rs. 4.000 Rs.000 (iv) Proposed dividend 15% 42. (i) Equity share capital called up Rs. In this process D loses by: (a) (b) (c) (d) 1 20 1 10 1 5 None of the above (ii) Calls in arrear Rs. A.000 normal rate of return is 15%.69. 41.000 Rs. The following information pertains to X Ltd.

the forfeiture account will be credited by: (a) (b) (c) (d) Rs.800. At the year end.50 for interest.050 None of the three.000 and consigned them to B to be sold on joint venture.000 and a new bill for the balance plus Rs. Rs. Rs. (a) (b) (c) (d) 2. Rs. The profits of last three years are Rs.2 on application but did not pay the allotment money of Rs.700 2025 3. 43. the remaining goods were neither returned nor approved by him. Rs. 36.000.500 at profit of 25% on sale to Sohan on sale and return basis. Rs.500 discharge by a cash payment of Rs. C purchased 30 shares and paid Rs.3. 84. profits being divided equally.000. Mohan sent some goods costing Rs.8. 60.000 2. i. 2006. 90.000 Rs.. Mr.10.26. The amount of bill will be (a) (b) (c) (d) Rs. 1.000 393 . issued shares of Rs.000 Rs. Sohan return goods costing Rs. Rs. 44. 54.43 .1. A bought goods of the value Rs. A’s acceptance to B for Rs. A draws a bill on B for an amount equivalent to 80% of cost on consignment.6.000 and Rs.e.2. 38.000. Find out the goodwill of two years purchase.3. (a) (b) (c) (d) Rs. on 31st December.500 46.000. If the company forfeited his entire shares.10.000. Alfa Ltd. 45.9. The stock on approval will be shown in the balance sheet at Rs. 42. 45. The amount of the new bill will be Rs: (a) (b) (c) (d) 2.550 1.10 each at a discount of 10%. 81.000.000 Rs.550 1. 47. Rs.

2.000 None of the above. 2.400 freight.2. The amount of loss will be (a) (b) (c) (d) Rs.250 each are sent on consignment basis and Rs.000 typewriters costing Rs.000 Rs. 50. 1000 Kg.10. The installation charges amounting Rs.000 was purchased on 1. plus Rs. the cost being Rs.3 per kg. were sold by the consignee.16.1.1. 20 typewriters are damaged in transit beyond repair.5. Machinery costing Rs. Goods costing Rs 5.000 Rs. None of the above.000 is spent for freight etc. 51.000 were incurred.6.25.00. Invoice price of the goods is (a) (b) (c) (d) Rs.2006. 1.5. Goods costing Rs.00. 394 . Invoice value of the goods will be (a) (b) (c) (d) Rs.10..000 Rs.4. The remaining stock of 100 kg. of Mangoes were consigned to a wholesaler.00. 52.48. If 1.000 None of the above. 2007 will be (a) (b) (c) (d) Rs.6.400.00.500.00.000 Rs.80.00. will be valued at (a) (b) (c) (d) Rs.000 sent to consignee to show a profit of 20% on invoice price. Rs. 750 kgs.1.200 Rs. The depreciation at 10% per annum on straight line method for the year ended 31st March.10.10.000 Rs. Rs. 5. 49.000 None of the above.2.000 sent out to consignee at Cost + 25%.25.000 Rs. Loss of 15% of Mangoes is unavoidable.00.200 None of the above.000 Rs.300.

Goods purchased Rs.000. 15. 1.1.000 Nil. Rs.15.000. 2.000. None of the three.5.2006 is Rs. The amount to be charged to profit and loss account is (a) (b) (c) (d) Nil. The amount of salaries for the year ended 31st December.000. 10.000.000 Rs. Rs. 2005.00.000. (a) (b) (c) (d) Rs. 25. 90.000. 1. Opening stock Rs.000.00.. He renovates some of the old cabins to increase some space.53. The amount of Rs. 10.000.00.2. 9.000.10. 2006 will be. closing stock Rs. The amount of gross profit is (a) (b) (c) (d) Rs.50. Margin 20 % on sales. Rs. 28. Sales Rs. Gross profit rate 20% on sales.000 each in the year ending 31st December.000. Balance as per pass book should be (a) (b) (c) (d) 11.000.000 None of the above. Closing stock is (a) (b) (c) (d) Rs.000.3.000. 56.1. None of the above. 15.11.00.000. 55. 2.000 and Cheques issued but not presented of Rs.000. the company raised salaries by 10%. At the start of year 2006.000. purchases Rs. None of the above 395 .50. Mohan runs a restaurant. 54. 1. Rs.Cheques deposited but not cleared amounts to Rs. Rs. XYZ & Company employs a team of ten workers who were paid Rs. sales Rs.000 was incurred on renovation.000 Rs. Debit balance as per Cash Book of ABC Enterprises as on 31. 10. 10.00. None of the above. 57.

Capital introduced in the beginning by Shyam Rs.10 each (which were issued at par) held by Mr. Asset. 32.000. The called-up value per share was Rs.000 Rs.000 for installing telephone in office is (a) (b) (c) (d) Expense.000.000. A company forfeited 1.2. 4. Profit of Rs. 60.8. the amount debited to share capital will be (a) (b) (c) (d) Rs.58. 32.000.10. On forfeiture.000 Rs.500 per month and closing capital is Rs. Information is insufficient for any comment..000.000. 1.50.000. 59. 10. 396 . Revenue. John for non-payment of allotment money of Rs. further capital introduced during the year Rs.000 shares of Rs.00.000 Rs.00. 2. Loss of Rs. Drawing Rs.4 per share. The amount of profit or loss for the year is (a) (b) (c) (d) Loss of Rs.18. Money paid to MTNL Rs.8. Liability. 3. 50.

Which of the following is correct: (a) (b) (c) (d) 62. Both (a) and (b). Questions 80 to 98 are the fill in the blank based questions having four alternate answers and carry + 1mark each for correct answer and – 0.SECTION – B : MERCANTILE LAWS (40 MARKS) (i) (ii) Questions 61 to 79 have only one correct answer and carry + 1mark each for correct answer and – 0. All of the above.25 mark for each wrong answer. A particular group or body of persons. Ratification can be of the acts which the principal had the power to do. All of the above. Neither of (a) or (b). the whole world.e. The liability of partners of a firm is unlimited. Under Section 201 of The Indian Contract Act.25 mark for each wrong answer. the termination of an agents’ authority can be caused due to (a) (b) (c) (d) Revocation of authority by the agent.25 mark for each wrong answer. Renunciation of agency by the principal. Generally the liability of a member of a company is limited but it can be unlimited. The liability of partner of firm is same as a member of any company. The public at large i. 1872. 63. The whole transaction can be ratified. (iii) PART I 61. Ratification must be communicated to the party who is sought to be bound by the act done by the agent. An offer may be made to the following: (a) (b) (c) (d) 397 . All of the above. The following are the requisites of a valid ratification of a contract of agency: (a) (b) (c) (d) 64. Questions 99 and 100 contain small paragraph / table followed by a question having only one correct answer and carry + 1 mark each for correct answer and – 0. A particular person.

In some other situations. Under English law past consideration is no consideration whereas under Indian Law past consideration is good consideration. In both of the above situations. Contracts classified on the basis of formation are of the following types: (a) (b) (c) (d) Express Contracts. Quasi Contracts. Dock-warrant. (a) Implied authority of the partner does not empower him to 398 . Open a bank account on behalf of the firm in his own name.65. The fact must be essential to the agreement. Under English law consideration must move from the promisee only and no other person whereas under Indian Law consideration may move from the promisee or any other person. Where the buyer altogether waives the performance of the condition. Contracts may be classified on the basis of their validity. but not in the above situations. The following is not a ‘document of title to goods’: (a) (b) (c) (d) Bill of lading. 66. All of the above. Under English law formal contracts i. one which is one in writing do not require any consideration whereas under Indian Law all contracts are required to be supported by consideration.e. The mistake must be as to some fact. The difference in consideration under English law and Indian law are: (a) (b) (c) (d) 70. 68. Stamped acknowledgement for receipt of goods. Warehouse keeper’s certificate. A condition may be treated as warranty in the following cases: (a) (b) (c) (d) 69. formation or performance. Implied Contracts. Both the parties must be under the same mistake. All of the above. All of the above. An agreement induced by mistake of fact is void if the following conditions are fulfilled: (a) (b) (c) (d) 67. Where the buyer elects to treat the breach of condition as one of a warranty.

The above statement is irrelevant. 399 . No as C did not pay the consideration. None of the above. A void contract is a contract without any legal effect and cannot be enforced in a Court of law. Risk in the goods does not pass to the buyer. 74. Agreements by way of wager. Can C enforce the agreement? (a) (b) (c) (d) Yes. Dissolution by the adjudication of all the partners or of all the partners but one as insolvent. 73. The above statement is partly correct. Yes but the same can only be done jointly with A. even after he attains majority is not allowed. None of the above. B and C was executed whereby A pays money to B for delivering some goods to C. Agreements made without consideration. In case of sale (a) (b) (c) (d) 75. A contract between A. All of the above. Compulsory Dissolution includes Ratification by a minor of a contract entered during minority. All of the above. Both of the above. Dissolution by the business of the firm becoming unlawful. The following are instances of void contracts: (a) (b) (c) (d) Agreements entered under mistake of fact. The above statement is incorrect. (a) (b) (c) (d) 72. Property in goods does not pass to the buyer. Compromise or relinquish any claim or portion of a claim by the firm against an outsider. (a) (b) (c) (d) The above statement is correct. C has not paid any consideration. None of the above. Both of the above. as he is the beneficiary of Trust.(b) (c) (d) 71. A and only A can enforce the agreement.

. which is inconsistent with the ownership of the seller.76. (a) (b) (c) (d) 81. None of the above. Liability of a member of a HUF is unlimited. Does any act to the goods. Both the above. Intimates to the seller that he had accepted the goods. 77. Retains the goods after the lapse of a reasonable time. Right to cast his vote on the question of appointment of the managing partner. without intimating to the seller that he has rejected them. None of the above. Right to share of the property and profits of the firm as may be agreed upon. Liability of a partner in a partnership firm is unlimited. Property in goods passes to the bailee upon the payment of the last installment. (a) (b) (c) (d) Implies an agreement to share losses Does not necessarily mean an agreement to share losses Must be coupled with an agreement to share losses Is same as agreement to share losses Impossible Possible through an agreement to sell Illegal A myth 400 Actual Sale of future goods is______________. The rights of a minor when admitted to the benefits of the partnership include (a) (b) (c) (d) 79. Property in goods can pass to the bailee at any time after the contract. (a) & (b) but not (c). Right to have access to and inspect and copy of the account of the firm. Either (a) or (b) or (c). Agreement to share profits______________. Which of the following is correct: (a) (b) (c) (d) PART II 80. Acceptance is deemed to take place when the buyer (a) (b) (c) (d) 78. In case of bailment (a) (b) (c) (d) Property in goods passes to the bailee at the time of contract.

(a) (b) (c) (d) Partially different Partially same Entirely different Same The buyer may take delivery of them The buyer would. or to induce him to enter into a contract is said to be ______________. An offer made to a definite person who can be accepted by the specified person only is _________________. or with his connivance or by his agent with intent to deceive another party thereto or his agent. (a) (b) (c) (d) 86. Goods are said to be in a deliverable state when____________.82. (a) (b) (c) (d) Contingent Contract Quasi-Contract Guarantee Bailment 84. (a) (b) (c) (d) Coercion Undue Influence Fraud Misrepresentation 87. Any act committed by a party to a contract. (a) 16 401 . This is an example of__________. A contracts to pay B Rs. Doctrine of Caveat Emptor is laid down in the Section _________ of The Sale of Goods Act. be bound to take delivery of them The seller is in a position to deliver them All of the above 85. The position of a stranger to a contract and that of the stranger to a consideration is____________. (a) (b) (c) (d) Special Offer Accepted Offer General Offer Standing Offer 83.00.000 if the latter’s house is burnt to ashes.1. 1930. under contract.

A agrees to pay B Rs. (a) (b) (c) (d) A contingent contract A wagering contract Illegal Void 90. (a) (b) (c) (d) C is an agent of A C is a sub-agent of A C is an agent of B C is neither an agent of A nor of B 89.(b) (c) (d) 88. It is _________________. X proposes by a letter sent by post to sell his house to Y. (a) (b) 402 .5. an auctioneer. A contract to do or not to do something if some event. to conduct the sale. The status of C for the sale is _____________.if A is able to go to a foreign tour in the forthcoming week. collateral to such contract does or does not happen is _______________. (a) (b) (c) (d) Cannot revoke his acceptance May revoke his acceptance at any time before the letter communicating the acceptance reaches X but not afterwards May revoke his acceptance at any time after the letter communicating the acceptance reaches X Can revoke only after the prior approval of X 91. B names C. Y ________________.000/. (a) (b) (c) (d) A wagering contract A contingent contract Both of the above Not a contract at all Invitation to treat an offer Mere communication of information in the course of negotiation 92. 10 17 20 A directs B who is a solicitor to sell his estate by auction and to employ an auctioneer for this purpose. The letter of acceptance is in the course of transmission to X.00. Y accepts the proposal by a letter sent by post. A bus plying on the road is an example of _________________.

Goodwill of the partnership business can be regarded as _________________. (a) (b) 403 . subject to order of the High Court to this effect Is liable for all the liabilities of the firm in person Is liable for all the liabilities of the firm through his properties 94. which is allowed to remain open for acceptance over a period of time. (a) (b) (c) (d) Cross Offer General Offer Standing Offer Unlimited Offer In case of sale In case of bailment In both the above cases In no case Which are agreed upon between the parties at the time of the contract Which are presumed by law be present in the contract Both of the above None of the above Actually mean the same right Are actually similar rights Are consequential or sequential in nature. subject to a contract between the partners to this effect The property of the firm. Expressed conditions are those_________________. Right of lien and Right of stoppage in transit _________________. A minor when admitted to the benefits of the partnership ______________.(c) (d) 93. irrespective of a contract between the partners to this effect The property of the firm. Statement of intention Offer Tender for supply of goods is an offer. (a) (b) (c) (d) 97. Consideration may be gratuitous or non-gratuitous _________________. i. (a) (b) (c) (d) 96. (a) (b) (c) (d) 95. the end of right of lien is the starting point of the right of stoppage in transit Are rights available to any seller of goods The property of the firm The property of the firm. Such offers are _______________. (a) (b) (c) (d) 98.e.

whether the element of fraudulent intention is present or not. A introduced C. C had not issued any public notice in the year of his retirement from the partnership firm. C is liable to D because he had not issued any public notice of his retirement from the partnership firm. (a) (b) (c) (d) Sanju is well protected because she relied on Manju in all good faith. C remained silent at that moment. 100. The documents contained the fact that Sanju was healthy. C is not liable for the price to D. fit and fine whereas she was actually suffering from chronic asthma and acute allergy. a former partner. A & B are partners in a partnership firm. a trader knowing well that only A & B are the partners of the firm. In light of the above circumstances answer which of the following is correct: (a) (b) (c) (d) C is liable for the price to D. as his partner to D. Sanju singed whatever documents were placed before her by Manju in good faith. Sanju took a medical insurance from Deadly Diseases Insurance & Claim Corporation of Asia (DDICCA) through one of its agent. 404 . irrespective of the fact. C is liable for the price to D. 1932 PART III 99. Sanju has no duty to speak and disclose the above issues. D. but later on informed D that he is actually a former partner of the firm. Sanju is well protected because Manju never specifically asked here about the above issues and so she remained silent. Sanju did not take care to suggest the changes in the documents and the policy was issued based on the above submissions. only if the element of fraudulent intention is present. Manju. D filed a suit against A & C for the recovery of price. The credit period expired and D did not get the price of his supplies. supplied 500 refrigerators to the firm on credit.(c) (d) Is never liable for any of the liabilities of the firm Is liable in accordance with the provisions of subs-section (3) of Section 30 of the Indian Partnership Act. It is the duty of DDICCA and its representatives to ask whatever is required. Sanju has a duty to speak and disclose the above issues.

25 mark for each wrong answer.25 mark for each wrong answer. a normal good.25 mark for each wrong answer. Economics is the study of (a). The unemployment rate should be lower. Which of the following is not part of the opportunity cost of going on holiday? 103. (b). then camping equipment is (a). Questions 133 to 137 contain small paragraph / table followed by a question having only one correct answer and carries + 1 mark each for correct answer and – 0. (a). (c). 102. none of these answers. (d). If an increase in consumer incomes leads to a decrease in the demand for camping equipment. how to reduce our wants until we are satisfied. (d). how society manages its unlimited resources. (c). Questions 117 to 132 are Fill in the blanks type and carry +1 mark for each correct answer and -0. an inferior good. (c).SECTION – C : GENERAL ECONOMICS (50 MARKS) (i) (ii) (iii) Questions 101 to 116 have only one correct answer and carry + 1 mark each for correct answer and – 0. (d). (b). how society manages its scarce resources. (b). (c). (b). Question 138 to 150 are numerical based which have answers as numerical value and carry + 1 mark each for correct answer and – 0. how to fully satisfy our unlimited wants the money you spent on a theatre show the money you could have made if you had stayed at home and worked the money you spent on airline tickets the money you spent on food Large government deficits cause an economy to grow more slowly. Which of the following statements is normative? 104. Printing too much money causes inflation.25 mark for each wrong answer. (a). 405 . People work harder if the wage is higher. (iv) PART I 101.

(b). diminishing marginal product of labour. economic profits will be zero. economic profit will be less than accounting profit. its total revenue: 406 . 107. If a competitive firm doubles its output. 105. There is an increase in the demand for apples and an increase in the quantity supplied minimum amount they are willing to pay for a good.(d). consumer surplus. maximum amount they are willing to pay for a good. (c). There is an increase in the demand for apples and a decrease in the supply of apples. diminishing returns to scale. Suppose consumer tastes shift toward the consumption of apples. (d). economic profit will be more than accounting profit. (c). There is an increase in the demand and supply of apples. a substitute good. A buyer' willingness to pay is that buyer' s s: (a). economic profit will be equal to accounting profit. (d). increasing returns to scale. (b). Which of the following statements is an accurate description of the impact of this event on the market for apples? (a). 108. The following table exhibits: Number of workers 0 1 2 3 (a) (b) (c) (d) (a) (b) (c) (d) increasing marginal product of labour. producer surplus. Output 0 23 40 50 106. There is an increase in the quantity demanded of apples and in the supply for apples. If there are implicit cost of production: 109.

price equals marginal cost. marginal revenue. (c). (d). slow and uneven growth. Agriculture faces the problem of: (a) (b) (c) (d) (a) (b) (c) (d) 113. very few people engaged in it. price equals marginal cost. Which of the following statements about price and marginal cost in competitive and monopolized markets is true? (a). price exceeds marginal cost. private commercial bank. doubles. In competitive markets. rural regional bank. overdose of fertilizers. price exceeds marginal cost. In competitive markets. 407 . price exceeds marginal cost. PMGSY was launched to: (a) provide house to the rural poor. (c). average revenue. 112. in monopolized markets. less than doubles. price exceeds marginal cost. central bank. in monopolized markets.(a). cannot be determined because the price of the good may rise or fall. in monopolized markets. In competitive markets. price equals marginal cost. (d). In the long-run. some firms will exit the market if the price of the good offered for sale is less than: (a). in monopolized markets. over irrigation. average total cost. more than doubles. ICICI bank is a: 114. price equals marginal cost. (b). 110. (d). nationalized bank. 111. In competitive markets. (b). (b). marginal cost. (c).

disguised unemployment. According to the latest available data. If 9 people are unemployed and 411 people are in the work force. seasonal unemployment.3 119. there are around_________broadband subscribers in India. (a) (b) (c) 7. provide road connectivity through good all weather roads to unconnected villages.2 9. (a) (b) (c) (d) National Adult education National Technological National Senior Citizen National Literacy 118.2005).5 lakh 177 lakh 127 lakh 408 . (b). frictional unemployment.5 1. 115. If 4 farmers can do a field job which is being done by 6 farmers. this means there is: 116. food security to the urban poor. there are ___________malaria cases per million. (a) (b) (c) (d) 3. voluntary unemployment.84 20.(b) (c) (d) (a). (c). According to the latest data (Nov. then people in labour force are: (a) (b) (c) (d) 402 411 9 420 PART II 117. For adult education ____________________mission was launched in 1998 in India. (d). none of the above.

GNP at market price minus _________________is equal to GDP at market price. TRAI is the regulatory authority for __________ in India. 1%. 124. 3%. 125. 67th 23rd 100th 17th depreciation. The FRBM Act aims at reducing gross fiscal deficit by _________% per annum. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) 1951 1997 1991 2001 railways telecom banking secondary market 2%. 0. 123. The rate of inflation was lowest in _________________. In terms of overseas shipping tonnage. the practice of RBI lending to the government through ad hoc treasury bills was given up.(d) (a) (b) (c) (d) 5 lakh fifties sixties seventies eighties 120. India ranks________. 121. 409 . direct taxes subsidies net income from abroad 122. In the year __________.5%.

128. rigid neutral. conditional hypothetical. 129. Excise duties are levied on ______________________. About 98 percent of the sick units in India are ___________units. For ______________goods increase in income leads to increase in demand 131. Micro Macro Developmental Welfare Abnormal Normal Inferior Superior hypothetical. Inductive method is ____ based on the observation of particular facts. 132. Points outside the production possibilities curve are ____________________. inefficient.126. not attainable with the existing resources and technology. 130. . flexible never 410 127. suggest that the country’s factors are underemployed. Economic laws are essentially _______ and ________. unconditional neutral. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) small big banking trading incomes of the individual production of goods export and import of goods incomes of the corporate attainable with the existing technology. Price theory is an important constituent of _____ Economics.

D3. the initial equilibrium is at the intersection of S1 and D1.(b) (c) (d) seldomly alternatively always PART III Questions 133 to 137 are based on the demand and supply diagrams in Figure 1. The new equilibrium if there is rapid economic growth but cost of labour producing Perk also rises: (a) Point 3. the initial equilibrium is at the intersection of S1 and D1. If Figure 1 represents the market for Perk (chocolates). S1 and D1 are the original demand and supply curves. S2 and S3 are possible new demand and supply curves. 411 . Starting from initial equilibrium point (1) what point on the graph is most likely to result from each change? 133. 134. In Figure 1 (which represents the market for Perk (chocolates). The new equilibrium if there is an increase in the price of Dairy milk (chocolates) will be: (a) (b) (c) (d) Point 3 Point 5 Point 4 Point 2. D2.

The new equilibrium will be: (a) (b) (c) (d) Point 2. What is the average total cost in producing 20 units. Point 6. In Figure 1(which represents the market for Perk). Assuming that there is a new technology for producing Perk. Point 9. In Figure 1(which represents the market for Perk).500 & Total fixed cost is Rs. Point 6. 137. the new equilibrium: (a) (b) (c) (d) Point 8 Point 7. the initial equilibrium is at the intersection of S1 and D1.1000. Point 9. the initial equilibrium is at the intersection of S1 and D1. PART IV 138. Point 2. For producing 100 units Total variable cost is Rs. 2/-? (a) (b) (c) (d) 250 260 258 252 139. 135.Compute Average Cost. the initial equilibrium is at the intersection of S1 and D1.(b) (c) (d) Point 9. Point 3. 136. The new equilibrium if there is a health scare about the effect chocolates may have is: (a) (b) (c) (d) Point 2. Point 6.5000 and variable cost is Rs. Point 3. Point 3. if fixed cost is Rs. In Figure 1(which represents the market for Perk). Assume that there is an increase in the productivity and at the same time the price of 5 star(chocolates) falls. Point 6. (a) 10 412 .

(b) (c) (d) 15 5 20 Read the following data and answer questions 140-143. From the above data. (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) 6300 2900 4900 5300 7600 6900 9900 8700 9900 11500 12600 12900 15500 15600 12900 Rs. From the above data compute Production cost.3000 Rs.1400 Rs.2500 Rs. 413 .2000 Rs.2700 Rs.1500 Rs. 141. Following are the cost components: Direct material Indirect material Indirect labour Direct labour Management expense Promotional expense Indirect expense Direct expense 140.1500 Rs. compute cost of sales. From the above data.1000. From the above data compute Prime cost. 142. compute Cost of goods sold. 143.

10 and the original quantity demanded was 10 units? (a) (b) (c) (d) 15 units 20 units 8 units 12 units 148.833 1.833 147.12 and correspondingly demand changes from 6 units to 4 units? (a) (b) (c) (d) 0. Compute national income when population is 3 cr and per capita income is 2000 146. What is the price elasticity of demand when. price changes from Rs.2 1. What is the original price of a commodity when price elasticity is 0. 15 Rs. 10? (a) (b) (c) (d) Rs. 20 Rs. 18 Rs.6 2.71 and demand changes from 20 units to 15 units and the new price is Rs.15 to Rs. 8 414 . then compute profit? 145. sales are Rs. What is the new quantity demanded when price elasticity is 1 and price changes from Rs.10 to Rs.(d) (a) (b) (c) (d) (a) (b) (c) (d) 14800 1000 1200 900 800 6000 cr 2000 cr 3000 cr 10000 cr 144. If in the above case.16500.

3000. 1500. Table 3 Number of products 0 1 2 3 4 5 6 7 8 9 (a) (b) (c) (d) (a) (b) (c) (d) 3000. 1000. 1200. What is marginal utility when consumption increases from 8 units to 9 units? 415 . What is marginal utility when consumption increases from 4 units to 5 units? 150. Total utility 0 1800 3400 4800 6000 7000 7800 8400 8800 9000 Marginal utility - 149. 200. 2000. 1500.Read the following table and answer question number 149 -150.

25 mark for each wrong answer. 3rd quadrant. The point of intersection between the lines 3x+4y=7 and 4x–y=3 lie in the 153. The correlation is said to be positive (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) When the values of two variables move in the same direction. (iii) PART I 151. None of these. The result of ODI matches between India and Pakistan follows 416 . What is the probability of getting at least two tails? 155.25 mark for each wrong answer. When the values of two variables move in the opposite direction. which have answers as numerical value and carry + 1 mark each for correct answer and – 0.SECTION – D : QUANTITATIVE APTITUDE(50 MARKS) (i) (ii) Questions 151 to 160 have only one correct answer and carry + 1 mark each for correct answer and – 0. 2nd quadrant. P’ is φ Sample Space. Questions 161 to 170 are the fill in the blank based questions having four alternate answers and carry + 1 mark each for correct answer and – 0. Three coins are tossed. 4th quadrant. Questions 171 to 200 are numerical based questions. If P is a set of natural number then P 154.25 mark for each wrong answer. P’)’ 152. 1st quadrant. When the values of two variable would not change. 0 (P 1/2 1/3 1/4 None of these.

Origin.7 0. If A and B are mutually exclusive events and P(A) = 0. Normal distribution. S.3 and P(B) = 0.4. Moderate. find P(A’).D. If in a binomial distribution mean = 20. The difference between sample S. 80 100 90 None of these. Both origin and scale.6 None of these. Coefficient of determination is defined as 159. is negligible if the sample size is (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) (a) (b) (c) (d) Small. (b) or (c).3 0. 158. None of these. = 4 then n is equal to 157. 417 . r3 1–r2 1+r2 r2 Scale. Regression coefficient is independent of the change of 160. and the estimate of population S.(a) (b) (c) (d) (a) (b) (c) (d) Binomial distribution. 0. 156.D. Sufficiently large. Poisson distribution. Neither origin nor scale.D.