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Chapter 1 : Accounting : An Introduction Unit 1 : Meaning and Scope of Accounting

[1] Rs. 5000 paid as rent of office premises in an/a ____ (a) Event (b) Transaction (c) Both (d) None. [2] Which of the following is correct ? Owner’s Equity is (a) (Current Asset + Fixed Asset) + (Current Liabilities + Long

term Liabilities) (b) (Current Asset + Fixed Asset) − (Current Liabilities + Long

term Liabilities) (c) (Current Asset − Fixed Asset) − (Current Liabilities + Long

term Liabilities) (d) None of the above. [3] If owner’s capital is Rs. 50,000 liability is Rs. 30,000 and fixed

assets is Rs. 70,000, then what is the value of current assets ? (a) Rs. 10,000 (b) Rs. 40,000 (c) Rs. 80,000 (d) Rs. 1,00,000 Unit 2 : Accounting Concepts, Principles and Conventions

[4] Provision for discount is made due to concept of (a) Conservatism (b) Matching (c) Both (a) and (b) (d) Materiality [5] The three fundamental accounting assumptions are (i) Accrual (ii) Conservatism (iii) Going Concern (iv) Consistency (v) Matching

Appendix 2009 - June

Paper - 1 : Fundamentals of Accounting



8 CPT Appendix 2009 - June

(a) (ii), (iii) and (iv) (b) (i), (iii) and (iv) (c) (ii), (iv) and (v) (d) (iii), (iv) and (v) [6] Debtors - Rs. 50,000. A provision for bad debt is created @ 5%

according to which concept ? (a) Conservatism (b) Matching (c) Accrual (d) Dual Aspect [7] Outstanding expenses is included in Profit & Loss A/c at the year

end according to which concept ______ (a) Matching (b) Full disclosure (c) Accrual (d) Going Concern

Chapter 2 Accounting Process Unit 1 : Basic Accounting Procedures – Journal Entries

[8] Unexpired expense is______ account. (a) Real (b) Nominal (c) Personal (d) Representative Personal [9] Rs. 1500 withdrawn for personal use should be debited to______ (a) Expense Account (b) Purchases Account (c) Sales Account (d) Drawings Account [10] Narration is given along with journal entry : (a) To signify the impact of entry on profitability (b) To disclose the profit or loss of the transaction. (c) To give a precise explanation for proper understanding of the

entry. (d) To secretly understanding the inner meaning of entries. [11] Goods worth Rs. 10,000 were withdrawn by the proprietor for his

personal use. The account to be credited is (a) Sales A/c (b) Drawings A/c



CPT Appendix : (Paper 1) Fundamentals of Accounting 9

(c) Purchases A/c (d) Expenses A/c Unit 2 : Ledgers

[12] Purchase Return Account always shows a ______ balance. (a) Debit (b) Credit (c) Either (a) or (b) (d) None [13] A opened an account with Rs. 5,000 on 3/12/09. He deposited

Rs. 1,000 on 7/12/09. He withdraw Rs. 2,000 on 15/12/09 and deposited a cheque of Rs. 10,000 on 20/12/09. What is the balance on 31/12/09

(a) Rs. 18,000 (b) Rs. 14,000 (c) Rs. 4,000 (d) None Unit 3 : Trial Balance

[14] Trial Balance creates ______ accuracy. (a) Principle (b) Arithmetical (c) Clerical (d) None. Unit 4 : Subsidiary Books

[15] Following are not subsidiary books : (a) Sales book (b) Cash book (c) Purchase book (d) Bills Receivable Book [16] Purchase of furniture on credit should be recorded in______ (a) Purchase book (b) Sales book (c) Cash book (d) Journal Unit 5 : Cash Books

[17] Interest received of Rs. 100 was recorded as interest paid. What will be the effect on cash balance?

(a) Cash will reduce by 100. (b) Cash will increase by 200.




(c) Cash will reduce by 200. (d) No effect on cash balance. [18] What will be the effect when return inward is wrongly entered as

return outward ? (a) Gross Profit is increased by Rs. 100. (b) Gross Profit is decreased by Rs. 100. (c) Gross Profit is increased by Rs. 200. (d) Gross Profit is decreased by Rs. 200. [19] Total of sales book was understated by Rs. 200. Rectification entry

will be : (a) Sales A/c Debit, Suspense A/c Credit (b) Suspense A/c Debit, Sales A/c Credit (c) Debtor A/c Debit, Sales A/c Credit (d) Sales A/c Debit, Debtors A/c Credit [20] Sale of old furniture is erraneously entered in sales book.

Rectification entry will be : (a) Debit Sales A/c, Credit Furniture A/c (b) Debit Furniture A/c, Credit Sales A/c (c) Debit Debtor A/c, Credit Furniture A/c (d) Debit Sales A/c, Credit Debtor A/c

Chapter 3 : Bank Reconciliation Statement [21] Bank Reconciliation statement is : (a) A part of Pass Book (b) A statement prepared by bank. (c) A cash book related to cash column (d) A statement prepared by customers.

Chapter 4 : Inventories [22] In conditions of inflation, which method will lead to the lowest

value of stock ? (a) FIFO (b) LIFO (c) Average price method (d) Weighted average pricing method.

Chapter 5 : Depreciation Accounting

[23] Price of the computer = Rs. 50,000 Residual value = Rs. 10,000 Hours worked for the year = 6000 hrs.




Estimated life of computer = 20,000 hrs. calculate the amount of depreciation

(a) Rs. 15,000 (b) Rs. 12,000 (c) Rs. 20,000 (d) Rs. 24,000 [24] A machine was purchased for Rs. 50,000. Installation expenses

amounted to Rs. 2,000 wages of Rs. 4,000 were paid on installation. The scrap value at the end of its useful life of 10 years is Rs. 6,000. Repairs of Rs. 6,000 was made after 6 months from the date of purchase. Calculate depreciation

(a) Rs. 5,600 (b) Rs. 4,800 (c) Rs. 5,000 (d) None [25] Which method of depreciation is suitable when expenditure on

repairs and maintenance, increases as the machine grows old ? (a) Reducing balance method (b) Straight line method (c) Machine hour rate method (d) Sinking fund Method.

Chapter 6 : Preparation of Final Accounts of sole Proprietors

[26] ______. is a summary of all assets and liabilities on a particular date.

(a) Trial Balance (b) Profit and Loss Account (c) Balance Sheet (d) Funds Flow Statement [27] If the profit is 25% on sales, then what percentage of profit is on

cost. (a) 33 % (b) 20 % (c) 40 % (d) 50 % [28] Sales = Rs. 3,00,000; G.P. on sales is 20 % Purchases = Rs.

2,40,000; Opening stock = Rs. 20,000 Find closing stock. (a) Rs. 20,000 (b) Rs. 24,000




(c) Rs. 16,000 (d) Rs. 12,000 [29] At the end of Trial Balance, the following adjustments are given

stock destroyed - Rs. 20,000 Insurance claim received Rs. 16,000. The effect of the above adjustments will be shown in:

(a) Trading Account (b) Profit and Loss Account (c) Balance Sheet (d) All of the above. [30] A surplus of revenue over its cost is known as ______ of business. (a) Capital (b) Profit (c) Asset (d) None [31] Net profit before the following Adjustments ....... = Rs. 1,80,000

Outstanding Salary . = Rs. 10,000 Prepaid insurance = Rs. 13,000 Calculate profit after adjustments.

(a) Rs. 1,77,000 (b) Rs. 1,83,000 (c) Rs. 2,03,000 (d) None of the above. [32] Find out the corrected net profit;

Profit before taking into account following adjustments was Rs.7,00,000 (i) Rs. 1,00,000 spent on purchase of motor car for business

purpose, treated as expense in Profit & Loss A/c. (ii) Rs. 15,000 p.m. rent outstanding for the month of February

and March not taken into account - (a) Rs. 7,70,000 (b) Rs. 7,85,000 (c) Rs. 6,15,000 (d) Rs. 6,30,000 [33] Sales = Rs. 11,000, G.P. = 1/10th on cost closing stock before these

Adjustments Rs. 1,00,000 closing stock after adjustment of sales will be -

(a) Rs. 1,10,000 (b) Rs. 90,000




(c) Rs. 89,000 (d) None [34] Bad debt recovered of Rs. 2000 which were previously written off

as bad debt will be credited to ______ A/c (a) Bad Debt A/c (b) Debtor A/c (c) Bad debt recovered A/c (d) Suspense A/c

Chapter 7 : Accounting for Special Transactions Unit 1 : Consignment

[35] Consignment Account is a : (a) Real Account (b) Nominal Account (c) Trading Account (d) Personal Account [36] Account Sales includes ; (a) Sales made (b) Stock left with consignee (c) Commission earned (d) All of above. [37] A sends 1000 units @ Rs. 56 to be sold on consignment basis.

Consignor expenses amounted to Rs. 1000. 50 units were cost in transit. Find the new price per unit. (Loss is unavoidable).

(a) Rs. 50 per unit (b) Rs. 60 per unit (c) Rs. 58.95 per unit (d) Rs. 57 per unit [38] A consigned 1000 litres of coconut oil @ Rs. 50 per lt. to B. The

normal loss is estimated at 5%. The profit was fixed at 14% on the total cost. What is the sale price per litre ?

(a) Rs. 57 (b) Rs. 60 (c) Rs. 70 (d) Rs. 55 Unit 2 : Joint Ventures

[39] A and B entered into a joint venture. They agreed to share profits and losses equally. A purchased goods worth Rs. 16,000. Goods of Rs. 4,000 were destroyed by fire. Insurance claim of Rs. 3,000 is




received. B sold the rest of the goods for Rs. 20,000. A and B share profits equally A’s share of profits is :

(a) Rs. 4,000 (b) Rs. 3,000 (c) Rs. 1,500 (d) None [40] A and B entered into joint venture. A supplied goods worth Rs.

7,000 and incurred expenses of Rs. 300. B sold the goods for Rs. 10,000 and incurred expenses of Rs. 500. What is the amount of final remittance ?

(a) Rs. 8,400 (b) Rs. 7,900 (c) Rs. 8,900 (d) None of these. Unit 3 : Bills of Exchange and Promissory Notes

[41] Ram drew a bill on Shyam on 15th April, 09 Shyam accepted the same on 17th April, 09 for 30 days after sight. What will be the due date of the bill ?

(a) 18th May, 09 (b) 15th May’ 09 (c) 20th May, 09 (d) 17th May, 09 [42] Balance as per pass book Rs. 20,000 Rs. 4,000 were directly

deposited by a customer into the bank. Then the balance as per cash book is :

(a) Rs. 24,000 (b) Rs. 18,000 (c) Rs. 16,000 (d) Rs. 22,000 [43] X draws a bill on Y for Rs. 5,000 for 3 months. Before the due date

Y sends 1/5th of the amount to X. Y requested X to draw a new bill for the balance amount plus interest @ 12% p.a. for 3 month. Find the amount of the new bill ?

(a) Rs. 5,150 (b) Rs. 4,140 (c) Rs. 4,120 (d) Rs. 5,440




[44] A draws a bill for Rs. 20,000 for 3 months on 1.1.09. Bill was discounted with a banker who charged Rs. 100 as discounting charges. At maturity the bill returned dishonoured. With what amount will the bank a/c be credited in the books of A ?

(a) Rs. 19,000 (b) Rs. 20,000 (c) Rs. 20,100 (d) Rs. 19,900

Chapter 8 Partnership Unit 1 : Introduction to Partnership Accounts

[45] A and B are partners having capital of Rs. 50,000 and Rs. 60,000 respectively. Interest on capital is given @ 5% p.a. Profits for the year before appropriation is Rs. 4,600 provide interest on capital out of profits. Increase allocated to partners is :

(a) Rs. 3,000 and Rs. 2,500 (b) Rs. 2,090 and Rs. 2,509 (c) Rs. 2,500 and Rs. 2,091 (d) Rs. 600 and Rs. 300 [46] If there is no partnership deed then interest on capital will be

charged at ....... p.a. (a) 6 % (b) 8 % (c) 9 % (d) NIL Unit 2 : Treatment of Goodwill in Partnership Accounts

[47] When there is no Goodwill Account in the books and goodwill is raised, ______account will be debited.

(a) Partner’s Capital A/c (b) Goodwill A/c (c) Cash A/c (d) Reserve A/c Unit 3 : Admission of New Partner

[48] A and B share profits equally. They admit C with 1/7th share. The new profit sharing ratio of A and B is

(a) 4/7, 1/7 (b) 3/7, 3/7 (c) 2/7, 2/7 (d) None




[49] A and B are partners C is admitted with 1/5th share C brings Rs.1,20,000 as his share towards capital. The total networth of the firm is:

(a) Rs. 1,00,000 (b) Rs. 4,00,000 (c) Rs. 1,20,000 (d) Rs. 6,00,000 [50] A and B share profits in the ratio of 3:2. A’s capital is Rs. 48,000

B’s capital is Rs. 32,000. C is admitted for 1/5th share in profits. What is the amount of capital which C should bring ?

(a) Rs. 20,000 (b) Rs. 16,000 (c) Rs. 1,00,000 (d) Rs. 64,000 Unit 4 : Retirement of a Partner

[51] X, Y, Z are equal partners in a firm. Z retires from the firm. The new profit sharing ratio between X and Y is 1:2 Find the gaining ratio.

(a) 3:2 (b) 2:1 (c) 4:1 (d) Only B gains by 1/3

Chapter 9 : Company Accounts Unit 1 : Introduction to Company Accounts

[52] A ______is an artificial person created by law with a perpetual succession and a common seal.

(a) Company (b) Partnership firm (c) Sole Proprietorship (d) Hindu Undivided Family [53] Right shares are issued to: (a) Promoters for the services (b) Holders of convertible debentures (c) Existing shareholders (d) All of the above. [54] Interest on calls-in-advance is paid at a rate of : (a) 8 % p.a. (b) 6 % p.a.




(c) 5 % p.a. (d) None of these. [55] A company issued 20,000 preference shares at the rate of Rs. 100

each at 5 % premium and 2,00,000 equity shares at the rate Rs. 10 each at 10% premium. What is the net amount of securities premium ?

(a) Rs. 1,00,000 (b) Rs. 2,00,000 (c) Rs. 2,40,000 (d) Rs. 3,00,000 [56] Share premium is utilized for this purpose : (a) For raising goodwill (b) For premium payable on redemption of preference share (c) For writing of capital losses. (d) For paying dividend. [57] X purchased the running business of A for Rs. 60,000. In place of

cash he discharged the purchase consideration by issue of equity shares of Rs. 10 each at 20% premium. Find the number of shares to be issued ?

(a) 6,000 (b) 7,500 (c) 5,000 (d) 8,000 [58] Reserve share capital means : (a) part of authorized capital to be called at beginning (b) portion of uncalled capital to be called only at liquidation (c) Over subscribed capital (d) Under subscribed capital [59]When full amount is due on any call but it is not received, then the

shortfall is debited to - (a) Calls in advance (b) Calls in arrear (c) Share capital (d) Suspense account Unit 4 : Issue of Debentures

[60] 6000 debentures were discharged by issuing Equity Shares of Rs. 10 each at 20 % premium. Find the number of shares issued.

(a) 50,000 (b) 60,000




(c) 5,000 (d) 6,000

Answer 1. (b) 2. (b) 3. (a) 4. (a) 5. (b) 6. (a) 7. (c) 8. (d) 9. (d) 10. (a) 11. (c) 12. (b) 13. (b) 14. (b) 15. (b) 16. (d) 17. (c) 18. (c) 19. (b) 20. (a) 21. (d) 22. (b) 23. (b) 24. (c) 25. (a) 26. (c) 27. (a) 28. (a) 29. (d) 30. (b) 31. (a) 32. (a) 33. (b) 34. (c) 35. (b) 36. (d) 37. (b) 38. (b) 39. (c) 40. (a) 41. (c) 42. (c) 43. (c) 44. (b) 45. (b) 46. (d) 47. (b) 48. (b) 49. (d) 50. (a) 51. (d) 52. (a) 53. (c) 54. (b) 55. (d) 56. (b) 57. (c) 58. (b) 59. (b) 60. (a)



Chapter 1 : Accounting : An Introduction Unit 2 : Accounting Concepts, Principles and

Conventions 2009 – December

[1] What is the objective of conservatism ? (a) Take all incomes and losses (b) Anticipate losses but not profits (c) Take all losses (d) None of the above [2] Contingent liabilities are shown in footnote of

Balance Sheet as per which concept ? (a) Materiality (b) Disclosure (c) Realization (d) Dual Aspect [3] Which of the following does not follow Dual

Aspect ? (a) Increase in one asset, decrease in other. (b) Increase in both asset and liability (c) Decrease in one asset, decrease in other (d) Increase in one asset & capital [4] The Rule of “Lower of Cost or Market Value” is

based on which concept? (a) Dual Aspect (b) Conservatism (c) Disclosure (d) Prudence

Chapter 2 : Accounting Process Unit 1 : Basic Accounting Procedures –

Journal Entries 2009 – December

[5] In case of bad debts, which account is credited ? (a) Bad debts Account (b) Creditors Account (c) Debtors Account (d) None of these [6] Proprietor’s Account is _________ Account. (a) Real (b) Nominal (c) Personal (d) None of these [7] Purchase of second-hand computer on credit by a

cloth merchant will be recorded in : (a) Journal (b) Cash Book (c) Purchase Book (d) None of the above

Unit 2 : Ledgers

2009 – December

[8] Which of the following is known as “Principal Books of Accounts”?

(a) Ledger (b) Journal (c) Trial Balance (d) Balance Sheet Unit 4 : Subsidiary Books

2009 – December

[9] The Balance of Sales Day Book is Rs. 25,000. Rs. 5000 were recovered from debtors. Then balance of Day Book will be transferred by which amount ?

(a) Rs. 25,000 (b) Rs. 5,000 (c) Rs. 20,000 (d) Rs. 10,000 Unit 5 : Cash Books

2009 – December

[10] In three column Cash Book, when does contra entry occurs?

(a) Withdrawal of cash from bank (b) Payment to creditors (c) Withdrawal of cash from bank for personal

use (d) All of the above [11] What will be journal entry when cash is withdrawn

from bank for personal use ? (a) Drawings A/C debit, Bank A/C credit (b) Cash A/C debit, Bank A/C credit (c) Bank A/C debit, Drawings A/C credit (d) Bank A/C debit, Capital A/C credit Unit 6 : Capital and Revenue expenditures

and Receipts 2009 – December

[12] An old machinery is purchased for Rs. 10,000. Installation charges of Rs. 1,000 were incurred. Repairs to the old machinery = Rs. 7,000 Repairs Account will be debited by :

(a) Rs. 7,000 (b) Rs. 8,000 (c) Nil (d) None of the above

Paper - 1 Fundamentals of Accounting



2 CPT Abridged Scanner : (Paper 1) Fundamentals of Accounting

Unit 8 : Rectification of Errors 2009 – December

[13] Sale of old furniture is wrongly transferred to Sales Account. Which type of error is this ?

(a) Error of Principle (b) Compensating Error (c) Error of Omission (d) Error of Commission [14] Sales for Rs. 5,000 was entered as purchase. The

effect of this error will be : (a) G.P. will increase by Rs. 5,000 (b) G.P. will decrease by Rs. 5,000 (c) G.P. will decrease by Rs. 10,000 (d) G.P. will increase by Rs. 10,000

Chapter 3 : Bank Reconciliation Statement

2009 – December

[15] The balance as per Cash Book is Rs. 10,000 Cheques for Rs. 2,000 were issued but not presented for payment. What would be the balance as per Pass Book ?

(a) Rs. 10,000 (b) Rs. 2,000 (c) Rs. 12,000 (d) None of the above [16] The balance as per Cash Book (overdraft) is Rs.

1,500. Cheques for Rs. 400 were deposited but were not collected. The cheques issued but not presented were Rs. 100, Rs. 125, Rs. 50. Balance as per Pass Book is:

(a) Rs. 1,100 (b) Rs. 1,625 (c) Rs. 2,175 (d) Rs. 1,375 [17] If the balance as per Pass Book is the starting point,

so the treatment of undercasting of receipt side of Cash Book will be :

(a) Added (b) Deducted (c) No treatment (d) None of these [18] The payment side of Cash Book is undercast by Rs.

250. If the starting point of BRS is the Overdraft Balance as per Pass Book, then what would be the treatment to reach to Overdraft Balance of Cash Book?

(a) Add 250 (b) Less 250 (c) Add 500 (d) Less 500

Chapter 4 : Inventories

2009 – December

[19] Calculate Closing Stock using FIFO Method : Particulars Units Rate Opening Stock 100 Rs. 50 Purchases 50 Rs. 40 Issue 125 (a) Rs. 5,000 (b) Rs. 1,000 (c) Rs. 1,250 (d) Rs. 6,250 [20] Cost of Goods Sold = (a) Opening Stock + Purchases - Closing Stock (b) Opening Stock - Sales + Closing Stock (c) Opening Stock - Purchases + Closing stock (d) None of these [21] Opening Stock = Rs. 6,000 Closing Stock = Rs. 8,000 Cost of Goods Sold = Rs. 87,000 Calculate the value of Purchases ? (a) Rs. 1,01,000 (b) Rs. 89,000 (c) Rs. 73,000 (d) Rs. 85,000

Chapter 5 : Depreciation Accounting

2009 – December

[22] A machinery is purchased for Rs. 10,000. On 1st April, 2005. Depreciation @ 10% p.a. is provided. Calculate the amount of difference in depreciation as per SLM and WDV basis in the year 2006-07.

(a) Rs. 1,000 (b) Rs. 100 (c) NIL (d) Rs. 200 [23] A mine was taken on lease for Rs. 2,00,00,000. Its

total production capacity is 4,00,000 mt. What will be the depreciation in 2007 if it produced 30,000 m.t. in 2007 ?

(a) Rs. 10 lacs (b) Rs. 15 lacs (c) Rs. 50 lacs (d) None of these [24] A machine is purchased for Rs. 1,00,000.

Installation charges of Rs. 10,000 were incurred. Depreciation @ 10% was provided on Straight Line Basis. The machine was sold for Rs. 60,000 after 5 years. Calculate the profit or loss on sale of machine.

(a) Rs. 5,000 Loss (b) Rs. 5,000 Profit (c) Rs.60,000 Profit (d) Rs. 40,000 Loss



CPT Abridged Scanner : (Paper 1) Fundamentals of Accounting 3

Chapter 6 : Preparation of Final Accounts of sole Proprietors

2009 – December

[25] Selling and distribution expenses does not comprise of :

(a) Godown Rent (b) Bad Debts (c) Insurance for Stock of Finished Goods (d) Carriage Inward [26] There was a stock of Rs. 5,500, out of which stock

of Rs. 500 was burnt due to fire and was disposed off for Rs. 200. Remaining goods were sold at 25% above cost price. Find net profit.

(a) Rs. 6,250 (b) Rs. 7,200 (c) Rs. 6,575 (d) Rs. 5,950 [27] If profit is 25% on cost price then the profit on sale

price will be : (a) 20% (b) 30% (c) 33 1/3% (d) 40% [28] If Purchases Account is not credited in case of

goods lost in transit then which account can be credited ?

(a) Goods Lost in Transit Account (b) Purchase Return Account (c) Trading Account (d) Sales Account [29] Opening Stock = Rs. 50,000 Purchases = Rs. 1,00,000 Purchase Return = Rs. 29,000 Sales = Rs. 2,00,000 Find the Gross Profit (a) Rs. 1,21,000 (b) Rs. 79,000 (c) Rs. 21,000 (d) None of the above [30] Postal Expenses Account is shown in : (a) P & L A/C (b) Trading A/C (c) Balance Sheet (d) Manufacturing A/C [31] Prepaid Expense of Financial Year relate with : (a) Previous Financial Year (b) Following Financial Year (c) Current Financial Year (d) None [32] Opening Capital = Rs. 5,00,000 Profits during the year = Rs. 1,00,000 Calculate the Average Capital of the year. (a) Rs. 55,000 (b) Rs. 3,00,000

(c) Rs. 9,167 (d) Rs. 50,000 [33] Goods in Transit but not taken in Closing Stock

will be credited to: (a) Purchase A/C or Trading A/C (b) Supplier A/C (c) Goods in Transit A/C (d) Cash A/C

Chapter 7 : Accounting for special Transactions Unit 1 : Consignment

2009 – December

34] X sends goods to Y on consignment, but 15% of the goods were lost in transit. Such loss will be borne by :

(a) Consignee (b) Consignor (c) Both (a) and (b) (d) Insurance company [35] Who is owner of the unsold stock left with the

consignee ? (a) Consignee (b) Consignor (c) Co-venturer (d) Both (a) and (b) [36] The Consignor sends _____along with the

consigned goods to the consignee. (a) Account Sales (b) Proforma Invoice (c) Both (d) None

Unit 2 : Joint Ventures 2009 – December

[37] Which of the following is incorrect ? (a) Joint Venture is not based on going concern. (b) Joint Venture can be formed with minor. (c) A bill of exchange is a negotiable instrument. (d) Nothing charges are the expenses of drawee. [38] Joint venture is a ______ Account. (a) Personal (b) Real (c) Nominal (d) Capital [39] A and B entered into a Joint Venture. A bought

goods for Rs. 6,00,000. He sold 80% of the goods for Rs. 5,60,000 and took the remaining goods at cost less 20%. Find the amount of profit.

(a) Rs. 56,000 (b) Rs. 60,000 (c) Rs. 70,000 (d) None [40] When Memorandum Joint Venture Method is

followed,. in Books of X, “Joint Venture with Y A/C” will be credited with _____, for amount received by X.



4 CPT Abridged Scanner : (Paper 1) Fundamentals of Accounting

(a) Y (b) Sales (c) Debtor (d) Cash Unit 3 : Bills of Exchange and Promissory

Notes 2009 – December

[41] When a bill is renewed, then entry will be : (a) No entry will be passed (b) Entries for cancellation of old bill and

renewal of bill (c) Entry for renewal of bill (d) None of these [42] If a machine is purchased for Rs. 5,00,000 on 1st

April, 2002 on hire-purchase basis, What is the average due date, if amount is repaid in 5 yearly annual instalments starting from 1st April, 2003.

(a) 1.4.05 (b) 1.4.04 (c) 1.4.03 (d) 1.4.07 [43] A draws a bill for Rs. 10,000 on B for 2 months.

He gets it discounted from bank @ 12%. They agreed to share the proceeds equally.

How much amount is received by A ? (a) Rs. 5,000 (b) Rs. 4,900 (c) Rs. 4,000 (d) None of the above [44] In case of sudden holiday, maturity date falls on : (a) Next following day (b) Previous day (c) On the same day (d) None of the above [45] A bill not paid by drawee on due date is called

________. (a) Noting of bill (b) Dishonour of bill (c) Renewal of bill (d) Discounting of bill Unit 4 : Sale of Goods on Approval or Return

Basis 2009 – December

[46] Sales = Rs. 1,06,000 Sales Return = Rs. 6,000 Out of Rs. 1,06,000, goods costing Rs. 10,000 were

sent on approval for Rs. 12,000 which have not been approved yet.

Calculate Net Sales. (a) Rs. 1,00,000 (b) Rs. 88,000 (c) Rs. 1,12,000 (d) Rs. 18,000

Chapter 8 : Partnership Unit 1 : Introduction to Partnership Account

2009 – December

[47] Interest on Drawings is : (a) Debited to P/L A/C (b) Credited to P/L A/C (c) Debited to Capital A/C (d) None Unit 3 : Admission of New Partner

2009 – December

[48] A and B share profits in the ratio of 3:4. C was admitted for 1/5th share. Calculate the new profit sharing ratio.

(a) 3:4:1 (b) 12:16:7 (c) 16:12:7 (d) None of these [49] A and B carry on business and share profits and

losses in the ratio of 3:2. Their respective capitals are Rs. 1,20,000 and Rs. 54,000. C is admitted for 1/3rd share in profit and brings Rs. 75,000 as his share of capital. Capitals of A and B to be adjusted according to C’s share. Calculate the amount refunded to A.

(a) Rs. 30,000 (b) Rs. 32,000 (c) Rs. 15,000 (d) Rs. 28,000 [50] On account of admission, the assets are revalued

and liabilities are reassessed in ________ Account. (a) Partner’s Capital A/C (b) Revaluation A/C (c) Realisation A/C (d) Balance Sheet [51] The opening balance of Partner’s Capital Account

is credited with : (a) Interest on Capital (b) Interest on Drawings (c) Drawings (d) Share in Loss Unit 5 : Death of a Partner

2009 – December

[52] A, B and C are partners sharing profits in the ratio of 3:2:1. They had a Joint Life Policy of Rs. 3,00,000. Surrender value of JLP in Balance Sheet is Rs. 90,000. C dies. What is share of each partner in JLP ?

(a) Rs. 1,05,000; Rs. 70,000; Rs. 35,000 (b) Rs. 45,000; Rs. 30,000; Rs. 15,000 (c) Rs. 1,50,000; Rs. 1,00,000; Rs. 50,000 (d) Rs. 1,95,000; Rs. 1,30,000; Rs. 65,000



CPT Abridged Scanner : (Paper 1) Fundamentals of Accounting 5

Chapter 9 : Company Accounts Unit 1 : Introduction to Company Account

2009 – December

[53] Equity shareholders have a right to : (a) Vote (b) 20% dividend (c) Have preference on redemption (d) All of the above [54] Equity shareholders are _____ of a company. (a) Bankers (b) Creditors (c) Debtors (d) Owners Unit 2 : Issue, forfeiture and Re-Issue of

Shares 2009 – December

[55] The difference between Subscribed Capital and Called-up Capital is called:

(a) Calls-in-arrear (b) Calls-in-advance (c) Uncalled capital (d) None of the above [56] A company issued 5,000 shares of Rs. 10 each at

20% premium payable as follows : Application - Rs. 2, Allotment-Rs. 5 (including premium) and First and Final Call-Rs.5.

A holder of 200 shares failed to pay the First and Final Call. His shares were forfeited. Calculate the amount to be credited to Share Forfeiture Account.

(a) Rs. 1,000 (b) Rs. 1,400

(c) Rs. 400 (d) None of these [57] At the time of forfeiture, Share Capital Account is

debited with : (a) Face Value (b) Nominal Value (c) Paid-up Value (d) Called-up Value [58] Which statement is issued before the issue of

shares ? (a) Prospectus (b) Memorandum of Association (c) Articles of Association (d) All of these Unit 3 : Redemption of Preference Shares

2009 – December

[59] Preference Shares can be issued for a maximum period of :

(a) 20 years (b) 24 years (c) 25 years (d) None of these

Unit 4 : Issue of Debentures 2009 – December

[60] A company issued 1,00,000 12% debentures of Rs. 100 each. Calculate the amount of interest on debentures.

(a) Rs. 12,000 (b) Rs. 1,20,000 (c) Rs. 12,00,000 (d) None of these

Answer 1. (b) 2. (b) 3. (c) 4. (b) 5. (c) 6. (c) 7. (a) 8. (a) 9. (a) 10. (a) 11. (a) 12. (c) 13. (a) 14. (c) 15. (c) 16. (b) 17. (b) 18. (a) 19. (b) 20. (a) 21. (b) 22. (b) 23. (b) 24. (b) 25. (d) 26. (d) 27. (a) 28. (c) 29. (b) 30. (a) 31. (b) 32. (a) 33. (a) 34. (b) 35. (b) 36. (b) 37. (b) 38. (c) 39. (a) 40. (d) 41. (b) 42. (a) 43. (b) 44. (a) 45. (b) 46. (b) 47. (c) 48. (b) 49. (a) 50. (b) 51. (a) 52. (a) 53. (a) 54. (d) 55. (c) 56. (a) 57. (d) 58. (a) 59. (a) 60. (c)



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