MODEL

TEST
PAPERS
Common Proficiency Test (CPT)
Volume - II

Board of Studies
The Institute of Chartered Accountants of India
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  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 number of objective type questions in the study materials
which students should practice. To facilitate preparation of
the students, a booklet on Model Test Papers (Volume-I) was
published in October, 2006 , and a Self-assessment CD is also
provided.
In addition, this booklet on Model Test Papers (Volume-II) is
published to strengthen the existing question bank provided
to the students. It is to further state that the Board of Studies
will shortly release another CD using which the CPT students
will be able to test their preparation subject-wise and chapter-
wise. 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

C
Mercantile Laws 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. We are confident that students
will be able to evaluate their performance by this process.
The Board acknowledge contribution of the faculty members
of the Board Studies, namely, Mrs. Prem J. Bhutani, Deputy
Director, CA. Seema Gupta, Assistant Director, CA. Shilpa
Agrawal, Executive Officer, CA. Vikas Kumar, Executive
Officer, CA. Ruchika Sabharwal, Executive Officer, Professor
T. Mutthu Kumar, Assistant Director, Ms. Srishti Gupta,
Management Trainee, Ms. Ginni Aggarwal, Management
Trainee in the preparation of these Model Test Papers. The
Board also acknowledge the contributions made by Mr. P.N.
Kapur, Retired Vice-Principal, B.N.S.D Inter College, Kanpur
who developed question bank of Accounting, Mr. R.K. Gupta,
Company Secretary, Kanpur and Dr. G.K. Pandey, Professor
D.A.V. Degree College who developed question bank of
Mercantile Laws, Dr. O.P. Shukla, Professor Arma Pur Degree
College, Kanpur, Dr. G.J. Srivastava, Professor D.A.V. Degree
College, Kanpur and Dr. Chamma Shukla, Teacher, Virendra
Swaroop Inter College, Kanpur who developed question bank
of Economics and CA. Atul Mittal, Kanpur and Mr. G.P.
Bhargava, Retired Principal, P.P.N. Degree College who
developed question bank of Quantitative Aptitude.

Director of Studies

D
 The Institute of Chartered Accountants of India
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT/VOLUME - 2

CONTENTS

S. No. Test Paper Denomination Page No.

1. Model Test Paper – BOS/CPT-1/2007........................................................... 01 – 28

2. Model Test Paper – BOS/CPT-2/2007........................................................... 29 – 54

3. Model Test Paper – BOS/CPT-3/2007........................................................... 55 – 81

4. Model Test Paper – BOS/CPT-4/2007......................................................... 83 – 108

5. Model Test Paper – BOS/CPT-5/2007....................................................... 109 – 134

6. Model Test Paper – BOS/CPT-6/2007....................................................... 135 – 161

7. Model Test Paper – BOS/CPT-7/2007....................................................... 163 – 189

8. Model Test Paper – BOS/CPT-8/2007....................................................... 191 – 217

9. Model Test Paper – BOS/CPT-9/2007....................................................... 219 – 245

10. Model Test Paper – BOS/CPT-10/2007..................................................... 247 – 273

11 Answers ...................................................................................................... 275 – 294

12 Suggested Answers / Hints of Quantitative Aptitude................................ 295 – 443

13 Recent Publications of the Board of Studies ............................................. 444 - 449

E
 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 1 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. Which of the following is/ are current asset?

(a) Stock (b) Bill receivable
(c) Prepaid Expenses (d) All of the above
2. Which of the following sets of expense are the direct expenses of business.
(a) Wages, Carriage Inward, Octroi
(b) Postage, Wages, Carriage Inward
(c) Purchase, Wages, Coal Expenses
(d) Both (a) and (c)
3. Suspense Account in the Trial Balance will be entered in the :
(a) Manufacturing A/c (b) Balance Sheet
(c) Trading A/c (d) Profit and Loss A/c
4. The accounting equation is based on
(a) Dual aspect (b) Business Entity
(c) Going concern (d) All of the above
5. Different accounting policies can be adopted in the following area/areas
(a) Valuation of inventories (b) Calculation of depreciation
(c) Valuation of investments (d) All of the above

Common Proficiency Test (CPT) Volume - II 1

MODEL TEST PAPER - 1

6. Journal is a book of
(a) Original Entry (b) All cash transactions
(c) Secondary Entry (d) All non-cash transactions
7. Normally, the following accounts are balanced
(a) Real A/c and Nominal A/c (b) Personal A/c and Real A/c
(c) Only Nominal A/c (d) All accounts
8. Opening and closing entries are recorded in :
(a) Journal Proper (b) Purchase Book
(c) Sales Book (d) Bill Receivable Book
9. Which of the following instruments is not a negotiable instrument
(a) Bearer Cheque (b) Promissory Note
(c) Crossed Cheque (d) Bills of Exchange
10. Bank Reconciliation statement is
(a) A part of the cash book
(b) A statement showing the causes of differences between the balance of cash book and
passbook.
(c) A part of financial statement
(d) None of the above
11. The Installation expenses for a new machinery will be debited to
(a) Cash A/c (b) Profit & Loss A/c
(c) Machinery A/c (d) Installation expenses A/c
12. When obligation is not probable or the amount expected to be paid to settle the liability
cannot be measured with sufficient reliability, it is called
(a) Contingent liability (b) Provision
(c) Secured Loan (d) None of the above
13. A Trial Balance contains the balances of
(a) Only real A/c (b) Real A/c and Nominal A/c
(c) Personal A/c (d) Both (b) and (c)
14. Error which affect only one account can be
(a) Error of omission (b) Error of posting
(c) Error of principle (d) None of the above
15. Valuing the stock in trade at net realisable value or cost price whichever is lower, is an
example of the convention
(a) Conservatism (b) Consistency
(c) Dual aspect (d) All of the above

2 Common Proficiency Test (CPT) Volume - II

16. In case goods are manufactured and segregated for specified consumers the best method for
valuation of inventory would be
(a) FIFO (b) Simple average
(c) Base stock (d) Specific identification method
17. Fixed assets are
(a) Fictitious assets
(b) Kept in the business for use over a long period
(c) Meant for resale
(d) Meant for conversion into cash as quickly as possible
18. Income earned but not received is shown in
(a) Asset side of the Balance Sheet
(b) Liability of the Balance Sheet
(c) Profit and Loss A/c (Dr. balance)
(d) None of the above
19. Overriding commission is generally calculated on
(a) Cash sale only
(b) Total sales exceeding invoice value/cost
(c) Credit sales
(d) None of the above
20. Claim of the retiring partner is payable in the following form
(a) Fully in cash
(b) Fully transferred to loan A/c to be paid on with some interest on it.
(c) Partly in cash and partly as loan repayment with agreed interest
(d) Any of the above
21. As per Section 12 of Negotiable Instruments Act, which of the following is not a foreign bill?
(a) A bill drawn outside India and made payable outside India.
(b) A bill drawn outside India and made payable in India.
(c) A bill drawn outside India on a person resident in India.
(d) A bill drawn in India on a person resident outside India and made payable outside India.
22. Kishan, the acceptor of the bill has to honour a bill on 31st March, 2006. Due to financial
crisis, he is unable to pay the amount of bill of Rs. 40,000. Therefore he approaches Karan,
the drawer of that bill on 20th March, 2006 for extension of the bill for further 2 months.
Karan agrees to extend the credit period by drawing a new bill for Rs. 42,000 together with
interest of Rs. 2,000 in cash. In this case old bill of Rs. 40,000 will be considered as
(a) Dishonoured (b) Retired
(c) Cancelled (d) Discounted

Common Proficiency Test (CPT) Volume - II 3

MODEL TEST PAPER - 1

23. Goodwill of the firm is valued at three year’s purchase of the average profit of the last five
years. The profits are as under
2006 16,0000 (Profit)
2005 20,000 (Loss)
2004 1,20,000 (Profit)
2003 1,00,000 (Profit)
2002 80,000 (Profit)
Goodwill amount will be

(a) Rs. 2,76,000 (b) Rs. 2,64,000

(c) Rs. 2,60,000 (d) Rs. 2,28,000
24. Rama Ltd. forfeited 800 shares of Anil of Rs. 10 each fully called up for non-payment of final
call of Rs. 2 per share and reissued to Ankit as fully paid up for Rs. 10 per share. Amount
transferred to capital reserve will be
(a) Rs.3,200 (b) Rs.4,600
(c) Rs.6,400 (d) Rs.8,000
25. Dabur Ltd. forfeited 400 shares of Rs. 10 each fully called up, on which the holder has paid
only application money of Rs. 4 per share. Out of these 250 shares were reissued at Rs. 12
per share fully paid up. Capital reserve will be credited
(a) Rs. 1,000 (b) Rs. 1,600
(c) Rs. 4,800 (d) Rs. 3,000
26. On 1 Jan. 2007 Ankur of Delhi consigned 200 cases, cost price Rs. 3,750 at proforma invoice
of 25% profit on sales to his agent Mani of Manipur. Balance of Goods Sent on Consignment
A/c transferred to General Trading A/c will be
(a) Rs. 5,000 (b) Rs. 3,750
(c) Rs. 8,000 (d) None of the above
27. A manager gets 5% commission on net profit after charging such commission, gross profit
Rs. 58,000 and expenses of indirect nature other than manager’s commission are Rs. 16,000.
Commission amount will be
(a) Rs. 2,900 (b) Rs. 2,000
(c) Rs. 1,500 (d) Rs. 2,200

4 Common Proficiency Test (CPT) Volume - II

 28. Particulars Amount Particulars Amount
Salaries 4,000 Interest on investment received 1,200
Interest on loan 5,000 Freight inward 2,000
Bad debts 1,200
Wages 1,000
Gross Profit 25,000
Net Profit will be
(a) Rs. 15,300 (b) Rs. 13,000
(c) Rs. 17,200 (d) Rs. 16,000
29. (i) Balance as per cash book on 31.03.2005 Rs. 10,000
(ii) Cheques sent to bank but not entered in cash book Rs. 2,200
(iii) Cheques issued and presented on 7th April Rs. 3,000
(iv) Bill payable by Bank not entered in the cash book Rs. 1,600
Balance on as per passbook will be
(a) Rs. 9,200 (b) Rs. 13,600
(c) Rs. 10,800 (d) Rs. 6,400
30. Goods purchased Rs. 100000; sales Rs. 90000. If margin 20% on sales then closing stock will
be
(a) Rs. 25,000 (b) Rs. 35,000
(c) Rs. 28,000 (d) Rs. 5,600
31. The total of wages for the month of Jan, 2006 amounting Rs. 6000 was not posted. Rectifying
entry for the same will be
(a) Suspense A/c Dr. 6000 ; To Labour A/c 6000
(b) Wages A/c Dr. 6000 ; To Suspense A/c 6000
(c) Wages A/c Dr. 6000 ; To Cash A/c 6000
(d) None of the above
32. Anu and Anubhav are partners sharing profits in the ratio 5 : 3, they admitted Anup giving
him 3/10th share of profits. if Anup acquires 1/5th share from Anu and 1/10th share from
Anubhav, new profit sharing ratio will be
(a) 5:6:3 (b) 18 : 24 : 38
(c) 17 : 11 : 12 (d) 4:3:2
33. Mr. Om sold goods worth Rs. 2,50,000 to Mr. Jai. Mr. Jai accepted a bill on 1.11.06, payable
after 2 months. Mr. Om discounted this bill @ 18% p.a. on 15.11.06. On the due date Mr. Jai
failed to discharge the bill. Later Mr. Jai become insolvent and 50 paise is recovered from
Mr. Jai’s estate. How much amount of bad debts will be recorded in the books of Om.
(a) Rs. 1,25,000 (b) Rs. 1,36,500
(c) Rs. 94,370 (d) Rs. 1,14,000

Common Proficiency Test (CPT) Volume - II 5

MODEL TEST PAPER - 1

34. A, B and C are the partners sharing profits in the ratio 4 : 3 : 2. C died on 30.06.2005 and
profits for the accounting year 2004-05 were Rs. 72000. How much share in profits for the
period 1st April, 2005 to 30th June 2005 will credited to C’s account
(a) Rs. 4,000 (b) Rs. 16,000
(c) Rs. 18,000 (d) Rs. 12,000
35. A bill is drawn on 12th June for 2 months. The due date of the bill will be
(a) 12th August (b) 13th August
(c) 14th August (d) 15th August
36. Goods costing Rs. 2,40,000 were sent on consignment basis. Goods are invoiced at cost +
25%. The Invoice price and loading will be
(a) Rs. 2,40,000 and Rs. 60,000 (b) Rs. 3,00,000 and Rs. 10,000
(c) Rs. 4,00,000 and Rs. 1,60,000 (d) Rs. 3,00,000 and Rs. 60,000
37. Which of these is not a part of double entry system?
(a) Memorandum Joint Venture A/c (b) Joint Venture A/c
(c) Joint Bank A/c (d) Co-venturer A/c
38. Wright Ltd. issued 40000, 8% debentures of Rs. 10 each at par which are redeemable after
8 years at a premium of 20%. The amount of loss on redemption of debentures to be written
off every year will be
(a) Rs. 60,000 (b) Rs. 50,000
(c) Rs. 10,000 (d) Rs. 8,000
39. Chetan Ltd. recorded the following information as on March 31, 2004
Stock (1-4-03) Rs. 40000
Purchases Rs. 80000
Sales Rs. 100000
It is noticed that goods worth Rs. 30,000 were destroy due to fire against this, the insurance company
accepted a claim of Rs. 14000.
The company sells goods at cost 33%. The value of closing inventory, after taking into account the
above transaction is

(a) Rs. 75,000 (b) Rs. 15,000

(c) Rs. 25,000 (d) Rs. NIL
40. Riya and Piya are partners in a firm. During the year 2006, Riya withdraw Rs. 1000 p.m.
and Piya withdraw Rs. 500 p.m. on the first day of each month for personal use. Interest on
drawing is to be charged @ 10% p.a. Total interest on drawings will be
(a) Rs. 975 (b) Rs. 650
(c) Rs. 900 (d) Rs. 325

6 Common Proficiency Test (CPT) Volume - II

41. Mohan drew a bill on Gopal for Rs. 100000 for 3 months it proceeds are to be shared equally.
Mohan got the bill discounted at 12% p.a. and remits required proceeds to Gopal. The
amount of such remittance will be
(a) Rs. 24,250 (b) Rs. 48,500
(c) Rs. 50,000 (d) Rs. 97,000
42. R and S are partners sharing profits and losses equally. They admitted A for 1/3 share in the
firm. The new profits sharing ratio will be
(a) 3:2:1 (b) 1:1:1
(c) 2:2:1 (d) Cannot be calculated
43. Gattu and Bittu entered into a joint venture where Gattu bought goods of the value Rs.
100000 and consigned them to Bittu to be sold by them on joint venture, profits being divided
equally. Gattu paid Rs. 10000 for freight and insurance. Gattu draws a bill on Bittu for Rs.
1,00,000. Gattu discounted at Rs. 95,000. Bittu sold the goods for Rs. 1,50,000. Commission
payable to Bittu Rs. 5,000. The amount to be remitted by Bittu to Gattu will be
(a) Rs. 12,5,000 (b) Rs. 1,35,000
(c) Rs. 1,30,000 (d) Rs. 1,40,000
44. 10000 litres of oil were consigned to a wholesaler the cost being Rs. 100 per litre by incurring
freight Rs.8,000. 10% of loss of oil unavoidable. 8,000 litres were sold by the consignee. The
remaining stock of 1000 litres will be valued at
(a) Rs. 1,12,000 (b) Rs. 1,11,111
(c) Rs. 1,00,800 (d) Rs. 1,00,000.

45. Machinery costing Rs. 500000 was purchased on 1.4.2005. The installation charges amounting
Rs. 20000 were incurred. The depreciation at 10% per annum on straight the method for
the year ended 31st March, 2007 will be
(a) Rs. 5,00,000 (b) Rs. 50,000
(c) Rs. 52,000 (d) Rs. 45,000

46. Credit balance as per passbook on 31.3.2006 is Rs. 22000. Cheques deposited but not cleared
amount to Rs. 2000 and cheques issued but not presented of Rs. 8000. Balance as per cash
book should be
(a) Rs. 32,000 (b) Rs. 16,000
(c) Rs. 28,000 (d) Rs. 18,000

47. A Company forfeited 2,000 shares Rs. 10 each held by Mr. Mohan for non payment of
allotment money of Rs. 3 per share. The called-up value per share was Rs. 8. On forfeiture,
the amount debited to share capital will be
(a) Rs. 6,000 (b) Rs. 20,000
(c) Rs. 1,000 (d) Rs. 16,000

Common Proficiency Test (CPT) Volume - II 7

MODEL TEST PAPER - 1

48. Bill of Rs. 5000 accepted by Rajan was endorsed by Rohit to Raj on account of final settlement
of Rs. 5200. The benefit of Rs. 200 earned by Rohit was
(a) Credited to discount received account by Rs. 200
(b) Debited to discount allowed account by Rs. 200
(c) Credited to rebate account by Rs. 200
(d) None of the above
49. Ankur purchased goods costing Rs. 5000 at an invoice price, which is 50% above cost. On
invoice price he enjoyed 15% trade discount and Rs. 375 cash discount on cash payment of
goods in lump sum at the time of purchase. The purchase price to be recorded in the books
before cash discount will be
(a) Rs. 5,000 (b) Rs. 7,500
(c) Rs. 6,375 (d) Rs. 6,000
50. Kapoor Ltd. issued 750000, 12% debentures of Rs. 100 each at a premium of 10% payable
Rs. 40 on application and balance on allotment. Debentures are redeemable at par after 6
years. All money due on allotment was called up and received. The amount of premium will
be
(a) Rs. 3,00,00,000 (b) Rs. 75,00,000
(c) Rs. 2,25,00,000 (d) Rs. 7,50,00,000
51. Gopi Ltd. purchased land and building from Mohan Ltd. for a book value of
Rs. 200000. The consideration was paid by issue of 12% debentures of Rs. 100 each at a
discount of 20%. The debenture account is credited with
(a) Rs. 2,00,000 (b) Rs. 2,60,000
(c) Rs. 2,50,000 (d) Rs. 1,40,000
52. A company offers to the public 20000 shares for subscription. The company receives
application for 24000 shares. If the shares are allotted on pro-rata basis the application for
24,000 shares are to be allotted as
(a) 5 Shares for every 6 shares applied
(b) 4 Shares for every 5 shares applied
(c) 6 Shares for every 7 shares applied
(d) None of the above
53. Arjun and Bheem are partners in the firm sharing profits and losses in the ratio 1 : 1. They
have invested capital of Rs. 80,000 and Rs. 50,000 respectively. As per partnership deed,
they are entitled to interest on capital @ 2.5% p.a. before sharing the profits. During the
year firm earned a profit of Rs. 5000 before allowing interest. The net profit will be
apportioned as
(a) Rs. 900 to Arjun, Rs. 900 to Bheem
(b) Rs. 875 to Arjun, Rs. 875 to Bheem
(c) Rs. 785 to Arjun, Rs. 785 to Bheem
(d) Rs. 965 to Arjun, Rs. 965 to Bheem

8 Common Proficiency Test (CPT) Volume - II

54. Following figures have been taken from the trial balance of a trader
Gross Purchase Rs. 60,000 Gross Sales Rs. 1,00,000
Purchase Returns Rs. 5,000 Sales Returns Rs. 7,000
Duty Drawback Rs. 6,000 Sales Tax Rs. 12,000
The amount of G.P. will be

(a) Rs. 32,000 (b) Rs. 38,000

(c) Rs. 40,000 (d) Rs. 26,000
55. A debit note for Rs. 500 issued by Mr. Marshall to Mr. Fisher for goods returned by Mr.
Marshall is to be accounted for
(a) Bill receivable Book (b) Purchases Return Book
(c) Purchase Book (d) Journal Proper
56. A purchase of goods from Rahul amounting to Rs. 300 has been wrongly entered through
sales book, what will be the rectifying entry.
(a) Purchase A/c Dr. 300
To Sales A/c 300
(b) Sales A/c Dr. 300
To purchase A/c 300
(c) Rahul A/c Dr. 600
To purchase A/c 300
To sales A/c 300
(d) Purchases A/c Dr. 300
Sales A/c Dr. 300
To Rahul 600
57. Original Cost = Rs. 63000. Salvage value = 3000. Depreciation for 2nd year @ units of
production method, If units produced in 2nd year was 5000 and total estimated production
60000 units.
(a) Rs. 5,000 (b) Rs. 6,000
(c) Rs. 5,250 (d) Rs. 5400
58. When drawing up a B.R.S. If you start with a debit balance as per the Bank statement, the
unpresented cheques should be
(a) Not required to be adjusted (b) Subtracted
(c) Added (d) None of the above
59. Purchase of Building from Bank
(a) Decrease in total liabilities (b) Increase in total assets
(c) Decrease in total assets (d) No effect of total of assets.
60. Economic life of an enterprise is split into periodic interval as per
(a) Materiality (b) Going Concern
(c) Accrual (d) Conservation
Common Proficiency Test (CPT) Volume - II 9
MODEL TEST PAPER - 1

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. What section of Indian contract Act, 1872 applies to a contract?

(a) 2(b) (b) 2(d)
(c) 2(h) (d) 2(e)
62. Which of the following is correct?
(a) a promise is a contract
(b) a set of promises is a contract
(c) a proposal is a contract
(d) agreements enforceable by law is a contract
63. A promise is defined in section
(a) 2(b) (b) 2(d)
(c) 2(e) (d) 2(h)
64. Void agreements are
(a) Forbidden under law (b) Not forbidden under law
(c) Punishable (d) Legal agreements
65. Where two parties make identical offers to each other, in ignorance of each other’s offer, the
offers are known as
(a) Cross-offers (b) An agreements
(c) Contracts (d) Promises
66. In the case of specific offer, it can be accepted only
(a) by the person to whom it is made
(b) by third party
(c) by the stranger
(d) by legal heir
67. A voidable agreements agreement is enforceable by
(a) None of the parties
(b) Only one of the parties
(c) All the parties to the contract
(d) One or more but not by the other or others
68. An illegal agreement
(a) is void ab initio
(b) becomes void
(c) void abinitie as well as punishable
(d) voidable

10 Common Proficiency Test (CPT) Volume - II

69. A minor is a person who has not completed
(a) 20 years of age (b) 21 years of age
(c) 18 years of age (d) 19 years of age
70. A contingent contract is defined in section
(a) 32 (b) 31
(c) 33 (d) 35
71. Where a certain amount is deposited as securing for performance of a contract, it is called
(a) Earnest money (b) Cash money
(c) Hard money (d) All of these
72. Quantum merit means
(a) as much as is merited (b) as much as is credited
(c) as much as is performed (d) None of these
73. The law in India relating to claim for damages is contained in section
(a) 75 (b) 71
(c) 74 (d) 73
74. A contract of guarantee is defined in section
(a) 125 (b) 126
(c) 128 (d) 129
75. A contract made by mistake about same foreign law, is
(a) Void (b) Valid
(c) Voidable (d) Illegal
76. A partnership at will is one
(a) Duration not fixed
(b) Duration fixed
(c) Dissolved at any time
(d) Can be dissolved only at the happening of an event.
77. The unpaid seller has the right against the goods
(a) Rights of lien (b) Right of stoppage in transit
(c) Right of resale (d) all of these
78. Contract in which only one party has to perform his promise is known as
(a) Executed contract (b) Executory contract
(c) Unilateral contract (d) Bilateral contract

Common Proficiency Test (CPT) Volume - II 11

MODEL TEST PAPER - 1

79. When the performance of a contract becomes subsequently impossible or unlawful, the
contract becomes
(a) Illegal (b) Void
(c) Invalid (d) Voidable
80. Contract for the sale of future goods is _______.
(a) Sale (b) Agreement to sell
(c) Void (d) Auction sale
81. The Sale of Goods Act, 1930 deals with the _______.
(a) Movable goods only
(b) Immovable goods only
(c) Both immovable and movable goods
(d) Tangible goods only
82. A party agrees to pay five lakhs to another party if first party brings to earth a star from sky,
this is known as _______.
(a) Contingent contract (b) Quasi Contract
(c) Implied contract (d) Wagering contract
83. _______ does not affect the free consent of the parties.
(a) Fraud (b) Coercion
(c) incompetence (d) Undue influence
84. Consideration may be _______.
(a) Past (b) Present
(c) Future (d) All of these

85. When the consent of a party is obtained by fraud, the contract is____________.
(a) Valid (b) Voidable
(c) Illegal (d) Void
86. Registration means getting the partnership firm registered with _______.
(a) Registrar of firms
(b) Registrar of co-operative society
(c) Registrar of companies
(d) All of these
87. An agreement to share earnings of a smuggling business is _______.
(a) Valid (b) Void
(c) Voidable (d) Contingent

12 Common Proficiency Test (CPT) Volume - II

88. There can be a stranger to a _______.
(a) Contract (b) Consideration
(c) Agreement (d) Promise

89. The authority of a partner to bind the firm is known as _________.

(a) Implied authority (b) Express authority
(c) Contractual authority (d) None of the above

90. An actionable claim can always be _______.

(a) Assigned (b) Adjusted
(c) Noted (d) All of these

91. Reciprocal promise means _______.

(a) A promise in return for a promise
(b) A promise in return for a agreement
(c) A promise in return for a contract
(d) Accepted promise

92. When one of the parties to the contract has performed his part of the promise, it is known as
_______.
(a) Consideration (b) Past consideration
(c) Future consideration (d) Executory consideration

93. An agreement made without consideration is _______.

(a) Valid (b) Void
(c) Voidable (d) Illegal

94. Acceptance in ignorance of the offer is _______.

(a) Valid (b) Invalid
(c) Void (d) Voidable

95. An agreement to commit a crime is _______.

(a) Valid (b) Void
(c) Voidable (d) Unenforceable
96. Communication of proposal is complete when it comes to the knowledge of _______.
(a) The proposer (b) The person to whom it is made
(c) The Court (d) (a) or (b)

Common Proficiency Test (CPT) Volume - II 13

MODEL TEST PAPER - 1

97. An offer made to a specific person is known as_________.

(a) Special offer (b) Separate offer
(c) Specific offer (d) Standing offer
98. Advertising agent invites a tender it is known as _______.
(a) An offer (b) A counter offer
(c) An agreement (d) An invitation to offer
99. A buys an article thinking it is worth Rs. 10,000 while it is actually worth Rs. 5,000 only.
Decide what will be the remedy to A.
(a) The agreement can be avoided on the ground of mistake
(b) The agreement cannot be avoid on the ground of mistake
(c) A can sue for return taking back Rs. 5,000
(d) A can sue for recovery of Rs. 2,000 only
100. A agrees to buy from ‘B’ a certain horse. It turns out that the horse was dead at the time of
the bargain, though neither party was aware of the fact. Decide.
(a) The agreement is void
(b) The agreement is valid
(c) A can sue for purchasing new horse in place of dead horse
(d) None of these

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101. Monetary Policy refers to:

(a) Public Revenue and Public Expenditure Policy
(b) Policy to control money supply
(c) M1 and M2
(d) Policy linked to banking

102. HYVP was restricted to the following crops:

(a) Wheat, Rice, Bajra, Jawar and Maize

(b) Wheat, Sugar, Bajra, Jawar and Maize
(c) Wheat, milk, Bajra, Jawar and maize
(d) Wheat, Banana, Bajra, Jawar and Maize

103. The Full form of ICICI is :

(a) Investment credit and Industrial Corporation of India

(b) Indian credit and Investment Corporation of India
(c) Industrial credit and Investment Corporation of India
(d) International credit and Investment Corporation of India

14 Common Proficiency Test (CPT) Volume - II

104. In the theory of demographic transition in the first stage :

(a) Both birth rate and death rate are high

(b) Both birth rate and death rate are low
(c) Birth rate is high and death rate is low
(d) Birth rate is low and death rate is high

105. Narrow money refers (as per latest RBI Working Group):

(a) Currency + Demand Deposits + other Deposits with RBI

(b) Currency + Demand Deposits + Post office saving deposits
(c) Currency + Demand Deposits + Money at call
(d) None of the above

106. In the case of a straight line demand curve meeting the two axes, the price elasticity of
demand at y-axis of the line would be equal to

(a) 1 (b) infinity

(c) 3 (d) 1.25

107. A firm under perfect competition will be making minimum losses (in the short run) at a
point where:

(a) MC > MR (b) MR > MC

(c) MC = MR (d) AC = AR

108. In order to control Inflation in India RBI may:

(a) Increase CRR
(b) Decrease CRR
(c) Increase buying of Government Securities
(d) None of the above
109. When the consumer is in equilibrium his price line is _____________ to indifference curve
(a) Parallel (b) At right angle
(c) Diagonally opposite (d) Tangent
110. Which of the following is not the feature of Perfect Competition?
(a) Large number of buyers and sellers
(b) Small number of buyers and sellers
(c) Free Entry and Exit
(d) Good is Homogeneous

Common Proficiency Test (CPT) Volume - II 15

MODEL TEST PAPER - 1

111. In the long run under which competition a firm may earn super normal profits?
(a) Monopolistic competition (b) Perfect competition
(c) Oligopoly (d) Monopoly
112. Nationalization means:
(a) Selling of government stake to private sector
(b) Selling of government companies to private sector
(c) Government purchasing 26% shares in private companies
(d) Taking of full control and management from Private Sector
by the government
113. In April 2007, Bank rate was ——— percent
(a) 6 (b) 7
(c) 5 (d) 8
114. In April 2007, the SLR was —— percent
(a) 5% (b) 15%
(c) 25% (d) 20%
115. Economics is a Science which deals with wealth was referred by :
(a) Alfred Marshal (b) J. B. Say
(c) Adam Smith (d) A.C. Pigou
116. Average fixed cost can not be:
(a) Less than one (b) One
(c) Zero (d) Greater than
117. The number of Member Countries of WTO is :
(a) 184 (b) 149
(c) 150 (d) 177
118. If as a result of 10% increase in price, the quantity supplied does not change at all, it implies
that the elasticity of Supply is :
(a) Zero
(b) Infinite
(c) Equal to one
(d) Greater than Zero but less than are
119. The Law of variable proportions examines the Production function with:
(a) One factor variable and only one factor fixed
(b) One factor variable keeping quantities of other factors fixed
(c) All factors variable
(d) None of the above

16 Common Proficiency Test (CPT) Volume - II

120. In Law of negative returns (Third stage of Law of variable proportions):
(a) Total Product declines, M P is positive
(b) Total Product declines, M P is Zero
(c) Total Product declines, M P is negative
(d) Total Product in constant, M P is constant
121. If GDP is 20% higher than last year and the rate of inflation is 9%, then production in the
economy has grown by ———.
(a) 8% (b) 11%
(c) 20% (d) 9%
122. Indifference Curve analysis is based on
(a) Ordinal utility (b) Cardinal utility
(c) Marginal utility (d) None of the above
123. The demand curve is also known as:
(a) Marginal Revenue curve (b) Marginal utility curve
(c) Average Revenue (d) Average utility curve
124. Supply of a good and its price have
(a) Negative relationship (b) Inverse relationship
(c) No relationship (d) Positive relationship
125. MC curve cuts AVC Curve
(a) At its falling point (b) At its minimum point
(c) At its rising point (d) At different points
126. TRYSYM stands for
(a) Training Regional Youth for Self Employment
(b) Training Raipur Youth for Self Employment
(c) Training Rural Youth for Self Employment
(d) None of the above
127. PNB, SBI, Canara Bank are examples of:
(a) Semi Private banks (b) Public Sector banks
(c) Private Sector banks (d) Semi Public Sector banks
128. Margin requirement for commercial bank refers to
(a) Profit margins
(b) CRR and SLR
(c) CRR
(d) Difference between amount of Security to be given by the borrowers to the bank and the
amount of Loan.

Common Proficiency Test (CPT) Volume - II 17

MODEL TEST PAPER - 1

129. Accounting profit is equal to:

(a) Total Revenue – Total variable cost
(b) Total Revenue – Total direct cost
(c) Total Revenue – Total cost
(d) Total Revenue – Total Explicit cost and Total Implicit Cost.
130. RBI has ——— .
(a) Very few branches (b) One branch in each state of India
(c) No branches (d) None of the above
131. If firm’s average cost curve is falling then marginal curve must be :
(a) Falling (b) Rising
(c) below average cost curve (d) None of the above
132. Fiscal Policy in India is given by:
(a) RBI (b) Ministry of Finance
(c) Prime Minister (d) None of the above
133. Which is not the aim of National Policy on Education?
(a) Universal access and enrolment
(b) Universal retention of children upto 14 years of age
(c) A Substantial improvement in the quality of education
(d) None of the above
134. The goal of National Policy on Education is to make an expenditure of ——— of GDP.
(a) 5% (b) 7%
(c) 6% (d) 8%
135. Gross Enrolment Ratio shows the proportion of children in elementary school in the age
group of:
(a) 6-10 (b) 6-14
(c) 6-8 (d) 4-10
136. VSAT stands far
(a) Very Small Aperture Terminals
(b) Various Small Aperture Terminals
(c) Very Small Application Terminals
(d) Valuable Small Aperture Terminals
137. On an average, one post office serves:
(a) 18 Sq. Km area (b) 21 Sq. Km area
(c) 31 Sq. Km area (d) 51 Sq. Km area

18 Common Proficiency Test (CPT) Volume - II

138. Airport Authority of India manages ——— airports
(a) 82 (b) 93
(c) 92 (d) 103
139. India has ——— % of the world area
(a) 1.2 (b) 2.4
(c) 16.7 (d) 7

140. What is the approximate life expectancy of the people living in India?
(a) 58 (b) 60
(c) 65 (d) 50

141. Which of the following states has the highest percentage of literacy?
(a) Delhi (b) Kerela
(c) Karnataka (d) Tamil Nadu

142. India’s share in world income is

(a) 5% (b) 16.7%
(c) 1.2% (d) 2.4%

143. Every ——— poor person in the world is an Indian

(a) Sixth (b) Third
(c) Fifth (d) Seventh

144. Density of Population refer to

(a) Number of person per square kilometer
(b) Number of person per square kilometer of land excluding forest and river
(c) Number of person per square kilometer of land excluding rivers and seas in the country
(d) Number of persons per km of land

145. India’s present density of Population is

(a) 344 persons per square kilometer
(b) 324 persons per square kilometer
(c) 390 persons per square kilometer
(d) 440 persons per square kilometer

146. Ginni Coefficient is often used to measure poverty in:

(a) Absolute Terms (b) Relative Terms
(c) Both (a) and (b) (d) None of the above

Common Proficiency Test (CPT) Volume - II 19

MODEL TEST PAPER - 1

147. Presently how many villages are not electrified?

(a) 25% (b) 5%
(c) 10% (d) 15%
148. The ———— is defined as the number of persons in the labor force per 1000 persons
(a) WPR (b) LFPR
(c) CWS (d) CDS
149. An expansion in the supply of a good is caused by a:
(a) Rise in the price of good
(b) Fall in the prices of other goods.
(c) Fall in the prices of factors of production
(d) All of the above
150. Which of the following has the lowest price elasticity of supply?
(a) Luxury (b) Necessities
(c) Salt (d) Perishable goods
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

ο
⎛ 1 ⎞ 1 4
⎟ + (64) + (–32)
2 5
151. The value of ⎜
⎝ 64 ⎠
1 3
(a) 17 (b) 17
8 8
7
(c) 11 (d) None of these
8

1 1
152. If a2 + b2 = 45 & ab = 18, then + is
a b
1 2
(a) (b)
3 3
1
(c) (d) None of these
2

20 Common Proficiency Test (CPT) Volume - II

 1 –1 –1
a2 + a 2 1 – a 2
153. The value of +
1–a 1+ a

a a –1
(a) (b)
a –1 2
2 2
(c) (d)
a –1 1– a

154. If log e2 , log 625

x
16
= log10 , log10
e , then x

(a) 7 (b) 5
(c) 8 (d) None of these

2 2
155. The highest score in an innings was of the total score and the next highest was of the
9 9
remainder. These score differed by 8 runs. What was the total score in the innings?
(a) 162 (b) 152
(c) 142 (d) 1132
156. The third proportional to 15 and 20 is

80
(a) (b) 80
3
80
(c) (d) None of these
7
157. The mean proportional between 9 and 25 is –
(a) 16 (b) 10
(c) 15 (d) None of these
158. The ratio of the number of boys and girls in a school is 2:5. If there are 280 students in the
school, find the number of girls in the school.
(a) 200 (b) 250
(c) 150 (d) None of these
159. A bag contains an equal number of one rupee, 50 paise and 25 paise coins respectively. If the
total value is Rs. 35, how many coins of each type are there.
(a) 30 (b) 20
(c) 25 (d) None of these

Common Proficiency Test (CPT) Volume - II 21

MODEL TEST PAPER - 1

160. One-third of a number is greater than one-fourth of its successor by 1. Find the number.
(a) 51 (b) 21
(c) 15 (d) None of these

⎛1⎞
161. The value of log3 ⎜ ⎟ is
⎝ 81 ⎠

(a) 4 (b) –4
(c) 2 (d) –2

162. The value of log 2

⎛ 1 ⎞ is
2 ⎜ ⎟
⎝ 256 ⎠

16
(a) (b) –4
3
–16
(c) 3 (d)
3

163. If logx 3 2 = 1 ; then value of x is

15
(a) 8 (b) 32
(c) 16 (d) 64
164. If log4 [log3(log2x)] = 0; then value of x is
(a) 16 (b) 32
(c) 4 (d) None of these
165. The value of logx(0.00001) = –5, then x is
(a) 10 (b) 102
(c) 100 (d) None of these
166. 1230 baskets of mangoes were loaded in three trucks. When unloaded, it was found that 5,
10 and 15 baskets were rotten in the trucks respectively, but the remaining baskets were in
the ratio of 3:4:5. How many baskets were loaded initially in each truck?
(a) 575 (b) 515
(c) 565 (d) None of these
167. Find the ratio x : y : z from 2x + 3y – 5z = 0 and –3x + 2y + 7z = 0
(a) 10:12:13 (b) 30:2:12
(c) 31:1:13 (d) None of these

22 Common Proficiency Test (CPT) Volume - II

168. The value of loga n
A

1
(a) logaA (b) a log1/n A
n
⎛1⎞
(c) A loga ⎜ ⎟ (d) None of these
⎝n⎠

log10 4
169. The value of
log10 8

1 4
(a) (b)
3 3
2
(c) (d) None of these
3
170. If log10 12.45 = 1.0952 and log10 3.79 = 0.5786, Find the value of log10 124.5 + log10379
(a) 5.6738 (b) 4.6738
(c) 6.6738 (d) None of these
171. Find the number of even numbers greater than 100 that can be formed with the digits 0, 1, 2,
3?
(a) 10 (b) 15
(c) 20 (d) None of these
172. How many numbers between 100 and 1000 can be formed with the digits. 2, 3, 4, 0, 8, 9?
(a) 100 (b) 105
(c) 200 (d) None of these
173. In how many ways can the letters of the word “ALGEBRA” be arranged without changing
the relative order of the vowels?
(a) 82 (b) 70
(c) 72 (d) None of these
174. How many words can be formed with the letters of the word “UNIVERSITY”, the vowels
always remaining together?
(a) 60480 (b) 60482
(c) 60000 (d) None of these

Common Proficiency Test (CPT) Volume - II 23

MODEL TEST PAPER - 1

175. In how many ways can the letters of the word “DIRECTOR” be arranged so that the three
vowels are never together?
(a) 180 (b) 18,000
(c) 18,002 (d) None of these
176. If f(x) = 1; if x < 3 , f(x) = ax + b; if 3 < x < 3 , f(x) = 7; if 5 < x.Determine the values of a & b
so that f(x) is continuous.
(a) a=3 & b =– 8 (b) a = 3 & b=8
(c) a–3 & b = 8 (d) None of these

⎡ x 9 ⎤
177. Evaluate lim
x→3 ⎢ x - 3
– 2
⎣ x – 3x ⎥⎦

(a) 1 (b) 0
(c) 2 (d) None of these

f(2) – f(x)
178. If f(x) = 4 –x2; then lim is
x →2 x−2

2 2
(a) (b) –
5 5
(c) 2 5 (d) 4

dy 1– x
179. Evaluate ; if y =
dx 1+ x

1 –1
(a) (b)
(1 + x) 1 – x 2 ) (1 + x) 1 – x 2 )

1
(c) (d) None of these
(1 + x 2 ) 1 – x 2 )

10x + logx dy
180. If y = ; then find .
x dx

10x (2 × log10 –1) + 2 – log x 10x (2 × log10 + 1) + 2 – log x

(a) (b)
2x x 2x x

10x (2 –1) + 2 – log x

(c) (d) None of these
2x x
24 Common Proficiency Test (CPT) Volume - II
 x
∫ 2 x dx
2
181. Evaluate

2x x 2 x2x +1 2x +1 2x x 3 x 2 2x +1 2x +1
(a) – + +c (b) – + +c
2 (log 2) 2 (log 2)3 3 (log 2) 2 (log 3)2

2x.x 2 x 3 .2x 2x +1
(c) – − +c (d) None of these
3 3 (log 2)3

log x
182. Evaluate ∫ 3x
dx

1 1
( x)
2
(a) log x + c (b) log +c
3 3x
1⎡
( x )⎤⎦
2
(c) log +c (d) None of these
3⎣

log x
183. Evaluate: ∫ x2
dx

1 –1
(a) (1 + log x) + c (b) log ex + c
x x
1 ⎛x⎞
(c) log ⎜ ⎟ + c (d) None of these
x ⎝e⎠

e x (x 2 + 1)
184. Evaluate: ∫ ( x + 1) 2
dx

⎛ x –1 ⎞ ⎛ x +1 ⎞
(a) ex ⎜ ⎟+c (b) ex ⎜ ⎟+c
⎝ x +1⎠ ⎝ x –1 ⎠
⎛ x –1 ⎞
(c) –e x ⎜ ⎟+c (d) None of these
⎝ x +1⎠

Common Proficiency Test (CPT) Volume - II 25

MODEL TEST PAPER - 1

xe x
185. Evaluate ∫ (1 + x ) 2
dx

ex xe x
(a) +c (b) +c
1+ x 1+ x
ex
(c) +c (d) None of these
(1 + x )
2

1 dy
186. If y = x+ ; then 2x is
x dx

1 1
(a) x– (b) x+
x x
1
(c) x– (d) None of these
x

x2 + 1 + x2 – 1 dy
187. if y = , then is
x2 + 1 – x2 – 1 dx

2x 3 2x 3
(a) 2x – (b) 2x +
x 4 –1 x 4 –1
x3
(c) x– (d) None of these
x 4 –1

⎡ 3
⎤
⎛ x – 2 ⎞ ⎥ then dy is
4
188. If y = log ⎢ e x
⎜
⎢ ⎝x+2⎠ ⎥ ⎟ dx
⎣ ⎦

x 2 –1 x2 +1
(a) (b)
x2 – 4 x2 – 4
x 2 –1
(c) (d) None of these
x2 + 4

26 Common Proficiency Test (CPT) Volume - II

 dy
189. If y = xx, then is
dx
(a) xx (2 + log x) (b) xx log (ex)
⎛e⎞
(c) xx log ⎜ ⎟ (d) None of these
⎝x⎠

2 dy
190. If y = x e – x then is
dx

2 ⎡1 – 2x log x ⎤ 2 ⎡1 – 3x log x ⎤
2 3 2
– x2 – x2
(a) xe e– x ⎢ ⎥ (b) xe e– x ⎢ ⎥
⎣ x ⎦ ⎣ x2 ⎦

2 ⎡1 – 3x log x ⎤
2

(c) e– x ⎢ ⎥ (d) None of these

⎣ x ⎦

191. If the sum of first n terms of an A.P.’s Zero, then the sum of next m terms, where a is the first
term of the A.P. is

–am –am(m + n)
(a) (b)
(m + n)(n –1) n –1
am(m + n)
(c) (d) None of these
n –1
192. First, Second and last terms of a finite A.P. are m, n and 2m respectively, then sum of the
series is

3mn 3mn
(a) (b)
2(n – m) n−m
3mn
(c) (d) None of these
2(n + m)

193. The first and fifth term of an A.P. of 40 terms are –29 & –15 respectively. Find the sum of all
positive terms of this A.P.
(a) 1605 (b) 1705
(c) 1805 (d) None of these

Common Proficiency Test (CPT) Volume - II 27

MODEL TEST PAPER - 1

1 1
194. If mth term of an A.P. is and nth term is , then sum of mn terms is –
n m
1
(a) mn+1 (b) (mn –1)
2
1
(c) (mn + 1) (d) None of these
2
195. The sum of n terms of two A.P.s are in the ratio (7n+1) : (3n+2); find the sum of their 13th terms
(a) 6:7 (b) 16:7
(c) 7:16 (d) None of these
196. If one Arithmetic Mean A and G.M.s G1 and G2 be inserted between any two numbers then
G 13 + G 23 is equal to –
(a) 2G1 G2 (b) 2A G1 G2
(c) 2AG1 (d) None of these

am+1 + b m+1
197. If is the G.M. between the numbers a and b, then the value of m is
am + bm

1 1
(a) – (b)
2 2
(c) 1 (d) 0
198. If the pth, qth, rth and sth terms of an A.P. are in G.P.; then p–q, q–r and r–s are in
(a) A.P. (b) G.P.
(c) Cannot determine (d) None of these
199. The value of 1.4 is

13 10
(a) (b)
9 9
4
(c) (d) None of these
9
200. The value of 0.356 is

356 353
(a) (b)
999 999
353
(c) (d) None of these
990
❖❖❖
28 Common Proficiency Test (CPT) Volume - II
 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 2 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. Present liability of uncertain amount, which can be measured reliably by using a substantial
degree of estimation is termed as
(a) Contingent liability (b) Liability
(c) Provision (d) Reserve
2. Which one of the following statement is FALSE :
(a) There are many views about accounting principles
(b) Accounting is based on accounting equation
(c) Accounting is commonly treated as language of business
(d) None of the above
3. For charging depreciation, on which of the following assets, the depletion method is adopted?
(a) Washing Assets (Mines) (b) Land
(c) Goodwill (d) All of the above

4. Closing stock appearing in the trial balance is shown in

(a) The Profit and Loss Account (b) The Balance Sheet only
(c) The Trading Account only (d) Both (b) and (c)

Common Proficiency Test (CPT) Volume - II 29

MODEL TEST PAPER - 2

5. When the incoming partner brings his share of goodwill in cash, the amount of brought-in
share of goodwill is credited to
(a) Cash Account (b) Capital Account
(c) Premium for Goodwill (d) Old Partner’s Capital Account

6. For shares issued to promoters for their services, account debited is

(a) Goodwill Account (b) Promotion Expenses Account
(c) Promoters Account (d) Directors Account

7. According to Section 78 of the Companies Act, the amount in the securities premium A/c
can be used for the purpose of
(a) Issue of fully paid bonus shares (b) Writing off preliminary expenses
(c) Both (a) & (b) (d) None of the above

8. Closing stock is valued at

(a) Cost price
(b) Cost price or Net realisable value whichever is lower
(c) Cost price or Net realisable value whichever is higher
(d) Net realisable value

9. When the goods are returned to a supplier

(a) A Debit note is sent to him
(b) An Account sale is sent to him
(c) A receipt is sent to him
(d) Either (b) or (c)

10. Bills receivable endorsed are debited to

(a) Bills Payable A/c (b) Debtor’s A/c
(c) Endorsee A/c (d) Bills Receivable A/c

11. Capital Accounts of the co-venturers are of the nature of

(a) Nominal A/c (b) Personal A/c
(c) Real A/c (d) None of the above.

12. Del-credere Commission is allowed to cover

(a) All types losses (b) Abnormal loss
(c) Normal loss (d) None of the above

13. Entrance fee of Rs. 50,000 received by Shyam Cricket club is a

(a) Capital Expenditure (b) Revenue Receipts
(c) Capital Receipt (d) Revenue Expenditures

30 Common Proficiency Test (CPT) Volume - II

14. Interest on Capital is ............... for the business.
(a) Revenue (b) Expense
(c) Gain (d) None of the above
15. An amount of Rs. 5,000 received from Pankaj credited to Pooja would affect
(a) Pooja’s A/c (b) Pankaj’s A/c
(c) Pankaj’s A/c and Pooja’s A/c (d) Cash A/c and Pooja’s A/c
16. Accounts payable has............... balance
(a) Credit (b) Unfavourable
(c) Debit (d) Favourable
17. The concept that “an accountant shouldn’t anticipate profit, but must provide for all losses”
is known as
(a) The conservatism concept (b) The consistency concept
(c) The materiality concept (d) The reduction concept
18. Patents Accounts are
(a) Secured Loan Account (b) Nominal Account
(c) Real Account (d) Debtors Account
19. If a bill is drawn on 24 November for 60 days, it will mature on
(a) 26 January (b) 25 January
(c) 24 January (d) 21 January
20. Sales Tax payable is a
(a) Current Assets (b) Personal A/c
(c) Nominal A/c (d) Real A/c
21. Jai Co. purchased goods for Rs. 30,00,000 and sold 70% of such goods during the accounting
year ended 31st March, 2007. The market value of the remaining goods was Rs. 7,00,000.
Company valued closing stock at Rs. 7,00,000 and not at Rs. 900000 due to
(a) Periodicity concept (b) Cost concept
(c) Conservatism concept (d) None of the above
22. Tata Communication invited applications for 50,000 equity shares of Rs. 10 each and received
65,000 applications along with application money of Rs. 5 per share. Which of the following
is correct
(a) Refund the excess application
(b) Make pro-rate allotment to all applicants, and refund the excess application money
(c) Make pro-rate allotment to all applicants and adjust the excess money received towards
call money
(d) All of the above

Common Proficiency Test (CPT) Volume - II 31

MODEL TEST PAPER - 2

23. Goods costing Rs. 2,00,000 sent out to consignee at cost + 25%. Invoice price of the goods
will be
(a) 2,40,000 (b) 2,30,000
(c) 2,10,000 (d) 2,50,000
24. A company wishes to earn a 25% profit margin on selling price. Which of the following in
the profit mark up on cost, which will achieve the required profit margin
(a) 33.33% (b) 20%
(c) 30% (d) None of these
25. Ram of Raipur sends out goods costing Rs. 1,00,000 to Amar of Alwar. 3/5th of the goods were
sold by consignee for Rs. 70,000. Commission 2% on sale plus 20% of gross sale less all commission
exceeds cost price. The amount of commission will be
(a) Rs.2,900 (b) Rs.3,333
(c) Rs.2,833 (d) Rs.2,800
26. On 1.7.06, Ravi draws a bill on Raju for Rs. 10,000. At maturity Raju requests Ravi to renew
the bill for 2 months at 15% p.a. interest. Amount of interest will be
(a) Rs. 200 (b) Rs. 250
(c) Rs. 300 (d) Rs. 325
27. Credit purchase of cotton by cotton dealer worth Rs. 10,000 will be entered in
(a) Sales Book (b) Bill Receivable Book
(c) Purchase Book (d) None of the above
28. Goods worth Rs. 5,000 given as charity should be credited to
(a) Purchases A/c (b) Sales A/c
(c) Capital A/c (d) None of the above
29. Anurag and Basu entered into a joint venture and agreed to share equal profits. Anurag
purchased goods costing 2,00,000, Basu sold 4/5th of the goods for Rs. 2,50,000. Balance
goods were taken over by Basu at cost less 20%. If same set of books is maintained, find out
profit on venture
(a) Rs.90,000 (b) Rs.85,000
(c) Rs.83,000 (d) Rs.82,000
30. Brij Ltd. purchased a machine on 1.1.2004 for Rs. 2,40,000. Installation expenses were Rs.
20000. Residual value after is estimated to be Rs. 5000. On 1.1.2004, expenses for repair
were increased to the extent of Rs. 5000 depreciation is provided under straight line method.
Depreciation rate is 10%. Annual depreciation will be
(a) Rs.20,000 (b) Rs.26,500
(c) Rs.26,000 (d) Rs.23,000

32 Common Proficiency Test (CPT) Volume - II

31. J, K and L are partners sharing profits and losses in the ratio of 3 : 2 : 1. They look a joint
life policy of Rs. 60000. On the death of L, what amount will be payable to each partner.
(a) J = Rs.15,000, K = Rs.30,000, L = Rs.15,000
(b) J = Rs.10,000, K = Rs.20,000, L = Rs.30,000
(c) J = Rs.30,000, K = Rs. 20,000, L = Rs.10,000
(d) J = Rs.30,000, K = Rs.30,000
32. Sale of office furniture should be credited to
(a) Furniture A/c (b) Sales A/c
(c) Cash A/c (d) Purchase A/c
33. Pankaj Ltd. issued 500 equity shares of Rs. 100 each as fully paid up in consideration of
purchase of plant and machinery Rs. 40000. What will be the amount of discount an issue of
shares
(a) Rs. 15,000 (b) Rs. 10,000
(c) Rs. 5,000 (d) Rs. 1,000
34. Omega Ltd. issued 5000 shares of Rs. 20 each. The called up value per share was Rs. 16. The
company forfeited 400 shares of Mr. Ajay for non-payment of 1st Call money of Rs. 4 per
share. He paid Rs. 12 for application and allotment money. On forfeiture, the share capital
A/c will be
(a) Debited by Rs. 6,400 (b) Credited by Rs. 1,600
(c) Debited by Rs. 1,600 (d) None of the above
35. Sundry debtors on 31st March, 2005 are Rs. 1,05,000. Further bad debts are Rs. 5,000, sales
return recorded in the books Rs. 10,000. Old provision for bad debts is Rs. 4,000. Provision
for doubtful debts is to be made on debtors @ 10% and also provision of discount is to be
made on debtors @ 3%. What will be the amount of bad debts charged in Profit and Loss A/
c after considering provisions for bad debts?
(a) Rs.2,700 (b) Rs. 10,000
(c) Rs.12,700 (d) Rs. 6,000
36. In the bank reconciliation statement, when balance as per cash book is taken as the starting
point, the direct deposits from customer of Rs. 10,000 in the bank will be
(a) Subtracted (b) Added
(c) Ignored (d) None of the above
37. The profit of the M/s JPH, a partnership firm before charging managerial commission is Rs.
84,000. The managerial commission is charged @ 5% on profit after charging such
commission. The amount of managerial commission will be
(a) Rs. 4,200 (b) Rs 8,400
(c) Rs. 4,000 (d) Rs. 8,000

Common Proficiency Test (CPT) Volume - II 33

MODEL TEST PAPER - 2

38. Naveen of Nagpur sends out 1,000 boxes costing 1,00,000 to Deepak of Delhi at cost +20%
consignor’s expenses were:
Freight Rs. 6,000
Insurance Rs. 2,000
Consignee’s expenses were :
Loading and Unloading charges Rs. 10,000
Salesman salary Rs. 6,000 and
Commission 2% on Gross sale.
What will be the amount of profit if 3/4th goods sold by consignee at Rs. 1,00,000
(a) Rs. 5,500 (b) Rs. 6,500
(c) Rs. 7,500 (d) Rs. 3,500
39. Manish sold goods to Kamal for Rs. 25,000. Manish will grant 2% discount to Kamal. Kamal
requested Manish to draw a bill. The amount of bill will be
(a) Rs.25,000 (b) Rs.24,750
(c) Rs.24,500 (d) Rs.24,250
40. Edward Motors Ltd. a dealer in cars has the following five vehicles of different models and
makes in their stock at the end of the financial year 2005-06
Car Cost (Rs.) Market Price (Rs.)
(i) Zen 2,00,000 2,10,000
(ii) Fiat 3,50,000 3,70,000
(iii) Esteem 3,25,000 3,20,000
(iv) Honda City 6,00,000 6,30,000
(v) Optra 7,25,000 7,00,000
The value of stock included in balance sheet of the company as on 31 March, 2006 was
(a) 21,70,000 (b) 22,00,000
(c) 22,30,000 (d) 22,60,000
41. Mr. Anuj sent 2000 units costing Rs. 1800 each to Mr. Mahipal. The goods were to be sold
as to yield a gross profit of 20% on sales. Mr. Mahipal sold 1200 units @ 2050 per unit on
credit and 650 units @ Rs. 2300 per units on cash. Mr. Mahipal is entitled to a commission
Rs. 300 per unit. The amount of commission will be
(a) Rs. 5,55,000 (b) Rs. 5,70,000
(c) Rs. 5,90,000 (d) Rs. 6,10,000
42. Vimal and Vishal are partners sharing profits and losses in the ratio of 2 : 1. On 1st Jan
2005, Vasu is admitted with 1/4th share in profits with guaranteed amount of Rs. 25,000.
The profits for the year ended 31 Dec, 2006 amounting to Rs. 76,000. The share of Vishal in
the profits should be
(a) Rs. 19,000 (b) Rs. 17,000
(c) Rs. 15,000 (d) Rs. 13,000

34 Common Proficiency Test (CPT) Volume - II

43. Rohit and Raja enter into a joint venture to sell cotton, sharing profit, and losses equally.
Rohit provides cotton from stock Rs. 1,00,000. He pays expenses amounting Rs. 10,000.
Raja incurs further expenses on carriage Rs. 10,000. He received cash on sale of cotton Rs.
1,50,000. He also takes over goods to the value of Rs. 20,000. Profit on venture will be
(a) Rs. 30,000 (b) Rs. 40,000
(c) Rs. 45,000 (d) Rs. 50,000
44. The profits of last three years are Rs. 58,000, Rs. 55,000 and Rs. 61,000. Capital employed is
Rs. 500000 and normal rate of return is 10%. The amount of goodwill
calculated on the basis of super profit method for three years of purchase will be
(a) Rs. 8,000 (b) Rs. 16,000
(c) Rs. 24,000 (d) Rs. 32,000
45. “Inventories should be out of godown in the sequence in which they arrive” is based on
(a) FIFO (b) Weighted average
(c) LIFO (d) None of the above
46. The following information pertains to Sethi Ltd.
(i) Equity share capital called up Rs. 10,00,000
(ii) Call in advance Rs. 90,000
(iii) Call in arrear Rs. 1,10,000
(iv) Proposed Dividend 12%
Amount of dividend for the year will be
(a) Rs. 1,17,600 (b) Rs. 96,000
(c) Rs. 1,06,800 (d) Rs. 1,20,000
47. A transaction is
(a) Profit and Loss A/c and Balance Sheet
(b) Language of business
(c) A base for accounting
(d) Business performance of trading activities
48. The weekly or monthly total of the purchase book is
(a) Posted to the debit of the purchase A/c
(b) Posted to the credit of the purchase A/c
(c) Posted to the credit of the bill payable A/c
(d) None of the above
49. Revenue from sale of product ordinarily is reported as part of earning in the period
(a) The planning takes place (b) The sale is made
(c) The product is manufactured (d) The cash is collected

Common Proficiency Test (CPT) Volume - II 35

MODEL TEST PAPER - 2

50. Mr. Yogesh was the holder of 700 shares of Rs. 100 each in KFC Ltd. upon which 50 per
share had been called up but he had paid only Rs. 25 per share thereon. The company
forfeited his shares and afterwards sold them to Kamlesh, credited as Rs. 50 per share paid
for Rs. 25,000. The amount to be transfer to capital reserve is
(a) Rs. 7,500 (b) Rs. 25,000
(c) Rs. 35,000 (d) Rs. 70,000
51. DBM Ltd. issued 7,000, 5% debentures of Rs. 100 each at a discount of 6%, redeemable at a
premium of 5% after 5 years payable as Rs. 50 on application and Rs. 44 on allotment. Total
amount of discount/loss on issue of debenture will be
(a) Rs. 42,000 (b) Rs. 35,000
(c) Rs. 77,000 (d) Rs. 1,22,000
52. From the following figures ascertain the gross profit/loss
Opening stock = Rs. 60,000
Cost of good sold = Rs. 2,20,000
Freight on purchase = Rs. 1,20,000
Sale = Rs. 3,00,000

(a) Rs. 80,000 (b) Rs. 8,000

(c) Rs. 20,000 (d) Rs. 68,000
53. Abhi draws a bill on Ravi for Rs. 1,00,000 for 3 months. At maturity, the bill returned
dishonoured, noting charges Rs. 1,000. Ravi was declared insolved and only 30 paise in a
rupee was recovered from his estate. The amount of deficiency to be recorded on insolvency
in the books of Ravi will be
(a) Rs. 30,300 (b) Rs. 29,400
(c) Rs. 35,500 (d) Rs. 70,700
54. M, N and O are partners sharing profit and losses in the ratio of 3 : 2 : 1. P joins the firm and
gets 2/10th of share in the ratio of 1 : 1 from M and N calculate new ratio
(a) 24 : 14 : 5 : 6 (b) 12 : 7 : 5 : 6
(c) 12 : 7 : 10 : 12 (d) 24 : 10 : 14 : 12
55. Original cost = Rs. 2,52,000 Salvage value = 12000.
Depreciation for 3rd year @ 5% p.a. under W.D.V method
(a) Rs. 12,600 (b) Rs. 11,382
(c) Rs. 11,372 (d) Rs. 11,970
56. Tarun Ltd. purchased building from Varun Ltd. for a book value of Rs. 400000. The
consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of 20%.
The debenture account will be credited
(a) Rs. 5,00,000 (b) Rs. 4,00,000
(c) Rs. 1,00,000 (d) None of the above

36 Common Proficiency Test (CPT) Volume - II

57. Goods sold for cash Rs. 50000, plus 10% sales Tax. Sales will be credited by
(a) Rs. 45,000 (b) Rs. 50,000
(c) Rs. 55,000 (d) Rs. 60,000
58. Ram and Shyam enter into a joint venture sharing profits and losses in the ratio 3:2. Ram
purchased goods casting Rs. 200000. Other expenses of Ram Rs. 10000. Shyam sold goods
for Rs. 180000. Remaining goods were taken over by Shyam at Rs. 20000. The amount of
final remittance to be paid by Shyam to Ram will be
(a) Rs. 2,15,000 (b) Rs. 2,06,000
(c) Rs. 2,10,000 (d) None of the above
59. Net realisable value means :
(a) Sales less cost incurred necessarily to make the sale
(b) Sales less sales return
(c) Sales less cost of purchase
(d) Sales less gross profit margin
60. In the absence of a partnership deed, the allowable rate of interest on partners loan account
will be
(a) 4% (b) 7%
(c) 6% (d) 12%
SECTION – B : MERCANTILE LAWS (40 MARKS)

61. A general offer may be accepted by

(a) Any person (b) Promisee only
(c) Legal representative only (d) Any of these
62. Moral pressure is involved in the case of
(a) Coercion (b) Undue - influence
(c) Misrepresentation (d) Fraud
63. An unpaid seller is bound to resell the goods
(a) False
(b) True
(c) Unpaid seller can sue for compensation
(d) Unpaid seller can force to pay the price
64. Communication of acceptance, as against the proposer, is complete.
(a) When the letter of acceptance is put into a course of transmission
(b) When the letter of acceptance reaches the proposer
(c) When the proposer has actually learnt the contents of the letter of acceptance
(d) None of the above

Common Proficiency Test (CPT) Volume - II 37

MODEL TEST PAPER - 2

65. In a unilateral contract

(a) Only one of the parties makes a promise
(b) One of the parties has already performed his part of the promise
(c) Both the parties have to perform their respective promises
(d) Not a contract at all
66. Standing offer means
(a) Offer allowed to remain open for acceptance over a period of time
(b) After made to the public is general
(c) When the offeree offers to qualified acceptance of the offer
(d) Offer made to a definite person
67. Performance to the contract, is provided in the Indian contract Act, 1872 in
(a) Section 35 (b) Section 36
(c) Section 37 (d) Section 40
68. Offer of promise to perform must be made
(a) at the proper time (b) at the proper place
(c) at the proper form (d) All of the above
69. A promisor can perform the promise
(a) Through his representatives irrespective of the competency of that representative
(b) Through his representative component to perform
(c) Himself
(d) None of the above
70. Assignment of contract may be by
(a) Operation of law (b) The act of parties
(c) (a) or (b) (d) None of the above
71. Reasonable time for a performance of a contract is a
(a) Question of fact (b) Question of prudence
(c) Question of law (d) Mixed question of fact and law
72. Whether time is essence of the contract depends on the
(a) Provisions of law
(b) Intention of the parties
(c) Facts and circumstances of each separate case
(d) All of the above
73. Contract can be discharged by agreement between parties by the way
(a) Remission (b) Waiver
(c) (a) or (b) (d) (a) and (b)

38 Common Proficiency Test (CPT) Volume - II

74. The damage awarded by way of punishment is
(a) Vindictive damages (b) Special damages
(c) Nominal damages (d) Ordinary damages
75. Anticipatory breach may be
(a) Express (b) Implied
(c) (a) or (b) (d) (a) and (b) both
76. Specific performance may be ordered by the court in the following cases
(a) When the damages are an adequate remedy
(b) When defaulting party is not ready to pay damages
(c) When damages are not an adequate remedy
(d) When the contract is voidable
77. A finder of lost goods can be treated as
(a) Thief (b) Bailor
(c) Bailee (d) True owner
78. Claim for necessaries supplied to an incompetent person is provided in the Indian Contract
Act, 1872, in
(a) Section 65 (b) Section 67
(c) Section 68 (d) Section 69

79. Price consideration in a contract of sale can be

(a) Only by way of money
(b) Only by way of goods in return
(c) Party by way of money or partly by way of goods return
(d) No consideration is required at all
80. An agreement to sell is _______ contract.
(a) Executed (b) Executory
(c) Implied (d) Unilateral
81. Consideration in _______ passes from both parties to each other.
(a) Sale (b) Gift
(c) Transfer (d) None of these
82. In agreement to sell buyer _______ goods on insolvency of seller.
(a) Cannot claim (b) Can claim
(c) Can conditionally claim (d) None of the above

Common Proficiency Test (CPT) Volume - II 39

MODEL TEST PAPER - 2

83. As per section 20, where there is an unconditional contract for sale of _______ , the property
passes to the buyer at the time when contract is made.
(a) Unascertained goods
(b) Specific goods in a deliverable state
(c) Specific goods to be put in a deliverable state
(d) Specific goods in a non-deliverable state
84. Partnership is created by _______ among the partners.
(a) Mutual status (b) Agreement
(c) Understanding (d) Birth
85. Every partner has the right to _______.
(a) Take part in the business of the firm
(b) To share exclusive profits
(c) To use the property of the firm for personal purposes
(d) Pay taxes
86. Section _______ of the partnership Act, 1932 deals with ‘’Particular Partnership’’.
(a) 6 (b) 7
(c) 8 (d) 9
87. The partner who does not take part in the conduct of the business is known as _______.
(a) Sub partner (b) Nominal partner
(c) Sleeping partner (d) All of the above
88. Each partner of a firm is _______.
(a) Principals as well as agents (b) Only agents of the firm
(c) Only representative of the firm (d) Only Co-partners of the firm
89. A partnership firm is _______.
(a) Judicial person
(b) Not a distinct legal entity from its partners
(c) A distinct legal entity from its partners
(d) Either (a) or (c)
90. The members of a club or associations have _______ of the club or association.
(a) Interest in the property (b) Mutual agency
(c) Membership (d) Both (a) and (b)
91. In all the joint Hindu family firms, their _______ are personally liable to third parties.
(a) Kartas and major members (b) Kartas only
(c) All major members (d) All the members

40 Common Proficiency Test (CPT) Volume - II

92. Where seller resells the goods after giving notice to the buyer, the _______ shall not be
entitled to any profit which may occur on resale.
(a) Buyer (b) Seller
(c) Bailee (d) Buyer and seller
93. Goods which are in the existence at the time of the contract of sale is known
as ________.
(a) Present goods (b) Specific goods
(c) Ascertained goods (d) Existing goods
94. A _________ is a stipulation collateral to the main purpose of the contract. The breach of
which gives rise to a claim for damages but not a right to reject the goods and treat the
contract repudiate.
(a) Warranty (b) Condition
(c) Implied condition (d) None of the above
95. In a contract of sale of goods, breach of condition may be treated as breach of _______.
(a) Guarantee (b) Term
(c) Warranty (d) Promise
96. ___________ signifies that the parties are not further bound under the contract.
(a) Discharge of a contract (b) Breach of a contract
(c) Waiver of a contract (d) Recission of a contract
97. When a contract expressly provides for the order of performance of reciprocal promises,
the promises shall be performed in ___________.
(a) Any reasonable order
(b) Any appropriate order
(c) Any order
(d) The order mentioned and not otherwise
98. Section __________ of the Indian Contract Act mentions three exceptions when an agreement,
even though without consideration, is enforceable.
(a) 25 (b) 26
(c) 28 (d) 30
99. ‘A’ is a minor, who broke his right leg in a cricket match. He engaged, a doctor, to set it. Does
the doctor have a valid claim for his services? Decide.
(a) Minor will be personally liable.
(b) Minor’s parents will be liable.
(c) Minor’s properties, if any, can be held liable for necessary services rendered to a minor .
(d) Nobody will be liable.

Common Proficiency Test (CPT) Volume - II 41

MODEL TEST PAPER - 2

100. ‘A’ lends a horse to ‘B’ for his own riding only ‘B’ and ‘C’, his wife, to ride the horse, ‘C’,
rides with care, but the horse accidentally falls and is injured. Decide the liability.
(a) A will not be liable. (b) A’s wife will be liable.
(c) A is liable to make compensation. (d) Nobody will be liable.
SECTION – C : GENERAL ECONOMICS (50 MARKS)

101. In Economics, the central economic problem means:

(a) Output is restricted to the limited availability of resources
(b) Consumers do not have as much money as they would wish
(c) There will always be certain level of unemployment
(d) Resources are not always allocated in an optimum way
102. The other names of ———— method are abstract, analytical and priori method.
(a) Inductive method (b) Economic method
(c) Deductive method (d) Name of the above
103. All points on PPC show that goods and services are produced at:
(a) Least cost and some resources are wasted
(b) High cost and no resources are wasted
(c) Least cost and no resources are wasted
(d) Moderate cost and no resources are wasted
104. Which of the following is a cause of an economic problem
(a) Scarcity of Resources (b) Unlimited wants
(c) Alternative uses (d) All of the above
105. Calculate income elasticity for the household when the income of a household rises by 10 %,
the demand for Rice rises by 5%.
(a) - .5 (b) + .5
(c) -2 (d) +2
106. When two goods are perfect substitutes of each other then
(a) MRS is falling (b) MRS is rising
(c) MRS is constant (d) None of the above
107. The Law of Scarcity
(a) Does not apply to rich, developed countries
(b) Does not apply to poor, under developed countries
(c) Implies only to socialist economies.
(d) Implies that all consumer wants will never be completely satisfied.

42 Common Proficiency Test (CPT) Volume - II

108. Scarcity definition of economics is given by
(a) Alfred Marshall (b) J B Say
(c) Allen and Hicks (d) Robbins
109. In case of a Giffin good, the demand curve will be:
(a) Horizontal (b) Downward- sloping to the right
(c) Vertical (d) Upward – sloping
110. Which of the following statements is incorrect?
(a) The services of doctors, lawyers, teachers etc are termed as production
(b) Man cannot create matter
(c) Accumulation of capital does not depend solely on income
(d) None of the above
111. Which is the other name given to Average revenue curve?
(a) Profit curve (b) Demand curve
(c) Indifference curve (d) Income curve
112. Which of the following is not the function of RBI?
(a) Issue of currency (b) Bankers’ bank
(c) Controller of credit (d) Banker to general public
113. The IMF was set up in:
(a) 1945 (b) 1946
(c) 1947 (d) 1950
114. M1 is defined by RBI (as per latest definition) as
(a) Currency + Deposits + other deposits with RBI
(b) Currency + Demand Deposits + other deposits with RBI
(c) Currency + Fixed Deposits + other deposits with RBI
(d) Currency + Time Deposits + other deposits with RBI
115. Nationalised Banks include:
(a) SBI (b) Citibank
(c) American Express Bank (d) All of the above
116. Two Nationalized banks were merged in the year:
(a) 1991 (b) 1975
(c) 1980 (d) 1993
117. Out of 5.6 lakh villages in India, only _______villages are being served by commercial banks:
(a) 56,000 (b) 10,000
(c) 5,000 (d) 50,000

Common Proficiency Test (CPT) Volume - II 43

MODEL TEST PAPER - 2

118. 100 percent privatization has taken place in:

(a) VSNL (b) Hindustan Zinc
(c) IBP Company (d) Centaur Hotel

119. The disinvestment programme was started in:

(a) 1990-91 (b) 1991-92
(c) 1995-96 (d) 1997-98
120. TRIPs stand for:
(a) Trade Related Intellectual Property Rights
(b) Transaction Related Intellectual Property Rights
(c) Trade Related Intelligence Property Rights
(d) Trade Related International Property Rights
121. 100% FDI is Permitted is:
(a) Oil Refineries (b) Banking
(c) Insurance (d) Defense
122. Duty Free Export Credit Scheme has been revamped and re-cast into:
(a) Made in India model (b) Served from India Scheme
(c) India’s Shining Scheme (d) EPCG Scheme
123. Export Promotion Capital Goods scheme was abolished in:
(a) 1991 (b) 2002
(c) 2005 (d) False, it is still continuing
124. Financial sector reforms mainly relate to:
(a) Banking sector reforms (b) Capital reforms
(c) Insurance sector reforms (d) All of the above
125. FDI has been allowed in defense upto:
(a) 74% (b) 49%
(c) 26% (d) 100%
126. Administered prices means
(a) Prices fixed by private sector under the guidance of government
(b) Prices fixed by consumer forums
(c) Prices fixed by the Government and private sector
(d) Price level fixed by the Government

44 Common Proficiency Test (CPT) Volume - II

127. Price support policy means:
(a) Prices at which government would be buying agricultural products from farmers
(b) Prices at which farmers will be selling goods to the private sector
(c) Subsidy received by farmers from government
(d) None of the above
128. Stagflation:
(a) means prices are falling and purchasing power is increasing
(b) is in the form of a low rate of growth combined with the general price level increase
(c) means high rate of growth combined with rise in the general price level
(d) means that due to increase in the cost of products, prices of final products are increasing
129. NPE stands far
(a) National Policy on Education (b) Nuclear Policy on Electronics
(c) National Policy on Electronics (d) National Policy on Elections
130. Sarva Shiksha Abhiyan was launched in the year
(a) 2000-01 (b) 2001-02
(c) 2002-03 (d) 2004-05
131. Secondary education prepares students in the age group of:
(a) 14-16 years (b) 14-18 years
(c) 12-18 years (d) None of the above
132. National Literacy mission was launched for:
(a) Primary education (b) Secondary education
(c) Adult education (d) All of the above
133. Postal system was started in India in the year:
(a) 1837 (b) 1847
(c) 1857 (d) 1867
134. Which is not the problem faced by Indian ports?
(a) Inadequate dredging and container handling facilities
(b) Inefficient and non optimal deployment of port equipment
(c) Proper coordination in the entire chain
(d) Operational constraints such as frequent break down of cargo handling equipment due to
obsolescence
135. GRT stands for
(a) Gross Registered Tonnage (b) Gross Regular Tonnage
(c) Gross Regulated Tonne (d) Gross Registered Tollage

Common Proficiency Test (CPT) Volume - II 45

MODEL TEST PAPER - 2

136. Pawan Hans Helicopters Ltd provides helicopter support services to:
(a) Petroleum sector
(b) State and Union Territory government
(c) Public sector undertaking
(d) All of the above
137. India has a long coastline of:
(a) 7517 Km, 12 major ports and 187 minor ports
(b) 7518 Km, 12 major ports and 87 minor ports
(c) 7517 Km, 11 major ports and 187 minor ports
(d) 7577 Km, 12 major ports and 187 minor ports
138. For the prices- taking firm:
(a) Marginal revenue is less than price
(b) Marginal revenue is equal to price
(c) Marginal revenue is greater than price
(d) The relationship between marginal revenue and price is indeterminate
139. A monopolist is able to maximize his profits when:
(a) His output is maximum
(b) He charges high price
(c) His average cost is minimum
(d) His marginal cost is equal to marginal revenue
140. In Imperfect competition:
(a) Excess capacity always exists
(b) Excess capacity never exists
(c) Excess capacity may or may not exist
(d) None of the above
141. In long run, in perfectly competitive market there will be:
(a) Normal profit (b) Super normal profits
(c) Losses (d) None of the above
142. In perfect competition utilization of resources is
(a) Partial (b) Moderate
(c) Full (d) Over
143. Which of the following statements is false?
(a) For equilibrium the main condition is MC=MR
(b) AR curve and Demand curve are same
(c) MC and AC curves are U-shaped in every market
(d) None of the above

46 Common Proficiency Test (CPT) Volume - II

144. Product differentiation is the most important feature of:
(a) Monopolistic Competition (b) Monopoly
(c) Oligopoly (d) Perfect Completition
145. MC=MR and MC cuts MR from below is a true equilibrium condition in:
(a) Short run (b) Long run
(c) Both in short run and long run (d) None of the above
146. Price discrimination occurs when:
(a) Producer sells a specific commodity or service to different buyers for the same price
(b) Producer sells specific commodity or service to different buyers at two or more different
prices due to differences in cost
(c) Producer sells a specific commodity or service to different buyers at two or more different
prices for reasons not associated with difference in cost
(d) Producer under perfect competition sells different goods to consumers at different prices
147. MR curve under Monopoly lies between AR and Y-axis because, the rate of decline of the
MR is
(a) Just half of the rate of decline of A.R.
(b) Just equal to the rate of decline of A.R.
(c) Just triple the rate of decline of the average revenue
(d) Just double the rate of decline of the average revenue
148. Relationship between AR, MR and Price elasticity of demand is

⎡ E − 1⎤ ⎡ E − 1⎤
(a) MR = AR + ⎢ (b) MR = AR x ⎢
⎣ E ⎥⎦ ⎣ E ⎥⎦
⎡ E ⎤ ⎡ E ⎤
(c) AR = MR x ⎢ (d) MR = AR x ⎢
⎣ E − 1 ⎥⎦ ⎣ E − 1 ⎥⎦

149. In a perfectly competitive firm, MC curve above AVC is the_____Curve of the firm
(a) average cost (b) marginal revenue
(c) demand (d) supply
150. In the long run, normal profits are included in the ______ curve.
(a) LAC (b) LMC
(c) AFC (d) SAC

Common Proficiency Test (CPT) Volume - II 47

MODEL TEST PAPER - 2

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. If (P+1)th term of A.P. is twice the (q+1)th term; then the ratio of (P+q+1)th term and
(3P+1)th term is:
(a) 1:2 (b) 2:1
(c) 1:3 (d) None of these
152. If the common difference of an A.P. equals to the first term, then the ratio of its mth term
and nth term is:
(a) n:m (b) m:n
(c) m2:m2 (d) None of these

1 1
153. If the mth term of A.P. is and the nth term is , then its mnth term is:
n m
(a) 1 (b) –1
(c) 0 (d) None of these

1 1 1
154. Sum the series upto n terms + + + ............
2.5 5.8 8.11

n −n
(a) (b)
2(3n + 2) 2(3n + 2)
n
(c) (d) None of these
2(3n − 2)

155. Which term of the series 0.004 + 0.02 + 0.1 + ……………… is 12.5
(a) 5 (b) 10
(c) 6 (d) None of these
157. Find the compound interest on Rs. 2,000 at 5% per annum, compounded yearly for 2½
years.
(a) Rs. 250 (b) Rs. 250.50
(c) Rs. 260.12 (d) None of these

1 1 1
158. At what rate percent s upto n terms + + + ............
2.5 5.8 8.11
n −n
(a) (b)
2(3n + 2) 2(3n + 2)
n
(c) (d) None of these
2(3n − 2)
48 Common Proficiency Test (CPT) Volume - II
159. If the compound interest on a certain sum for 2 years at 3% be Rs. 101.50, what would be
the S.I.?
(a) Rs. 100 (b) Rs. 200
(c) Rs. 300 (d) None of these
160. The difference between the compound interest and the Simple Interest on a certain sum of
money at 5% per annum for 2 years is Rs. 1.50. Find the sum.
(a) Rs. 500 (b) Rs. 700
(c) Rs. 600 (d) None of these
161. A batsman in his 17th innings makes a score of 85 and thereby increases his average by 3.
What is his average after 17th innings?
(a) 37 (b) 35
(c) 36 (d) None of these
162. A person travels from A to B at the rate of 20 km/h and from B to A at the rate of 30 km/hr.
What is the average rate for whole journey?
(a) 20 km./hr. (b) 24 km./hr.
(c) 30 km./hr. (d) None of these
163. A person divides his journey into three equal parts and decides to travel on three parts at
the speeds of 40, 30 and 15 km/hr respectively. Find his average speed during the whole
journey.
(a) 30 km./hr. (b) 24 km./hr.
(c) 35 km./hr. (d) None of these
164. A person covers 12 km at 3 km/hr, 18 km at 9 km/hr and 24 km at 4 km/hr. Find the average
speed in covering the whole distance.
(a) 4.5 km./hr. (b) 5 km./hr.
(c) 10 km./hr. (d) None of these

1 th
165. A person runs the first of the distance at 2 km/hr, the next one half at 3 km/hr and the
5
remaining distance at 1 km/hr. Find his average speed.

15 30
(a) km./hr. (b) km./hr.
17 17
17
(c) km./hr. (d) None of these
30

Common Proficiency Test (CPT) Volume - II 49

MODEL TEST PAPER - 2

166. The mean of 100 observations is 50. If one of the observations which was 50 is replaced by
40, the resulting mean will be
(a) 40 (b) 49.90
(c) 50 (d) None of these
167. The combined mean of three groups is 12 and the combined mean of first two groups is 3. If
the first, second and third groups have 2, 3 and 5 items respectively, then the mean of third
group is
(a) 10 (b) 21
(c) 12 (d) 13
168. Mode is
(a) Least frequent value (b) Middle most value
(c) Most frequent value (d) None of these
169. If the arithmetic mean of two numbers is 10 and their geometric mean is 8, the numbers are
(a) 20,5 (b) 16,4
(c) 15,5 (d) 12,8
170. A frequency distribution can be presented graphically by a
(a) Pie diagram (b) Histogram
(c) Pictogram (d) Line diagram.
171. In co - variance method the sum of difference of rank is
(a) 1 (b) –1
(c) 0 (d) Cannot say
172. The relation between the production of Pig iron and Soot content in a factory is
(a) Positive (b) Negative
(c) 0 (d) None of these
173. If the relation between two random variables x and y is 2x + 3y = 4, then the correlation
coefficient between them is
(a) –2/3 (b) 1
(c) –1 (d) None of these
174. For a two way frequency table having (m×n) classification the total number of cells is
(a) m (b) n
(c) m+n (d) mn

50 Common Proficiency Test (CPT) Volume - II

175. For a m×n two way or bivariate frequency table, the maximum number of marginal
distributions is
(a) 1 (b) 2
(c) m+n (d) m.n
176. The correlation coefficient r is the ………….. of the two regression coefficients.
(a) G.M. (b) H.M.
(c) Arithmetic Mean (d) None of these
177. Each and every index number is independent of Unit of measurement.
(a) True (b) False
(c) Both (a) & (b) (d) None of these

∑ P1Q1
178. For factor reversal test: P01 × Q 01 =
∑ P0Q 0 = True Value Ratio (T.V.R.) This is

(a) False (b) True

(c) Both (a) & (b) (d) None of these
179. Factor Reversal test is satisfied by
(a) Fisher’s Ideal Index Number (b) Laspeyre’s Index Number
(c) Paasche’s Index Number (d) All of the above
180. During a certain period, the cost of living index number goes up from 110 to 200 and the
salary of the worker is also raised from Rs. 3,250 to Rs. 5,000. Does the worker really gain?
(a) No (b) Yes
(c) Cannot determine (d) None of these
181. Ticket numbered 1 to 20 are mixed up and then a ticket is drawn at random. What is the
probability that the ticket drawn bears a number which is multiple of 3 or 7?

1 2
(a) (b)
5 5
3
(c) (d) None of these
5
182. A card is drawn from a pack of playing cards at random. What is the probability that the
card drawn is neither a king nor a heart?

4 9
(a) (b)
13 13
2
(c) (d) None of these
13
Common Proficiency Test (CPT) Volume - II 51
MODEL TEST PAPER - 2

183. A bag contains 3 red, 5 yellow and 4 green balls. 3 balls are drawn at random. Find the
chance that balls drawn contain exactly two green balls.

12 10
(a) (b)
55 55
13
(c) (d) None of these
55
184. A husband and a wife appear in an interview for two vacancies in the same post. The
probability of husband’s selection is 3/5 and that of wife’s selection is 1/5. Then the probability
that only one of them is selected is

16 17
(a) (b)
25 25
14
(c) (d) None of these
25
185. A bag contain 4 white balls and 2 black balls. Another contains 3 white and 5 black balls. If
one ball is drawn from each bag. Then the probability that one is white and one is black is

11 13
(a) (b)
24 24
15
(c) (d) None of these
25
186. Poison distribution is a biparametric distribution. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
187. Binomial distribution is a biparametric distribution. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
188. If x and y are two independent variance follow poison distribution in the parameters
m1 & m2 respectively. If z = x + y and also follows the poison distribution then the
parameter of Z is
(a) m1 – m2 (b) m1. m2
(c) m1+ m2 (d) None of these

52 Common Proficiency Test (CPT) Volume - II

189. If x and y are two independent variables such that x ~ B (n1, P) and y ~ B (n2, p) then the
parameter of Z = x + y is
(a) (n1+n2), P (b) (n1–n2), P
(c) (n1+n2), 2P (d) None of these
190. The Binomial or poison distribution could be uni–modal or bi–modal. This is
(a) False (b) True
(c) Either (a) or (b) (d) None of these
191. If x be a normal variate with mean 3 and variances 16, find the value of t such that:
P (3 < x <t) = 0.4772 (Given: P(Z < 2) = 0.9772, where Z is N (0, 1) variate)
(a) 10 (b) 11
(c) 12 (d) None of these
192. A bag contains 5 red and 4 blackballs. A ball is drawn at random from the bag and put into
another bag contains 3 red and 7 black balls. A ball is drawn randomly from the second bag.
What is probability that it is red,

32 1
(a) (b)
99 3
74
(c) (d) None of these
99
193. A committee of 4 persons is to be appointed from 3 officers of the production department, 4
officers of the purchase department, two officers of the sales department and 1 Chartered
Accountant. Find the chance there must be one from each category.

4 3
(a) (b)
35 35
1
(c) (d) None of these
7
194. A committee of 4 persons is to be appointed from 3 officers of the production department, 4
officers of the purchase department, two officers of the sales department and 1 Chartered
Accountant. Find the chance that it should have at least one from the purchase department.

4 39
(a) (b)
35 42
42
(c) (d) None of these
105

Common Proficiency Test (CPT) Volume - II 53

MODEL TEST PAPER - 2

195. A committee of 4 persons is to be appointed from 3 officers of the production department, 4

officers of the purchase department, two officers of the sales department and 1 Chartered
Accountant. Find the chance that the Chartered Accountant must be in the committee.
4 39
(a) (b)
35 42
42
(c) (d) None of these
105
196. Six boys and five girls are to be seated in a row such that no two girls and no two boys sit
together. Find the number of ways in which this can be done.
(a) 86,400 (b) 85,000
(c) 85,400 (d) None of these
197. A six faced die is so biased that it is twice as likely to show an even number as an odd number
when it is thrown. What is the probability that the sum of the two numbers is even.
4 5
(a) (b)
9 9
3
(c) (d) None of these
8
198. A and B select a digit at random from 0, 1, 2, 3, ………….. 9 independently. Find the chance
that the product of the two digits chosen is Zero.
1 2
(a) (b)
5 5
4
(c) (d) None of these
5

195 n + 3 P3
199. In the sequence (xn) where xn = − & nEN, the set of natural numbers. The
4n! (n + 1)!
number of positive terms is
(a) 1 (b) 2
(c) 4 (d) 5

1 1 1
200. If , , are in A.P., then x, y, z are in
x + y 2y y + 2
(a) A.P. (b) G.P.
(c) Cannot determined (d) None of these
❖❖❖
54 Common Proficiency Test (CPT) Volume - II
 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 3 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. ............... is recorded in purchase book.

(a) Credit purchases of goods dealt in by firm
(b) Cash purchases of goods dealt in by firm
(c) All purchases of goods dealt in by firm.
(d) None of the above.
2. When will the bill mature if the date of maturity of a bill is a holiday.
(a) Holiday itself (b) Other agreed day
(c) Preceding working day (d) Next working day
3. Under Bank reconciliation statement while adjusting the cash book
(a) All the errors and omissions in the passbook are taken into consideration
(b) Delays in recording in the passbook due to difference in timing are taken into consideration
(c) All the errors and omission in the cashbook are taken into consideration
(d) All of the above
4. Memorandum joint venture account is a
(a) Personal A/c (b) Real A/c
(c) Nominal A/c (d) None of the above

Common Proficiency Test (CPT) Volume - II 55

MODEL TEST PAPER - 3

5. .................. is not required in Promissory Note

(a) Acceptance (b) Noting
(c) Discounting (d) None of the above
6. Loss leads to a reduction in
(a) Capital (b) Income
(c) Liabilities (d) None of the above
7. Transaction between business and owner are recorded following ________ concept
(a) Periodicity (b) Business Entity
(c) Prudence (d) Going Concern
8. One of the Fundamental accounting assumption is
(a) Materiality (b) Going Concern
(c) Business entity (d) Dual aspect
9. Bhagat Ltd. depreciate machinery by written down value method year after year due to
(a) Consistency (b) Comparability
(c) Convenience (d) All of the above
10. Contra-entries are passed only when
(a) Double column cash book is prepared
(b) Three-column cash book is prepaid
(c) Simple cash book is prepared
(d) None of the above
11. Petty cash balance is
(a) Liability (b) Income
(c) Expense (d) An asset
12. Dividends are usually paid as a percentage of
(a) Net profit (b) Authorised share capital
(c) Called-up capital (d) Paid-up capital
13. A proforma invoice is sent by
(a) Consignee to consignor (b) Consignee to Debtors
(c) Debtors to consignee (d) Consignor to consignee
14. A ............... is sent to a customer when he return the goods
(a) Cheque (b) Proforma invoice
(c) Credit note (d) Debit note

56 Common Proficiency Test (CPT) Volume - II

15. Commission to promote credit sale by consignee is known as
(a) Del-credere commission (b) Over riding commission
(c) Ordinary commission (d) Special commission
16. Generally, when the size of the venture is............... the co-venture keep separate sets of account
for joint venture transactions
(a) Big (b) Medium
(c) Small (d) None of the above
17. The Petty cashier generally works on............... system
(a) Imprest (b) Balancing
(c) Accrual (d) None of the above
18. The amount due to the retiring partner on account of goodwill is debited to the continuing
partners in their........
(a) Gaining ratio (b) Capital ratio
(c) Sacrificing ratio (d) None of the above
19. When money is withdrawn from the bank, the bank............... the account of the customer
(a) Debit (b) Credit
(c) Either (a) or (b) (d) None of the above
20. The Cash discount allowed to a debtor should be credited to
(a) Sales account (b) Discount account
(c) Customer’s/Debtors account (d) None of the above
21. Closing capitals of Amit, Sumit and Vineet were Rs. 50,000, Rs. 45,000 and Rs. 30,000
respectively. Their drawings during the year were Rs. 10,000, Rs. 5,000 and Rs. 12,000
respectively. Amount of net profit earned during the year was Rs. 18000 which was distributed
in the ratio of 3:2:1. Opening capital of Vineet will be
(a) Rs.45,000 (b) Rs.39,000
(c) Rs.56,000 (d) Rs.44,000
22. Ryan Ltd. issued 20,000, 8% debentures of Rs. 10 each at par, which are redeemable after 5
years at premium of 20%. The amount of loss on redemption of debenture to be written off
every year will be
(a) Rs.8,000 (b) Rs.40,000
(c) Rs.20,000 (d) Rs.10,000

Common Proficiency Test (CPT) Volume - II 57

MODEL TEST PAPER - 3

23. Ram and Shyam are partners sharing profits and losses in the ratio 5:3. On admission
Mohan brings Rs. 70,000 cash as capital and Rs. 48,000 against goodwill. New profit sharing
ratio between Ram, Shyam and Mohan are 7:5:4. The sacrificing ratio between Ram and
Shyam will be
(a) 2:1 (b) 5:4
(c) 3:1 (d) 4:2
24. Nikhil of Delhi sent out goods costing Rs. 45,000 to Shyam of Kolkata at cost +33 1/3%. 1/
10th of goods were lost in transit and 2/3rd of the goods are sold at 20% above IP. The
amount of sales value will be
(a) Rs.36,000 (b) Rs.60,000
(c) Rs.54,000 (d) Rs.43,200
25. Debit balance as per cash book of Shyam enterprises as on 31.3.2006 is Rs. 1,500. Cheques
deposited but not cleared amount Rs. 100 and cheque 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) Rs.1,650 (b) Rs.1,600
(c) Rs.1,850 (d) Rs.1,450
26. A business purchased goods for Rs. 10,00,000 and sold 60% of such goods during the financial
year ended 31st March 2005. The market value of the remaining goods was Rs. 3,00,000.
They valued the closing stock at cost. He violated the concept of
(a) Periodicity (b) Cost
(c) Conservatism (d) Money Measurement
27. 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 Account will be
(a) Rs.18,000 (b) Rs.8,000
(c) Rs.10,000 (d) Rs.2,000
28. Ram and Rahim are partners in a firm sharing profits and losses in the ratio 5:3. The firm’s
profit or loss of 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 (b) Rs.6,000
(c) Rs.17,000 (d) Rs.21,000

58 Common Proficiency Test (CPT) Volume - II

29. A cheque of Rs. 1,000 received from Ratnesh was dishonoured and had been posted to the
debit of sales return account. The rectifying journal entry will be.
Rs. Rs.
(a) Sales return A/c Dr 1,000
To Ratnesh 1,000
(b) Ratnesh A/c Dr 1,000
To Sales return A/c 1,000
(c) Ratnesh Dr 1,000
Sales return Dr 1,000
To Suspense A/c 2,000
(d) None of the above
30. If sales revenue are Rs. 3,00,000; cost of goods sold is 2,00,000 and operating expenses are
Rs. 50,000 the gross profit is
(a) Rs.50,000 (b) Rs.1,00,000
(c) Rs.1,50,000 (d) Rs.2,50,000
31. Rs. 5,000 spent on the overhauling of machines purchased second hand is
(a) Deferred revenue expenditure (b) Capital expenditure
(c) Revenue expenditure (d) None of the above
32. Our acceptance to Mr. Ram for Rs. 8,000 renewed for 3 months on the condition that
Rs. 2000 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) Rs.6,270 (b) Rs.8,000
(c) Rs.6,370 (d) Rs.6,000
33. Shyam bought a Guitar of Rs. 1870 by cheque. It has been wrongly posted in the cashbook
as Rs. 1,780. This has the effect of
(a) Decreasing the bank balance by Rs. 180 in the cash book
(b) Increasing the bank balance by Rs. 180 in the cash book
(c) Increasing the bank balance by Rs. 90 in the cash book
(d) Decreasing the bank balance by Rs. 90 in the cash book
34. Mohan, Sohan and Rohan share profits and loss in the ratio of 4:4:2. They have a Joint Life
Insurance Policy of Rs. 1,00,000 whose premium is paid by the firm. Surrender value of the
policy at the beginning of the year 2007 is 80,000. On the death of Mohan on 2nd Jan 2007
the amount to be credited in Rohan’s account will be
(a) Rs.40,000 (b) Rs.16,000
(c) Rs.30,000 (d) Rs.20,000

Common Proficiency Test (CPT) Volume - II 59

MODEL TEST PAPER - 3

35. Books of Ram shows on 1st January 2006 furniture Rs. 20,000. During the year a part of the
furniture whose book value on 1st January 2006 is Rs. 1,200 has been exchanged with another
furniture by paying additional Rs. 500. Ram charge depreciation @ 10% p.a. The net amount
of the furniture to be shown in the balance sheet will be
(a) Rs. 18,478 (b) Rs. 18,600
(c) Rs. 18,504 (d) Rs. 18,784
36. X, Y and Z takes a joint life policy their profit sharing ratio is 2:2:1. On death of B, A and C
decides to share profits equally. They had taken a Joint life policy of Rs. 2,50,000 with the
surrender value Rs. 50,000. What will be the treatment in the partner’s capital account on
receiving the JLP amount if joint life policy is maintained at surrender value along with the
reserve?
(a) Rs. 2,50,000 created to all the partners in old ratio
(b) Rs. 2,00,000 credited to all the partner in old ratio
(c) Distribute JLP reserve account in old profit sharing ratio
(d) Both ‘b’ and ‘c’
37. Mohit Ltd. had 9,000, 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
share issued should be
(a) 11,000 (b) 9,000
(c) 7,000 (d) 10,000
38. Goods costing Rs. 2,00,000 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) Rs.50,000 (b) Rs.40,000
(c) Rs.60,000 (d) Rs.55,000
39. A lease is purchased on 1st January 2005 for 4 years at a cost of Rs. 1,00,000. Lease is to be
depreciated by the annuity method charging 5% interest. Annuity of Re. 1 over 4 years
charging 5% interest is Re. 0.282012. The amount of annual depreciation will be
(a) Rs.26,405 (b) Rs.27,612
(c) Rs.28,201 (d) Rs.28,000
40. Ashok Ltd. purchased land and building from Vivek Ltd. for a book value of Rs. 2,00,000.
The consideration was paid by issue of 12% debentures of Rs. 100 each at a discount of
20%. The debenture account is credited with
(a) Rs.2,50,000 (b) Rs.2,40,000
(c) Rs.2,70,000 (d) Rs.1,90,000

60 Common Proficiency Test (CPT) Volume - II

41. Debit balance as per cash book of ABC enterprises as on 31.3.2006 is Rs. 15,000. Cheque
deposited but not cleared amount to Rs. 1000 and cheque issued but not presented of Rs.
2,000. Balance as per pass book should be
(a) Rs.15,000 (b) Rs.16,000
(c) Rs.14,000 (d) Rs.17,000
42. Goods purchased Rs. 2,00,000. Sales Rs. 1,10,000. Margin 25% on sales. Closing stock is
(a) Rs.90,000 (b) Rs.75,000
(c) Rs.1,17,500 (d) Rs.1,50,000
43. Sohan runs a department store. He renovates his shop to increase its space. The amount of
Rs. 75,000 was incurred on renovation. The amount to be charged to Profit and Loss A/c is
(a) Rs. 75,000 (b) Rs. 10,000
(c) NIL (d) None of the above
44. X of Kolkata sends out goods costing Rs. 3,00,000 to Y of Delhi. Commission agreed is 2%
on sales + 3% on sales as del-credre commission. The entire goods is sold by consignee for
Rs. 4,00,000. However consignee is able to recover Rs. 3,95,000 from the debtors. The amount
of profit to be transferred to P/L as net commission by consignee will be
(a) Rs.16,000 (b) Rs.15,500
(c) Rs.15,000 (d) Rs.17,000
45. Alok and Rohit were partners in a joint venture sharing profits and losses in the proportion
of 3/5th and 2/5th respectively. Alok supplies goods to the value of Rs. 60,000 and incurs
expenses amount Rs. 6,000. Rohit supplies goods to the value of Rs. 16,000 and his expenses
amount to Rs. 3,000. Rohit sells goods on behalf of the joint venture and realises Rs. 1,20,000.
Rohit is entitled to a commission of 5% on sales. Rohit settles his account by bank draft.
How much amount Rohit will pay to Alok as final settlement.
(a) Rs.93,600 (b) Rs.82,000
(c) Rs.83,400 (d) Rs.40,000
46. Ram, Mohan and Sohan are partners in a firm sharing profits and losses in the ratio of
5:3:2. The firm took separate life policy of Rs. 50,000, Rs. 1,00,000 and Rs. 1,50,000 for
Ram, Mohan and Sohan respectively. The share of Mohan in the policy will be
(a) Rs.45,000 (b) Rs.90,000
(c) Rs.80,000 (d) Rs.70,000
47. Rs. 7,000 paid as rent to Sohan, the landlord was debited to Sohan’s personal account. The
error will
(a) Not affect the trial balance
(b) Affect the suspense account
(c) Affect the trial balance
(d) None of the above

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48. Which one of these is not a cause of difference in balance as per pass book and as per cash
book
(a) Errors in cash book
(b) Errors in pass book
(c) Cheques deposited and cleared
(d) Cheques issued but not presented for payment.
49. If average stock = Rs. 20,000. Closing stock is Rs. 4,000 were than opening stock then the
value of closing stock will be
(a) Rs.16,000 (b) Rs.18,000
(c) Rs.20,000 (d) Rs.22,000
50. If sales is Rs. 10,000 and the rate of gross profit on cost of goods sold is 25%, then the cost of
goods sold will be
(a) Rs. 2,000 (b) Rs. 8,000
(c) Rs. 2,500 (d) Rs. 10,000
51. Rajesh of Ramnagar sends out goods costing Rs. 2,00,000 to Gopal of Gujarat.
3/5th of the goods were sold by consignee for Rs. 1,50,000. Commission 2% on sales plus
10% of gross sales less all commission exceeds cost price. The amount of commission will be
(a) Rs. 4,545.45 (b) Rs. 5,454.54
(c) Rs. 6,363.63 (d) Rs. 7,272.72
52. Ankit, Anu and Anurag are partners sharing profits in the ratio 4:3:2. On retirement of
Anu, goodwill was valued Rs. 90,000. The contribution of Ankit and Anurag to compensate
Anu will be
(a) Rs. 20,000 and Rs. 10,000
(b) Rs. 10,000 and Rs. 20,000
(c) Rs. 8,700 and Rs. 97,000
(d) Rs. 10,800 and Rs. 18,200
53. Jai Ltd. purchased machinery from Om Ltd. for Rs. 8,00,000. The consideration was paid
by issue of 15% debentures by Rs. 100 each at a discount of 20%. Number of debentures
issued by Jai Ltd. will be
(a) 8,000 (b) 10,000
(c) 12,000 (d) 15,000
54. Ankur purchased a computer costing Rs. 24000. Repairing expenses Rs.1,500 & other charges
(loading & unloading) Rs. 1500 were incurred by him. He sold the computer at 25% margin
on selling price. The profit on sale will be
(a) Rs. 8,500 (b) Rs. 9,000
(c) Rs. 10,000 (d) Rs. 11,500

62 Common Proficiency Test (CPT) Volume - II

55. Mr. Rakesh Roshan is a partner in a firm. He withdraws Rs. 500 at the beginning of each
month. If the rate of interest is @ 5%, then interest on drawings is
(a) Rs. 55.50 (b) Rs. 157.50
(c) Rs. 160.50 (d) Rs. 162.50
56. Mr. Bajaj who was the holder of 200 Equity shares of Rs. 100 each of Canny Ltd., on which
only Rs. 75 per share has been called up, couldn’t pay his dues on allotment and first class
each at Rs. 25 per share. The director forfeited the above shares and reissued 150 of such
shares to Mr. Birla at Rs. 65 per share paid up as Rs. 75 per share. The amount to be
transferred to capital reserve account will be
(a) Rs. 1,500 (b) Rs. 2,250
(c) Rs. 2,750 (d) Rs. 3,250
57. On 1.4.07 Mr. Rahul draws a bill of one month on Mr. Sachin for Rs. 1,00,000. At maturity
Mr. Sachin request to accept Rs. 20,000 in cash and noting charges Rs. 1,000 and for the
balance Mr. Rahul draws a bill on Sachin for 2 months at 12% p.a. Interest will be
(a) Rs. 1,200 (b) Rs. 1,300
(c) Rs. 1,400 (d) Rs. 1,600
58. Opening stock of material is Rs. 12000, purchases Rs. 30,000 carriage Rs. 5,000, Sales value
Rs. 40,000, closing stock 14,000 & other indirect expenses Rs. 2,300. Amount of Gross Profit
will be
(a) Rs. 7,000 (b) Rs. 4,700
(c) Rs. 6,300 (d) Rs. 5,000
59. A promissory note does not require
(a) Discounting (b) Acceptance
(c) Noting (d) All of the above
60. Errors are .................. mistakes
(a) Intentional (b) Undetected
(c) Unintentional (d) None of the above
SECTION – B : MERCANTILE LAWS (40 MARKS)

61. Which Section of the Partnership Act, 1932 deals with “Minor admitted to the benefits of
partnership”.
(a) Section 26 (b) Section 17
(c) Section 30 (d) Section 39
62. The reconstitution of the firm takes place in case of
(a) Admission of a partner (b) Retirement of a partner
(c) Expulsion or death of a partner (d) All of the above.

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63. Which of the following is not an essential feature of partnership?

(a) Result of an agreement
(b) Organised to carry on business
(c) Carried on by all any of them acting for all
(d) Separate legal entity
64. Which of the following is not the right of unpaid seller?
(a) To resell
(b) To stop the goods in transit
(c) Of lien
(d) To demand back the goods.
65. Breach of contract may be
(a) Actual breach of contract
(b) Anticipatory breach of contract
(c) (a) or (b)
(d) (a) not (b)
66. An anticipatory breach does not give any right to claim
(a) Damages (b) Compensation
(c) Either (a) or (b) (d) Both (a) and (b)
67. A contract can be discharged by operation of law in which of the following ways
(a) Death of Promisor (b) Insolvency of Promisor
(c) Merger of Rights (d) All of the above
68. Acceptance is complete for the offer
(a) When it is posted
(b) When the offer thinks to accept the offer
(c) When it is re-posted
(d) None of these
69. In a bilateral contract, obligations are outstanding
(a) An offeror (b) An offeree
(c) On Both (d) On none
70. Fine may be made the essence of a contract by self sequent notice also. Statement is
(a) True (b) Partly true
(c) False (d) Partly false
71. When a partner declared insolvent he ceases to be a partner from the date of its
(a) Insolvency (b) Birth
(c) Appointment (d) None of the above

64 Common Proficiency Test (CPT) Volume - II

72. It is the duty of the finder of goods to trace the true owner of the goods, and if does not do so,
he shall be guilty of
(a) Theft
(b) Extortion
(c) Criminal misappropriation of property
(d) None of the above
73. A person who supplies “necessaries” to a minor is entitled to be reimbursed from the property
of the minor on the basis of a
(a) Valid contract (b) Voidable contract
(c) Quasi contract (d) Contingent contract
74. Which of the following constitute responsibility of finder of lost goods?
(a) He shall take reasonable steps to trace the owner
(b) He shall take care of the goods
(c) If the goods are in a deteriorated or wrong condition, sell them off and remit the proceeds
to the owner
(d) All of the above
75. Where price of goods sold is to be fixed by a third party and the third party refuses to fix the
price, the contract becomes
(a) Void (b) Voidable
(c) Illegal (d) Void and illegal
76. Where seller delivers to the buyer a quantity of goods less than the contracted to sell, the
buyer
(a) May reject them
(b) Should not reject them as more quantity might be supplied
(c) May resell them
(d) Give less price for them
77. Section 60 of the Sale of Goods Act, 1930 applies where the contract of sale is repudiated by
either party
(a) Before the date of payment of price
(b) Before the date of delivery of goods
(c) (a) and (b)
(d) (a) or (c)
78. Delivery of goods to the carrier would not pass the property in the goods to the buyer where
the seller
(a) Reserves the right to disposal
(b) Does not reserve the right to disposal
(c) (a) or (b)
(d) None of the above

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79. A contract to do or to abstain from doing a certain thing on the happening of an event
(a) Cannot be enforced
(b) Can be enforced when the event has happened
(c) Can be enforced at any time
(d) Can not be lawful
80. A person having possession of goods under voidable contract can sell the goods before
_________ of the contract by the agreed party.
(a) Confirmation (b) Execution
(c) Rescission (d) Ratification
81. When the seller gives physical delivery of the goods to the buyer it is called ________ delivery.
(a) Systematic (b) Actual
(c) Construction (d) Symbolic
82. Section 41 of the Sale of Goods Act, deals with examination of goods by the ________.
(a) Buyer (b) Seller
(c) (a) or (b) (d) (a) and (b)
83. The right of lien is lost by the unpaid seller, under the situation stated in Section _________
of the Sale of Goods Act.
(a) 50 (b) 49
(c) 48 (d) 47
84. If the changes taking place in a registered firm are not registered with the registrar of firms,
it is _________.
(a) No more a registered firm
(b) Needs to be re-registered
(c) Cannot file suit against other party
(d) Can not claim its statutory rights
85. The public notice is not required if partner __________.
(a) Retires (b) Expelled
(c) Dies (d) Either (a) or (b)
86. Expulsion of a partner is dealt with under Section ________ of the Partnership Act, 1932.
(a) 23 (b) 32
(c) 33 (d) 43
87. ____________ means a claim to any debt or any beneficial interest in movable property not
in possession and which can be enforced through the court of law.
(a) Actionable claim (b) Auctionable claim
(c) Default claim (d) None of the above

66 Common Proficiency Test (CPT) Volume - II

88. Where a buyer neglects to accept delivery of the goods, the seller may sue for ________.
(a) Payment of price
(b) Damages for non acceptance
(c) Damages for non acceptance and charges for care and custody of the goods
(d) All of the above
89. Where in an auction sale, the seller appoints more than one bidder, the sale is_________.
(a) Void (b) Illegal
(c) Conditional (d) Voidable
90. A ___________ is a right to retain the possession of goods until the payment of the price of
such goods.
(a) Capture (b) Lien
(c) Surrender (d) Sue
91. Knock-out agreements are generally _________ in auction sale.
(a) Unlawful (b) Not unlawful
(c) Void (d) Required
92. A buyer can sue for specific performance of the contract if the goods are _______.
(a) Specific (b) Future
(c) Contingent (d) Perishable
93. Section 52 deals with the rights when partnership contract is rescinded for _______.
(a) Fraud (b) Misrepresentation
(c) (a) or (b) (d) (a) nor (b)
94. A partner may be expelled by a _______ decision.
(a) Unanimous (b) Managing partner’s
(c) Majority (d) Senior partner’s
95. The Registrar of firms is deemed to be a _______ under Section 21 of the Indian Penal Code.
(a) Government servant (b) Civil Servant
(c) Public servant (d) None of the above
96. Partnership property vest in the ________.
(a) Firm (b) Partner of the firm
(c) Continuing partners of the firm (d) Retiring partners of the firm
97. Which one of the following is not an implied warranty?
(a) Agreement to sell (b) Sale
(c) Hire purchase (d) Installment to sell

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98. Whether a given contract is one of sale or same other kind of contract in respect of goods, is
a matter of _________.
(a) Terminology (b) Law
(c) Agreement (d) All of the above
99. ‘A’ leaves a cow in the custody of ‘B’ to be taken care of. The cow gives birth to a calf. Decide
the liability of ‘B’.
(a) B is not bound to deliver the cow as well as to calf to A
(b) ‘B’ is bound to deliver the cow as well as the calf to ‘A
(c) ‘B’ is bound to deliver only the calf to A
(d) ‘B’ is bound to deliver the cow only to A
100. ‘B’ agrees to buy the entire crop of wheat that would yield in ‘A’s farm, at the rate of Rs.
1,000 per quintal. Decide the subject matter of goods.
(a) This is an agreement of sale of future goods
(b) This is an agreement of sale of present goods
(c) This is a contract of sale
(d) None of the these
SECTION – C : GENERAL ECONOMICS (50 MARKS)

101. The definition “Science which deals with wealth” was given by:
(a) Alfred Marshall (b) A.C. Pigou
(c) Adam Smith (d) J. B. Say
102. Questions like what should be the level of national income, what should be the wage rate fall
within the scope of:
(a) Positive Science (b) Normative Science
(c) Both (a) and (b) (d) None of the above
103. The shape of PPC is concave due to:
(a) Falling opportunity cost between two goods
(b) Rising opportunity cost between two goods
(c) Constant opportunity cost between two goods
(d) None of the above
104. Which of the following is not one of the features of capitalist economy?
(a) Right of private property
(b) Freedom of choice by the consumers
(c) No profit, No Loss motive
(d) Competition

68 Common Proficiency Test (CPT) Volume - II

105. Calculate Income-elasticity for the household when the income of a household rises by 10%
the demand for T.V. rises by 20%
(a) + .5 (b) - .5
(c) +2 (d) -2
106. In case of necessaries the marginal utilities of the earlier units are large. In such cases the
consumer surplus will be:
(a) Infinite (b) Zero
(c) Marginally positive (d) Marginally Negative
107. Which is not the assumption of Indifference curve Analysis?
(a) The consumer is rational and possesses full information about all the aspects of economic
environment
(b) The consumer is not capable of ranking all combinations
(c) If consumer prefers combination A to B, and B to C, then he must prefer combination A to C
(d) If combination A has more commodities than combination B, then A must be preferred to B.
108. The horizontal demand curve parallel to x-axis implies that the elasticity of demand is
(a) Zero
(b) Infinite
(c) Equal to one
(d) Greater than zero but less than infinity
109. Which of the following is not the characteristic of Labour?
(a) Labour is highly ‘Perishable’ in the sense that a day’s labour lost cannot be completely
recovered
(b) Labour is inseparable from the labourer himself
(c) Labour has a strong bargaining power
(d) The supply of labour and wage rate are directly related in the initial stages
110. Indicate which of the following is a variable cost?
(a) Payment of rent on building
(b) Cost of Machinery
(c) Interest payment on Loan taken from bank
(d) Cost of raw material
111. Marginal costs are closely associated with:
(a) Variable cost (b) Total fixed cost
(c) Average cost (d) Total cost
112. The present cash reserve ratio as in (May 2007) is:
(a) 5% (b) 5.5%
(c) 6% (d) 6.5%

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113. Population per Bank Office at present is:

(a) 5,000 (b) 55,000
(c) 16,000 (d) 18,000
114. The Highest Deposit Mobilisation is in:
(a) Delhi (b) Gujarat
(c) Maharashtra (d) Punjab
115. Total bank lending was just ——— in June, 1969
(a) 9,933 crore (b) 3,399 crore
(c) 1,000 crore (d) 10,000 crore
116. ————— means integrating the domestic economy with the world economy
(a) Disinvestment (b) Liberalisation
(c) Privatisation (d) Globalisation
117. In World Trade Organization, each member country has:
(a) One vote
(b) Depends upon National Income of the nation
(c) Depends upon UNO ranking
(d) Depends upon whether the country is developed, developing or underdeveloped
118. NRIs are allowed to remit upto ——— per calendar year out of their Non - resident ordinary
accounts / sale proceeds of assets.
(a) $ 25,000 (b) $ 25 million
(c) $ 1 million (d) $ 5,000
119. India achieved full convertibility on current account in:
(a) 1994 (b) 1991
(c) 2001 (d) 2005
120. Current account convertibility means freedom to buy and sell foreign exchange for the
following transactions except:
(a) All payment for purchase and sale of goods and services
(b) Payment due as interest on loans
(c) Moderate remittances for family living expenses
(d) Purchase of immovable property abroad
121. Which one of the following is not a method of disinvestment?
(a) Equity offer (b) Cross holding
(c) Warehousing (d) None of the above

70 Common Proficiency Test (CPT) Volume - II

122. Cash compensatory scheme was abolished in:
(a) 1992 (b) 1999
(c) 1991 (d) False. It is still continuing
123. Export promotion capital goods scheme was liberalized in April 1992 to:
(a) To encourage Export of Capital Goods
(b) To encourage Import of Capital Goods
(c) Both (a) and (b)
(d) None of the above
124. As per RBI recommendations Basel II framework has to be operationalised by:
(a) March, 2008 (b) March, 2009
(c) March, 2007 (d) March, 2010
125. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, was passed for assisting banks:
(a) In the recovery of their loans
(b) To give more loans on lesser security
(c) To give loans by taking more security
(d) None of the above
126. Which of the following is not the problem of India’s Education System?
(a) Unplanned expansion of higher education
(b) Neglect of primary education
(c) Large number of unemployed uneducated people
(d) Large scale migration of educated people to the developed western countries
127. VPT stands for:
(a) Village Public Telephone (b) Value Public Telephone
(c) Various Public Telephone (d) Valmiki Public Telephone Yojna
128. Which of the following is not the factor for poor growth of coastal shipping?
(a) High transportation costs (b) Port delays
(c) Over - aged vessel (d) Fast handling of the cargo at ports
129. Price discrimination is not possible:
(a) Under Monopoly (b) Under Monopolistic competition
(c) Under perfect competition (d) Under any market form
130. Most of the unemployment in India is:
(a) Voluntary (b) Structural
(c) Frictional (d) Technical

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131. Which of the following has not been a part of the land reforms programme in India?
(a) Ceiling an holding (b) Consolidation of holding
(c) Abolition of zamindari system (d) Agricultural holding tax
132. Disguised unemployment in India is maximum in:
(a) Agricultural Sector (b) Secondary Sector
(c) Tertiary Sector (d) Both (a) and (c)
133. Which of the following is an economic activity?
(a) Seeing T.V.
(b) Teaching one’s own son at home
(c) Medical Facilities rendered by a charitable hospital
(d) A housewife preparing food for the household
134. The cost incurred on the factor of production is known as:
(a) Accounting cost (b) Economic cost
(c) Marginal cost (d) Implicit cost
135. Which of the following is considerered as economic cost?
(a) The normal return on money capital invested
(b) Salary of entrepreneur
(c) The interest on capital invested
(d) All of the above
136. Economic cost means
(a) Accounting cost + Implicit cost (b) Accounting cost + Marginal cost
(c) Cash cost + Opportunity cost (d) Implicit cost
137. When is average product at its maximum point
(a) When A.P. intersects M.P. (b) When A.P. intersects T.P.
(c) When M.P. is highest (d) At the point of inflexion
138. When is TP maximum?
(a) When AP becomes Zero
(b) When MP becomes Zero
(c) At the interesting point of AP and MP
(d) When MP is highest
139. Variable cost includes the cost of
(a) Buying land and building
(b) Hire charges of machinery
(c) Insurance premium
(d) Material bought

72 Common Proficiency Test (CPT) Volume - II

140. Which of the following is correct?
(a) Marginal cost is always less than the average cost.
(b) Marginal cost is always more than the average cost.
(c) Marginal cost is always equal to the average cost at its minimum point.
(d) Marginal cost is always equal to the average cost
141. When average cost curve is rising then, marginal cost
(a) Must be decreasing (b) Must be above the average cost curve
(c) Must be constant (d) Must be equal to average cost
142. Which among the following is NOT a cause of sickness of industrial units in India?
(a) Outdated Technology (b) Labour Problems
(c) Faulty Location (d) Lack of capital account convertibility
143. Which of the following is not a factor payment?
(a) Free uniform to defense personal
(b) Salaries to the member of Parliament
(c) Imputed rent of an owner occupied premises
(d) Scholarship given to the backward class students
Use following table to answer the below mentioned questions and (144 – 145)
Hours of Total Marginal
Labour Output Output
0 -
1 350 350
2 - 230
3 670 -
144. What is the marginal output when 3rd hour of labour is employed?
(a) 90 (b) 670
(c) 350 (d) 230
145. What is the total output when 2 hours of labour are employed?
(a) 500 (b) 580
(c) 680 (d) 780
146. Which of the following is not the name of LAC curve?
(a) Planning curve (b) Enveloping curve
(c) Round curve (d) None of the above

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147. A firms average fixed cost is Rs.20 at 6 units of output. What will it be at 4 units of output:
(a) Rs. 60 (b) Rs. 30
(c) Rs. 40 (d) Rs. 20
148. A firm has producing 7 units of output has an average total cost of Rs. 150 and has to
pay Rs. 350 to its fixed factors of production whether it produces or not. How much of
the average total cost is made up of variable cost?
(a) 200 (b) 50
(c) 300 (d) 100
149. A firm has variable cost of Rs.1,000 at 5 units of output. If fixed cost are Rs.400, what will be
the average total cost at 5 units of output?
(a) 380 (b) 280
(c) 60 (d) 400
150. The vertical difference between TVC and TC is equal to:
(a) MC (b) AVC
(c) TFC (d) None of the above
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. The ratio of the sum and the difference of two numbers is 7:1. Find the ratio of those two
numbers.
(a) 5:3 (b) 4:3
(c) 4:5 (d) None of these
152. The difference between a two digit number and the number obtained by inter–changing the
digit is 54. What is the difference of the two digits of the number?
(a) 4 (b) 3
(c) 6 (d) None of these
153. The numerator of a fraction is 4 less than its denominator. If the numerator is decreased by
2 and the denominator is increased by 1, then the denominator is eight times the numerator.
Then the fraction is
(a) 3/7 (b) 4/7
(c) 9/7 (d) None of these
154. Father is six times as old as his son. Four years hence he will be four times as old as his son.
Then the present ages are
(a) 42, 8 (b) 36, 6
(c) 40, 10 (d) None of these

74 Common Proficiency Test (CPT) Volume - II

155. Find the value of 1 + 2 + 3 + …………….+ 105
(a) 5000 (b) 5560
(c) 5565 (d) None of these

0.03
156. If log3 = 0.48 and log 7 = 0.84, then the value of log is
0.7
(a) – 2.26 (b) – 3.26
(c) – 1.36 (d) None of these

157. Evaluate 4
0.5173
(a) 0.8480 (b) 0.8210
(c) 0.6480 (d) None of these

0.7214 × 20.37
158. Evaluate 3
69.8
(a) 1.5948 (b) 0.5948
(c) 0.2348 (d) None of these
159. A sum of Rs. 4,000 is invested in an account that pays 6% interest compounded annually. If
yields Rs. 5,353 after a number of years. Determine the number of years for which the sum
was inverted.
(a) 8 (b) 5
(c) 10 (d) None of these

23
160. If log2 x + log8x + log32x = then the value of x is
15
(a) 8 (b) 5
(c) 2 (d) None of these
161. The number of ways in which n different books can be arranged in an almirah so that two
particular books are always together is –
(a) n!×2! (b) (n–1)! × 2!
(c) (n–2)! (d) None of these
162. There are 3 copies each of two books and two copies each of five books. In how many ways
can a book seller arrange the 16 books in a shelf so that the copies of the same book are never
separated?
(a) 5040 (b) 5000
(c) 5030 (d) None of these

Common Proficiency Test (CPT) Volume - II 75

MODEL TEST PAPER - 3

163. How many words can be formed with the letters of the world “PARALLEL” so that all U’s
do not come together?
(a) 2000 (b) 3000
(c) 4000 (d) None of these
164. Find the sum of four digit numbers made by the given digits 1, 3, 3, 0?
(a) 22554 (b) 22550
(c) 22,000 (d) None of these
165. There are stalls for 10 animals in a ship. In how many ways can the shipload be made, if
there cows, calves and horses to be transported, animals of each kind being not less than 10?
(a) 59040 (b) 59049
(c) 59149 (d) None of these

∫x 3 + 5x4 dx
3
166. Evaluate

1 1
( 6x 3 + 11) + c ( 3 + 5x 4 ) + c
3/2 2/3
(a) (b) −
9 9
1
( 3 + 5x 4 ) + c
3/ 2
(c) (d) None of these
30

2x + 1
167. Evaluate: ∫ x(x + 1) dx
(a) log (x2 – x) + c (b) log (x2 + x) + c
(c) log (x2 + 1) + c (d) None of these

dx
168. Evaluate: ∫ x+ x

(a) 2 log (x + 1)+c (b) –2log ( x + 1)+c

(c) 2 log ( x + 1)+c (d) None of these

log x
169. Evaluate ∫ 3x
dx

1
( ) 1
( )
2
(a) log x +c (b) log x + c
3 3x

(c)
1 ⎡
3x ⎣
(
log 3x + x ⎤ + c
⎦ ) (d) None of these

76 Common Proficiency Test (CPT) Volume - II

 ∫e × x 2dx
2x
170. Evaluate

x 3 3x x 2 e 2x e 2x x 2 e 2x xe 2x e 2x
(a) e − + +c (b) − + +c
3 2 4 2 2 4
x 3e 2x x 2 e x
(c) − +c (d) None of these
3 2

5
x2
171. Evaluate: ∫ 2 dx
0
x + (5 − x)2

(a) 0 (b) 1
(c) –1 (d) None of these

2x − 1
172. Evaluate: lim
x →0 1+ x –1
(a) 2 log 2 (b) log 2
(c) 0 (d) None of these

| x –1|
173. Evaluate: lim
x→0 x –1
(a) –1 (b) 1
(c) Does not exist (d) None of these

x– | x |
174. If f(x) = , x ≠ 0 and f(x) = 2 for x = 0 is f(x) continuous at x = 0?
x
(a) Yes (b) No
(c) Cannot say (d) None of these

dy
175. If y = log3 log3 x, find
dx

1 −1
(a) (b)
x log 3.log x x log 3.log x
1
(c) (d) None of these
log 3.log x

Common Proficiency Test (CPT) Volume - II 77

MODEL TEST PAPER - 3

176. A sum of money is put at compound interest for 2 years at 20% p.a. It would earn Rs. 482
more, if the interest were payable half-yearly than it were payable yearly; then the sum is
(a) Rs. 20,000 (b) Rs. 25,000
(c) Rs. 26,000 (d) None of these
177. What is the amount of an annuity if the size of the each payment is Rs. 3,000 payable at the
end of each year for 3 years at an interest rate of 9% compounded annually?
(a) Rs. 9,000 (b) Rs. 9,800.50
(c) Rs. 9,833.33 (d) None of these
178. Find the present value of an annuity of Rs. 1,000 payable at the end of each year for 10 years,
if the money is worth 5% effective.
(a) Rs. 7,724 (b) Rs. 7000
(c) Rs. 8000 (d) None of these
179. A company sets aside a sum of Rs. 45,000 annually for 9 years to pay off a debenture issue of
Rs. 5,00,000. If the fund accumulates at 6% p.a., find the surplus after full redemption of the
debenture issue.
(a) Rs. 15,500 (b) Rs. 16,500
(c) Rs. 17,500 (d) None of these
180. A company may obtain a machine either by leasing it for 5 years, (useful life) at an annual
rent of Rs. 2,000 or by purchasing it for Rs, 8,100. If the company can borrow money at 10%
p.a., which alternative is preferable?
(a) Leasing is preferable (b) Leasing is not preferable
(c) Cannot say (d) None of these
181. The sum of deviations of the given values from their ………… is always 0.
(a) Arithmetic Mean (b) G.M.
(c) H.M. (d) Median
182. The sum of squares of the deviations of the given values from their ………… is minimum.
(a) Arithmetic Mean (b) Median
(c) Mode (d) None of these
183. Which is greatly affected by the extreme values?
(a) Arithmetic Mean (b) Median
(c) Mode (d) None of these
184. Which is not amenable to further algebraic treatment?
(a) Arithmetic Mean (b) Median
(c) Mode (d) Both (b) and (c)

78 Common Proficiency Test (CPT) Volume - II

185. In a frequency distribution, the mid value of a class is 15 and the class interval length is 4.
The lower limit of the class is
(a) 10 (b) 12
(c) 13 (d) 14
186. During a certain period, the cost of living index number goes up from 110 to 200 and the
salary of the worker is also raised from Rs. 3,250 to Rs. 5,000. Find the value of salary in real
terms?
(a) Rs. 5,800 (b) Rs. 5,909
(c) Rs. 5,900 (d) None of these
187. When the prices or quantities of all the goods are charging in the same ratio then the
Laspeyre’s and Paasche’s Index Number will be
(a) Equal (b) Unequal
(c) Either (a) or (b) (d) None of these
188. Between 1990 and 2000, the price of a commodity increased by 60% while the production
decreased by 30%. By what percentage did the value index of production of commodity
change in 2000 with respect to its value 1990.
(a) 10% (b) 15%
(c) 12% (d) None of these
189. The consumer price index over a certain period increased from 120 to 215 and the wages of
worker increased from Rs. 1,680 to Rs. 3000. What is the loss of the worker?
(a) 5.58 (b) 6.58
(c) 7.58 (d) None of these
190. The consumer price index for a group of workers was 250 in 1994 with 1980 as the base.
Compute the purchasing power of a rupee in 1994 Compared to 1980.
(a) 0.40 (b) 0.50
(c) 0.60 (d) None of these
191. Three groups of children contain respectively 3 girls and 1 boys; 2 girls and 2 boys; 1 girl
and 3 boys. One child is selected at random from each group. Then the chance that the three
selected consist of 1 girl and 2 boys is:

17 15
(a) (b)
32 32
13
(c) (d) None of these
32

Common Proficiency Test (CPT) Volume - II 79

MODEL TEST PAPER - 3

192. A, B, C are three mutually exclusive and exhaustive events associated with a random
experiment. Find P(A), given that P(B) = 3/2 P(A) and P(C) = 1/2 P (B)

3 4
(a) (b)
13 13
5
(c) (d) None of these
13
193. A committee of four has to be formed from among 3 economists, 4 engineers, 2 statisticians
and 1 doctor. What the probability that the committee consists of the doctor and at least one
economist?
(a) 0.3048 (b) 0.6048
(c) 0.9048 (d) None of these
194. The probability that a company executive will travel by plane is 2/3 and that he will travel
by train is 1/5. Find the probability of his traveling by plane or train.

11 13
(a) (b)
55 15
14
(c) (d) None of these
15
195. The probability that a contractor will get a plumbing contract is 2/3, and the probability
that he will not get an electric contract is 5/9. If the probability of getting at least one contract
is 4/5. What is the probability that he will get both the contracts?

14 13
(a) (b)
45 45
11
(c) (d) None of these
45
196. The mean of normal distribution is 50 and 5% of the values are greater than 60; then the
Standard Deviation of the distribution is: (Given the area under Standard Normal Curve
between z = 0 & z = 1.64 is 0.45)
(a) 6.7 (b) 7.6
(c) 6.82 (d) None of these
197. The mean monthly expenditure of a batch of students is Rs. 100 with standard deviation Rs.
20. If the expenditure is normally distributed find out the maximum expenditure of those
10% of the students whose expenditure is the lowest.
(a) Rs. 80 (b) Rs. 80.50
(c) Rs. 74.40 (d) None of these

80 Common Proficiency Test (CPT) Volume - II

198. The mean monthly expenditure of a batch of students is Rs. 100 with standard deviation Rs.
20. If the expenditure is normally distributed find the minimum expenditure of those 10%
of the students whose expenditure is the highest.
(a) Rs. 150 (b) Rs. 125.60
(c) Rs. 125.80 (d) None of these
199. Find the mean and Standard Deviation of a normal distribution, when 8% of the items are

⎡ 0.496 1.405
⎤
over 64 and 31% are under 45. ⎢
⎣
Given : ∫
0
f(z)dz = 0.19 & ∫
0
f(z)dz = 0.42 ⎥
⎦
(a) 50,10 (b) 60,10
(c) 60, 20 (d) None of these
200. Marks obtained by a number of students are assumed to be normally distributed with mean
65 and variance 25. If 3 students are taken at random what is the probability that exactly
two of them will have marks over 70?
(a) 0.07 (b) 0.08
(c) 0.06 (d) None of these

❖❖❖

Common Proficiency Test (CPT) Volume - II 81

 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 4 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. Which error cannot be revealed on the preparation of trial balance?

(a) Wrong totaling of account
(b) Compensatory error
(c) Error of commission
(d) Wrong balancing of an account
2. A change in accounting policy is justified
(a) To comply with accounting standard
(b) To ensure more appropriate presentation of the financial statement of the enterprise
(c) To comply with law
(d) All of the above.
3. The determination of expenses for an accounting period is based on the principle of
(a) Periodicity (b) Matching
(c) Materiality (d) Objectivity

4. In the case of downward revaluation of an asset, which is for the first time revalued,
................account is debited.
(a) Fixed Asset (b) Revaluation Reserve
(c) Profit and Loss A/c (d) General Reserve

Common
83 Proficiency Test (CPT) Volume - II 83
MODEL TEST PAPER - 4

5. Parties to a bill of exchange are

(a) Drawee (b) Payee
(c) Drawer (d) All of the above

6. Inventories should be generally valued at lower of cost or............

(a) Present value (b) Net Realisable Value
(c) Replacement Value (d) Fair Market Value

7. The value of on asset after deducting depreciation from the historical cost is known as
(a) Fair Value (b) Market Value
(c) Net Realisable Value (d) Book Value

8. Fluctuating capital account is credited with..........

(a) Profit of the year (b) Interest on capital
(c) Salaries of the partner (d) All of the above

9. The amount of calls in arrear is deducted from...............to arrive at.........

(a) Paid up capital, called up capital (b) Called up capital, paid up capital
(c) Issued capital, called up capital (d) Called up capital, Issued capital

10. Debit balance as per pass book means

(a) Bank overdraft as per cash book (b) Debit balance in pass book
(c) Cash balance with bank (d) None of the above
11. If del-credere commission is allowed for bad debt consignee will debit the bad debt amount
to :
(a) Debtors A/c (b) General Trading A/c
(c) Commission Earned A/c (d) Consignee A/c
12. Accommodation bill is drawn
(a) To finance actual purchase or sale of goods
(b) To facilitate trade transmission
(c) To cater the fund requirements of both the parties
(d) None of the above
13. Accounts receivable normally has...........balance
(a) Credit (b) Debit
(c) Unfavourable (d) None of the above
14. The un-expired portion of capital expenditure is shown in the financial statement
(a) As a liability (b) As an asset
(c) As an Income (d) As an expense

84 Common Proficiency Test (CPT) Volume - II

15. Rs. 5,000 spent on maintenance of computer is...........
(a) Deferred capital expenditure (b) Capital expenditure
(c) Revenue expenditure (d) None of the above
16. The assumption underlying the fixed instalment method of depreciation is that of.........of the
asset over its useful life
(a) Equal usage (b) Usage
(c) Charge (d) None of the above
17. Abnormal loss on consignment is credited to........
(a) Consignment account (b) Consignee’s account
(c) Profit & loss account (d) None of the above
18. .............will generally show a debit balance
(a) Bank loan (b) Bad debts recovered
(c) Drawings (d) Salary payable
19. Memorandum joint venture account is a
(a) Nominal A/c (b) Real A/c
(c) Personal A/c (d) None of the above
20. The portion of the acquisition cost of the asset yet to be allocated is known as........
(a) Salvage value (b) Realisable Value
(c) Accumulated value (d) Written down value
21. XYZ Ltd. purchased goods for Rs. 25,00,000 and sold 80% of such goods during the
accounting year ended 31st March 2005. The Market Value of the remaining goods was Rs.
4,00,000. The company valued the closing stock at cost. They violated the concept of
(a) Conservatism (b) Money Measurement
(c) Periodicity (d) Cost
22. Rohan, Mohan and Sohan are partners in the firm sharing profits and losses in 5:3:2 ratio.
The firm’s balance sheet as on 31.3.2006 shows the reserve balance of Rs. 25,000. Profit of
the last year Rs. 1,00,000, joint life policy of Rs. 5,00,000, fixed asset of Rs. 50,00,000. On 1st
October Rohan died and on the same date assets were revalued. The executor of the deceased
partner will get........... along with the capital of Rohan
(a) Share in joint life policy
(b) Share in reserve account the firm
(c) Proportionate share of profit upto the date of death
(d) All of the above

Common Proficiency Test (CPT) Volume - II 85

MODEL TEST PAPER - 4

23. A building purchased on 1st January 2003 at Rs. 15,00,000 having useful life of 15 years was
depreciated on straight line basis. On 1st January 2006 the same building was revalued
upward by Rs. 3 lakhs. The revised amount of depreciation for the year 2006 will
(a) Rs. 1,33,000 (b) Rs. 1,26,000
(c) Rs. 1,25,000 (d) Rs. 1,30,000
24. Gopal sent out certain goods to Ramesh of Delhi. 1/10th of the goods were lost in transit.
Invoice value of goods lost is Rs. 12,500. Invoice value of goods sent out on consignment will be
(a) Rs. 1,25,000 (b) Rs. 1,20,000
(c) Rs. 1,40,000 (d) Rs. 1,00,000
25. Ram drew a bill on Shyam for Rs. 50,000 for 3 months proceeds of which are to be shared
equally. Ram got the bill discounted at 12% p.a. and remits proceeds to Shyam. The amount
of such remittance will be
(a) Rs. 16,167 (b) Rs. 32,333
(c) Rs. 24,250 (d) Rs. 25,000
26. If sales are Rs. 2,000 and the rate of gross profit on cost of goods sold is 25% than the cost of
goods sold will be
(a) Rs. 1,600 (b) Rs. 1,700
(c) Rs. 1,500 (d) Rs. 1,800
27. The profit of last three years are Rs. 42,000, Rs. 39,000 and Rs. 45,000. Find out the goodwill
at two year’s purchase.
(a) Rs. 1,26,000 (b) Rs. 42,000
(c) Rs. 36,000 (d) Rs. 84,000
28. If a purchase return of Rs. 1,000 has been wrongly posted to the debit of the sales return
account, but has been correctly entered in the suppliers account then the total of the
(a) The credit side of the trial balance will be 2000 more than the debit side
(b) The debit side of the trial balance will be 2000 more than the credit side
(c) Trial balance would show the credit side to be Rs. 1000 more than the debit
(d) Trial balance would show the debit side to be Rs. 1000 more than the credit
29. 10000 equity shares of Rs. 10 each were issued to public at a premium of Rs. 2 per share.
Applications were received for 12,000 share. Amount of securities premium account will be
(a) Rs. 40,000 (b) Rs. 20,000
(c) Rs. 16,000 (d) Rs. 24,000
30. Rachna and Payal are partners sharing profits and losses equally. They admitted Ashna for
1/3 share in the firm. The new profit sharing ratio will be
(a) 2:2:1 (b) 3:2:1
(c) 1:2:1 (d) 1:1:1

86 Common Proficiency Test (CPT) Volume - II

31. Rohit purchased a machine on 1.1.2005 for Rs. 1,20,000 installation expenses were Rs. 10,000.
Residual value after 5 years Rs. 5,000. On 01.02.2005 expenses for repair were incurred to
the extent of Rs. 2,000. Depreciation is provided under straight line method. Annual
depreciation is
(a) Rs. 20,000 (b) Rs. 22,000
(c) Rs. 25,000 (d) Rs. 26,000
32. 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 year’s
purchase of super profit is
(a) Rs. 15,000 (b) Rs. 10,000
(c) Rs. 20,000 (d) None of the above
33. Ansh and Vansh entered into a joint venture where Ansh purchased goods costing Rs.2,40,000.
Vansh sold goods costing Rs. 1,60,000 at Rs. 2,40,000. Balance goods were taken over by
Ansh at same gross profit percentage as in case of sale. The sale value of goods taken over
will be
(a) Rs. 40,000 (b) Rs. 1,00,000
(c) Rs. 1,20,000 (d) Rs. 80,000
34. 18% investment of Rs. 1,00,000 and interest received on investment Rs. 15,000 have been
given in the trial balance for the period ended on 31.3.2006. The amount of interest outstanding
in the final accounts will be
(a) Rs. 3,000 (b) Rs. 15,000
(c) Rs. 4,000 (d) Rs. 8,000
35. A draws a bill on B for Rs. 30,000 for mutual accommodation. A discounted that bill for Rs.
28,000 from bank and remitted Rs.14,000 on B. On due date A will send to B
(a) Rs. 15,500 (b) Rs. 15,700
(c) Rs. 17,000 (d) Rs. 15,000
36. If sales revenue is Rs. 4,00,000, cost of goods sold is Rs. 3,10,000 and operating expenses are
Rs. 60,000, the gross profit is
(a) Rs. 90,000 (b) Rs. 60,000
(c) Rs. 30,000 (d) Rs. 2,50,000
37. Average stock = Rs. 12,000. Closing stock is Rs. 3,000 more than opening stock. The value of
closing stock will be
(a) 24,000 (b) 12,000
(c) 10,500 (d) 13,500

Common Proficiency Test (CPT) Volume - II 87

MODEL TEST PAPER - 4

38. Goods costing Rs. 2,00,000 sent out to consignee at cost + 25%. Invoice value of the goods
will be
(a) Rs. 2,40,000 (b) Rs. 2,30,000
(c) Rs. 2,50,000 (d) None of the above
39. The Board of Directors of a company decides to issue minimum number of equity shares of
Rs. 10 each at 10% discount to redeem Rs. 5,00,000 preference shares. The maximum amount
of divisible profits available for redemption is Rs. 3,00,000. The number of share to be issued
by the company will be
(a) 18,182 shares (b) 22,223 shares
(c) 20,000 shares (d) 25,000 shares
40. Ajay bought goods of the value Rs. 20,000 and consigned them to Saroj to be sold by them on
a joint venture, profits being divided equally. Ajay draws a bill on Saroj for an amount
equivalent to 80% of cost of consignment. The amount of bill will be
(a) Rs. 20,000 (b) Rs. 4,000
(c) Rs. 16,000 (d) None of the above
41. Beta Ltd. was formed as a public limited company with on authorised capital of Rs. 20,00,000
divided into shares of Rs. 10 each. Beta Ltd. issued fully paid up share of Rs. 10 each in
consideration of acquiring asset worth Rs. 3,80,000 from M/s Rahim Bros. The shares are
issued at a premium of 25%. To record this transaction share capital need to be credited by
(a) Rs. 3,04,000 (b) Rs. 76,000
(c) Rs. 3,80,000 (d) Rs. 3,00,000
42. Manish purchased a car for Rs. 5,00,000 making a down payment of Rs. 1,00,000 and signing
a bill payable of Rs. 4,00,000. As result of this transaction
(a) Asset will increase by 4,00,000
(b) Liabilities will increase by 4,00,000
(c) Both (a) and (b)
(d) Asset will increase by 5,00,000
43. The cash-book showed on overdraft of Rs. 1,500 but the pass book made up to the same date
showed that cheque of Rs. 100, Rs. 50 and Rs. 125 respectively had not been presented for
payment and the cheque of Rs. 400 paid into account had not been cleared. The balance as
per the cash book will be
(a) Rs. 1,625 (b) Rs. 1,375
(c) Rs. 2,175 (d) Rs. 1,100
44. If repair cost is Rs. 25,000, white wash expenses are Rs. 5,000 cost of extension of building is
Rs. 2,50,000 and cost of improvement in electrical wiring is Rs. 19,000. The amount to be
capitalized will be
(a) Rs. 2,69,000 (b) Rs. 2,99,000
(c) Rs. 2,80,000 (d) Rs. 2,74,000

88 Common Proficiency Test (CPT) Volume - II

45. Ram draws a bill on Rahim for Rs. 30,000. Ram wants to endorse it to Shyam in settlement
of Rs. 35,000 at 2% discount and balance in cash. How much cash Ram will pay to Rahim.
(a) Rs. 5,000 (b) Rs. 4,200
(c) Rs. 4,300 (d) Rs. 4,600
46. Gopal Ltd. issued 20000, 8% debentures of Rs. 10 each at par which are redeemable after 5
years at a premium of 20%. The amount of loss on redemption of debenture to be written off
every year will be
(a) Rs. 10,000 (b) Rs. 8,000
(c) Rs. 2,000 (d) Rs. 30,000
47. Gopal sent out certain goods to Kamal of Mumbai. 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) Rs. 1,20,000 (b) Rs. 1,40,000
(c) Rs. 1,25,000 (d) Rs. 1,00,000
48. Mohan and Sohan enter into joint venture sharing profits and losses equally. Mohan
purchased 100 kg of rice @ 20 kg. Brokerage paid Rs. 200, carriage Rs. 300 Sohan sold 90 kg
of rice @ Rs. 22 Kg. Balance rice was taken over by Sohan at cost. The value of rice taken
over to be recorded in joint venture will be
(a) Rs. 200 (b) Rs. 250
(c) Rs. 220 (d) Rs. 230
49. If unsold goods costing Rs. 20,000 is taken over by venturers at Rs. 15,000 the joint venture
A/c will be credited by
(a) Rs. 5,000 (b) Rs. 15,000
(c) Rs. 20,000 (d) NIL
50. On 1.6.07 X draw a bill on Y for Rs. 25,000. At maturity bill was dishonoured and noting
charges incurred Rs. 100. Y requested X to accept Rs. 5,100 in cash and for the balance X
draw a bill on Y for 2 months at 12% p.a. Interest amount will be
(a) Rs. 440 (b) Rs.400
(c) Rs.420 (d) Rs.410
51. On 1.8.07 Ram draw a bill on Moti for 30 days after sight. The date of acceptance is 8.8.07
the due date of the bill will be
(a) 10.9.07 (b) 8.9.07
(c) 9.9.07 (d) 11.9.07
52. Fees paid in cash to Notary Public is charged by
(a) Drawer (b) Drawee
(c) Holder of bill of exchange (d) None of the above

Common Proficiency Test (CPT) Volume - II 89

MODEL TEST PAPER - 4

53. Ryan Ltd. issued 5,000, 12% debentures of Rs. 100 each at a premium of 10% which are
redeemed after 10 years at a premium of 20%. The amount of loss on redemption of debenture
to be written off every year will be
(a) Rs.8,000 (b) Rs.10,000
(c) Rs.30,000 (d) Rs.40,000
54. As per the Companies Act, “Interest accrued and due on debentures” should be shown
(a) Under Debentures Account
(b) As Current liabilities
(c) As Provision
(d) As a reduction of bank balance
55. Preference share amounting to Rs. 2,00,000 are redeemed at a premium of 5% by issue of
share amounting to Rs. 1,00,000 at a premium of 10% the amount to be transferred to
capital redemption reserve account will be
(a) Rs.1,05,000 (b) Rs.1,00,000
(c) Rs.2,00,000 (d) Rs.1,11,000
56. Out of the following at which point the treatment for “Sales” and “Consignment” is similar
(a) Money received (b) Stock outflow
(c) Risk (d) Ownership transfer
57. A of Mumbai send goods to B of Delhi, the goods are to be sold at 125% of cost which is
invoice price or above. B was entitled the commission of 10% on sales plus 25% on any
surplus realised above invoice price. 10% of goods sent out on consignment (invoice value
of which is Rs. 12,500) were destroyed. 75% of the total consignment is sold by B at Rs.
1,00,000. The amount of commission payable will be
(a) Rs.10,000 (b) Rs.11,562.50
(c) Rs.9,700 (d) Rs.9,000
58. A and B enter into a joint venture sharing profits and losses in the ratio 2:3. Goods purchased
by A for Rs. 45,000. Expense increased by A Rs. 13,500 and by B Rs. 5,200. B sold the goods
for Rs. 85,000. Remaining stock taken over by B as Rs. 7,200. The profit of the venture will
be
(a) Rs.9,800 (b) Rs.35,700
(c) Rs.21,300 (d) Rs.28,500
59. On 1.4.2006 Mohan invested Rs. 1,00,000 in a business. Interest of capital is to be allowed @
12% p.a. Accounting year is financial year. Amount of interest to be charged to Profit and
Loss account for the year 2006-2007 is
(a) Rs.12,000 (b) Rs.9,000
(c) Rs.10,000 (d) Rs.11,000

90 Common Proficiency Test (CPT) Volume - II

60. 1000 kgs. of Apple are consigned to a whole saler the cost being Rs. 8 per kg. plus Rs. 925 of
freight it is concluded that a loss of 15% is unavoidable the cost per kg. of apple will be
(a) Rs.9.41 (b) Rs.10.50
(c) Rs.10.00 (d) Rs.9.50
SECTION – B : MERCANTILE LAWS (40 MARKS)

61. Which of the following is not the legal requirements of a valid offer
(a) It must be communicated to the offeree
(b) It must be made with a view to obtain offeree’s assent
(c) It must express offeror’s final willingness
(d) It must be made to specific person and not to public at large
62. A promisee is a person
(a) Who makes a promise
(b) A person who monitors the statement intentions of two parties
(c) To whom the promise is made
(d) Who fails to perform the promise
63. Silence cannot amount to offer by conduct. It is
(a) True (b) Partly true
(c) False (d) Partly false
64. Coercion involves moral or mental pressure.
(a) True (b) Partly true
(c) False (d) Partly false
65. ‘A’ Offers to sell his car to ‘B’. Only A can accept or reject it. This is a case of
(a) General offer (b) Express offer
(c) Specific offer (d) Standing offer
66. A voidable contract is one which
(a) Can be enforced at the option of aggrieved party
(b) Cannot be enforced in a court of law
(c) Can be enforced at the option of both the parties
(d) Courts prohibit
67. According to Section 25 of the Indian Contract Act, 1872 an agreement must be
(a) In writing
(b) Registered
(c) Out of natural love and affection between two relations
(d) All of the above

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68. Which one of the following is an essential element of a valid contract?

(a) Free consent (b) Consideration
(c) Competent parties (d) All of the above
69. Where no price is fixed by express agreement or by implication, the buyer shall pay the
seller
(a) Net realisable value (b) Reasonable price
(c) Resale price (d) Ad hoc price
70. Which of the following statements are correct.
(a) In case of sale the subject matter of contract exists at the time of sale
(b) The term does not include shares
(c) In a contract of sale, the price may be paid partly in cash and partly in goods valued in
terms of money
(d) A contract of sale must be in writing
71. According to Sale of Goods Act, a warranty is
(a) A stipulation essential to the main purpose of the contract
(b) A stipulation collateral to the main purpose of the contract
(c) Either (a) or (b)
(d) Both (a) and (b)
72. A stipulation in a contract of sale with reference to the goods which are the subject matter
thereof may be
(a) Condition (b) Warranty
(c) Condition precedent (d) Either (a) or (b)
73. Breach of a condition gives a right to
(a) Repudiate a contract
(b) Claim damages only
(c) Repudiate the contract and claim damages
(d) None of the above
74. Any stipulation other than time of payment is of the essence of the contract depends upon
(a) Application of Section 11
(b) Operation of law
(c) Terms of the contract
(d) All of the above
75. Lien in Sale of Goods Act, is a right to
(a) Regain possession of goods
(b) Retain possession of goods
(c) Give away possession of goods
(d) All of the above
92 Common Proficiency Test (CPT) Volume - II
76. The right of lien is available to the unpaid seller, only when
(a) Seller is not in possession of the goods
(b) Seller is in possession of goods
(c) Seller delivered the goods to the carrier
(d) Seller has delivered the goods to the buyer
77. As per Section 2(b) of The Partnership Act, the term business includes
(a) Trade (b) Occupation
(c) Profession (d) All of the above
78. A minor when admitted into partnership
(a) Can opt to continue as a partner or not, on attaining majority
(b) Becomes personally liable
(c) Cannot inspect any books of accounts of the firm
(d) Can interfere in the day to day affairs of the firm
79. For admitting a minor into the benefits of the partnership, which of the following is required?
(a) Consent of guardian
(b) Consent of Registrar of firms
(c) Consent of all the partners of the firms
(d) Consent of majority partners of the firm
80. A partnership firm is compulsorily dissolved where___________.
(a) All partners have become insolvent
(b) Firm’s business has become unlawful
(c) The fixed term has expired
(d) In cases (a) and (b) only
81. Unregistered firm cannot file a suit against a _________ to enforce any right arising from a
contract.
(a) Incoming partner
(b) Outgoing partner
(c) Third party
(d) Minor admitted to benefits of partnership.
82. An implied condition as to fitness of goods for a particular purpose provided under Section
16, ________ where the buyer relies on his own judgement.
(a) Is applicable (b) Is not applicable
(c) Is presumed (d) Exists
83. Section __________ of the Sale of Goods Act provides for implied condition as to quality or
fitness.
(a) 14 (b) 15
(c) 16 (d) 17
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84. In a contract of sale of goods, implied condition as to description of goods applies where
goods are sold by _________.
(a) Sample (b) Description
(c) Sample and description (d) Junk dealer
85. When the goods have not been sold on credit and the buyer fails to pay the ________, the
unpaid seller can exercise his right of lien.
(a) Substantial portion of the price
(b) Whole of the price
(c) Part of the price
(d) Minimum portion of the price
86. Dissolution agreement as per Section 40, can be ________.
(a) Implied from conduct of the parties
(b) In a express form i.e. written document
(c) (a) or (b)
(d) (a) and (b)
87. A travel agency operates buses from Jaipur to Agra. The bus standing at its bus terminals is
with a view to taking the passengers. There is __________to take passengers.
(a) Internal offer (b) External offer
(c) Implied offer (d) Express offer
88. The parties to a contract should be __________ to contract.
(a) Able (b) Competent
(c) Reliable (d) Incapacitated
89. In a wagering agreement, the future event is the _________ in determining the agreement.
(a) Collateral aspect (b) Primary factor
(c) Secondary factor (d) (a) and (b)
90. In case of firms carrying on business other than banking, maximum numbers of partners
are ________.
(a) 20 (b) 21
(c) 25 (d) 10
91. _________ is an error ...... belief about something.
(a) Fraud (b) Representation
(c) Mistake (d) Misrepresentation
92. There can be a stranger to a ________.
(a) Contract (b) Consideration
(c) Agreement (d) Promise

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93. Every partner has the right to retire by___________.
(a) Majority of partners (b) Consent of all the partners
(c) Will (d) Giving notice
94. When a seller of goodwill of a business agrees not to carry on similar business, the limits and
conditions imposed have to be _________ having regard to the nature of the business.
(a) Reasonable (b) Understandable
(c) Considerable (d) Unreasonable
95. _________ awarded with a view to punish the defendant, and not solely with the idea of
awarding compensation.
(a) Nominal Damages (b) Special Damages
(c) Vindictive Damages (d) Ordinary Damages
96. Section ________ of the Indian contract Act deals with Misrepresentation.
(a) 15 (b) 6
(c) 17 (d) 18
97. In a contract of auction sale, the property in the goods passes with _______.
(a) Payment of price (b) Fall of the hammer
(c) Consent of the owner goods (d) Happening of all the above
98. Partnership is merely an ________ relation between the partners.
(a) Legal (b) Implied
(c) Express (d) Birth
99. ‘A’ contracts to sing for ‘B’ at concert for Rs. 5000 which is paid in advance. ‘A’ is too ill to
sing. Decide.
(a) A will not refund the advance of Rs. 5000 to B.
(b) A must refund the advance of Rs. 5000 to ‘B’
(c) A should make a new contract for sing
(d) B will compel A to sing
100. ‘A’ and ‘B’ are partners in a stationary business. ‘A’ buys on credit certain quantity of
pencils for a whole seller in the firm’s name. He uses these pencils for the family. Decide.
(a) ‘A’ will be personally liable
(b) It will bind the firm
(c) A as well as firm both will be liable
(d) All of these

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SECTION – C : GENERAL ECONOMICS (50 MARKS)

101. The definition “Economics is the science which studies human behavior as a relationship
between ends and scarce means which have alternative uses” was given by:
(a) J. B. Say (b) Alfred Marshal
(c) Robbins (d) Paul. A. Samuelson
102. Economics is _________.
(a) Not a normative Science.
(b) Not a positive Science.
(c) Partly Science and partly Art
(d) Neither a normative nor a positive Science.
103. Which of the following statements is incorrect in case of capitalist economy?
(a) There is equality of income among people in the economy
(b) Profit-motive gets precedence over social motive
(c) Freedom of enterprise about what to produce
(d) Right to own property
104. Which of the following is likely to cause an inward shift in a country’s PPC?
(a) Scientist discovering new techniques of production
(b) Workers getting job in making fly-over
(c) War destroying resources of the country
(d) The country finds new techniques of agricultural production
105. Calculate Income-elasticity for the household when the income of a household rises by 5%
and the demand for bajra falls by 2%.
(a) + 2.5 (b) – 2.5
(c) - .4 (d) + .4
106. The consumer surplus concept is derived from:
(a) Law of demand
(b) Indifference curve analysis
(c) Law of diminishing marginal utility
(d) All of above
107. The consumer is in equilibrium when:
(a) When marginal utility is constant
(b) When marginal utility is greater than price of the good
(c) When marginal utility is less than price of the good
(d) When marginal utility is equal to price of the good

96 Common Proficiency Test (CPT) Volume - II

108. Which is not the property of Indifference curve analysis?
(a) Indifference curves slope downward to the left
(b) Indifference curves are always convex to the origin
(c) Indifference curves can never intersect each other
(d) A higher indifference curve represents a higher level satisfaction than the lower indifference
curve
109. Capital is a:
(a) Stock concept (b) Flow Concept
(c) Both (a) and (b) (d) None of the above
110. Which is not the function of an entrepreneur?
(a) Initiating a business enterprise and resource co-ordination
(b) Risk bearing or uncertainty bearing
(c) Innovation
(d) Mobilisation of savings
111. Types of balance of trade are
(a) Favorable balance of trade (b) Unfavorable balance of trade
(c) Balanced balance of trade (d) All of the above
112. A full fledged Department of Family Planning was created in India in
(a) 1950 (b) 1951
(c) 1966 (d) 1955
113. Least Densely populated state is:
(a) M. P. (b) Assam
(c) Nagaland (d) Tripura
114. Highest density of population is in:
(a) Punjab (b) Maharashtra
(c) U. P. (d) Delhi
115. Wealth Tax was abolished in:
(a) 1985 (b) 1998
(c) 2005 (d) False it is still continuing
116. In order to improve production of power, Electricity Act was passed in
(a) 2003 (b) 2005
(c) 2002 (d) 2004
117. Petroleum, Oil and Lubricants constitute —— of our import bill
(a) 29% (b) 27%
(c) 33% (d) 18%

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118. About ———— percent of sick units are other than small units
(a) 98% (b) 2%
(c) 5% (d) 30%
119. The industrial sector depends on the agricultural sector because:
(a) The agricultural sector provides food and other products for the consumption purpose of
industrial sector
(b) The agricultural sector provider market for the industrial products
(c) The agricultural sector provides raw – materials to industry
(d) All of the above
120. The service sector in India now accounts for:
(a) 50-60% of GDP (b) 60-70% of GDP
(c) 40-50% of GDP (d) 30-40% of GDP
121. On which of the following, income tax is not imposed in India?
(a) Income from salary. (b) Income from house property.
(c) Interest on fixed deposits. (d) None of the above
122. PPF stands for:
(a) Private Provident Fund (b) Personal Provident Fund
(c) Public Provident Fund (d) Public Presidency Fund
123. Income Tax was introduced first time in India in 1860 and then discontinued in 1873. It was
re-introduced in the year:
(a) 1885 (b) 1886
(c) 1887 (d) 1890
124. Which of the following is not the example of direct tax?
(a) VAT (b) Wealth Tax
(c) Corporate Tax (d) Income Tax
125. Excise duty is imposed on
(a) Goods imported in India (b) Goods sold in India
(c) Goods manufactured in India (d) Goods exported from India
126. Which of the following is correct?
(a) Expenditure on financial assets which are produced and owned within the country is
included in national expenditure
(b) Expenditure on financial assets of foreign countries is included in national expenditure
(c) Goods produced in preceding years are also included in national income.
(d) None of the above

98 Common Proficiency Test (CPT) Volume - II

127. Which of the following is included in national income ?
(a) Scholarship (b) Old age pensions
(c) Unemployment Allowance (d) None of the above
Use table to answer question 128-129
House of Total Marginal
Labour Output Product
0
1 200 200
2 - 180
3 480 __
128. What is the total output when 2 hours of labour are employed?
(a) 180 (b) 200
(c) 480 (d) 380
129. What is the marginal product of the third hour labour?
(a) 120 (b) 100
(c) 180 (d) 480
130. The cost that firm incurs in hiring or purchasing any factor of production is referred as:
(a) Explicit cost (b) Implicit cost
(c) Variable cost (d) Fixed cost
131. Per capita national income means:
(a) NNP/ Population (b) Total capital / Population
(c) Population / NNP (d) None of the above
132. According to the World Development Report – 2006, the GINI index for India in 1999-00
(survey year) was:
(a) . 33 (b) . 29
(c) . 53 (d) . 18
133. TRAI is regulatory, authority for —— in India
(a) Tourism (b) Telecom
(c) Transport (d) Technical Education
134. Optimum population is that level of population at which
(a) Output per capita is the highest
(b) Output per capita is the lowest
(c) Output per capita is the same
(d) None of the above

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135. Tenth plan aims at reducing the maternal mortality rate to — per thousand birth by 2007
(a) 5 (b) 2
(c) 1 (d) 3
136. The main objective of fiscal policy in developing countries is to:
(a) Promote economic growth
(b) Mobilise resources for economic growth
(c) Ensure economic growth and equitable distribution
(d) All the above
137. Suppose income of the consumers increases by 50 % and the demand for commodity x
increases by 20 % what will be the income elasticity of demand for commodity x ?
(a) . 04 (b) .4
(c) 4 (d) –4
138. ———— depicts complete picture of consumer tastes and preferences.
(a) Budget line (b) Average cost curve
(c) Indifference map (d) Marginal revenue curve
139. At present, the area covered by forest as a percentage of total land area in India lies within
a range of :
(a) 11 % to 15 % (b) 16 % to 20 %
(c) 21 % to 25 % (d) 26 % to 30 %
140. Population explosion occurs in ——— stage of the theory of demographic transition
(a) First (b) Second
(c) Third (d) Fourth
141. A higher indifference curve shows:
(a) A higher level of satisfaction (b) A higher level of production
(c) A higher level of income (d) None of the above
142. In fiscal deficit we add borrowing and other liabilities to the ———
(a) Primary Deficit (b) Capital Deficit
(c) Budget Deficit (d) Money Deficit
143. In the case of a Giffen good, the demand curve will be
(a) Downward sloping to the right (b) Upward sloping to the right
(c) Vertical (d) None of the above
144. In case of an inferior good the income elasticity of demand is:
(a) Zero (b) Positive
(c) Negative (d) None of the above

100 Common Proficiency Test (CPT) Volume - II

145. When quantity demanded changes by larger percentage than does price, elasticity is termed
as:
(a) Inelastic (b) Elastic
(c) Perfectly Elastic (d) Perfectly Inelastic
146. The share of concessional debt in total external debt of India has:
(a) Remained the same (b) Doubled
(c) Reduced (d) Increased
147. The incidence of taxes refers to:
(a) The level and rate of taxation
(b) Who ultimately bears the money burden of the tax
(c) The growth of taxation
(d) The way in which a tax is collected
148. Marginal cost is defined as:
(a) The change in total cost due to a one unit change in output
(b) Total cost divided by output
(c) The change in output due to a one unit change in an input
(d) Total product divided by the quantity of input
149. Which is the other name that is given to the Long run average cost curve?
(a) Enveloping curve (b) Profit curve
(c) Demand curve (d) Supply Curve
150. Diminishing marginal returns imply:
(a) Decreasing average variable cost (b) Decreasing marginal cost
(c) Increasing Marginal cost (d) Decreasing average fixed cost
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. A person opened a savings bank account 4 months ago, which has now a balance of
Rs. 21,315. If the bank pays 4.5% simple interest, how much money was deposited by
him, initially?
(a) Rs. 21,000 (b) Rs. 20,000
(c) Rs. 15,000 (d) None of these
152. Mohan deposits Rs. 500 into an account paying 8% simple interest. He makes two more
deposits of Rs. 1,000 each; first after 3 months and second after 6 months. How much will be
in his account at the end of the year, if he makes no other deposits and withdrawals during
the time?
(a) Rs. 2,600 (b) Rs. 2,650
(c) Rs. 2,640 (d) None of these

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153. How long will it take Rs. 1,200 to amount Rs. 2,000 at 5% converted quarterly at Compound
Interest?
(a) 10 years 3 months (b) 10 years 5 months
(c) 10 years (d) None of these
154. A man borrowed Rs. 20,000 from a money lender but he could not repay the amount for a
period of 4 years. According the money lender’s demand showed Rs. 26,500 due from him.
At what rate percent annum compound interest did the money lender lend his money?
(a) 7% (b) 8%
(c) 7.5% (d) None of these
155. The compound interest earned by a money lender on Rs. 7,000 for 3 years if the rate of
interest for 3 years are 7%, 8% and 8.5% respectively is
(a) Rs. 1750 (b) Rs. 1800
(c) Rs. 1776 (d) None of these
156. What annual payment will discharge a debt of Rs. 770 due in years, the rate of interest being
5% per annum?
(a) Rs. 150 (b) Rs. 140
(c) Rs. 130 (d) None of these
157. The rate of interest for the first 2 years is 3% per annum, for the next 3 years is 8% per
annum and for the period beyond 5 years, 10% per annum. If a man gets Rs. 1520 as a
simple interest for 6 years; how much money did he deposit?
(a) Rs. 3800 (b) Rs. 3000
(c) Rs. 4000 (d) None of these
158. Rs. 7500 is borrowed at compound interest at the rate of 4% per annum. What will be the
amount to be paid after 6 months, if interest is compounded quarterly?
(a) Rs. 7650.75 (b) Rs. 7600.50
(c) Rs. 7000 (d) None of these
159. The compound interest on any sum at the rate of 5% for two years is Rs. 512.50. Find the
sum.
(a) Rs. 4000 (b) Rs. 5,000
(c) Rs. 3,000 (d) None of these
160. In what rate per cent per annum will Rs. 1,000 amount to Rs. 1331 in 3 years? The interest
is compounded yearly is:
(a) 10% (b) 12%
(c) 11% (d) None of these

102 Common Proficiency Test (CPT) Volume - II

161. The range of 10 observations is 20. If each item is increased by 15, then the range of new
series is
(a) 20 (b) 35
(c) 5 (d) None of these
162. The range of 10 observations is 20. If each item is divided by –2, then the range of new series
is
(a) –10 (b) 10
(c) 20 (d) None of these
163. The relation between two variables is 2x – 3x + 12 = 0. If mean deviation of y is 6 then mean
deviation of x is
(a) 9 (b) 6
(c) 3 (d) None of these
164. In grouped frequency distribution, if the Class interval Gap is unequal; then which dispersion
is more appropriate?
(a) Q.D. (b) Range
(c) Mean deviation (d) Standard Deviation.
165. If the Standard Deviation of 10 observations is 4 and if each item is divided by – 2 then
Standard Deviation of new series is
(a) 2 (b) –2
(c) 4 (d) None of these
166. Find the average of first 25 multiples of 5.
(a) 65 (b) 60
(c) 75 (d) None of these
167. If a, b, c, d, e are five consecutive odd integers, then their average is

abcde
(a) a+5 (b)
5
(c) 5(a + b + c + d + e) (d) a+4
168. A cricketer scored 180 runs in the first test and 258 runs in the second. How many runs
should be score in the third test so that his average score in three tests would be 230 runs.
(a) 219 (b) 242
(c) 334 (d) None of these

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169. In a coconut grove, (x+2) trees yield 60 nuts per year, x trees yield 120 nuts per year and
(x–2) trees yield 180 nuts per year. If the average yield per year per tree be 100, then the
value of x is –
(a) 4 (b) 6
(c) 8 (d) 2
170. The average age of 24 students and the class teacher is 16 years. If the class teachers age is
excluded, the average reduces by 1 year. What is the age of the class teacher?
(a) 50 years (b) 40 years
(c) 60 years (d) None of these
171. If r = 0, then
(a) There is a perfect correlation between x & y.
(b) x and y are not correlated.
(c) There is a positive correlation between x & y.
(d) Do not exist.
172. If Covariance (x, y) < 0; then the relation between two variable is
(a) Positive (b) Negative
(c) (a) or (b) (d) None of these
173. Consider the two regression lines 3x+2y = 26 & 6x + y = 31. Find the mean values of x and y.

(a) x =4& y =7 (b) x =7& y =4

(c) x =5& y =6 (d) None of these

174. Consider the two regression lines 3x+2y = 26 & 6x + y = 31. Find the correlation coefficient
between x & y.
(a) 0.5 (b) –0.5
(c) 0.6 (d) None of these
175. Two regression lines are
(a) Reversible (b) not reversible
(c) cannot say (d) None of these
176. A problem of Mathematics is given to three students X, Y and Z whose chances of solving it
1 1 1
are , and respectively. Find the chance that the problem will be solved?
3 4 5

4 2
(a) (b)
5 5
3
(c) (d) None of these
5
104 Common Proficiency Test (CPT) Volume - II
 1 1 1
177. If P(A) = ; P(B) = and P( A ∩ B ) = then the value of P(A / B) is
2 3 4

3 1
(a) (b)
4 4
2
(c) (d) None of these
5

1 1 1
178. If P(A) = ; P(B) = and P( A ∩ B ) = then the value of P( A ∩ B ) is
2 3 4

1 11
(a) (b)
3 12
(c) 1 / 12 (d) None of these

1 1 1
179. If P(A) = ; P(B) = and P( A ∩ B ) = then the value of P ( A ∩ B ) is
2 3 4

5 7
(a) (b)
12 12
1
(c) (d) None of these
2

1 1 1
180. If P(A) = ; P(B) = and P( A ∩ B ) = then the value of P ( A ∩ B ) is
2 3 4

1 3
(a) (b)
4 4
2
(c) (d) None of these
5
181. From the following probability distribution table, find E(x).
x: 1 2 3
1 1 1
f(x):
2 3 6

(a) 1 (b) 1.50

(c) 1.67 (d) None of these

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182. From the following probability distribution table, Find V(X)

x: 1 2 3
1 1 1
f(x):
2 3 6

(a) 0.5556 (b) 0.556

(c) 0.506 (d) None of these
183. In a box carrying one dozen of oranges, one third has become bad. If 3 oranges are taken out
from the box at random, what is the probability that at least one orange out of the three
oranges picked up is good?

54 1
(a) (b)
55 55
45
(c) (d) None of these
50
184. A and B are two candidates seeking admission in I.I.T. The probability that A is selected is
0.5 and the probability both A and B are selected is at most 0.3. Then the probability of B
getting selected is
(a) < 0.8 (b) < 0.9
(c) < 0.7 (d) None of these
185. One of the two events must happen. Given that the chance of one is two – third that of the
other. Then the odds in favour of the other
(a) 3:5 (b) 3:2
(c) 5:3 (d) None of these
186. If x be a poison variates with parameter 1; then find P(3<x<5) (Given: e–1 = 0.36783)
(a) 0.015326 (b) 0.15326
(c) 0.012326 (d) None of these
187. Find the probability that at least 5 defective bolts will be found in a box of 200 bolts. If it is
known that 2% of such bolts are expected to be defective (Given:
e–4 = 0.0183)
(a) 0.4717 (b) 0.3717
(c) 0.3017 (d) None of these
188. A man is dealt 4 spade cards from an ordinary pack of 52 cards. If he is given three more
cards, find the probability p that at least one of the additional cards is also a spade.
(a) 0.5718 (b) 0.3718
(c) 0.4718 (d) None of these

106 Common Proficiency Test (CPT) Volume - II

189. The mean and variance of the poison distribution are equal.
(a) True (b) False
(c) Either (a) or (b) (d) None of these
190. If a variable x follows a poison law such that P(x = 1) = P(x = 2); then the variance of the
distribution is
(a) –2 (b) 2
(c) 2 (d) None of these

191. A random sample of the heights of 500 oranges was taken from a large consignement. 65
were found to be defective. Find Standard Error of the proportion of defectives.
(a) 0.015 (b) 0.15
(c) 0.017 (d) None of these
192. A random sample of the heights of 100 students from a large population of students in
a College having Standard Deviation of 0.75 ft. has an average height of 5.6 ft., Find
95% confidence limits for the average height of all the students of the College. (For
95%, Z = 1.96)
(a) 5.453, 5.747 (b) 16.453, 7.747
(c) 6.485, 7.647 (d) None of these
193. A sample of size 64 was drawn from a population consisting of 128 units. The sample
mean of the measurements on a certain characteristic was found to be 28. If the
population Standard Deviation is 4 then find the 96% confidence limit for the population
mean? (For 96%, Z = 2.05)
(a) 30.72, 27.32 (b) 27.272, 28.728
(c) 30.272, 32.728 (d) None of these
194. In a large consignment of oranges a random sample of 500 oranges revealed that 65 oranges
were bad. Find the 99.73% Confidence limit of bad ones? (For 99.73%, Z = 3)
(a) 8.5%, 17.5% (b) 0.85%, 0.175%
(c) 8%, 12% (d) None of these
195. Find the sample size such that the probability of the sample means differing from the
1
population mean by not more than th of the Standard Deviation is 0.95.
10
(a) 300 (b) 384
(c) 395 (d) None of these
196. The variance of 10 observations is 4, then their Standard Deviation is +2 or –2. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these

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MODEL TEST PAPER - 4

197. Find the variance of binomial distribution with n = 10, p = 0.3

(a) 2.1 (b) 3
(c) 7 (d) None of these
198. When the cost of living increases, the standard of living improves. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these

⎛ σ ⎞
199. The 95% confidence limit for the sample mean ( x ) is μ ± 1.96 ⎜ ⎟ . This is
⎝ n⎠
(a) True (b) False
(c) Either (a) or (b) (d) None of these
200. The mean and variance of Binomial distribution is 12. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these

❖❖❖

108 Common Proficiency Test (CPT) Volume - II

 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 5 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. Profit and Loss account is prepared for a period of one year by following
(a) Periodicity period concept (b) Business entity concept
(c) Accrual concept (d) None of the above.
2. Basic concepts related to Balance Sheet are
(a) Conservatism concept (b) Business entity concept
(c) Going concern concept (d) Both (b) or (c)
3. Purchases for cash
(a) Increase liability (b) Decrease assets
(c) No change in the total assets (d) Increase assets
4. Difference in bank balance as per bank pass book and cash pass book may arise on
account of
(a) Cheque issued but not dishonoured
(b) Direct payment by customer in bank
(c) Cheque issued but not presented
(d) All of the three

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MODEL TEST PAPER - 5

5. Trade discount allowed at the time of sale of goods is

(a) Recorded in Journal (b) Not recorded on book of accounts
(c) Recorded in Cash book (d) Recorded in Sales book
6. Which of the following is not an asset
(a) P & L A/c (Cr. balance) (b) Inventory
(c) Goodwill (d) Cash
7. Purchases of goods on credit
(a) Increase liability (b) Decrease assets
(c) Increase assets (d) Both (a) and (c)
8. A bill of exchange is drawn on 1 January 2007 payable after 3 month. The due date of bill is
(a) 4 April 2007 (b) 31 March 2007
(c) 1 April 2007 (d) None of the above
9. The noting charges levied on dishonour of an endorsed bill by the notary public are to be
finally borne by
(a) Holder of the bill (b) Drawer of the bill
(c) Drawee (d) Either (a) or (b)
10. Under inflationary conditions, FIFO method will lead to
(a) Lower profit (b) Higher profit
(c) Higher sales (d) No change in sales
11. Which of the following assets are to be valued at the lower of cost and net realizable values
(a) Sundry Debtors (b) Investment
(c) Goodwill (d) Stock (Inventories)
12. Bad debts recovered account will be transferred to
(a) Provision for doubtful debt A/c (b) P & L A/c
(c) Bad debt A/c (d) Debtors A/c
13. Goods distributed as free samples is debited to
(a) Advertisement A/c (b) Charity A/c
(c) Purchases A/c (d) Goods A/c
14. State which of the following is not a foreign bill
(a) A bill drawn outside India and made payable outside
(b) A bill drawn outside India and made payable in India
(c) A bill drawn in India and made payable in India
(d) A bill drawn in India on a person resident outside India and made payable outside India.

110 Common Proficiency Test (CPT) Volume - II

15. Which of the following enhances the earning capacity of an assets?
(a) Reduction in operating costs
(b) Increase in working capacity of an assets
(c) Replacing damage parts of an assets
(d) Both (b) and (c)
16. Depreciation is a process of
(a) Allocation of profit (b) Valuation of expenses
(c) Segregation of profit (d) Appropriation of profit
17. Which of the following are fixed assets
(a) Closing Inventory (b) Fixed deposits in Bank (for 3 years)
(c) Prepaid Expenses (d) Patents
18. A Club paid subscription fees of Rs. 1,800 out of which Rs. 400 is prepaid. In such case
(a) P & L A/c is debited with Rs. 1,400 (b) Rs. 400 is shown as current assets
(c) Both (a) and (b) (d) None of the above.
19. If goods worth Rs. 2,000 returned to a supplier is wrongly entered in sales return books as
Rs. 1,500 then
(a) Gross profit will decrease by Rs. 4,000
(b) Gross profit will increase by Rs. 3,500
(c) Gross profit will decrease by Rs. 3,500
(d) None of the above
20. Gross profit is equal to
(a) Opening stock + purchases – closing stock
(b) Net profit – Expenses
(c) Sales – Closing stock + purchases
(d) Sales – Cost of goods sold
21. Sohan as a trader purchased goods for Rs. 5,00,000 and sold 70% of such goods during the
accounting year ended 31st December 2006. The Market value of the remaining goods was
Rs. 1,00,000. He valued the closing stock at Rs. 1,00,000 and not Rs. 1,50,000 due to
(a) Conservatism concept (b) Cost concept
(c) Money measurement (d) None of the above
22. Narain Brothers which was registered in the years 2006, has been following FIFO method
for valuation of share. It changed its method from FIFO to LIFO method in the year 2007.
The auditor raised objection to this change in the method of valuation of investments.
(a) Method can not be changed under any circumstances
(b) 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
(c) Change in the method should be done only with consent of the auditor
(d) None of the above.

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23. The opening stock of the current year is over stated by Rs. 10,000. and closing stock is over
stated by 17,000. These errors will lead the net income for the current year to be
(a) Rs. 7,000 understated (b) Rs. 17,000 overstated
(c) Rs. 7,000 overstated (d) Rs. 17,000 understated
24. When the overdraft as per cash book is the starting point and a cheque of Rs. 1500 deposited
into bank has not been recorded in cash book, then in the bank reconciliation statement it
will be
(a) Added by Rs.1,500 (b) Deducted by Rs.1,500
(c) Deducted by Rs.3,000 (d) Added by Rs.3,000
25. A draws a bill on B for Rs. 5,000. A endorsed it to C. B will pay the amount of the bill on
maturity to
(a) ‘C’ (b) Bank
(c) ‘A’ (d) None of the above
26. On 1.04.07 Ram draws a bill on Rahim for 2 months for Rs. 1,000, 4th June was a sudden
holiday due date of the bill will be
(a) 1st June, 2007 (b) 4th June, 2007
(c) 5th June, 2007 (d) None of the above.
27. On 10.05.06 Ramesh draw a bill on Suresh for 4 months for Rs. 4,000. 13 September is a
public holiday, due date of the bill will be
(a) 13 September (b) 10 September
(c) 14 September (d) 12 September
28. Rs.40,000 spent by a factory in overhauling of its existing plant & machinaries. It has
enhanced its working life by five years. The aforesaid expenditure is
(a) Capital expenditure
(b) Revenue expenditure
(c) Deferred revenue expenditure
(d) None of the above
29. If repairs cost is Rs. 30,000 white wash expenses are Rs. 5,000, cost & extension of building
is Rs. 300000 and cost of improvement in electrical wiring system is Rs. 30,000 the amount
of revenue expenses will be
(a) Rs. 35,000 (b) Rs. 65,000
(c) Rs. 3,65,000 (d) Rs. 3,35,000
30. Rajesh returned goods amounting Rs. 5,200 to us but was recorded Rs. 2,500 in his account.
In the rectifying entry. Rajesh A/c will be debited with
(a) Rs. 2,500 (b) Rs. 2,700
(c) Rs. 7,700 (d) Rs. 5,200

112 Common Proficiency Test (CPT) Volume - II

31. A Bill Receivable of Rs. 4,000 was dishonoured and credited as Rs. 400. The error will be
rectified by
(a) Debiting Bill by Rs. 3,600
(b) Debiting Bill Rs. 4,400
(c) Crediting Bill Rs. 3,600
(d) Crediting Bill Rs. 4,400
32. Opening Stock = Closing Stock + ? – Purchases
(a) Cost of goods sold (b) Gross profit
(c) Sales (d) Net Profit
33. The following information pertaining to a firm as on 31 December 2006
Opening Stock Rs. 20,000
Purchases Rs. 1,50,000
Sales Rs. 1,40,000
Gross profit on sales has been 25%. The cost of goods sold during the year will be

(a) Rs. 12,000 (b) Rs. 1,75,000

(c) Rs. 1,40,000 (d) Rs. 1,05,000
34. Original cost of an asset was Rs. 3,00,000. Salvage value was 40,000. Depreciation for 3rd
year @15% p.a. under W.D.V method will be
(a) Rs. 38,250 (b) Rs. 45,000
(c) Rs. 1,35,000 (d) Rs. 32,512.50
35. What would be the amount of sales when opening stock is Rs. 20,000. Purchase Rs. 50,000
wages Rs. 10,000. Closing stock Rs. 20,000 and gross profit is 1/7th of sales.
(a) Rs. 70,000 (b) Rs. 50,000
(c) Rs. 60,000 (d) None of the above
36. X send out goods costing Rs. 2,00,000 to Y. Consignor expenses Rs. 5,000. Consignee expenses
in relation to sales Rs. 3,000. 4/5th of the goods were sold at 20% above cost. The profit on
consignment will be
(a) Rs. 20,000 (b) Rs. 30,000
(c) Rs. 25,000 (d) Rs. 40,000
37. R & S entered into a joint venture. They purchased a piece of land for Rs. 60,000 and sold it
for Rs 80,000 in 2006. Originally R had contributed Rs. 40,000 and S Rs 20,000. What will be
the profit on venture?
(a) Rs. 25,000 (b) Rs. 20,000
(c) Rs. 60,000 (d) Rs. 80,000

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MODEL TEST PAPER - 5

38. Following trading results are available in respect of the business carried on by a firm
2003 – Loss Rs. 20,000 2005 – Profit Rs. 30,000
2004 – Loss Rs. 5,000 2006 – Profit Rs. 15,000
The value of goodwill on the basis of 3 years purchases of average profit of the business will be
(a) Rs. 20,000 (b) Rs. 14,000
(c) Rs. 15,000 (d) Rs. 70,000
39. M and N share profit in the ratio of 2:1. O has been admitted with 1/4th share in profit. The
new profit sharing ratio of partner will be
(a) 1:2:1 (b) 1:1:2
(c) 2:1:1 (d) None of the above
40. X, Y and Z are partner sharing profit and losses in the ratio of 5:3:2. Z retires and goodwill
of the firm is to be valued at Rs. 50,000 find the amount payable to retiring partner on
account of goodwill.
(a) Rs. 15,000 (b) Rs. 10,000
(c) Rs. 25,000 (d) None of the above
41. Jain & Co. forfeited 50 shares of Rs. 10 each. Rs.8 called up on which application money of
Rs. 5 per share was paid. The entry for forfeiture is.
(a) Share Capital A/c Dr. 400
To Share premium A/c 150
To share allotment A/c 250
(b) Share Capital A/c Dr. 400
To Share forfeiture 250
To Share allotment A/c 150
(c) Share Capital A/c Dr. 500
To Share forfeiture A/c 250
To Share allotment A/c 250
(d) None of the above.
42. Preference shares of Rs. 3,00,000 are redeemed at par for which fresh equity shares of Rs.
1,20,000 are issued at 20% premium. What amount should be transferred to capital
redemption reserve account?
(a) Rs. 60,000 (b) Rs. 24,000
(c) Rs. 36,000 (d) Rs. 1,80,000
43. Goodwill of a firm of Sanju and Manju is valued at Rs. 45,000. It is appearing in the books
at Rs. 15,000. Anju is admitted for 1/4th share. The amount of goodwill, which she is supposed
to bring will be
(a) Rs. 11,250 (b) Rs. 15,000
(c) Rs. 7,500 (d) None of the above

114 Common Proficiency Test (CPT) Volume - II

44. X Ltd. issued 5000 10% debentures of Rs. 125 each at a discount of 5% payable at a premium
of 5% at the end of 5 years. The loss on issue of debentures will be
(a) Rs. 62,500 (b) Rs. 12,500
(c) Rs. 37,500 (d) Rs. 25,000
45. In case a trial balance does not agree the difference is put to
(a) Trading A/c (b) Profit & Loss A/c
(c) Capital A/c (d) Suspense A/c
46. The capital of O and P are Rs. 60,000 and Rs. 20,000 respectively with the profit sharing
ratio 3:1. They decide to change the ratio to 5:3. On the date of change goodwill is valued at
Rs. 75,000. Goodwill account will not appear in the books. Journal entry to give the above
effect will be
(a) Goodwill A/c Dr. 75,000
To O’s Capital A/c 56,250
To P’s Capital A/c 18,750
(b) Goodwill A/c Dr. 75,000
To O’s Capital A/c 46,875
To P’s Capital A/c 28,125
(c) O’s Capital A/c Dr. 9,375
To P’s Capital A/c 9,375
(d) None of the above
47. In the absence of any agreement, it is presumed that the new partner acquires. his share in
profit from the old partner in the
(a) Old ratio (b) Gaining ratio
(c) New ratio (d) Sacrificing ratio
48. Purchased goods from Maya for Rs. 2,400 but was recorded as Rs. 4200 to the debit of
Maya. In the rectifying entry Maya’s A/c will be credited with
(a) Rs. 4800 (b) Rs. 6600
(c) Rs. 8400 (d) None of the above
49. Bank reconciliation statement is prepared with the either balances of
(a) Pass book (b) Cash book
(c) Both (a) or (b) (d) None of the above
50. If a bill is drawn on 28th January 2007 for 1 month, it will mature on
(a) 28 February 2007 (b) 3rd March 2007
(c) 2nd March 2007 (d) None of the above

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51. A Machinery was purchased for Rs. 50,000 on which depreciation was provided @ 15% by
SLM method. The Written Down Value of the assets at the end of two years is
(a) Rs. 35,000 (b) Rs. 36,125
(c) Rs. 42,500 (d) Rs. 50,000
52. Goods purchased for Rs. 80,000; sales Rs. 60,000; Margin 20% on cost closing stock will be
(a) Rs. 40,000 (b) Rs. 10,000
(c) Rs. 2000 (d) Rs. 30,000
53. The first Accounting Standard (AS-1) issued by the Institute of Chartered Accountants of
India is on
(a) Disclosure of Accounting Policies
(b) Valuation of Inventories
(c) Revenue Recognition
(d) Change in Financial Position of an Entity
54. A machinery purchased for Rs. 30,000 had its book value Rs. 18,000 was sold for Rs. 40,000
the capital profit will be
(a) Rs. 12,000 (b) Rs. 10,000
(c) Rs. 48,000 (d) Rs. 58,000
55. In case opening stock was Rs. 15,000, purchases Rs. 25,000, factory lighting Rs. 5,000 and
closing stock Rs. 10,000. Then, the cost of goods sold had been
(a) Rs. 30,000 (b) Rs. 45,000
(c) Rs. 35,000 (d) Rs. 25,000
56. A Machinery purchased for Rs. 40,000 and paid Rs. 5,000 on its installation. The useful life
of plant is 5 years and its estimated scrap value is Rs. 5,000. Annual depreciation under the
fixed instalment method would be
(a) Rs. 6000 (b) Rs. 11000
(c) Rs. 8000 (d) Rs. 9000
57. Preference shares amounting Rs. 50,000 are redeemed at a premium of 5% by issue of equity
shares amounting to Rs. 25,000 at a premium of 10%. The amount to be transferred to
capital redemption reserve
(a) Rs. 75,000 (b) Rs. 25,000
(c) Rs. 10,000 (d) Rs. 50,000
58. Account receivable is
(a) A Liability (b) An Asset
(c) An Expense (d) A Revenue

116 Common Proficiency Test (CPT) Volume - II

59. If total assets of the firm is Rs. 2,00,000; outside liabilities is Rs. 1,60,000, then capital
contributed by the owner will be
(a) Rs. 60,000 (b) Rs 40,000
(c) Rs. 3,60,000 (d) None of the above
60. Sales to Ranjan Rs. 600 was not recorded in the book. This will affect
(a) Ranjan A/c (b) Sales A/c
(c) Neither (a) nor (b) (d) Both (a) and (b)
SECTION – B : MERCANTILE LAWS (40 MARKS)

61. Section 27 of the Indian Contract Act states an agreement in restraint of trade is valid if
relates to
(a) Sale of goodwill
(b) Mutual agreement
(c) Business contingency
(d) All of above
62. An agreement to do an impossible act itself is
(a) Valid (b) Void
(c) Voidable (d) Illegal
63. Which of the following agreements are valid?
(a) Wagering agreements
(b) Agreement contingent upon impossible events
(c) Uncertain agreements
(d) None of the above
64. Which of these are opposed to public policy?
(a) Restraint of marriage
(b) Restraint of personal liberty
(c) Interference with course of Institute
(d) All of the above
65. An illegal agreement is void. However, a collateral transaction to an illegal agreement e.g.
money borrowed to carry on an illegal business, is
(a) Void (b) Valid
(c) Voidable (d) Uncertain
66. A contract is discharged if it is not performed within the limitation period prescribed by
law. The limitation period for recovery of money is
(a) 2 years (b) 3 years
(c) 4 years (d) 5 years

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67. A contingent contract to do or not to do anything, if an impossible event happens, is

(a) Valid (b) Void
(c) Voidable (d) Illegal
68. In case of joint promise, a promisee can compel
(a) All the joint promisors to perform
(b) Any one of them to perform
(c) Some of them to perform
(d) Any of the above
69. Assignment of contract may be by
(a) Operations of law (b) The act of parties
(c) (a) or (b) (d) None of the above
70. Contract to marry a person shall be performed by
(a) A third person (b) Promisor himself
(c) Representative of the promisor (d) None of the above
71. The right of joint promisees to demand performance is
(a) Joint (b) Several
(c) Joint or several (d) Joint and several
72. A bill of exchange which was accepted by X reaches ‘X’s hands after being negotiated and
endorsed through 3 other parties. The contract is
(a) Valid (b) Void
(c) Discharged (d) Voidable
73. In case of future goods
(a) Only agreement to sell is possible
(b) Both sale and agreement to sell is possible
(c) They are owned by the seller at the time of sale
(d) None of the above
74. The term partnership has been defined under Section
(a) 2 (b) 4
(c) 6 (d) 8
75. The leading case laying down the test for determining the existence of a partnership
(a) Powell Vs Lee (b) Hadley Vs B a x end ale
(c) Abdul Aziz Vs Masum Ali (d) Chinnaya Vs Ramayya

118 Common Proficiency Test (CPT) Volume - II

76. A firm is the name of
(a) The partners
(b) The minors in the firm
(c) The business under which the firm carries on business
(d) The collective name under which partners carry on business.
77. The ratio in which partners share profits and losses are
(a) Based on agreement
(b) Based on the contract Act
(c) Equal
(d) Based on the decision of the registrar of firms.
78. The Partnership Act extends to the whole of India except the state of
(a) Uttar Pradesh (b) Maharashtra
(c) Jammu and Kashmir (d) Goa
79. A contract can be discharged?
(a) By operation of law (b) By lapse of time
(c) By performance (d) By all of the above
80. On substitution of a new contract, the old contract is discharged is known as ______.
(a) Rescission (b) Novation
(c) Alteration of contract (d) Waiver
81. ________ means termination of contract.
(a) Rescission (b) Injunction
(c) Specific performance (d) Quantum meruit
82. Where there is breach of contract, special damages are awarded only when _________.
(a) There are special circumstances
(b) There is special loss
(c) There is notice of the likely special loss
(d) In all cases
83. The _________ is empowered to grant exemption from the application of chapter VII of the
Partnership Act, 1932 (dealing with registration of firms).
(a) State Government (b) Central Government
(c) Local bodies (d) None of the above
84. The goods which have not been identified and agreed upon at the time of contract of sale are
_________ goods.
(a) Contingent (b) Future
(c) Unascertained (d) Unappropriated

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MODEL TEST PAPER - 5

85. Section __________ of the Sale of Goods Act, provides for passing of property in goods when
there is an unconditional contract in a deliverable state.
(a) 18 (b) 19
(c) 20 (d) 21
86. A Quasi – Contract is not a _________ contract.
(a) Real (b) Valid
(c) Real and valid (d) Voidable
87. A contract implied by law is known as __________.
(a) Contingent Contract (b) Alternation
(c) Quasi Contract (d) Implied contract
88. Implied contract even if not is writing or express words, is perfectly __________ if other
conditions are satisfied.
(a) Void (b) Valid
(c) Voidable (d) Illegal
89. The implied condition as to quality or fitness __________ where the buyer contracts for a
specified article under its patent or other trade name not relying on the spill and judgment
of the seller.
(a) Is presumed (b) Is applicable
(c) Is not applicable (d) Does not exist
90. Section __________ of the partnership Act, 1932 deals with partnership at will.
(a) 6 (b) 7
(c) 8 (d) 9
91. Co-ownership may arise either by ___________.
(a) Contract or understanding (b) Status or contract
(c) Mutual agency (d) Either (a) or (b)
92. Sharing of profits is __________ evidence of existence of partnership.
(a) Collaborative (b) Confirmative
(c) Conclusive (d) Not a Conclusive
93. Goods means every kind of immovable property excluding _________.
(a) Stock and shares (b) Growing crops, grass
(c) Both (a) and (b) (d) Actionable claims and currency money

120 Common Proficiency Test (CPT) Volume - II

94. Where the contingency of event merely indicates the mode or manner of performance, the
contract is not _________.
(a) Valid (b) Void
(c) contingent (d) Lawful
95. The event upon which performance of a contingent contract depends must not depend on
the __________ of the promisor.
(a) Will (b) Deeds
(c) Rules (d) Principles
96. Section __________ of the Indian Contract Act, states that in order to convert a proposal
into a promise, it is necessary that acceptance must be absolute and unqualified.
(a) 7 (b) 9
(c) 10 (d) 11
97. Under Sec. 10 of the partnership Act, every partner shall indemnity the firm for loss caused
to it by his __________.
(a) Fraud (b) Error
(c) Mistake (d) Misrepresentation
98. Section ____________ of the partnership Act, 1932 deals with “introduction of a partner”.
(a) 21 (b) 31
(c) 41 (d) 51
99. A invites ‘B’ to stay with him during winter vacation ‘B’ accepts the invitation and informs
‘A’ accordingly when ‘B’ reaches ‘A’ s house he finds it locked and he has to stay in a hotel.
Can ‘B’ claim damages from A.
(a) B can claim damages (b) B cannot claim any damages
(c) B can file a suit against A (d) None of these
100. ‘A’ and ‘B’, co-owners of a house, let it to a paying guest. They divide the net rents between
them. Are they partners?
(a) A and B are partners (b) A and B are not partners
(c) A and B are half partners (d) None of these
SECTION – C : GENERAL ECONOMICS (50 MARKS)

101. Who said “Economics is a science of dynamic growth and development”?

(a) J. B. Say (b) Paul A. Samuelson
(c) Alfred Marshal (d) Robbins
102 Who Said “Economics should be neutral between ends”?
(a) J. B. Say (b) Alfred Marshall
(c) Robbins (d) A. C. Pigou

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103 If marginal opportunity cost is falling, the PPF would be:

(a) Straight line (b) Concave
(c) Backward bending (d) Convex
104 Which of the following would result in a rightward shift of PPF?
(a) An increase in investment in speculative activities by diverting funds from other productive
activities.
(b) A reduction in unemployment rate
(c) The discovery of new gold reserves in the country
(d) Increase in number of people taking leisure activities by taking early retirement from their
jobs
105 Calculate Income-elasticity for a household when the income of this household rises by 5%
and the demand for buttons does not change at all.
(a) Infinity (b) 1
(c) 5 (d) Zero
106 If the goods are perfect substitutes for each other then cross elasticity is
(a) Infinite (b) One
(c) Zero (d) None of the above
107 Consumer Surplus is:
(a) What a consumer is ready to pay + what he actually pays
(b) What a consumer is ready to pay – what he actually pays
(c) What he actually pays - what a consumer is ready to pay
(d) None of the above
108 Indifference curve is convex to the origin due to:
(a) Falling MRS (b) Rising MRS
(c) Constant MRS (d) None of the above
109 Which of the following is not included in the stages of capital formation?
(a) Savings (b) Mobilisation of Income
(c) Mobilisation of Saving (d) Investment
110 Which of the following in correct?
(a) Disinvestment and Privatisation are separate
(b) Privatisation is a narrower concept as compared to disinvestment
(c) Privatisation and Disinvestment mean the same
(d) Disinvestment is a narrower concept than privatisation

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111 In 1973-74, the maximum marginal rate of individual income tax was as high as:
(a) 77.9% (b) 97.7%
(c) 50% (d) 90%
112 SEZ stands far
(a) Software Economic Zones (b) Special Economic Zones
(c) Special Efficiency Zone (d) Software Efficiency Zone
113 FRBMA, 2003 emphasises on the following except:
(a) Revenue-Led Fiscal Consolidation
(b) Rationalisation of Tax Regime
(c) Improve competitiveness of domestic goods and services in a globalised economic
environment
(d) Capital – led fiscal consolation
114 Tax Reform Committee was set up in:
(a) 1992 (b) 1991
(c) 1994 (d) 2000
115 Vishesh Krishi Upaj Yojana has been started to:
(a) Promote agricultural production
(b) Promote agricultural imports
(c) Promote agricultural exports
(d) None of the above
116 A minimum capital required by the companies seeking entry into defense production:
(a) Rs 100 crore (b) Rs 10 crore
(c) Rs 200 crore (d) Rs 50 crore
117 Economic Reforms in India were started in the year:
(a) 1990 (b) 1991
(c) 1992 (d) 1993
118 Which of the following statement is correct?
(a) In 1991 foreign exchange reserves were just sufficient to finance imports of 3 days.
(b) In 1991 foreign exchange reserves were just sufficient to finance imports of 3 weeks.
(c) In 1991 foreign exchange reserves were just sufficient to finance imports of 3 months
(d) In 1991 foreign exchange reserves were just sufficient to finance oil import bill of 3 weeks.
119 DFEC stands far:
(a) Duty Freedom Export Credit (b) Duty Free Export Credit
(c) Direct Foreign Exchange Control (d) Duty Free Exchange Credit

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120 FIEO Stands for

(a) Federation of Indian Export organisation
(b) Federation of Export organisation
(c) Foreign Import Export organisation
(d) Financial Import Export organisation
121 Rupee was devalued in:
(a) July 1990 (b) July 1992
(c) July 1991 (d) July 1994
122 At present there are only _____________ industries for which licensing in compulsory
(a) 6 (b) 10
(c) 18 (d) 9
123 At present _____________ industries are reserved for the public sector
(a) 3 (b) 5
(c) 7 (d) 8
124 If any country needs funds for long term development of the nation, then the country should
approach___________.
(a) World Bank (b) UNO
(c) IMF (d) WTO
125 Dematerialisation of TDS certificates will be made effective from:
(a) 1-1-2008 (b) 1-6-2007
(c) 1-4-2008 (d) 1-4-2009
126 100% FDI is allowed in
(a) Insurance (b) Banking
(c) Hotels and Tourism (d) Defence
127 Which of the following is not the suggestion for improving education system?
(a) Education should be made job oriented
(b) Vocational education should be discouraged
(c) The standard of education should be raised
(d) Expansion of education should be carefully planned since it is costly
128 NIXI stands for:
(a) National Internet Exchange of India
(b) New Information Exchange of India
(c) National Information Exchange of India
(d) Nutrition Information Exchange of India

124 Common Proficiency Test (CPT) Volume - II

129 NHPC stand for:
(a) Nuclear Hydroelectric Power Corporation
(b) National Hydro Power Corporation
(c) National Hydro Public Corporation
(d) National Hydroelectric Power Corporation
130 Non-Commercial traditional sources of energy are
(a) Fire wood (b) Dung Cakes
(c) Agricultural wastes (d) All of the above
131 Three steel plants in Bhilai, Raurkela and Durgapur were set up in the:
(a) First Plan (b) Second Plan
(c) Third Plan (d) Fourth Plan
132 Which of the following statements in correct?
(a) Large number of industries face under utilization of production capacity
(b) The incremental capital output ratio has been falling over the planning period
(c) Industrial Development is balanced in all regions
(d) None of the above
133 Nearly _______ % of labour force is engaged in service sector
(a) 20-25% (b) 25-30%
(c) 30-35% (d) 35-40%
134 India has the ________ largest scientific and technical manpower in the world
(a) Third (b) Second
(c) Fifth (d) Ninth
135 Small units exist in India because:
(a) They are labour intensive and India is a labour surplus economy
(b) They are capital intensive and India is a capital surplus economy
(c) They offer method of inequitable distribution of income and wealth
(d) None of the above
136 CENVAT was introduced in the year:
(a) 2001-02 (b) 2000-01
(c) 2002-03 (d) 2004-05
137 The basic rate of Excise duty is:
(a) 6% (b) 16%
(c) 24% (d) None of the above

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138 Advalorem duty means duty imposed on the basis of:

(a) Percentage of price of the commodity
(b) Per unit on the commodity
(c) Both (a) and (b)
(d) None of the above
139 We mainly study the following in Micro Economics :
(a) Location of a Industry (b) Study of firms
(c) Factor pricing (d) All of the above
140 When we study why saving rates are high or low, we are studying:
(a) Macro Economics (b) Micro Economics
(c) Both (a) and (b) (d) None of the above
141 When ______________, we know that firms are earning just normal profits
(a) AR = MR (b) MC = AC
(c) MC = MR (d) AC = AR
142 MC curve cuts ______________ curves at their minimum points.
(a) AVC and AC (b) AFC and AVC
(c) AC and AFC (d) All the above
143 In perfect competition in the long run there will be___________.
(a) Normal Profits (b) Super Normal Profit
(c) Less production (d) Cost will be falling
144 Which of the following statements is correct?
(a) Monopolist can earn only profits
(b) Firms in a perfectly competitive market are price maker
(c) Industry in a perfectly competitive market is a price taker
(d) AR curve and demand curve are same
145 Soap industry is an example of:
(a) Oligopoly (b) Perfect competition
(c) Monopolistic competition (d) Monopoly
146 A purely competitive firm’s supply schedule in the short run is determined by:
(a) Its average revenue (b) Its marginal revenue
(c) Its marginal cost curve (d) Marginal utility for money curve

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147 When price is less than average variable cost at the profit maximizing level of output, a firm
should:
(a) Shut down, since it cannot recover its variable cost
(b) Produce where MC = MR, if operating in short run
(c) Produce where MC = MR, if operating in long run
(d) None of the above
148 A firm encounters its shut down point when:
(a) Average total cost equals price at the profit maximising level of output
(b) Average variable cost equals price at the profit maximising level of output
(c) Average fixed cost equals price at the profit maximising level of output
(d) Marginal cost equals price at the profit maximising level of output
149 In which form of the market structure is the degree of control over the price of its product
by a firm is very large?
(a) Imperfect competition (b) Monopoly
(c) Oligopoly (d) Perfect competition
150 For the Price taking firm:
(a) Marginal Revenue is less than price
(b) Marginal revenue is greater than price
(c) The relationship between marginal revenue and price is not clear
(d) Marginal revenue is equal to average revenue
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. A fraction is such that if the numerator is multiplied by 3 and the denominator is reduced by
3, we get 18/11, but if the numerator is increased by 8 and the denominator is doubled, we
get 2/5. Then the fraction is
(a) 13/25 (b) 17/25
(c) 12/25 (d) None of these
152. When a number is added to another number the total becomes 150 percent of the second
number. What is the ratio between the first and the second number.
(a) 1:2 (b) 1:3
(c) 2:3 (d) None of these
153. The sum of three consecutive even numbers is 15 less than three–fourth of 60. What is
middle number?
(a) 15 (b) 10
(c) 12 (d) None of these

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154. Five years ago, I was thrice as old as my son and ten years later I shall be twice as old as my
son. How old are we now ?
(a) 50, 20 (b) 45, 15
(c) 65, 25 (d) None of these
155. The compound ratio of 4: 3, 9:13, 26 : 5 and 2 : 15 is

4 16
(a) (b)
25 25
18
(c) (d) None of these
27
156. If 56 Pr+6 : 54 Pr+3 = 30800 : 1 then the value of r is
(a) 42 (b) 41
(c) 45 (d) None of these
157. When John arrives in New York, he has eight shops to see, but he has times only to visit six
of them. In how many different ways can he arrange his schedule in New York?
(a) 20000 (b) 20160
(c) 21160 (d) None of these
158. There are 6 students of whom 2 are Indians, 2 Americans, and the remaining 2 are Russians.
They have to stand in a row for a photograph so that the two Indians are together, the two
Americans are together and so also the two Russians,. Find the number of ways in which
they can do so.
(a) 40 (b) 42
(c) 48 (d) None of these
159. Find the number of different poker hands in a pack of 52 playing cards.
(a) 2598960 (b) 1506210
(d) 5298216 (d) None of these
160. Sum of the digits of a two digits number is 9. The number obtained by reversing the order of
digits of the given number exceeds the given number by 27. Then the given number is
(a) 30 (b) 36
(c) 40 (d) None of these

9x − 3x
161. Evaluate lim
x →0 4x − 2x

log3 ⎛3⎞
(a) (b) log ⎜ ⎟
log2 ⎝2⎠
(c) log 6 (d) None of these
128 Common Proficiency Test (CPT) Volume - II
 (5x − 1)2
162. Evaluate
log e (1 + x)

(a) log 5 (b) (log 5)2

(c) 2log 5 (d) None of these

163. If f(x) = x + 1; for x < 1 and f(x) = 3 – x2; for x > 1 find lim
x →1
f(x)

(a) 2 (b) –2
(c) Does not exist (d) None of these
164. If f(x) = x–1; if 1 < x < 2 , f(x) = 2x–3; if 2 < x < 3, then given function is
(a) Continuous at x = 2 (b) Discontinuous at x = 2
(c) Cannot say (d) None of these

3x 2 + 2x + 7
165. The points of discontinuity of the function is
x 2 − 3x + 2
(a) 1, 2 (b) –1,2
(c) 1, –2 (d) None of these

1
166. Evaluate ∫ x log x dx

⎛ x2 ⎞
(a) log ⎜ log ⎟ + c (b) log (log x ) + c
⎝ 2 ⎠
(c) log (log x2 ) + c (d) None of these

167. Evaluate ∫ log 10 x dx

(a) log10(x log x – x) + c (b) log10 e(x log x – x) + c

(c) log10 e(x log x – 10) + c (d) None of these

4e x + 6e − x
168. Evaluate ∫ x dx
9e − 4e − x

3 35
(a)
4 36
(
− log e 2x + log 9e 2x − 4 + c )
9 36
(b)
8 35
(
− log e x + log 4e x + 6e − x + c )

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MODEL TEST PAPER - 5

3 35
(c) − log e x + log ( 9e x − 4e − x ) + c
2 36
(d) None of these

5−x
169. Evaluate ∫ x−2
dx

(a) ( 5 − x2 )( )
⎛
x − 2 − C os −1 ⎜⎜
3 ⎞
⎟⎟ + c
⎝ x−2 ⎠

(b) ( 5 − x2 )( ) ⎛ x −3 ⎞
x 2 − 2 − tan −1 ⎜⎜
⎝
⎟+c
3 ⎟⎠

⎛ x−2 ⎞
(c) ( 5− x )( )
x − 2 − 3 C os −1 ⎜⎜ ⎟+c
3 ⎟⎠
⎝
(d) None of these

170. Evaluate ∫ (x - 3) x 2 − 6x + 100 dx

1 2 1 3
( x − 6x + 100 ) + c ( x − 6x 2 + 100 ) + c
3/2 2/3
(a) (b)
3 6
1 3
( x − 6x 2 + 100 ) + c
2/3
(c) (d) None of these
3
171. In how many different ways can I invite one or more of my 6 friends?
(a) 63 (b) 64
(c) 60 (d) None of these
172. In an examination a candidate has to pass in each of the 4 papers. In how many different
ways can be failed?
(a) 14 (b) 16
(c) 15 (d) None of these
173. In an election the number of candidates is one more than the number of members to be
elected. If a voter can vote in 254 different ways; find the number of candidates.
(a) 8 (b) 10
(c) 7 (d) None of these

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174. From 17 consonants and 5 vowels, how many words of 3 consonants and 2 vowels can be
made if all the letters are different?
(a) 810000 (b) 816000
(c) 815000 (d) None of these
175. A boat is to be manned by 8 men of which 3 can row only one side and 2 only on the other. In
how many ways can the crew be arranged?
(a) 1720 (b) 1700
(c) 1728 (d) None of these
176. Earnings from a new machine after taxes (cost savings or profits) are expected to be Rs.
34,000 per year. The machine costs Rs. 1,50,000 and after 5 years, it has no resale value. A
loan can be made for this amount payable in five equal annual instalments at 5% p.a. on the
unpaid balance of the loan. Should management buy the machine?
(a) It should not be purchased
(b) It should be purchased
(c) Cannot determined
(d) None of these
177. If simple interest on Rs. 2,000 increases by Rs. 40, when the time increases by 4 years. Find
the rate percent per annum.
(a) 1% (b) 0.5%
(c) 2% (d) None of these
178. A man deposits Rs. 2,000 in a bank at 4% per annum and Rs. 3,000 in UTI at 14% per
annum. Find the rate of interest for the whole sum.
(a) 10% (b) 5%
(c) 15% (d) None of these
179. If the simple interest on Rs. 1,200 be more the interest on Rs. 1,000 by Rs. 30 in 3 years. Find
the rate percent per annum.
(a) 7% (b) 6%
(c) 5% (d) None of these
180. If Simple Interest on Rs. 2,000 increases by Rs. 40, when the rate percent increases by 2%
per annum. Find the time (in years)?
(a) 1 (b) 2
(c) 1½ (d) None of these
181. The average of 2 numbers is 20 and their Standard Deviation is 5. Find the two numbers.
(a) 15, 25 (b) 30, 40
(c) 10, 15 (d) None of these

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182. In series of 5 observations, the values of mean and variance are 4.4. and 8.24 respectively. If
three observations are 1, 2 and 6 then the value of other two observations are
(a) 3, 2 (b) 4, 9
(c) 10, 4 (d) None of these
183. For individual series, the rank of the median is

N + 1th N + 1th
(a) term (b) term
4 2

3 ( N + 1)
th

(c) term (d) None of these

2
184. Find the rank of the Median in the given series 3, 2, 4, 6, 5, 7
(a) 3.5 (b) 4
(c) 4.5 (d) None of these
185. The relation between two variables is 2x + 3y – 10 = 0. If mean of y is 50, then mean of x is
(a) 20 (b) 30
(c) 25 (d) None of these
186. The two regression lines are 5x = 22 + y & 64x = 24 + 45y. Find the Standard Deviation of y
from the given information.
(a) 4 (b) 5
(c) Cannot determined (d) None of these
187. Which one of the following is a true statement?
(a) 1/2 (bxy + byx) = r (b) 1/2 (bxy+ byx) < r
(c) 1/2 (byx + byx) > r (d) None of these
188. The correlation between two variables x and y is found to be 0.4. What is the correlation
between 2x and (–y) ?
(a) 0.4 (b) –0.4
(c) 0.6 (d) None of these
189. Find the coefficient of correlation between the following set of observation:

X: 69 85
Y: 70 87

(a) 1 (b) -1
(c) 0 (d) None of these

132 Common Proficiency Test (CPT) Volume - II

190. Find the correlation coefficient between the following set of observation.
X: 102 109
Y: 50 48

(a) 1 (b) –1
(c) 0 (d) None of these
191. The normal curve is …………. Shaped.
(a) Bell (b) U–Shaped
(c) J–shaped (d) None of these
192. The total area of the normal curve or for that any probability curve is taken to be
(a) 1 (b) 2
(c) 0 (d) None of these
193. The two tails of the normal curve extend infinitely on both sides of the curve…………. The
horizontal axis.
(a) touch (b) never touch
(c) either (a) or (b) (d) None of these
194. For a normal distribution with mean 2 and variance 9, find the value of x such that the
probability of the interval (2, x) is 0.4115.
(a) 7.05 (b) 6.05
(c) 8.05 (d) None of these
195. For a normal distribution, the first moment about origin is 35 and the second moment about
35 is 10. Find the first four central moments.
(a) 5, 10, 0, 100 (b) 10, 6, 0, 200
(c) 0, 10, 0, 300 (d) None of these
196. The most commonly used confidence limit is
(a) 90% (b) 99%
(c) 95% (d) 99.73%
197. Sample mean is a
(a) Parameter (b) Statistic
(c) Both (d) None of these
198. Deliberate sampling is a
(a) Random sampling (b) Non – random sampling
(c) Both (a) and (b) (d) None of these

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199. Stratified random sampling is used for ……….. Population.

(a) Homogeneous (b) Non–homogeneous
(c) Either (a) or (b) (d) None of these
200. Random sampling is also called lottery sampling.
(a) False (b) True
(c) Both (d) None of these

❖❖❖

134 Common Proficiency Test (CPT) Volume - II

 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 6 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. What is the important object of accounting?

(a) To maintain records
(b) Depiction of financial position
(c) Make information available to various groups and users.
(d) All of the three
2. A collateral security of 8,000 10% Debentures of Rs.10 each has been issued at a premium
of 25% to A in lieu of a loan of Rs.1,00,000 taken on 1st January, 2006. At the end of the year,
interest was paid on:
(a) The nominal value of debentures
(b) The amount of loan outstanding
(c) Difference of loan amount and nominal value of debentures
(d) None of the above
3. Income is measured on the basis of
(a) Matching concept (b) Consistency concept
(c) Cost concept (d) None of the above
4. Which of the following is long-term liability?
(a) Outstanding Expenses (b) Share Capital
(c) Debenture (d) All of the above

Common
135 Proficiency Test (CPT) Volume - II 135
MODEL TEST PAPER - 6

5. Drawing is a type of
(a) Expenses (b) Withdrawal of Capital
(c) Income (d) None of the above
6. The most common method of supplementing the capital available to a company is
(a) To issue debentures (b) To issue preference shares
(c) To issue equity shares (d) None of the above
7. Which of the following is not an Intangible Asset?
(a) Investment (b) Goodwill
(c) Copyright (d) Patents rights
8. The Enterprise is liable to the owner for capital investment made by the owner as per
(a) Entity concept (b) Money measurement concept
(c) Accrual concept (d) Going concern concept
9. Which of the following is not a valuation Principle?
(a) Market Value (b) Future Value
(c) Historical Value (d) All of the above
10. Purchase of office equipment on credit will lead to
(a) Decrease in Capital (b) Decrease in Liability
(c) Increase in Assets (d) All of the above
11. Decrease in the amount of Creditors result in
(a) Decrease in Cash (b) Increase in Liability
(c) Increase in Cash (d) None of the three
12. Trial Balance is a
(a) Final Account (b) Statement of day books
(c) Subsidiary book (d) None of the above
13. When overdraft as per Cash Book is the starting point then wrong debit in pass book will be
(a) Deducted from the Bank Reconciliation Statement
(b) No effect in the Bank Reconciliation Statement
(c) Added in the Bank Reconciliation Statement
(d) None of the three
14. Profit is a part of
(a) Income (b) Owner’s Capital
(c) Assets (d) All of the above

136 Common Proficiency Test (CPT) Volume - II

15. Journal is books of
(a) All cash transactions only (b) All credit transactions only
(c) Secondary entry (d) Original entry
16. Balance of Petty Cash Book is posted to ledger
(a) In the Bank a/c (b) In the Cash a/c
(c) Nowhere (d) Both (a) and (b)
17. Petty Cash is used for payment of
(a) Salaries & wages of the staff
(b) For purchase of assets
(c) Small expenses relating to postages and conveyance etc.
(d) All of the above
18. When a cheque is returned dishonoured, it is recorded on
(a) Bank column on the Debit side (b) Bank column on the Credit side
(c) Cash column on the Credit side (d) None of the above
19. Promissory note is prepared by
(a) Drawer (b) Endorsee
(c) Drawee (d) All of the above
20. Which of the following instrument is not a negotiable instrument
(a) Crossed cheque (b) Bill of exchange
(c) Promissory note (d) Bearer cheque
21. Inventories are valued at lower of cost or net reliable value by applying the principle of
(a) Conservatism (b) Consistency
(c) Materiality (d) Disclosure
22. Arti places an order to Anju for supply of certain goods yet to be manufactured. On receipt
of order, Anju purchases raw materials, employs workers, produced the goods and delivered
them to Arti. In this case sale will be presumed to have been made at the time of
(a) Production of goods (b) Delivery of goods
(c) Purchase of material (d) None of the above
23. Ratan deposited a cheque on 25 January, 2006 for a sum of Rs. 20,000. The cheque was
collected on 2 February, 2006. If the bank balance as per passbook as on 31 January, 2006 is
Rs. 60,000; balance as per cash book will be
(a) Rs. 60,000 (b) Rs. 40,000
(c) Rs. 70,000 (d) Rs. 80,000

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MODEL TEST PAPER - 6

24. The company charge interest on call in arrear at

(a) 5% (b) 10%
(c) 15% (d) 20%
25. The maximum amount of capital that a company can raise is called
(a) Authorised capital (b) Subscribed capital
(c) Issued capital (d) Called-up capital
26. Manish & Co. Ltd. forfeited 100 shares of Rs. 10 each, Rs. 8 called up, Rs. 4 paid on
application; the amount to be forfeited is
(a) Rs. 800 (b) Rs. 400
(c) Rs. 600 (d) Rs. 200
27. In the absence of any agreement, the partners are entitled to interest on the loan advanced
to the firm at the rate of
(a) 5% (b) 7%
(c) 6% (d) 8%
28. Calculate gross profit if rate of gross profit is 25% on sales and cost of goods are Rs.1,80,000
(a) Rs. 60,000 (b) Rs. 36,000
(c) Rs. 45,000 (d) Rs. 30,000
29. Cost of motor Rs. 2,00,000, scrap value Rs. 20,000. Useful life 4 years. What will be amount
of depreciation according to sum of years digit method in the first year?
(a) Rs. 72,000 (b) Rs. 1,08,000
(c) Rs. 80,000 (d) Rs. 1,20,000
30. An asset has a useful life of 4 years. If it is depreciated by diminishing balance method. Its
book value at the end of 4 years is 24% of its original cost. Hence the rate of depreciation
applied is
(a) 20% (b) 30%
(c) 25% (d) 35%
31. Valuation of inventory is dealt within
(a) AS-2 (b) AS-3
(c) AS-4 (d) AS-5
32. Consider the following items
(1) Prepaid Salary (2) Accrued Interest
(3) Loan (4) Bank overdraft
Current Liability would include
(a) 1,2,3,4 (b) 2,3,4
(c) 4,3,1 (d) 3,4,

138 Common Proficiency Test (CPT) Volume - II

33. B’s trial balance contains the following information-
Make provision at the end of the year Rs. 10,000
Provision for bad debts at the
beginning of the year Rs. 4,000
Bad Debts Rs. 6,000
The amount to be debited to Profit & Loss A/c

(a) Rs. 20,000 (b) Rs. 8,000

(c) Rs. 12,000 (d) NIL
34. A trial balance at 31st March contains the following information: 15% Loan Rs. 30,000;
Interest paid Rs. 3,000 ; Interest debited to the P & L A/c is
(a) Rs. 1,500 (b) Rs. 4,500
(c) Rs. 6,000 (d) Nil
35. Total operating expenses 30,000; total direct expenses Rs.10,000; Miscellaneous income
Rs.5,000 the gross profit will be
(a) Rs. 25,000 (b) Rs. 20,000
(c) Rs. 15,000 (d) Rs. 10,000
36. X and Y entered into a joint venture sharing profits and Losses equally. X provides goods
from his stock Rs. 20,000. He pays expenses amounting to Z 20,000. Y incurs further expenses
on carriage Rs. 3,000. He received cash for sales Rs. 35,000. He also takes over goods to the
value of Rs. 5,000. What will be the amount to be remitted by Y to X?
(a) Rs. 29,500 (b) Rs. 35,000
(c) Rs. 7,500 (d) Rs. 22,000
37. Ram and Shyam entered into a Joint venture for equal profits. Ram purchases goods costing
Rs. 70,000. Shyam sold goods costing Rs. 60,000 at Rs. 80,000. Balance goods were taken
over by Ram at same gross profit percentage as in case of sale. The value of goods taken over
will be
(a) Rs. 10,000 (b) Rs. 13,333
(c) Rs. 3,333 (d) Rs. 23,333
38. Guarantee given to a partner Mohan by the other partner Suresh and Mahesh means
(a) In case of Loss or insufficient profit ‘Mohan’ will withdraw the minimum guaranteed
amount
(b) In case of Loss ‘Mohan’ will not contribute towards that loss
(c) Even in case of sufficient profit ‘Mohan’ will receive only the minimum guaranteed amount
(d) None of the above

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39. Naresh is drawing Rs. 2,000 per month at the end of the month. If the rate of interest is 10%
p.a. the total interest chargeable from him in the accounting year will be
(a) Rs. 2,400 (b) Rs. 1,200
(c) Rs. 1,100 (d) None of the above
40. In the absence of any agreement, partners are entitled to
(a) Share Profit in capital ratio
(b) Interest on capital
(c) Salary on capital
(d) Interest on loans and advances gain to the firm
41. Interest on capital will be paid to the partners if provided for in the agreement but only from
(a) Goodwill (b) Current profit
(c) Reserves & Surplus (d) Accumulated profit
42. Sita and Gita are partners sharing ratio of 3:2 (Sita’s capital Rs. 6,000 and Gita’s capital Rs.
3,000). They admitted Rita for 1/5th share of profit . How much Rita should bring toward
her capital?
(a) Rs 2,250 (b) Rs. 3,000
(c) Rs. 1,800 (d) Rs. 6,000
43. As per table A of the companies Act, 1956, a company pays interest on call in advance at the
rate of
(a) 4% (b) 5%
(c) 6% (d) 7%
44. As per table A of the companies Act 1956, a Company can charge interest on call in arrears
at the rate of
(a) 5% (b) 6%
(c) 7% (d) 8%
45. A share of Rs. 200 each issued at discount of 10% is forfeited for non-payment of final call @
Rs. 50 per share. The maximum loss it can bear in the re-issue of shares will be
(a) Rs. 200 (b) Rs. 50
(c) Rs. 20 (d) Rs. 70
46. If on a share of Rs. 50, only Rs. 40 has been called and the company has received Rs. 30 till
date. The capital account should be credited with
(a) Rs. 50 (b) Rs. 30
(c) Rs. 40 (d) Rs. 20

140 Common Proficiency Test (CPT) Volume - II

47. There are 60,000 preference share of Rs. 10 each fully called up. But there are call in arrears
of Rs. 4,000 @ Rs. 2 per share. Company can redeem at present
(a) 60,000 shares (b) 56,000 shares
(c) 58,000 shares (d) None of the above
48. A company cannot issue redeemable preference shares for a period exceeding
(a) 10 years (b) 20 years
(c) 15 years (d) 25 years
49. Preference shares amounting to Rs. 75,000 are redeemed at a premium of 5% by issue of
equity shares amounting to Rs. 40,000 at a premium of 10%. The amount to be transferred
to capital redemption reserve account will be
(a) Rs. 35,000 (b) Rs. 36,750
(c) Rs. 38,500 (d) Rs. 1,15,000
50. Lal & Co. Ltd. has issued 15% debentures on 1st January, 2004 for Rs. 2,00,000. Interest if
payable on 31st March and 30th September every year. Amount of outstanding interest on
31st December, 2005 will be
(a) Rs. 7,500 (b) Rs. 30,000
(c) Rs. 15,000 (d) Rs. 22,500
51. Loss on issue of Debentures is generally written off in
(a) 10 years (b) 8 years
(c) Over the period of redemption (d) 15 years
52. Depreciation is provided on
(a) Fixed Assets (b) Current Assets
(c) Liquid Assets (d) Fictitious Assets
53. A fixed assets costing Rs. 60,000 has an estimated life of 8 years. At the end of its useful life
it can be sold for Rs. 12,000. Using the fixed instalment method, the annual depreciation
against profit will be
(a) Rs. 9,000 (b) Rs. 6,000
(c) Rs. 12,000 (d) Rs. 10,000
54. At what price goods pending approval or return as on the last day of accounting year are
valued
(a) Cost price (b) Selling price
(c) Average price (d) Latest price
55. Rent paid to Landlord amounting to Rs. 1,000 was credited to rent account with Rs. 10,000.
In the rectifying entry rent a/c will be debited with
(a) Rs. 11,000 (b) Rs. 1,000
(c) Rs. 9,000 (d) Rs. 10,000

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56. Sales to A of Rs. 600 not recorded in the books would affect
(a) Sales A/c (b) A’s A/c
(c) Cash A/c (d) Sales A/c and A’s A/c
57. X draw an accommodation bill on Y for Rs. 7,000. The proceeds are to be shared by X and Y
in the ratio of 3:2. The bill was discounted for Rs. 6,700. Discount borne by X will be
(a) Rs. 120 (b) Rs. Nil
(c) Rs. 300 (d) Rs. 180
58. When overdraft as per cash book is the starting point, Bank charges of Rs. 300 recorded
twice in the passbook will be
(a) Added by Rs. 300 (b) Deducted by Rs. 300
(c) Deducted by Rs. 600 (d) Added by Rs. 600
59. Ram send 50 fans to Shyam costing Rs. 500 per fan to be sold at 20% above cost price. Sales
value will be
(a) Rs. 25,000 (b) Rs. 20,000
(c) Rs. 30,000 (d) Rs. 31,250
60. If capital at the end of the year is Rs. 40,000; capital introduced during the year Rs. 30,000;
Drawings for the year is Rs. 20,000 and Loss of the year is Rs. 60,000 then capital at the
beginning of the year was
(a) Rs. 90,000 (b) Rs. 80,000
(c) Rs. 70,000 (d) Rs. 10,000

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. Which of the following is correct? When a minor has been supplied with necessaries on
credit.
(a) Minor is not liable (b) Minor’s estate is liable
(c) Minor is personally liable (d) Minor is liable at his option
62. Which one of the following is not a wagering agreement?
(a) A lottery
(b) An agreement to buy a ticket for a lottery
(c) Commercial transaction, the intention of which is not to deliver the goods but only to pay
the difference in price
(d) A contract of insurance
63. Which of the following persons are not competent to contract?
(a) Person of Indian origin (b) Person disqualified by law
(c) Minor (d) Person of unsound mind

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64. Which are the following elements that affect the consent of the party?
(a) Undue Influence (b) Representation
(c) Fraud (d) Coercion
65. Which of the following agreements are void?
(a) Agreements the consideration of which is unlawful
(b) Agreements made under the unilateral mistake of fact
(c) Agreements made under the bilateral mistake of fact
(d) Contingent agreement
66. Vindictive Damages are awarded
(a) For wrongful dishonour of cheque by a banker
(b) For a breach of promise to marry
(c) Neither (a) nor (b)
(d) Either (a) or (b)
67. In which of the following situations specific performance can be granted?
(a) When there is no exact substitute or alternative to the subject matter of the contract
(b) When it is probable that compensation in money cannot be got for non-performance
(c) (a) or (b)
(d) (a) and (b)
68. Which of the following statements is not correct?
(a) Ordinary damages are recoverable
(b) Special damage are recoverable only if the parties knew about them
(c) Remote or indirect damages are not recoverable
(d) None of these statements is incorrect
69. An agreement between the bidders not to bid against each other is called
(a) Knock –out agreement (b) Auction agreement
(c) Partnership agreement (d) By bidder agreement
70. Under Section 61 of the Sale of Goods Act, a court can award interest
(a) At the rate of 12% (b) At the rate of 8%
(c) At the rate of 6% (d) At the rate as it thinks fit
71. An auction sale may be
(a) Conditional (b) Unconditional
(c) voidable (d) None of the above
72. The bidder at an auction sale can withdraw his bid
(a) Any time during auction (b) Before fall of hammer
(c) Before payment of price (d) None of these

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73. Transfer of property in goods sent on approval take place when

(a) Buyer signifies his approval
(b) When he makes the return by goods impossible
(c) When he retains goods without signifying approval for unreasonably long time
(d) All of the above
74. If the goods are not in existence (not produced at the time of agreement to sell), goods are to
be delivered at
(a) The place at which they are manufactured or produced
(b) The buyer place
(c) The sellers place
(d) None of the above
75. A buyer is deemed to have accepted the delivery of goods
(a) When it is in accordance with the terms of the contract
(b) When seller is ready but not willing for giving the possession of the goods
(c) When the seller delivers the goods at the place at which they are at time of sale
(d) All of the above
76. The property in the goods means the
(a) Ownership of goods (b) Possession of goods
(c) Custody of goods (d) Both (b) and (c)
77. In case of a hire - purchase the hirer
(a) Can pass a goods title to a bona fide purchaser
(b) Can choose whether to pass or not to pass the goods
(c) Cannot pass a goods title to a bona fide purchaser
(d) All of the above
78. Nemo-dat quad non habit means
(a) Result to pay the price of goods
(b) Nobody can give that the himself does not have
(c) Title is not clear
(d) Delivery is not possible
79. If the consent is caused by coercion is to be proved by
(a) Both the parties (b) The aggrieved party
(c) The party causing coercion (d) None of these
80. In case of reciprocal promise, first to do things which are legal are ________ and second to
do things which are illegal are ________.
(a) Valid, void (b) Void, voidable
(c) Valid, illegal (d) Void, void

144 Common Proficiency Test (CPT) Volume - II

81. All agreements in restraint of trade are ________.
(a) Void (b) Valid
(c) Voidable (d) Illegal
82. Doctrine of restitution does not apply against a ________.
(a) Person of unsound mind (b) Fraud
(c) Minor (d) None of the above
83. In the absence of a contract to contrary, the ___________ is under a duty to apply for delivery
of goods.
(a) Seller (b) Buyer
(c) Bailee (d) No body
84. Compensation shall not be given for any remote and indirect loss sustained by reason of
breach it is ___________.
(a) True (b) Partly true
(c) False (d) Partly false
85. The partner who does not take part in the conduct of the business is known as _______.
(a) Sub-partner (b) Nominal partner
(c) Sleeping partner (d) All of the above
86. The term promisor and promisee has been defined in __________ of the Indian Contract
Act.
(a) Section 2(a) (b) Section 2(b)
(c) Section 2(c) (d) Section 2(d)
87. When all partners, or all but one partner, of the firm are declared insolvent then ______.
(a) Firm is automatically dissolved
(b) Firm is also declared insolvent
(c) Solvent partner has to repay the debts of the firm
(d) None of the above
88. If the agreement contains a basis for ascertaining the meaning of vogue term, the agreement
is ________ on the ground of its being vague.
(a) Valid (b) Void
(c) Not Void (d) Voidable
89. Promissory estoppel is sometimes spoken of as a substitute for _______.
(a) Novation (b) Quasi contract
(c) Consideration (d) Coercion

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90. The property in the goods means _________.

(a) The possessing of goods (b) Custody of goods
(c) Ownership of goods (d) Both (a) and (b)
91. Deliverable state is defined in Section_________.
(a) 2(1) (b) 2(2)
(c) 2(3) (d) 2(4)
92. When buyer repudiates the contract before the date of delivery the seller may _________.
(a) Sue for damages (b) Sue for price
(c) Rescind the contract (d) None of the above
93. A partnership at will is on __________.
(a) Which does not have any deed
(b) Which does not have any partner
(c) Which does not provide for how long the business will continue
(d) Which cannot be dissolved
94. Partner by holding out is_________.
(a) A person representing himself to be a partner of the firm by words spoken or written or by
him conduct
(b) Partner of a firm but the outsiders do not know him as such
(c) Partner of a partner of a firm
(d) Partner of a firm but does not take part in the business of the firm
95. Active partner is one who _______.
(a) Actively takes part in the business of the firm
(b) Actively participate in co-curricular activities
(c) Actively shares the profits
(d) Makes a show of authority
96. The term possession of goods refers __________.
(a) Ownership of goods (b) Custody of goods
(c) Transfer of goods (d) Property in real estate
97. Right of unpaid seller, as to stoppage in transit has been provided in ___________ of the Sale
of Goods Act.
(a) Section 51 (b) Section 50
(c) Section 49 (d) Section 48

146 Common Proficiency Test (CPT) Volume - II

98. Where a corporation enters into a contract beyond the scope of the objects, such a contract
is said to be ___________.
(a) Intra Vires (b) Ultra Vires
(c) Ultimo Vires (d) Infra Vires
99. ‘A’ and ‘B’ were two partners in a firm of sugar dealers. Unknown to ‘B’ ‘A’ supplies at a
particular time his own stock of sugar to the firm at market price and makes profit. Decide
whether
(a) ‘A’ can personally keep this profit
(b) ‘A’ cannot keep this profit
(c) A can keep half of profit
(d) A can keep one fourth of profit
100. ‘A’ polished ‘B’ shoes without being accepted by ‘B’ to do so. ‘B’ does not make any attempt
to stop ‘A’ from polishing the shoes. Decide.
(a) B is bound to pay
(b) B is not bound to pay
(c) B is bound to pay damages any incurred by A
(d) None of these
SECTION – C : GENERAL ECONOMICS (50 MARKS)

101. In Micro Economics we study the Economic behaviour of:

(a) An Individual (b) Firm
(c) Industry (d) All of the above
102. Which of the following statements is correct?
(a) As normative science, Economics involves value judgments
(b) Robbins has made economics as a form of welfare economics
(c) The Law of Demand is always true
(d) None of the above
103. An economy achieves “ productive efficiency” when:
(a) The best quality goods are produced
(b) The highly skillful resources in the country are fully employed
(c) All resources are utilized and goods and services are produced at least cost
(d) None of the above
104. Economic goods are goods which:
(a) Cannot be increased in quantity
(b) Obey the law of Micro Economics
(c) Are limited in supply and are scarce
(d) Are limited to man-made goods.

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105. Which of the following means an Economic activity?

(a) Production of Goods
(b) Production of Services
(c) Consumption of Goods and Services
(d) All of the above
106. Which economy is now a myth only, as no country in the world is having that type of economy?
(a) Capitalist Economy (b) Socialist Economy
(c) Mixed Economy (d) None of the above
107. If the proportion of income spent on a goods decreases as income rises then income elasticity
is:
(a) Greater than one (b) Less than one
(c) One (d) Zero
108. If two goods are totally unrelated, then cross elasticity between them is:
(a) Zero (b) One
(c) Infinite (d) None of the above
109. The income of a household rises by 20 percent, the demand for computer rises by 50%, this
means computer is a/an:
(a) Inferior good (b) Luxury good
(c) Necessity (d) None of the above
110. Which of the following is considered production in Economics?
(a) Teaching CA students in CA Institute by a teacher
(b) Singing a song before friends
(c) Flying kite for pleasure
(d) Teaching to friends in a library any concept of Economics
111. The following is not the characteristic of Land:
(a) Land varies in fertility and uses
(b) Land is highly immobile
(c) The supply of land is perfectly elastic from the point of view of the economy
(d) The supply of land is perfectly inelastic from the point of view of the economy
112. Fiscal Policy is given by:
(a) Ministry of Finance (b) RBI
(c) Planning Commission (d) Parliament
113. In India, except in the Election year, Budget is given on:
(a) Last day of March (b) 1st day of April
(c) 1st January (d) Last day of February

148 Common Proficiency Test (CPT) Volume - II

114. SDR stands for:
(a) Security Drawing Rights (b) Super Drawing Rights
(c) Systematic Drawing Rights (d) Special Drawing Rights
115. PTA stands for:
(a) Plurilateral Trade Agreements
(b) Private Trade Agreements
(c) Plurilateral Transaction Agreements
(d) Public Trade Agreements
116. The number of members of WTO are (as on 11.1.2007)
(a) 177 (b) 184
(c) 150 (d) 177
117. International Finance Corporation comes under:
(a) WTO
(b) World Bank
(c) IMF
(d) United Nation Development Associations
118. Which of the following is not the function of World Bank?
(a) To help its member countries in the reconstruction and development of their territories
(b) To provide finance for long-term purposes
(c) To provide finance for short-term purposes
(d) To encourage private foreign investment and credit by providing guarantee of repayment
of private industries
119. IBRD (World Bank) was set up in:
(a) 1946 (b) 1947
(c) 1945 (d) 1919
120. Fiscal Deficit minus borrowings and other liabilities is equal to:
(a) Revenue Deficit (b) Primary Deficit
(c) Capital Deficit (d) Budget Deficit
121. An increase in SLR will result in
(a) An increase in revenue deficit (b) A decrease in revenue deficit
(c) An increase in fiscal deficit (d) No change in fiscal deficit
122. Under which of the following tax system, more tax is imposed on the lower income group?
(a) Regressive (b) Progressive
(c) Value Added Tax (d) Proportional Tax

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123. Open market purchase of government bonds by RBI will have the tendency to:
(a) Decrease interest rates, but increase money supply
(b) Decrease interest rates, but decrease money supply
(c) Increase interest rates, but increase money supply
(d) Increase interest rates, but decrease money supply
124. Banks rate means:
(a) Rate of interest paid by banks to depositors
(b) Rate below which banks cannot lend money to borrowers
(c) Rate of interest charged by RBI on its loan to other commercial banks
(d) Rate of interest charged by commercial banks for loan given to RBI
125. When prices are rising and there is unemployment and recession in the economy, then the
phenomenon is called:
(a) Inflation (b) Stagflation
(c) Deflation (d) Reflaction
126. When too much money chases too few goods the resulting inflation is called:
(a) Deflation (b) Cost-push inflation
(c) Stagflation (d) Demand-pull inflation
127. NLM stands for:
(a) National Leprosy Mission (b) National Law Mission
(c) National Logistic Mission (d) National Literacy Mission
128. Over the year, the incidence of malaria has _____________
(a) Increased (b) Reduced
(c) Remained the same (d) Doubled
129. Who is regulatory authorities for securities market in India?
(a) RBI (b) SEBI
(c) TRAI (d) BSE
130. Postal network in India is __________ in the world.
(a) Third largest (b) Second largest
(c) Largest (d) Tenth largest
131. Which year is known as year of great divide for Indian population?
(a) 1911 (b) 1921
(c) 1931 (d) 1941
132. India is passing through ___________ stage of Demographic Transition.
(a) Fourth (b) First
(c) Second (d) Third

150 Common Proficiency Test (CPT) Volume - II

 Use following table to answer questions 133-136.

Quantity Variable Cost Fixed Cost Total Cost AVC ATC MC

0
5 25
10 470
15 700
20 980
25 1350
30 1850
35 2520
40 3400
45 4530
50 5950
A firm operating in perfect competition sells as much as of its products as it chooses at a market
price of Rs. 100 per unit. It Fixed cost is Rs. 300 and its Variable cost for different levels of
production are shown in the above table
133. When production is 40 units, the average cost is:
(a) Rs. 4.40 (b) Rs. 7.50
(c) Rs. 85 (d) Rs. 92.50
134. In the table, marginal cost per unit that corresponds to 40 units of production is:
(a) Rs. 22 (b) Rs. 85
(c) Rs. 176 (d) Rs. 880
135. To maximize profit the firm should produce:
(a) 15 units (b) 30 units
(c) 35 units (d) 50 units
136. If the market price drops from Rs. 100 to Rs. 56 per unit, the firm’s short run response
should be
(a) Shut down
(b) Produce 5 units
(c) Produce 20 units
(d) Continue to produce the same number of units as before the drop in price

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Use following table to answer questions 137 to 138

Hours of Labour Total Output Marginal Product
0
1 200 200
2 - 160
3 480 -
137. What is the total output when 2 hours of Labour are employed?
(a) 160 (b) 200
(c) 360 (d) 400
138 What is the marginal product of the third hour labour?
(a) 120 (b) 160
(c) 200 (d) 480
Use table to answer question 139-142
Mohan sweets is a small restaurant and a price taker. The table below provides the data of Mohan’s
Sandwich output and costs in Rupees
Quantity TC TFC TVC AVC AC MC
0 100
10 210
20 300
30 400
40 540
50 790
60 1060

139. If Sandwiches are being sold for Rs. 14 each, what is Mohan’s profit maximising level of
output?
(a) 10 Sandwiches (b) 40 Sandwiches
(c) 50 Sandwiches (d) 60 Sandwiches
140. What is the total variable cost when 60 sandwich are produced?
(a) Rs. 690 (b) Rs. 960
(c) Rs. 110 (d) Rs. 440

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141. What is average fixed cost when 20 sandwiches are produced?
(a) Rs. 5 (b) Rs. 3.33
(c) Rs. 10 (d) Rs. 2.5
142. Between 10 to 20 sandwiches, what is the marginal cost per sandwich?
(a) Rs. 11 (b) Rs. 13
(c) Rs. 14 (d) Rs. 9
143. In July, 1991 Indian devalued the rupee by about:
(a) 19% (b) 29%
(c) 13% (d) 9%
144. The marginal product of a variable input is best described as:
(a) Total product divided by the number of units of variable input
(b) The additional output resulting from a one unit increase in the variable input
(c) The additional output resulting from a one unit increase in both the variable and fixed
inputs
(d) None of the above
145. Which of the following is the most profitable, but least liquid asset of a commercial bank?
(a) Loan and advances
(b) Money at call and short notice
(c) Bills discounted and purchased
(d) Investment in Government securities
146. In the short run, when the output of a firm increases its average fixed cost:
(a) Increases
(b) Decreases
(c) Remains constant
(d) First declines then rise
147. Contraction of demand is the result of:
(a) Decrease in the number of consumers
(b) Increase in the price of the goods concerned
(c) Increase in the price of other goods
(d) Decrease in the income of purchases
148. The indifference curve approach assumes:
(a) Rationality (b) Consistency
(c) Transitivity (d) All of the above

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149. According to the 2001 census the total literacy rate is:
(a) 32.5% (b) 52.1%
(c) 65.4% (d) 75.8%
150. The Telephone penetration rate in India is _________ per 100 population.
(a) 11.32 (b) 15.34
(c) 25.56 (d) 19.22
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. If one-fifth of one-third of one-half of number is 15, then number is

(a) 400 (b) 450
(c) 500 (d) None of these
152. Three-fourth of one–fifth of a number is 60. The number is
(a) 300 (b) 400
(c) 500 (d) None of these
153. Four-fifths of three-eighths of a number is 24. What is 25% of that number?
(a) 100 (b) 160
(c) 1120 (d) 200
154. If the sum of a number and its square is 182, what is the number?
(a) 13 (b) 14
(c) 15 (d) None of these
155. The sum of the digits of a two digit number is 12. If the digits are reversed, the number is
decreased by 18. Find the number.
(a) 75 (b) 93
(c) 84 (d) 57
156. A bag contains rupee, 50 paise and 25 paise coins in the ratio 10:14:18. If the total amount in
the bag is Rs. 430, find the number of coins of each kind.
(a) 200, 280, 360 (b) 280, 200, 360
(c) 360, 280, 200 (d) None of these
157. Two vessels contain equal quantity of mixtures of milk and water in the ratio 5:2 and 6:1
respectively. Both the mixtures are now mixed thoroughly. Find the ratio of milk to water in
the new mixture so obtained.
(a) 3:11 (b) 11:3
(c) 12:13 (d) None of these

154 Common Proficiency Test (CPT) Volume - II

158. The vessels contain water and milk in the ratio 1:2 and 2:5 are mixed in the ratio 1:4. The
resulting mixture will have water and milk in the ratio.
(a) 31:74 (b) 31:75
(c) 30:77 (d) None of these
159. The ratio of the incomes of two persons is 9:7 and the ratio of their expenditures is 4:3. If
each of them saves Rs. 200 per month, then their monthly incomes.
(a) Rs. 1,800, Rs. 1,400 (b) Rs. 1,600, Rs. 1,200
(c) Rs. 1,400, Rs. 1,200 (d) None of these
160. An amount of Rs. 950 is distributed among A, B & C in the ratio of 5:11:3, what is the
difference between the share of B and A.
(a) 300 (b) 340
(c) 500 (d) None of these

e − x − e −1
161. Evaluate lim
x →1 x −1

1 −1
(a) (b)
e e
(c) e (d) None of these

(1 + x)x − 1
162. Evaluate lim
x →0 x

1
(a) (b) –n
n
(c) n (d) None of these

(x + 2)5/3 − (a + 2)5/3
163. Evaluate lim
x →0 x−a

5 5(a + 2)1/3
(a) (a + 2) 2/3 (b)
3 3
5
(c) (a + 2)1/ 2 (d) None of these
3

Common Proficiency Test (CPT) Volume - II 155

MODEL TEST PAPER - 6

2x − 3x
165. Evaluate lim
x →0 x

⎛2⎞
(a) log 6 (b) log ⎜ ⎟
⎝3⎠
3
(c) log (d) None of these
2
166. If f’(x) = 3x2 + 2 & f(0) = 0 then find f(2).
(a) 8 (b) 10
(c) 12 (d) None of these

x+3
167. Evaluate ∫x 2
+ 6x + 4
dx

1 1
(a) log ( x 2 + 6x + 4 ) + c (b) − x + log ( x 2 + 6x + c ) + c
2 2
1
(c) log ( x + 3) + c (d) None of these
2

x −1
Evaluate ∫
x
168.
e dx
( x + 1)
3

ex
(a) +c (b) x2 + log (ex + 1) + c
(x + 1) 2
(c) (x + 1)2 + log (ex + 1) + c (d) None of these

∫
Evaluate ( 3x + 5) dx
4
169.

(3x + 5)5 (3x + 5)5

(a) +c (b) +c
3 15
(3x + 5) 4
(c) +c (d) None of these
15

156 Common Proficiency Test (CPT) Volume - II

170. Evaluate ∫ 7x + 5 dx

2 1
(a) (7x + 5)3/ 2 + c (b) (7x + 5)3/ 2 + c
21 21
(c) (7x + 5)3/2 + c (d) None of these
171. Three gentlemen and three ladies are candidates for two vacancies. A voter has to vote for
two candidates. In how many different ways can one cast his vote?
(a) 10 (b) 12
(c) 15 (d) None of these
172. In a party of 40 people, each shakes hand with others. How many handshakes took place in
the party?
(a) 780 (b) 700
(c) 880 (d) None of these
173. How many different triangles can be formed joining the angular points of a polygon of m
sides?

m(m − 1)(m − 2) m(m − 1)

(a) (b)
6 2
(c) m (d) None of these
174. How many different cricket teams of 11 players can be selected from 14 cricket players of
which only two can play as wicketkeeper? Given each team must have exactly one
wicketkeeper?
(a) 130 (b) 132
(c) 140 (d) None of these
175. Mr. X has 8 children of which he takes 3 at a time to the circus. Find, how many times a
particular child goes to the circus?
(a) 20 (b) 30
(c) 21 (d) None of these
176. If ax = by = cz and x, y, z are in G.P. then log a, log b and log c are in
(a) A.P. (b) G.P.
(c) A.P. and G.P. both (d) None of these

Common Proficiency Test (CPT) Volume - II 157

MODEL TEST PAPER - 6

1
177. The 6th term from the end of the G.P. 8, 4, 2, 1, …………………………., is
1, 024

1
(a) (b) 32
64
1
(c) (d) None of these
32
178. In a finite G.P., the product of two terms equi distant from the beginning and from the end is
equal to the product of the first and the last term of the G.P. This statement is
(a) True (b) False
(c) Cannot say (d) None of these

a c
179. If a, b, c are in G.P., a, x, b and b, y, c are both in A.P., then + is equal to
x y
(a) 1 (b) 0
(c) 2 (d) None of these

1 1
180. If a, b, c are in G.P., a, x, b and b, y, c are both in A.P., the value of + is
x y

1 2
(a) (b)
b b
2
(c) − (d) None of these
b
181. The number of times a particular item occurs in a given data is called its
(a) Variation (b) Frequency
(c) Cumulative frequency (d) None of these
182. The width of each of ten classes in a frequency distribution is 2.5 and the lower class boundary
of the lowest class is 10.6. Which one of the following is the upper class boundary of the
highest class?
(a) 35.6 (b) 33.1
(c) 30.6 (d) None of these

158 Common Proficiency Test (CPT) Volume - II

183. Let L be the lower class boundary of a class in a frequency distribution and m be the mid
point of the class. Which one of the following is the higher class boundary of the class?

m+2 m+L
(a) m+ (b) L+
2 2
(c) 2m – L (d) m – 2L
184. The mean of the values of 1, 2, 3 …………, n with respective frequencies x, 2x, 3x, ……… nx
is

n +1 n
(a) (b)
2 2
2n + 1 2n + 1
(c) (d)
3 6
185. The mean of four observations is 10 and when a constant a is added to each observation, the
mean becomes 13. The value of a is
(a) 2 (b) –3
(c) 3 (d) None of these
186. For the bivariate data [(x, y)] = [(20,5), (21,4), (22,3)], the correlation coefficient between x
and y is
(a) 0 (b) 1
(c) –1 (d) 0.5
187. For a (m×n) classification of bivariate data, the maximum number of conditional distributions
is
(a) q (b) p+q
(c) pq (d) p
188. The regression of y on x is 2y + 3x = 4 and the correlation coefficient between x and y is 0.8.
This statement is
(a) True (b) False
(c) Cannot say (d) None of these
189. The correlation coefficient of 3x and –2y is the same as the correlation coefficient Of x and y.
This statement is
(a) True (b) False
(c) Cannot say (d) None of these
190. When the correlation coefficient r = ± 1, then the two repression lines are
(a) Perpendicular to each other (b) Coincide
(c) Parallel to each other (d) Do not exist

Common Proficiency Test (CPT) Volume - II 159

MODEL TEST PAPER - 6

191. In a binomial distribution with 6 independent trials, the probability of 3 and 4 successes is
found to be 0.2457 and 0.0819 respectively. Find the parameters p and q of the binomial
distribution.

2 1 4 9
(a) , (b) ,
13 13 13 13
5 2
(c) , (d) None of these
13 13
192. E (x.y) = E(x). E(y), where x and y are independent random variables. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
193. Probability distribution is known as theoretical distribution. This is
(a) False (b) True
(c) Either (a) or (b) (d) None of these
194. Mean of the probability distribution of random variable x is
(a) E(x) (b) E(x2)
(c) E(x)2 (d) None of these
195. An attempt to produce a particular outcome which is neither certain nor impossible is called.
(a) Event (b) Trial
(c) Sample Space (d) None of these
196. Which measure of dispersion has some desirable mathematical properties?
(a) Standard Deviation (b) Mean Deviation
(c) Q.D. (d) None of these

2 dy
197. If x 1 + y + y 1 + x = 0; then (1 + x) is equal to
dx
(a) 0 (b) 11
(c) –1 (d) None of these

198. If y = x ( )
x 2 + 1 + log x + x 2 + 1 then
dy
dx
is equal to

(a) x2 +1 (b) 2 x +1
(c) 2 x2 +1 (d) None of these

160 Common Proficiency Test (CPT) Volume - II

 d2y
199. If y = aemx + be–mx then is
dx 2
(a) my (b) m2y2
(c) m2y (d) None of these of these
200. If 12C5 + 2 12C4 + 12C3 = 14Cx then the value of x is:
(a) 5 (b) 9
(c) 5 or 9 (d) None of these

❖❖❖

Common Proficiency Test (CPT) Volume - II 161

 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 7 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. Consignment Account is
(a) Personal A/c (b) Real A/c
(c) Nominal A/c (d) Both (a) & (b)
2. Bills receivable is….
(a) Personal A/c (b) Real A/c
(c) Nominal A/c (d) Both (a) and (b)
3. Return Inwards books records…….
(a) Purchase returns (b) Sales returns
(c) Cash Sales returns (d) Both (a) and (c)
4. Parties to Bills of exchange are
(a) Drawer (b) Drawee
(c) Payee (d) All of the above.
5. Contra entries are passed only when
(a) Single column Cash Book is prepared
(b) Double column Cash Book is prepared
(c) Three column Cash Book is prepared
(d) Petty Cash Book is prepared

Common Proficiency Test (CPT) Volume - II 163

MODEL TEST PAPER - 7

6. Sale or return day book is a

(a) Personal A/c (b) Suspense A/c
(c) Memorandum A/c (d) Nominal A/c
7. Goodwill is a
(a) Current Asset (b) Intangible asset
(c) Personal asset (d) Tangible Asset
8. Prepaid insurance is….
(a) Nominal A/c (b) Real A/c
(c) Personal A/c (d) None of the above
9. Cash column in Cash Book always has
(a) Credit Balance (b) Both (a) and (c)
(c) Debit Balance (d) None of the above
10. Total of the sales day book is posted periodically to the credit of
(a) Sales Books (b) Purchases Books
(c) Cash Book (d) None of the above
11. Outstanding Salaries given in the trial balance is recorded in
(a) Profit & Loss A/c (b) Balance Sheet
(c) Trading A/c (d) P & L appropriation
12. Which reserve is not shown in balance sheet?
(a) Secret Reserve (b) General Reserve
(c) Capital Reserve (d) All the above
13. Which Liability is not included in the total of Balance Sheet?
(a) Current Liability (b) Contingent Liability
(c) Fixed Liability (d) All of the above
14. Errors are
(a) Undetected mistakes (b) Intentional mistakes
(c) Frauds (d) Unintentional mistakes
15. Revenue expenditures are recorded in the
(a) Manufacturing A/c. (b) Trading A/c.
(c) P & L A/c. (d) All the above

164 Common Proficiency Test (CPT) Volume - II

16. Goods purchased from Mohan for Rs. 4,000 passed through the Sales books.
The rectification of this error will result in
(a) Increase in debtors (b) Increase in gross profit
(c) Decrease in gross profit (d) None of the above.
17. In case of Credit Balance the word …..are written on the Credit side.
(a) By balance b/d (b) To balance b/d
(c) By balance c/d (d) To balance c/d
18. Preliminary expenses are treated as
(a) Fixed Assets (b) Current Assets
(c) Intangible Assets (d) Miscellaneous expenditure
19. Account payable normally has
(a) Credit balance (b) Debit balance
(c) Unfavourable balance (d) Either (a) or (b)
20. Proposed dividend are debited to
(a) Balance Sheet (b) P & L Appropriation A/c
(c) Trading A/c (d) P & L A/c
21. Narang purchased goods for Rs. 3,00,000 and sold 4/5 of goods amounting Rs. 5,00,000 and
paid expenses amounting Rs. 1,10,000 for the year 2006. Besides that he paid Rs. 7,000 for
an electricity bill of March 2005 and advance salaries amounting Rs. 10,000 was paid for the
month of April 2007. He calculated net profit Rs. 1,50,000. The profit calculated by him is
correct according to
(a) Conservatism concept (b) Matching concept
(c) Periodicity concept (d) Entity concept
22. A trader purchased goods for Rs. 5,00,000 and sold 55% of such goods during the accounting
year ended 31st Dec. 2006. The market value of the remaining goods was Rs. 1,00,000. He
valued the closing stock at cost. He violated the concept of
(a) Cost (b) Conservatism
(c) Periodicity (d) Money measurement
23. Stock worth Rs. 20,000 (cost price Rs.15,000) taken by Naresh who is a clerk in the office.
The same is to be deducted from his salary in the subsequent month. Journal entry will be
(a) Dr. Salary A/c Rs.15,000 and Cr. Purchases A/c Rs. 15,000
(b) Dr. Naresh Rs.15,000 and Cr. Purchases A/c Rs. 20,000
(c) Dr. Salary A/c Rs.15,000 and Cr. Purchases A/c Rs. 20,000
(d) None of the above

Common Proficiency Test (CPT) Volume - II 165

MODEL TEST PAPER - 7

24. Cost of goods sold Rs. 20,000

Closing stock Rs. 8,000
Opening Stock Rs. 6,000
Amount of purchases will be
(a) Rs. 24,000 (b) Rs. 18,000
(c) Rs. 22,000 (d) Rs. 34,000
25. Opening debtors Rs.15,000
Bad debts during the year Rs.14,000
Cash received from customers Rs.1,60,000
Closing Debtors Rs.7,000
Cash sales Rs.20,000
Total sales will be -

(a) Rs. 1,50,000 (b) Rs. 1,60,000

(c) Rs. 1,51,000 (d) Rs. 1,66,000

26. Bank overdraft as per Cash book is Rs. 15,000

Cheque deposited but not cleared Rs. 4,000
Cheque issued but not cashed Rs. 6,000
Bank overdraft as per Bank statement will be

(a) Rs. 13,000 (b) Rs. 5,000

(c) Rs. 25,000 (d) Rs. 17,000

27. Bank balance as per pass book Rs 20,000

Cheque issued but not presented Rs 7,000
Cheque deposited but not cleared Rs 5,000
Bank balance as per cash book will be -:

(a) Rs 22,000 (b) Rs 32,000

(c) Rs 18,000 (d) Rs 8,000
28. A company can issue redeemable preference share
(a) At discount (b) At par
(c) At premium (d) All of the three
29. According to Companies Act, 1956 of table A interest on call in arrears is charged
(a) 4% (b) 6%
(c) 5% (d) 7%

166 Common Proficiency Test (CPT) Volume - II

30. Credit purchases of goods worth Rs. 30,000 by a dealer will be recorded in
(a) Cash book (b) Journal Proper
(c) Sales Book (d) Purchases book
31. Pooja and Pratibha are partners sharing profits and losses in the ratio of 3:2. Pallavi is
admitted for 1/5th share and brings Rs. 10,000 as capital and necessary amount for his share
of goodwill. The goodwill of the entire firm is value at Rs. 40,000.
Goodwill brought by Pallavi is
(a) Rs. 5,000 (b) Rs. 8,000
(c) Rs. 10,000 (d) Rs. 6,000
32. Debentures issued as collateral security is ….
(a) Added in the total liability of the company
(b) Deducted in the liability of the company
(c) Added in the assets of the company
(d) Both (a) and (c)
33. Debenture holders are

(a) Owners of the company (b) Lenders of the company

(c) Debtors of the company (d) Trustee of the company

34. Cost of goods sold Rs. 15,000 were sold at 25% profit on selling price. The amount of sales
will be
(a) Rs. 20,000 (b) Rs. 11,250
(c) Rs. 18,750 (d) Rs. 15,000
35. The securities premium account may be applied by the company
(a) In writing off the preliminary expenses of the company.
(b) In writing off the expenses of or the commission paid or discount allowed on, any issue of
shares or debentures of the company.
(c) In paying up un-issued shares of the company to be issued to members of the company as
fully paid bonus shares.
(d) All of the above.
36. Bill is drawn on 20 January 2005 for 2 months. After sight date of acceptance is 29 January
2005. The due date of the bill will be
(a) 1 April 2005 (b) 23 March, 2005
(c) 20 March, 2005 (d) 29 March, 2005
37. Returns of Cash Sales is recorded in
(a) Purchase book (b) Sales book
(c) Cash Book (d) Sales Returns book

Common Proficiency Test (CPT) Volume - II 167

MODEL TEST PAPER - 7

38. Security premium is recorded in …..

(a) Trading A/c (b) P & L A/c
(c) P & L appropriation A/c (d) Balance Sheet
39. MND & Company employs a team of 15 workers who were paid Rs. 2,000 each in the year
ending March 31, 2006. At the start of the year April 2006, company raised salaries by 25%.
The amount of salary for the year ended 31st March, 2007 will be
(a) Rs. 30,000 (b) Rs. 37,500
(c) Rs. 22,500 (d) Rs. 35,000
40. Machinery costing Rs. 50,000 was purchased on 1st January 2006. The installation charges
amounting Rs. 5,000 were incurred. The depreciation at 25% p.a. by written down value
equal method for the year ended 31st Dec. 2006 will be
(a) Rs. 68,750 (b) Rs. 13,750
(c) Rs. 41,250 (d) Rs. 12,500
41. Original cost Rs. 1,50,000, Salvage value Nil, Useful Life - 5 years
Depreciation for the 3rd year under sum of digits method will be
(a) Rs. 20,000 (b) Rs. 35,000
(c) Rs. 25,000 (d) Rs. 30,000
42. A company issued Rs. 50,000 10% debentures at a discount of 5% redeemable after 5 year
at a premium of 5%. Loss on issue of debentures will be
(a) Rs. 2,500 (b) Rs. 6,000
(c) Rs. 5,000 (d) Rs. 7,000
43. Ramesh Ltd. purchases furniture for Rs. 20,000 payable as to Rs. 6500 in cash and the
balance by an issue of 6% debentures of Rs. 100 each at a discount of 10% discount amount
will be
(a) Rs.1,350 (b) Rs.2,000
(c) Rs. 650 (d) Rs.1,500

44. Opening debtors - Rs. 50,000

Total sales - Rs.50,000
Cash received from debtors – Rs.30,000
Cash sales – Rs.15,000
Sales Returns – Rs.3,000
Bad debts – Rs.7,000
Bills received from customers – Rs.15,000
Debtors at the end will be

(a) Rs. 1,40,000 (b) Rs. 1,30,000

(c) Rs. 1,20,000 (d) Rs. 1,50,000
168 Common Proficiency Test (CPT) Volume - II
45. Goods costing Rs. 3,00,000 sent out to consignee at cost plus 25%. Invoice value of goods
will be
(a) Rs. 3,75,000 (b) Rs. 3,50,000
(c) Rs. 2,25,000 (d) Rs. 2,50,000
46. A manager gets 10% commission on sales. Cost price of goods sold is Rs.80,000 which he
sold at a margin 20% on sale. Amount of commission will be
(a) Rs. 16,000 (b) Rs. 9,600
(c) Rs. 10,000 (d) Rs. 6,000
47. Adjustment entry for interest earned but not received will be
(a) Dr. Cash A/c and Cr. Interest A/c
(b) Dr. Accrued Interest A/c and Cr. Customer A/c
(c) Dr. Accrued Interest A/c and Cr. Interest A/c
(d) None of the above
48. General Manager gets 10% commission on net profit after charging such commission. Gross
profit Rs. 70,000 and General expenses other than manager commission are Rs. 12,000.
Commission amount will be
(a) Rs. 5272.72 (b) Rs. 6072.72
(c) Rs. 5372.72 (d) Rs. 5172.72
49. Goods sold Rs. 25,000 on approval or return basis were included in Sales Book. The profit
included in the sales was at 25% on cost. At the year end, closing stock will increase by
(a) Rs. 5,000 (b) Rs. 20,000
(c) Rs. 15,000 (d) Rs. 45,000

50. Balance as per Pass Book 27,400

(i) Cheque issued but not presented Rs. 73,000
(ii) Cheque deposited but not yet recorded by bank Rs. 47,700
Balance as per cash book will be

(a) Rs. 52,700 (b) Rs. 93,300

(c) Rs. 2100 (d) None of the above

51. Overdraft as per pass book Rs. 450

1. Cheque drawn but not presented for payment Rs. 105
2. Cheque sent for collection but not credited by bank Rs. 300

(a) Rs. 645 (b) Rs. 255

(c) Rs. 855 (d) Rs. 45
52. If sales Rs. 70,000 and Cost of goods sold is Rs. 24,000. The gross profit is
(a) Rs. 56,000 (b) Rs. 94,000
(c) Rs. 46,000 (d) None of these
Common Proficiency Test (CPT) Volume - II 169
MODEL TEST PAPER - 7

53. 1. 50,000 equity share of Rs.100 each fully called up

2. Calls in arrears Rs. 50,000
3. Proposed dividend 20%

(a) Rs. 10,00,000 (b) Rs. 9,84,000

(c) Rs. 9,90,000 (d) Rs. 9,80,000
54. Rs. 30,000 claim for workman compensation under dispute is a
(a) Fixed assets (b) Current liability
(c) Current asset (d) Contingent liability

55. 12% loan Rs.17,000

Interest on loan Rs. 700
Outstanding interest on loan will be

(a) Rs. 2,040 (b) Rs. 1,340

(c) Rs. 2,740 (d) None of the above
56. Trial balance shows the following balance
Capital - Rs.30,000 (Cr.)
Received Payment of advance income tax - Rs. 1,500
Income tax paid - Rs. 4,000
Capital A/c balance at the end of the year will be
(a) Rs. 24,400 (b) Rs. 24,500
(c) Rs. 27,500 (d) None of the above
57. Ashish’s acceptance to Mohit for Rs. 10,000 discharged by a cash payment of Rs. 2,000 and
a new bill for the balance plus Rs. 300 for interest. The amount of new bill will be
(a) Rs. 8,000 (b) Rs.10,300
(c) Rs. 12,300 (d) Rs. 8,300
58. On 1st April, 2006 Ram Ltd. issued Rs. 5,00,000 14% debentures at a discount of 10%
repayable at the end of 5 years. Amount of discount to be written off every year will be
(a) Rs. 10,000 (b) Rs. 5,000
(c) Rs. 50,000 (d) None of the above
59. Sohan Ltd. forfeited 1000 shares of Rs. 10 each fully called up for non payment of final call
of Rs. 4 per share. All of these shares were reissued as fully paid for Rs. 6 per share. Amount
transferred to capital reserve will be
(a) Rs. 6,000 (b) Rs. 4,000
(c) Rs. 2,000 (d) NIL
60. A company cannot issue redeemable preference shares for the period exceeding
(a) 10 years (b) 20 years
(c) 30 years (d) 15 years

170 Common Proficiency Test (CPT) Volume - II

 SECTION – B : MERCANTILE LAWS (40 MARKS)

61. Only those agreements, which are valid are

(a) Contract (b) Proposal
(c) Offer (d) None of the above
62. Contractual rights and duties are created by
(a) State (b) Statute
(c) Parties (d) Custom
63. An agreement enforceable by law under the Indian Contract Act may be
(a) In writing (b) Oral
(c) Both (a) and (b) (d) Either (a) or (b)
64. A voidable contract is one which
(a) Can be enforced at the option of aggrieved party
(b) Can be enforced at the option of both the parties
(c) Cannot be enforced in court of law
(d) Courts prohibit
65. Which of the following is not the legal requirement of a valid acceptance?
(a) It must be communicable
(b) It must be absolute and unconditional
(c) It must be presumed
(d)I It must be accepted by a person who has the authority to accept
66. Which are of the following is an essential element of a valid contract?
(a) Free consent (b) Consideration
(c) Competent parties (d) All of the above
67. A contract to perform a promise could arise by
(a) Standard form of contracts by promise
(b) Agreement and contract
(c) Promissory Estoppel
(d) All of the above
68. Contract which ceases to be enforceable by law becomes a
(a) Valid contract (b) Void agreement
(c) Void contract (d) Voidable contract
69. An agreement without consideration is
(a) Valid (b) Void
(c) Unenforceable (d) None of the above

Common Proficiency Test (CPT) Volume - II 171

MODEL TEST PAPER - 7

70. The consideration must be at the desire of the

(a) Promisor (b) Promisee
(c) Third party (d) None of the above
71. Contract will be valid, if the consideration is
(a) Inadequate (b) Real
(c) Illusory (d) Illegal
72. Which of the following statement is true?
(a) Consideration may be past (b) Consideration may be present
(c) Consideration may be future (d) All of the above
73. A wrong representation when made without any intention to decline the other party
amounts to
(a) Fraud (b) Undue Influence
(c) Misrepresentation (d) Coercion
74. A contract with the minor, which is beneficial for him is
(a) Void ab initio (b) Voidable
(c) Valid (d) Illegal
75. Where the consent of both the parties is given by mistake the contract is
(a) Valid (b) Void
(c) Voidable (d) Illegal
76. To make a contract voidable coercion must have been exercised against
(a) Only the promisor (b) Any other person
(c) (a) or (b) (d) (a) and (b)
77. Under Section 13 of the Indian Contract Act, consent means agreeing on the same thing
(a) At the same time (b) In the same sense
(c) At different time (d) All of the above
78. Consideration and object of an agreement is unlawful if it
(a) Is fraudulent
(b) is forbidden by law
(c) Would defeat the provision of any law
(d) All of the above
79. Which of the following agreements will not be declared expressly void
(a) If parties to it have no contractual capacity
(b) If it is done by mutual mistake
(c) If it is for lawful consideration
(d) If its consent is not free

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80. A ___________ agreement is one, which is enforceable at the option of one party.
(a) Voidable (b) Void
(c) Valid (d) Illegal
81. A contract can be discharged ____________.
(a) By mutual Agreement
(b) By impossibility of performance
(c) By breach of contract
(d) By all the above
82. __________ signifies that the parties are not further bound under the contract.
(a) Discharge of contract (b) Breach of contract
(c) Waiver of contract (d) Recession of a contract
83. A contract can be discharged by performance in the ways of _____________.
(a) Offer to perform (b) Actual performance
(c) (a) or (b) (d) (a) and (b)
84. A contract dependent on the happening or non happening of future uncertain event, is a
_____________.
(a) Uncertain contract (b) Void Contract
(c) Contingent contract (d) Voidable contract
85. A contingent contract dependant on the happening of future uncertain event can be enforced
when the event __________.
(a) Happens (b) Becomes impossible
(c) Does not happen (d) Either of these
86. The term “goods” for the purpose of Sale of Goods Act, does not include__________.
(a) Money (b) Actionable claim
(c) Immovable property (d) All of these
87. Under the Sale of Goods Act, 1930 existing goods are classified as ________.
(a) Specific goods (b) Ascertained goods
(c) Unascertained goods (d) All of the above
88. __________ may or may not pass between bailee and bailer.
(a) Consideration (b) Ownership
(c) Both (a) and (b) (d) None of the above
89. When a breach of condition is treated as a breach of warranty, the buyer can _________.
(a) Claim damages (b) Repudiate the contract
(c) Reject the goods (d) None of the above

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MODEL TEST PAPER - 7

90. In case of sale of goods by sample as well as by description, the goods should correspond
with________.
(a) The sample (b) The description
(c) Either (a) or (b) (d) Both (a) and (b)
91. The unpaid seller is required to give notice of resale to the buyer under _________.
(a) Section 54(4) (b) Section 54(3)
(c) Section 54(2) (d) Section 54(1)
92. Duration of transit is given in the sale of Goods Act, 1930 in ____________.
(a) Section 52 (b) Section 51
(c) Section 50 (d) Section 49
93. The right of lien is available to the unpaid seller, only when __________.
(a) Seller is not in possession of goods
(b) Seller is in possession of the goods
(c) Seller delivered the goods to the carrier
(d) Seller has delivered the goods to the buyer
94. In a partnership firm, the decisions can be made by rule of majority when decisions relates
to __________.
(a) Policy decisions (b) Fundamental decisions
(c) Ordinary routine matters (d) Buying and selling of property
95. Section ___________ of the Partnership Act, 1932 deals with “Right of outgoing partner to
share subsequent profits in certain cases”.
(a) 34 (b) 37
(c) 40 (d) 42
96. Every partner of a ____________ firm has implied authority to borrow money for the business
of the firm.
(a) Chartered Accountants (b) Broking
(c) Lawyer’s (d) Trading
97. The registration of firm may be effected __________.
(a) At any time during life of partnership firm
(b) At anytime after filing a suit
(c) After dissolution of a firm
(d) Either (b) or (c)
98. Section _____________ of the Partnership Act, 1932 deals with “Partnership Property”.
(a) 13 & 14 (b) 14 & 15
(c) 16 & 17 (d) 17 & 18

174 Common Proficiency Test (CPT) Volume - II

99. A enters with a contract with B to sell him 100 bales of cotton and afterwards discovers that
“B’ was acting as agent for “C’. Decide.
(a) A may sue B only
(b) A may sue C only
(c) A may sue either ‘B’ or C
(d) A may sue either ‘B’ or ‘C’ or both for the price of cotton
100. A lends a book to B, for examinations. Before ‘B’ has taken his examination, A seeks return
of his book. Decide.
(a) ‘A’ must compensate ‘B’ for any loss occasioned to him
(b) A will not compensate B for any loss occasioned to B
(c) Both (a) and (b)
(d) None of the above
SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 We mainly study the following in micro economics:

(a) Location of a Industry (b) Study of firms
(c) Factor pricing (d) All of the above
102 When we study why saving rates are high or low, we are studying:
(a) Macro Economics (b) Micro Economics
(c) Econometrics (d) Both (a) and (b)
103 Which of the following is not a central problem of the economy?
(a) How to produce? (b) When to produce?
(c) What to produce? (d) For whom to produce?
104 Effective Demand depends on:
(a) Desire
(b) Means to purchase
(c) Willingness to use those means for that purchase
(d) All of above
105 Quantity demanded is a:
(a) Flow Concept (b) Stock Concept
(c) Both (a) and (b) (d) None of the above
106 Inferior goods have:
(a) Positive Income elasticity (b) Negative Income elasticity
(c) Zero (d) Both (a) and (b)

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107 If two goods are substitutes like tea and coffee, then the cross elasticity is:
(a) Negative (b) Zero
(c) Positive (d) less than one
108 If the price of Banana rises from Rs 30 per dozen to Rs. 40 per dozen and the supply increases
from 240 dozen to 300 dozens elasticity of supply is:
(a) .7 (b) -.67
(c) .65 (d) .77
109 If as a result of 90 percent increase in all inputs, the output increase by 75 percent this is a
case of
(a) Increasing return to a factor (b) Decreasing return to a factor
(c) Diminishing returns to scale (d) None of the above
110 Under which market structure, average revenue of a firm is equal to its marginal revenue
(a) Monopoly (b) Monopolistic competition
(c) Oligopoly (d) None of the above
111 Special Drawing Rights has link with:
(a) World Bank (b) WTO
(c) IMF (d) ADB
112 Banking Regulation Act, of India pertains to the year:
(a) 1945 (b) 1949
(c) 1943 (d) 1934
113 ______________ refers to that portion of total deposits which a commercial is required to
keep with itself in the form of liquid Assets.
(a) CRR (b) SLR
(c) Both (a) and (b) (d) margin requirements
114 The present membership of IMF is:
(a) 148 (b) 177
(c) 184 (d) 149
115 The WTO came into existence on:
(a) 1st January, 1995 (b) 1st January, 1991
(c) 1st January, 2001 (d) 1st January, 1996
116 Which of the following is not the function of IMF?
(a) It functions as a short term credit institution.
(b) It functions as a long term credit institution.
(c) It is a reservoir of the currencies of all the member nations.
(d) It grants loan for financing current transactions.

176 Common Proficiency Test (CPT) Volume - II

117 MTA stands for
(a) Mutual Trade Agreements
(b) Multiple Trade Agreements
(c) Mutilated Trade Union Agreements
(d) Multilateral Trade Agreements
118 The predecessor of WTO was:
(a) IMF (b) GATT
(c) IBRD (d) None of the above
119 NDP does not include:
(a) Payment made for direct taxes (b) Depreciation allowance
(c) Undistributed profits (d) Corporate dividend tax
120 Which of the following would not be included in GNP?
(a) Mohan purchases a shirt to wear
(b) Sai Ram purchases a new Mercedes – Benz of S-class
(c) Yes bank purchases new computers for its shares business
(d) Aditi grows Tulsi plant in her home
121 Full employment is the level at which there is:
(a) Normal rate of unemployment (b) Zero unemployment
(c) Least supply of labour (d) None of the above
122 In which sector of the Indian Economy will we find a high rate of disguised unemployment?
(a) Transport Sector (b) Agricultural Sector
(c) Service Sector (d) Mining
123 Balance of payments is a broader term than:
(a) Balance of Trade (b) Balance of Current Account
(c) Balance of capital Account (d) All of the above
124 In the Balance of payment statement, current account includes:
(a) Goods and invisible items (b) Government Loans from abroad
(c) Foreign Direct Investment (d) None of the above
125 Service Tax is an instrument of:
(a) Fiscal policy (b) Monetary policy
(c) Revenue policy (d) None of the above
126 Transfer payments are:
(a) Payments made to factors of production
(b) Payments made by one sector to another

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MODEL TEST PAPER - 7

(c) Payments made for no return service

(d) Repayment of loan
127 In terms of overseas shipping tonnage, India ranks __________
(a) 17th (b) 10th
(c) 15th (d) 27th
128 Which of the following statements is incorrect?
(a) The Indian Road network is one of the longest in the world
(b) The village road network connects around 65 percent of all weather roads
(c) The National highways carry more than 40 percent of the total road traffic
(d) Most of the State Electricity Boards are running on profits
129 Electricity generated from radio active elements is called:
(a) Thermal electricity (b) Hyder Electricity
(c) Tidal Energy (d) Atomic energy
130 According to the latest data, PLF is lowest in:
(a) South eastern region (b) North eastern region
(c) West eastern region (d) Eastern region
131 Plant load factor measures
(a) Operational efficiency of Hydel plant
(b) Operational efficiency of Atomic plant
(c) Operational efficiency of Thermal plant
(d) Operational efficiency of Tidal plant
132 In the theory of demographic transaction in the first stage:
(a) Birth rate falls and death rate falls
(b) Birth rate falls and death rate rises
(c) Birth rate is high and death rate is high
(d) Birth rate rises, death rate falls
133 Indian accomodates _____________ percent of world population.
(a) 10 (b) 50
(c) 17 (d) 18
134 At shut down point:
(a) Price is equal to AVC
(b) Total revenue is equal to TVC
(c) Total loss of the firm is equal to TFC
(d) All of the above

178 Common Proficiency Test (CPT) Volume - II

135 The indifference curve approach does not assume:
(a) Rationality on the parts of consumers
(b) Ordinal measurement of satisfaction
(c) Cardinal measurement of satisfaction
(d) Consistent consumption pattern behavior of consumer
136 Which one of the following agencies in India is responsible for computation of National
income?
(a) NCAER (b) CSO
(c) NSS (d) RBI
137 Suppose the total cost of production of commodity x is Rs. 1,25,000. Out of this implicit cost
is Rs. 35,000 and normal profit is Rs. 25,000. What will be explicit cost of commodity x ?
(a) Rs. 90,000 (b) Rs. 60,000
(c) Rs. 65,000 (d) Rs. 1,00,000
138 Over the planning period, the relative share of area under food grains in gross cropped area
in India has:
(a) Decreased (b) Increased
(c) Remained the same (d) Increased initially and then decreased
139 The LAC curve
(a) Falls when the LMC curve falls
(b) Rises when the LMC curve rises
(c) Goes through the lowest point of the LMC curve
(d) Falls when LMC < LAC and rises when LMC > LAC
140 Over the planning period the share of industrial sector in the GDP of the India has:
(a) Increased (b) Decreased
(c) Remained Constant (d) Remained above 40%
141 Which bank among the following is responsible for issuing currency notes in India?
(a) SBI (b) RBI
(c) UTI (d) World Bank
142 Human Development Index is a composite index:
(a) Health, Literacy and employment
(b) National Income, size of population and general price level
(c) National Income, per capita Income and per capita consumption
(d) Physical resource, monetary resource and population size

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143 Excess Capacity is the essential characteristic of the firm in the market form of:
(a) Monopoly (b) Perfect competition
(c) Monopolistic competition (d) Oligopoly
144 Which of the following is not including in the primary sector?
(a) fishery (b) Forestry
(c) Animal Husbandry (d) None of the above
145 Which of the following is not a commercial crop?
(a) Sugar (b) Cotton
(c) Oilseeds (d) None of the above
146 Which of the following was not prevailing in the country at the time of Independence?
(a) Zamindari System (b) Ryotwari system
(c) Mahalwari system (d) None of the above
147 Agriculture provides employment to ______% of people living in the country
(a) 60 (b) 50
(c) 55 (d) 48
148 UNDP stands for
(a) Unlimited National Developed Programme
(b) United Nation Development Programme
(c) United Nation Development Project
(d) United National Development Programme
149 Which one is a direct tax among the following?
(a) Wealth Tax (b) Excise Duty
(c) Service Tax (d) None of the above
150 The other name of Budget line is:
(a) Demand line (b) Price line
(c) Supply line (d) None of the above
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. One third of a number is greater than one fourth of its successor by 1. Find the number
(a) 17 (b) 16
(c) 15 (d) None of these

180 Common Proficiency Test (CPT) Volume - II

 16
152. A student on being asked to multiply of a certain fraction made the mistake of dividing
17
16 33
the fraction by and so got an answer which exceeded the correct answer by Find
17 340
the correct answer.

64 46
(a) (b)
85 58
64
(c) (d) None of these
58

5 4 2 4
153. of of a number is 8 more than of of the same number. What is half of that
7 15 5 9
number?
(a) 630 (b) 210
(c) 105 (d) None of these
154. The sum of two numbers is 14 and their difference is 10. Find the product of the two numbers.
(a) 24 (b) 30
(c) 36 (d) None of these

1
155. The difference of two numbers is 11 and th of their sum is 9. The numbers are:
5
(a) 31, 20 (b) 30, 19
(c) 29, 18 (d) 28, 17
156. The sub duplicate ratio of 16:49 is
(a) 4:7 (b) 256:2401
(c) 4:9 (d) None of these
157. Duplicate ratio of 4:5 is

(a) 16:25 (b) 2: 5

(c) 64:125 (d) None of these
158. Triplicate ratio of 3:5 is
(a) 27:125 (b) 9:25
1 1
(c) 33 :5 3 (d) 125:27

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MODEL TEST PAPER - 7

159. The sub–triplicate ratio 8:125 is

(a) 2:6 (b) 2:5
(c) 5:2 (d) None of these
160. The 4th proportion of 6, 8 and 15 is –
(a) 40 (b) 30
(c) 20 (d) None of these
161. The ratio of two numbers is 4:1. If 5 is added to both the numbers, the ratio of the new
numbers obtained becomes 3:1. Then the numbers are
(a) 30, 20 (b) 40, 10
(c) 20, 10 (d) None of these
162. The ratio of the money with A and B is 3:4 and that with B and C is 4:5. If A has Rs. 300, how
much money does C have?
(a) 400 (b) 300
(c) 500 (d) None of these
163. Two numbers are in the Ratio 5:6. If 5 is subtracted from each number, the ratio becomes
4:5. Then the number are:
(a) 20, 30 (b) 20, 25
(c) 25, 30 (d) None of these
164. If 1 add 1 to each of the two given numbers their ratio is 1:2. If 1 subtract 5 from each the
ratio is 5:11. Then the numbers are
(a) 71, 25 (b) 35, 71
(c) 35, 51 (d) None of these
165. What must be subtracted from each term of the ratio 27:43 to make it equal to 7:15?
(a) 13 (b) 15
(c) 17 (d) None of these
166. Seven times a two digit number is equal to four time the number obtained by reversing the
order of digits, and the sum of the digits of number is 3. then the number is:
(a) 13 (b) 15
(c) 12 (d) None of these
167. There are 7 man and 3 ladies. Find the numbers of ways in which a committee of 6 can be
formed of them if the committee is to include atleast two ladies.
(a) 140 (b) 130
(c) 105 (d) None of these

182 Common Proficiency Test (CPT) Volume - II

168. If 28C2r : 24C2r–4 = 225:11, then the value of r is
(a) 10 (b) 7
(c) 5 (d) None of these
169. A two digit number is obtained by either multiplying sum of the digits by 8 and adding 1 or
by multiplying the difference of the digits by 13 and adding 3. Then the number is:
(a) 82 (b) 41
(c) 47 (d) None of these
170. A committee is to be formed of 3 persons out of 12. Find the number of ways of forming such
a committee.
(a) 210 (b) 230
(c) 220 (d) None of these
171. A gentlemen invites 6 of his friends to a party. In how many different arrangements they
along with the wife of the gentleman can sit at a round table for a dinner if the host and his
wife always sit side by side?
(a) 1440 (b) 144
(c) 1445 (e) None of these

x − 3
172. Evaluate lxi→ma
x − 9
1 1
(a) (b)
6 3
2
(c) (d) None of these
3

x + a − 2a
173. Evaluate lim
x →a x−a

1 1
(a) (b)
2 a 2 2a
1
(c) (d) None of these
3 2a

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MODEL TEST PAPER - 7

6 + 5x 2
174. Find lim
x → ∞ 4 x + 15 x 2

1 1
(a) (b)
2 4
1
(c) (d) None of these
3
a − bx
175. Evaluate lim
x→ ∞ x2
(a) 0 (b) 1
(c) 2 (d) None of these

dy ex -e-x
176. Evaluate ; if y =
dx ex +e-x

−4 4
(e )
−x 2
(e + e−x )
2
(a) x
+e (b) x

1
(e + e−x )
2
(c) x (d) None of these

dy x
177. Find dx ;if y = 1 + x 2
( )

1+ x 1− x
(a)
(1 − x ) (b)
(1 + x )
3 3

1− x
(c)
(1 + x ) (d) None of these
4

184 Common Proficiency Test (CPT) Volume - II

 dy
178. Find ;if y = x + x
dx

2 x +1 2 x −1
(a) (b)
4− x x + x 4 x x− x

2 x +1
(c) (d) None of these
2 x −1

dy 2 + 2x
179. Evaluate ;if y = 7x
dx
2 + 2x 2 + 2x
(a) (2x +1).7x .log 7 (b) 2(x +1).7 x .log 7
2 + 2x
(c) 7x log 7 (d) None of these

2 2 dy
180. If y = log (x + x + a then find
dx

1 −1
(a) (b)
x +a 2 2
x2 + a2

x
(c) (d) None of these
x + a2
2

x
dy
181. If (x–y) e x - y = a; then y + x is
dx
(a) 2 (b) –2y
(c) 2y (d) None of these

2
182. If the demand law is x = 10 - p then the elasticity of demand at point p = 2

(a) 2/3 (b) 3/2

(c) 2/5 (d) None of these

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MODEL TEST PAPER - 7

x3
183. Evaluate : ∫ dx
x +1
(a) x + log (x+1) + c (b) x3 – log (x+1) + c
x3 x 2
(c) − + x − log (x + 1) + c (d) None of these
3 2
e 4x + e 2x
184. Evaluate ∫ dx
e 3x

1 2x 1
(a) e − 4x + c (b) ex − e−x c
2 4e
1
(c) e 2x − +c (d) None of these
e 4x

x4 + 1
185. Evaluate ∫ 2 dx
x +1

x2
(a) + x − 2 log (x 2 + 1) + c (b) x 2 + x + 2 log (x 2 + 1) + c
2
x3
(c) − x + 2 tan − 1 x + c (d) None of these
3

186. Evaluate ∫ log (x +1)dx

(a) x log (x+1) – x + log (x+1) + c
(b) x 2 log (x + 1) - x 2 + log (x 2 + 1) + c
(c) x log (x + 1) - x 2 + log (x + 1) + c
(d) None of these

dx
187. Evaluate ∫ x + 1+x

(a)
2
3 { 2 2
(1 + x) 3 − x 3 + c } (b)
2
3 { 3 3
}
(1 + x) 2 − x 2 + c

3{ }+ c
2 2 2
(d) (1 + x) 3
−x 3
(d) None of these

186 Common Proficiency Test (CPT) Volume - II

 x2 - x + 2
188. Evaluate ∫ 3 dx
x + x 2 + 2x

(a) –log x + 3/2 log (x–1) + 4/3 log (x2 + 2) + log c

(b) –log x + 2/3 log (x2–1) + 3/4 log (x2 +2) + log c
(c) –log x + 2/3 log (x–1) + 4/3 log (x + 2) + log c
(d) None of these

1
189. Evaluate ∫ 3x 2
+13x -10
dx

1 ⎛ 3x 2 − 2 ⎞ 1 ⎛ 3x − 2 ⎞
(a) log ⎜ 2 ⎟+c (b) log ⎜ 2 ⎟+c
17 ⎝ 3x + 15 ⎠ 17 ⎝ 3x + 15 ⎠

1 ⎛ 3x + 15 ⎞
(c) log ⎜ ⎟+c (d) None of these
17 ⎝ 3x − 2 ⎠

∫ e {f(x) + f'(x)} dx
x
190. Evaluate:

(a) ex f(x) + c (b) -ex f(x) + c

(c) ex f’(x) + c (d) None of these

b
logx
191. Evaluate: ∫
a
x
dx

1 ⎛b⎞ ⎛b⎞
(a) log(ba).log ⎜ ⎟ (b) log(ba ). log ⎜ ⎟
2 ⎝a⎠ ⎝a⎠
⎛a⎞
(c) log(b + a).log ⎜ ⎟ (d) None of these
⎝b⎠

192. Evaluate: ∫ [f(x) + f(-x)][g(x) - g(-x)]dx

(a) 0 (b) 1
(c) –1 (d) None of these

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MODEL TEST PAPER - 7

b
dx
193. Evaluate: ∫ (a+b-x)
a
2
3

1 1 ⎛ 13 13 ⎞
(a) (b) 3⎜ b − a ⎟
b −a3 3
⎝ ⎠

⎛ 1 1⎞
(c) 3⎜ b3 + a 3 ⎟ (d) None of these
⎝ ⎠

2
x
194. Evaluate: ∫ 0 x+ 2-x
dx

(a) 1 (b) 0
(c) –1 (d) None of these

1
⎛1 ⎞
∫
195. Evaluate: log ⎜ − x ⎟ dx
0 ⎝x ⎠

(a) 1 (b) –1
(c) 0 (d) None of these
196. In how many ways can 7 departments be distributed among 3 ministers, if every ministers
gets at least one but not more than 3 departments?
(a) 1050 (b) 1000
(c) 1200 (d) None of these
197. Find the number of words of three letters that can be formed with the letters of the word
“CALCUTTA”.
(a) 90 (b) 96
(d) 98 (d) None of these
198. How many number of numbers three digits can be made from the digits of the number
1,2,3,4,3,2?
(a) 40 (b) 42
(c) 45 (d) None of these

188 Common Proficiency Test (CPT) Volume - II

199. If Sn be the sum of n terms of an A.P.; the value of Sn – 2Sn–1 + Sn–2 is
(a) d (b) d2
(c) cannot calculated (d) None of these
200. here are n ARITHMETIC MEANs between 3 and 31 such that the ratio of 3rd mean to (n–1)
th mean is 1:3, then the value of n is
(a) 12 (b) 15
(c) 13 (d) None of these

❖❖❖

Common Proficiency Test (CPT) Volume - II 189

 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 8 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. Financial statements are part of

(a) Book keeping (b) Accounting
(c) Management (d) None of the above
2. The following error do not affect the trial balance
(a) Error of partial omission (b) Error of principal
(c) Error of complete omission (d) All of the above
3. In which area different accounting policies are adopted
(a) Valuation of inventories (b) Valuation of investment
(c) Depreciation (d) All of the above
4. Income includes
(a) Income earned (b) Income received
(c) Income receivable (d) All of the above
5. Cash Account is…..
(a) Personal A/c (b) Real A/c
(c) Nominal A/c (d) None of the above

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MODEL TEST PAPER - 8

6. Total of Sales book is posted periodically to credit of

(a) Journal proper (b) Purchase Book
(c) Sales Account (d) Cash Book
7. Advance received from Debtors is not taken as Sale is based on
(a) Conservatism concept (b) Accrual Concept
(c) Money measurement concept (d) None of the above
8. Ram Motors will debit purchases of Motor in
(a) Motor A/c (b) Purchase A/c
(c) General expenses (d) None of the above
9. General Manager attended a meeting held abroad to develop market; meeting was successful.
This expenses is in the nature of
(a) Deferred revenue expenditure (b) Capital expenditure
(c) Revenue expenditure (d) None of the above
10. Wages Rs. 1,000 payable to labour will be credited
(a) Cash A/c (b) Labour A/c
(c) Salary A/c (d) None of the above
11. Heavy amount spent for the advertisement of new company product is
(a) Revenue expenditure (b) Deferred Revenue expenditure
(c) Capital expenditure (d) Either (a) or (c)
12. Rs. 40,000 spent on repairs of newly purchased old machinery is debited to
(a) Repairs A/c (b) Cash A/c
(c) General expenses A/c (d) Machinery A/c
13. Cost of goods sold can be calculated by
(a) Balance Sheet (b) Profit & Loss A/c
(c) Trading A/c (d) P & L Appropriation A/c
14. Liability for bill discounted is a
(a) Contingent Liability (b) Fixed Liability
(c) Current Liability (d) None of the above
15. Interest is calculated on
(a) Purchase value (b) Market value
(c) Face value (d) All of the above

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16. Income tax in case of a sole trader is treated as
(a) Personal expenses (b) Debtors expenses
(c) Business expenses (d) None of the above
17. The parties to joint venture are called
(a) Friends (b) Principal and agent
(c) Partner (d) Co-venturers
18. Dividend is usually paid as a percentage of
(a) Paid up capital (b) Called up capital
(c) Authorized share capital (d) Net Profit
19. Goodwill is
(a) An Investment (b) A Current Assets
(c) An Intangible fixed assets (d) A Tangible fixed assets
20. Unexpired rent given in trial balance is recorded in
(a) Balance Sheet (b) Trading A/c
(c) Profit & Loss A/c (d) Either (b) or (c)
21. Mohan purchased a Motor Car costing Rs. 60,000 on 1st January 2006 transportation and
repairing charge were incurred amounting Rs. 5,000 and 200 respectively. Dismentaling
charge of old motor car in place of which new motor car was purchased amounted to Rs.
20,000. Marked value of motor car was estimated at Rs. 70,000 on 31st Dec., 2006 while
finalizing the annual accounts. Mohan values the motor car at Rs. 70,000 in his book. Which
of the following concepts was violated by the Mohan?
(a) Matching concept (b) Realisation concept
(c) Cost Concept (d) Periodicity concept
22. AB Ltd. issued 50,000 equity shares of Rs. 100 each at a premium of Rs. 10 payable at Rs. 30
on application Rs. 30 on allotment and balance in the first call. Application received for
1,00,000 equity shares but the company issued to them only 50,000 shares. Excess money
was refunded to them after adjustment for further calls. Last call on 1,000 shares were not
received and were forfeited after due notice. The above is the case of
(a) Over subscription (b) Pro-rata allotment
(c) Forfeiture of shares (d) All of the above
23. It purchases Rs. 30,000; Closing stock Rs. 5,000; Opening Stock Rs. 10,000; then cost of
goods sold will be
(a) Rs. 25,000 (b) Rs. 30,000
(c) Rs. 35,000 (d) Rs. 45,000

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24. Total actual cost of machinery Rs. 50,000; salvage value Rs. 5,000; Useful life 9 years; then
annual depreciation under Straight line Method will be
(a) Rs. 5,000 (b) Rs. 6,111
(c) Rs. 5,555 (d) Rs. 4,500
25. Rent Rs. 10,000; Provision for bad debts (old) Rs. 10,000
Salaries Rs. 8,000 Apprentice Premium (credit) Rs. 12,000
Gross profit Rs. 70,000
Net profit of the firm will be
(a) Rs. 74,000 (b) Rs. 64,000
(c) Rs. 54,000 (d) Rs. 52,000
26. When preparing a Bank Reconciliation Statement if you start with balance as per pass book
then payments made by bank Rs. 4,000 recorded twice in pass book Rs. 4000 will be
(a) Not required to be adjusted (b) Added
(c) Deducted (d) None of the above
27. If Goods purchased for Rs. 2,00,000; Sales Rs. 1,60,000; Margin 20% on sales, then closing
stock is
(a) Rs. 72,000 (b) Rs. 40,000
(c) Rs. 70,000 (d) Rs. 75,000
28. Ram paid Rs. 1,000 towards a debit of Rs. 3,000 which was written off as bad debt in the
previous year. Ram’s account will be credited with
(a) Rs. 1,000 (b) Rs. 3,000
(c) Rs. 2,500 (d) NIL
29. Income tax liability of the owner Rs. 2,000 was paid out of petty cash. Journal entry will be
(a) Dr. Income tax A/c Rs.2,000 and Cr. Cash A/c Rs. 2,000
(b) Dr. Drawings Rs.2,000 and Cr. Cash A/c Rs. 2,000
(c) Dr. Drawings Rs.2,000 and Cr. Petty Cash A/c Rs. 2,000
(d) None of the above
30. An old motor car was purchased for Rs. 1,00,000. It was repaired for Rs. 10,000 and
Rs. 15,000 spent on its painting. Machinery repairs A/c will be debited by
(a) Rs. 25,000 (b) Rs. 10,000
(c) Rs. 15,000 (d) NIL
31. Shyam started business on 1.4.05 with a capital of Rs. 2,00,000 for which he borrowed Rs.
30,000 from a friend. He earned a profit of Rs. 1,00,000 during the year and withdrew cash
Rs. 50,000 for private use. What is his capital at the end of the year?
(a) Rs. 2,80,000 (b) Rs. 2,50,000
(c) Rs. 3,00,000 (d) Rs. 3,80,000

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32. X & Y purchased a building of Rs. 1,00,000 and sold it for Rs. 1,20,000. X had contributed
for Rs.60,000 and Rs. 40,000. They decided to share profits in the ratio of their capital
contribution. The profit on venture will be
(a) Rs. 12,500 & Rs. 7,500 (b) Rs. 8,000 & Rs. 12,000
(c) Rs. 75,000 & Rs. 12,500 (d) Rs. 12,000 & Rs. 8,000

33. Goods costing Rs. 20,000 was sold to Mohan at the invoice price of 20% above cost with a
trade discount of 10%. The amount of sales will be
(a) Rs. 22,000 (b) Rs. 24,000
(c) Rs. 21,600 (d) Rs. 22,600
34. Z & Co. issued Rs. 10,000 10% Debentures at 5% discount redeemable at 5% premium
after 10 years loss on issue of debentures will be
(a) Rs. 1,000 (b) Rs. 1,500
(c) Rs. 500 (d) Rs. 2,000
35. X & Y are partners in a business sharing profits and losses in the ratio of 7:3. They admit Z
as a partner. X sacrificed 1/7th of his share and Y sacrifice 1/3rd of his share in favour of Z.
New profit sharing ratio will be
(a) 2:2:1 (b) 3:1:1
(c) 2:1:1 (d) None of the above
36. On 1st Jan., 2005 goods costing Rs. 40,000 were consigned by A to his agent B at a proforma
price which was cost plus one fifth of profit on invoice price. Invoice price of goods will be
(a) Rs. 48,000 (b) Rs. 35,000
(c) Rs. 50,000 (d) Rs. 45,000
37. Ram of Mumbai sends out certain goods at cost plus 25%. Invoice value of goods sends out
Rs. 20,000. 4/5th of the goods were sold by consignee at Rs. 17,600. Commission 2% upto
invoice value and 10% on any surplus above invoice value commission amount will be
(a) Rs. 320 (b) Rs. 400
(c) Rs. 520 (d) Rs. 480
38. Opening Stock – Rs.40,000
Purchase – Rs.1,00,000
Closing stock –Rs.30,000
Carriage inwards – Rs.5,000
Carriage outwards – Rs.3,000
Office rent – Rs.4,000
Sales –Rs.2,00,000
Gross profit will be
(a) Rs. 85,000 (b) Rs. 75,000
(c) Rs. 95,000 (d) Rs. 65,000

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39. Mohan sells goods at cost plus 50%; total sales were 2,00,000 Cost price of the goods will be
(a) Rs. 1,22,222 (b) Rs. 1,11,111
(c) Rs. 1,33,333 (d) Rs. 1,44,444
40. A seller sells goods at a profit of 25% on sales. In a particular month, he sold goods costing
45,000. Sales price of goods will be
(a) Rs. 56,250 (b) Rs. 65,000
(c) Rs. 55,000 (d) Rs. 60,000
41. Opening balance of capital – Rs.15,000
Income tax – Rs. 2,500
Net profit – Rs.1,500
Drawings – Rs.1,000
Interest on capital – Rs.750
Interest on drawings – Rs.300
Capital at the end will be
(a) Rs. 13,500 (b) Rs. 13,450
(c) Rs. 13,350 (d) Rs. 13,300
42. Cost of good sold – Rs.1,50,000
Opening stock – Rs.20,000
Closing stock – Rs.40,000
Purchases amount will be
(a) Rs. 1,80,000 (b) Rs. 1,30,000
(c) Rs. 1,70,000 (d) Rs. 1,75,000
43. Mohan and Sohan are partners sharing profits and losses in the ratio of 5:3. They admit
Shyam with 1/5th share in profit which he acquires equally from both 1/10 from Mohan and
1/10 from Sohan. New profit sharing ratio will be
(a) 15:10:5 (b) 20:10:4
(c) 21:11:8 (d) None of those
44. Share capital 50,000 shares of Rs. 15 each
Rs. 10 called up - Rs. 5,00,000
Calls in arrears - Rs. 20,000
Call in advance - Rs. 30,000
Board of directors decide to provide 15% for dividend on share capital.
Amount of proposed dividend will be

(a) Rs. 65,000 (b) Rs. 70,000

(c) Rs. 75,000 (d) Rs. 72,000

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45. Under diminishing balance method, depreciation
(a) Is constant every year (b) Increases every year
(c) Decreases every year (d) None of the above
46. The total of the purchases day book is posted periodically to the debit of
(a) Sales book (b) Purchases Account
(c) Cash book (d) Journal
47. Which stock valuation method best matches the cost of goods sold with current replacement
cost
(a) Specific identification method (b) Weighted average method
(c) LIFO (d) FIFO
48. Actual total cost of plant - Rs 1,50,000
Salvage value - Rs. 20,000
Useful Life - 10 years
Annual depreciation under Straight line method will be

(a) Rs. 13,000 (b) Rs. 15,000

(c) Rs. 12,000 (d) Rs. 17,000
49. Legal expenses incurred on a suit for breach of contract to supply goods is a
(a) Capital expenditure (b) Deferred expenditure
(c) Revenue expenditure (d) Both (a) and (c)
50. No journal entry is required to be passed when there is
(a) Loss by theft (b) Normal loss
(c) Loss of bad debts (d) Abnormal loss
51. A plant & machinery worth Rs. 1,00,000 is insured for Rs. 60,000. It is completely destroyed
by fire. The loss to be admitted by the insurance company will be
(a) Rs. 1,00,000 (b) Rs. 1,60,000
(c) Rs. 40,000 (d) Rs. 60,000
52. There must be a gap of atleast _______ month between two calls.
(a) 3 (b) 6
(c) 1 (d) 2
53. Cost of goods sold Rs. 8,000. Closing stock Rs. 3,000 opening stock Rs. 2,500. Wages
Rs. 1,000 purchases will be
(a) Rs. 8,500 (b) Rs. 7,500
(c) Rs. 6,500 (d) Rs. 9,500

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54. Cost of goods sold - Rs. 80,000

Sales - Rs. 1,60,000
Closing stock - Rs. 30,000
Gross profit will be
(a) Rs. 1,00,000 (b) Rs. 1,10,000
(c) Rs. 80,000 (d) Rs. 1,20,000
55. Bill of Rs. 15,000 accepted by A was endorsed by B to C on account of final settlement of
Rs. 18,000. The benefit of Rs. 3,000 earn by B was
(a) Credited to discount received A/c by Rs. 3,000
(b) Credited to rebate account by Rs. 3,000
(c) Credited to discount allowed A/c Rs. 3,000
(d) Not shown in the books of B at all
56. Depreciation on plants machinery whose cost is Rs. 80,000 with an accumulated depreciation
reserve of Rs. 12,000 at 30% p.a. on written down value will be
(a) Rs. 12,000 (b) Rs. 20,000
(c) Rs. 24,000 (d) Rs. 20,400
57. Ram and Rahim have been sharing profit and losses in the ratio of 4:3 Rahman is admitted
as a partner. He acquires his 1/7 share only from Rahim. New ratio will be
(a) 3:2:1 (b) 4:2:1
(c) 5:2:1 (d) 2:2:1
58. Narain Ltd. invited application for 50,000 shares of Rs. 100 each at a discount of 8%. Discount
per share will be
(a) Rs. 8.00 (b) Rs. 0.08 paise
(c) 0.80 paise (d) Rs. 80.00
59. Salary has been paid for 9 months from April to December 2005 amounting Rs. 72,000. The
amount of outstanding salary shown in the balance sheet will be
(a) Rs. 48,000 (b) Rs. 8,000
(c) Rs. 24,000 (d) Rs. 72,000
60. Forfeited shares can be re-issued at discount
(a) When the market value of the forfeited share is less than is nominal value
(b) When the forfeited shares were originally issued at discount
(c) When board of directors seems to issue it at discount
(d) When the forfeited shares were originally issued at premiuim

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 SECTION – B : MERCANTILE LAWS (40 MARKS)

61. The sources of Indian commercial law include

(a) English common law (b) Mercantile Usages
(c) Principles of Equity & justice (d) All of the above
62. Every contract is an agreement but every agreement is not contract. This statement is
(a) Correct (b) Correct subject to certain exception
(c) Partially correct (d) Wrong
63. An agreement enforceable by law amounts to
(a) Offer (b) Promise
(c) Contract (d) Obligation
64. Agreement is defined in Section
(a) 2(b) (b) 2(e)
(c) 2(f) (d) 2(g)
65. A proposal when accepted becomes a
(a) Offer (b) Acceptance
(c) Contract (d) Lawful promise
66. Consent should be given
(a) By the person to whom offer is made
(b) Without a Condition
(c) In clear terms either oral or written
(d) All of the above
67. In case of conflict of jurisdiction of the courts, the incidence of a contract shall be governed
by the law of the place where the
(a) Accepter resides (b) Proposer resides
(c) Contract is made (d) Contract is performed
68. Which one of the following statements is not correct?
(a) Oral acceptance is a valid acceptance
(b) Acceptance must be in writing
(c) Acceptance must be communicated
(d) Acceptance must be in prescribed manner
69. Which one of the following falls into the category of offer?
(a) Newspaper advertisement regarding sale
(b) Display of goods by a shopkeeper in his window with prices marked on them
(c) An advertisement for a concert
(d) Announcement of reward to the public

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70. A counter offer is

(a) A rejection of the original offer (b) An acceptance of the offer
(c) A bargain (d) An invitation to treat
71. When a person without expressing his final willingness, proposes certain terms on which he
is willing to negotiate, he makes
(a) Counter offer (b) Standing offer
(c) Offer (d) Invitation to offer
72. A notice in the newspapers inviting tenders is
(a) Proposal (b) An invitation to proposal
(c) A promise (d) An invitation for negotiation
73. When goods are displayed in a shop window with price tags attached to them, the offer
comes from
(a) Shop public (b) Shop owner
(c) Customer (d) Officer
74. Acceptance in ignorance of the offer is
(a) Valid (b) Invalid
(c) Void (d) Voidable
75. An agreement without consideration is
(a) Valid (b) Void
(c) Unenforceable (d) None of the above
76. Consideration is defined in the Indian Contract Act, 1872 in Section
(a) 2(d) (b) 2(e)
(c) 2(f) (d) 2(g)
77. The consideration may move from
(a) The promisor or any other person
(b) The promisee or any other person
(c) The promisee only
(d) The promisor only
78. Inadequacy of consideration does not make a contract
(a) Void (b) Voidable
(c) Unenforceable (d) None of the above
79. Consideration is unlawful when
(a) It is fraudulent (b) Immoral or opposed to public policy
(c) It is forbidden by law (d) All of the above

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80. Promissory estoppel is sometimes spoken of as a substitute for________.
(a) Novation (b) Quasi contract
(c) Consideration (d) Coercion
81. Agreement which are in the nature of bets and gambling are called__________.
(a) Invalid agreements (b) Voidable contracts
(c) Contingent contract (d) Wagering agreements
82. Illegality renders a contract________.
(a) Illegal (b) Punishable
(c) Void (d) Voidable
83. An agreement to share the benefits of a public offer is ____________.
(a) Valid (b) Voidable
(c) Void (d) None of the above
84. Recession of a contract means_________.
(a) The renewal of original contract
(b) Cancellation of contract
(c) Substitution of new contract
(d) Alteration of contract
85. Novation means _______________.
(a) Frustration due to change of circumstances
(b) Impossibility of contract sending it void
(c) No frustration of executed contracts
(d) Substitution of an existing contract with a new one
86. Injuction may be ___________.
(a) Temporary (b) Perpetual
(c) (a) or (b) (d) None of the above
87. Caveat emptor means _________.
(a) Let the buyer aware (b) A jus in personam
(c) A jus in rem (d) None of the above
88. In case of anticipatory breach the agreed party may treat the contract __________.
(a) As operative and wait till the time for performance arrives
(b) As discharged and bring an immediate action for damages
(c) Exercise option either (a) or (b)
(d) Only option (a) is available

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89. Compulsory dissolution is dealt with Section ____________ of The Partnership Act, 1932.
(a) 41 (b) 42
(c) 43 (d) 45
90. According to Sale of Goods Act, 1930, seller means a person ____________.
(a) Who sells or agrees to sell goods
(b) Who only sells goods
(c) Who only agrees to sell the goods
(d) None of these
91. According to the Sale of Goods Act, 1930, Buyer is a person who ________.
(a) Buys or agrees to buy goods (b) Buys goods
(c) Agrees to buy goods (d) None of the above
92. Things attached to land, which are agreed to be severed before sale constitute ________.
(a) Movable property (b) Immovable property
(c) Goods (d) Crops, Gross and other things
93. The term goods includes ________.
(a) Shares (b) Growing crops
(c) Old coins (d) All the above
94. In a contract of sale, price of goods may be paid __________.
(a) In cash
(b) Other than cash
(c) Partly in cash and partly in goods valued in terms of money
(d) (a) and (c)
95. The general rule of law is that the risk follows _________ of goods.
(a) Possession (b) Delivery
(c) Ownership (d) Contract of sale
96. Where the goods are perishable in nature, unpaid seller can ___________.
(a) Resale the goods
(b) Not resale the goods
(c) Ask again the buyer
(d) Take possession and mark goods as bad
97. When there is no reserve price, the auctioneer is ____________.
(a) not bound to accept the highest bid
(b) bound to accept the highest bid
(c) Can accept any price
(d) None of the above

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98. Partnership property vest in the ____________.
(a) Firm
(b) Partner of the firm
(c) Continuing partner of the firm
(d) Retiring partners of the firm
99. ‘A’ borrows Rs. 500 from ‘B’ to pay to ‘C’, to whom ‘B’ has lost a bet. Contract between ‘A’
and ‘B’ is
(a) Valid (b) Voidable
(c) Void (d) None of these
100. A purchase a refrigerator on hire purchase from B and pledged with C. D purchased the
refrigerator from C in good faith, on knowing the facts B wants to recover the refrigerator
from D. Which of the following statements is/are correct?
(a) B can recover the refrigerator from D
(b) B can recover the refrigerator from A only
(c) B cannot recover the refrigerator from D
(d) D will get good title for the refrigerator as he bought it in good faith
SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 When we are studying how a producer fixes the prices of his products we are studying.
(a) Macro Economics
(b) Micro Economics
(c) Both Micro and Macro Economics
(d) None of the above
102 Macro economics doesn’t include one example from the following:
(a) National Income and output (b) Study of firms
(c) General Price Level (d) Saving and Investment
103 If distribution of income is more equal, then the propensity to consumer of the country is
(a) Relatively High (b) Relatively Low
(c) Unaffected (d) None of the above
104 Normal goods have:
(a) Positive income elasticity (b) Negative income elasticity
(c) Fluctuating income elasticity (d) Zero income elasticity
105 If the goods are complementary like car and petrol, their cross elasticity is:
(a) Negative (b) Positive
(c) Zero (d) Infinite

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106 If demand for a good is elastic, an increase in its price will cause total expenditure of the
consumers of the good to:
(a) Increase (b) Decrease
(c) Remain the same (d) None of the above
107 If a good is priced at Rs 180 p.u. and its price is increased to Rs. 240 p.u. Now suppose
quantity demanded previously was 100 units and as a result of price increase, the quantity
demanded fell to 80 units. What is the price elasticity?
(a) .777 (b) 1.4
(c) 1 (d) .8
108 Monetary policy is given by:
(a) Commercial banks (b) Central bank
(c) Both (a) and (b) (d) Ministry of Finance
109 Fiscal policy is the policy of the Government related to:
(a) Public Revenue
(b) Public Expenditure
(c) Both Public Revenue and Public Expenditure
(d) Public welfare
110 Which of the following is not the objective of Monetary Policy?
(a) To regulate monetary growth
(b) To ensure adequate expansion in credit to assist economic growth
(c) To introduce measures for strengthening the banking system
(d) To increase Public Revenue
111 FEMA stands for
(a) Fiscal Exchange Management Act
(b) Foreign Exchange Monetary Act
(c) Foreign Exchange Management Act
(d) Foreign Exchange Money Act
112 __________________ refers to that portion of total deposits which a commercial bank has to
keep with the RBI
(a) CRR (b) SLR
(c) Bank Rate (d) Margin Requirement
113 Which is the central bank of India?
(a) SBI (b) Indian Bank
(c) NABARD (d) RBI

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114 Which of the following is a commercial bank in India?
(a) SBI (b) Citi Bank
(c) ABN Amro Bank (d) All of the above
115 The initial membership of IMF in the year 1947 was________.
(a) 31 (b) 51
(c) 91 (d) 101
116 Macro economics is the study of:
(a) Inflation (b) Unemployment
(c) Growth (d) All of the above
117 Net Factor Income from abroad is equal to:
(a) NDP at market price – Net Indirect Taxes
(b) NNP at factor cast – NDP at factor cast
(c) NDPFC (+) Deprecation
(d) None of the above
118 Balance of Trade is:
(a) Difference between current and capital Account
(b) Difference between export and import of goods
(c) Difference between export and import of goods and services
(d) Balance of current account
119 Which of the following is not included in the computation of GDP?
(a) Spending on guns and tanks
(b) Purchase of Limca by a family
(c) Services of a teacher
(d) Price paid for a stolen car
120 In terms of capacity of power generation, the highest capacity is of:
(a) Thermal (b) Hydel
(c) Nuclear (d) others
121 The highest user of commercial energy is
(a) Railways (b) Industry
(c) Households (d) Agriculture
122 According to NSSO survey (latest):
(a) Unemployment rates on the basis of current daily status were same as those on the basis of
usual status
(b) Unemployment rates on the basis of current daily status were higher than those of the
basis of usual status

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(c) Unemployment rates of the basis of current daily status were lower than those on the basis
of usual status
(d) None of the above
123 Indian ranked _______ among top 10 debtor countries of the world according to the Global
Development Finance 2005
(a) 10th (b) 9th
(c) 8th (d) 7th
124 India’s external debt stood at more than __________crore 2005-06
(a) 5,48, 000 (b) 7,58,000
(c) 8,48,000 (d) 9,48,000
125 Balance of payment consists of:
(a) Balance of current account and capital account
(b) Only Capital account
(c) Only Current Account
(d) Only trade account.
126 Budget Deficit means:
(a) Total Receipts and total expenditure
(b) Revenue receipts and revenue expenditure
(c) Fiscal deficit – Interest
(d) Total Budgetary receipts – revenue expenditure
127 The aim of FRBM bill is to reduce gross fiscal deficit by_____________ % of GDP.
(a) 2.5% (b) .5%
(c) 1% (d) .25%
128 Non-plan revenue expenditure consists of :
(a) Defence (b) Interest Payment
(c) Food and Fertilizer subsidy (d) All of the above
129 The Government now taps 91 days treasury bills from the market and shows them as part
of:
(a) Revenue Receipt (b) Loan Receipt
(c) Capital Receipt (d) None of the above
130 Which of the following statements is correct?
(a) In India, we mainly use the concept of relative poverty for measuring poverty
(b) Gini coefficients are used to measure absolute poverty
(c) Gini coefficients are often used for measuring poverty in relative sense
(d) When poverty is related to the distribution of income or consumption expenditure, it is
absolute poverty

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131 According to ______________measure, a person is said to be employed for the week even if
he is employed only for a day during that week
(a) Current weekly status (b) Usual status
(c) Current daily status (d) Current yearly status
132 The green revolution is also known as:
(a) Rice revolution (b) Wheat revolution
(c) Bajra revolution (d) All of the above
133 Which of the following statements is correct?
(a) Tax on agriculture is a state subject
(b) Under zamindari system, farmers directly paid land revenue to the state
(c) Cooperative banks are giving loans to agricultural sector at zero interest rates
(d) India has been a big importer of food grain especially since 1995
134 Agriculture sector faces the problem of:
(a) Slow and unplanned growth (b) Inadequate finance
(c) Inadequate reforms (d) All of the above
135 Increasing returns imply:
(a) Constant average cost
(b) Diminishing cost per unit of output
(c) Optimum use of capital and labour
(d) None of the above
136 _____________ is an implicit cost of production
(a) Wages of the labour
(b) Charges for electricity
(c) Interest on owned money capital
(d) Payment for raw material
137 All of the following are U-shaped curves except the:
(a) AVC curve (b) AFC curve
(c) AC curve (d) MC curve
138 Suppose that a sole proprietor is earning total revenue of Rs. 1,20,000 and is incurring
explicit cost of Rs. 90,000. If the owner could work for another company for Rs. 50,000 a
year, we would conclude that:
(a) The firm is incurring an economic profit
(b) The firm is incurring an economic loss
(c) Total economic cost is Rs 2,10,000
(d) The firm is earning economic profit of Rs. 30,000

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MODEL TEST PAPER - 8

Use following table to answers questions 139-140

Hour of labour Total output Marginal product
0 0 0
1 300 300
2 - 240
3 720 -
139 What is the total output when 2 hours of labour are employed?
(a) 160 (b) 200
(c) 360 (d) 540
140 What is the marginal product of the third hour of labour?
(a) 120 (b) 160
(c) 200 (d) 180

Use the following data to answer questions 141-143

Output Total Cast

0 240
1 330
2 410
3 480
4 540
5 610
6 690

141. The Average fixed cost of 2 units of output is:

(a) Rs. 80 (b) Rs. 85
(c) Rs 120 (d) Rs. 205
142 The marginal cost of the sixth unit of output is:
(a) Rs. 133 (b) Rs. 75
(c) Rs. 80 (d) Rs. 450
143 Diminishing marginal returns start to occur between units:
(a) 2 and 3 (b) 3 and 4
(c) 4 and 5 (d) 5 and 6

208 Common Proficiency Test (CPT) Volume - II

144 Which cost increases continuously with the increase in production?
(a) Average cost (b) Marginal cost
(c) Fixed cost (d) Variable cost
145 Before financial reforms, the banking system was characterized by all of the following except:
(a) Administered interest rate structure
(b) Quantitative restriction on credit flow
(c) High revenue requirements
(d) Keeping very less lendable resources
146 The law of scarcity:
(a) Doesn’t apply to rich, developed countries
(b) Applies only to the less developed countries
(c) Implies that consumer wants will be satisfied in a mixed economy
(d) Implies that consumer wants will never be completely satisfied
147 Money includes
(a) Currencies and demand deposits
(b) Bonds, Government securities
(c) Equity shares
(d) All of the above
148 A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:
(a) Infinite (b) Zero
(c) Equal to one (d) Greater than zero but less than one
149 According to the Planning Commission, a person is said to be below the poverty line if he is
earning less than Rs. __________ per month(December, 2005) for urban area.
(a) 559 (b) 225
(c) 240 (d) 275
150 Lesser production of ______would lead to lesser production in future
(a) Public goods (b) Consumer goods
(c) Agricultural goods (d) Capital goods
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. How many numbers between 100 and 200 are divisible by 2 & 8?
(a) 12 (b) 13
(c) 9 (d) 16

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MODEL TEST PAPER - 8

152. The sum of first n odd numbers is

(a) n2 (b) (2n–1)2
(c) (n+1)2 (d) None of these
153. Find the number which when multiplied by 36 is increased by 1050.
(a) 40 (b) 30
(c) 50 (d) None of these
154. Find the value of 13 + 23 + 33 + ……………. + 123
(a) 6804 (b) 6048
(c) 6084 (d) None of these
155. Find the sum of n terms of the series 1 + 9 + 24 + 46 + 75 + .................

n(n + 1) (7n − 4) n(2n + 1) (4n − 3)

(a) (b)
6 6
n(2n + 1) (2n − 3)
(c) (d) None of these
6
156. What must be added to each term of 83:263 to make it equal to 1:3?
(a) 13 (b) 10
(c) 7 (d) None of these
157. An employer reduces the number of employees in the ratio of 9:8 and increases their wages
in the ratio of 14:15. In what ratio is the wages bill decreased?
(a) 20:22 (b) 20:33
(c) 21:20 (d) None of these
2 1
158. Divide Rs. 680 among A, B and C such that A gets of what B gets and B gets th of what
3 4
C gets. What is C’s share

(a) Rs. 180 (b) Rs. 280

(c) Rs. 480 (d) None of these
159. What must be added to each of the four numbers 10, 18, 22, 38. So that they become in
proportion?
(a) 2 (b) 5
(c) 7 (d) None of these
160. Find two numbers, such that the mean proportion between them is 24 and the third proportion
to them is 192.
(a) 48, 10 (b) 12, 48
(c) 10, 33 (d) None of these

210 Common Proficiency Test (CPT) Volume - II

 ex + e− x − 2
161. Evaluate lim
x →0 x
(a) 1 (b) 0
(c) logx (d) None of these

−1
ex − 1
162. Evaluate lim
x →0 −1
ex + 1
(a) 1 (b) –1
(c) does not exist (d) None of these

3x− | x |
163. Evaluate lim
x →0 7x − 5 | x |
(a) 2 (b) 1
(c) does not exist (d) None of these

eax − e bx
164. Evaluate lim
x →0 x
(a) a–b (b) ab
(c) 0 (d) None of these

ex − 1
165. Evaluate lim
x →0 log (1 + x)

(a) 0 (b) 1
(c) –1 (d) None of these

1− x dy
166. If y = then is
1+ x dx

2/3 −1
(a) (b)
(1 + x)(1 − x) (1 + x) 3/2
(1 − x)

−3 / 2
(c) (d) None of these
(1 + x) 2 (1 − x)

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MODEL TEST PAPER - 8

x 3 dy
167. If y = 2 , then x . is
1+ x dx
(a) y2 (b) y
(c) y3 (d) None of these

dy
168. If xy = ex–y; then is
dx

log x log x
(a) (b)
(1 + log x) 2 (1 − log x) 2
1
(c) (d) None of these
(1 + log x) 2

dy
169. if y3 . x5 = (x+y)8, then is
dx

y −y
(a) (b)
x x
y5
(c) (d) None of these
x3

dy
170. If y = x xx......∞ ; then x. is
dx

y2 y2
(a) (b)
1 + y log x 1 − y log x

− y2
(c) (d) None of these
1 − y log x

∫ (e − e x ) dx
x
171. Evaluate
−1

(a) 1 (b) 0
(c) –1 (c) None of these

212 Common Proficiency Test (CPT) Volume - II

 e
1 + log x
172. Evaluate: ∫
1
x
dx

3 3
(a) (b) −
2 2
(c) 0 (d) None of these

log3
ex
173. Evaluate: ∫0
1 + ex
dx

(a) log 3 (b) log 2

(c) 1 (d) None of these

1
x
174. Evaluate: ∫ 1+
0 1 + x2
dx

(a)
2
3
( 2 +1) (b)
2
3
(
− 2 +1 )
(c)
2
3
( )
2 −1 (d) None of these

1
dx
175. Evaluate: ∫ (1 + x)(2 + x)
0

4 3
(a) log (b) log
3 4
(c) 0 (d) None of these
176. The sum of the first two terms of an infinite geometric series is 15 and each term is equal to
the sum of all the terms following it; then the sum of the series is
(a) 20 (b) 15
(c) 25 (d) None of these
177. If x and y are positive intigers such that x + y = 1 and a = 1 + x + x2 + ………….. to ∞ , b = 1
1 1
+ y + y2 +…………….. to ∞ then the value of + is
a b
(a) 0 (b) 2
(c) 1 (d) None of these

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MODEL TEST PAPER - 8

178. At what rate, will a person who invests Rs. 2,000 will receive Rs.2, 090 as simple interest in
9 months?
(a) 5% (b) 6%
(c) 10% (d) None of these
179. The time required for Rs. 5,400 to yield Rs. 216 at 6% simple interest.
(a) 7 months (b) 8 months
(c) 10 months (d) None of these
180. A person deposited a sum of Rs. 10,000 in a bank. After 2 years, he withdrew Rs. 4,000 and
at the end of 5 years, he received an amount of Rs. 7,900; then the rate of simple interest is:
(a) 6% (b) 5%
(c) 10% (d) None of these
181. If the values of all observations are equal then the Standard Deviation of the given observations
is
(a) 0 (b) 2
(c) 1 (d) None of these
182. The Standard Deviation of a set of 50 items is 10. Find the Standard Deviation if every item
is increased by 5.
(a) 15 (b) 5
(c) 10 (d) None of these
183. Find the coefficient of variation if the sum of squared deviations taken from mean 40 of 10
observations is 360.
(a) 15 (b) 20
(c) 40 (d) None of these
184. If the coefficient of mean deviation is 0.44 and the mean deviation from mean is 5.77; then
the mean is –
(a) 14 (b) 13.11
(c) 16 (4) None of these
185. The Standard Deviation of two values is equal to half their difference. This statement is
(a) True (b) false
(c) cannot say (d) None of these

214 Common Proficiency Test (CPT) Volume - II

186. Find the correlation coefficient between the following set of observation.
x: 50 50
y: 40 40

(a) 1 (b) –1
(c) 0 (d) None of these
187. The value of Spearman’s rank correlation coefficient of a certain number of observations
2
was to be . The sum of the squares of differences between the corresponding ranks was 55.
3
Find the number of Pairs.
(a) 10 (b) 12
(c) 11 (d) None of these
188. The equation of two lines of regression is 4x + 3y + 7 = 0 & 3x + 4y + 8 = 0. The correlation
coefficient between x & y is
(a) 1.25 (b) 0.25
(c) –0.75 (d) None of these
189. The co–variance between the two variables is
(a) always positive
(b) always negative
(c) always 0
(d) Either positive or negative or Zero

x − 100 Y − 200
190. The coefficient of regression of Y on X is byx = 1.2. If U = and V= find bvu
2 3
(a) 0.9 (b) 0.8
(c) 0.7 (d) None of these
191. A bag contains 5 red & 3 black balls and the second one 4 red and 5 black balls. One of these
is selected at random and a draw of two balls is made from it. What is the chance that one of
them is red and the other is black?

275 273
(a) (b)
504 504
175
(c) (d) None of these
504

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MODEL TEST PAPER - 8

192. A purse contains 3 silver and 4 Gold coins and a second purse contains 4 silver and 3 Gold
coins. If a coin is selected at random from one of the two purses, what is chance that it is a
silver coin.

1 1
(a) (b)
2 4
3
(c) (d) None of these
4
193. Find mean of the probability distribution of “number of sixes” in two tosses of unbiased
dice.

1 2
(a) (b)
3 3
1
(c) (d) None of these
4
194. Find the probability distribution (when x = 2) of the number of sixes in a single throw of
three dice.

75 1
(a) (b)
216 216
15
(c) (d) None of these
216
195. A Chartered Accountant applies of a job in two firms X and Y. He estimates that the
probability of his being selected in firm X is 0.7, and being rejected at Y is 0.5 and the
probability of atleast one of his applications being rejected is 0.6. What is the probability
that he will be selected in one of the firms?
(a) 0.8 (b) 0.7
(c) 0.9 (d) None of these

⎡ 1 ⎤
196. Evaluate ∫ ⎢⎢log ( log x ) + ( log x ) 2 ⎥ dx
⎥⎦
⎣

x x
(a) x log (log x) – +c (b) x (log x)2 – +c
log x log x
x
(c) x log (log x) + +c (d) None of these
log x

216 Common Proficiency Test (CPT) Volume - II

197. “Is equal to” is a
(a) Symmetric relation (b) Reflexive relation
(c) Transitive relation (d) Equivalence relation
198. If f(x) = x2 + 2, then the given function is
(a) odd function
(b) even function
(c) Neither odd nor even function
(d) None of these
199. For the function f(x) = 121+x, the domain of real values of x where 0 < x < 9 the range is
(a) 12 < f(x) < 1210 (b) 0 < f(x) < 1210
(c) 0 < f(x) < 12 (d) None of these
200. “Is greater than” over the set of real number s is
(a) Transitive relation (b) Symmetric relation
(c) Reflexive relation (d) Equivalence relation

❖❖❖

Common Proficiency Test (CPT) Volume - II 217

 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT – 9 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. Carriage inwards is debited to

(a) Trading A/c (b) P & L A/c
(c) P & L appropriation A/c (d) Balance Sheet
2. A bill was drawn on 20.1.2006 payable after 60 days the due date of the bill will be
(a) 24.4.2006 (b) 21.3.2006
(c) 24.3.2006 (d) None of the above
3. Amount spent for the construction of temporary huts which were necessary for construction
of the overbridge (flyover) and demolished when the flyover was ready is a
(a) Capital expenditure
(b) Deferred Revenue expenditure
(c) Revenue expenditure
(d) Both (a) and (c)
4. Difference of total of debit and credit side of the trial balance is transferred to
(a) Suspense A/c (b) Difference A/c
(c) P & L A/c (d) Trading A/c

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MODEL TEST PAPER - 9

5. In the absence of any partnership agreement, profits and losses are shared among the partners
(a) Equally
(b) In the ratio of capital
(c) In the ratio of loan given by them to the partnership firm
(d) Either (a) or (b)
6. Which of the following statement is not true?
(a) Petty cash is an assets
(b) In case of debt becoming bad the amount should be credited to bad debts A/c
(c) Plant & Machinery is a fixed assets
(d) Goods distributed as sample is credited to Purchases A/c
7. Returns inward is debited to
(a) P & L A/c (b) Balance Sheet
(c) Trading A/c (d) None of the above
8. Carriage outward is debited to
(a) Balance Sheet (b) P & L A/c
(c) P & L appropriation (d) All of the above
9. Which of the following is correct?
(a) Liabilities = Capital + Assets
(b) Capital = Assets – Liabilities
(c) Capital = Assets + Liabilities
(d) Assets = Liabilities – Capital
10. Material costing Rs. 4,000 and labour charges Rs. 3,000 paid for the erection of the building
is debited to
(a) Purchases A/c (b) Material A/c
(c) Building A/c (d) Wages A/c
11. Fundamental accounting assumptions are
(a) Consistency concept (b) Going concern concept
(c) Accrual concept (d) All of the above
12. Writing of transaction in the Ledger is called
(a) Casting (b) Balancing
(c) Posting (d) Journalizing
13. Municipal tax Rs. 6,000 under dispute is a
(a) Contingent Liability (b) Revenue expenditure
(c) Current Liabilities (d) Current assets

220 Common Proficiency Test (CPT) Volume - II

14. Purpose of accommodation bill is
(a) To facilitate trade transaction
(b) When both parties are in need of support of fund
(c) Provide loan for actual purchases or sales of goods
(d) All of the above
15. In the Journal there are
(a) 4 columns (b) 5 columns
(c) 6 columns (d) 7 columns
16. In the ledger there are
(a) 5 columns (b) 6 columns
(c) 7 columns (d) 8 columns
17. Joint Venture account is a
(a) Nominal A/c (b) Personal A/c
(c) Real A/c (d) Dummy A/c
18. Freight charges paid on purchase of a new motor will be debited to
(a) Carriage A/c (b) Motor A/c
(c) Freight A/c (d) Freight & Motor A/c
19. Capital expenditure provides benefit
(a) Very short-term (b) Long term
(c) Short term (d) All of the above
20. Capital expenditures are recorded in the
(a) Trading A/c (b) P & L A/c
(c) Balance sheet (d) All of the above
21. Arjun purchased goods for Rs. 10,00,000 and sold 70% of such goods during the year ended
31st December 2006. The market value of the remaining goods was Rs. 2,00,000. He valued
the closing stock at cost. He violated the concept of
(a) Periodicity (b) Money measurement
(c) Conservatism (d) Cost
22. A building was purchased for Rs. 4,00,000 on 1.04.2005. 31st March, 2006, its net realizable
value was Rs. 5,00,000. The value of building to be shown in the books as on 31st March,
2006 will be
(a) Cost price
(b) Net realisable value
(c) Cost or Net realisable value which ever is less
(d) Cost or Net realisable value which ever is more

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MODEL TEST PAPER - 9

23. Cash sales Rs. 70,000

Cash collected from debtors Rs. 2,00,000
Bad debts Rs. 7,000
Opening Debtors - Rs. 30,000
Closing Debtors Rs. 16,000
Total sales will be

(a) Rs. 2,33,000 (b) Rs. 2,63,000

(c) Rs. 2,43,000 (d) Rs. 2,60,000
24. A cheque of Rs. 6,000 received from X was dishonoured and had been posted to debit of
Sales returns account. Rectifying journal entry will be
(a) X A/c Dr. 6,000
To Sales Returns A/c 6,000
(b) Sales Return A/c Dr. 6,000
To X A/c 6,000
(c) Sales Return A/c Dr. 6,000
To Suspense A/c 6,000
. (d) None of the above
25. Ram and Shyam entered into a joint venture. Ram purchased goods costing Rs. 52,500.
Shyam sold goods costing Rs. 45,000 at Rs. 60,000. Balance goods were taken over by Ram
at Rs. 10,000. The profit on Joint Venture is
(a) Rs. 15,000 (b) Rs. 17,500
(c) Rs. 7,500 (d) Rs. 25,000
26. K and L are equal partners. They admitted M for 1/4 share in future profit. New profit
sharing ratio will be
(a) 2:2:1 (b) 3:3:1
(c) 3:3:2 (d) none of the above
27. X, Y and Z are partners sharing profits in the ratio of 4:3:2. Y retires, X and Z decide to
share future profits in the ratio of 5:3. Gaining ratio between X and Z will be
(a) 12:10 (b) 10:12
(c) 13:11 (d) None of the above
28. A machinery is purchased for Rs. 60,000. Depreciation is to be provided annually on the
basis of fixed instalment method. Useful life of the asset is 8 years and the residual value is
Rs. 10,000. Rate of depreciation will be
(a) 10.416% (b) 10%
(c) 9.416% (d) 11%
29. Goods worth Rs. 7,000 given as charity should be credited to
(a) Trustee A/c (b) Sales A/c
(c) Purchases A/c (d) Charity A/c

222 Common Proficiency Test (CPT) Volume - II

30. Perpetual inventory valuation system entails
(a) Maintenance of detailed records of receipts and issues.
(b) Continuous physical verification
(c) Reconciliation of physical stocks with the stock as per records.
(d) All of the above
31. Ram, Shyam and Mohan are partners sharing profits in the ratio of 4:3:2. Sohan is admitted
for 1/3 share in future. Profit sacrificing ratio will be
(a) 2:3:2 (b) 4:3:2
(c) 3:2:3 (d) None of the above
32. Y and Z are partners sharing profit in the ratio of 3:2. X is admitted as a partner. The new
profit sharing ratio among Y, Z and X is 5:3:2. Sacrificing ratio will be
(a) 2:3 (b) 1:1
(c) 3:2 (d) None of the above
33. On admission of a partner, unrecorded investment worth Rs. 10,000 and unrecorded liability
toward suppliers for Rs. 4,000 will be recorded in
(a) Capital A/c (b) Realization A/c
(c) Revaluation A/c (d) None of the above
34. M, N and O are partners with capitals of Rs. 10,000, Rs. 7,500 and Rs. 5,000 respectively. On
O’s retirement his share is acquired by M and N in the ratio of 3:2 respectively. Gaining
ratio will be
(a) 2:2 (b) 2:3
(c) 1:2 (d) 3:2
35. Goodwill is to be calculated at one and half years purchases of average profit of last 6 years.
The firm earned profit during the first 3 years as Rs. 30,000, 20,000 and 20,000 and suffered
losses of Rs. 5000, 3000 and 2000 in the last 3 years. Goodwill amount will be
(a) Rs. 10,000 (b) Rs. 15,000
(c) Rs. 20,000 (d) Rs. 25,000
36. X started business with cash Rs. 1,00,000 cash and furniture Rs. 20,000. He bought goods
worth Rs.3,00,000 on credit basis. Sales amount to Rs. 5,00,000 including Rs 50,000; cash
sales Rs 1,00,000 sales were outstanding at the end of the year. Cash balance after giving
affect of above transactions will be
(a) Rs 4,50,000 (b) Rs 3,50,000
(c) Rs 5,00,000 (d) Rs 2,00,000

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MODEL TEST PAPER - 9

37. An old furniture appearing in the books at Rs. 10,000 is to be exchanged for a new furniture
of Rs. 10,000. The old furniture has been valued at Rs. 2,000 for exchange purpose. Loss on
exchange will be
(a) Rs. 18,000 (b) Rs. 22,000
(c) Rs. 8,000 (d) Rs. 7,000
38. Goods of Rs. 30,000 ( sales price ) sent on approval or return basis were included in the sales
book. The profit included in the sales was 20% on cost stock with the party will increase
closing stock by
(a) Rs. 25,000 (b) Rs. 30,000
(c) Rs. 20,000 (d) Rs. 24,000
39. Which of the following is a non cash expense
(a) Depreciation (b) Salary paid
(c) Rent paid (d) Carriage
40. Salary paid to employee Rs. 10,000 debited to Employee A/c by Rs. 1,000. Rectifying entry
will be
(a) Salary A/c Dr 10,000
To Employee A/c 10,000
(b) Salary A/c Dr 10,000
To Employee A/c 1,000
To Suspense A/c 9,000
(c) Salary Dr 10,000
To Employee A/c 1,000
(d) None of the above
41. In the trial balance of joint stock company the following balances are given
i. 10% Mortgage debenture 4,00,000
(payable after 4 years)
ii. Discount allowed on issue of debenture 10,000
Amount of discount written off per year will be

(a) Rs. 2,400 (b) Rs. 2,500

(c) Rs. 3,000 (d) Rs. 2,600
42. Recovery of bad debt is a
(a) Revenue expenditure
(b) Revenue receipt
(c) Deferred revenue expenses
(d) Capital receipt

224 Common Proficiency Test (CPT) Volume - II

43. Capital on April 1, 2006 20,000
Capital on April 1, 2007 25,000
Drawings during the year 5,000
Additional capital introduced 6,000
during the year
Net Profit of the year will be

(a) Rs. 6,000 (b) Rs. 5,000

(c) Rs. 4,000 (d) Rs. 3,000
44. Raj draw a bill on Rohan for Rs. 1,00,000 for mutual accommodation. Raj discounted the
bill for Rs. 98,000 from Bank and remitted Rs. 49,000 to Rohan. On the due date Raj will
send to Rohan
(a) Rs. 49,000 (b) Rs. 42,000
(c) Rs. 47,000 (d) Rs. 50,000
45. In bank reconciliation statement, when balance as per cash book is taken as the starting
point, then interest collected by the bank Rs.9,000 and direct deposit by a customer into his
bank Rs. 18,000 will be
(a) Ignored (b) Added
(c) Subtracted (d) deducted
46. The expired portion of capital expenditure is
(a) An Asset (b) A Liability
(c) An Income (d) An Expense
47. On 10.05.2006, A draw a bill on B for Rs. 50,000 for 40 days. June 22 is a public holiday. The
due date of the bill will be
(a) 21 June, 2006 (b) 23 June, 2006
(c) 22 June, 2006 (d) 19 June, 2006
48. Which of the following errors will effect the trial balance
(a) Repairs to motor plant wrongly debited to motor plant
(b) Total of purchases journal is short by 70,000
(c) Wages paid on purchases of new motors plant debited to wages a/c
(d) None of three
49. Rohit acceptance to Sumit for Rs. 15,000 renewed at 6 month on the condition that Rs.
10,000 be paid in cash immediately and a new bill of 6 months will be drawn for the remaining
amount which will carry interest @ 10% p.a. The amount of interest will be
(a) Rs. 100 (b) Rs. 150
(c) Rs. 250 (d) Rs. 200

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MODEL TEST PAPER - 9

50. Goods destroyed by fire Rs. 80,000 and insurance company admitted 50% claim. This
adjustment will be entered in
(a) Balance Sheet (b) Trading A/c
(c) P & L A/c (d) All of the above.
51. Following balances are given in trial balance
10% loan on (1.04.06) Rs. 70,000 (Cr.)
Interest on loan 3,500
Interest outstanding at the end of the year will be
(a) Rs. 3,500 (b) Rs. 10,500
(c) Rs. 7,000 (d) Rs. 3,000
52. Furniture bought on 1st October 2005 for Rs. 40,000 was sold on 31st March, 2007 for
Rs. 30,000. Depreciation is charged @ 10% original cost. Accounting year closes on 31st
March every year . Profit on sales will be
(a) Rs. 3,000 (b) Rs. 1,000
(c) Rs. 4,000 (d) Rs. 2,000
53. Following figures have been taken from the book of a trader
Purchases 1,00,000 Purchases returns 9,000
Sales returns 8,000 Sales 1,60,000
Carriage outward 5,000
Office rent 4,000
Amount of gross profit will be
(a) Rs. 60,000 (b) Rs. 61,000
(c) Rs. 52,000 (d) Rs. 70,000
54. The profit for the last four years are given as follows
Years Rs.
2003 10,000
2004 15,000
2005 20,000
2006 15,000
The value of goodwill on the basis of three years purchases of average profit based on last
four years will be
(a) Rs. 15,000 (b) Rs. 60,000
(c) Rs. 20,000 (d) Rs. 45,000

226 Common Proficiency Test (CPT) Volume - II

55. Which of the following is a fixed asset?
(a) Cash (b) Building
(c) Stock (d) Debtors
56. General Reserve at the time of admission of a new partner is transferred to
(a) Capital A/c of partners (b) Trading A/c
(c) P & L adjustment (d) Balance Sheet
57. Which of the following is a current asset?
(a) Plant & Machinery (b) Land & Building
(c) Debtors (d) Furniture
58. Preliminary expenses in connection with flotation of a new company is
(a) Miscellaneous capital expenditure
(b) Current assets
(c) Fixed assets
(d) All of the above
59. Goods costing Rs. 30,000 were sold at 25% profit on selling price. Sales price will be
(a) Rs. 7,500 (b) Rs. 22,500
(c) Rs. 37,500 (d) Rs. 40,000
60. On April, 2006, Gita invested capital of Rs. 60,000. She withdrew Rs. 5,000 on the first day
of each month interest on drawing is provided @ 20%. The amount of interest on drawings
deducted from capital will be
(a) Rs. 6,000 (b) Rs. 12,000
(c) Rs. 6,500 (d) Rs. 1,000
SECTION – B : MERCANTILE LAWS (40 MARKS)

61. Actual breach may be

(a) During the course of performance
(b) On the date of performance
(c) (a) and (b)
(d) (a) or (b)
62. A contract implied by law is known as
(a) Contingent contract (b) Alternation
(c) Quasi contract (d) Implied contract
63. Specific performance may be ordered by court if
(a) There is no standard for ascertain actual damage
(b) Pecuniary compensation is not adequate relief

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MODEL TEST PAPER - 9

(c) The act is done wholly on part of trust

(d) (a) or (b) or (c)
64. Performance or offer to the contract is provided in the Indian Contract Act, 1872 in
(a) Section 35 (b) Section 36
(c) Section 37 (d) Section 40
65. A contract can be performed by
(a) An agent of the promisor (b) The promisor himself
(c) (a) or (b) (d) Both (a) and (b)
66. Which of the following statement is false? Consideration
(a) Must be of some value
(b) Must not of the desire of the promisor
(c) May move from any person
(d) Must be illusory
67. An executory consideration
(a) Is a promise for a promise
(b) Consists of a promise in future
(c) Is an outstanding liability on both the parties
(d) All of the above
68. “Specific goods” are defined in
(a) Section 1(1) (b) Section 2(14)
(c) Section 2(3) (d) Section 2(4)
69. Deliverable state is defined in
(a) Section 2(1) (b) Section 2(2)
(c) Section 2(3) (d) Section 2(4)
70. Following is not a mode of delivery
(a) Statutory delivery (b) Constructive delivery
(c) Actual delivery (d) Symbolic delivery
71. Buyer’s right against the seller in case of breach of contract deals with
(a) Sections 55 and 56 (b) Sections 53 and 54
(c) Sections 57 – 59 (d) None of the above
72. Section 41 of the Sale of Goods Act deals with examination of goods by the
(a) Buyer (b) Seller
(c) (a) or (b) (d) (a) and (b)

228 Common Proficiency Test (CPT) Volume - II

73. Risk prima facie passes with
(a) Payment of price
(b) Property or ownership
(c) Completed agreement
(d) Verification and delivery of goods
74. When the seller fails to give notice to the buyer under Section 39(3), the risk during sea-
transit lies with the
(a) Seller (b) Buyer
(c) Carrier (d) Insurer
75. A pen or pencil that will not write, a watch that will not keep time, a rubber that will not help
to erase cannot be considered as
(a) Presentable (b) Whole some
(c) Merchantable (d) None of the above
76. Audit of a partnership firm’s account is compulsory under the Partnership Act, 1932
(a) Yes (b) Partly yes
(c) No (d) Partly No
77. Seller has right of resale where
(a) Goods are perishable. (b) Seller has reserved such right
(c) Seller gives notice (d) All of these.
78. To form a partnership, the minimum capital contribution should be
(a) Rs. 1 Lakhs (b) Rs. 2 Lakhs
(c) Rs. 10 Lakhs (d) No minimum limit
79. A contingent contract is
(a) Void from beginning
(b) Void if based on happening of an impossible event
(c) Enforceable if the contingent event is under the control of the promisor
(d) Wagering agreement
80. Champerty and maintenance are the ____________agreement.
(a) Lawful (b) Void
(c) Valid (d) Unlawful
81. The decision in Mohori Bibi Vs. Dharamdas Ghose was related to the _________.
(a) Offer and its communication
(b) Acceptance and its communication
(c) Undue Influence
(d) Capacity of a minor to enter into contract

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82. _________cannot enter with a contract.

(a) Partner (b) Agent
(c) Lunatic (d) Sole Trader
83. The objects of an agreement shall not be unlawful if ___________.
(a) It is forbidden by law (b) It defines the provisions of law
(c) It is for legal consideration (d) It is fraudulent
84. A __________ agreement is one, which is enforceable at the option of one party.
(a) Voidable (b) Void
(c) Valid (d) Illegal
85. Under Section 18 of the Sale of Goods Act, 1930, the property in goods passes when________.
(a) Payment is made (b) Goods are ascertained
(c) The contract is made (d) None of the above
86. Privity of contract is subject to the exception ___________.
(a) Where a trust or charge is created
(b) Where payment is made to a third party
(c) Where payment is made by a third party
(d) None of the above
87. Section ___________ of the Indian Contract Act declares that an agreement made without
consideration is void.
(a) 24 (b) 26
(c) 28 (d) 30
88. Partnership deed is also called________.
(a) Partnership Agreement (b) Constitution of Partnership
(c) Articles of Partnership (d) All of the above
89. Property of the firm shall be held by use of the partners ___________.
(a) For charitable purposes
(b) For private purposes of the partners
(c) For business purposes as well as private purposes
(d) Exclusively for business purposes
90. Section 10 of the Sale of Goods Act 1930 deals with fixation of price of goods by __________.
(a) The Judge
(b) The Arbitrator
(c) The Central Government
(d) The valuation of a third party.

230 Common Proficiency Test (CPT) Volume - II

91. In an agreement to sell the property (ownership) in the goods passes __________.
(a) Immediately
(b) At a future date
(c) Either immediately or future date
(d) Never
92. A contract of sale may be__________.
(a) Conditional (b) Absolute
(c) Written (d) All of the above
93. Under the Sale of Goods Act, 1930, goods may be _________.
(a) Existing (b) Future
(c) Contingent (d) All of the above
94. Where the unpaid seller has attained a decree for the price of the goods, the right of lien
_________.
(a) Is lost
(b) Is at the optioning the court
(c) Is at the optioning the seller
(d) Can be exercised
95. The rights available to an unpaid seller against the buyer are right to sue for ________.
(a) Price (b) Damages
(c) Interest (d) All of the above
96. An agreement to sell in respect of goods is an executory contract which creates ___________.
(a) A just in personam (b) A just in rem
(c) Both (a) and (b) (d) Neither (a) nor (b)
97. A contract of sale of contingent goods is _________.
(a) Sale (b) Agreement to sell
(c) Unlawful (d) All of the above
98. The term “Property” is defined under section __________.
(a) 2(11) (b) 2(12)
(c) 2(13) (d) 2(14)
99. ‘A’ buys a readymade shirt for his son, The shirt does not exactly fit his son. Decide.
(a) A has no right to return or exchange the same
(b) A has right to return the same
(c) He will demand for damages
(d) He may file a suit for exchange

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100. ‘A’ buys a T.V. set from ‘B’. ‘B’ agrees to deliver the set to ‘A’. After some time during the
day, B sells the same to ‘C’ at a higher price. Decide title of the good.
(a) ‘C’ gets a good title (b) A gets a good title
(c) Nobody gets a goods title (d) None of these
SECTION – C : GENERAL ECONOMICS (50 MARKS)

101. If budget deficit is Rs. 11,350 crore and borrowings are Rs. 33,300 crore, what is fiscal
deficit?
(a) Rs. 11,350 crore (b) Rs. 44,650 crore
(c) Rs. 33,300 crore (d) Rs. 21,950 crore
102. Sir Robert Giffen was surprised to find out relationship of price with two other goods, which
were:
(a) Bread and Rice (b) Meat and Rice
(c) Bread and Meat (d) Cheese and meat
103. If the proportion of income spent on a good remains the same as income increases, then
income elasticity for the good in:
(a) More than one (b) One
(c) Less than one (d) Zero
104. Marginal utility analysis was mainly propounded by:
(a) J.B. Say (b) Robbins
(c) Adam Smith (d) Alfred Marshall
105. Indifference curve analysis is propounded by:
(a) Alfred Marshall (b) Adam Smith
(c) Hicks and Allen (d) None of the above
106. Cardinal Measurability of utility means:
(a) Utility can be measured
(b) Utility cannot be measured
(c) Utility can be ranked
(d) Utility can be measured in some case
107. Which of the following statements is false?
(a) An indifference curve is concave to the origin
(b) An indifference curve is convex to the origin
(c) A higher indifference curve is better than a lower indifferent curve
(d) An indifference curve is a curve which represents all those combinations of two goods
which give same satisfaction to the consumer.

232 Common Proficiency Test (CPT) Volume - II

108. Identify the factor which generally keeps the price-elasticity of a demand for a good high.
(a) Its very high price (b) Its very low price
(c) Large number of substitutes (d) None of the above
109. Suppose price of fashionable Shirts rises from Rs. 400 per piece to Rs. 700 per piece. The
Shopping Mall manager observes that the rise in price causes demand for shirts to fall from
500 shirts per week to 300 shirts per week. What is the price elasticity of demand for shirts?
(a) 0.916 (b) 1.5
(c) 1 (d) 1.667
110. The basic distinction between M1 and M2 is in the:
(a) Treatment of post office deposits
(b) Treatment of time deposits of banks
(c) Treatment of saving deposits of banks
(d) Treatment of currency
111. After 1950, commercial banks in India were nationalized:
(a) Once in 1969
(b) Twice in 1969 and 1980
(c) Thrice in 1969, 1980 and 1991
(d) None of the above
112 In order to increase money supply in the country, the RBI may:
(a) Reduce CRR
(b) Increase CRR
(c) Sell securities in the open market
(d) Increase Bank Rate
113 Monetary Policy is given by:
(a) RBI (b) Planning Commission
(c) Finance Minister (d) Monetary Bank of India
114 Which of the following is incorrect?
(a) The shape of the average cost and marginal cost curve is ‘U’
(b) The AR and MR curves of a firm under perfect competition are parallel to X-axis.
(c) At Equilibrium AR=MR
(d) At Equilibrium MC=MR
115 The slope of indifference curve indicates:
(a) Price ratio between two commodities
(b) Marginal rate of substitution
(c) Factor substitution
(d) Level of indifference

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116 If the quantity of Banana demanded in 100 kg and quantity supplied is 50 kg, then price per
kg of Banana is:
(a) Rs.18
(b) Rs.24
(c) Less than equilibrium price
(d) Greater than equilibrium price
117. Suppose Mohan & Co. produces 10 units of output and incurs Rs. 30 per unit of variable
cost and Rs. 5 per unit of fixed cost. In this case, total cost is:
(a) Rs. 300 (b) Rs. 35
(c) Rs. 305 (d) Rs. 350
118. A condition needed for a perfectly competitive industry to exist is that:
(a) Buyers are able to influence the price of the commodity
(b) Any units of commodity are considered by buyers to be different
(c) Buyer discriminates in their purchases based on non-price factors.
(d) There are no obstacles to the free mobility of resources.
119. If the price of petrol rises by 25% and demand for car falls by 40% then, cross elasticity
between petrol and car is:
(a) -1.6 (b) 1.6
(c) -2.6 (d) 2.6
120. Which of the following statements is correct?
(a) Economic laws are mere statement of tendencies
(b) Economics laws are as exact as physical lows
(c) Economics laws are permanent
(d) All of the above
121. If after selling 10 units, a seller realises Rs. 12, 000 and after selling 15 units he realises
Rs. 20, 000 what is the marginal revenue here?
(a) Rs. 1500 (b) Rs. 1600
(c) Rs. 8000 (d) Rs. 2000
122. Under which market structure, the control of firm over price is nil?
(a) Perfect competition (b) Monopoly
(c) Oligopoly (d) Monopolistic Competition
123. If as a result of 80 percent increase in all inputs, the output increases by 25 percent, this is a
case of:
(a) Increasing return to scale (b) Decreasing return to factor
(c) Decreasing returns to scale (d) Diminishing return to factor

234 Common Proficiency Test (CPT) Volume - II

124. When marginal product is negative, then total product is:
(a) Maximum (b) Decreasing
(c) Constant (d) None of the above
125. In the long run, a firm in monopolistic competition:
(a) Always earns super profits
(b) Incurs losses
(c) Earns normal profit only
(d) May earn normal profits, super normal profits or incur losses.
126. Assume that when price is Rs.40 quantity demanded is 9 units, and when price is Rs. 38,
quantity demanded is 10 units. Based on this information, what is the marginal revenue
resulting from an increase in output from 9 units to 10 units?
(a) Rs.20 (b) Rs.40
(c) Rs.38 (d) Rs.1
127. Suppose a firm is producing at level of output, such that MR>MC what should be the firm
do to maximise profit?
(a) The firm should increase output
(b) The firm should do nothing
(c) The firm should hire less labour
(d) The firm should decrease price
128. Marginal Revenue is equal to
(a) Change in quantity, divided by the change in price
(b) Change in price divided by change in output
(c) The change in PxQ due to a one unit change in output
(d) None of above
129. Suppose that an owner is earning total revenue of Rs.1, 00,000 and is increasing explicit cost
of Rs.60, 000. If the owner could work for another company for Rs.30, 000 a year, we would
conclude that:
(a) The firm is earning economic profit or Rs.10, 000
(b) The firm is earning accounting profit or Rs.40, 000
(c) The firm is earning economic profit of Rs.40, 000
(d) Both (a) and (b)
130. Which is not the essential condition of pure competition?
(a) Large number of buyers and sellers
(b) Homogeneous product
(c) Freedom of entry
(d) Perfect knowledge among buyers and sellers

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131. What is the shape of A R curve faced by a firm under perfect competition?
(a) Horizontal
(b) Vertical
(c) Positively sloped
(d) Negatively sloped
132. Which of the following is the condition for equilibrium of a firm?
(a) AC = AR (b) MR = AR
(c) MC = MR (d) AC = MR
133. ___________________ measure estimates the number of persons who may be said to be
chronically unemployed.
(a) Usual status
(b) Current weekly status
(c) Current daily status
(d) Current yearly status
134. When due to introduction of new equipments, some workers tend to be replaced by
equipments; their unemployment is termed as __________
(a) Structural (b) Seasonal
(c) Frictional (d) Technological
135. Every__________ person in the world is an Indian
(a) Second (b) Sixth
(c) Fifth (d) Ninth
136. __________ measures generally gives the lowest estimate of unemployment.
(a) CWS (b) Usual Status
(c) CDS (d) CMS
137. Which of the following statements is correct?
(a) Countries which are industrially well-developed generally have higher per-capital income
than countries which are not.
(b) India is a capital surplus economy
(c) Agriculture sector need not depend upon industrial sector for its growth
(d) None of the above
138. Mahalanobis model stressed upon the establishment of:
(a) Consumer goods industries
(b) Export oriented industries
(c) Agro-based industries
(d) Capital and basic goods industries

236 Common Proficiency Test (CPT) Volume - II

139. If income elasticity of the household for good X is 3 then it is a:
(a) Normal Good (b) Necessity Good
(c) Luxury Good (d) Inferior Good
140. Which of the following is not included in foreign exchange reserves?
(a) Foreign currency assets held by RBI
(b) Gold holding of the RBI
(c) Special Drawings Rights
(d) None of the above
141. Based II framework is for:
(a) Banks (b) Insurance Companies
(c) RBI (d) None of the above
142. The total area under the demand curve of good measures:
(a) Marginal utility (b) Total utility
(c) Consumers surplus (d) Producer surplus
143. Which of the following is not a quantitative measure of credit control?
(a) Bank rate policy (b) Open market operation
(c) Margin requirement (d) Variable reserve requirement
144. Integration of the domestic economy with the world economy is called____.
(a) Liberalisation (b) Globalisation
(c) Privatisation (d) Disinvestment
145. Which of the following is not an indirect Tax Reform?
(a) Reducing the peak rate of custom duties
(b) Rectifying anomalies like inverted duty structure
(c) Introduction of VAT for achieving harmonized taxation regime
(d) The tax rate on foreign companies has also been reduced from 55% to 40%
146. Occupational structure refers to the:
(a) Number of workers living in a country.
(b) Size of working population in the industrial sector
(c) Distribution of working population among different occupations
(d) Nature of different occupation in the economy
147. Which of the following is not a characteristic of a price taker?
(a) Negatively Sloped Demand Curve
(b) TR = P x Q
(c) AR = Price
(d) MR = AR

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148. All are features of monopoly except:

(a) There is a single seller
(b) The firm is a price taker
(c) The firm produces a unique product
(d) The existence of some advertising
149. A monopolist is able to maximize his profits when:
(a) His output is maximum
(b) He charges a higher price
(c) His average cost is minimum
(d) His marginal cost is equal to marginal revenue
150. ___________ is the difference between total receipts and total expenditure
(a) Fiscal Deficit (b) Budget Deficit
(c) Capital Deficit (d) Revenue Deficit
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

x 17 x+y
151. If = , what is equal to
x + y 23 x−y

11 17
(a) (b)
23 32
23
(c) (d) None of these
11

25 x
152. If 1+ = 1 + , then x is
144 12
(a) 1 (b) 2
(c) 3 (d) None of these

( 2)
8
153. If (4)3 × = 2n, then n is

(a) 10 (b) 12
(c) 13 (d) None of these
154. A number of men went to a hotel and each spent as many rupees as there were men. If the
money spent was Rs. 15625; find the number of men.
(a) 110 (b) 125
(c) 145 (d) None of these

238 Common Proficiency Test (CPT) Volume - II

155. A, B and C have to distribute Rs. 1,000 between them, A and C together have
Rs. 400 and B and C Rs. 700. How much does C have?
(a) Rs. 100 (b) Rs. 200
(c) Rs. 150 (d) None of these

a+b 1
156. If log = (log a + log b), the value of a2 + b2 is
2 2
(a) 6ab (b) 8ab
(c) 6a262 (d) None of these
157. If log10x = 4, then the value of x is
(a) 100 (b) 1000
(c) 10000 (d) None of these
158. If log 2 = 0.301 and log 3 = 0.477, then the value of log 225 is:
(a) 2.352 (b) 3.452
(c) 7.452 (d) None of these
159. If log 2 = 0.3010, find the number of digits in 2100
(a) 36 (b) 31
(c) 38 (d) None of these
160. If nP3 = 60, then the value of n is
(a) 3 (b) 10
(c) 5 (d) None of these

ax + bx − 2
161. Evaluate lim
x →0 x
a
(a) log ab (b) log
b
(c) log (a – b) (d) None of these

10x − 5x − 2x + 1
162. Evaluate lim
x →0 x
(a) 1 (b) 0
(c) log 5 × log 2 (d) None of these

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MODEL TEST PAPER - 9

10x − 5x − 2x + 1
163. Evaluate
x2
(a) log 5 × log 2 (b) log 5 + log 2
(c) 0 (d) None of these

e5x − e 3x − e 2x + 1
164. Evaluate lim
x →0 x
(a) 6 (b) 0
(c) 1 (d) None of these

e5x − e 3x − e 2x + 1
165. Evaluate lim
x →0 x
(a) 6 (b) 0
(c) 1 (d) None of these

1
166. Evaluate: ∫ x + a2
2
dx

(a) (
log x + x + a + c
2 2
) (b) (
log x + x − a + c
2 2
)
(c) log ( x − x2 −a )+c
2
(d) None of these

1
167. Evaluate: ∫ x − a2
2
dx

(a) (
log x − x − a + c
2 2
) (b) (
log x + x + a + c
2 2
)
(c) log ( x + x2 −a )+c
2
(d) None of these

1
168. Evaluate ∫ 9x 2
−1
dx

1 ⎛ 3x + 1 ⎞ 1 ⎛ 3x − 1 ⎞
(a) log ⎜ ⎟+c (b) log ⎜ ⎟+c
6 ⎝ 3x − 1 ⎠ 6 ⎝ 3x + 1 ⎠
1 ⎛ 3x + 2 ⎞
(c) log ⎜ ⎟+c (d) None of these
3 ⎝ 3x + 2 ⎠
240 Common Proficiency Test (CPT) Volume - II
 x -1
169. Evaluate ∫ x2 + 1
dx

(a) (
x 2 + 1 − log x + x 2 + 1 + c )
(b) ( )
x − 1 − log x + x − 1 + c

(c) ( )
x 2 + 1 − log x + x − 1 + c
(d) None of these

170. Evaluate (1-x2) log x

⎛ x2 ⎞
(a) (1 − x ) x log x − ⎜1 − 9 ⎟ + c
2

⎝ ⎠

⎛ x2 ⎞
(b) ( )
1 − x 2
log x − ⎜1 + ⎟ + c
9 ⎠
⎝

⎛ x2 ⎞ ⎛ x3 ⎞
(c) ⎜1 − ⎟ x log x − ⎜ x − ⎟ + c
⎝ 3 ⎠ ⎝ 9 ⎠
(d) None of these
171. From a panel of 4 doctors, 4 officers and one doctor who is also an officer, how many committee
of 3 can be made if it has to contain at least one doctor and one officer?
(a) 76 (b) 78
(c) 80 (d) None of these
172. In an election, there are five candidates contesting for three vacancies; an elector can vote
any number of candidates not exceeding the number of vacancies. In how many ways can
one cast his votes?
(a) 12 (b) 14
(c) 25 (d) None of these
173. In how many ways can 12 different things be equally distributed among 4 groups?
(a) 15,400 (b) 15,000
(c) 14,400 (d) None of these

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174. The number of factors of 420 is

(a) 20 (b) 22
(c) 25 (d) None of these
175. Five balls of different colours are to be placed in three boxes of different sizes. Each box can
hold all the five balls. In how many different ways can we place the balls so that no box
remains empty?
(a) 100 (b) 120
(c) 150 (d) None of these
176. Find the sum of the series. 243 + 324 + 432 + …………………. to n terms

⎛ 4n ⎞ ⎛ 4n ⎞
(a) 36 ⎜ n − 1⎟ (b) 34 ⎜ n − 1⎟
⎝3 ⎠ ⎝3 ⎠

⎛ 3n ⎞
(c) 36 ⎜ n − 1⎟ (d) None of these
⎝4 ⎠

177. The sum of the first eight terms of a G.P. is five times the sum of the first four terms; then the
common ratio is –

(a) 2 (b) – 2
(c) ± 2 (d) None of these

178. The sum of the following series 4 + 44 + 444 + ………… to n term is:

4 ⎡10(10n − 1) ⎤ 4 ⎡10(10n − 1) ⎤
(a) ⎢ − n⎥ (b) ⎢ + n⎥
9⎣ 9 ⎦ 9⎣ 9 ⎦

10(10n − 1)
(c) +n (d) None of these
9
179. The Arithmetic Mean between two numbers is 15 and their G.M. is 9; then the numbers are
–
(a) 27,3 (b) 9, 9
(c) 16, 9 (d) None of these
180. The product of n G.M.s between the two given numbers is equal to the n power of the single
G.M. between them. This statement is –
(a) True (b) False
(c) Cannot say (d) None of these

242 Common Proficiency Test (CPT) Volume - II

181. The weighted arithmetic mean of first n natural numbers whose weights are equal to the
corresponding numbers is equal to:

2n + 1 2(2n + 1)
(a) (b)
3 2
n(n + 1)
(c) (d) None of these
2
182. The mean weight of 15 persons is 110 kg. The mean weight of 5 of them is 100 and another 5
is 125 kgs. What is the mean weight of the remainder?
(a) 110 kgs. (b) 105 kgs.
(c) 100 kgs. (d) None of these
183. The sum of diviations of certain number of items measured from 2.5 is 50 and the sum of
deviations of the same series measured from 3.5 is –50. Find the number of observations and
their mean?
(a) 100, 3 (b) 200, 6
(c) 100, 4 (d) None of these
184. The most reliable central value is
(a) Mean (b) Median
(c) Mode (d) (a) and (b) both
185. In which Central value arranging is required.
(a) Mean (b) G.M.
(c) Median (d) H.M.
186. The chance of 53 Tuesdays in a year is

2 1
(a) (b)
7 7
3
(c) (d) None of these
7
187. Two unbiased dice are thrown. Find the probability that sum of the faces is not less than 10.

1 5
(a) (b)
6 6
2
(c) (d) None of these
3

Common Proficiency Test (CPT) Volume - II 243

MODEL TEST PAPER - 9

1 2
188. The probability that a person travels by a plane is and that he travels by train is Find
5 3
the probability of his traveling neither by plane nor by train?

13 2
(a) (b)
15 15
1
(c) (d) None of these
15
189. A card is drawn from a well shuffled pack of playing cards. Find the probability that it is
either a diamond or a king.
(a) 5/13 (b) 3/13
(c) 4/13 (d) None of these
190. A problem in statistics is given to two students A and B. The odd in favour of A solving the
problem are 6 to 9 and against B Solving the problem are 12 to 10. If both A and B attempt,
find the probability of the problem being solved.
(a) 0.673 (b) 0.237
(c) 0.255 (d) None of these

191. For a binomial distribution is 7 and its Standard Deviation is 8 . This statement is
(a) True (b) False
(c) Cannot say (d) None of these
192. The mean and variance of a binomial distribution and 3 and 2 respectively. Find the
probability that the variate takes values less than or equal to 2.
(a) 0.3767 (b) 0.3760
(c) 0.3067 (d) None of these
193. Two digits are selected at random from the digits 1 through 9. Find the probability that their
sum is even.

2 7 5 5
(a) , (b) ,
9 18 9 18
4 5
(c) , (d) None of these
9 18

244 Common Proficiency Test (CPT) Volume - II

194. A die is thrown twice and the sum of the number appearing is observed to be 6. What is the
conditional probability that the number 4 has appeared at least once?

3 2
(a) (b)
5 5
4
(c) (d) None of these
5
195. It is observed that 80% of television viewers watch “Kahani Ghar Ghar Ki” Programme.
What is probability that at least 80% of the viewers in a random sample of five watch this
programme?
(a) 0.7021 (b) 0.73728
(c) 0.63728 (d) None of these
196. A simple random sample of size 36 is drawn from a finite population consisting of 101 units.
If the population Standard Deviation is 12.6, find the Standard Error of sample mean when
the sample is drawn with replacement.
(a) 2.1 (b) 1.69
(c) 2.23 (d) None of these
197. A simple random sample of size 36 is drawn from a finite population consisting of 101 units.
If the population Standard Deviation is 12.6, find the Standard Error of sample mean when
the sample is drawn without replacement.
(a) 2.1 (b) 1.69
(c) 2.45 (d) None of these
198. A random sample of size 9 is drawn without replacement from a finite population consisting
of 25 units. If the number of defective units in the population be 5, find the Standard Error
of the sample proportion of defectives.
(a) 0.1288 (b) 0.1088
(c) 0.0588 (d) None of these
199. A population consists of 4 numbers. Find the number of sample of size 2 for with replacement
condition.
(a) 16 (b) 6
(c) 10 (d) None of these
200. A population consists of 4 numbers. Find the number of sample of size two for without
replacement condition.
(a) 16 (b) 6
(c) 10 (d) None of these

❖❖❖

Common Proficiency Test (CPT) Volume - II 245

 BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
COMMON PROFICIENCY TEST
Model Test Paper – BOS/CPT –10 / 2007

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and
– 0.25 mark for each wrong answer.

SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

1. Cash discount allowed to a debtors should be credited to

(a) Debtor A/c (b) Purchase A/c
(c) Discount A/c (d) Sales A/c
2. On 31st December, 2005 Ashok Ltd. purchased a machine from Mohan Ltd., for Rs. 1,75,000.
This is
(a) A transaction
(b) An event
(c) None of these
(d) A transaction as well as an event
3. Prepaid commission has a
(a) Negative balance (b) Debit balance
(c) Credit balance (d) None of these
4. The following account will have debit balance
(a) Loan to other party
(b) Capital A/c
(c) Outstanding salary
(d) Reserve for doubtful debts

Common
247 Proficiency Test (CPT) Volume - II 247
MODEL TEST PAPER - 10

5. A sum of Rs. 50,000 was spent on painting the new plant. It is a

(a) Revenue expenditure
(b) Capital expenditure
(c) Deferred revenue expenditure
(d) None of these
6. Bills receivables is a
(a) Intangible assets (b) Tangible assets
(c) Current assets (d) Investment
7. Prepaid insurance account is a
(a) Nominal A/c (b) Personal A/c
(c) Real A/c (d) None of the above
8. Under annuity method, interest is calculated on
(a) Written down value (b) Original cost
(c) Scrap value (d) None of the above
9. Stock should be out of godown in the sequence in which they arrive is based on
(a) HIFO (b) FIFO
(c) Weighted overage (d) LIFO
10. All the expenditures of revenue nature go to
(a) Balance Sheet (b) Trading A/c
(c) Profit & Loss A/c (d) Either (b) or (c)
11. Memorandum joint venture account is prepared
(a) When each co-venturer keeps records of their own joint venture transactions
(b) When separate set of joint venture books is prepared
(c) When each co-venture keep records of all the joint venture transaction himself
(d) None of the three
12. The party who sends the goods for sales on fixed commission basis is known as
(a) Drawer (b) Drawee
(c) Payee (d) Consignor
13. Endorsement, discounting and collection of bills of exchange is made by
(a) Debtors (b) Creditors
(c) Drawee (d) Drawer
14. Returns Inward, appearing in the trial balance are deducted from
(a) Purchases (b) Capital
(c) Sales (d) None of the above

248 Common Proficiency Test (CPT) Volume - II

15. Drawings is deducted from
(a) Capital (b) Sales
(c) Purchases (d) None of the above
16. Purchase of Plant & Machinery on credit basis is recorded in
(a) Cash book (b) Journal proper
(c) Purchases (d) Both (a) and (b)
17. The trial balance of Rajesh Ltd. shows closing inventories of Rs. 90,000. It will be recorded
in
(a) Profit & Loss A/c (b) Trading A/c
(c) Balance Sheet (d) None of the above
18. Loss on issue of debentures is treated as
(a) Miscellaneous capital expenditure
(b) Current assets
(c) Intangible assets
(d) Current Liabilities
19. A proforma invoice is sent by
(a) Debtors to consignee (b) Debtors to consignor
(c) Consignor to consignee (d) None of three
20. Noting charges are paid at the time of
(a) Renewal of the bill (b) Retirement of the bill
(c) Dishonour of the bill (d) None of the three
21. Accounting has certain norms to be observed by the accountants in recording of transactions
and preparation of financial statement. These norms reduce the vagueness and chances of
misunderstanding by harmonizing the varied accounting practices. These norms are
(a) Accounting Standards
(b) Accounting framework
(c) Accounting regulations
(d) Accounting guidance notes
22. An undervaluation of previous year’s opening inventory will
(a) Cause current year’s net income to be overstated
(b) Cause previous years net income to be understated
(c) Cause previous years net income to be overstated
(d) None of the above

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MODEL TEST PAPER - 10

23. Parul accepted a bill for 90 days of Rs. 10,000 drawn by Rahul on 10 Feb., 2006. On 18th
March, 2006, Parul wished to retire the bill, Rahul offered rebate @ 12% p.a. considering
the year of 360 days rebate amount will be
(a) Rs. 184 (b) Rs. 150
(c) Rs. 180 (d) None of the above
24. Sohan draws a 40 days bill on Rohan on 20th Jan 2007. The bill falls due on
(a) March 4, 2007 (b) February 29, 2007
(c) March 1, 2007 (a) None of these
25. The trial balance checks
(a) Valuation of closing stock
(b) valuation of assets
(c) valuation of liabilities
(d) Arithmetical accuracy of books of accounts.
26. If total sales during the year Rs. 1,00,000; Cash sales Rs. 20,000 and outstanding debtors at
the end of the year Rs. 30,000 then cash received from debtors during the year will be
(a) Rs. 70,000 (b) Rs. 50,000
(c) Rs. 1,10,000 (d) Rs. 90,000
27. Cost of goods sold Rs. 1,50,000
Closing stock Rs. 40,000
Opening stock Rs. 60,000
Amount of purchases will be
(a) Rs. 1,30,000 (b) Rs. 1,70,000
(c) Rs. 50,000 (d) None of the above
28. If a bill of exchange will mature on 15th August but it is a public holiday then the bill will
mature on
(a) 15 August (b) 16 August
(c) 14 August (d) 18 August
29. A, B and C are partners in a firm sharing profits and losses in the ratio of 2:3:5. The firm
separate took life policy of Rs. 50,000, Rs. 1,00,000 and Rs. 1,50,000 for A, B and C respectively.
The share of B in the policy will be
(a) Rs. 90,000 (b) Rs. 1,50,000
(c) Rs. 3,00,000 (d) Rs. 60,000
30. A company purchased a motor car for Rs. 5,00,000. Estimated useful life of the motor car
is 15 years and residual value is Rs. 50,000. Rate of depreciation will be
(a) 9% (b) 6%
(c) 10% (d) 15%

250 Common Proficiency Test (CPT) Volume - II

31. A company issued Rs. 20,000 15% debentures at a discount of 10% redeemable after 15 year
at a premium of 5%. Loss on issue of debentures will be
(a) Rs. 1,400 (b) Rs. 1,000
(c) Rs. 3,000 (d) None of the above
32. Raj Ltd. purchased machinery for Rs. 20,000 payable Rs. 6500 in cash and the balance by
an issue of 10% debentures of Rs. 100 each at a discount of 10%. Discount on issue of
debentures will be
(a) Rs. 1,000 (b) Rs. 1,500
(c) Rs. 1,400 (d) None of these
33. A firm had an unrecorded investment of worth Rs. 50,000. Entry in the firms journal on
admission of a partner will be
(a) Partner Capital A/c Dr. 50,000
To Revaluation A/c 50,000
(b) Revaluation A/c Dr. 50,000
To Partner’s capital 50,000
(c) Unrecorded investment A/c Dr. 50,000
To Revaluation A/c 50,000
(d) Revaluation A/c Dr. 50,000
To Unrecorded investment A/c 50,000
34. Gaining ratio is applied when
(a) A partner is insolvent (b) A partner is admitted
(c) A partner retires (d) All of the above
35. Interest on capital at 12% p.a. is to be allowed. Capital in the beginning was Rs. 6,00,000.
Interest amount will be
(a) Rs. 70,000 (b) Rs. 72,000
(c) Rs. 60,000 (d) Rs. 75,000
36. Lal & Co. issued 10,000 debentures of Rs. 100 each at a discount of 4% redeemable after 5
years at a premium of 6%. Loss on issue of debentures will be
(a) Rs. 60,000 (b) Rs. 1,60,000
(c) Rs. 1,00,000 (d) Rs. 40,000
37. Dismantling and demolition charges is a
(a) Deferred Revenue expenditure
(b) Capital expenditure
(c) Revenue expenditure
(d) None of the above

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MODEL TEST PAPER - 10

38. On equity share of Rs.20, the company has called up Rs.18 but actually received Rs.18. The
share capital would be credited by
(a) Rs. 20 (b) Rs. 18
(c) Rs. 16 (d) Rs. 10
39. Net salary paid to employees Rs. 5,00,000 in cash after deducting income tax Rs. 50,000
professional tax Rs. 10,000. Salary A/c will be debited with
(a) Rs. 5,00,000 (b) Rs. 4,40,000
(c) Rs. 5,60,000 (d) Rs.4,50,000
40. Ram and Mohan are partners sharing profits equally. They admitted Sohan for 1/3 share in
the firm. The new profit sharing ratio will be
(a) 2:2:1 (b) 1:1:1
(c) 1:2:3 (d) 3:2:1
41. A, B and C are partners sharing profits and losses in the ratio of 5:4:3. C retires and if A and
B share profits of C in 4:3 then new profit sharing ratio will be
(a) 5:4 (b) 4:3
(c) 5:3 (d) 47:37
42. Following figures have been taken from the trial balance of a trader:
Cost of goods sold 45,000
Sales 60,000
Closing Stock 10,000
The amount of profit will be

(a) Rs. 15,000 (b) Rs. 25,000

(c) Rs. 5,000 (d) None of those
43. In January 2003, a trader purchased machinery for Rs. 1,00,000 depreciation is charged @
20% by diminishing balance method. At the end of the third year it was sold for Rs. 31,000.
Profit or loss on sale will be
(a) Loss Rs.20,200 (b) Loss Rs.40,000
(c) Profit Rs.20,000 (d) Profit Rs.20,200
44. Net profit before charging manager’s commission is Rs. 24,000 and the manager is to be
allowed a commission of 20% on the profit after charging such commission. Commission
amount will be
(a) Rs. 4,000 (b) Rs. 4,800
(c) Rs. 4444.44 (d) None of the above

252 Common Proficiency Test (CPT) Volume - II

45. Amount spent on “Structural alteration” under pressure of law is a
(a) Capital loss (b) Revenue expenditure
(c) Capital expenditure (d) Deferred revenue expenditure
46. M, N and O share profit and losses in the ratio of 3:2:1. Upon admission of D, they agreed to
share 5:4:2:1. The sacrificing ratio will be
(a) Nil : Nil : 1/l2 (b) Nil : 1/12 : Nil
(c) 1/12 : Nil : Nil (d) None of the above
47. A was holding 100 shares of Rs. 10 each of a company on which he had paid Rs. 4 on
application and Rs. 3 allotment, but could not pay Rs. 2 on first call. Forfeited share A/c will
be credited with
(a) Rs. 500 (b) Rs. 400
(c) Rs. 700 (d) Rs. 600
48. The following information pertains to Arjun Ltd.
(1) Equity share capital called up Rs. 1,00,000
(2) Calls in arrear Rs. 10,000
(3) Calls in advance Rs. 10,000
(4) Proposed dividend 15%
The amount of proposed dividend payable is

(a) Rs. 15,000 (b) Rs. 13,500

(c) Rs. 85,000 (d) None of the above
49. Ram Ltd. purchased the business of Rahim Ltd. for Rs. 9,00,000 payable in fully paid
shares of Rs. 100 each. Shares were issued at a premium of 25%. Number of shares issued
against purchased consideration will be
(a) 7200 shares (b) 10800 shares
(c) 2250 shares (d) 6750 shares
50. Credit balance in the ledger will be
(a) A revenue or an asset (b) A revenue or a liability
(c) An expenses or an asset (d) None of the above
51. Gross profit is the difference between
(a) Sales and cost of goods sold (b) Sales and total expenses
(c) Sales and purchases (d) None of the above
52. Closing entry for transfer of net profit Rs. 6,300 to the capital a/c will be
(a) Trading A/c 6,300 Dr. To Balance sheet 6,300
(b) Trading A/c 6,300 Dr. To Profit & Loss A/c 6,300
(c) P & L A/c 6,300 Dr. To Capital A/c 6,300
(d) Capital A/c 6,300 Dr. To P& L A/c 6,300

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MODEL TEST PAPER - 10

53. The total of “Discount allowed” column in the Cash book for the month of July, 2007
amounting to Rs. 10,000 was not posted. Rectifying entry for the same will be
(a) Discount A/c Dr. 10,000 To Suspense A/c 10,000
(b) Suspense A/c Dr. 10,000 To Discount A/c 10,000
(c) Customer A/c Dr. 10,000 To Discount A/c 10,000
(d) None of the above
54. After preparing the trial balance the accountant find that the total of the credit side is short
by Rs. 2,000. This difference will be
(a) Debited to Suspense A/c
(b) Credited to suspense A/c
(c) Adjusted to any of the credit balance A/c
(d) Adjusted to any of the debit balance A/c
55. Goods purchased for Rs. 2,00,000 and were sold for Rs., 1,60,000. Margin 20% on sales.
Closing stock is ….
(a) Rs. 32,000 (b) Rs. 72,000
(c) Rs. 50,000 (d) None of the above
56. Journal entry for wages paid Rs. 3,000 for installation of plant will be
(a) Dr. Plant repairs A/c and Cr. Cash A/c 3,000
(b) Dr. Wages A/c and Cr. Cash A/c 3,000
(c) Dr. Plant A/c and Cr. Cash A/c 3,000
(d) None of the above
57. On June 1, Sahil paid salary amounting Rs. 20,000. This is
(a) A transaction (b) An event
(c) Both (a) and (b) (d) None of the above
58. Ram sells goods at cost plus 40%. Total sales were Rs. 21,000. Cost price of the goods will be
(a) Rs. 8,400 (b) Rs. 15,000
(c) Rs. 12,600 (d) Rs. 20,000
59. Bright stationery used stationery for business purposes Rs. 500. Amount will be credited to
(a) Purchases A/c (b) Sales A/c
(c) Cash A/c (d) None of the above
60. Goods destroyed by fire Rs. 50,000 and insurance company admitted full claim. Claim
receivable will be recorded in
(a) Trading A/c (b) P & L Appropriation A/c
(c) P & L A/c (d) Balance Sheet

254 Common Proficiency Test (CPT) Volume - II

 SECTION – B : MERCANTILE LAWS (40 MARKS)

61. Under Section 2(10) of the Sale of Goods Act, price means
(a) Consideration in money
(b) Transfer value of goods
(c) Revenue consideration
(d) Economic Exchange Value
62. An agreement to share the benefits of a public office
(a) Valid (b) Voidable
(c) Void (d) None of the above
63. Agreement which are in nature of bets and gambling are called
(a) Invalid agreements (b) Voidable contracts
(c) Contingent contracts (d) Wagering agreements
64. Offer implied from conduct of parties or from circumstances of the case is called
(a) General offer (b) Specific offer
(c) Express offer (d) Implied offer
65. Consideration without agreement are valid in case
(a) Out of love and affection
(b) Compensation for past voluntary series
(c) Promise to pay time barred debt
(d) All of the above
66. In case of sale on approval, the ownership is transferred to the buyer when he
(a) Accepts the goods (b) Adopts the transaction
(c) Fails the return goods (d) In all the above cases
67. Novation may take place between
(a) Different parties (b) The same parties
(c) (a) or (b) (d) (a) and (b)
68. Recission of a contract means
(a) The renewal of original contract
(b) Cancellation or termination of contract
(c) Substitution of new contract
(d) Alteration of contract
69. Discharge of contracts by implied consent does not include
(a) Novations (b) Actual performance
(c) Merger (d) Waiver

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MODEL TEST PAPER - 10

70. On the valid performance of the contractual obligation by the parties, the contract
(a) Is discharged (b) Becomes enforceable
(c) Becomes void (d) None of above
71. A contract is discharged by alteration which means the
(a) Acceptance of loser performance
(b) Cancellation of the existing contract
(c) Change in one or more terms of contract
(d) abandonment of rights by a party
72. A change in nature of obligation of contract known as
(a) Alteration (b) Repudiation
(c) Innovation (d) Rescission
73. Which of the following persons can perform the contract?
(a) Promisor alone
(b) Agent of the promisor
(c) Legal representatives of promisor
(d) All of these
74. Which of the remedies not available to a defrauded party?
(a) Consideration of the contract
(b) Rescind the contract
(c) Insistence on specific performance
(d) Suit for damages
75. A seller is an unpaid seller
(a) When only a part of the price has been paid
(b) When a cheque has been issued and the payment of the same is stopped
(c) When whole of the price has not been tendered
(d) Any one of the above
76. When property in goods has not passed to the buyer, the unpaid seller has a right of
(a) With holding delivery (b) Stoppage in transit
(c) (a) and (b) (d) (a) or (b)
77. The definition of unpaid seller is given in the Sale of Goods Act, in
(a) Section 45 (b) Section 46
(c) Section 47 (d) Section 48
78. A notice given to a partner is deemed to be a notice given to the firm when notice is given to
(a) Any active partner (b) Any partner
(c) Sleeping partner (d) All the partner

256 Common Proficiency Test (CPT) Volume - II

79. On the insolvency of a partner, the insolvent ceases to be a partner in the firm whether the
firm is dissolved or not
(a) Yes (b) No
(c) Practically dissolved (d) Dissolve in capital ratio
80. Section _______ of the Partnership Act, 1932 deals with “General duties of partners”.
(a) 7 (b) 9
(c) 11 (d) 14
81. For loss caused to the firm by his fraud in the conduct of the business, every partner shall
identify as a ________.
(a) Firm
(b) The other partners
(c) Only the working partners
(d) All the retiring partners
82. A partner may be expelled from the firm by any majority of the partners ________.
(a) In good faith
(b) Based on the contract between partners
(c) Either (a) or (b)
(d) Both (a) and (b)
83. Rules regarding delivery of goods deals by_________.
(a) Section 33 – 39 (b) Section 30 – 32
(c) Section 40 – 42 (d) None of the above
84. On the valid performance of the contractual obligations by the parties, the contract
__________.
(a) Becomes enforceable (b) Is discharged
(c) Becomes void (d) None of these
85. A partnership firm cannot use ___________ the words as part of its name.
(a) Limited (b) Co-operative
(c) Enterprises (d) Both (a) and (b)
86. The maximum number of partners in a banking firm is _____________.
(a) 10 (b) 15
(c) 20 (d) 25
87. Death of a partner deals with Section ___________.
(a) 36 (b) 35
(c) 38 (d) 37

Common Proficiency Test (CPT) Volume - II 257

MODEL TEST PAPER - 10

88. A contract of sale is a contract for sale by sample if it is__________.

(a) By operation of law
(b) By way of custom or usage of trade
(c) By way of an express or implied term in the contract, to that effect
(d) By decision of the seller
89. An agreement not enforceable by law is said to be void under Section _________ of the
Indian Contract Act.
(a) 2(a) (b) 2(b)
(c) 2(d) (d) 2(g)
90. Consent should be given ___________.
(a) By the person to whom offer is made
(b) Without condition
(c) In clear terms either oral or written
(d) All of the above
91. Revocation of offer can be done by __________.
(a) Lapse of time (b) Death of the offeror
(c) Counter offer (d) All of the above
92. The terms of offer must be _____________.
(a) Definite (b) Certain
(c) Unambiguous (d) All the above
93. A proposal when accepted becomes a _____________.
(a) Promise (b) Agreement
(c) Contract (d) None of the above
94. Offer has been defined in the Indian Contract Act, 1872 in __________.
(a) Section 2(a) (b) Section 2(b)
(c) Section 2(c) (d) Section 2(d)
95. Communication of offer may be by ___________.
(a) Words only (b) Conduct only
(c) Words or conduct (d) None of the above
96. In case letter of acceptance is lost in transit, it will be deemed to be a valid acceptance if it is
proved that the letter___________.
(a) Sufficiently stamped (b) Correctly addressed
(c) Posted (d) All the above

258 Common Proficiency Test (CPT) Volume - II

97. The juristic concept of contract consists of __________.
(a) Offer and acceptance
(b) Consideration and coercion
(c) Agreement and obligation
(d) Free consent and capacity
98. Advertisement inviting tender is __________.
(a) An offer (b) A counter offer
(c) An agreement (d) An invitation to offer
99. ‘A’, as surety ‘B’, makes a bond jointly with ‘B’, to ‘C’, to secure a loan from ‘C’ to ‘B’,
afterwards, ‘C’ obtains from ‘B’ a further security for the same debt. Subsequently, ‘C’
gives up the further security. Decide.
(a) A is discharged (b) A is not discharged
(c) B cannot file a suit (d) None of the above
100. ‘A’ and ‘B’ bet as to whether it would rain on a promising to pay Rs. 100 to ‘B’, if it rained,
and, ‘B’ promising an equal amount to ‘A’, if it did not. Decide the type of agreement.
(a) Contingent contract (b) Quasi contract
(c) Wagering contract (d) Implied contract
SECTION – C : GENERAL ECONOMICS (50 MARKS)

101. If the proportion of income spent on a good increase as income increases, then income elasticity
for the good is:
(a) Greater than one (b) Less than one
(c) One (d) Infinite
102 Which is not the assumption of marginal utility analysis?
(a) Cardinal measurability of utility
(b) Constancy of the marginal utility of money
(c) Rationality of human behaviour
(d) Ordinal Measurability of utility
103 Law of diminishing marginal utility may not apply to:
(a) Money (b) Butter
(c) Pepsi, Coke etc. (d) Ice cream
104 Which is not the assumption of the law of diminishing marginal utility?
(a) The different units consumed should be identifiable in all respects
(b) The different units consumed should consist of standard units
(c) There should be time gap or interval between consumption of one unit and another unit
(d) The law may not apply to hobbies, music etc.

Common Proficiency Test (CPT) Volume - II 259

MODEL TEST PAPER - 10

105 Concept of consumer surplus was evolved by:

(a) Allen and Hicks (b) Adam Smith
(c) Alfred Marshall (d) Robbins
106 Contraction of demand is the result of:
(a) Increase in the price of other good
(b) Increase in the price of substitute goods
(c) Decrease in the income of the consumer
(d) Increase in the price of the good concerned
107 Which of the following method is not used for measuring elasticity of supply?
(a) Arc Method (b) Percentage Method
(c) Total outlay Method (d) Point Method
108 If the local ice-cream shop raises the price of a ice cream cup from Rs 10 per cup to Rs. 15
per cup, and quantity demanded falls from 500 cups per day to 300 cups per day, the price
elasticity of demand for ice-cream cup is:
(a) 1 (b) 2.5
(c) 2 (d) 1.25
109 SGSY stands far:
(a) Self Gram Swarozgar Yojna
(b) Swarnajayanti Gram Swarozgar Yojna
(c) Swarnajayanti Gram Sadak Yojna
(d) Swarna Gram Swarozgar Yojna
110 Which of the following is not included in M1?
(a) Currency
(b) Demand Deposits
(c) Other deposits with RBI
(d) Other deposits with post office
111 In order to increase money supply in the country RBI may:
(a) Buy securities in the open market
(b) Sell securities in the open market
(c) Increase CRR
(d) Increase Bank rate
112 Which is not near money?
(a) Balance in saving account
(b) Balance in current account
(c) Both (a) and (b)
(d) Time deposits

260 Common Proficiency Test (CPT) Volume - II

113 Monopoly power refers to the firm’s ability to:
(a) Earn economic Profit
(b) Restrict entry into the industry
(c) Set prices above marginal cost
(d) Possess economies of scale
114 In the long run monopolistic competitive firm has:
(a) Excess Capacity (b) Excess Profits
(c) Zero Fixed cost (d) All of the above
115 Which of the following is a normative statement?
(a) Planned economies allocate resources via government departments
(b) Reducing inequality should be a major priorities for mixed economies
(c) There is greater degree of consumer sovereignty in market economies
(d) Most economies have experienced problems of falling output and rising prices
116 The market of computers is not in equilibrium, then which of the following statements is
definitely true?
(a) The prices of computer will rise
(b) The prices of computer will fall
(c) The prices of computers will change, but not enough information is given to determine the
direction of the change
(d) None of the above
117 As the price of Bananas rises:
(a) The quantity demanded for bananas increases
(b) The demand curve for bananas shifts to the right
(c) The quantity demanded for bananas decreases
(d) The demand curve far bananas shifts to the left
118 Suppose the short run cost function can be written as TC=250+10Q. Average Fixed cost
equals:
(a) 250/Q (b) 250
(c) 10 (d) 250/Q+10
119 Gopal inherited 1 acre of land from his father in 1960. Today the value of that land is Rs 90
lakh per acre. What is the opportunity cost to Gopal for keeping that land? His father paid
Rs. 50, 000 for this land.
(a) Nothing, since the land was inherited
(b) Rs.50, 000 which his father paid
(c) Rs.90 lakh, since this amount Gopal is getting now if he sells it
(d) Both (b) and (c)

Common Proficiency Test (CPT) Volume - II 261

MODEL TEST PAPER - 10

120 Suraj is a high school senior thinking about becoming an economic research assistant. Shyam
just graduated from college with an economic degree and is looking for a job as an economic
research assistant. For whom is the college tuition an opportunity cost?
(a) Suraj
(b) Shyam
(C) Both Suraj and Shyam
(d) Neither Suraj nor Shyam
121 Which of the following is incorrect?
(a) The shape of average cost is U-shaped
(b) MC Curve cuts AC curve at the minimum level of AC
(c) The AR and MR curves of the industry under perfect competition are parallel to X- axis
(d) MC curve cuts AVC curve at the minimum level of AVC
122 Other things remaining constant, the law of supply states:
(a) Supply for commodities is directly related to its price
(b) Price is not related to supply
(c) As supply rises, price also rises
(d) Supply is not related to factors other than price
123 Kinked demand curve in oligopoly market explains:
(a) Price and output determination
(b) existence of very few firms in the market
(c) Price rigidity
(d) Price leadership
124 Right to own private property is found in:
(a) Socialism (b) Capitalism
(c) Mixed Economy (d) Both (b) and (c)
125 Which of the following is not a factor of production?
(a) Man (b) Labour
(c) Capital (d) Entrepreneurs
126 ___________ shows the relationship of output with given inputs.
(a) Demand Function (b) Production Function
(c) Cost function (d) PPC function
127 TCn –TCn-1= which cost function?
(a) Marginal Cost (b) Average Cost
(c) Total Cost (d) None of the above

262 Common Proficiency Test (CPT) Volume - II

128 Shares traded in the stock market depict characteristics close to_________.
(a) Perfect competition
(b) Oligopoly
(c) Monopolistic Competition
(d) Monopoly
129 Assume that when price is Rs.20, quantity demanded in 10 units, and when price is Rs. 19
quantity demanded in 11 units. Based on this information, what is the marginal revenue
resulting from an increase in output from 10 units to 11 units.
(a) Re.1 (b) Rs.9
(c) Rs.19 (d) Rs.10
130 Which of the following is not a characteristic of a price taker?
(a) Positively sloped demand curve
(b) TR = PxQ
(c) AR = Price
(d) Marginal Revenue = Price
131. The cost of one thing in terms of the alternative given up is known as
(a) production cost (b) real cost
(c) opportunity cost (d) physical cost
132 With a given supply curve, a decrease in demand causes:
(a) an overall decrease in price but an increase in equilibrium quantity
(b) an overall increase in price but a decrease in equilibrium quantity
(c) No change in overall price but a reduction in equilibrium quantity
(d) An overall decrease in price and a decrease in equilibrium quantity
133 ___________ measure generally gives the highest estimate of unemployment especially for
poor economy
(a) CDS (b) CMS
(c) Usual Status (d) CWS
134 VAMBAY stands for:
(a) Vikas Ambedkar Awas Yojna
(b) Valmiki Aged Awas Yojna
(c) Valmiki Ambedkar Awas Yojna
(d) None of the above
135 The measure of absolute poverty is:
(a) Used only by India
(b) Not related to the income or consumption expenditure distribution
(c) Related to the distribution of income or consumption expenditure
(d) None of the above
Common Proficiency Test (CPT) Volume - II 263
MODEL TEST PAPER - 10

136 National Population Policy was announced in:

(a) 2001 (b) 1999
(c) 2000 (d) 2005
137 Unproductive consumers consist of:
(a) Children upto 15 years (b) Adults above 60 years
(c) Both (a) and (b) (d) Adults above 65 years
138 Which of the following statements is correct?
(a) Agriculture occupies 20% population of India
(b) Merely 15% population is below the poverty line
(c) The production techniques in India are very advance
(d) None of the above
139 ______________ is the top most bank for agricultural loans in India.
(a) NABARD (b) RBI
(c) SIDBI (d) SBI
140 MR curve and AR curves coincide in
(a) Monopoly (b) Monopolistic Competition
(c) Oligopoly (d) Perfect Competition
141 Law of increasing return operates due to:
(a) Indivisibility of Fixed Factors
(b) Division of Labour and specialization
(c) Both (a) and (b)
(d) Misuse of machinery
142 Law of variable proportion is applicable in:
(a) Short run
(b) Long run
(c) Both Short run and Long run
(d) Very Short run
143 Which of the following statements is incorrect?
(a) Both AP and MP can be calculated from T.P.
(b) When AP rises then MP>AP
(c) When AP is maximum then MP = AP
(d) When AP falls, MP also falls but MP>AP
144 Supply of a Commodity is a :
(a) Flow concept (b) Stock concept
(c) Both stock and flow concepts (d) None of these

264 Common Proficiency Test (CPT) Volume - II

145 If two goods are perfect substitutes to each other, then is necessarily follows that.
(a) An indifference curve relating to the two goods will be curvilinear
(b) An indifference curve relating to the two goods will be linear
(c) An indifference curve relating the two goods will be concave to the origin
(d) An indifference curve relating the two goods will be convex to the origin
146 When the price of a substitute of X commodity falls, the demand for X commodity:
(a) Falls (b) Rises
(c) Remains unchanged (d) Any of the above
147 Generally supply curve of industrial products is
(a) Positively sloped (b) Negatively sloped
(c) Both (a) and (b) (d) Parallel of to Y axis
148 Which of the following is not a fixed cost?
(a) Payment of interest on loan
(b) Cost of electricity and fuel
(c) Depreciation on building
(d) Rent of go down.
149 The relationship between the AC and MC is that
(a) MC will always be less than the AC
(b) MC will be more than AC when MC is falling
(c) AC may be more than MC when MC is rising
(d) None of the above
150 Which of the following is not included in M2?
(a) M1
(b) Time liabilities portion of saving deposits with bank
(c) Certificate of deposits issued by banks
(d) Term deposits with banks with maturity over one year
SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. The value of 33 + 43 + 53 + …………..+ 113

(a) 4356 (b) 4348
(c) 4347 (d) 4374
152. The sum of two numbers is 75 and their difference is 20. Find the difference of their squares.
(a) 1500 (b) 1600
(c) 1550 (d) None of these

Common Proficiency Test (CPT) Volume - II 265

MODEL TEST PAPER - 10

153. The sum of two numbers is 13 and the sum of their squares is 85. Find the numbers.
(a) 7, 6 (b) 8, 10
(c) 5, 4 (d) None of these
154. The difference between the squares of two consecutive numbers is 37. Find the numbers.
(a) 19, 18 (b) 20, 19
(c) 10, 9 (d) None of these
155. The denominator of a fraction is 3 more than its numerator. If the numerator is increased
by 7 and the denominator is decreased by 2, we obtain 2. The fraction is –

3 5
(a) (b)
8 8
7
(c) (d) None of these
8

156. If log x 3 = 1 find the value of x

6
(a) 9 (b) 27
(c) 18 (d) None of these

157. The value of a loga x is

(a) x (b) logax
(c) x2 (d) None of these

158. The value of 3 2-log 3 6 is

9 3
(a) (b)
5 2
9
(c) (d) None of these
4
159. If log 2 = 0.3010, log 3 = 0.04771 and log 5 = 0.6990, there log 30
(a) 2.5717 (b) 2.4771
(c) 1.4771 (d) None of these
160. If log 10 12.45 = 1.0952 and log 10 3.79 = 0.5786, find the value of
log10 124.5 + log10 379.
(a) 5.3782 (b) 4.6738
(c) 2.6738 (d) None of these

266 Common Proficiency Test (CPT) Volume - II

161. If np5 : np3 = 2:1; then the value of n is
(a) 4 (b) 5
(c) 10 (d) None of these
162. A room has 10 doors. In how many ways can a man enter the room by one door and come out
by a different door.
(a) 90 (b) 100
(c) 50 (d) None of these
163. How many numbers greater than 1000 can be formed with the digits of the number 23416;
if the digits are not repeated in the same number.
(a) 120 (b) 200
(c) 240 (d) None of these
164. How many numbers can be formed with the digits of the number 112321 that are greater
than one lakh?
(a) 60 (b) 80
(c) 70 (d) None of these
165. In how many different ways can 17 billiard balls be arranged, if 7 of them are black, 6 red
and 4 white.
(a) 408408 (b) 4084080
(c) 4004080 (d) None of these

xe x
166. Evaluate ∫ ( x + 1) 2
dx

1 1 x
(a)
ex + c (b) e +c
( x + 1)
2
x +1
2x
(c)
e 2x + c (d) None of these
( x + 1)
2

x -1
∫ e ( x + 1)
x
167. Evaluate 3
dx

e 2x ex
(a) +c (b) +c
( x + 1) ( x + 1)
3 3

ex
(c) (d) None of these
( x + 1)
2

Common Proficiency Test (CPT) Volume - II 267

MODEL TEST PAPER - 10

1
168. Evaluate ∫ (x 2
− 4) x + 1
dx

1 ⎛ x +1 − 3 ⎞ 1 −1
(a) log ⎜⎜ ⎟⎟ − tan x +1 + c
4 3 ⎝ x + 1 + 3 ⎠ 2

1 ⎛ x2 + 4 − 3 ⎞ 1
(b) log ⎜ ⎟ − tan −1 x 2 − 4 + c
4 ⎜ ⎟
⎝ x +4+ 3⎠ 2
2

(c)
1
2
1
log ⎡⎣( x 2 − 4 ) x + 1 ⎤⎦ − tan −1
2
( )
x2 +1 + c

(d) None of these

dx
169. Evaluate: ∫x 2
− a2

1 x−a 1 x+a
(a) log +c (b) log +c
2a x+a 2a x−a
1 x−a
(c) − log +c (d) None of these
2a x+a

1
170. Evaluate: ∫a 2
− x2
dx

1 a+x −1 a−x
(a) log +c (b) log +c
2a a−x 2a a+x
1 x−a
(c) lo g (d) None of these
2a x+a

dy
171. If ex–y + log xy + xy = 0, then is
dx

y –y
(a) (b)
x x

268 Common Proficiency Test (CPT) Volume - II

 –x
(c) (d) None of these
y

dy
172. if y = x log (log x); then is
dx

y x
⎡ log ( log x ) + 1⎤⎦ ⎡log ( log x ) + 1⎤⎦
y⎣
(a) (b)
x⎣
x
(c) − ⎡⎣log ( log x ) + 1⎤⎦ (d) None of these
y

1
x+ ,
173. If y = 1 then dy is
x+ dx
x

x4 + x2 + 2 x4 + x2 + 2
(a) (b)
(x 2 + 1) 2 x 2 +1

(x4 +x2 +2)2

(c) (d) None of these
x2 +1

y x dy
174. If + = 6, then is
x y dx

x + 17y x − 17y
(a) (b)
17x + y 17x + y
x − 17y
(c) (d) None of these
17x − y

175. Evaluate :
47
c 4 + ∑ 50 - jc 3
j=0

(a) 249900 (b) 24990

(c) 249000 (d) None of these

Common Proficiency Test (CPT) Volume - II 269

MODEL TEST PAPER - 10

176. The first term of an A.P. is 100 and the sum of whose first 6 terms is 5 times the sum of the
next 6 terms, then the c.d. is –
(a) –10 (b) 10
(c) 5 (d) None of these
177. The sum of n terms of an A.P. is 3n2+n; then its pth term is
(a) 6P + 2 (b) 6P – 2
(d) 6P – 1 (d) None of these
178. The sum of first m terms of an A.P. is same as the sum of first n terms, where
m¹ n; then the sum of first (m+n) terms is:
(a) 0 (b) 1
(c) –1 (d) None of these

-9 -7
179. Which term of the sequence, , -2, , ................ is zero.
4 4
(a) 9th term (b) 10th term
(c) 12th term (d) None of these
180. If 6 times of 6th term of an A.P. is equal to 15 times the 15th term, then its 21st term.
(a) 1 (b) –1
(c) 0 (d) None of these
181. The average of n numbers is x. If each of the numbers is multiplied by (n+1); then the
average of new set of numbers is

x
(a) x (b)
n +1
(c) (n + 1).x (d) None of these
182. The average weight of 8 person increases by 1.5 kg, if a person weighing 65 kg replaced by a
new person, what would be the weight of the new person?
(a) 76 kg (b) 80 kg
(c) 77 kg (d) None of these
183. The average of marks obtained by 120 students in a certain examination is 135. If the average
marks of passed students is 39 and that of the failed students is 15; what is the number of
students who passed in the examination?
(a) 100 (b) 150
(c) 200 (d) None of these

270 Common Proficiency Test (CPT) Volume - II

184. The average of 17 numbers is 45. The average of first 9 of these numbers is 51 and the last 9
of these numbers is 36. Find the 9th number?
(a) 5 (b) 14
(c) 18 (d) None of these
185. The average of 11 results is 30, that of the first five is 25 and that of the last five is 28. Find
the value of the 6th number?
(a) 60 (b) 65
(d) 75 (d) None of these
186. There are ……………. Tests for Index Number
(a) Four (b) Three
(c) Five (d) None of these
187. Laspeyre’s & Paasche’s Index Number satisfy the time reversal test.
(a) True (b) False
(c) Either (a) or (b) (d) None of these
188. If one card is drawn at random from a pack of playing cards; find the probability it is
neither a hearts nor a club:

(a) 1 (b) 3
2 4
(c) 1 (d) None of these
8
189. Three balls are drawn at random from a bag containing 6 blue and 4 red balls. What is the
chance that 2 balls are blue and 1 is red?

(a) 1 (b) 3
4 4
(c) 1 (d) None of these
2
190. Find the probability of 53 Mondays in a leap year?

2 3
(a) (b)
7 7

4
(c) (d) None of these
7

Common Proficiency Test (CPT) Volume - II 271

MODEL TEST PAPER - 10

1 3
191. If A & B are independent events and P(A) = & P(B) = ; then P( AUB ) is
3 4

2 5
(a) (b)
6 6
1
(c) (d) None of these
6
192. Two letters are drawn at random from the word “HOME” Find the probability that both
the letters are vowel?

1 5
(a) (b)
6 6
2
(c) (d) None of these
3
193. Two letters are drawn at random from the word “HOME” Find the probability that at least
one is vowel?

5 1
(a) (b)
6 6
1
(c) (d) None of these
3
194. Two letters are drawn at random from the word “HOME” Find the probability that one of
the letters selected should be M.

1 1
(a) (b)
4 2
3
(c) (d) None of these
4
195. A and B are two mutually exclusive events of an experiments. If P (‘not A’) = 0.65, P (AYB)
= 0.65 and P(B) = p. Then the value of p is
(a) 0.35 (b) 0.60
(c) 0.3 (d) None of these
196. Find the sum of n terms of the given series
(a) 2n–n–1 (b) 1–2–n
(c) n+2–n–1 (d) 2n–1

272 Common Proficiency Test (CPT) Volume - II

197. Let f(x) be a polynomial function of second degree and a 1, a 2, a 3 are in A.P. then
f’ (a2) and f’ (a3) are in
(a) A.P. (b) G.P.
(c) Either A.P. or G.P. (d) None of these
198. A man borrows Rs. 20,000 at interest rate 4% per annum compounded annually and agrees
to pay both the principal and the interest in 10 equal instalments at the end of each year.
Find the value of each instalment (approx.) (Given log 104 = 2.0170 and log 6761 = 3.8300).
(a) Rs. 2,470 (b) Rs. 3,470
(d) Rs. 5,470 (d) None of these
199. Two regression coefficient bxy and byx are 1.2 and –0.5. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these
200. The mean of Poisson distribution is 1.6 and variance is 2. This is
(a) True (b) False
(c) Either (a) or (b) (d) None of these

❖❖❖

Common Proficiency Test (CPT) Volume - II 273

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 1 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (d) 2. (d) 3. (b) 4. (a) 5. (d)

6. (a) 7. (b) 8. (a) 9. (c) 10. (b)
11. (c) 12. (a) 13. (d) 14. (b) 15. (a)
16. (d) 17. (b) 18. (a) 19. (b) 20. (d)
21. (c) 22. (c) 23. (b) 24. (c) 25. (a)
26. (b) 27. (b) 28. (d) 29. (b) 30. (c)
31. (b) 32. (c) 33. (a) 34. (a) 35. (c)
36. (d) 37. (a) 38. (c) 39. (b) 40. (a)
41. (b) 42. (b) 43. (c) 44. (a) 45. (c)
46. (b) 47. (d) 48. (a) 49. (c) 50. (b)
51. (c) 52. (a) 53. (b) 54. (a) 55. (b)
56. (d) 57. (a) 58. (c) 59. (d) 60. (b)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (c) 62. (d) 63. (a) 64. (b) 65. (a)
66. (a) 67. (d) 68. (c) 69. (c) 70. (b)
71. (a) 72. (a) 73. (a) 74. (b) 75. (a)
76. (c) 77. (d) 78. (c) 79. (b) 80. (b)
81. (a) 82. (a) 83. (c) 84. (d) 85. (d)
86. (a) 87. (b) 88. (b) 89. (a) 90. (a)
91. (a) 92. (d) 93. (b) 94. (b) 95. (b)
96. (b) 97. (c) 98. (d) 99. (b) 100. (a)

Common Proficiency Test (CPT) Volume - II 275

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 1 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (b) 111 (d) 121 (b) 131 (c) 141 (b)
102 (a) 112 (d) 122 (a) 132 (b) 142 (c)
103 (c) 113 (a) 123 (c) 133 (d) 143 (b)
104 (a) 114 (c) 124 (d) 134 (c) 144 (a)
105 (a) 115 (b) 125 (b) 135 (b) 145 (b)
106 (b) 116 (c) 126 (c) 136 (a) 146 (b)
107 (c) 117 (b) 127 (b) 137 (b) 147 (d)
108 (a) 118 (a) 128 (d) 138 (c) 148 (b)
109 (d) 119 (b) 129 (c) 139 (b) 149 (a)
110 (b) 120 (c) 130 (c) 140 (c) 150 (d)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (a) 152. (c) 153. (d) 154. (b) 155. (a)
156. (a) 157. (c) 158. (a) 159. (b) 160. (c)
161. (b) 162. (d) 163. (b) 164. (a) 165. (a)
166. (b) 167. (c) 168. (a) 169. (c) 170. (b)
171. (c) 172. (a) 173. (c) 174. (a) 175. (b)
176. (a) 177. (c) 178. (d) 179. (b) 180. (a)
181. (a) 182. (c) 183. (b) 184. (a) 185. (a)
186. (a) 187. (b) 188. (a) 189. (b) 190. (a)
191. (b) 192. (a) 193. (b) 194. (c) 195. (b)
196. (b) 197. (a) 198. (b) 199. (a) 200. (c )

276 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 2 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (c) 2. (d) 3. (a) 4. (b) 5. (c)

6. (a) 7. (c) 8. (b) 9. (a) 10. (c)
11. (b) 12. (d) 13. (c) 14. (b) 15. (c)
16. (a) 17. (a) 18. (c) 19. (b) 20. (b)
21. (c) 22. (d) 23. (d) 24. (a) 25. (c)
26. (b) 27. (c) 28. (a) 29. (d) 30. (b)
31. (c) 32. (a) 33. (b) 34. (a) 35. (b)
36. (b) 37. (c) 38. (d) 39. (c) 40. (a)
41. (a) 42. (b) 43. (d) 44. (c) 45. (a)
46. (c) 47. (d) 48. (a) 49. (b) 50. (a)
51. (c) 52. (a) 53. (d) 54. (b) 55. (c)
56. (a) 57. (b) 58. (d) 59. (a) 60. (c)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (a) 62. (b) 63. (a) 64. (a) 65. (b)
66. (a) 67. (c) 68. (d) 69. (d) 70. (c)
71. (a) 72. (d) 73. (c) 74. (a) 75. (c)
76. (c) 77. (c) 78. (c) 79. (c) 80. (b)
81. (a) 82. (d) 83. (b) 84. (b) 85. (a)
86. (c) 87. (d) 88. (a) 89. (b) 90. (c)
91. (a) 92. (a) 93. (d) 94. (a) 95. (c)
96. (a) 97. (d) 98. (a) 99. (c) 100. (c)

Common Proficiency Test (CPT) Volume - II 277

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 2 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (a) 111 (b) 121 (a) 131 (b) 141 (a)
102 (c) 112 (d) 122 (b) 132 (c) 142 (c)
103 (c) 113 (b) 123 (d) 133 (a) 143 (d)
104 (d) 114 (b) 124 (d) 134 (c) 144 (a)
105 (b) 115 (a) 125 (c) 135 (a) 145 (c)
106 (c) 116 (d) 126 (d) 136 (d) 146 (c)
107 (d) 117 (c) 127 (a) 137 (a) 147 (d)
108 (d) 118 (d) 128 (b) 138 (b) 148 (b)
109 (d) 119 (b) 129 (a) 139 (d) 149 (d)
110 (d) 120 (a) 130 (b) 140 (a) 150 (a)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (a) 152. (b) 153. (a) 154. (a) 155. (c)
156. () 157. (c) 158. (b) 159. (a) 160. (c)
161. (a) 162. (b) 163. (b) 164. (a) 165. (b)
166. (b) 167. (b) 168. (c) 169. (b) 170. (b)
171. (c) 172. (a) 173. (c) 174. (d) 175. (b)
176. (a) 177. (a) 178. (b) 179. (a) 180. (a)
181. (b) 182. (b) 183. (a) 184. (c) 185. (b)
186. (b) 187. (a) 188. (c) 189. (a) 190. (b)
191. (b) 192. (a) 193. (a) 194. (b) 195. (c)
196. (a) 197. (b) 198. (a) 199. (c) 200. (b)

278 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 3 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (a) 2. (c) 3. (c) 4. (c) 5. (a)

6. (a) 7. (b) 8. (b) 9. (a) 10. (b)
11. (d) 12. (d) 13. (d) 14. (c) 15. (a)
16. (a) 17. (a) 18. (a) 19. (a) 20. (c)
21. (b) 22. (a) 23. (c) 24. (d) 25. (a)
26. (c) 27. (a) 28. (d) 29. (b) 30. (b)
31. (b) 32. (a) 33. (c) 34. (d) 35. (a)
36. (d) 37. (d) 38. (a) 39. (c) 40. (a)
41. (b) 42. (c) 43. (c) 44. (c) 45. (c)
46. (b) 47. (a) 48. (c) 49. (d) 50. (b)
51. (b) 52. (a) 53. (b) 54. (b) 55. (d)
56. (b) 57. (d) 58. (a) 59. (b) 60. (c)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (c) 62. (d) 63. (d) 64. (d) 65. (c)
66. (b) 67. (d) 68. (a) 69. (c) 70. (a)
71. (a) 72. (c) 73. (c) 74. (d) 75. (a)
76. (a) 77. (b) 78. (a) 79. (b) 80. (c)
81. (b) 82. (a) 83. (b) 84. (c) 85. (c)
86. (c) 87. (b) 88. (c) 89. (d) 90. (b)
91. (b) 92. (a) 93. (c) 94. (c) 95. (c)
96. (a) 97. (c) 98. (b) 99. (b) 100. (a)

Common Proficiency Test (CPT) Volume - II 279

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 3 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (d) 111 (a) 121 (d) 131 (d) 141 (b)
102 (b) 112 (d) 122 (c) 132 (a) 142 (d)
103 (b) 113 (c) 123 (b) 133 (c) 143 (d)
104 (c) 114 (c) 124 (c) 134 (a) 144 (a)
105 (c) 115 (b) 125 (a) 135 (d) 145 (b)
106 (a) 116 (d) 126 (c) 136 (a) 146 (c)
107 (b) 117 (a) 127 (a) 137 (a) 147 (b)
108 (b) 118 (c) 128 (d) 138 (b) 148 (d)
109 (c) 119 (a) 129 (c) 139 (d) 149 (b)
110 (d) 120 (d) 130 (b) 140 (c) 150 (c)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (b) 152. (c) 153. (a) 154. (b) 155. (c)
156. (c) 157. (a) 158. (b) 159. (b) 160. (c)
161. (b) 162. (a) 163. (b) 164. (a) 165. (b)
166. (c) 167. (b) 168. (c) 169. (a) 170. (b)
171. (d) 172. (a) 173. (c) 174. (b) 175. (a)
176. (a) 177. (c) 178. (a) 179. (c) 180. (a)
181. (a) 182. (a) 183. (a) 184. (d) 185. (c)
186. (b) 187. (a) 188. (c) 189. (a) 190. (a)
191. (c) 192. (b) 193. (a) 194. (b) 195. (a)
196. (a) 197. (c) 198. (b) 199. (a) 200. (c)

280 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 4 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (b) 2. (d) 3. (b) 4. (c) 5. (d)

6. (b) 7. (d) 8. (d) 9. (b) 10. (a)
11. (c) 12. (c) 13. (b) 14. (b) 15. (c)
16. (a) 17. (a) 18. (c) 19. (a) 20. (d)
21. (a) 22. (d) 23. (c) 24. (a) 25. (c)
26. (a) 27. (d) 28. (b) 29. (b) 30. (d)
31. (c) 32. (c) 33. (c) 34. (a) 35. (d)
36. (a) 37. (d) 38. (c) 39. (b) 40. (c)
41. (a) 42. (c) 43. (a) 44. (a) 45. (c)
46. (b) 47. (c) 48. (b) 49. (b) 50. (b)
51. (a) 52. (c) 53. (b) 54. (a) 55. (b)
56. (b) 57. (b) 58. (d) 59. (a) 60. (b)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (d) 62. (c) 63. (a) 64. (c) 65. (c)
66. (a) 67. (d) 68. (d) 69. (b) 70. (c)
71. (b) 72. (d) 73. (c) 74. (c) 75. (b)
76. (b) 77. (d) 78. (a) 79. (c) 80. (d)
81. (c) 82. (b) 83. (c) 84. (b) 85. (b)
86. (a) 87. (c) 88. (b) 89. (b) 90. (a)
91. (c) 92. (b) 93. (b) 94. (a) 95. (c)
96. (d) 97. (b) 98. (a) 99. (b) 100. (b)

Common Proficiency Test (CPT) Volume - II 281

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 4 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (c) 111 (d) 121 (d) 131 (a) 141 (a)
102 (c) 112 (c) 122 (c) 132 (a) 142 (c)
103 (a) 113 (c) 123 (b) 133 (b) 143 (b)
104 (c) 114 (d) 124 (a) 134 (a) 144 (c)
105 (c) 115 (d) 125 (c) 135 (b) 145 (b)
106 (c) 116 (a) 126 (b) 136 (d) 146 (c)
107 (d) 117 (b) 127 (d) 137 (b) 147 (b)
108 (a) 118 (b) 128 (d) 138 (c) 148 (a)
109 (a) 119 (d) 129 (b) 139 (c) 149 (a)
110 (d) 120 (a) 130 (a) 140 (b) 150 (c)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (a) 152. (c) 153. (a) 154. (c) 155. (c)
156. (b) 157. (a) 158. (a) 159. (b) 160. (a)
161. (a) 162. (b) 163. (a) 164. (a) 165. (a)
166. (a) 167. (d) 168. (d) 169. (a) 170. (b)
171. (b) 172. (b) 173. (a) 174. (b) 175. (a)
176. (c) 177. (a) 178. (c) 179. (a) 180. (b)
181. (c) 182. (a) 183. (a) 184. (a) 185. (b)
186. (a) 187. (b) 188. (c) 189. (a) 190. (b)
191. (a) 192. (a) 193. (b) 194. (a) 195. (b)
196. (b) 197. (a) 198. (b) 199. (b) 200. (b)

282 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 5 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (a) 2. (d) 3. (c) 4. (d) 5. (b)

6. (a) 7. (d) 8. (a) 9. (c) 10. (b)
11. (d) 12. (b) 13. (a) 14. (c) 15. (d)
16. (a) 17. (d) 18. (c) 19. (c) 20. (d)
21. (a) 22. (b) 23. (c) 24. (b) 25. (a)
26. (c) 27. (d) 28. (c) 29. (a) 30. (b)
31. (c) 32. (a) 33. (d) 34. (d) 35. (a)
36. (c) 37. (b) 38. (c) 39. (c) 40. (b)
41. (b) 42. (d) 43. (a) 44. (a) 45. (d)
46. (c) 47. (a) 48. (b) 49. (c) 50. (b)
51. (a) 52. (d) 53. (a) 54. (b) 55. (c)
56. (c) 57. (b) 58. (b) 59. (b) 60. (d)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (a) 62. (b) 63. (d) 64. (d) 65. (b)
66. (b) 67. (b) 68. (d) 69. (c) 70. (b)
71. (a) 72. (c) 73. (a) 74. (b) 75. (b)
76. (d) 77. (a) 78. (c) 79. (d) 80. (b)
81. (a) 82. (c) 83. (a) 84. (c) 85. (c)
86. (a) 87. (c) 88. (b) 89. (c) 90. (b)
91. (b) 92. (d) 93. (d) 94. (c) 95. (a)
96. (a) 97. (a) 98. (b) 99. (b) 100. (b)

Common Proficiency Test (CPT) Volume - II 283

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 5 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (b) 111 (b) 121 (c) 131 (b) 141 (d)
102 (c) 112 (b) 122 (a) 132 (a) 142 (a)
103 (d) 113 (d) 123 (a) 133 (a) 143 (a)
104 (c) 114 (b) 124 (a) 134 (b) 144 (d)
105 (d) 115 (c) 125 (c) 135 (a) 145 (c)
106 (a) 116 (a) 126 (c) 136 (b) 146 (c)
107 (b) 117 (b) 127 (b) 137 (b) 147 (a)
108 (a) 118 (b) 128 (a) 138 (a) 148 (b)
109 (b) 119 (b) 129 (d) 139 (d) 149 (b)
110 (d) 120 (a) 130 (d) 140 (a) 150 (d)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (c) 152. (a) 153. (b) 154. (a) 155. (b)
156. (b) 157. (b) 158. (c) 159. (a) 160. (b)
161. (a) 162. () 163. (a) 164. (a) 165. (a)
166. (b) 167. (b) 168. (a) 169. (c) 170. (a)
171. (a) 172. (c) 173. (a) 174. (b) 175. (c)
176. (a) 177. (b) 178. (a) 179. (c) 180. (a)
181. (a) 182. (b) 183. (b) 184. (a) 185. (d)
186. (c) 187. (c) 188. (b) 189. (a) 190. (b)
191. (a) 192. (a) 193. (b) 194. (b) 195. (c)
196. (c) 197. (b) 198. (b) 199. (b) 200. (b)

284 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 6 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (d) 2. (b) 3. (a) 4. (c) 5. (b)

6. (a) 7. (a) 8. (a) 9. (a) 10. (c)
11. (a) 12. (d) 13. (c) 14. (b) 15. (d)
16. (b) 17. (c) 18. (b) 19. (c) 20. (a)
21. (a) 22. (b) 23. (d) 24. (a) 25. (a)
26. (b) 27. (c) 28. (a) 29. (a) 30. (b)
31. (a) 32. (d) 33. (c) 34. (b) 35. (c)
36. (a) 37. (b) 38. (a) 39. (c) 40. (d)
41. (b) 42. (a) 43. (c) 44. (a) 45. (d)
46. (c) 47. (c) 48. (b) 49. (a) 50. (a)
51. (c) 52. (a) 53. (b) 54. (a) 55. (a)
56. (d) 57. (d) 58. (a) 59. (c) 60. (a)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (b) 62. (d) 63. (d) 64. (b) 65. (a)
66. (d) 67. (d) 68. (d) 69. (a) 70. (d)
71. (b) 72. (b) 73. (d) 74. (a) 75. (b)
76. (a) 77. (c) 78. (b) 79. (b) 80. (a)
81. (a) 82. (c) 83. (b) 84. (a) 85. (d)
86. (c) 87. (a) 88. (c) 89. (c) 90. (c)
91. (b) 92. (c) 93. (c) 94. (a) 95. (a)
96. (b) 97. (b) 98. (b) 99. (b) 100. (a)

Common Proficiency Test (CPT) Volume - II 285

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 6 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (d) 111 (c) 121 (d) 131 (b) 141 (a)
102 (a) 112 (a) 122 (a) 132 (c) 142 (d)
103 (c) 113 (d) 123 (a) 133 (d) 143 (a)
104 (c) 114 (d) 124 (c) 134 (c) 144 (b)
105 (d) 115 (a) 125 (b) 135 (b) 145 (a)
106 (b) 116 (c) 126 (d) 136 (c) 146 (b)
107 (b) 117 (b) 127 (d) 137 (c) 147 (b)
108 (a) 118 (c) 128 (b) 138 (a) 148 (d)
109 (b) 119 (c) 129 (b) 139 (b) 149 (c)
110 (a) 120 (d) 130 (c) 140 (b) 150 (a)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (b) 152. (b) 153. (d) 154. (a) 155. (a)
156. (a) 157. (b) 158. (a) 159. (a) 160. (a)
161. (b) 162. (c) 163. (a) 164. () 165. (b)
166. (c) 167. (a) 168. (a) 169. (b) 170. (a)
171. (c) 172. (a) 173. (a) 174. (b) 175. (c)
176. (b) 177. (c) 178. (a) 179. (c) 180. (b)
181. (b) 182. (a) 183. (c) 184. (c) 185. (c)
186. (c) 187. (b) 188. (b) 189. (b) 190. (b)
191. (b) 192. (a) 193. (b) 194. (a) 195. (b)
196. (a) 197. (c) 198. (c) 199. (c) 200. (c)

286 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 7 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (c) 2. (c) 3. (b) 4. (d) 5. (c)

6. (c) 7. (b) 8. (c) 9. (c) 10. (a)
11. (b) 12. (a) 13. (b) 14. (d) 15. (d)
16. (c) 17. (a) 18. (d) 19. (a) 20. (b)
21. (b) 22. (b) 23. (a) 24. (c) 25. (d)
26. (a) 27. (c) 28. (d) 29. (c) 30. (d)
31. (b) 32. (d) 33. (b) 34. (a) 35. (d)
36. (a) 37. (c) 38. (d) 39. (b) 40. (b)
41. (d) 42. (c) 43. (d) 44. (b) 45. (a)
46. (c) 47. (c) 48. (a) 49. (b) 50. (c)
51. (b) 52. (c) 53. (c) 54. (d) 55. (b)
56. (b) 57. (d) 58. (a) 59. (c) 60. (b)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (c) 62. (c) 63. (d) 64. (a) 65. (c)
66. (d) 67. (d) 68. (c) 69. (b) 70. (a)
71. (b) 72. (d) 73. (c) 74. (c) 75. (c)
76. (c) 77. (b) 78. (d) 79. (c) 80. (a)
81. (d) 82. (a) 83. (c) 84. (c) 85. (a)
86. (d) 87. (d) 88. (a) 89. (a) 90. (d)
91. (c) 92. (b) 93. (b) 94. (c) 95. (b)
96. (d) 97. (a) 98. (b) 99. (d) 100. (a)

Common Proficiency Test (CPT) Volume - II 287

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 7 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (d) 111 (c) 121 (a) 131 (c) 141 (b)
102 (a) 112 (b) 122 (b) 132 (c) 142 (a)
103 (b) 113 (b) 123 (d) 133 (c) 143 (c)
104 (d) 114 (c) 124 (a) 134 (d) 144 (d)
105 (a) 115 (a) 125 (a) 135 (c) 145 (d)
106 (b) 116 (b) 126 (c) 136 (b) 146 (d)
107 (c) 117 (d) 127 (a) 137 (c) 147 (a)
108 (d) 118 (b) 128 (d) 138 (a) 148 (b)
109 (c) 119 (b) 129 (d) 139 (d) 149 (a)
110 (d) 120 (d) 130 (b) 140 (a) 150 (b)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (c) 152. (a) 153. (d) 154. (a) 155. (d)
156. (a) 157. (a) 158. (a) 159. (b) 160. (c)
161. (b) 162. (c) 163. (c) 164. (b) 165. (a)
166. (c) 167. (a) 168. (b) 169. (b) 170. (c)
171. (a) 172. (a) 173. (b) 174. (c) 175. (a)
176. (b) 177. (b) 178. (a) 179. (b) 180. (a)
181. (c) 182. (a) 183. (c) 184. (b) 185. (c)
186. (a) 187. (b) 188. (c) 189. (b) 190. (a)
191. (a) 192. (a) 193. (b) 194. (a) 195. (c)
196. (a) 197. (b) 198. (b) 199. (a) 200. (c)

288 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 8 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (b) 2. (a) 3. (d) 4. (d) 5. (b)

6. (c) 7. (b) 8. (b) 9. (a) 10. (d)
11. (b) 12. (d) 13. (c) 14. (a) 15. (c)
16. (a) 17. (d) 18. (a) 19. (c) 20. (a)
21. (c) 22. (d) 23. (c) 24. (a) 25. (a)
26. (b) 27. (a) 28. (d) 29. (c) 30. (d)
31. (b) 32. (d) 33. (c) 34. (a) 35. (b)
36. (c) 37. (d) 38. (a) 39. (c) 40. (d)
41. (b) 42. (c) 43. (c) 44. (d) 45. (c)
46. (b) 47. (c) 48. (a) 49. (c) 50. (b)
51. (d) 52. (c) 53. (b) 54. (c) 55. (a)
56. (d) 57. (b) 58. (a) 59. (c) 60. (b)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (d) 62. (a) 63. (c) 64. (b) 65. (c)
66. (d) 67. (c) 68. (d) 69. (d) 70. (b)
71. (d) 72. (c) 73. (c) 74. (b) 75. (b)
76. (a) 77. (b) 78. (a) 79. (b) 80. (c)
81. (d) 82. (c) 83. (b) 84. (b) 85. (d)
86. (c) 87. (a) 88. (c) 89. (a) 90. (a)
91. (a) 92. (c) 93. (d) 94. (d) 95. (c)
96. (a) 97. (a) 98. (a) 99. (c) 100. (a)

Common Proficiency Test (CPT) Volume - II 289

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 8 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (b) 111 (c) 121 (b) 131 (a) 141 (c)
102 (b) 112 (a) 122 (b) 132 (b) 142 (c)
103 (a) 113 (d) 123 (c) 133 (a) 143 (c)
104 (a) 114 (d) 124 (a) 134 (d) 144 (d)
105 (a) 115 (a) 125 (a) 135 (b) 145 (d)
106 (b) 116 (d) 126 (a) 136 (c) 146 (d)
107 (a) 117 (b) 127 (b) 137 (b) 147 (d)
108 (b) 118 (b) 128 (d) 138 (b) 148 (a)
109 (c) 119 (d) 129 (c) 139 (d) 149 (a)
110 (d) 120 (a) 130 (c) 140 (d) 150 (d)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (b) 152. (a) 153. (b) 154. (c) 155. (a)
156. (c) 157. (c) 158. (c) 159. (a) 160. (b)
161. (b) 162. (c) 163. (c) 164. (a) 165. (b)
166. (b) 167. (c) 168. (a) 169. (a) 170. (b)
171. (b) 172. (a) 173. (b) 174. (d) 175. (a)
176. (a) 177. (c) 178. (b) 179. (b) 180. (b)
181. (a) 182. (c) 183. (a) 184. (b) 185. (a)
186. (c) 187. (a) 188. (c) 189. (d) 190. (b)
191. (a) 192. (a) 193. (a) 194. (c) 195. (a)
196. (a) 197. (d) 198. (b) 199. (a) 200. (a)

290 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 9 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (a) 2. (c) 3. (a) 4. (a) 5. (a)

6. (b) 7. (c) 8. (b) 9. (b) 10. (c)
11. (d) 12. (c) 13. (a) 14. (b) 15. (b)
16. (d) 17. (a) 18. (b) 19. (b) 20. (c)
21. (c) 22. (a) 23. (b) 24. (a) 25. (b)
26. (c) 27. (c) 28. (a) 29. (c) 30. (d)
31. (b) 32. (b) 33. (c) 34. (d) 35. (b)
36. (c) 37. (c) 38. (a) 39. (a) 40. (b)
41. (b) 42. (b) 43. (c) 44. (d) 45. (b)
46. (d) 47. (a) 48. (b) 49. (c) 50. (c)
51. (a) 52. (d) 53. (b) 54. (d) 55. (b)
56. (a) 57. (c) 58. (a) 59. (d) 60. (c)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (b) 62. (c) 63. (d) 64. (c) 65. (c)
66. (a) 67. (d) 68. (b) 69. (c) 70. (a)
71. (c) 72. (b) 73. (b) 74. (a) 75. (c)
76. (c) 77. (d) 78. (d) 79. (b) 80. (d)
81. (d) 82. (c) 83. (c) 84. (a) 85. (b)
86. (a) 87. (a) 88. (d) 89. (d) 90. (d)
91. (b) 92. (d) 93. (d) 94. (d) 95. (d)
96. (a) 97. (b) 98. (a) 99. (a) 100. (a)

Common Proficiency Test (CPT) Volume - II 291

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 9 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (b) 111 (b) 121 (b) 131 (a) 141 (a)
102 (c) 112 (a) 122 (a) 132 (c) 142 (b)
103 (b) 113 (a) 123 (c) 133 (a) 143 (c)
104 (d) 114 (c) 124 (b) 134 (d) 144 (b)
105 (c) 115 (b) 125 (c) 135 (b) 145 (d)
106 (a) 116 (c) 126 (a) 136 (b) 146 (c)
107 (a) 117 (d) 127 (a) 137 (a) 147 (a)
108 (c) 118 (d) 128 (c) 138 (d) 148 (b)
109 (a) 119 (a) 129 (d) 139 (c) 149 (d)
110 (b) 120 (a) 130 (d) 140 (d) 150 (b)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (c) 152. (a) 153. (a) 154. (b) 155. (a)
156. (a) 157. (c) 158. (a) 159. (b) 160. (c)
161. (a) 162. (b) 163. (a) 164. (b) 165. (a)
166. (a) 167. (c) 168. (b) 169. (a) 170. (c)
171. (a) 172. (c) 173. (a) 174. (b) 175. (b)
176. (a) 177. (c) 178. (a) 179. (a) 180. (a)
181. (a) 182. (b) 183. (a) 184. (a) 185. (c)
186. (b) 187. (a) 188. (b) 189. (a) 190. (b)
191. (b) 192. (a) 193. (c) 194. (b) 195. (b)
196. (a) 197. (b) 198. (b) 199. (a) 200. (b)

292 Common Proficiency Test (CPT) Volume - II

 Answer of Model Test Papers
Model Test Paper – BOS/CPT – 10 / 2007

SECTION – A : FUNDAMENTALS OF ACCOUNTING

1. (a) 2. (d) 3. (b) 4. (a) 5. (b)

6. (c) 7. (b) 8. (b) 9. (b) 10. (d)
11. (a) 12. (d) 13. (d) 14. (c) 15. (a)
16. (b) 17. (c) 18. (a) 19. (c) 20. (c)
21. (a) 22. (c) 23. (c) 24. (a) 25. (d)
26. (b) 27. (a) 28. (c) 29. (a) 30. (b)
31. (c) 32. (b) 33. (c) 34. (c) 35. (b)
36. (c) 37. (c) 38. (b) 39. (c) 40. (b)
41. (d) 42. (a) 43. (a) 44. (a) 45. (b)
46. (c) 47. (c) 48. (b) 49. (a) 50. (b)
51. (a) 52. (c) 53. (a) 54. (b) 55. (b)
56. (c) 57. (a) 58. (b) 59. (a) 60. (d)

SECTION – B : MERCANTILE LAWS (40 MARKS)

61. (a) 62. (a) 63. (d) 64. (a) 65. (d)
66. (d) 67. (b) 68. (b) 69. (b) 70. (a)
71. (c) 72. (c) 73. (d) 74. (b) 75. (d)
76. (c) 77. (a) 78. (a) 79. (a) 80. (b)
81. (a) 82. (d) 83. (a) 84. (d) 85. (a)
86. (a) 87. (b) 88. (c) 89. (d) 90. (d)
91. (d) 92. (d) 93. (a) 94. (a) 95. (c)
96. (d) 97. (a) 98. (d) 99. (a) 100. (c)

Common Proficiency Test (CPT) Volume - II 293

ANSWERS

Answer of Model Test Papers

Model Test Paper – BOS/CPT – 10 / 2007

SECTION – C : GENERAL ECONOMICS (50 MARKS)

101 (a) 111 (a) 121 (c) 131 (c) 141 (c)
102 (d) 112 (d) 122 (a) 132 (d) 142 (a)
103 (a) 113 (b) 123 (c) 133 (a) 143 (d)
104 (c) 114 (a) 124 (d) 134 (c) 144 (a)
105 (c) 115 (b) 125 (a) 135 (b) 145 (b)
106 (d) 116 (c) 126 (b) 136 (c) 146 (a)
107 (c) 117 (c) 127 (a) 137 (c) 147 (a)
108 (d) 118 (a) 128 (a) 138 (d) 148 (b)
109 (b) 119 (c) 129 (b) 139 (a) 149 (c)
110 (d) 120 (a) 130 (a) 140 (d) 150 (d)

SECTION – D : QUANTITATIVE APTITUDE (50 MARKS)

151. (c) 152. (a) 153. (a) 154. (a) 155. (b)
156. (b) 157. (a) 158. (b) 159. (c) 160. (b)
161. (b) 162. (a) 163. (c) 164. (a) 165. (b)
166. (b) 167. (c) 168. (a) 169. (a) 170. (b)
171. (d) 172. (a) 173. (a) 174. (c) 175. (a)
176. (a) 177. (b) 178. (a) 179. (b) 180. (c)
181. (c) 182. (c) 183. (a) 184. (a) 185. (b)
186. (a) 187. (b) 188. (a) 189. (c) 190. (a)
191. (b) 192. (a) 193. (a) 194. (b) 195. (c)
196. (C) 197. (a) 198. (a) 199. (b) 200. (b)

294 Common Proficiency Test (CPT) Volume - II

 SECTION – D : QUANTITATIVE APTITUDE
Suggested Answers/ Hints

Model Test Paper – BOS/CPT – 1 / 2007

0 4
⎛ 1 ⎞ 1 4 4
151. ⎜ ⎟ + (64 ) + (− 32 ) + (− 1) 5 (32 ) 5
−1 / 2 5
= 1+
⎝ 64 ⎠ 64
4
=
1
1 + + 25
8
( ) 5

1
= 1 + + 24
8
1 8 + 1 + 128 137
= 1 + + 16 = =
8 8 8
1
= 17
8
152. Given a 2 + b 2 = 45 → (1)
ab = 18 → (2)
18
(2) a= → (3)
b
18
Substitute a = in (1)
b
2
⎛ 18 ⎞ 2
⎜ ⎟ + b = 45
⎝b ⎠
324
2
+ b 2 = 45
b
324 + b 4 = 45 b 2

b 4 − 45 b 2 + 324 = 0

Let b 2 = x

x 2 − 45 x + 324 = 0

Common Proficiency Test (CPT) Volume - II 295

ANSWERS

(x − 36 ) (x − 9 ) = 0
x = 36 , x = 9
When x = 36, b = 6
When x = 9, b = 3
18
When, b = 6, (3) ⇒ a = =3
6
18
When b = 3, (3) ⇒ a = =6
3
When a = 3, b = 6
1 1 1 1 2 +1 3 1
∴ + = + = = =
a b 3 6 6 6 2
1 1 1 1 1
When a = 6, b = 3 ⇒ + = + =
a b 6 3 2
1
∴ Ans (c) =
2
1 −1 −1
a 2 +a 2 1− a 2
153. Given +
1− a 1+ a
1 1
a+ 1−
= a + a
1− a 1+ a
a +1 a −1
= +
a (1 − a ) (
a 1+ a )
=
1 ( )( )
⎡ (a + 1) 1 + a + a − 1 (1 − a ) ⎤
a
⎢
⎢⎣ (1 − a ) 1 + a ( ) ⎥
⎥⎦

1 ⎡a + a a +1+ a + a − a a −1+ a ⎤
= ⎢
a ⎣⎢ (1 − a ) 1 + a
⎥
⎦⎥ ( )
1 ⎡ 2a + 2 a ⎤
= ⎢
(⎥
a ⎢⎣ (1 − a ) 1 + a ⎥⎦ )
=
2 a ( a +1 )
(
a (1 − a ) 1 + a )
2
=
1− a

296 Common Proficiency Test (CPT) Volume - II

154. The given equation may be written as
log 2 log 5 4 log 2 4 log 10
= .
log e log x log 10 log e
log 2 ( 4 log 5 )
or, = logx
4 log 2
or, log 5 = log x
∴x = 5
Ans.(b)
155. Let the total score = x. Given the condition
2
highest score = x
9
2⎛ 2 ⎞
The next highest = ⎜ x − x ⎟ According the third condition of the problem
9⎝ 9 ⎠
2x 2 ⎛ 2 ⎞
− ⎜x − x⎟=8
9 9⎝ 9 ⎠
2x 2 4
− x+ x = 8
9 9 81
8 x 81
x= = 162
4
Ans. (a)
156. Let three proportionals are a, b, c

Then the third proportional = c =

b2
a
[
∴b = ac ]
20 2 400 80
∴ c= = =
15 15 3
Ans. (a)
157. Let a, b, c be the three proport ional then the mean proportional = b = ac

i.e. b = 9 × 25 = 3 × 3
= 15
Ans. (c)

Common Proficiency Test (CPT) Volume - II 297

 ANSWERS

158. Let the boys Ratio 2x

and the girls ratio 5x
Given 2x + 5x = 280
7x = 280
280
x= = 40
7
∴ Boys Ratio = 2 × 40 = 80
Girls Ratio = 5 × 40 = 200
159. Let x be the number of coins available in a bag
1 1
Given x + x + x = 35
2 4
4x + 2x + x
= 35
4
7 x = 35 × 4
35 × 4
x= = 20
7
Ans. (b)
160. Let the number be x. Then according to the given condition of the problem.
x x +1
= +1
3 4
x (x + 1)
− =1
3 4
4x − 3x − 3
=1
12
x − 3 = 12
x = 15
Ans. (c) −
⎛1⎞
161. Let log 3 ⎜ ⎟ = x
⎝ 81 ⎠
1
i.e. 3x =
81

298 Common Proficiency Test (CPT) Volume - II

 1
=
(3 )4
3 x = 3 −4
∴ x = −4
Ans. (b)
⎛ 1 ⎞
162. Let log 2 2 ⎜ ⎟ =x
⎝ 256 ⎠

i.e. 2 2 ( ) x
=
1
256

(2 × 2 ) ½ x
=
1
28
(2 )
3/2 x
= 2 −8
3
x
22 = 2−8
3
∴ x = −8
2
− 16
x=
3
Ans. (d)
3 1
163. Given log x 2 =
15
1
i.e. x 15 = 3 2
1
1
x 15 = (2 )3
Taking power 15 on both sides
15 15
⎛ 1 ⎞ ⎛ 1⎞
⎜ x 15 ⎟ = ⎜2 3 ⎟
⎜ ⎟ ⎜ ⎟
⎝ ⎠ ⎝ ⎠
x = 25
x = 32
Ans. (b)

Common Proficiency Test (CPT) Volume - II 299

ANSWERS

164. Given log3[log 4 (log 2 x )] = 0

i.e. 3° = log 4 (log 2 x)

1 = log 4 (log 2 x)
41 = log 2 x
log 2 x =4
24 =x
16 =x
Ans. (a)
165. Given log x (0 .00001 ) = − 5

i.e. x −5 = 0 .00001
1
= 0 .00001
x5
1
= x5
0 .00001
i.e. x 5 = 100000

x 5 = (10 )5
∴ x = 10
Ans. (a)
166. Suppose the x and y baskets were loaded in the first two trucks.
Total number of baskets = 1230
∴ Number of baskets initially loaded in the third basket = 1230 (x+y)
According to the question,
x − 5; y − 10; 1230 − (x+y) − 15 = 3:4:5
x−5 3
∴ =
1230 − ( x + y ) − 15 5
⇒ 5x − 25 = 3690 − 3x − 3y − 45
⇒ 8x + 3y = 3670 → (1)
y − 10 4
and =
1230 − ( x + y ) − 15 5
⇒ 5y − 50 = 4920 − 4x − 4y − 60

300 Common Proficiency Test (CPT) Volume - II

 ⇒ 4x + 9y = 4910 → (2)
Multiply equation (1) by 3,
24x + 9y = 11010 → (3)
Subtracting equation (2) from equation (3), we get
20x = 6100
6100
⇒ x= = 305
20
(1) ⇒ 8(305) + 3y = 3670
⇒ 2440 + 3y = 3670
3y = 3670 − 2440 = 1230
1230
y= = 410
3
Hence number of baskets loaded in first truck = 305.
Number of baskets loaded in Second Truck = 410 and the number of baskets loaded in
third truck.
= 1230 − (x+y)
= 1230 − (305 + 410)
= 1230 − 715
= 515
Ans. (b)
167. The given equations are:
2x + 3y − 5z = 0
−3x + 2y + 7z = 0
By Gross-multiplication method, we have
x y x
= =
21 + 10 15 − 14 4 + 9
x y z
⇒ = =
31 1 13
⇒ x : y : z = 31 : 1 : 13
Ans. (c)

Common Proficiency Test (CPT) Volume - II 301

 ANSWERS

168. log a n A = log a (A1/n )

1
= log a A
n
ans. (a)
log10 4 log10 2 2
169. =
log10 8 log10 2 3

2 log10 2
=
2 log10 2
2
=
3
Ans. (c)
170. log10 124.5 + log10 379 = log10 (12.45×10) + log10 (3.79×100)
= log10 12.45 + log10 10 + log10 3.79 + log10 100
= 1.0952 + 0.5786 + 2
log10 124.5 + log10 379 = 4.6738
Ans. (b)
171. No. of ways to fill unit place = 2
No. of ways to fill to the place = 4
No. of ways to fill 100 th place = 3
∴ Total no. of 3 digit even Nose 2 × 4 × 3 = 24
If 0 comes at 100th place then 3 digit no. 3 P3 = 3

Total Nos. greater than 100 = 24 − (3+1)

Ans. (c) 20
172. Total no. of 3 digits nos. are = 6 P3 = 120

Nos. of 3 digit if 0 comes at hundredth place = 5 P3 = 20

∴ Total nos. greater than 100 and less than 1000 by using (2, 3, 4, 0, 8, 9) are
= 120 − 20
= 100
Ans. (a) 100

302 Common Proficiency Test (CPT) Volume - II

173. No. of ways to arrange consonants = 4!
3!
No. of ways to arrange vowels =
2!
∴ Total no. of words without changing order of vowels
4! × 3!
= = 72 words.
2!
Ans. (c) 72 words
4!
174. No. of ways in which vowels can be arranged = = 12
2!
No. of ways in which 4 vowels taken as together 6 consonants are arranged = 7!
∴Total no. of words in which 4 vowels and 6 consonants are arranged = 7! × 12 = 60480
Ans. (a) 60480
8!
175. Total words without any restriction =
2!
= 20160
6! ×3!
Total words if vowels comes together =
2!
= 2160
∴ Total words if vowels never
Come together = 20160 − 2160
= 18000
Ans. (b) 18000
176. f(x) = ax + b 3< x < 3
f(3) = 1
∴ a.3 + b = 1 ⇒ 3a + b = 1
f(5) = 7
a.5 + b = 7 ⇒ 5a + b = 7
∴ a = 3, b = − 8
Ans. (a) a = 3, b = −8

Common Proficiency Test (CPT) Volume - II 303

ANSWERS

⎡ x 9 ⎤ (x2 − 9)
177. lt ⎢ − ⎥ = lt
x →3 ⎣ x − 3 x ( x − 3 ) ⎦ x →3 x ( x − 3 )
x+3 3+3
= lt App lt. ⇒ =2
x →3 x 3
Ans. (c) =2
f(2 ) − f( x) 0 − (4 − x 2 ) x2 − 4
178. lim ⇒ ⇒
x →2 x−2 x−2 x−2
lt (x+2) App lt.
x →2

= 2 +2 = 4
Ans. (d) 4
d d
1+ x 1− x − 1− x 1+ x
1− x dy dx dx
179. y = ⇒ =
1+ x dx (1 + x)
1 1
1+ x ( −1) − 1 − x −
⇒ 2 1− x 2 1 + x ⇒ −1− x −1+ x
(1 + x) 2 1 − x 2 .(1 + x)
−1
⇒
(1 + x) 1 − x 2
−1
Ans. (b)
(1 + x) 1 − x 2
d d
x (10 x + log x) − (10 x + log x) x
10 x + log x dy dx dx
180. y = ⇒ =
x dx x
⎛
x ⎜ 10 x log e 10 +
1⎞
(
x
⎟ − 10 + log x
x⎠
1
)
⇒ ⎝ 2 x
x
10 x. log 10 .2 x + 2 − 10 x − log x
2 x 10 x (2 x log 10 − 1) + 2 − log x
⇒
x 2x x
Ans. (a)

304 Common Proficiency Test (CPT) Volume - II

181. Here, considering x 2 as the first function as 2 x as the second function and applying the
method of integration by parts, we may write

x x 2 .2 x 2x
∫2 x 2 dx = − ∫ 2x . dx
log 2 log 2

2 x x2 2 x
= −
log 2 log 2 ∫ x2 dx

2 x x2 2 ⎛ x.2 x 2x ⎞
= −
log 2 log 2
⎜
⎜ log 2
⎝
− ∫
dx ⎟
log 2 ⎟⎠

2 x x2 2 ⎛ x.2 x
⎜ 1 2 x ⎞⎟
= − − .
log 2 log 2 ⎜ log 2 log 2 log 2 ⎟
⎝ ⎠
2 x x 2 x.2 x +1 2 x +1
= − + +c
2 (log 2 )2 (log 2 )3
Ans. (a)
182. let log x =z
1
log x = z
2
1 1
. dx = dz
2 x
log x 2 log x
∴I= ∫ 3x
dx =
3 ∫ 2x
dx

2
=
3 ∫
z dz

=
2 ⎛⎜ z 2
3 ⎜⎝ 2
⎞ z2 1
⎟=
⎟ 3
= log
3
( x )
2
+c
⎠
Ans. (c)
log x 1
183. ∫ x 2 ∫
dx = log x .
x2
dx

Using Integrating by parts

⎛ 1 ⎞
(Note: here (log x) is to be taken as first function and ⎜ 2 ⎟ as second function)
⎝x ⎠

Common Proficiency Test (CPT) Volume - II 305

ANSWERS
1 ⎛ 1⎞ 1 ⎛ 1⎞
∴ ∫ log x. x 2 dx = log x⎜ − ⎟ −
⎝ x ⎠
⎜ − ⎟ dx
x ⎝ x⎠ ∫
1 1
= −
x
log x + ∫ x2 dx

1 1
= − log x − + c
x x
1
= − (1 + log x ) + c
x
Ans. (b)
x2 + 1 2
x ⎡ x −1+ 2 ⎤
184. ∫ e x. dx . = e ⎢ ∫ 2 ⎥
dx
(x + 1)2 ⎢⎣ (x + 1) ⎥⎦

⎡ x2 −1 2 ⎤
= ∫ ex⎢ + ⎥ dx
⎣⎢ (x + 1) (x + 1)2 ⎦⎥
2

⎡ x −1 2 ⎤
= ∫ ex ⎢ + 2⎥
dx
⎢⎣ (x + 1) (x + 1) ⎥⎦

∫ e [f( x) + f′( x)] dx

x
=

x −1
Where f (x) =
x +1
= e x . f (x ) + c

⎛ x −1 ⎞
= e x⎜ ⎟+c
⎝ x +1⎠
Ans. (a)
xe x
185. Let I = ∫ (1 + x )2 dx
1+ x −1 x
∴I= ∫ (1 + x )2 e dx

⎛ 1 1 ⎞ x
= ∫ ⎜⎜⎝ 1 + x − (1 + x )2 ⎟⎟⎠ e dx

306 Common Proficiency Test (CPT) Volume - II

 1 x 1
= ∫ 1+ x e dx − ∫ (1 + x )2 e x dx

∫ (− 1) (1 + X) (1) (e )dx ⎥⎦ − ∫ (1 + x)2

⎡ 1 −2 ⎤ 1
= x
⎢1 + x e −
X
e x dx
⎣

ex 1 1
= + ∫ 2
e x dx − e x dx ∫
1+ x (1 + x) (1 + x) 2

ex
I= +c
1+ x
Ans : (a)
1
186. Given y = x+
x

dy 1
⎡
⎢ ( x )(0 ) − 1 1 ⎤
2 x ⎥⎥
= +⎢
dx 2 x ⎢
⎢⎣
( x) 2
⎥
⎥⎦

1 1
= −
2 x 2x x
1 ⎡ 1⎤
= 1−
2 x ⎢⎣ x ⎥⎦
dy 1 ⎡ x −1⎤
=
dx 2 x ⎢⎣ x ⎥⎦
dy ⎡ 1
∴ 2x = 2x⎢ (x − 1)⎤⎥
dx ⎣2x x ⎦
x 1
= −
x x
1
= x−
x

x2 + 1 + x2 −1
187. Given y=
x2 + 1 − x2 − 1
Multiply Reciprocal of R.H.S. to R.H.S.

Common Proficiency Test (CPT) Volume - II 307

ANSWERS

x2 + 1 + x2 −1 x2 + 1 + x2 − 1
i.e. y = ×
x2 + 1 − x2 −1 x2 + 1 − x2 − 1
2
⎛ x2 + 1 + x2 − 1 ⎞
⎜ ⎟
) [∴ (a + b )(a − b )= a ]
= ⎝ ⎠ 2
− b2
2
( ) (2
x +1 − x −1

=
(x + 1)+ (x − 1)+ 2
2 2
x2 + 1 x2 −1
2
1⎡ 2
= 2x + 2 x2 + 1 x2 −1⎤
2 ⎢⎣ ⎥⎦

= x2 + (x + 1)(x − 1)
2 2

Differentiate on both sides.

dy
= 2x +
1
[( ) (
x 2 + 1 (2 x ) + x 2 − 1 (2 x ) ) ]
dx 2 2
(
2 x +1 x −1 )( )
= 2x +
1
4
[2 x + 2 x + 2 x − 2 x]
3 3

2 x −1
4 x3
= 2x +
2 x4 −1
dy 2 x3
= 2x +
dx x4 −1
Ans. (b)
⎡ 3⎤
⎢ x⎛ x −2 ⎞4 ⎥
188. Given y = log e ⎜
⎢ ⎝ x + 2 ⎟⎠ ⎥
⎢⎣ ⎥⎦

⎡ 3 ⎤
−1
dy 1 ⎢ x 3 ⎛ x −2 ⎞4 ⎛ (x + 2 )(1) − (x − 2 )(1) ⎞⎥
= e ⎜ ⎟ ⎜ ⎟
dx 3 ⎢ 4 ⎜⎝ (x + 2 ) ⎟⎠ ⎜
⎝ (x + 2 )2 ⎟⎥
⎠⎥
⎛ x − 2 ⎞ 4 ⎢⎣ ⎦
e x⎜ ⎟
⎝ x+2 ⎠
3 ⎤
⎛ x −2 ⎞4 x ⎥
+ ⎜ ⎟ e ⎥
⎝ x+2 ⎠
⎦⎥

308 Common Proficiency Test (CPT) Volume - II

 ⎡ −1 3⎤
3 ⎛ x − 2 ⎞ ⎛ x + 2 − x + 2 ⎞ ⎛ x − 2 ⎞
ex⎢ ⎜
4 4⎥
⎜ ⎟+
⎢ 4 ⎝ x + 2 ⎟⎠ ⎜ (x + 2 )2 ⎟ ⎜⎝ x + 2 ⎟⎠ ⎥
⎢⎣ ⎝ ⎠ ⎥⎦
= 3
x⎛ x −2 ⎞4
e ⎜ ⎟
⎝ x+2 ⎠
1 3
−
3 ⎛ x−2 ⎞ 4 ⎡ 4 ⎤ ⎛ x −2 ⎞4
⎜ ⎟ ⎢ 2⎥
+⎜ ⎟
=
4 ⎝ x+2 ⎠ ⎣ (x + 2 ) ⎦ ⎝ x + 2 ⎠
3
⎛ x −2 ⎞4
⎜ ⎟
⎝ x+2 ⎠
1 3
− −
3 ⎡x−2⎤ 4 4
= ⎢x+2⎥ +1
(x + 2 )2 ⎣ ⎦
−1
3 ⎛ x−2 ⎞
= ⎜ ⎟ +1
(x + 2 ) ⎝
2 x+2
⎠
3 ⎛ x+2 ⎞
= ⎜ ⎟ +1
(x + 2 ) ⎝ x − 2 ⎠
2

3
= 2
+1
x −4
3 + x2 − 4 x2 − 1
= =
x2 − 4 x2 − 4
Ans. (a)
189. Given y = xx
Taking log on both sides.
log y = log x x ( )
log y = x. log x
Differenciate on both sides.
1 dy 1
= x. + log x.1
y dx x
dy
= y [1 + log x ] [∴ log e = 1]
dx

Common Proficiency Test (CPT) Volume - II 309

ANSWERS
= y [log e + log x] [log m + log n = log (mn)]
= y [log ex]
= xx [log ex]
Ans. (b)
−x2
190. Given y = xe
taking log on both sides

( )
log y = log x e
−x2

2
log y = e −x log x
differenciate on both sides
1 dy
y dx
2⎛1⎞

⎝x⎠
2
( )
= e −x ⎜ ⎟ + log x e −x ( −2 x)

2 ⎡1 ⎤
= e −x ⎢ − 2 x log x ⎥
⎣ x ⎦
2
dy 2 ⎡ 1 − 2 x log x ⎤
= y.e −x ⎢ ⎥
dx ⎣ x ⎦

dy e −x2 −x 2 ⎛ 1 − 2 x 2 log x ⎞
= x .e ⎜ ⎟
dx ⎜ x ⎟
⎝ ⎠
Ans : (a)
n
191. Sn = [2 a + (n − 1)d ]
2
n
0= [20 + (n − 1)d ]
2
2a
2a = (1 − n)d ⇒ d =
(1 − n)
m
Sn = [2 (a + nd ) + (m − 1)d ]
2
m⎡ 2a 2a ⎤
2 a + 2 n. + (m − 1)
2 ⎢⎣ 1− n 1 − n ⎥⎦

⎡1 − n + 2n + m − 1 ⎤
Sm = ma ⎢ ⎥
⎣ 1− n ⎦

310 Common Proficiency Test (CPT) Volume - II

 (m + n )
= ma
1− n
− ma (m + n)
Sm =
(n − 1)
ma (m + n)
Ans. (b) −
(n − 1)
192. a = m d = n −m Tl = 2m
2m = m+(N − 1)d
m
⇒ 2m − m = (N − 1) (n − m) ⇒ = N−1
n −m
m n +m −m
∴N= +1+
n −m n −m
n
N=
n −m
N n
∴s= [a + l] ⇒ [m + 2m]
2 n −m
3 mn
S=
n −m
3 mn
Ans. (a)
n −m
193. a = − 29
a + 4d = − 15
4d = − 15 + 29 ⇒ d = 14/4 = 7/2
Let n th term be 0
0 = a+ (n −1) d
0 = −29 + (n −1) 7/2⇒ 58/7 = n − 1
∴ n = 9.28 (not possible)
∴ 10th term will be positive
∴ Sum of remaining 31 terms.
31 ⎡ ⎛ 7⎞ 7⎤
S 31 = ⎢ 2 × ⎜ − 29 + 9 × ⎟ + (31 − 1) ⎥
2 ⎣ ⎝ 2⎠ 2⎦

Common Proficiency Test (CPT) Volume - II 311

ANSWERS
31
= [5 + 105 ]
2
31
= × 110 = 1705
2
S 31 = 1705 (Sum of all positive nos.)
Ans. (b) 1705
194. Tn = a + (n − 1) d
1
∴ = a + (m −1)d ...(i)
n
1
= a + (n − 1)d ...(ii)
m
by solving eg. (i) and e.g. (ii)
1 1
a= ,d=
mn mn
mn ⎡ 1 1 ⎤
∴ S mn = ⎢ 2× + (mn − 1) ⎥
2 ⎣ mn mn ⎦
mn ⎡ 1 ⎤ mn ⎡ mn + 1 ⎤
= × ⎢1 + ⎥ ⇒
2 ⎣ mn ⎦ 2 ⎢⎣ mn ⎥⎦

⎡ mn + 1 ⎤
Smn = ⎢ ⎥
⎣ 2 ⎦
1
Ans. (c) (mn + 1)
2
S n n / 2 [12 A + (n − 1)D]
195. =
S ′n n / 2[2 a + (n − 1)d ]
⎡ ⎛ n −1⎞ ⎤
⎢2 ( A + ⎜ 2 ⎟d ⎥
7n + 1 ⎣ ⎝ ⎠ ⎦
=
3n + 2 ⎡ ⎛ n −1⎞ ⎤
2 ⎢a + ⎜ ⎟d ⎥
⎣ ⎝ 2 ⎠ ⎦
Put n = 25
7 × 25 + 1 A + 12 D
=
3 × 25 + 2 a + 12 d

312 Common Proficiency Test (CPT) Volume - II

 T13 176 16
∴ = = ⇒ 16:7
t 13 77 7
Ans. (b) 16:7
a +b
196. A1 = a, G 1 , G 2 , b
2
1
⎛ b ⎞3
∴ b = a(r) 3 ∴r= ⎜ ⎟
⎝a ⎠
3 3
⎡ ⎛ b 1 / 3 ⎞⎤ ⎡ ⎛ b 2 / 3 ⎞⎤
∴ G 13 + G 32 ⇒ ⎢a ⎜ ⎟ ⎥ + ⎢a ⎜ ⎟⎥
⎢⎣ ⎜⎝ a ⎟⎠⎥⎦ ⎢⎣ ⎜⎝ a ⎟⎠⎥⎦
2
⎛b⎞ ⎛b ⎞ ⎛b⎞ ⎡ b⎤
= a 3 .⎜ ⎟ + a 3 ⎜ ⎟ ⇒ a 3 ⎜ ⎟ ⎢1 + a ⎥
⎝a ⎠ ⎝a ⎠ ⎝a ⎠ ⎣ ⎦
1/ 3 2/3
⎛ a +b ⎞ ⎛b ⎞ ⎛b⎞ ⎛ a +b ⎞
= a 2b⎜ ⎟ = a⎜ ⎟ .a ⎜ ⎟ .2⎜ ⎟
⎝ a ⎠ ⎝a ⎠ ⎝a ⎠ ⎝ 2 ⎠
= G 1 . G 2 . 2A = 2A G 1 G 2
Ans. (b) 2A G 1 G 2
a m +1 + b m +1
197. ab = m m
⇒ a m +1 / 2 .b 1 / 2 + a 1 / 2 .b m +1 / 2 = a m +1 + b m +1
a +b
a m +1 − a m +1 / 2 .b 1 / 2 = a 1 / 2 b m+1 / 2 − b m +1

⇒ [ ] [
a m +1 / 2 a 1 / 2 − b 1 / 2 = b m +1 / 2 a 1 / 2 − b 1 / 2 ]
a m +1 / 2
∴ = 1 ∴ m+1/2 = 0 ∴ m = − 1/2
b m +1 / 2
Ans. (a) − 1/2
198. Ans. (c)
199. Value of 1. 4
x = 1.444...
10x = 14.444...
∴ 9x = 13.00 ∴ x = 13/9
Ans. (a) 13/9

Common Proficiency Test (CPT) Volume - II 313

ANSWERS

200. x = 0.35 6
∴ 10x = 3.565656...
1000x = 356.5656...
353
∴ 990x = 353.0 ⇒ x=
990
353
Ans. (c)
990

Model Test Paper – BOS/CPT – 2 / 2007

151. TP +1 = 2 .Tq +1 ⇒ a + (P+ 1 − 1) d = 2 [a+qd]

⇒ a + pd = 2a + 2qd
a = d (P− 2q)
Tp + q +1 a + (P + q )d (P − 2 q )d + (P + q )d
∴ = =
T3 p +1 a + 3Pd (P − 2 q )d + 3Pd

( 2 P − q )d 1
= = ⇒ 1:2
2 ( 2 P − q )d 2
Ans. (a) 1:2
Tm a + (m − 1)d d + (m − 1)d
152. d = a ∴ = =
Tn a + (n − 1)d d + (n − 1)d
d + (1 + m − 1)d m
= = ⇒ m:n
d + (1 + n − 1)d n
Ans. (b) m:n
1 1
153. = a + (m − 1)d & = a+ (n − 1)d
n m
1 1
∴ a= , d=
mn mn
1 1
∴ T mn = a+ (mn −1)d ⇒ +(mn − 1)
mn mn
Tmn = 1
Ans. (a) 1

314 Common Proficiency Test (CPT) Volume - II

 1 1 1
154. + + ..... n terms
2 .5 5 .8 8 .11
1 1
Tn = 3 3
=
[2 + (n − 1) ] [5 + (n − 1) ] (3 n − 1) (3 n + 2 )

1 ⎡ 1 1 ⎤
Tn = −
3 ⎣ 3 n − 1 3 n + 2 ⎥⎦
⎢

1 ⎡1 1 ⎤
∴ Sn = ∑ (Tn) ⇒ −
3 ⎣ 2 3 n + 2 ⎥⎦
⎢

1 ⎡ 3n + 2 − 2 ⎤
⇒ ⎢ ⎥
3 ⎣ 2(3n + 2 ) ⎦

1 3n n
Sn ⇒ =
3 2(3n + 2 ) 2(3n + 2 )
n
Ans. ⇒ (a)
2 (3 n + 2 )
155. 0.004 + 0.02 + 0.1 + ... is 12.5
0 .02
∴ a = 0.004 r= =5
0 .004
12 .500
∴ 12.5 = 0.004 (5) n −1 ⇒ = (5) n−1
0 .004
3125 = (5) n−1 ⇒ 5 5 = 5 n−1
∴ n− 1 = 5⇒ n = 6
Ans. (c) 6
157. C I = 2000 [(1 + 0.0125 ) − 1] 10

C I = 2000 [(1.0125 ) − 1] (Solved by taking log)

10

C I = Rs. 260.12
2
⎛ r ⎞
158. 9P = P ⎜ 1 + ⎟
⎝ 100 ⎠
2
⎛ r ⎞ r
(3) 2 = ⎜ 1 + ⎟ ⇒ 3 = 1+
⎝ 100 ⎠ 100
∴ r = 200%

Ans. (b) 200%

Common Proficiency Test (CPT) Volume - II 315

ANSWERS

159. 101.50 = P [(1+0.03) 2 − 1]

101 .50
P= = 1667
0 .0609
P = 1667
3
∴ S I = 1667 × ×2 = 100 (Approx)
100
Ans. (a) Rs. 100
[
160. C I = P (1 + 0 .05 ) 2 − 1 ]
C I = 0.1025 P
5
SI = P × × 2 = 0.1P
100
C I − S I = 1.50
0.1025P − 0.10P = 1.50
∴ 0.0025P = 1.50
∴ P = 600
Ans. (c) Rs. 600
161. Let average is x
16 ( x − 3 ) + 85
∴x=
17
⇒ 17x = 16x − 48 + 85
x = 37
Ans. (a) 37
d
162. Time from A to B = hrs
20
d
Time from B to A = hrs.
30
d+d 2d
⇒ Average speed = = × 600
d d 50 d
+
20 30
Average speed = 24 km/4.
Ans. (b) 24 km/4

316 Common Proficiency Test (CPT) Volume - II

 d+d+d
163. Average speed =
d d d
+ +
40 30 15
3d
Av. Speed = × 120 = 24 km / H
15 d
Ans (b) 24 km/H
12
164. Time to cover 12 km = = 4 hrs.
3
Time to cover 18 km = 18/9 = 2 hrs.
Time to cover 24 km = 24/4 = 6 hrs.
12 + 18 + 24 54
∴ Av. speed = = = 4.5 km/H
4+2+6 12
Ans. (a) 4.5 km/H
d d 3d
+ +
d
165. Av. speed = 5 2 10 = × 30
d d 3d 17 d
+ +
10 6 10
30
∴ Av. speed = km / H
17
30
Ans. (b) km / H
17
Σx
166. x =
n
Σx = 100 × 50 = 5000
Corrected Σx = (5000 − 50 + 40) = 4990
4990
∴ Corrected x = = 49.90
100
Ans. (b) 49.90
n1 x1 + n 2 x 2 + n 3 x 3
167. x =
n1 + n 2 + n 3
2 × 3 + 3 × 3 + 5x 3
12 =
2+3+5
120 = 15 + 5x 3

Common Proficiency Test (CPT) Volume - II 317

ANSWERS

105
∴ x3 = =21
5
Mean of third group = 21
Ans. (b) 21
168. Made is most frequent value
Ans. (c) Most Frequent Value.
a +b
169. AM =
2
a +b
10 = ⇒ a + b = 20 … (i)
2
am = ab

8= ab ⇒ ab = 64
∴ a (20 − a) = 64
⇒ a 2 − 20a + 64 = 0
(a − 16) (a − 4) = 0
∴ a = 16, b = 4
Ans. (b) 16, 4
170. A frequency distribution can be presented graphically by a Histogram.
Ans. (b) Histogram.
171. Ans. (c) Refer Properties
172. Ans. (a) Refer Properties.
173. Since x and y are connected by the linear relation:
2x + 3y = 4
⇒ y = − 2/3 x + 4/3 → (1)
There is perfect correlation between x and y i.e. r = ± 1
(1) ⇒ x increases, y decreases
Hence, there is perfect negative correlation between x and y
∴ r = − 1.
Ans. (c)
174. Ans. (d) Refer Properties
175. Ans. (b) Refer Properties
176. Ans. (a) Refer Properties

318 Common Proficiency Test (CPT) Volume - II

177. Ans. (a) Refer Properties
178. Ans. (b) Refer Properties
179. Ans. (a) Refer Properties
180. Ans. (a) Refer Properties
181. Let A be the number which is multiply 3 with in 1 to 20
A = {3, 6, 9, 12, 15, 18}
6 3
Probability of A =P(A) = =
20 10
Let B be the number which is multiply 7 with in 1 to 20
B = {7, 14}
2 1
P(B) = =
20 10
∴ Probability of number which is multiple of 3 or 7
P(AUB) = P (A) + P (B) = 3/10 + 1/10 = 4/10 = 2/5
Ans. (b)
182. Let A be the Card drawn King from the pack
P(A) = 4/52
Let B be the card drawn heart from the pack
P(B) = 13/52
P(King and Heart) = P (A ∩ B) = 1/5
Here, A and B are non −mutually exclusive
∴ P (King or Heart) = P(A ∪ B) = P(A) + P(B) − P(A ∩ B)
4 13 1
= + −
52 52 52
16
=
52
4
=
13
But P (neither a king nor a heart) = 1 − P (A ∪ B)
13 − 4 9
= 1 − 4/13 = =
13 13
Ans. (b)

Common Proficiency Test (CPT) Volume - II 319

ANSWERS

183. Total number of balls = 3 Red + 5 yellow + 4 green. Since 3 balls are drawn at Random,
total number of possible outcomes = 12 C 3
Probability of balls drawn contain exactly two green balls.
4 C 2 .8C 1
=
12 C 3
(Since out of Four green balls two green exactly taken 4 C 2 and the remaining one balls
from total number of other two colours).
6 × 8 48 12
= = =
220 220 55
Ans. (a)
184. Let A = event that Husband is selected.
B = event that wife is selected
∴ P(A) = 3/5 and P(B) = 1/5
⇒ P( A ) = 1 − P(A) = 1 − 3/5 = 2/5
P ( B ) = 1 − P(B) = 1 −1/5 = 4/5
Now A B = The event that only Husband is selected.
A B = the event that only wife is selected.
∴ A B ∪ A B = the event that only one of them is selected.
Now A B and A B are mutually exclusive events.
∴ ( )
By Addition thereon P AB ∪ AB = P( AB ) + P( AB )
Also, the interviews of husband and wife are independent experiments.
∴ P( AB ) = P(A) . P( B ) = 3/5 × 4/5 = 12/25
and P( A B ) = P( A ) P(B)
= 2/5 * 1/5 = 2/25
∴ P (only one is selected)
= (
P AB ∪ AB )
= P( AB ) + P( AB )
12 2 14
= + =
25 25 25
Ans. (c)

320 Common Proficiency Test (CPT) Volume - II

185. Balls in first bag = 4 White + 2 Black
Balls in Second bag = 3 White + 5 Black.
The draws from bags are independent.
∴ Required probability = (w1B2 or B1W2)
= (PW 1 ). P(B 2 ) + P(B 1 ) P(W 2 )
4 5 2 3
= . + .
6 8 6 8
26
=
48
13
=
24
Ans. (b)
186. Ans. (b) … Refer Properties
187. Ans. (a) … Refer Properties
188. Ans. (c) … Refer Properties
189. Ans. (a) … Refer Properties
190. Ans. (b) … Refer Properties
192. Probability to get red ball case I
⎛5⎞ ⎛ 4 ⎞
= ⎜ ⎟×⎜ ⎟ (Red ball from 1st bag and also from 2nd)
⎝ 9 ⎠ ⎝ 11 ⎠
20
=
99
Case II If Red ball from 1st bag no t drawn but from 2nd bag Red ball drawn
⎛ 4 ⎞ ⎛ 3 ⎞ 12
= ⎜ ⎟×⎜ ⎟ =
⎝ 9 ⎠ ⎝ 11 ⎠ 99
20 12 32
∴ Total probability = + =
99 99 99
32
Ans. (a)
99
196. Six boys & five girls may sit in such manner
(B) G (B) G (B) G (B)G (B)G (B)
∴ Total No. of ways to sit the girls = 5 !

Common Proficiency Test (CPT) Volume - II 321

ANSWERS

Total No. of ways to sit the boys = 6P6 = 6 !

∴ Total No. of way that they sit
(No. 2 Girls and Boys sit together = 5! × 6! = 120 × 720
= 86400
Ans. (a) 86400
197. If sum of two dice throw is odd
= { (1,2), (1,4) (1,6), (2,1), (2,3) (2,5), (3,2)
(3,4) (4,1), (4,3), (4,5), (5,2), (5,4), (5,6)
(6,1), (6,3), (6,5)}
∴ Probability to get sum as odd
16 16 4
P= 2
= =
(6 ) 36 9

∴ Probability to get sum as even nos.

4 5
= 1 − P(E) = 1 − =
9 9
5
Ans. (b)
9
198. If 0 not selected then total no.of expectation to select two digits
⎛ 9 ⎞ ⎛8⎞
P(E) = ⎜ ⎟ × ⎜ ⎟
⎝ 10 ⎠ ⎝ 9 ⎠
72
P(E) =
90
∴ Probability to get one digit as 0 so product will be zero
72
= 1 − P(E) = 1 −
90
18 1
= =
90 5
1
Ans. (a)
5

322 Common Proficiency Test (CPT) Volume - II

 195 n + 3 P3
199. If x n = −
4 n ! (n + 1) !
195 (n + 1) 195 1
xn = − ⇒ −
4 n ! (n + 1) ! 4n ! n !
After solving we get 4 term will be positive
Ans. (c) 4
1 1 1
200. , , in AP
x + y 2y y + z
1 1
+
1 x+y y+z
∴ =
2y 2
1 y+2+x+y
=
2 y ( x + y ) ( y + z )2
⇒ xy + y2 +xz + yz = 2y 2 + yz + xy
xz = y2
y z
∴ =
x y
∴ x, y, z in GP
Ans. (b) G.P.

Model Test Paper – BOS/CPT – 3 / 2007

151. Let the two numbers are x and y

Given x + y : x − y = 7 : 1
i.e. x + y = 7 → (1)
x − y = 1 → (2)
(1) + (2) ⇒ 2x = 8
x=4
∴ (1) ⇒ 4+y = 7
y = 7− 4 = 3
∴ x:y=4:3
Ans. (b)

Common Proficiency Test (CPT) Volume - II 323

ANSWERS
152. Let the unit's digit of the num ber be x and the ten's digits by y.
Then the number = 10y + x
Reversing the order of digits of the given number
Unit's digit becomes y
and ten's digit becomes x
∴ New number = 10x + y
According to the given condition of the problem
(10 x + y ) − (10 y + x ) = 54
9 x − 9y = 54
x − y=6
i.e. The differences of the digit is 6.
Ans. (c)
153. Let the fraction be x/y
According to the first condition of the problem,
x=y−4
x − y = -4 .................(i)
According to the second condition of the problem,
y+1 = 8(x − 2 )
y+1 = 8x − 16
⇒ 8x − y=1+16
⇒ 8x-y=17 .....................(ii)
subtraction 1 from 2, we get
7x = 21
21
x= =3
7
(i) ⇒ 3 − y = − 4
y=3+4=7
Hence, the required fraction is 3/7
154. Let the present ages of father and his son be x and y years respectively. According to the
first condition of the problem,
x = 6y

324 Common Proficiency Test (CPT) Volume - II

 x − 6y = 0 ..............(i)
Four years hence
Age of father = (x+4) years
Age of son = (y+4) years
According to the second condition of the problem
x+4 = 4(y+4)
x+4 = 4y+16
x – 4y = 16 – 4
x – 4y = 12 ................ (ii)
(ii) – (i) ⇒ 2y = 12
y = 12/2 = 6
(i) ⇒ x – 6(6) = 0
x = 36
Hence, present age of father = 36 years
and present age of son = 6 years
∴Ans.(b)
n(n + 1)
155. Sum of n natural number =
2
105 (105 + 1)
=
2
= 5565
0 .03 ⎛ 3 10 ⎞
156. log = log ⎜ × ⎟
0 .7 ⎝ 100 7 ⎠
⎛ 3 ⎞
= log ⎜ ⎟
⎝ 70 ⎠
= log3 – log 70
= log 3 – (log 7 + log 10)
= 0.48 – (0.84 + 1)
= –1.36
Ans. (c)
4
157. let x = 0 .5173
= (0.5173) 1/4

Common Proficiency Test (CPT) Volume - II 325

ANSWERS

Taking log on both sides

log x = log [0.5173) 1/4

log x = 1/4 log (0.5173)

= 1/4 ( 1 .7138) (from the table)
= 1/4 (– 1 + 0.7138)
= 1/4 (–1–3+3+0.7138)
= 1/4 (–4 + 3.7138)
= –1 + 0.9284
= 1 .9284
∴ x = Anti log ( 1 .9284) = 0.8480
Ans. (a)

3 0 .7214 × 20 .37
158. Let x =
69 .8
Taking log on both sides
log x = 1/3 (log 0.7214+log 20.37– log 69.8)
= 1/3 ( 1 .8581+1.3090–1.8439)
= 1/3 ( 1 .3232)
= 1/3 ( 3 +2.3232)
= 1 + 0.7744
= 1 .7744
∴ x = Antilog ( 1 .7744) = 0.5948
Ans. (b)
159. Here P(O) = 4000
i = 0.06
P(n) = 5353
and we are required to find n.
Since p(n) = (1+i) n × P(0)
⇒ 5353 = (1+0.06) n × 4000
5353
= (1 + 0 .06 )n
4000
(or) 1.3382 = (1.06) n

326 Common Proficiency Test (CPT) Volume - II

 Taking log on both sides.
log (1.3382) = n log (1.06)
0.1265 = n ( 0.0253)
0 .1265
n= =5
0 .0253
Hence, the required number of years is 5
Ans. (b)
23
160. Given log 2 x + log 8 x + log 32 x =
15
1 1 1 23
+ + =
log x 2 log x 8 log x 32 15
1 1 1 23
+ 3
+ =
log x 2 log x 2 log x 25 15
1 1 1 23
+ + =
log x 2 3 log x 2 5 log x 2 15

⎛ 1 1 ⎞ 23
log x 2⎜ 1 + + ⎟ =
⎝ 3 5 ⎠ 15
1 ⎡ 15 + 5 + 3 ⎤ 23
=
log x 2 ⎢⎣ 15 ⎥⎦ 15

1 ⎛ 23 ⎞ 23
⎜ ⎟=
log x 2 ⎝ 15 ⎠ 15
1
=1
log x 2
log 2 x= 1
∴ The value of x = 2
Ans. (c)
161. The no. of ways to arrange n different books if two are always together = (n–1) ! × 2!
(Because two books ta ken together as 1 book)
Ans. (b) (n–1)! ×2!
162. No. of ways to arrange two books (each 3 copies) and 5 book (each 2 copies) = 7!
= 5040
Ans. (a) 5040

Common Proficiency Test (CPT) Volume - II 327

ANSWERS

163. Total No. of words by letters (P, A, R, A, L, L, E, L)

8!
= = 3360
2! 3!

6!
No. of words if all 'L comes together = = 360
2!

∴ Total words if 'L' does not come together

= 3360 – 360 = 3000
Ans. (b) 3000
4!
164. Total no. of 4 digit by (1, 3, 3, 0) = = 12
2!

If 0 comes at thousandth place

3!
then total Nos. = =3
2!

∴ Net 4 digit Nos. by (1, 3, 3, 0) = 12 – 3= 9

(1, 3, 3, 0) each comes at Unit, tenth, hundredth place 2! times.
and 1, 3, 3, each comes at thousandth place 3 times
∴ Sumof digit = 1+3+3+0 = 7
∴ Total sum = 7 × 2 [10 0 + 10 1 + 10 2 ) + 7×3[10 3 ]
= 14×111+21×1000
Total sum = 22554
Ans. (a) 22554
3
166. Let I = ∫x 3 + 5 x 4 dx

Put 3 + 5x 4 = t
20x 3 dx = dt
1
x 3 dx = dt
20
1
∴I = ∫ 3 + 5 x 4 x 3 dx = ∫ t. dt
20

328 Common Proficiency Test (CPT) Volume - II

 1 1/ 2 1 t3 / 2
20 ∫
= t dt = +c
20 3 / 2
1 3/2
= t +c
30

∫x
3
3 + 5 x 4 dy =
1
30
(
3 + 5x4 )
3/2
+c

Ans.(c)
2x +1
167. Let I = ∫ x( x + 1) dx
2x +1
= ∫ x 2 + x dx
= log ( x 2 + x) + c
Ans. (b)
168. Put x =t
∴x=t 2
dx = 2t dt
dx 2 t dt dt
∴∫ =∫ 2 = 2∫
x+ x t +t t +1

= 2 log (t+1) + c
2 log ( )
x + 1 +c

169. Let z = log x

= log(x) 1/2
1
z= log x
2
1 1
dz = . dx
2 x
log x 2 log x
∴∫ dx = ∫ dx
3x 3 2x
2
3∫
= z dz

Common Proficiency Test (CPT) Volume - II 329

ANSWERS

2 ⎡z2 ⎤
= ⎢ ⎥ +c
3⎣z ⎦

z2
= +c
3

∫
log x
3x
1 2
dx = log x +c
3
( )
Ans.(a)
2
170. Let I = ∫x e 2 x dx

Integrating by parts
x2e 2 x 2x 2x
I= −∫ e dx
2 2
x2e 2 x
I= − ∫ xe 2 x dx ................... (i)
2
2x
consider ∫ xe dx

Integrating by parts,
xe 2 x e 2x
= −∫ dx
2 2
xe 2 x e 2 x
= −
2 4
(i) becomes

x 2 e 2 x ⎡ xe 2 x e 2 x ⎤
I= −⎢ − ⎥
2 ⎣ 2 4 ⎦

x 2 e 2 x xe 2 x e 2 x
I= − + +c
2 2 4
Ans.(b)

330 Common Proficiency Test (CPT) Volume - II

 5
x2
171. I = ∫ x 2 + (5 − x)2
dx ... (i)
0

5
(5 − x)2
I= ∫ (5 − x)2 + ( x)2
dx ... (ii) [f(x) = f(a–x)]
0

5
2I = ∫ dx = [x ]50
0

2I = 5
I = 5/2
Ans. (d) None of these
(2 x − 1) 1+ x +1
172. lt .
x→0 1+ x −1 1+ x +1

lt
x →0
(2 x − 1)
x
. lt
x →0
( 1 + x + 1)
App lt.
⇒ log 2 × 2 ⇒ 2 log 2
Ans. (a) 2log 2
| x −1 |
173. lt
x →0 x −1
( x − 1)
RHL … lt =1
x→0 + ( x − 1)
− ( x − 1)
LHL lt = –1
x→0 − ( x − 1)
LHL ≠ RHL ∴ f(x) does not exist
(c) Does not exist
x− | x |
174. f(x) =
x
x−x
RHL lt =0
x →0 + x
x − ( − x) 2x
LHL lt = =2
x →0 − x x
f (0) = 2

Common Proficiency Test (CPT) Volume - II 331

ANSWERS

⇒ RHL ≠ LHL ≠ f(0) ∴ f(x) is not continuous at x = 0

Ans. (b) No.
175. y = log 3 (log 3 x)
dy d d
= log 3 t. (log 3 x)
dx dt dx
1 1 1
= . ⇒
log 3 x. log 3 x. log 3 log x
x. .(log 3 ) 2
log 3
1
=
x. log 3 . log x
1
Ans. (a) =
x. log 3 . log x
176. C I if calculated annually.
⎡⎛ 2 ⎤ 11P
20 ⎞
C I1 = P ⎢⎜ 1 + ⎟ − 1⎥ =
⎢⎣⎝ 100 ⎠ ⎥⎦ 25

C I if calculated semi annually.

⎡⎛ 4 ⎤ 4641
10 ⎞
C I2 = P ⎢⎜ 1 + ⎟ − 1⎥ = P
⎢⎣⎝ 100 ⎠ ⎥⎦ 10000

4641 P 11P 241P

∴ − = 482 ⇒ = 482
10000 25 10000
∴ P = 20,000
Ans. (a) Rs. 20,000
⎡ (1 + i)n − 1 ⎤
177. Value of annuity (A) = P ⎢ ⎥
⎣⎢ i ⎦⎥
⎡ (1 + 0 .09 )3 − 1 ⎤
= 3000 ⎢ ⎥
⎢⎣ (0 .09 ) ⎥⎦
= 9833.33
Ans. (c) Rs. 9833.33

332 Common Proficiency Test (CPT) Volume - II

 10000
178. Present Value of Annuity =
(1 + 0 .05 )10
= Rs. 7724
Ans. (a) Rs. 7724

179. A =
P
i
[ ]
(1 + i)n − 1 ⇒ 45000
0 .06
[(1 + 0.06 ) − 1]
10

750000 [(1 + 0.06 ) − 1]

10
{Solve by taking log}
A = 517500
∴ Surplus = 517500 – 5,00,000
= 17,500
Ans. (c) Rs. 17,500
180. Present value of P (rest) of the annuity.
⎡ 1 − (1 + i) − n ⎤ ⎡ 1 − (1 + 0 .1) −5 ⎤
P =A ⎢ ⎥ ⇒ 2000 ⎢ ⎥
⎣ i ⎦ ⎣ (0 .10 ) ⎦

[
P = 20000 1 − (1 .1) −5 ]
P = 7294 which is less than the Purchase Price.
∴ leasing is preferable.
Ans. (a) leasing is preferable.
181. The sum of deviations of the given values from their Arithmetic Mean is 0.
Ans. (a) Arithmetic Mean
182. The sum of squares of the deviations of the given values from their Arithmetic Mean is
minimum.
Ans. (a) Arithmetic Mean
183. Which is greatly affected by the extreme values – Arithmatic mean
Ans. (a) Arithmetic Mean
184. Which is not amenable to further algebric treatment – Mode and Median
Ans. (d) Both (b) and (c)
a +b
185. = 15 ⇒ a + b = 30 … (i)
2
b – a = 4 – (ii) [By eq (i) & (ii)]
2b = 34 ⇒ b = 17

Common Proficiency Test (CPT) Volume - II 333

ANSWERS

∴ a = 13 lower limit = 13
Ans. (c) 13
186. Ans. (b) Refer Properties
187. Ans. (a) Refer Properties
188. Ans. (c) Refer Properties
189. Given, consumer price index in, (say), period I = 120 and consumer price index in (say),
period II = 215. The wages of the worker in period I and II are given to be Rs. 1,680 and
Rs. 3000 respectively. The real wages of the worker in the current period II with respect
to the period I as base, are given by:
120
Rs. × 3000 = Rs .1674 .42
215
Since this wage (Rs. 1674.42) is less than the wages of the worker in the period I (Viz.
Rs. 1680) the workers is not better off but wors e off R. 5.58 as compared to the period I.
Ans. (a)
190. Purchasing power (P.P) of a rupee in 1994 with respect to the base period 1980 is given
by
100
P.P. of a rupee =
Consumer Pr ice Index for 1994 w.r.t. base 1980
100
= Rs. = Re. 0.40
250
Ans. (a)
191. Let B1 , B 2 and B 3 be the events of drawing a boy from the 1st , 2 nd and 3 rd group
respectively and G 1 , G 2 and G 3 be the events of drawing a girl from the 1st , 2 nd , and 3 rd
group respectively then P (B 1 ) = 1/4, P (B 2 ) = 2/4, P(B 3 ) = 3/4 and P(G 1 )=3/4, P(G 2 ) = 2/4,
P(G 3 ) = 1/4.
The required event of getting 1 girl and 2 boys in a random selection of 3 children can
materialize in the following mutually exclusive cases.
(i) Girl from the first group and boys from the 2nd and 3rd group i.e. the event G 1 ∩ B2
∩ B3
(ii) Girl from the 2 nd group and boys from 1st and 3 rd groups, i.e. the event B 1 ∩ G 2 ∩ B 3
happens.
(iii) Girl from the 3 rd group and boys from the 1st and 2 nd groups. i.e., the event B 1 ∩ B 2
∩ G 3 happens.
Hence by the addition theorem of probability, required probability ρ is given by:
P = P(i) + P(ii) + P(iii)

334 Common Proficiency Test (CPT) Volume - II

 = P (G 1 ∩ B2 ∩ B3 ) + P (B 1 ∩ G 2 ∩ B3 ) + P(B 1 ∩ B2 ∩ G 3 )
= P (G 1 ) P(B 2 ) P(B 3 ) + P(B 1 ) P(G 2 ) P(B 3 ) + P(B 1 ) P(B 2 ) P(G 3 )
3 2 3 1 2 3 1 2 1
= × × + × × + × ×
4 4 4 4 4 4 4 4 4
18 + 6 + 2 26 13
= = =
64 64 32
192. Let P(A) = x
3 3
∴ P(B) = P(A) = x
2 2
1 1 ⎛3 ⎞ 3
and P(C) = P(B) = ⎜ x⎟ = x
2 2 ⎝2 ⎠ 4
The events A, B and C are exhaustive
∴ P (A or B or C) = 1
⇒ P(A) + P(B) + P(C) = 1 ( ∵ A, B, C are mutually exclusive)
3 3
x+ x+ x =1
2 4
⎡4 + 6 + 3 ⎤
x⎢ ⎥ =1
⎣ 4 ⎦
4
∴ x=
13
4
∴ P(A) =
13
Ans. (b)
193. There are 3+4+2+1 = 10 members in all and a Committee of 4 out of them can be formed
in 10C 4 ways. Hence exhaustive number of Cases is:
10 × 9 × 8 × 7
10 C 4 = = 210
4!
The probability 'p' that the Committee Consists of the doctor and at least one economist
is given by
p = P [One doctor, One economist, 2 others]
+ P [One doctor, Two economist, 1 others]
+ P[One doctor, Three economist]

Common Proficiency Test (CPT) Volume - II 335

ANSWERS
1C 1 × 3 C 1 × 6 C 2 1C 1 × 3 C 2 × 6 C 1 1C 1 × 3 C 3
p= + +
10 C 4 10 C 4 10 C 4

1 ⎡⎛ 6×5 ⎞ ⎤
=
210 ⎢⎜ 1 × 3 × 2 ⎟ + (1 × 3 × 6 ) + (1 × 1)⎥
⎣⎝ ⎠ ⎦
1
= [45 + 18 + 1]
210
64 32
= = = 0 .3048
210 105
Ans. (a)
194. Let A = event that the company executive travel by plane.
∴ P(A) = 2/3
Let B = event that the Company executive travel by train.
∴ P(B) = 1/5
Now the events A and B are mutually exclus ive, because he cannot travel by plane and
train at the same time.
∴ The prob. of his traveling by plane or train
Ans. (a)
= P (A or B)
= P(A) + P(B)
= 2/3 + 1/5
13
=
15
Ans. (b)
195. Let A and B denote the events that the contractor will get a 'plumbing' Contract and
'Electric' Contract respectively. Then we are given:
P(A) = 2/3, P( B ) = 5/9
∴ P(B) = 1 P( B ) = 4/9
and P (A ∪ B) = Probability that Contractor gets at least one contract.
= 4/5
⇒ P(A) + P(B) P ( A ∩ B) = 4/5
2/3 + 4/9 P ( A ∩ B) = 4/5
⇒ P (A ∩ B) = 2/3 + 4/9 4/5

336 Common Proficiency Test (CPT) Volume - II

 30 + 20 − 36
=
45
14
=
45
Hence, the probability that the Contractor will get both the contracts in 14/45
Ans. (a)
196. Standard deviation = σ
P ( x > 60 ) = 0 .05
⇒ 1−P (x < 60) = 0.05
∴ P (x < 60) = 0.95
⎡ x − 60 60 − 50 ⎤
∴ P ⎢ ≤ = 0.95
⎣ σ σ ⎥⎦

⎛ 10 ⎞ ⎛ 10 ⎞
∴ P ⎜ ≤ ⎟ = 0.95 ⇒ ϕ ⎜ ⎟ = ϕ (1.64)
⎝ σ⎠ ⎝σ⎠
⎛ 10 ⎞
⇒ σ= ⎜ ⎟ = 6.7 ⇒ S.D. = 6.7
⎝ 1 .64 ⎠
Ans. (a) 6.7
⎛ x − 10 ⎞
197. P ⎜ Z ≥ ⎟ = 0.10
⎝ 20 ⎠
100 − x
∴ = 1.28
20
100 − x = 25.6
x = 74.40
Ans. (c) 74.40
⎛ x − 100 ⎞
198. P ⎜ x ≤ ⎟ = 0.10
⎝ 20 ⎠
x − 100
∴ = 1.28
20
x = 25.6 + 100 = 125.6
Ans. (b) 125.6
200. P = P(x>70)
= 1 − P (x < 70)

Common Proficiency Test (CPT) Volume - II 337

ANSWERS

⎡ x − 65 70 − 65 ⎤
= 1−P ⎢ ≤
⎣ 25 5 ⎥⎦
= 1 − P (z < 1)
= 1 0 − .041
P = 0.06
Ans. (c) 0.06

Model Test Paper – BOS/CPT – 4 / 2007

100 A 100 × 21315

151. P = ⇒
100 + RT 4
100 + 0 .045 ×
12
P = 21000
Ans. (a) Rs. 21000
8
152. I1 = 500 × × 1 = 40
100
8 3
I2 =1000 × × = 60
100 4
8 1
I3 =1000 × × = 40
100 2
∴ Total Amount = 500 + 1000 + 1000+40 + 60 + 60
= 2640
Ans. Rs. 2640
4n
⎛ 5 ⎞
153. 2000 = 1200 ⎜ 1 + ⎟
⎝ 4 × 100 ⎠
4n
⎛ 81 ⎞
5=3 ⎜ ⎟ After taking log both side and solved.
⎝ 80 ⎠
log 5 = log 3 + 4n [log 81 log 80]
n = 10 years 3 months
Ans. (a) 10 years 3 months

338 Common Proficiency Test (CPT) Volume - II

 4
⎛ r ⎞
154. 26500 = 20000 ⎜ 1 + ⎟
⎝ 100 ⎠
After taking log and solving it
r = 7.5%
Ans. (c) 7.5%
⎡⎛ 7 ⎞⎛ 8 ⎞⎛ 85 ⎞ ⎤
155. C I = 7000 ⎢⎜ 1 + ⎟ ⎜1 + ⎟ ⎜1 + ⎟ − 1⎥
⎣⎝ 100 ⎠ ⎝ 100 ⎠ ⎝ 100 ⎠ ⎦
C I = 1776
3 6P
157. I 1 = P × ×2 =
100 100
8 24 P
I2 = P × ×3 =
100 100
10 10 P
I3 = P × ×1=
100 100
Total interest = 1520
40 P 100 × 1520
∴ = 1520 ⇒ P =
100 40
P = 3800
Ans. Rs. 3800 (a)
[
158. A = 7500 (1 + i)n ] [I = 0.01 n = 2]
= 7500 [1+0.01) 2 ⇒ 7500 × (1.01) 2
A = 7650.75
Ans. (a) Rs. 7650.75
159. 512.50 = P [(1 + 0.05 ) − 1]
2

512.50 = P × 0.1025
∴ P = 5000
Ans. (b) Rs. 5000
3
⎡ r ⎤
160. 1331 = 1000 ⎢1 + ⎥
⎣ 100 ⎦
3 3
⎛ 11 ⎞ ⎛ r ⎞ r
⎜ ⎟ = ⎜1 + ⎟ ⇒ 1.1 = 1+
⎝ 10 ⎠ ⎝ 100 ⎠ 100

Common Proficiency Test (CPT) Volume - II 339

 ANSWERS
∴ 0.1 = r / 100 ⇒ r = 10%
Ans. (a) 10%
161. Range = L − S
L … S = 20 → (i)
If each item is increased by 15
Range = (L + 15) − (S + 15)
Range = L − S = 20 [from eg (i)]
Ans. (a) 20
162. Range = L − S
∴ L − S 20
If each item is divided by − 2
L S −1
Range = − = (L − S )
−2 −2 2
−1
Range = × 20 = −10 [(− ) sign ignored]
2
Range = 10
(because it is difference between largest and smallest data)
Ans. (b) 10
164. In grouped frequency distribution, if the class interval is unequal then quartile deviation is
more appropriate.
Ans. (a) Q.D.

165. SD =
∑ d 2 ⇒ (4) 2 =
∑d2 ⇒ ∑d2 = 160
n 10
If each item divided by − 2
160
Corrected ∑ (d ' )2 =
( −2 ) 2
=40

∴ Corrected S.D. = ∑ (d ' ) 2 =

40
=2
n 10
S.D. = 2
Ans. (a) 2

340 Common Proficiency Test (CPT) Volume - II

 (5 + 10 + 15 .......... .... + 125
166. x =
25
25
[2 × 5 + (25 − 1)5 ] 130
2 = = 65
25 2
Average = 65
Ans. (a) 65
167. a, b, c, d, e are five add integers.
a + b + c + d + e a + (a + 2 ) + (a + 4 ) + (a + 6 ) + (a + 8 )
average = =
5 5
⇒ (a + 4)
Ans. (d) a+4
180 + 258 + x
168. Av =
3
438 + x
230 = ⇒ 690 − 438 = x
3
∴ x = 252 he should score 252 runs.
Ans. (d) None of these
( x + 2 )60 + x.120 + ( x − 2 )180
169. 100 =
( x + 2) + x + x − 2
300x = 360x − 240
∴ 60x = 240
x=4
Ans. (a) 4

170. 16 =
∑x ⇒ ∑ x = 400
25

15 =
∑ x1 ⇒ ∑ x1 = 360 ∴Age of Teacher = 400 − 360 = 40
24
Ans. 40 Years
171. Ans. (b) Refer Properties
172. Ans. (b) Refer Properties
173. Given two regression lines are

Common Proficiency Test (CPT) Volume - II 341

ANSWERS

3 x + 2 y = 26 → (1)
6 x + y = 31 → (2)
Since the two lines of regression intersect at the point (x, y ) , replacing x and y by and
respectively in the given regression equation, we get.
(1) ⇒ 2 y = 26 − 3 x
3
y = 13 − x → (3)
2
3
(2) ⇒ 6 x + 13 − x = 31
2
12 x + 26 − 3 x
= 31
2
9 x + 26 = 62
9 x = 62 − 26
= 36
x = 4
3
∴ (3) ⇒ y = 13 − (4)
2
= 13 − 6 = 7
∴ x = 4, y = 7
Ans. (a)
174. Let us assume that 3x + 24 = 26 → (1) represent the regression line of y on x and
6x + y = 31 →(2) represent the regression line of x on y.
(1) ⇒ 2y = 26 − 3x
3
y = 13 − − x
2
3
∴ byx = −
2
(2) ⇒ 6x = 31 − y
31 1
x= − y
6 6
1
∴ bxy = −
6

342 Common Proficiency Test (CPT) Volume - II

 ⎛ 3⎞⎛ 1⎞ 1
∴ r 2 = byx × bxy = ⎜ − ⎟ ⎜ − ⎟ =
⎝ 2⎠⎝ 6⎠ 4
1 1
r= = ± = ± 0 .5
4 2
Ans. (b)
We take the sign of n as negative since bot h the regression coefficients are negative).
175. Ans. (a) Refer Properties
176. Let E 1 , E 2 , E 3 denote the events that the probability is solved by X,Y and Z respectively.
Then we have
P(E 1 ) = 1/3 ⇒ P ( E1 ) = 1 − P (E 1 ) = 2/3 −

P(E 2 ) = 1/4 ⇒ P ( E 2 ) = 1 − P(E 2 ) = 3/4

P(E 3 ) = 1/5 ⇒ P ( E 3 ) = 1 − P(E 3 ) = 4/5

Problem will be solved if at least one of the three is able to solve it. Hence, the required
probability that the problem will be solved is given by P (E 1 ∪ E 2 ∪ E 3 )

= 1 − P ( E1 ∩ E2 ∩ E3 )

= [ ( ) ( ) ( )]
1 − P E1 . P E2 . P E3 )
= 1− 2/3 x 3/4 x 4/5 [Since E 1 , E 2 , E 3 are independent]
= 1 − 2/5 = 3/5
Ans. (c)
1
177. Given P(A) =
2
1
P(B) =
3
1
P (A ∩ B ) =
4
1
P (A ∩ B) 4 1 3 3
∴ P(A|B) = = = × =
P (B) 1 4 1 4
3
Ans. (a)

Common Proficiency Test (CPT) Volume - II 343

 ANSWERS
1 1 1
178. Given P(A) = , P(B) = and P (A ∩ B) =
2 3 4
(
∴ P A ∩ B = P(B) − P) (A ∩ B)
1 1 4 −3 1
= − = =
3 4 12 12
Ans. (c)
1 1 1
179. Given P(A) , P(B) = , P (A ∩ B ) =
2 3 4
( )
P A ∩ B = 1 − P (A ∪ B )
= 1 − {P(A) +P(B) −P (A ∩ B )}
= 1 − P(A) − P(B) + P (A ∩ B )
1 1 1
= 1− − +
2 3 4
12 − 6 − 4 + 3 5
= =
12 12
Ans. (a)
1 1
180. P (A) = ½, P(B) = , P (A ∩ B ) =
3 4
(
= P A∪B = P A∩B ) ( )
= 1 − P (A ∩ B )
= 1− ¼
4 −1 3
= =
4 4
Ans. (b)
181. Given x1 = 1, x 2 =2, x 3 = 3
1 1
P ( x1 ) = , P (x 2 ) = , P (x 3 ) = 1 / 6
2 3
∴ E(x) = x1 P(x 1 ) + x 2 P(x 2 ) + x 3 P(x 3 )
⎛ 1⎞ ⎛ 1⎞ ⎛ 1⎞ 1 2 1
= ⎜1× ⎟ + ⎜ 2 × ⎟ + ⎜ 3 × ⎟ = + +
⎝ 2⎠ ⎝ 3⎠ ⎝ 6⎠ 2 3 2

344 Common Proficiency Test (CPT) Volume - II

 3 + 4 + 3 10 5
= = = = 1 .666 ....
6 6 3
= 1.67
Ans. (c)
182. Given x1 = 1, x 2 = 2 , x 3 = 3
1 1 1
P ( x1 ) = , P ( x 2 ) = , P (x 3 ) =
2 3 6
∴ V(x) = E(x 2 ) … [E(x) ] 2
E(x) = x1P ( x1 ) + x 2 P ( x 2 ) + x 3 P ( x 3 )

⎛ 1⎞ ⎛ 1⎞ ⎛ 1⎞
= ⎜1× ⎟ + ⎜ 2 × ⎟ + ⎜ 3 × ⎟
⎝ 2⎠ ⎝ 3⎠ ⎝ 6⎠
1 2 1
E(x) = + +
2 3 2
3 + 4 + 3 10 5
= = =
6 6 3
( )
E x 2 = x1 P (x1 ) + x 2 P (x 2 ) + x 3 P (x 3 )
2 2 2

⎛ 1⎞ ⎛ 1⎞ ⎛ 1⎞
= ⎜1× ⎟ + ⎜ 4 × ⎟ + ⎜ 9 × ⎟
⎝ 2⎠ ⎝ 3⎠ ⎝ 6⎠
1 4 3
= + +
2 3 2
3 + 8 + 9 20 10
= = =
6 6 3
2
10 ⎛ 5 ⎞
∴ V(x) = −⎜ ⎟
3 ⎝3⎠
10 25
= −
3 9
30 − 25 5
V(x) = = = .5556
9 9
Ans. (a)
183. Let x denote the number of defective lamps.
X can assume the values 0, 1, 2, 3

Common Proficiency Test (CPT) Volume - II 345

ANSWERS

p(X=0) p:probably having 0 bad orange out of 4 bad orange and 3 good orange out of 8
good orange.
4 C 0 × 8 C 3 56
P(x=0) = =
12 C 3 55
4 C 1 × 8 C 2 28
P(x=1)= =
12 C 3 55
4 C 2 × 8 C 2 12
P(x=2)= =
12 C 3 55
P(x=3) = Probability having 3 bad orange out of 4 bad orange and 0 good orange out of 8
good orange.
4 C 3 × 8C 0 1
= =
12 C 3 55
Probability that at least one orange out of three oranges is good = 1 − P (x=3)
= 1 − 1/55
55 − 1 54
= =
55 55
Ans. (a)
184. Given P(A) = 0.5, P (AB) < 0.3
By Addition thereon,
P(A or B) = P(A) + P(B) P (AB)
∴ P(A) + P(B) P(AB) < 1 [∴ P(A or B) < 1]
∴ P(B) < 1 P(A) + P (AB)
<1 0.5 + 0.3
P(B) < 0.8
Ans. (a)
185. Let the given events be A, B and P(A) = 2/3 P(B)
Let P(B) = x
∴ P(A) = 2/3 x
The events A and B are exhaustive
∴ P(A or B) = 1
P(A) + P(B) = 1
⇒ 2/3 x + x = 1

346 Common Proficiency Test (CPT) Volume - II

 5/3 x = 1
x = 3/5
∴ P(B) = 3/5
P(A) = 2/3 x 3/5 = 2/5
P(B) = 3/5 ⇒ odds in favour of B are
3 : 5 − 3 = 3: 2
Ans. (b)
186. Given person variates with parameter = 1
i.e. λ = 1
By the poison distribution
e − λ .λx
p(x) = , x>0
x!
∴ The required probability
P(3 < × <5) = P(x = 4)
e − λ .λ4
=
4!
e −1 (1) 4
=
4!
0 .36783 × 1
=
24
P(3 < x <5) = 0.015326
Ans. (a)
187. Given p = 2% = 2/100 = .02
n = 200
∴ λ = np = 200 × .02 = 4
The probability of at least 5 defective means.
P(x > 5) = 1 − P (x < 5)
= 1 −{P(x=0) + P(x=1) + P(x=2) + p(x=3) + P(x=4)}
⎧ e −4 ( 4 ) 0 e −4 ( 4 )1 e −4 ( 4 ) 2 e −4 ( 4 ) 3 e −4 ( 4 ) 4 ⎫
= 1− ⎨ + + + + ⎬
⎩ 0! 1! 2! 3! 4! ⎭

Common Proficiency Test (CPT) Volume - II 347

ANSWERS

⎧⎪ 4 2 4 3 4 4 ⎫⎪
= 1 − e − 4 ⎨1 + 4 + + + ⎬
⎪⎩ 2! 3! 4! ⎪⎭

⎧ 16 64 256 ⎫
= 1 − e − 4 ⎨1 + 4 + + + ⎬
⎩ 2 6 24 ⎭
= 1 − (0 .183 ) {5 + 8 + 10 .6667 + 10 .667 }
= 1− (0 .83 ) (34 .3334 )
= 1 0 .6283
P (x > 5) = 0.3717
Ans. (a)
188. After a man is dealt 4 spade cards from an ordinary pack of 52 cards, there are 52 − 4 =
48 cards left in the pack, out of which 9 are spade cards and 39 are no spade cards.
Now, 3 more cards can be dealt to the same man out of the 48 cards in 48 C 3 ways, which
determines the exhaustive number of ways.
If none of these 3 additional cards is a s pade cards, then the 3 additional cards must be
drawn out of the 39 non-spade cards, which can be done in 39C3 ways.
The probability that none of the three additional cards dealt to the man is a spade card =
39 C 3
48 C 3
Hence, the required probability, 'P' that at least one of the additional cards is a spade
cards is given by:
39 C 3
p = 1−
48 C 3
39 × 38 × 37 3!
= 1− ×
3! 48 × 47 × 46
13 × 19 × 37
= 1−
16 × 47 × 23
9136
= 1−
17296
= 10.5282
p = 0.4718
Ans. (c)
190. Given P (x = 1) = P (x = 2)
Given x is a poison variable.

348 Common Proficiency Test (CPT) Volume - II

 e − λ (λ )(1) e − λ (λ)( 2 )
∴ =
1! 2!

λ2
λ=
2
λ = 2 = variance
Ans. (b)
65 65
191. P = Q=1− P = 1 −
500 500
435
Q=
500
n = 500
PQ
SE of Proportion of defectives =
n
65 435 1
= × ×
500 500 500
SE = 0.015
Ans. (a) 0.015
σ 0 .75
192. Standard Error of Mean (SE) = =
n 100
SE = 0.075
95% Confidence Limit for population m ean are given by : x ± 1.96 SE
= 5.6 ± 1.96 × 0.75
= 5.6 ± 0.147
The Confidence level are 5.453 and 5.747
Ans. (a) 5.453 and 5.747
σ 4
193. Standard Error (SE) = = = 0 .353
n 128
96% confidence limit for population mean are
⇒ x + 2.05 × SE
= 28 ± 2.05 × 0.353 ⇒ 28 ± 0.72
The confidence level are 27.272 and 28.728
Ans. (b) 27.272 and 28.728

Common Proficiency Test (CPT) Volume - II 349

ANSWERS

65 65 435
194. P = , Q=1− P=1 − ⇒ Q=
500 500 500

PQ
SE of proportion of defectives =
n
65 435 1
= × ×
500 500 500
SE = 0.015
Confidence limits for the population are
= P ± 3 × SE
65
= ± 3 × 0 .015 ⇒ 0.13 ± 0.045
500
Levels are 0.085 and 0.175
or Levels are 8.5% and 17.5%
Ans. (a) 8.5% and 17.5
196. Variance = 4
σ= 4 =± 2
Statement is true
Ans. (a) True
197. n = 10 P = 0.3
∴ Q = (1 − P) = 1 − 0.3 = 0.7
∴σ= npq

∴ Variance = npq = 10×0.3×0.7

Variance = 2.1
Ans. (a) 2.1
198. When the cost of living increases, the standard of living improves.
Ans. (b) false
⎛ σ ⎞
199. The 95% confidence limit for the sample mean (x ) is x ± 1.96 ⎜⎜ ⎟⎟ which is not given
⎝ n⎠
Ans. (b) False

350 Common Proficiency Test (CPT) Volume - II

200. Mean and variance never be equal
∴ Statement is false
Ans. (b) False

Model Test Paper – BOS/CPT – 5 / 2007

151. Let the fraction be x/y. Then according to the given condition of the problem,
3x 18
=
y − 3 11
33x = 18y − 54
33x − 18y+54 = 0
11x − 6y+18 = 0 .................... (i)
x+8 2
and =
2y 5
⇒ 5x + 40 = 4y
5x − 4y+40 = 0 .....................(ii)
(i) × 2 ⇒ 22x − 12y+36 = 0 .....................(iii)
(ii) × 3 ⇒ 15x −12y+120 = 0 .... ................(iv)
(iii) − (iv),we get
7x − 84 = 0
7x= 84
x = 84/7 = 12
(i) ⇒ (11) (12) − 6y + 18 = 0
132 − 6y + 18 = 0
6y = 150
y =150/6 = 25
Hence, the required fraction is 12/25
∴Ans. (c)
152. Let the two numbers are x and y
Given x + y = 150 % of y

Common Proficiency Test (CPT) Volume - II 351

ANSWERS
150
= ×y
100
x + y = 1.5y
x = 0.5 y
1
x = y
2
Ans. (a)
153. Let three consecutive even numbers are x, x + 2, x + 4.
3
Given condition is x + (x+2) + (x+4) = 60 × − 15
4
3x + 6 = 30
3x = 24
24
x= =8
3
∴ The middle number = x + 2 = 8 + 2 = 10
Ans. (b)
154. Suppose my present age is x years and my sons present age is y years
Five years ago
my age = (x − 5) years
my son's age = (y − 5) years
According to the first condition of the problem,
x − 5= 3(y − 5)
x − 5 = 3y − 15
⇒ x 3y = 15 + 5
⇒ x − 3y = − 10 .................(i)
Ten years later
my age = (x+10) years
my son's age = (y+10) years
According to the second condition of the problem,
x+10 = 2(y+10)
x+10 = 2y+20
x-2y = 20 − 10

352 Common Proficiency Test (CPT) Volume - II

 x − 2y = 10 ..................(i i)
(i) − (ii)⇒ y = 20
(i) ⇒ x – 60 = –10
x = 60 –10 = 50
Hence, my presence age = 50 years
and my son•s present age = 20 years
∴Ans.(a)
155. The compound ratio of 4:3, 9:13, 26:5 and 2:15 is
4 × 9 × 26 × 2
=
3 × 13 × 5 × 15
16
=
25
Ans. (b)
n!
156. We know nPr =
(n − 4 ) !
56 !
∴ 56 Pr + 6 =
{56 − (r + 6 )}!
56 !
=
(50 − r )!
54 !
54 Pr + 3 =
{54 − (r + 3 )}!
54 !
=
(51 − r )!
56 Pr +3 56 ! (51 − r )!
Thus, = ×
54 Pr +3 (50 − r )! 54 !
56 × 55 × 54 ! (51 − r ) (50 − r )!
= ×
(50 − r )! 54 !
56 × 55 × (51 − r )
=
1
But we are given the ratio as 30800 : 1
56 × 55 × (51 − r ) 30800
∴ =
1 1

Common Proficiency Test (CPT) Volume - II 353

ANSWERS
30800
(or) (51 – r)! = = 10 ∴ r = 41
56 × 55
Ans. (b)
157. He can arrange his schedule in
8P6 = 8 × 7 × 6 × 5 × 4 × 3
= 20160 ways.
Ans. (b)
158. The two Indians can stand together in 2 P 2 = 2! = 2 ways.
So is the case with the two Americans and the two Russians.
Now these 3 groups of 2 each can stand in a row in 3 P 3 = 3×2 = 6 ways. Hence by the
generalized fundamental principle, the total num ber of ways in which they can stand for a
photograph under given conditions is
6 × 2× 2× 2 = 48
Ans. (c)
159. This is the number of combination of 52 cards taken five at a time.
Now applying the formula.
52 !
52C 5 =
5!(52 − 5 )!
52 !
=
5! 47 !
52 × 51 × 50 × 49 × 48 × 47 !
=
5 × 4 × 3 × 2 × 1 × 47 !
= 2598960
Ans. (a)
160. Let the unit's digit of the number be x and the ten's digit by y. Then
x + y = 9 → (1)
and the number = 10y + x
Reversing the order of digits of the given number,
Unit's digits becomes y
and ten's digits becomes x
∴ Now number = 10x + y
According to the given condition of the problem,

354 Common Proficiency Test (CPT) Volume - II

 (10x + y) – (x+10y) = 27
10x + y – x – 10y = 27
9x – 9y = 27
x – y = 3 → (2)
Adding (1) and (2), 23 get
2 × = 12
12
x= =6
2
(1) ⇒ 6 + y = 9
y=9–6=3
∴ The given number is 36
Ans. (b)
⎡ (9 x − 1) − (3 x − 1) ⎤
x
9 −3 x ⎢ ⎥
161. lt ⇒ lt ⎢ x x ⎥
x
x →0 4x − 2x x →0 ⎢ ( 4 − 1) − (2 − 1) ⎥
⎢⎣ x ⎥⎦

⎡ ⎛ 9 x −1 ⎞ ⎛ 3 x −1 ⎞ ⎤
⎢ ⎜⎜ ⎟−⎜
⎟ ⎜
⎟⎥
⎟
⎢⎝ x ⎠ ⎝ x ⎠ ⎥ log 9 − log 3
lt ⎢ ⎥ ⇒
x x
x →0 ⎛ 4 − 1 ⎞ ⎛ 2 − 1 ⎞ log 4 − log 2
⎢⎜ ⎟−⎜ ⎟⎥
⎜ ⎟ ⎜
⎢⎝ x ⎠ ⎝ x ⎠ ⎥ ⎟
⎣ ⎦
2 log 3 − log 3 log 3
⇒ =
2 log 2 − log 2 log 2
log 3
Ans. (a)
log 2

(5 x − 1) 2 5 2 x − 2 .5 x + 1
162. lt =
x →0 log (1 + x) log (1 + x)

⎛ 25 x − 1 ⎞ ⎛ 5 x − 1 ⎞
⎜ ⎟ ⎜ ⎟
(25 x − 2 .5 x + 1) ⎜ x ⎟ − 2⎜ x ⎟
⇒ lt ⇒ lt ⎝ ⎠ ⎝ ⎠
x →0 log (1 + x) x →0 log(1 + x)
x
App lt.

Common Proficiency Test (CPT) Volume - II 355

ANSWERS
log 25 − 2 . log 5 log 25 − log 25
⇒ = =0
1 1
Ans. (d) None of these
163. lt f(x) ⇒ lt (x+1)
x→1 x→1

App lt.
⇒1+1=2
Ans. (a) 2
164. LHL lt (x – 1)
x →2

App lt.
⇒ 2 – 1 = 1 ∴ LHL = 1
RHL lt (2x – 3)
x →2

App. lt.
LHL 2.2 – 3 = 1
f(2) = 2.2 – 3 = 1 ∴ LHL = RHL = f(2)
∴ f(x) Continuous at x = 2
Ans. (a) Continuous x = 2
2
3x + 2x + 7 3x2 + 2x + 7
165. f(x) = =
x2 − 3x + 2 ( x − 2 ) ( x − 1)
To be continuous (x – 2) ≠ 0 & (x – 1) ≠ 0
∴x ≠ 2&x ≠ 1
∴ Points of discontinuity = 1, 2
Ans. (a) 1, 2
166. Let z = log x
1
dz = dx
x
dx = x dz
1 1
∴I= ∫ x log x dx = ∫ x.z xdz
1
= ∫z dz

356 Common Proficiency Test (CPT) Volume - II

 = log z
= log (log x) + c
Ans. (b)
x
167. Let I = ∫ log10 dx

x e
= ∫ log e . log10 dx
= log10e ∫ log x.1 dx

e ⎡ 1 ⎤
= log10 ⎢log x.x − x × dx⎥
⎣ ⎦ ∫
I= e
log10 [x log x − x] + c
4 e x + 6e −x
168. Let I = ∫ 9e x − 4 e −x dx

4e 2x + 6
∴ I= ∫ 9e 2 x − 4 dx
Let t = e 2 x
∴ dt = 2 e 2 x dx
= 2t dx
4 t + 6 dt 2t + 3
∴I= ∫ 9t − 4 2t
= ∫
t (9 t − 4 )
dt

⎡ 0+3 2 (4 / 9 ) + 3 ⎤
= ∫ ⎢⎣ t(0 − 4 ) + 4 / 9(9 t − 4 )⎥⎦ dt
⎡ 3 35 ⎤
= ∫ ⎢⎣− 4 t + 4 (9 t − 4 )⎥⎦ dt
3 35 log(9 t − 4 )
= − log t + . +c
4 4 9

= −
3
4
log e 2 x +
35
36
(
log 9 e 2 x − 4 + c )
Ans. (a)
169. Let x = 2 Sin 2 θ +Cos 2 θ
dx = [4 Sin θ Cos θ + 10 Cos θ ( – Sin θ)] dθ

Common Proficiency Test (CPT) Volume - II 357

ANSWERS
dx = – 6 Sinθ Cos θ dθ

5 * (2 Sin 2 θ + 5 Cos 2 θ)
∴ I= ∫ (− 6 Sin θ Cos θ dx )
(2 Sin 2 θ + 5 Cos 2 θ − 2 )

5 (1 Cos 2 θ + 2 Sin 2 θ)
= ∫ (− 6 Sin θ Cos θ dx )
5 Cos 2 θ + 2 (1 − Sin 2 θ)

3 Sin 2 θ
= –6 ∫ 3 Cos 2 θ
. Sin θ Cos θ d θ

Sin θ
= –6 ∫ Cos θ . Sin θ Cos θ dθ
= – 6∫ Sin 2 θ d θ

⎡ 1 − Cos 2 θ ⎤
= –6 ∫ ⎢ ⎥ dθ
⎣ 2 ⎦
Sin 2 θ ⎤
= – 3 ⎡⎢θ −
⎣ 2 ⎥⎦
= 3 Sin θ Cos θ … 3 θ
= 3 Sin θ . 3 Cos θ − 3 θ

x−2
I= 5 − x . x − 2 − 3 Cos −1 +c
3
Ans. (c)

170. Put x 2 − 6 x + 100 = t

∴ x 2 − 6 x + 100 = t 2
(2x – 6) dx = 2t dt
(x – 3) dx = t dt

∫ (x − 3) x 2 − 6 x + 100 dx = ∫ x 2 − 6 x + 100 ( x − 3 ) dx

= ∫ t.tdt
2
= ∫t dt

358 Common Proficiency Test (CPT) Volume - II

 t3
= ∫ 3
+c

1 2 x
= ( x − 6 + 100 ) 3 / 2 + c
3
Ans. (c)
171. No. of ways in which one or more friends may invited
= 6 C1 + 6 C 2 + 6 C 3 + 6 C 4 + 6 C 5 + 6 C 6

= 2 6 − 1 = 63 ways.
Ans. (a) 63 ways.
172. No. of ways of failure of candidate.
= 4 C1 + 4 C 2 + 4 C 3 + 4 C 4

= 2 4 − 1 = 15 ways.
Ans. (c) 15
173. A voter can vote in the following ways
254 = n C1 + n C 2 + n C 3 + n C 4 + n C 5 + n C 6 + n C 7 .... n C n −1

∴ 254 = 2 n − (n C n + 1) = 2 n − (1 + 1)

∴ 256 = 2 n
∴ 2 8 = 2 n ⇒ ∴ n = 8 Total candidate s = 8
Ans. (a) 8
174. No. of words of 3 consonants and 2 vowels among 17 consonants and 5 vowels are
= 17 C 3 × 5 C 2 × 5 !

= 816000
Ans. (b) 81,6000
176. The present value of annual profit
V = A.P. (ni)
= 34000 × 3.7079
V = 128886 which is less than initial cost of machine. Machine must not be purchased
Ans. (a) Machine should not be purchased.

Common Proficiency Test (CPT) Volume - II 359

ANSWERS
r
177. 40 = 2000 × ×4
100
∴ r = -0.5%
Ans. (b) 0.5%
4
178. I1 = 2000 × × 1 = 80
100
14
I2 = 3000 × × 1 = 420
100
Total Interest = 500
500 × 100
∴ rate of interest = = 10%
5000 × 1
r = 10%
Ans. (a) r = 10%
R R
179. I1 – I 2 = 30 ⇒ 1200 × × 3 – 1000 × 3 =30
100 100
⇒ 36R – 30R = 30
6R = 30
∴ R = 5%
Ans. (c) 5%
2
180. 40 = 2000 × ×n
100
n = 1 yr.
Ans. (a) = 1 yr.
a +b
181. = 20 ⇒ a + b = 40 → (1)
2
a −b
SD = 5 → =5
2
∴ a … b = 10 → (2)
⇒ 2a = 50 ⇒ a = 25
∴ b = 15
Ans. (a) 25, 15

360 Common Proficiency Test (CPT) Volume - II

182. Mean =
∑x
n
1+ 2 + 6 + a + b
4.4 =
5
∴ a + b = 13 → (1)

σ2 =
∑ x2 − x2
N

8.24 =
∑ x 2 − ( 4 .4 ) 2
5

∑ x2 = 138

1 + 4 + 9 + a 2 + b 2 = 138
∴ a 2 + b 2 = 138 ⇒ a 2 + (13 – a) 2= 138
⇒ a 2 – 13a – 36 = 0 a = 9, 4
∴ Nos → 9, 4
th
⎛ N +1⎞
183. For individual series, the rank of the median is = ⎜ ⎟ term
⎝ 2 ⎠
th
⎛ N +1⎞
Ans. (b) ⎜ ⎟ term
⎝ 2 ⎠
184. Rank of the median of the series 2, 3, 4, 5, 6, 7
th th
⎛ N +1⎞ ⎛ 6 +1⎞
= ⎜ ⎟ term = ⎜ ⎟ term
⎝ 2 ⎠ ⎝ 2 ⎠
= 3.5 th term
Ans. (a) 3.5
185. Regression Eq. 2x + 3y – 10 = 0
If y = 50
∴ 2x = +10 – 3 × 50 = – 140
x = – 70
None of these
Ans. (d) None of these.

Common Proficiency Test (CPT) Volume - II 361

ANSWERS

186. Ans. (c) Refer Properties

187. Ans. (c) Refer Properties
188. Given r (x, y) = 0.4 → (1)
a ×c
We know that r (a X, cY) = .r ( x, y ) → (2)
| a | ×| c |
Using (2) in (1), we get
r (2x, – y) = r (2x, – 1y)
2 × ( −1)
= .r ( x, y )
| 2 | × | −1 |
− 2 × 0 .4
=
2 ×1
r (2x, – y) = – 0.4
Ans. (b)
189. Computation of Correlation Coefficient
x y xy x2 y2
69 70 4830 4761 4900
85 87 7395 7225 7569
Total 154 157 12225 11986 12469
154 157
x= = 77 , y = = 78 .5
2 2

Cov (x,y) =
∑ x iy i – xy =
12225
– (77) (78.5)
n 2
= 68

∑ x i2 − x 2 =
11986
− (77 ) 2
Sx = n 2

= 8

Sy =
∑ y i2 − y 2 =
12469
− (78 . 5 ) 2 = 8 .5
n 2
Cov (x, y ) 68 68
∴ n= = = =1
Sx Sy 8 × 8 .5 68

Ans. (a)

362 Common Proficiency Test (CPT) Volume - II

190. Computation of correlation Co – efficient.
x y xy x2 y2
102 50 5100 10404 2500
109 48 5232 11881 2304
Total 211 98 10332 22285 4804

211 98
x= = 105 .5 , y = = 49
2 2

Cov (x, y) =
∑ xi yi − x y = 10332 − (105 .5 ) (49 )
n 2
= 5166 – 5169.5 = – 3.5

Sx =
∑ xi2 − x 2 =
22285
− (105 .5 )2 = 3 . 5
n 2

Sy = Sx =
∑ yi2 − y 2 =
4804
− (49 )2 = 1
n 2
Cov (x, y ) − 3 .5
∴ n= = = −1
Sx Sy (3 .5 )× (1)
Ans. (b)
191. Ans. (a) … Refer Properties
192. Ans. (a) … Refer Properties
193. Ans. (b) … Refer Properties
194. Given X ~ N ( μ, σ2), where μ = 2 and σ2 = 9
σ=3
We want x so that
P(2 < × < x) = 0.4115 → (1)
x −μ 2 −2
When X = 2, Z = = =0
σ 3
x−2
When x = x, Z = = Z1 (Say) → (2)
3
From (1), we get P (0 < Z < Z 1 ) = 0.4115
⇒ Z 1 = 1.35 (from Normal Table)

Common Proficiency Test (CPT) Volume - II 363

ANSWERS
Substituting in (2), we get
x−2
= 1.35
3
∴ x = 2+3 (1.35)
x = 6.05
Ans. (b)
195. Mean = First moment about origin = 35 (given) → (1)
Second moment about 35 = 10 (given)
⇒ Second moment about mean = 10
μ2 = 0 → (2)
Since the given distribution is normal,
β1 = 0 and β2 = 3
μ32
∴β1 = = 0 ⇒ μ3 = 0
μ23
μ4
β2 = 2
= 3 ⇒ μ4 = 3 μ 22 = 3×10 2 = 300
μ2
∴ μ1=0 (always), μ2 = 10, μ3 = 0, μ4 = 300
Ans. (c)
196. The most commonly used confidence limit is → 95%
Ans. (c) 95%
197. Sample mean is statistic
Ans. (b) Statistic
198. Deliberate sampling is – Non \random sampling
Ans. (b) Non random sampling
199. Stratified random sampling issued for Non – Homogeneous population.
Ans. (b) Non – homogeneous
200. Random Sampling is also called lottery sampling
Ans. True

364 Common Proficiency Test (CPT) Volume - II

 Model Test Paper – BOS/CPT – 6 / 2007

151. Let g iven number is x

1 ⎛ 1 ⎛ 1 ⎞⎞
Then the condition ⎜ ⎜ x ⎟ ⎟ = 15
5 ⎜⎝ 3 ⎝ 2 ⎠ ⎟⎠
x
= 15
30
x = 450
152. Let the number be = x.
3⎛1 ⎞
Then given the condition = ⎜ x ⎟ = 60
4⎝5 ⎠
3x
= 60
20
60 × 20
x= = 400
3
Ans. (b)
153. Let the number be x.
4 ⎡3 ⎤
Given (x ) = 24
5 ⎢⎣ 8 ⎥⎦
3
x = 24
10
10
x = 24 × = 80
3
250
∴ 250% of x = 250% of 80 = × 80 = 200
100
Ans. (d)
154. Let the number be x
Given condition x + x 2 =182

x 2 + x − 182 = 0
(x + 14 ) (x − 13 )= 0
x = −14 , x = 13
∴ x = 13 (negative reflected)

Ans. (a)

Common Proficiency Test (CPT) Volume - II 365

ANSWERS

155. Let the unit's digit of the number be x and ten's digit by y
Then x + y = 12 → (1)
and the number = 10y + x
Reversing the order of digits of the given number,
Unit's digit becomes y
and ten's digits becomes x
∴ New number = 10 x + y
According to the given condition of the problem (10x + y) – (x + 10y) = 18
9x – 9y = –18
x – y = – 2→ (2)
Adding (1) and (2) ⇒ 2x = 10
x=5
∴ ⇒y = 7
∴ The number is 75
Ans. (a)
156. Let the number of coins is x
14 18
Given 10 x + x + x = 430
2 4
40 x + 28 x + 18 x
= 430
4
86 x
= 430
4
430 × 4
x= = 20
86
∴ The one Rupee coins = 10x = 10×20 = 200
The 50 paise coins = 14x = 14×20 = 280
The 25 paise coins = 18x = 18×20 = 360
Ans. (a)
157. First Vessels Contain Milk Ratio 5
First Vessels Contain Water Ratio 2

366 Common Proficiency Test (CPT) Volume - II

 Second Vessels Contain Milk Ratio 6
Second Vessels Contain Water Ratio 1
Both the Vessels Milk = 5 + 6 = 11
Both the Vessels Water = 2 + 1 = 3
∴ The new Ratio = 11:3
Ans. (b)
158. Let the two numbers are x and y
Given 8x = 5y → (1)
and x + 27 = y → (2)
(2) ⇒ x = y – 27
(1) ⇒ 8 (y – 27) = 5y
8y – 216 = 5y
3y = 216
216
y= = 72
3
∴ x = 72 – 27 = 45
∴ Sum of two number = x + y = 72 + 45 = 117
Ans. (c)
159. Let their monthly incomes be Rs. 9x and Rs. 7x respectively.
Let their monthly expenditures be Rs. 4 y and Rs. 3 y respectively.
According ot the given condition of the problem,
9x – 4y = 200 → (1)
7x – 3y = 200 → (2)
Multiply (1) by 3, we get
27x – 12y = 600
Multiply (2) by 4, we get
28x – 12y = 800
Subtracting (3) from (4), we get
x = 200
Hence their monthly income are Rs. (9×200=1800) and Rs. (7 × 200 = 1400).
Ans. (a)

Common Proficiency Test (CPT) Volume - II 367

ANSWERS

160. Let x be the distributed amount of A, B and C

Given
∴ 5x + 11x + 3x = 950
19x = 950
950
x= = 50
19
∴ The amount of A = 5x = 5 × 50 = 250
The amount of B = 11x = 11 × 50 = 550
∴ The difference of A and B = 300
Ans. (a)
e − x − e −1 e 1− x − 1
161. lt ⇒ lt
x →1 x −1 x →1 e ( x − 1)

let 1 + h → x where h → 0
e h −1 −1
∴ lt =
x →0 e ( −h) e
Ans. (b) –1/e
(1 + x)n − 1
162. lt
x →0 x
n(n − 1) x 2
(1 + nx + + ......) − 1
= lt 2!
x →0 x
⎡ n(n − 1) x n(n − 1)(n − 2 ) x 2 ⎤
x ⎢n + + ...... ⎥
⎣⎢ 2! 3! ⎦⎥
= lt
x →0 x
App Lt.
n+0=n
Ans. (c) n
( x + 2 ) 5 / 3 − (a + 2 ) 5 / 3
163. lt
x →0 x−a
( x + 2 ) 5 / 3 − (a + 2 ) 5 / 3
lt
x →0 [(x + 2 ) − (a + 2 )]
App lt.

368 Common Proficiency Test (CPT) Volume - II

 5 5
⇒ .(a+2) 5/3 – 1 = (a+2) 2/3
3 3
5
Ans. (a) (a+2) 2/3
3
2x − 3x (2 x − 1) − (3 x − 1)
165. lt ⇒ lt
x →0 x x →0 x
2x −1 3x −1 ⎡ a x −1 ⎤
lt – lt ⎢ lt = log e a ⎥
x →0 x x →0 x ⎢⎣ x →0 x ⎥⎦
⇒ log 2 – log 3
⎛2⎞
⇒ log ⎜ ⎟
⎝3⎠
Ans. (b)
166. f ′(x ) = 3 x 2 + 2

∫ f′(x ) dx = ∫ (3 x )
2
+ 2 dx

3 x3
f (x ) + c = + 2x + c
3
When f (0) = 0 ⇒ c = 0
∴ f(x) = x 3 + 2 x
∴ f(2) = 2 3 + 2 (2)
= 8 + 4 = 12
Ans. (c)
x+3
167. Let I = ∫ x2 + 6 x + 4
Put x2 +6x+4 = t
∴(2x+6)dx = dt
dt
(x+3)dx =
2
x+3 dt
∴∫ 2
dx = ∫
x + 6x + 4 2t
1 1
2∫t
= dt

Common Proficiency Test (CPT) Volume - II 369

ANSWERS
1
log(t)
2
x+3 1
∴∫ 2
dx = log(x 2 +6x+4) + c
x + 6x + 4 2
x x −1 x +1− 2 x
168. ∫e ( x + 1) 3
dx = ∫
( x + 1) 3
e dx

x⎡ 1 2 ⎤
= ∫e ⎢ 2
− 3⎥
⎣ ( x + 1) ( x + 1) ⎦
dx

∫ e {f( x) + f ' ( x)}dx

x
=

1
= e x f(x) where f(x) =
( x + 1) 2

x ( x − 1) ex
∫e ( x + 1) 3
dx =
( x + 1) 2
+c

Ans.(a)
(3 x + 5 )4 +1
∫ (3 x + 5 )
4
169. dx = +c
(4 + 1) (3 )

=
(3 x + 5 )5 + c
15
Ans. (b)
170. ∫ 7 x + 5 dx

1
= ∫ (7 x + 5 )2 dx

=
(7 x + 5 )2 +1 + c
⎛1 ⎞
⎜ + 1⎟ (7 )
⎝2 ⎠
3

=
(7 x + 5 )2 +c
⎛3⎞
⎜ ⎟ (7 )
⎝2⎠

370 Common Proficiency Test (CPT) Volume - II

 3
2 (7 x + 5 )2
+c
21
171. Voter has option
(i) Two candidates from gentlemen = 3 c 2 = 3

(ii) Two candidates from ladies = 3 c 2 = 3

(iii) One from each ladies & gentlemen = 3 c 1 × 3 C 1 = 9

Total options = 3 + 3 + 9 = 15
Ans. (c) 15
172. Total hand shakes in the party = 40 c 2 = 780

Ans. (a) 780

173. Total triangle formed by m sides = m C 3

m(m − 1)(m − 2 )(m − 3 )!

⇒
(m − 3 )! 3!
m(m − 1)(m − 2 )
⇒
6
m(m − 1)(m − 2 )
Ans. (a)
6
174. Cricket team of 11 among 14 players out of which one wicket keeper
= 12 C10 × 2 C1 = 66 ×2

⇒ 132
Ans. (b) 132
175. No. of ways in which a particular child goes to circus = 7 C 2 ×1 = 21

Ans. (c) 21
176. ax = by = cz = k (let )
∴ log a k = x, log b k = y, log c k = z
∴ log ka = 1/x, log kb = 1/y, log kc = 1/z
x, y, z in GP
∴ y 2 = xz
(log b k)2 = (log a k).(log c k)

Common Proficiency Test (CPT) Volume - II 371

ANSWERS

log b k log c k log k a log k b

∴ = ⇒ =
log a k log b k log k k log k c
∴ log a , log b and log c in GP
Ans. (b) G.P.
n −1 13 n −1
1 ⎛1⎞ ⎛1⎞ ⎛1⎞
177. = 8 .⎜ ⎟ ⇒ ⎜ ⎟ = ⎜ ⎟
1024 ⎝2⎠ ⎝2⎠ ⎝2⎠
∴ n = 14
6th team from end = (14 – 6+1) from beginning = 9th term
9 −1 8
⎛1⎞ ⎛1⎞ 1
T9 = 8 .⎜ ⎟ = 8 .⎜ ⎟ =
⎝2⎠ ⎝2⎠ 32
Ans. (c) 1/32
178. Product of 2nd term from start & last 2nd term from end = (ar) × a(r) n…2= a 2 r(n…1)
Product of first & last term = a × ar n −1 = a 2 r n −1
Hence proved the statement. It is true statement
Ans. (a) True
179. a, b, c in GP ∴ b 2 = ac
a +b
a, x, b in AP ⇒ x =
2
b+c
b, y, c in AP ⇒ y =
2
a c 2a 2c 2[ab + ac + ac + bc ]
∴ + = + ⇒
x y a +b b +c ab + b 2 + ac + bc
2[ab + ac + ac + bc ]
⇒ {b 2 = ac }
ab + ac + ac + bc
=2
Ans. (c) 2
a +b b +c
+
1 1 x+y
180. + = ⇒ 2 2
x y xy ( a + b ) (b + c )
4
2(a + 2b + c ) 2(a + 2b + c )
⇒ 2
=
(ab + b + ac + bc ) ab + b 2 + b 2 + bc

372 Common Proficiency Test (CPT) Volume - II

 2 (a + 2 b + c ) 2
= =
b (a + 2 b + c ) b
2
Ans. (b)
b
181. The number of times a particular item occurs in a given data is called its frequency.
Ans. (b) Frequency
182. Lower class (s) = 10.6
Width = 2.5 (Class interval)
Upper Class (L) of Ligh t est Class
= S = 10 × C.I.
= 10.6 + 10 x 2.5
= 35.6
Ans. (a) 35.6
Lower Class + Upper Class
183. = Mid Value
2
L + U.Class
=m
2
∴ Upper class = (2m – L)
Ans. (c) (2m – L)
1 .x + 2 .2 x + 3 .3 x + .... n.nx
184. Mean =
n(n + 1).x / 2

(12 + 2 2 + 3 2 + ...... n 2 ) x
=
n(n + 1).x / 2

(12 + 2 3 + 3 2 + ...... n 2 ) x
=
n(n + 1).x / 2
n (n + 1)(2 n + 1) x × 2 (2 n + 1)
= =
6 n(n + 1) − x 3
(2 n + 1)
Mean =
3
2n + 1
Ans. (c)
3

Common Proficiency Test (CPT) Volume - II 373

ANSWERS

185. x = 10, n = 4
Σx = n. x = 4 × 10 = 40
Corrected Σx = (40 + 4a)
40 + 4 a
Corrected x =
4
40 + 4 a
13 =
4
4a = 12
a=3
Ans. (c) 3
186. From the given data, we observe that
20 + 5 = 25
21 + 4 = 25
and 22 + 3 = 25
Thus, x and y are connected by the linear relation: x + y = 25 → (1)
⇒ There is perfect correlation between x and y
⇒ r = ± 1 → (2)
From (1) / We get y = 25 – x
∴ As x increases, y decreases (by the same amount)
⇒ x and y are negatively correlated → (3)
From (2) and (3), we conclude that
r = r (x, y) = –1
Ans. (c)
187. Ans. (b) Refer Properties
188. Ans. (b) Refer Properties
189. Ans. (b) Refer Properties
190. Ans. (b) Refer Properties
191. Lt X … B (n=6, p). When X denotes the number of successes. Then, by binomial
probability law, the probability of r successes is givenby
p(r) = P(x=r) = 6C r P rq 6 – r → (1)
r = 0, 1, 2, ........... 6
Put r = 3 and 4 in (1)

374 Common Proficiency Test (CPT) Volume - II

 (1) ⇒ p(3) = 6C 3 p 3 q 3 = 20p 3 q 3 = 0.2457 (given)
p(4) = 6C 4 p 4 q 2 = 15 p 4 q 2 = 0.0819 (given)
p ( 4 ) 15 p 4 q 2 0 .0819 1
= = =
p (3 ) 20 p 3 q 3 0 .2457 3
3 p 1
⇒ . =
4 q 3
∴ 9p = 4q = 4 (1 – p)
∴ 13p = 4
p = 4/13
∴ q = 1 – p = 1 – 4/13 = 9/13
192. Ans. (a) – Refer Properties
193. Ans. (b) – Refer Properties
194. Ans. (a) – Refer Properties
195. Ans. (b) – Refer Properties
196. Which measure of dispersion has some desirable mathematical properties → Standard
Deviation.
Ans. (a) Standard Deviation.
197. x 1 + y + y 1 + x = 0

⇒ x 1+ y = − y 1+ x
Eg. Both side
x 2 (1 + y ) = y 2 (1 + x)
2 2 2 2
(x − y )=y x − x y
( x + y ) ( x − y ) = − xy( x − y )
−x
∴ x + y +xy = 0 ⇒ y=
1+ x
dy (1 + x) ( −1) − ( − x) (1) − 1 − x + x
∴ = =
dx (1 + x) 2 (1 + x) 2
dy −1 dy
∴ = 2
⇒ (1 + x 2 ) = −1
dx (1 + x) dx
Ans. (c) (–1)

Common Proficiency Test (CPT) Volume - II 375

ANSWERS

198. y = x x 2 + 1 + log ⎛⎜ x + x 2 + 1 ⎞⎟
⎝ ⎠

dy 1 1 ⎛ 1 ⎞
= x. .2x + x 2 + 1 .1 + ⎜1 + .2 x ⎟
dx ⎜ ⎟
2 x2 + 1 x + x2 + 1 ⎝ 2 x2 + 1 ⎠

x2 x2 + 1 + x 1
= + x2 + 1 +
2
x +1 ⎛⎜ x + x + 1 ⎞⎟
2 2
x +1
⎝ ⎠
x2 + x2 + 1 + 1 2 ( x 2 + 1)
= = = 2 1 + x2
2 2
x +1 x +1

Ans. (c) 2 1+ x 2
199. y = ae mx + be −mx
dy
∴ = ame mx − bme −mx
dx
d2y d
dx 2
(
= = ame mx − bme −mx
dx
)
= am 2 e mx + bm 2 e −mx

= (
m 2 ae mx + be −mx )
d2y
= m2y
dx 2
Ans. (c) m2y
200. 12 C 5 + 2 .12 C 4 + 12 C 3 = 14 C x

(12 C 5
) ( )
+ 12 C 4 + 12 C 4 + 12 C 3 = 14 C x

13 C 5 + 13 C 4 = 14 C x

[C n
r + n C r −1 =n+1 C r ]
14 C 5 = 14 C x

x = 5 but value 14 C 9 = 14 C 5

∴ 14 C x = 14 C 9

∴x=9

376 Common Proficiency Test (CPT) Volume - II

 x = 5 or 9
Ans. (c) 5 or 9.

Model Test Paper – BOS/CPT – 7 / 2007

151. Let the number be x. Then according to the given condition of the problem,
x x +1
= +1
3 4
x x +1
⇒ − =1
3 4
4 x − 3 ( x + 1)
⇒ =1
12
x−3
⇒ =1
12
⇒ x – 3 = 12
⇒ x = 3 + 12 = 15
Hence the required number is 15
152. Let the fraction = x
And Correct answer = y
16
∴ Given x = y → (1)
17
x 33
and =y+
16 340
17
17 33
i.e. x = y+ → (2)
16 340
17
(1) ⇒ x = y
16
Substitute x the value of x in equation (2)
17 17 33
× y = y+
16 16 340
289 33
y=y+
256 340

Common Proficiency Test (CPT) Volume - II 377

ANSWERS
289 33
y−y=
256 340
⎛ 289 − 256 ⎞ 33
⎜ ⎟y =
⎝ 256 ⎠ 340
33 33
y=
256 340
33 256
y= ×
340 33
64
y=
85
Ans. (a)
153. Let the number be x
5 ⎡4 ⎤
Given ⎢ (x )⎥ = 8 + 2 ⎡⎢ 4 (x )⎤⎥
7 ⎣ 15 ⎦ 5 ⎣9 ⎦
4 8
x = 8+ x
21 45
4 8
x− x=8
21 45
⎛ 180 − 168 ⎞
⎜ ⎟x=8
⎝ 945 ⎠
12
x=8
945
945
x=8×
12
x = 708.75
Ans. (d)
154. Let two numbers are x and y
Given condition x + y = 14 → (1)
y – x = 10 → (2)
Adding (1) and (2) ⇒ 2x = 24
x = 12
(1) ⇒ 12 + y = 14

378 Common Proficiency Test (CPT) Volume - II

 y=2
∴ Product of two numbers = x × y = 12 × 2 = 24
Ans. (a)
155. Let two numbers are x and y.
Given x – y = 11 → (1)
x+y
And =9
5
i.e. x + y = 45 → (2)
Adding (1) and (2) ⇒ 2x = 56
X = 28
(1) ⇒ 28 – y = 11
– y = 11 – 28
= –17
y = 17
∴ The two numbers are 28, 17.
Ans. (d)
156. Sub duplicate Ratio of 16:49 = 16 : 49
= 4:7
Ans. (a)
157. Duplicate Ratio of 4 : 5 = 4 2 : 5 2
= 16 : 25
Ans. (a)
158. Triplicate Ratio of 3 : 5 = 3 3 : 5 3
= 27 : 125
Ans. (a)
159. The sub – triplicate Ratio of 8 : 125 = 3 8 : 3 125
= 2:5
Ans. (b)
6 15
160. 4 th Proportion of 6, 8 and 15 is =
8 x
6x = 15 × 8

Common Proficiency Test (CPT) Volume - II 379

 ANSWERS

15 × 8
x =
6
= 20
Ans. (c)
161. Let the two numbers be x and y. According to the First condition of the problem,
x 4
=
y 1
⇒ x = 4y → (1)
According to the second condition of the problem,
x+5 3
=
y+5 1
x + 5 = 3 (y + 5)
x + 5 = 3y + 15
x – 3y = 15 – 5 = 10 → (2)
Put x = 4y from (1) in (2), we get
4y – 3y = 10
y = 10
(1) ⇒ x = 4 (10) = 40
Hence the required numbers are 40 and 10.
Ans. (b)
162. Let A having money = 3x
B having money = 4x
C having money = 5x
Given 3x = 300
x = 1 00
∴ C = 5x = 5 × 100 = 500
Ans. (c)
163. Let the two numbers be x and y. According to the first condition of the problem.
x 5
=
y 6
6x = 5y
6x – 5y = 0 → (1)

380 Common Proficiency Test (CPT) Volume - II

 According to the second condition of the problem
x−5 4
=
y −5 5
5(x – 5) = 4 (y – 5)
5x – 25 = 4y – 20
5x – 4y = 5 → (2)
(1) × 5 ⇒ 30x – 25y = 0 →(3)
(2) × 5 ⇒ 30x – 24y = 30
Subtracting (3) from (4), we get
y = 30
(1) ⇒ 6 x – 5 (30) = 0
6x = 150
150
x= = 25
6
Hence the required numbers are 25 and 30
Ans. (c)
164. Let the given numbers be x and y. Then accord ing to the given conditions of the problem.
x +1 1
=
y +1 2
⇒ 2x + 2 = y + 1
2x – y = –1 → (1)
x−5 5
and =
y − 5 11
11x – 55 = 5y – 25
11x – 5y = 30 → (2)
∴ (1) × 11 ⇒ 22x – 11y = –11 → (3)
(2) × 2 ⇒ 22x – 10y = 60 → (4)
(3) – (4) ⇒ – y = – 71
y = 71
(1) ⇒2x – 71 = – 1
2x = 70

Common Proficiency Test (CPT) Volume - II 381

ANSWERS
x = 35
Hence, the required numbers are 35 and 71
Ans. (b)
165. Let the number to be subtracted be x.
Then according to the problem
27 − x 7
=
43 − x 15
⇒ 15 (27– x) = 7 (43 – x)
⇒ 405 – 15x = 301 – 7x
15x – 7x = 405 – 301
8x = 104
104
x= = 13
8
Hence the required number is 13
Ans. (a)
166. Let the unit digit = x
and ten digits = y
∴ x+y = 3 → (1)
and the number = 10y + x
Reversing the order of digits
Units digit = y
and ten's digit = x
∴ Number = 10x + y
According to the given condition of the problem
7(10y + x) = 4(10x+y)
70y + 7x = 40x + 4y
70x – 40x + 70y – 4y = 0
– 33x + 66y = 0
– x+2y = 0 → 92)
Adding (1) and (2) we get
3y = 3
y=1

382 Common Proficiency Test (CPT) Volume - II

 (1) ⇒ x + 1 = 3
x = 3 –1 = 2
Hence, the required number is 12
167. The committee of six must include atleast 2 ladies.
i.e. two or more ladies. As there are only 3 ladies, the following possibilities arise:
The committee of 6 consists of
(i) 4 men and 2 ladies, (ii) 3 men and 3 ladies.
The number of ways for (i) = 7 C 4 + 3 C 2
= 35 × 3 = 105
The number of ways for (ii) = 7 C 3 × 3 C 3
= 35 × 1
= 35
Hence the total number of ways of forming a committee so as to include atleast two
ladies = 105 + 35 = 140
Ans. (a)
n!
168. We have nCr =
r!(n − 4 )!
Now substituting for n and r, we get

28 C
28 !
2r =
(2 r )!(28 − 2 r )!
24 !
24C 2r – 4 =
(2 r − 4 )!{24 − (2 r − 4 )}!
24 !
=
(2 r − 4 )! (28 − 2 r )!
Given 28 C 2 r : 24 C 2 r − 4 = 225:11

28 C 2 r 28 ! (2 r − 4 )! (28 − 2 r )!
⇒ = ÷
24 C 2 r − 4 (2 r )!(28 − 2 r )! 24 !

28 × 27 × 26 × 25 × 24 ! (2 r − 4 )! (28 − 2 r )!
= ×
2 r (2r − 1)(2 r − 2 )(2 r − 3 )(2 r − 4 )! (28 − 2 r )! 24 !
28 × 27 × 26 × 25 225
= =
2 r (2 r − 1)(2 r − 2 )(2 r − 3 ) 11

Common Proficiency Test (CPT) Volume - II 383

ANSWERS

11 × 28 × 27 × 26 × 25
⇒ 2r (2r – 1) (2r – 2) (2r – 3) =
225
= 11 × 28 × 3 × 26
= 11 × 7 × 4 × 3 × 13 × 2
= 11 × 12 × 13 × 14
= 14 × 13 × 12 × 11
∴ 2r = 14
r=7
Ans. (b)
169. Let in the number unit's digit = x
and ten's digit = y
∴ Number = 10y + x
According to the given conditions of the problem,
8 (x+y) + 1 = 10y + x
(or) 8x + 8y + 1 = 10y + x
⇒ 8x – x + 8y – 10y + 1 = 0
7x – 2y + 1 = 0 → (1)
and 13 (y – x) + 2 = 10y + x
13y – 13x + 2 = 10y + x
⇒ x + 13x + 10y – 13y – 2 = 0
⇒ 14x – 3y – 2 = 0 → (2)
(1) × 2 ⇒ 14x – 4y + 2 = 0 → (3)
(2) – (3) ⇒ y – 4 = 0
y=4
Put y = 4 in (1), we get
7x – 8 + 1 = 0
7x = 7
x=1
Hence, the required number is 41
Ans. (b)

384 Common Proficiency Test (CPT) Volume - II

170. We want to find out the number of combination of 12 things taken 3 at a time and this is
by:
12 !
12 C 3 =
3!(12 − 3 )!
12 ! 12 × 11 × 10 × 9!
= =
3! 9! 3! 9!
12 × 11 × 10
=
3×2
= 220
Ans. (c)
x −3 x −3 1
172. lt = lt
x →9 x−9 x →9 x −3 x +3
1 1
App lt = =
3+3 6
1
Ans. (a)
6

173. lt
x + 0 − 2a
⇒ lt
x + a − 2a
×
( x + a − 2a )
x →9 x−0 x →9 x−0 ( x+a + 2a )
x + a − 2a (x − a )
⇒ lt = lt
x →9 (
(x − a ) x + a + 2a ) (
x →a ( x − a ) x + a + 2 a )
App lt
1 1
=
( a + a + 2a 2 2a )
1
Ans. (b)
2 2a
⎛ 6 ⎞
2 ⎜5 + 2 ⎟
6 + 5x x ⎠
174. lt ⇒ lt x2 ⎝
x →∞ 4 x + 15 x 2 x →∞ ⎛
x 2 ⎜ 15 + ⎟
4⎞
⎝ x⎠
App lt.
5+0 1
⇒ =
15 + 0 3
1
Ans. (c)
3

Common Proficiency Test (CPT) Volume - II 385

ANSWERS

a − bx ⎛ a b⎞
175. lt 2
⇒ lt ⎜ 2 − ⎟
x →∞ x x →∞ ⎝ x x⎠
App lt.
⇒ (0 … 0) = 0
Ans.(a) 0
d x d
(e x + e −x ) (e − e −x ) − (e x − e −x ). (e x + e −x )
e x − e −x dy dx dx
176. y = ⇒ =
e x + e −x dx (e x + e −x )2

(e x + e − x )(e x + e − x ) − (e x − e − x )(e x − e − x )
=
(e x + e −x ) 2

e 2 x + e −2 x + 2 − e 2 x − e −2 x + 2 4
= −x 2
=
(e + e x
) (e + e − x ) 2
x

4
Ans. (b)
(e + e − x ) 2
x

d d
(1 + x) 2 x − x (1 + x) 2
x dy dx dx
177. y = 2
⇒ =
(1 + x) dx (1 + x) 4

(1 + x) 2 .1 − x.2 (1 + x) 1 + x2 + 2x − 2 x − 2 x2
⇒ =
(1 + x) 4 (1 + x) 4

1 − x2 1− x
= 4
=
(1 + x) (1 + x) 3
1− x
Ans. (b)
(1 + x) 3

178. y = x+ x
dy d 1 / 2 d
= t . (x + x )
dx dt dx
1⎛ 1 ⎞
= . ⎜⎜ 1 + ⎟⎟
2⎛⎜ x + x ⎞⎟ ⎝ 2 x ⎠
⎝ ⎠

386 Common Proficiency Test (CPT) Volume - II

 2 x +1
=
4 x x+ x

2 x +1
Ans. (a)
4 x x+ x
2
+2 x
179. y = 7 x
dy d t d 2
= 7 . ( x + 2 x)
dx dt dx
2
+2 x
= 7x .log 7. (2x+2)
dy 2
= 2( x + 1).7 x + 2 . log 7
dx
2
+2
Ans. (b) 2 ( x + 1).7 x . log 7

180. y = log ⎛⎜ x + x 2 + a 2 ⎞⎟
⎝ ⎠
dy d d
= log t. ⎛⎜ x + x 2 + a 2 ⎞⎟
dx dt dx ⎝ ⎠

1 ⎡ 1 ⎤
= . ⎢1 + . 2 x⎥
x + x 2 + a 2 ⎣⎢ 2 x 2 + a 2 ⎦⎥
⎛ x2 + a 2 + x ⎞
⎜ ⎟
= ⎝ ⎠
x + a ⎜ x + x + a 2 ⎞⎟
2 2⎛ 2
⎝ ⎠
dy 1
=
dx x2 + a 2
1
Ans. (a)
x2 + a 2
x

181. Given (x − y ) e x −y
=a
Differentiate on both sides.

Common Proficiency Test (CPT) Volume - II 387

ANSWERS

⎡ ⎛ dy ⎞ ⎤
x
⎢ (x − y ) (1)− x.⎜ 1 − dx ⎟ ⎥ x

(x − y ). e x −y ⎢ ⎝ ⎠ ⎥ + e x−y ⎛ 1 − dy ⎞ = 0
⎜ ⎟
⎢ (x − y )2 ⎥ ⎝ dx ⎠
⎢ ⎥
⎣ ⎦

x ⎡ dy ⎤
x −y ⎢ x − y − x + x dx dy ⎥
e ⎢ + 1− ⎥ = 0
⎢ (x − y ) dx ⎥
⎣ ⎦
dy
−y+x
dx + 1 − dy = 0
(x − y ) dx
−y x dy dy
+ +1− =0
x − y x − y dx dx

dy ⎡ x ⎤ y
⎢ − 1⎥ = −1
dx ⎣ x − y ⎦ x − y

dy ⎡ x − x + y ⎤ y − x + y
⎢ ⎥=
dx ⎣ x − y ⎦ x−y

dy ⎡ y ⎤ 2 y − x
⎢ ⎥=
dx ⎣ x − y ⎦ x − y

dy 2 y − x
=
dx y

dy ⎡ 2y − x ⎤
∴ y + x = y⎢ ⎥+x
dx ⎣ y ⎦
= 2y – x + x
dy
y + x = 2y
dx
Ans. (c)

182. Given demand law x = 10 − p 2

x = (10 − p 2 )1 / 2
1
dx 1 −1
= (10 − p 2 ) 2 ( −2p )
dp 2

388 Common Proficiency Test (CPT) Volume - II

 1( −2p )
2 10 − p 2
dx −p
=
dp 10 − p 2
p dx
ed = .
x dp
p −p
= 1/ 2
.
(10 − p ) 2 10 − p 2
when p = 2
2 −2
ed = .
6 6
ed = – 2/3
2
ed =
3
Ans. (a)
Alternate
x3
183. ∴ ∫ dx
x +1
⎛ 3 1 ⎞
= ∫ ⎜⎝ x − x +1− ⎟ dx
x +1⎠

x3 x2
= − +x – log(x+1) + c
3 2
Ans. (c)
⎛ e 4x + e 2x ⎞
184. ∫ ⎜⎜ e 3 x ⎟⎟dx
⎝ ⎠
⎛ e 4x e 2x ⎞
= ∫ ⎜⎜ e 3 x + e 3 x ⎟⎟ dx
⎝ ⎠
= ∫e
x
dx + ∫ e − x dx

= e x – e –x + c
Ans. (b)

Common Proficiency Test (CPT) Volume - II 389

ANSWERS

x4 + 1 ⎛ 2 2 ⎞
185. ∫ x 2 + 1 dx = ∫ ⎜⎝ x − 1 + x 2 + 1 ⎟⎠ dx
2 1
= ∫x dx − ∫ dx + 2 ∫ 2
x +1
dx

x3
= – x + 2 tan –1 x + c
3
Ans. (c)
186. Let I = ∫ log ( x + 1) dx
∴ I= ∫ log ( x + 1).1dx
Integrating by parts
[Here log (x+1) is to be taken as first function and unity as second function)
I = [log (x+1] integral of '1' – integral of
[d/dx (log (x+1)] + integral of '1']
1
= log (x+1).x – ∫ x + 1 .x dx
x +1−1
= x log (x+1) – ∫ x +1
dx

⎛ 1 ⎞
= x log(x+1) – ∫ ⎜⎝1 − x + 1 ⎟⎠ dx
= x log (x+1) – [x – log (x+1)]
I = x log (x+1) – x + log (x+1) +c
1 x − 1+ x
187. Consider =
x + 1+ x x − (1 + x)

= 1+ x − x
dx
∴ I= ∫ x + 1+ x

= ∫ 1 + x dx − ∫ x dx

I = I1 – I 2

I1 = ∫ 1 + x dx

390 Common Proficiency Test (CPT) Volume - II

 Let z = 1 + x
dz = dx
∴ I1 = ∫ 1 + x dx = ∫ z dz

2 3/2
= z
3
2
= (1 + x) 3 / 2
3
x3 / 2
∴ I = 2/3 (1+x) 3/2 – +c
3/2
I = 2/3 {(1 + x )
3/2
}
− x3 / 2 + c

188. Consider x 3 + x 2 − 2 x = x( x 2 + x − 2 )

= x( x 2 + 2 x − x − 2 )
= x {x(x+2) – (x+2)}
= x (x – 1) (x + 2)
x2 − x + 2 x2 − x + 2
∴ We may write =
x3 + x2 − 2 x x( x − 1) ( x + 2 )

x2 − x + 2 A B C
Let = + +
x( x − 1) ( x + 2 ) x x − 1 x + 2

(or) x 2 − x + 2 = A(x − 1) (x + 2) + Bx(x + 2) + Cx(x − 1)

Substituting x = 1, We find 2 = 3B
B = 2/3
Substituting x = – 2, We find 8 = 6c
i.e. C = 4/3
Substituting x = 0, We find 2 = – 2A
A=–1
x2 − x + 2 dx 2 dx 4 dx
∴I= ∫ x 3 + x 2 − 2 x dx = −∫ x + 3 ∫ x − 1 + 3 ∫ x + 2
I = – log x + 2/3 log (x – 1) + 4/3 log (x+2) + log c
Ans. (c)

Common Proficiency Test (CPT) Volume - II 391

ANSWERS
1
189. Let I = ∫ 3 x 2 + 13 x − 10 dx
1 1
= ∫
3 x 2 + 13 x − 10
dx

3 3
1 1
= ∫
3 ⎡ 2 13
2 2
⎛ 13 ⎞ ⎤ ⎛ 13 ⎞ 10
dx
⎢ x + 2. x + ⎜ ⎟ ⎥ − ⎜ ⎟ −
⎢⎣ 6 ⎝ 6 ⎠ ⎥⎦ ⎝ 6 ⎠ 3

1 1
= ∫ dx
3 (x + 13 / 6 )2 − 289
36
Let t = x+13/6
∴ dt = dx
1
∴ I = 1/3 ∫ t 2 − (17 / 6)2 dt

1 1 ⎡ t − 17 / 6 ⎤
= . log ⎢
3 2 (17 / 6 ) ⎥
⎣ t + 17 / 6 ⎦
1 ⎡ 6 t − 17 ⎤
= log ⎢ ⎥
17 ⎣ 6 t + 17 ⎦
⎡ ⎤
1 ⎢ 6 ( x + 13 / 6 ) − 17 ⎥
= log ⎢ ⎥
17 ⎢ ⎛ 13 ⎞ ⎥
⎢ 6 ⎜⎝ x + 6 ⎟⎠ + 17 ⎥
⎣ ⎦
1 ⎡ 3x − 2 ⎤
= log ⎢ ⎥ +c
17 ⎣ 3 x + 15 ⎦
Ans. (b)

∫ e {f(x ) + f′ ( x)} dx
x
190.

By the method of integration by parts, we may write

⎧d ⎫
∫ e f(x )dx = f(x ) ∫ e dx − ∫ ⎨⎩ dx f( x) ∫ ex dx ⎬⎭ dx
x x

= e x f (x ) − e x f ′ ( x) dx
∫

392 Common Proficiency Test (CPT) Volume - II

 Transposing ∫e
x
f( x) dx + e x f ′ ( x) dx = e x f (x )
∫
∫ e {f( x) + f′( x)} dx = e f(x )
x x
(or)
b
log x
191. ∫ x
dx Let log x = t x = a, t = log a
a

1 dt
= x = b, t = log b
x dx
log b
log a ⎡ t2 ⎤
∫ log b t.dt . ⇒ ⎢ ⎥
⎢⎣ 2 ⎥⎦ log a

⇒
1
2
[(log b ) − (log a ) ] ⇒ 21
2 2 ⎡ ⎛ b ⎞⎤
⎢log( ab ). log⎜ a ⎟⎥
⎝ ⎠⎦
⎣
1 ⎡ ⎛ b ⎞⎤
Ans. (a) ⎢log( ab ). log⎜ ⎟⎥
2 ⎣ ⎝ a ⎠⎦

192. ∫ [f( x) + f(−x)][g( x) − g(−x)] dx

⇒ ∫ 0.[g( x) − g(−x)]dx ⇒ 0
Ans. (a) 0
b
dx
193. ∫ (a + b − x)2 / 3 Let a + b – x = t x = a, t = b
a

dt
–1 = x = b, t = a
dx
a b
⇒ – ∫ t −2 / 3 dt ⇒ ∫t
−2 / 3
dt
b a

⇒ 3 [ ] b
t1 / 3 a [
⇒ 3 b1 / 3 − a 1 / 3 ]
Ans. (a) [
3. b1 / 3 − a 1 / 3 ]
2
x
194. I = ∫ x + 2−x
dx ... (i)
0

2
2−x
I= ∫ 2−x + x
... (ii) [f(x) = f(a − x)]
0

Common Proficiency Test (CPT) Volume - II 393

ANSWERS
2
2
2I = ∫ dx = [x]0 =2
0

1
∴ I= ×2 = 1
2
Ans. (a) 1
1 1
⎛1 ⎞ ⎛1− x ⎞
195. I = ∫ log ⎜⎝ x − 1⎟⎠dx ⇒ ∫ log ⎜⎝ x ⎟⎠dx ... (i)
0 0

1
⎛ 1−1+ x ⎞
I= ∫ log ⎜⎝ 1− x ⎠
⎟dx [f( x) = f(a − x)]
0

1 1
x ⎛1− x ⎞
I= ∫ log
1− x
⇒ −∫ log ⎜
⎝ x ⎠
⎟ dx ... (ii)
0 0

2I = 0 ∴I=0
Ans. (c) 0
196. No. of ways in which 7 dept distributed among 3 minister
= (7 C3 )
× 4 C 3 × 1 ) + (7 C 3 × 4 C 2 x × 3 !

= (120 + 330) × 6 = 1980

Ans. (d) None of these
197. No. of selections of letters
(i) 2 like and 1 different = 3 C1 × 2 C1 = 3 × 2 = 6

(ii) 3 different = 5 C 3 = 10

∴ Total no. of ways of selection letters = 16

∴ Total words = 16×3! = 96 words.
Ans. (b) 96
198. No. of ways to form three digit nos. by using (1, 2, 3, 4, 3, 2) are – 42.
Ans. (b) 42
n n−2
199. S n + S n−2 − 2 .S n−1 = [2 a + (n − 1)d ] + [2a+(n – 2 – 1)d]
2 2
n −1
…2. [2a + (n – 1 – 1)d]
2

394 Common Proficiency Test (CPT) Volume - II

 n ⎛n−2 ⎞
= [2a+(n – 1)d] + ⎜ ⎟ [2a + (n − 3)d] – (n −1)[2a + (n − 2)d]
2 ⎝ 2 ⎠
(n − 1)n (n − 3 ) (n − 2 )
= an + d + a (n − 2 ) + d − 2 a (n − 1) − (n − 1) (n − 2 )d
2 2
⎡ (n − 1) (n − 3 )(n − 2 ) ⎤
= d⎢ n+ − (n − 1) (n − 2 )⎥
⎣ 2 2 ⎦
⎛ n 2 − n + n 2 − 5n 2 + 6 − 2n 2 − 4 + 6n ⎞
d⎜ ⎟
⎜ 2 ⎟
⎝ ⎠
2d
= =d
2
Ans. (a) d
A3 1
200. =
A(n − 1) 3
a + 3d 1
= ⇒ (3+3 d) 3 = 3 + (n – 1)d
a + (n − 1)d 3
6
∴ d=
n − 10
6
∴ 7n = a + (N…1) d ⇒ 31 = 3+ (n + 2 – 1)
n − 10
6
28 = (n+1) ∴ n = 13
n − 10
Ans. (c) 13

Model Test Paper – BOS/CPT – 8 / 2007

151. The first no. divide by 8 between 100 and 200 is 104
The last no. divide by 8 between 100 and 200 is 200
∴ The total number divide by 104 and 200 is 13.
All number divide by 8 also divide by 2 is 13
Ans. (b)
152. Sum of 1st n odd number

Common Proficiency Test (CPT) Volume - II 395

ANSWERS

S = 1+3+5+ ... + (2n – 1)

n
Since S = [2 a + (n − 1)d ]
2
S = n/2 [2.1 + (n – 1)2]
= n (1+n – 1)
= n(n)
S = n2
Ans. (a)
153. Let the number be x.
According to the given condition of the problem is
36x = x + 1050
36x = 1050
1050
x =
35
x = 30
Ans. (b)
2
3 3 3 ⎧ n(n + 1) ⎫
3
154. The formula is 1 + 2 + 3 + ........ + n = ⎨ ⎬
⎩ 2 ⎭
2
3 3 3 ⎧12 (12 + 1) ⎫
3
∴ 1 + 2 + 3 + ........ + 12 = ⎨ ⎬
⎩ 2 ⎭
= [6(13 )] 2
= [78 ] 2 = 6084
Ans. (c)
155. Let S = 1+9+24+46+75+........+t n
shifting 1 places to the right in the RHS
S = 1+9+24+46+75+...........t n-1 +t n
subtracting term by term,
0=1+8+15+22+29+............+(t n -tn-1 ) - t n
Transposing
t n = 1+8+15+22+29+ ............ to n th term

396 Common Proficiency Test (CPT) Volume - II

 n
= {2.1+(n – 1)7}
2
7 5
= n2 − n
2 2
7 5
Now Sn = ∑ tn = 2 ∑ n 2 − 2 ∑ n
7 n(n + 1)(2 n + 1) 5 n(n + 1)
= −
2 6 2 2
n(n + 1) ⎧ 7 5⎫
= ⎨ (2 n + 1) − ⎬
2 ⎩6 2⎭
n(n + 1) ⎛ 7 4⎞
= ⎜ n− ⎟
2 ⎝3 3⎠
n(n + 1)(7n − 4 )
Sn =
6
156. Let the number to be added be x then according to the problem.
83 + x 1
= '
263 + x 3
3(83+x) = 263 + x
249 + 3x = 263 + x
3x – x = 263 – 249
2x = 14
14
x= =7
2
Hence the required number is 7
Ans. (c)
157. Initially, let the number of employees be 9 and wages per head be Rs. 14. Then, total
wages bill = Rs. (9×14) = Rs. 126
Further, the number of employees becomes 8 and the wages per head becomes Rs. 15.
∴ Now total wages bill = Rs. (8×15) = Rs. 120
∴ Ratio of the wages bill = 126:120
= 21:20
Thus the wages bill is decreased in the ratio 21:20
Ans. (c)

Common Proficiency Test (CPT) Volume - II 397

ANSWERS
158. Let C gets Rs. = x
Given B = ¼ of C = ¼ (x)
2 1
and A = of B = 2/3 (¼x) = x
3 6
1 1
Also, given x + x + x = 680
6 4
2 x + 3 x + 12 x
= 680
12
17 x
= 680
12

680 × 12
x = = 480
17
Ans. (c)
159. Let us assume that when x is added to each of the four given numbers, they become in
proportion.
⇒ 10 + x : 18 + x = 22 + x : 38 + x
∴ Product of the means = Product of the extremes.
∴ (10+x) (38+x) = (18+x) (22+x)
⇒ 380+48x + x 2 =396 + 40x + x 2
8x = 16
x=2
Required number = 2
Ans. (a)
160. Let the required numbers be x and y. Since the mean proportional between a and c is
given by the relation b = ac
∴ Mean proportional = xy
According to the question,
xy = 24

xy = 576 → (1)
Again suppose that the third proportional to x and y is z. Then
x:y=y:z

398 Common Proficiency Test (CPT) Volume - II

 ⇒ x:z=y:y
xz = y2
y2
⇒ z=
x
According to the question,
y2
= 192
x
⇒ y 2 =192 x → (2)
y2
From equation (2), x=
192
Putting this value of x in equation (1)
y2
.y = 576
192
y 3 = 576×192
= 24 × 24 × 24 × 8
= 24 × 24 × 24 × 2 × 2 × 2
y = (24 × 24 × 24 × 2 × 2 × 2 × 2) 1/3
= 24 × 2
y = 48
(1) ⇒ xy = 576
x (48) = 576
576
x= =8
48
Hence the required number are 12 and 48.
e x + e −x − 2 ⎡ e x −1 (e − x − 1 ⎤
161. lt ⇒ ⎢ + ⎥
x →0 x ⎢⎣ x x ⎥⎦

⎡⎛ e x − 1 ⎞ ⎛ e − x − 1 ⎞⎤ ⎧⎪ e x − 1 ⎫⎪
⇒ lt ⎢⎜⎜ ⎟+⎜
⎟ ⎜
⎟⎥
⎟ ⎨ lt = 1⎬
x →0 ⎢⎣⎝ x ⎠ ⎝ x ⎠⎥⎦ ⎪⎩x →0 x ⎪⎭

1–1=0
Ans. (b) 0

Common Proficiency Test (CPT) Volume - II 399

ANSWERS
−1
e x −1 ⎛ e 1/ x −1 ⎞
162. lt ⇒ lt ⎜ ⎟
−1 ⎜ e 1/ x + 1 ⎟
x →0 e x +1 x →0
⎝ ⎠
⎛ e 1/ x −1 ⎞
RHL lt ⎜ ⎟ App lt. = ∞
x →0 + ⎜ e 1/ x + 1 ⎟ ∞
⎝ ⎠
→ RHL does not exist
⎛ e 1/ x −1 ⎞
LHL lt ⎜ ⎟ App lt. ∞
x →0 − ⎜ e 1/ x + 1 ⎟ ∞
⎝ ⎠
LHL does not exist.
→ lt does not exist in f(x)
Ans. (c) does not exist
3 x− | x |
163. lt
x →0 7x − 5 | x |
3x − x 2x
RHL lt = =1
x →0 +
7x − 5x 2x
3 x − ( − x) 4x 1
LHL lt = =
x →0 −
7 x − 5 ( − x ) 12 x 3
LHL ≠ RHS
∴ f(x) does not exist at x = 0
Ans. (c) does not exist

164. lt
e ax − e bx
⇒ lt ⎢a .
(
⎡ e ax − 1
−b
) (
e bx − 1 ⎤
⎥
)
x →0 x x →0 ⎢⎣ ax bx ⎥⎦

⎧⎪ e x − 1 ⎫⎪
⇒ a.1 – b.1 ⇒ a – b ⎨ lt = 1⎬
⎪⎩x →0 x ⎪⎭

Ans. (a) a…b

e x −1 ⎡⎛ e x − 1 ⎞ x ⎤
165. lt ⇒ lt ⎢⎜⎜ ⎟. ⎥
x →0 log (1 + x) x →0 ⎢⎣⎝ x ⎟⎠ log (1 + x) ⎥⎦

⎛ e x −1 ⎞ 1
⇒ lt ⎜ ⎟ . lt
x →0 ⎜ x ⎟ x →0 log (1 + x)
⎝ ⎠
x
⇒ 1.1 = 1

Ans. (b) 1

400 Common Proficiency Test (CPT) Volume - II

 1− x
166. Given y =
1+ x

dy
( 1 + x ) dxd ( 1 − x )− ( 1 − x ) dxd ( 1 + x )
=
dx ( 1+ x ) 2

( 1 + x ) ⎢⎣⎡21 (1 − x ) (−1)⎤⎥⎦ − ( 1 − x ) ⎡⎢⎣21 (1 + x )

1
2
−1
1
2
−1 ⎤
⎥
⎦
=
(1 + x)

1 1+ x 1 1− x
− −
2 1− x 2 1+ x
=
(1 + x)

1 ⎡ (1 + x) + (1 − x) (1 + x) ⎤
= − ⎢ . ⎥
2 ⎣ 1− x 1+ x 1 ⎦

dy 1⎡ 2 1+ x⎤ −1
=− ⎢ =
dx 2 ⎣ 1− x 1+ x
.
1 ⎦⎥
(1 + x )3/2
1− x ( )
Ans. (b)
x
167. Given y=
1 + x2
1
1 + x 2 (1) − x. (2 x )
dy
= 2 1 + x2
dx 2
⎛ 1 + x2 ⎞
⎜ ⎟
⎝ ⎠

x2
1 + x2 −
= 1 + x2
(1 + x ) 2

=
(1 + x )− x
2 2

(1 + x ) ⎛⎜⎝ 1 + x
2 2 ⎞
⎟
⎠
dy 1
= 3
dx
(1 + x ) 2 2

Common Proficiency Test (CPT) Volume - II 401

ANSWERS
3
3dy x3 ⎡ x ⎤
∴ x = 3
=⎢ ⎥
dx
(1 + x ) 2 2 ⎢⎣ 1 + x 2 ⎥⎦

dy
x3 = [y ] 3
dx
Ans. (c)
168. Given x y = e x − 4
Taking log on both sides
( )
log x y = log e x−y ( )
y log x = (x – y) log e
y log x = x – y
y (1 + log x) = x
x
y=
1 + log x
Differentiate on both sides
⎛1⎞
(1 + log x).1 − x⎜ ⎟
dy ⎝x⎠
=
dx (1 + log x )2

1 + log − 1 log x
= =
(1 + log x )
2
(1 + log x )2
Ans. (a)
169. Given y 3 x 5 = (x + y )8 → (1)
Differentiate on both sides.

( )
y 3 5 x 4 + x 5 .3 y 2
dy
dx
⎡ dy ⎤
= 8 (x + y )7 ⎢1 + ⎥
⎣ dx ⎦
dy dy
5y 3 x4 + 3 x5 y2 = 8 (x + y )7 + 8 (x + y )7
dx dx

[
dy 5 2
dx
]
3 x y − 8 (x + y )7 = 8 (x + y )7 − 5 y 3 x 4

402 Common Proficiency Test (CPT) Volume - II

 8 (x + y )7 − 5
(x + y )8
dy 8 (x + y ) − 5 y x
7 3 4
x
= = Using equation (1)
dx 3 x 5 y 2 − 8 (x + y )7 3
(x + y ) − 8 (x + y )7
8
y

⎡ 5 ⎤
(x + y )7 ⎢8 − x (x + y )⎥
= ⎣ ⎦
(x + y )7 ⎛⎜⎜ 3 (x + y ) − 8 ⎞⎟⎟
⎝y ⎠
y [8 x − 5 (x + y )] y[8 x − 5 x − 5 y ]
= =
x[3 (x + y ) − 8 y ] x[3 x + 3 y − 8 y ]
y[3 x − 5 y ] y
= =
x[3 x − 5 y ] x
Ans. (a)
x ..... ∞
170. Given y = x x
i.e. y = xy
Taking log on both sides
log y = log x y ( )
log y = y log x
Differentiate on both sides
1 dy 1 dy
= y. + log x.
y dx x dx

dy ⎡1 ⎤ y
⎢ − log x⎥ =
dx ⎣y ⎦ x
dy ⎡ 1 − y log x ⎤ y
⎢ ⎥=
dx ⎣ y ⎦ x
dy y2
=
dx x(1 − y log x )

dy y2
∴ x. =
dx 1 − y log x
Ans. (b)

Common Proficiency Test (CPT) Volume - II 403

ANSWERS
1
1
∫−1 (0) dx
x
171. ∫ (e − e x )dx =
−1

= 0
Ans. (b) 0
e
1 + log x
172. ∫ x
dx
1

Let 1 + log x = t x = 0, t = 1
1 dt
= x = e, t = 2
x dx
2 2
⎡ t2 ⎤
= ∫ + dt = ⎢ ⎥
1 ⎣ 2 ⎦1
1 3
= 2– =
2 2
3
Ans. (a)
2
log 3
ex
173. ∫ 1+ e x
dx If 1+ex=t x = 0, t = 2
0

dt
ex = x = log3, t = 4
dx
4
1
∫ − t dt = [log t ]24 ⇒ log 4 – log 2
2

= log 2
Ans. (b) log 2
1
x
174. ∫ 1+ 1+ x 2
let (1 + x 2 ) = t2 x = 0, t = 1
0

x =1 t = 2
dt t
2x = 2t ⇒ dx = dx
dx x
2 2
t dt ⎛ 1 ⎞
∫ 1+ t
= ∫ ⎜⎝1 − 1 + t ⎟⎠dt
1 1

404 Common Proficiency Test (CPT) Volume - II

 = [t − log (1 + t )]1 2
= ( )[ ( ) ]
2 − 1 − log 1 + 2 − log 1

= ( 2 − 1)− log (1 + 2 )+ 0

= ( 2 − 1)− log (1 + 2 )
Ans. (d) None of these
1 1
dx ⎛ 1 1 ⎞
175. ∫ (1 + x) (2 + x) ⇒ ∫ ⎜⎝ 1 + x − 2 + x ⎟⎠dx
0 0

1
⎡ 1+ x ⎤
⇒ [log(1 + x ) − log(2 + x )]10 ⇒ ⎢log ⎥
⎣ 2 + x ⎦0
2
⇒ log
3
2
Ans. (a) log
3
176. a + ar = 15 ⇒ a (1+ r) = 15
a = ar + ar 2 + ar 3 – ∞
ar
a= ⇒ 1– r = r ⇒ r = 1/2
1− r
15 × 2
∴a= = 10
3
a 10
∴ Sum of Series = = = 20
1 − r 1−1/ 2
Ans. (a) 20
1 1
177. a = ⇒ =1 – x
1− x a
1 1
b= ⇒ = 1–y
1− y b
1 1
∴ + = 1 − x + 1 − y ⇒ 2 – (x+y) = 2.1 = 1
a b
Ans. (c) 1

Common Proficiency Test (CPT) Volume - II 405

ANSWERS

R 3
178. 90 = 2000 × ×
100 4
∴ R = 6%
Ans. (b) 6%
6
179. 216 = 5400 × ×n
100
n = 4/6 yrs. = 8 months
Ans. (b) 8 months
R
180. I1 = 10000 × 2 = 200 R
100
R
I2 = 6000 × × 3 = 1800 R
100
I1 + I2 = 1900 ⇒ 200R + 180R = 1900
∴ 380R = 1900 ∴ R = 5%
Ans. (b) 5%
181.If all the observation are equal.
Then standard deviation = 0
Ans. (a) 0
182. If every item is increased by 5 then mean ( x ) also increased by 5, but the value of
∑ ( x − x ) 2 remain same.

∴ Standard deviation will remain same,

Standard deviation = 10
Ans. (c) – 10

183. S.D. =
∑d2 = 360
=6
N 10
x SD
Coefficient of variation = 100
Am
100 × 6
= = 15
40
Ans. (a) 15

406 Common Proficiency Test (CPT) Volume - II

 M.D
184. Coefficient of M.D. = × 100
Am
5 .77 × 100
44 =
AM
A.M. = 13.11
Ans. 13.11
185. The S.D. of two values is equal to half their difference.
a −b
S.D. =
2
The Statement is correct
Ans. (a) True
186. Computation of Correlation Coefficient
x y xy x2 y2
50 40 2000 2500 1600
50 40 2000 2500 1600
Total 100 80 4000 5000 3200

100 80
x= = 50 , y = = 40
2 2
4000
Cov (x, y) = – (50) (40) = 0
2
∴ r=0
Ans. (c)
2
187. Given rR =
3
, ∑ di2 = 55

∴ rR = 1 −
b ∑ di2
(
n n2 − 1 )
2 6 (55 )
=1− 2
3 n n −1 ( )
2 − 330
−1 = 2
3 (
n n −1 )
1 330
− =− 2
3 n n −1 ( )

Common Proficiency Test (CPT) Volume - II 407

ANSWERS

( ) (
n n 2 − 1 = 990 = 10 10 2 − 1 )
∴ n = 10 as n must a positive
Ans. (a)
188. Let us assume that 4x + 3y + 7 = 0 → (1)
represent the regression line of x on y and 3x + 4y + 8 = 0 → (2) represent the
regression line of y on x.
(1) 4x = –7 – 3y
7 3
x= – – y
4 4
3
∴ bxy = –
4
(2) 4y = – 8 – 3x
3
y = –2 – x
4
3
∴ byx = –
4
⎛ 3⎞ ⎛ 3⎞ 9
∴ r 2 = byx. bxy = ⎜ − ⎟ ⎜ − ⎟ =
⎝ 4 ⎠ ⎝ 4 ⎠ 16
9 3 3
∴ r= = ± = − = − 0 .75
16 4 4
(We take the sign of n as negative since both the regression coefficient are negative).
Ans. (c)
189. Ans. (d) Refer Properties
190. Given byx = 1.2 → (1)
x − 100
U=
2
⇒ x = 100 + 2U
⇒ x = 100 + 2 U
y − 200
and v =
3
⇒ y = 200 + 3 v
⇒ y = 200 + 3 v

408 Common Proficiency Test (CPT) Volume - II

 byx =
∑ ( x − x) (y − y )
E( x − x)2

=
∑ [2 (U − U ).3(v − v )]
∑ [2(U − U )]
2

2 × 3 ∑ (U − U )(V − V )
=
4 ∑ (U − U )2
= 3/2 bvu
⇒ bvu = 2/3 byx = 2/3 × 1.2 = 0.8
Ans. (b)
191. Let A, is First bag is selected
A2 is second bag is selected.
B: In a draw of 2 balls, one is red and the other is black.
The required probability
P = P(A 1 ∩ B) + P (A 2 ∩ B)
= P(A 1 ) P (B/A 1 ) + P (A 2 ). P(B/A 2 )
Since there are two bags, the selection of each being equally likely.
∴ P(A 1 ) = P(A 2 ) = 1/2
P(B/A 1 ) = Probability of drawing one red and one black ball in a draw of 2 balls from the
1 st bag
5 C 1 × 3 C 1 15
= =
8C 2 28
P(B/A 2 ) = Probability of drawing one red and one black ball in a draw of 2 balls from the
2 nd bags.
4 C 1 × 5C 1 5
= =
9C 2 9
15 1 5
(1) ⇒ p = 1/2 × + ×
28 2 9
15 5 135 + 140 275
p. = + = =
56 18 504 504
Ans. (a)

Common Proficiency Test (CPT) Volume - II 409

ANSWERS

192. Let A1 is first purse is selected.

A2 is second purse is selected.
Let B: In a draw of one coin, one coin must be silver
The required probabilities.
P = P (A1 ∩ B ) + P (A 2 ∩ B )
= P ( A1 ) .P (B / A1 ) + P ( A 2 ). P (B / A 2 ) → (1)
Since there are two purse, the selection of each being equally likely
1 1
∴ P ( A1 ) = , P ( A2 ) =
2 2
P (B / A1 ) = Probability of drawing one silver coin from the first purse.
3C 1
= = 3/7
7C 1
P (B / A 2 ) = Probability of drawing one silver coin from the second purse.
4C1 4
= =
7C 1 7

⎛3⎞ 1⎛4⎞
Substituting (1) ⇒ p=1/2 ⎜ ⎟ + ⎜ ⎟
⎝7⎠ 2⎝7⎠
3 4 7 1
= + = =
14 14 14 2
Ans. (a)
193. When two tosses of unbiased dice the total sample space.
S = {(1,1), (1,2), (1,3), (1,4), (1,5), (1,6)
(2,1), (2,2), (2,3), (2,4), (2,5), (2,6)
(3,1), (3,2), (3,3), (3,4), (3,5), (3,6)
(4,1), (4,2), (4,3), (4,4), (4,5), (4,6)
(5,1), (5,2), (5,3), (5,4), (5,5), (5,6)
(6,1), (6,2), (6,3), (6,4), (6,5), (6,6)}
n(s) = 36
In the above sample space, let x be the number of sines getting from the experiment.
Let x = 0, means no sin. = number of times = 25
x = 1, means no sin. = number of times = 10

410 Common Proficiency Test (CPT) Volume - II

 x = 2, means no sin. = number of times = 01
36
∴ Expected table is:
x 0 1 2
p(x) 25 10 1

∴ The required probability = Mean = Expected Value

x p ( x)
= ∑ n( s )
0 × 25 + 1 × 10 + 2 × 1
=
36
12 1
= =
36 3
Ans. (a)
194. The experiment of throwing three dice is theoretically same as that of throwing a die
thrice.
Let E be the event of throwing six in a throw of die.
∴ P(E) = 1/6 and P ( E ) = 1 – P(E)
= 1–1/6 = 5/6
Let x denotes the random variable "number of Sixes".
∴ The possible values of x are 0, 1, 2, 3
∴ P(x=2) = P(E 1 E 2 E 3 or E 1 E 2 E 3 or E 1 E 2 E 3 )
= P(E 1 ) . P(E 2 ) P( E 3 ) + P(E 1 ) P( E 2 ) P(E 3 )+ P( E 1 )+ P(E 2 ) P(E 3 )
1 1 5 1 5 1 5 1 1
= . . + . . + . .
6 6 6 6 6 6 6 6 6
15
P(x=2) =
216
Ans. (c)
195. let A and B denote the events that the Chartered Accountant is selected in firms X and Y
respectively. Then in the usual notations, we are given.
P(A) = 0.7
P( A ) = 1– P(A) = 1=0.7=0.3
P( B ) = 0.5

Common Proficiency Test (CPT) Volume - II 411

ANSWERS

∴ P(B) = 1 – P(B) = 1 – 0.5 = 0.5

(
and P A ∪ B = 0.6 )
By De – Morgan's law
(A ∩ B) = A∪B

∴ P (A ∪ B ) = 1 – P (A ∩ B )

= (
1 – P A∪B )
= 1 – 0.6
= 0.4
The probability that the Chartered Accountant will be selected in one of the two firms X or
Y is given by:
P (AUB) = P(A) + P(B) – P (A ∩ B)
= 0.7 + 0.5 – 0.4
= 0.8
Ans. (a)
⎡ 1 ⎤
196. ∫ ⎢⎢⎣ log (log x) + (log x)2 ⎥⎥⎦dx
⎡d ⎤ 1
I = log (log x) ∫ dx −∫ ⎢⎣ dx [ log (log x)]⎥⎦.x dx + ∫ (log x)2 = dx
1 1
= log (log x).x – ∫ (log x) .dx + ∫ (log x)2 dx

⎡ 1 ⎛ 1 x ⎞⎤ 1
x. log (log x) – ⎢
⎢⎣ (log x)
∫ dx +⎜⎜⎝ (log x)2 . x dx ⎟⎟⎠⎥⎥ + ∫ (log x )2 = dx
⎦
x 1 1
⇒ x log (log x) –
log x
– ∫ (log x)2 + ∫ (log x)2 dx
x
⇒ x. log (log x) − +c
log x
x
Ans. (a) x. log (log x) − +c
log x
197. 'is equal to' Satisfies Reflexive, Symmetric and transitive Relation
∴ This is Equivalence Relation.

Ans. (d) Equivalence Relation.

412 Common Proficiency Test (CPT) Volume - II

198. f(x) = x2 +2
∴ f( − x) = ( − x) 2 + 2

= x2 + 2
f(– x) = f(x)
∴ f(x) is even function
Ans. (b) even function.
199. f(x) = 12 1+ x = 12.12 x 0< x<9
Range = 12×12°, 12×12 1 .....12×12 9
∴ Range = 12 < f(x) < 12 10
Ans. (a) 12 ≤ f( x) ≤ 12 10
200. 'Is greater than' over the set of real number is not satisfied Reflexive and Symmetric
relation it only satisfied transitive Relat ion
Ans. (a) Transitive relation.

Model Test Paper – BOS/CPT – 9 / 2007

x 17
151. Given =
x + y 23
⇒ 23x = 17x + 17y
23x – 17x = 17y
6x = 17y
17
x= y
6
17
y+y
x+y 6
Now, =
x − y 17 y − y
6
17 y + 6 y 6
= ×
6 17 y − 6 y

Common Proficiency Test (CPT) Volume - II 413

ANSWERS
23 y 23
= =
11y 11
x + y 23
∴ =
x − y 11

25 x
152. Given 1+ = 1+
144 12
Squaring on both sides:
2
25 ⎛ x⎞
1+ = ⎜1 + ⎟
144 ⎝ 12 ⎠

144 + 25 x2 2x
= 1+ +
144 144 12
169 144 + x 2 + 24 x
=
144 144
∴ x 2 + 24 x − 25 = 0
(x + 25 ) (x − 1) = 0
x = − 25 , x = 1
x = 1 ( ∴ negative neglected)
Ans. (a)

(4 )3 × ( )
8
153. Given 2 = 2n
8
⎛ 1⎞
( )
i.e. (2 ) 2 3
× ⎜ (2 ) 2 ⎟ = 2 n
⎜ ⎟
⎝ ⎠

26 × 2 4 = 2n

2 10 = 2 n
∴ n = 10
Ans. (a)
154. Let total number of men went to a hotel = x
Given, A man Spent Rupees = Total number of men
= x
∴ Given Data = x + x = 15625

414 Common Proficiency Test (CPT) Volume - II

 x 2 = 15625
x = 15625 = 125
Ans. (b)
155. Given A + B + C = 1000 → (1)
A + C = 400 → (2)
B + C = 700 → (3)
(2) ⇒ A = 400 – C
(3) ⇒ B = 700 – C
(1) ⇒ 400 – C + 700 – C + C = 1000
C = 100
Ans. (a)
⎛ a −b ⎞
156. Given log ⎜ ⎟ = 1/2 (log a + log b)
⎝ 2 ⎠
a −b
∴ 2 log = log a + log b
2
2
⎛ a −b ⎞
log ⎜ ⎟ = log ab
⎝ 2 ⎠
2
⎛ a −b ⎞
⇒ ⎜ ⎟ = ab
⎝ 2 ⎠
2
⎛ a −b ⎞
⎜ ⎟ = ab
⎝ 4 ⎠
(a – b)2 = 4ab
a 2 + b 2 − 2 ab = 4 ab
a 2 + b 2 = 6ab
Ans. (a)
157. Given log10 x = 4
∴ x = 10 4
Ans. (c) x = 10000
158. log 225 = log (9×25)
= log 9 + log 25

Common Proficiency Test (CPT) Volume - II 415

ANSWERS

= log 3 2 + log 5 2
= 2log 3 + 2 log 5
= 2log 3 + 2 log 10/2
= 2log 3 + 2 log 10 – 2 log 2
= 2 × 0.477 + 2 – 2 (0.301)
log 225 = 2.352
Ans. (a)
159. Let 2 100 = x
Taking log on both sides.
log 2 100 = log x
100 log 2 = log x
log x = 100 × 0.3010
log x = 30.1000
∴ the no. of digits in 2 100 is 31
Ans. (b)
n!
160. Given nP3 = = 60
(n − 3 ) !

∴ n(n – 1) (n – 2) = 60 = 5 × 4 × 3
∴ n=5
Ans. (c)
a x +bx −2 (a x − 1) + (b x − 1)
161. lt ⇒ lt
x →0 x x →0 x
a x −1 b x −1 ⎡ a x −1 ⎤
⇒ lt + lt ⎢ lt = log ae ⎥
x →0 x x →0 x ⎣⎢ x →0 x ⎦⎥
App lt.
= log a + log b = log (ab)
Ans. (a) log (ab)
10 x − 5 x − 2 x + 1
162. lt
x →0 x
⎡ (10 x − 1) (5 x − 1) (2 x − 1) ⎤ ⎧ a x −1 ⎫
⇒ lt ⎢ − − ⎥ lt
⎨ x→ = log ae ⎬
x →0
⎣⎢ x x x ⎦⎥ ⎩ 0 x ⎭

416 Common Proficiency Test (CPT) Volume - II

 App lt.
= log 10 – log 5 – log 2
⎛ 10 ⎞
= log ⎜ ⎟ = log 1 ⇒ 0
⎝ 5×2 ⎠
Ans. (b) 0
10 x − 5 x − 2 x − 1 [5 x × 2 x − 5 x − 2 x − 1] 5 x (2 x − 1) − 1 (2 x − 1)
163. lt ⇒ lt =
x →0 x2 x →0 x2 x2
(2 x − 1)(5 x − 1) (2 x − 1) (5 x − 1)
lt ⇒ lt × lt
x →0 x2 x →0 x x →0 x
⇒ log 2 × log 5
Ans. (a) log 5 × log 2
e 5x − e 3x − e 2x + 1
164. lt
x →0 x
⎡ (e 5 x − 1) (e 3 x − 1) (e 2 x − 1) ⎤
⇒ lt ⎢ 5 − 3 . − 2 ⎥
x →0
⎣⎢ 5x 3x 2 x ⎦⎥
App lt.
5.1 – 3.1 – 2.1
⎧⎪ e x − 1 ⎫⎪
= 5–3–2 =0 ⎨ lt = 1⎬
⎪⎩x →0 x ⎪⎭

Ans. (b) 0
e 5x − e 3x − e 2x − 1 (e 3 x .e 2 x − e 3 x − e 2 x − 1)
165. lt 2
= lt
x →0 x x →0 x2

lt
[e 3x
(e 2 x − 1) − 1(e 2 x − 1) ] ⇒ lt
[(e 3x
− 1) (e 2 x − 1) ]
2 2
x →0 x x →0 x
⎛ e 3x − 1 ⎞ ⎛ e 2x −1 ⎞
lt ⎜ ⎟ ⎜ ⎟
x →0 ⎜ x ⎟ × x→ lt
0 ⎜ x ⎟
⎝ ⎠ ⎝ ⎠
App lt.
3×2=6
Ans. (a) 6

Common Proficiency Test (CPT) Volume - II 417

ANSWERS
1
166. Given ∫ x2 + a 2
dx

Let x2 + a 2 = z − x

∴ z=x+ x2 + a 2
dz 1
= 1+ (2 x ) dx
dx 2 x +a2
2

x2 + a 2 + x z
= =
2 2
x +a x + a2
2

dz dx
∴ =
z x2 + a 2
dx dz
∴ ∫ 2
x +a 2
= ∫z = log z + c

= log ⎛⎜ x + x 2 + a 2 ⎞⎟ + c
⎝ ⎠
1
167. ∫ x2 − a 2
dx

Let x2 − a 2 = z − x

∴ z=x+ x2 − a 2
dz 1 x
= 1+ (2 x ) = 1 +
dx 2 x −a2
2
x −a2
2

x2 − a 2 + x z
= =
2
x −a 2
x −a2
2

dz dx
=
z x2 − a 2
1 1
∴ ∫ x2 − a 2
dx = ∫ 2 dz +c

= log (z) = log ⎛⎜ x + x 2 − a 2 ⎞+c

⎟
⎝ ⎠
Ans. (c)

418 Common Proficiency Test (CPT) Volume - II

168. Let t = 3x
∴ dt = 3 dx
1 dt 1 1
∴I= ∫ t2 −1 =
3 3 ∫ t 2 − 12 dt

1 1 ⎛ t −1⎞
= log ⎜ ⎟+c
3 2 +1 ⎝ t +1⎠
1 ⎛ 3x −1 ⎞
= log ⎜ ⎟ +c
6 ⎝ 3x +1 ⎠
Ans. (b)
x −1
169. Let I = ∫ x2 + 1
dx

⎡ x 1 ⎤
∴I = ⎢
2 ∫
⎣⎢ x + 1
− ⎥ dx
x 2 + 1 ⎦⎥
x 1
= ∫ x2 + 1
dx − ∫
x2 + 1
dx

I = I1 – I 2 (say)
x
I1 = ∫ x2 + 1
dx

Let t = x 2 + 1
∴ dt = 2x dx
1 dt
∴ I1 = ∫ t 2
1 −1 / 2
=
2 ∫
t dt

1 t1 / 2
= = t = x2 + 1
2 1/ 2
1
I2 = ∫ x +12
dx

= log ⎛⎜ x + x 2 + 1 ⎞⎟
⎝ ⎠

Common Proficiency Test (CPT) Volume - II 419

ANSWERS

∴ I = I1 – I2

I = x 2 + 1 − log ⎛⎜ x + x 2 + 1 ⎞⎟ + c
⎝ ⎠
Ans. (a)

∫ (1 − x ) log x dx
2
170. Let I =

∴ I = log x (1 − x 2 ) dx
∫
[Here (log x) i s to be take n as first function and (1 – x 2 ) as second function]
Integrating by parts:
⎛ x3 ⎞ 1⎛ x3 ⎞
I = log x ⎜⎜ x − ⎟ − ∫ ⎜x − ⎟ dx
3 ⎟ x ⎜⎝ 3 ⎟
⎝ ⎠ ⎠
⎛ x2 ⎞ ⎛ x2 ⎞
= ⎜x −
⎜ 3
⎟ x log x −
⎟ ∫⎜ 3
⎜ x − ⎟ dx
⎟
⎝ ⎠ ⎝ ⎠
⎛ x2 ⎞ ⎛ x3 ⎞
= ⎜1 −
⎜ 3
⎟ x log x −
⎟ ∫ ⎜ 3 * 3 ⎟⎟ + c
⎜ x −
⎝ ⎠ ⎝ ⎠
⎛ x2 ⎞ ⎛ 3 ⎞
I = ⎜1 − ⎟ x log x − ⎜ x − x ⎟+c
⎜ 3 ⎟ ⎜ 9 ⎟
⎝ ⎠ ⎝ ⎠
Ans. (c)
171. Among 4 doctors, 4 officers and 1 doctor who is also an officer committee of 3 can be
form in such manner.
(i) 1 doctor, 1 officer, 1 doctor who is also officer = 4 C1 × 4 c 1 × 1 = 16

(ii) 2 doctor and doctor – officer = 4 C 2 × 1 =6

(iii) 2 officer and doctor – officer = 4 C 2 ×1= 6

(iv) 2 doctor and 1 officer = 4 C 2 × 4 C 1 = 24

(v) 1 doctor and 2 officer = 4 C 1 × 4 C 2 = 24

Total no. of ways = 16 + 6 + 6 + 24 + 24 = 76

Ans. (a) 76
172. Elector can vote for one or more vacancies in such manner …
(i) For 3 vacancies – 5 C 3 = 10

420 Common Proficiency Test (CPT) Volume - II

 (ii) For 2 vacancies – 5 C 2 = 10

(iii) For 1 vacancy – 5 C1 = 5

∴ Total ways = 10 + 10 + 5 = 25
Ans. (c) 25
173. No. of ways in which 12 different thing distributed in 4 groups.
12 !
= = 15400
(3 !) 4
Ans. (a) 15,400
174. Factor of 420 is = {2, 3, 4, 5, 6, 7, 10, 12, 14, 15, 20, 21, 30, 28, 35, 42, 60,
84, 105, 210, 140, 420}
No. of factor of 420 = 22
Ans. (b) 22.
175. Five balls are kept in 3 boxes as no box will empty
= (5 C × 4 c × 3 c ) × 3 !
1 1 3

= (5 × 4 × 1) × 6 = 120 ways.
Ans. (b) 120 ways.
176. 243 + 324 + 432 + – n terms
3 5 .1 + 3 4 .4 + 3 3 .4 2 + – n terms
∴ a = 35 r =4/3
⎡⎛ 4 ⎞n ⎤
3 5 .⎢⎜ ⎟ − 1⎥
Sn = ⎣⎢⎝ 3 ⎠ ⎦⎥ = 35.3 ⎡⎛ 4 ⎞n ⎤
⎢⎜ ⎟ − 1⎥
⎛4 ⎞ ⎢⎣⎝ 3 ⎠ ⎥⎦
⎜ − 1⎟
⎝3 ⎠
⎡ 4n ⎤
= 3 6 ⎢ n −1⎥
⎣⎢ 3 ⎥⎦

⎡ 4n ⎤
Ans. (a) 3 6 ⎢ n −1⎥
⎢⎣ 3 ⎥⎦

177. S 8 =5.S 4 ⇒
[ ]
a r8 −1
=
[ ]
5 .a r 4 − 1
r −1 r −1
⇒ (r + 1) = 5
4

Common Proficiency Test (CPT) Volume - II 421

ANSWERS

r4 = 4 = ( 2) 4

∴r=± 2
Ans. (c) ± 2
178. 4+44+444 ... n terms
4
= [9 + 99 + 999 + ..... n terms ]
9
4
= [(10 – 1)+(100 – 1) + (1000 – 1) + ... n terms)
9
4 ⎡ 10 (10 n − 1) ⎤ 4 ⎡ 10 (10 n − 1) ⎤
= ⎢ − n⎥ ⇒ ⎢ − n⎥
9 ⎣⎢ 10 − 1 ⎦⎥ 9 ⎢⎣ 9 ⎦⎥

4 ⎡ 10 (10 n − 1) ⎤
Ans. (a) ⎢ − n⎥
9 ⎢⎣ 9 ⎥⎦
a +b
179. = 15 and ab = 9 ∴ ab = 81
2
a = (30 – b) & (30 – b)b = 01
∴ b 2 – 30b + 81 = – 0 ∴ b = 27, 3 and a = 3, 27
∴ Nos are 27, 3
Ans. (a) 27, 3
180. Product of n Gm between two No. is equal to n th Power of single Gm between two nos.
This statement is correct.
Ans. (a) True
181. The weighted arithmetic mean of first a natural numbers whose weights are equal to the
corresponding number is equal to
2n + 1
3
2n + 1
Ans. (a)
3
w 1 x1 + w 2 x 2 + w 3 x 3
182. x =
( x1 + x 2 + x 3 )
100 × 5 = 125 × 5 + w 3 × 5
110 =
15

422 Common Proficiency Test (CPT) Volume - II

 1650 = 500 + 625 + 5.w 3
525
w3 = = 105 kg.
5
Ans. (b) 105 Kgs.
183. ∑ x − n × 2.5 = 50
∑ x − 2.5n = 50 → (i)
∑ x − 3.5n = −50 → (ii)
[Eg. (i) – Eg. (ii)]
1.0n = 100
∴ n = 100 ∴ Σx = 300
Σx 300
∴ mean = = =3
n 100
Ans. (a) 100, 3
184. The most reliable value is mean.
Ans. (a) Mean
185. In which Central Value arranging is required – Median
Ans. (c) Median
186. There are 365 days in a normal year (without leap year)
No. 365 = 7 × 52 + 1
∴ In a year will contain at least 52 Tuesday
The possible remaining one Tuesday
Let A be the event of getting 53 Tuesday in the year.
∴ P (A) = 1/7
Ans. (b)
187. Given two unbiased dice are thrown, then the simple space are:
S = { (1,1), (1,2), (1,3), (1,4), (1,5), (1,6),
(2,1), (2,2), (2,3), (2,4), (2,5), (2,6),
(3,1), (3,2), (3,3), (3,4), (3,5), (3,6),
(4,1), (4,2), (4,3), (4,4), (4,5), (4,6),
(5,1), (5,2), (5,3), (5,4), (5,5), (5,6),
(6,1), (6,2), (6,3), (6,4), (6,5), (6,6)}

Common Proficiency Test (CPT) Volume - II 423

ANSWERS

∴ n(S) = 36
Sample space of sum of the faces is not less than 10
A = {(4,6), (5,5), (5,6), (6,4), (6,5), (6,6)}
n(A) = 6
n ( A) 6 1
∴ Required probability = = =
n(S ) 36 6
Ans. (a)
188. Let A be the person travels by a plane
1
∴ P(A) =
5
Let B be the person travels by a train
2
∴ P (B) =
3
∴ Probability of his travelling neither by plane nor by train.
P(AB) = P(A). P(B) (Since A and B are mutually exclusive conditional probability)
⎛1⎞ ⎛2⎞ 2
= ⎜ ⎟⎜ ⎟=
⎝ 5 ⎠ ⎝ 3 ⎠ 15
Ans. (b)
189. Let A denote the event of drawing a diamond and B denote the event of drawing a King
13 1
from a pack of Cards. Then we have P(A) = =
52 4
4 1
and P(B) = =
52 13
P(AUB) = P(A) + P(B) – P(A ∩ B)
1 1
= + − P ( A ∩ B ) → (1)
4 13
There is only one case favourable to the event A ∩ B vize, king of diamond.
1
Hence, P (A ∩ B) =
52
1 1 1 13 + 4 − 1 16 4
∴ (1) ⇒ P(AUB) = + − = = =
4 13 52 52 52 13
Ans. (c)

424 Common Proficiency Test (CPT) Volume - II

190. Let us define the events:
E 1 : A solves the problem
E 2 : B solves the problem
then we are given
6 6 2
P(E 1 ) = = =
6 + 9 15 5
10 5
and P (E 2 ) = =
10 + 12 11
Assuming that A and B try to solve the problem independently. E 1 and E 2 are
independent.
2 5 2
∴ P (E 1 ∩ E 2 ) = P(E 1 ).P(E 2 ) = × =
5 11 11
The problem will be solved if at least one of the students A and B solves the problem.
Hence, the probability of the problem being solved is given by
P (E 1 ∪ E 2 ) = P (E 1 ) + P (E 2 ) − P (E 1 ∩ E 2 )
2 5 2
= + −
5 11 11
22 + 25 − 10 37
= = = 0 .673
55 55
Ans. (a)

192. Given Mean of Binomial distribution = μ = np = 3 → (1)

and Variance of Binomial distribution = σ2 = npq =.2 → (2)
(2 ) npq 2
⇒ =
(1) np 3
∴q = 2/3
∴p + q = 1
2 1
p = 1– q = 1 − =
3 3
(1) ⇒ n(1/3) = 3
= n=9
∴ p=1/3, q = 2/3, n=9
By the Binomial distribution p(x) = nC x p x q n – x . The probability that the variate takes
values less than or equal to 2

Common Proficiency Test (CPT) Volume - II 425

ANSWERS

i.e. p (x < 2) = p(x = 0) + P (x = 1) + P (x = 2).

= 9C 0 (1/3) 0 (2/3) 9 – 0
+ 9C 1 (1/3) 1 (2/3) 9 – 1
+ 9C 2 (1/3) 2 (2/3) 9 – 2
= 9C 0 (1) (2/3) 9
+ 9C 1 (1/3) 1 (2/3) 8 + 9C 2 (1/3) 2 (2/3) 7
= (2/3) 9 + 3 (2/3) 8 + 4 (2/3) 7
P(x < 2) = 0.3767
Ans. (a)
193. Exhaustive cases: 2 digits can be selected out of 9 digits 1 through 9 in 9 C 2 ways.
9×8
∴ Exhaustive number of cases = 9 C 2 = = 36
1× 2
Favoarable number of cases. Among the digits 1 through 9.
Even digits are: 2, 4, 6 and 8 i.e. 4 in all
Odd digits are 1, 3, 5, 7 and 9 i.e. 5 in all.
The sum of the two digits drawn will be even if
(i) Either both the selected digits are even (or)
(ii) both the selected digits are odd.
Two even digits can be selected out of the 4 even digits in 4 C 2 ways and two odd digits
can be selected out of the 5 odd digits in 5 C 2 ways.
Hence, the favourable number of cases that the sum of the two selected digits in even.
= 4 C 2 + 5C 2
4 ×3 5×4
= +
1× 2 1× 2
= 6+10 = 16
∴ P (sum of the two selected digits is even)
Number of favourable cases
=
Exhaustive number of cases
16 4
= =
36 9
5 C 2 10 5
and P(Both selected digits are odd) = = =
9 C 2 36 18
Ans. (e)

426 Common Proficiency Test (CPT) Volume - II

194. Let S be the sample space of the experiment
∴ S = {(1,1), (1,2), ... (6,5), (6,6)}
Let A = event of getting sum 6
and B = event of getting 4 at least once.
∴ A = {(1,5), (2,4), (3,3), (4,2), (5,1)}
and B = {(4,1), (4,2), (4,3), (4,4), (4,5), (4,6), (1,4), (2,4), (3,4), (5,4), (6,4)}
11
∴ P(A) = 5/36 and P(B) =
36
Also, AB = {(4,2), (2,4)}
2
∴ P(AB) =
36
∴ The required probability
= Probability of getting 4 on at l east one die given that sum is 6
P (BA) P ( AB)
= P(B|A) = =
P ( A) P ( A)
2 / 36 2
= =
5 / 36 5
Ans. (b)
σ
196. Standard Error of mean =
n
12 .6 12 .6
= =
36 6
Standard Error of mean = 2.1
Ans. (a) 2.1
197. Standard Error of Mean without replacement
σ N−n
=
n N −1

12 .6 101 − 36
= = 2 .1 × 0 .65
36 101 − 1
SE = 2.1 × 0.806 = 1.69
Ans. (b) 1.69

Common Proficiency Test (CPT) Volume - II 427

ANSWERS
5 1
198. P = =
25 5
1 4
Q = 1− =
5 5
n = 5
PQ
S.E. of proportion of defectives =
n
1 4 1
= × × = 0 .032
5 5 5
SE = 0.1088
Ans. (b) 0.1088
199. n = 2, N = 4
Total number of possible sample of size of with replacement = 4 2 = 16
Ans. (a) 16
200. n = 2, N=4
Total number of possible sample of size without replacement = NC n = 4 C 2 = 6

Ans. (b) 6

Model Test Paper – BOS/CPT – 10 / 2007

151. The value of 3 3 + 4 3 + 5 3 + ..... + 113

[ ]
2
⎡ 11(11 + 1) ⎤ 3 3
= ⎢ 2 ⎥ − 1 +2
⎣ ⎦

= (11 × 6 )2 − (1 + 8 )
= (66 )2 − (9 )
= 4356 – 9 = 4347
Ans. (c)
152. Let the two numbers are x and y
Given x + y = 75 → (1)
x – y = 20 → (2)

428 Common Proficiency Test (CPT) Volume - II

 (1)+(2) ⇒ 2x = 95
95
x =
2
95
∴ (1) ⇒ = 75 –
2
55
=
2
∴ The difference of their squares = x 2 − y 2
2 2
⎛ 95 ⎞ ⎛ 55 ⎞
= ⎜ ⎟ −⎜ ⎟
⎝ 2 ⎠ ⎝ 2 ⎠
9025 3025
= −
4 4
6000
= = 1500
4
Ans. (a)
153. Let the two numbers are x and y
Given x + y = 13 → (1)
and x 2 + y 2 = 85 → (2)
(1) ⇒ y = 13 – x
Substitute y = 13 – x in (2)
x 2 + (13 − x) 2 = 85

x 2 + 169 + x 2 − 26 x − 85 = 0

2 x 2 − 26 x + 84 = 0

x 2 − 13 x + 42 = 0
(x − 7 ) (x − 6 ) = 0
x =7, x = 6
When x = 7 (1) ⇒ y = 13 – 7 = 6
When x = 6 (1) ⇒ y = 13 – 6 = 7
∴ The number (7, 6)
Ans. (a)

Common Proficiency Test (CPT) Volume - II 429

ANSWERS

154. Let the two consecutive members are x and x – 1

Given x 2 − ( x − 1) 2 = 37

x 2 − ( x 2 + 1 − 2 x) = 37

x 2 − x 2 − 1 + 2 x = 37
2x = 38
x = 19
∴ x – 1 = 19 – 1 = 18
Ans. (a)
155. Let the number be x.
x
Given condition (1) → (1)
x+3
x+7
Given condition (2) ⇒ =2
x+3 −2
x + 7 = 2 (x+1)
= 2x + 2
x=5
5 5
∴ (1) ⇒ =
5+3 8
1
156. Given log x 3 =
6
1
x6 = 3

x= ( 3) 6

= ( 3) ( 3) ( 3)
2 2 2

=3×3×3
x = 27
Ans. (b)
157. Let y = a log a x
Taking log on both sides
[
log y = log a log a x ]

430 Common Proficiency Test (CPT) Volume - II

 = log a x. log a
log y = log x [ ∵ log ba . log bc = log ac By properties]
Taking Exponent on both sides.
e log y = e log x
y log e = x log x
y=x
Ans. (a)
158. Let y = 3 2 −log 3 6

= 3 2 .3 − log 3 6
= 9 .3 −[log 3 ( 3 x 2 ) ]
= 9 .3 −[log 3 3 +log 3 2 ]
= 9 .3 −[1+log 3 2 ]
= 9 .3 −1.3 − log 3 2
= 3 .3 log 3 (1 / 2 )
= 3.(1/2) [ ∵ a log a x = x properties]
∴ y = 3/2
Ans. (b)
159. log 30 = log (2×3×5)
= log 2 + log 3 + log 5
= 0.3010 + 0.4771 + 0.6990
= 1.4771
Ans. (c)
160. log 10 124.5 + log 10 379 = log 10 (12.45 × 10)
+ log 10 (3.79 × 100)
= log 10 12.45 + log 10 10
+ log 10 3.79 + log 10 100
= 1.0952 + 0.5786 +2
∴ log 10 124.5 + log 10 379 = 4.6738
Ans. (b)

Common Proficiency Test (CPT) Volume - II 431

ANSWERS
n! n! 2
161. n P5 : n P3 = 2 :1 ⇒ ÷ =
(n − 5 )! (n − 3 ) ! 1
(n − 3 ) ! 2
⇒ = ⇒ (n – 3) (n – 4) = 2.1
(n − 5 ) ! 1
∴ n–3 =2⇒n=5
Ans. (b) 5
162. No. of ways to enter into room = 10
No. of ways to came out from a different door = 9
∴ Total Ways = 10.9 = 90 ways
Ans. (a) 90
163. Five digit Nos. by using digit (1, 2, 3, 4, 6) = 5! = 120
Four digit nos. by using digit (1, 2, 3, 4, 6) = 5 P 4
= 120
∴ Total Nos. greater than 1000 = 120 + 120
= 240
Ans. (c) 240
164. Total Nos. of 6 digit (greater than 1 lakh)
6!
by using (1, 1, 1, 2, 2, 3) are =
3! 2!
= 60
Ans. (a) 60
165. No. of ways in which 17 billiard can be arranged.
If 7 are black, 6 red and 4 white are
17 !
= = 4084080
7! 6! 4!
Ans. (b) 4084080
xe x
166. Let I = ∫ (x + 1)2 dx
(x + 1 − 1) ex dx
= ∫ (x + 1)2

432 Common Proficiency Test (CPT) Volume - II

 (x + 1)e x dx − e x dx
= ∫ (x + 1)2 ∫ (x + 1)2
ex ex
= ∫ (x + 1)
dx − ∫ (x + 1)2 dx
= I1–I2
e x dx
I = ∫ ( x − 1)
Integrating by parts.
1 x ⎛ 1 ⎞ x
I1 = e − ∫ ⎜⎜ − 2
⎟⎟ e dx
1+ x ⎝ ( x + 1) ⎠
1 1 ex
∴I = ex + ∫ e x
dx − ∫ ( x + 1)2 dx
(1 + x) ( x + 1) 2
1
I = ex
(1 + x)
Ans. (b)
x ( x − 1) x +1− 2 x
167. ∫e ( x + 1) 3
dx = ∫
( x + 1) 3
e dx

x⎧
⎪ 1 2 ⎫⎪
= ∫e ⎨ − ⎬dx
⎪⎩ ( x + 1) ( x + 1) 3 ⎪⎭
2

∫ e {f(x )+ f′(x )}dx

x
=

1
Where f(x) =
( x + 1) 2

= e x f( x) + c

e x ( x − 1) ex
∫ ( x + 1)3 dx =
(x + 1)2
+c

Ans. (c)
168. Let t = x +1
t2 = x + 1
2t dt = dx

Common Proficiency Test (CPT) Volume - II 433

ANSWERS
1
∴I= ∫ (x2 − 4) x +1
dx

2 t dt
= ∫ [t ( t 2 − 1)2 − 4 ]
dt
= 2 ∫ (t 2 − 1)2 − 2 2
dt
= 2 ∫ (t 2 − 1 + 2) (t 2 − 1 − 2)
dt
= 2 ∫ (t 2 + 1) (t 2 − 3)
1
We resolve into partial fractions
( t + 1) ( t 2 − 3 )
2

Let z = t 2
1 1
2 2
=
( t + 1) ( t − 3 ) ( z + 1) ( z − 3 )

1 A B
Let = +
( z + 1) ( z − 3 ) ( z + 1) z − 3
Multiplying by (z + 1) (z – 3), we get
1 = A (z – 3) + B (z + 1)
We put z = –1, 3
Z = –1, 1 = A (–4) + B (0)
∴ A = –1/4
z = 3, 1 = A (0) + B (4)
∴ B = 1/4
1 −1/ 4 1/ 4
= +
( z + 1) ( z − 3 ) z +1 z − 3
−1 1
= 2
+ 2
4 ( t + 1) 4(t − 3)

⎡ 1 1 ⎤
∴ I=2 ∫ ⎢⎣ 4(t 2 − 3) − 4(t 2 + 1) ⎥⎦ dt

434 Common Proficiency Test (CPT) Volume - II

 2⎡ 1 ⎛t− 3 ⎞⎤
= ⎢ log⎜⎜ − tan −1 ( t ) ⎟⎟⎥
4 ⎣⎢ 2 3 ⎝ t + 3 ⎠⎦⎥

1 ⎡ x + 1 − 3 ⎤ 1 −1
= log ⎢ ⎥ − tan x +1 + c
4 3 ⎣⎢ x + 1 + 3 ⎥⎦ 2
dx dx
169. ∫ x 2 − a 2 = ∫ (x − a ) (x + a )
1 ⎛ 1 1 ⎞
∫ 2a ⎜⎝ x − a − x + a ⎟⎠ dx
1 ⎡ dx dx ⎤
= ∫
2 a ⎢⎣ x − a
− ∫
x + a ⎥⎦
1
= [log (x − a ) − log (x + a )]
2a
dy 1 ⎡x −a ⎤
∫ x2 − a 2 =
2a
log ⎢ ⎥
⎣x + a ⎦
1 dx
170. ∫ a 2 − x 2 dx = ∫ (a + x ) (a − x )
⎛ −1 ⎞ ⎡ 1 1 ⎤
= ∫ ⎜⎝ 2a ⎟⎠ ⎢⎣ a + x − a − x ⎥⎦ dx
1 ⎡ 1 1 ⎤
= − ⎢ ∫
2a ⎣ a + x
dx − ∫
dx ⎥
a −x ⎦
1
= − [log(a + x ) − log (a − x )]
2a
−1 ⎡a + x ⎤
= log ⎢ ⎥
2a ⎣a − x ⎦

171. e x − y + log xy + xy = 0
d.wr.t.u.
⎛ dy ⎞ 1 ⎡ dy ⎤ ⎡ dy ⎤
e x−y ⎜ 1 − ⎟ + ⎢ x + y.1⎥ + ⎢ x + y.1⎥ = 0
⎝ dx ⎠ xy ⎣ dx ⎦ ⎣ dx ⎦
dy 1 dy 1 dy
e x −y − e x −y . + + +x +y =0
dx y dx x dx

Common Proficiency Test (CPT) Volume - II 435

ANSWERS

⎛ x −y 1 ⎞ dy 1
⎜⎜ − e + + x ⎟⎟ = − e x −y − − y
⎝ y ⎠ dx x

1 dy 1
( xy + 1 − y.e x.y ) = − ( x.e x − y + 1 + xy )
y dx x

dy − y ⎛⎜ x.e x − y + 1 + xy ⎞⎟
∴ = .
dx x ⎜⎝ 1 + xy − y.e x − y ⎟⎠

Ans. (d) None of these

172. y = x log (log x )
log y = log (log x) . log x
1 dy 1 1 1
. = log (log x). + (log x). .
y dx x (log x) x
dy y
∴ = [log (log x) + 1]
dx x
y
Ans. (a) [log (log x) + 1]
x
1
173. y = x +
1
x+
x
x3 + x + x x3 + 2 x
y= = 2
x2 + 1 x +1
( )( )(
dy x 2 + 1 3 x 2 + 2 − x 3 + 2 x (2 x )
=
)
dx x2 + 1 ( )
2

3x4 + 3 x2 + 2 x2 + 2 − 2x4 − 4 x2
=
(x + 1)
2 2

dy x 4 + x 2 + 2
=
dx ( x 2 + 1) 2

x4 + x2 + 2
Ans. (a)
( x 2 + 1) 2

436 Common Proficiency Test (CPT) Volume - II

 y x
174. + =6
x y

y+x
= 6 ⇒ x+y = 6 xy
xy

dy 6 ⎛ dy ⎞
∴ 1+ = ⎜ x + y. 1 ⎟
dx 2 xy ⎝ dx ⎠

⎛ ⎞
⎜ 1 − 3 x ⎟ dy = 3 y − 1
⎜ y ⎟⎠ dx x
⎝

y
dy
= x
−1
3
3 y− x ( ) y
dx
1− 3
x
⇒
y −3 x ( ) x
y

⎛ x+y⎞
3y − ⎜ ⎟
dy 3 y − xy ⎝ 6 ⎠
= =
dx xy − 3 x ⎛ x + y ⎞ − 3 x
⎜ ⎟
⎝ 6 ⎠
dy 17 y − x x − 17 y
= =
dx y − 17 x 17 x − y
x − 17 y
Ans. (c)
17 x − y
3
175. 47
C4 + ∑ 50 − i C 3
i=0

⇒ 47 C 4 + 50 C 3 + 49 C 3 + 48 C 3 + 47 C 3

⇒ 178365 + 19600 + 18424 + 17296 + 16215

⇒ 249900
Ans. (a) 249900
176. a = 100
S 6 = 5. S 6
6 6
[2 a + (6 − 1)d ] = 5 . [2 (a + 6 d ) + (6 − 1)d ]
2 2
3 [200 + 5d] = 15 [200+12d + 5d]

Common Proficiency Test (CPT) Volume - II 437

ANSWERS

200+5d = 1000 + 85d

80d = – 800 ⇒ d = –10
Ans. (a) – 10
177. S n = 3n 2 + n
∴ S1 = 4 ∴ a1 = 4
S 2 = 14 a 2 = 14 – 4 = 10 ∴d=6
S 3 = 30 a 3 = 30 – 14=16
∴ Tp = a + (p – 1) d
= 4 + (p – 1) 6
Tp = (6p – 2)
Ans. (b) (6p – 2)
178. S m = S n
m n
[2 a + (m − 1)d ] = [2 a + (n − 1)d ]
2 2
2ma – 2na = (n 2 − n)d − (m 2 − m )d
2a (m – n) = (n2 – n – m 2 – m)d
2a (m – n) = –(m – n) (m+n – 1)d
∴ 2a = –(m+n – 1)d
m+n
S m+n = [2a + (m+n – 1)d]
2
m+n
[(–m+n – 1)d + (m+n – 1)d]
2
S m+n = 0
Ans. (a) 0
9 7
179. − ,−2 ,− ..... 0
4 4
9 9 1
a= – d = –2 + =
4 4 4
9 1 9 1
0=– + (n −1) ⇒ = (n − 1)
4 4 4 4
⇒ 9 = n – 1 ⇒ n=10
Ans. (b) 10th term

438 Common Proficiency Test (CPT) Volume - II

180. 6.T 6 = 15.T 15
∴ 6 (a+5d) = 15 (a+14d)
2a + 10d = 5a + 70d
3a = –60d ∴ a = –20d
T 21 = a + 20d
= –20 d + 20d
T 21 = 0
Ans. (c) 0
181. The average of n numbers is x.
If any no.is multiplied to each of datas. Then average will also multiplied by such no.
∴ New average = (n + 1) x
Ans. (c) (n + 1) x.

182. Av =
∑ x ⇒ 1.5 = ∑ x
n δ
= ∑ x = 12 kg. (increased weight)
∴ Weight of New person = 65 + 12 = 77 kg.
Ans. (c) 77 Kg.
183. If passes students = x
39 x + 15 (120 − n)
∴ 35 =
120
4200 = 39x + 1800 – 15x
2400 = 24x
∴ x = 100
Passed Students = 100
Ans. (a) 100

184.
∑ x = 45
17

∑ x = 765
Total of first 9 numbers = 9 × 51 = 459
Total of last 9 numbers = 9 × 36 = 324
∴ Value of 9th number = (459 + 324) – 765

Common Proficiency Test (CPT) Volume - II 439

ANSWERS
= 18
Ans. (c) 18
185. ∑ x = 11 × 30 = 330
Total of first five numbers = 5 × 25 = 125
Total of last five numbers = 5 × 28 = 140
∴ Value of 6th number = (125 + 140) ~ 330 = 65
Ans. (b) 65
186. Ans. (a) Refer properties
187. Ans. (b) Refer Properties.
188. Let A be the hearts playing cards in a part. Let B be the club playing cards in a part.
13
∴ P(A) =
52
13
P(B) =
52
Here A and B are mutually exclusive.
13 13 26 1
∴ P (A ∪ B ) = P ( A) + P (B) = + = =
52 52 52 2
189. Total number of balls in the bag = 6 + 4 = 10
Since three balls are drawn out of 10 balls in 10 C 3 ways
∴ Exhaustive number of Cases = 10 C 3 = 120
The number of favourable cases two balls are blue and balls is red
= 6C 2 x 4C 1
= 60
6c 2 × 4c 1
∴ Probability of 2 balls are blue and 1 is red =
10 c 3
60
= =½
120
Ans. (c)
190. There are 366 days in a leap year.
Now 366 = 7 x 52 + 2
∴ The leap year will contain at least 52 Mondays. The possible combination for the
remaining two days are:

440 Common Proficiency Test (CPT) Volume - II

 (i) Sunday and Monday
(ii) Monday and Tuesday
(iii) Tuesday and Wednesday
(iv) Wednesday and Thursday
(v) Thursday and Friday
(vi) Friday and Saturday
(vii) Saturday and Sunday
Let A be the event of getting 53 Mondays in the leap year. Therefore, only those
combinations will be favourable to the event A which contain "Monday"
∴ The combination (i) and (ii) are favourable to the happening of A
∴ P(A) = 2/7
Ans. (a)
191. Given P(A) = 1/3
P(B) = 3/4
and A and B are independent events
P (A ∪ B ) = 1 − P (A ∩ B )1

= [
1 − P(A1 ).P(B1 ) ]
= 1– {[ 1− P(A)] [1− P (B)]} [A and B are independent]

⎡ ⎛ 1 ⎞ ⎛ 3 ⎞⎤
= 1 –⎢ ⎜ 1 − ⎟ ⎜ 1 − ⎟⎥
⎣ ⎝ 3 ⎠ ⎝ 4 ⎠⎦
⎧⎛ 2 ⎞ ⎛ 1 ⎞⎫
= 1 – ⎨⎜ ⎟ ⎜ ⎟⎬
⎩⎝ 3 ⎠ ⎝ 4 ⎠⎭
⎡1⎤ 5
P P (A ∪ B ) = 1 − ⎢ ⎥ =
⎣6 ⎦ 6
Ans. (b)
192. Out of given 4 letters, there are two letters are vowel (O,E). Let A be the first letter is
vowel.
P(A) = 2/4
Let B be the second letter is vowel
P(B) = 1/3
Here A and B are independent

Common Proficiency Test (CPT) Volume - II 441

ANSWERS

P(AB) = P(A).P(B)
2 1
= . = 1/6
4 3
Ans. (a)
193. Out of given 4 letters, there are two letters are vowel (O, E)
Let A be the first letter is vowel.
i.e. P(A) = 2/4
Let B be the second letters is vowel.
P(B) = 1/3
Here A and B are Mutually executive
∴ P (A ∪ B ) = P(A) + P (B)
2 1 6 + 4 10 5
= + = = =
4 3 12 12 6
Ans. (a)
194. Let A be the first letter selected M from the 'HOME'.
B be the second letter selected M from the 'HOME'
P(A) = 1/4, P(B) = 1/4
A and B are Mutually exclusive
∴ P(AUB) = P(A) + P(B)
1 1 2 1
= + = =
4 4 4 2
Ans. (b)
195. By addition thereon
P(A or B) = P(A) + P(B)
0.65 = [1 – P('not A)] + p
= [1 – 0.65] + p
∴ p = 0.65 – 0.35
p = 0.30
Ans. (c)
197. Since f(x) is a Polynomial.
& a 1 , a 2 , a 3 are in AP
∴ f(a 1 ), f(a 2 ), f(a 3 ) also in AP

442 Common Proficiency Test (CPT) Volume - II

 ∴ f ′(a 1 ), f ′(a 2 ), f ′(a 3 ) also in AP
Ans. (a) AP
⎡ (1 + i)n ⎤
198. A = P ⎢ − 1⎥
⎣⎢ i ⎥⎦

⎡ (1.04 )10 ⎤
20,000 = P ⎢ −1⎥
⎣⎢ 0 .04 ⎥⎦
After solving we get
P = 2470 (Approx)
Ans. (a) 2470
199. byx = 1.2 & bxy = – 0.5
This is wrong because bxy and byx have same sign.
Ans. (b) false.
200. The mean of poison distribution is 1.6 and variance is 2. This is wrong because P – d will
greater than 2
Ans. (b) false.

Common Proficiency Test (CPT) Volume - II 443

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450 Common Proficiency Test (CPT) Volume - II