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CPT Model Question Papers

  1. A sold 1000 tins of oil to B without appropriating any particular oil to the contract. B sold 600 tins out it to C and gave delivery order addressed to A. C lodged the delivery order with A requesting him to "await" his orders. Meanwhile, B became insolvent and thus A became the unpaid seller.

    (a) A can exercise his right of lien and refuse to make delivery to C.
    (b) A cannot exercise his right of lien and refuse to make delivery to C.
    (c) C has claim over the goods in possession of A.
    (d) None of the above.

  2. It is generally assumed that the business will not liquidate in the near foreseeable future because of.

    (a) Periodicity
    (b) Materialityc
    (c) Matching
    (d) Going concern

  3. Which of the following is correct?

    (a) Capital is equal to assets plus liabilities
    (b) Assets is equal to liabilities minus capital
    (c ) Liabilities is equal to capital plus assets
    (d) Capital is equal to assets minus liabilities.

  4. Double column cash book records

    (a) Only cash transactions
    (b) All transactions
    (c) Cash and bank transactions
    (d) Cash purchase and cash sale transactions.

  5. Errors of commission do not permit:

    (a) Correct totaling of the trial balance
    (b) Correct totaling of the Balance sheet,
    (c ) Trial balance to agree
    (d) None of the above.

  6. All of the following have debit balance except one. That account is:

    (a)Wages account
    (b) Debtors accounts
    (c ) Bills payable account
    (d) Goodwill.

  7. The term depletion is used for

    (a) Fixed Assets
    (b) Natural resources
    (c) Intangible assets
    (d) None of the three.

  8. A Bill of exchange requires

    (a) Noting
    (b) Registration
    (c) Acceptance
    (d) None of the above.

  9. According to the provisions of Reserve Bank of India Act, a promissory note cannot be made payable to the:

    (a) Bank
    (b) Endorser
    (c ) Bearer
    (d) None of the above.

  10. Rs. 5,000 spent to remove a worn out part and replace it with a new one is

    (a) Capital expenditure
    (b) Revenue expenditure
    (c) Deferred revenue expenditure
    (d) None of the above.

  11. Outstanding salary account is:

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

  12. Drawings are deducted from ________________

    (a) Sales
    (b) Purchases
    (c ) Expenses
    (d) Capital.

  13. The trail balance of Meghna shows the opening stock of Rs. 10,000, it will be ________________

    (a) Debited to the trading account
    (b) Credited to the trading account,
    (c ) Deducted from closing stock in the balance sheet
    (d) Added to closing stock in the balance sheet.

  14. Purchase returns appearing in the trial balance are deduced from __________________

    (a) Sales returns
    (b) Capital
    (c ) Sales
    (d) Purchases.

  15. ____________ Will generally show a debit balance.

    (a) Bank Loan
    (b) Bad debts recovered
    (c ) Salary Payable
    (d) Drawings.

  16. Purchase of a fixed assets on credit basis is recorded in ________________

    (a) Cash Book
    (b) Purchases Book
    (c) Journal proper
    (d) None of the above.

  17. Accounting means recording of _________________

    (a) Transactions
    (b) Events
    (c ) Both (a) and (b)
    (d) Neither (a) nor (b).

  18. Unless given otherwise, the ratio of sacrifice is the same as _______________

    (a) New profit sharing ratio
    (b) Equal ratio
    (c ) Old profit sharing ratio
    (d) None of the above.

  19. The ratio in which the continuing partners acquire the outgoing (Retired or deceased) partner's share is called _____________

    (a) Sacrificing ratio
    (b) Gaining ratio
    (c ) New Profit sharing ratio
    (d) Old profit sharing ratio.

  20. A Bill of exchange is called a __________ by one who is liable to pay it on the due date.

    (a) Bill receivable
    (b) Noted bill of exchange
    (c ) Bill payable
    (d) None of the above.

  21. The amount of calls in arrear is deducted from ___________ to arrive at ______________

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

  22. If a machinery is purchased for Ra. 1,00,000, the asset would be recorded in the books at Rs.1,00,000 even if its market value at that time happens to be Rs. 1,40,000. In case a year after, the market value of this asset comes down to Rs. 90,000, it will ordinarily continue to be shown at Rs. 1,00,000 and not at Rs. 90,000 due to.

    (a) Realization concept
    (b) Present value concept
    (c) Replacement concept
    (d) Cost concept.

  23. Mr. Shyam deposited a cheque on 28th March, 2006 for a sum of Rs. 10,000. The cheque was collected on 4th April, 2006. If the Bank balance as per cash book on 31st March, 2006 is Rs. 1,00,000, balance as per pass book will be:

    (a) Rs. 1,10,000
    (b) Rs. 90,000
    (c ) Rs. 1,00,000
    (d) None of the above.

  24. If cost of goods sold is Rs. 100,000, sales is Rs. 1,25,000, closing stock is Rs. 20,000, the gross profit will be

    (a) Rs. 45,000
    (b) Rs. 5,000
    (c) Rs. 25,000
    (d) None of the three.

  25. X enters into a joint venture with Y. The goods were purchased by X and Y amounting Rs. 20,000 and Rs. 40,000 respectively. Y incurred the expenses of Rs. 5,000 and received cash of Rs.1,000. Goods were sold by X and Y amounting Rs. 22,000 and Rs. 39,000. Goods unsold were taken over by Y for Rs. 2,000. The profit or loss on joint venture is.

    (a) Profit of Rs. 2,000
    (b) Loss of Rs. 2,000
    (c ) Profit of Rs. 1,000
    (d) Loss of Rs. 1,000.

  26. On 1st January, 2006, Mohan draws upon Sohan a bill of exchange at three months of Rs. 2,000 for mutual accommodation. On 4th January, 2006 Mohan discounts the bill @ 6% per annum and sends half of the

    (a) Rs. 1,000
    (b) Rs. 970
    (c ) Rs. 985
    (d) Rs. 2,000.

  27. ABC Ltd. Sells goods to its approved customers on sale or return basis at a profit of 20% on sales, treating as actual sales. On 26th March, 2006 goods costing Rs. 10,000 were sent to Annu Ltd. No confirmation has been received from Annu Ltd. Till 31st March, 2006. The amount of stock with customers to be shown as closing stock in the balance sheet of ABC Ltd. As on 31st March, 2006 will be.

    (a) Rs. 12,500
    (b) Rs. 8,000
    (c ) Rs. 10,000
    (d) NIL

  28. Somesh and Ramesh are equal partners. Their capitals are Rs. 40,000 and Rs. 80,000 respectively. The accounts of the year were closed before providing interest @ 5% per annum as per partnership agreement. To rectify this mistake they decided to pass an adjustment entry between the partners. Therefore, Somesh account need to be debited by.

    (a) Rs. 2,000
    (b) NIL
    (c ) Rs. 1,000
    (d) None of the above

  29. A, B and C are paertners in the ratio of 3:2:1. D is admitted in the firm for 1/6th share in profits. C would retain his original share. The new profit sharing ratio between A, B C and D will be.

    (a) 12:8:5:5
    (b) 8:12:5:5
    (c ) 5:5:12:8
    (d) 5:5:8:12.

  30. Menu and Renu are partners sharing profits and losses in the ratio of 2:3 with capitals of Rs. 20,000 and Rs. 10,000. The partnership deals provides for interest on capital @ 6% per annum. Trading profits of the firm for the year ended 31st March, 2006 are Rs. 1,500. The amount of profit or loss apportioned between Menu and Renu are

    (a) Loss of Rs. 300
    (b) No Profit no loss
    (c ) Profit of Rs. 1,000
    (d) Profit of Rs. 1,500.

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