Emeralds Professional Academy

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CPT JUNE 2012 QUESTION PAPER SESSION I SECTION A FUNDAMENTALS OF ACCOUNTING Calculate the closing stock on 31.03.2011 Particulars 31.3.2010 31.3.2011 Opening stock ` 30,000 ` 35,000 Purchases ` 3,25,000 ` 4,20,000 Sales ` 4,00,000 ` 5,00,000 The Gross profit argin re ains unchange! a. ` 35,000 ". ` 50,000 c. ` 55,000 !. ` #0,000 $ tra!er calculate! his profit at ` 20,000 on 31.3.2012. %t is &&&& a. $ transaction b. An event c. Transaction as 'ell as e(ent !. )either transaction nor e(ent Tinku * +unt, entere! into -oint .enture to share profits an! losses in the ratio of 2/1. Tinku supplie! 200 refrigerators costing ` 2,00,000 to +unt,, incurring freight charges of ` 10,000. +unt, sol! 100 refrigerators for ` 2,40,000 an! took o(er the re aining 10 refrigerators for hi self. 1hat is the a ount of Profit 2 loss on -oint (enture 3 4 a. 5oss ` 40,000 ". Profit ` 30,000 c. Profit ` 40,000 d. Profit ` 40,500 $ furniture !ealer sol! furniture for ` 25,00026 to Sunil for cash. %n the "ooks of the !ealer &&&& $2c is !e"ite! an! &&&& $2c is cre!ite! a. Cash, 7i8e! $sset ". Cash, 7urniture c. Cash, Sales !. Cash, Sunil 1hich of the follo'ing state ents is true 4 a. Fully paid preference shares can only be redeemed ". $ co pan, can issue irre!ee a"le preference shares c. $ co pan, cannot re!ee preference shares at pre iu !. Preference shares can "e re!ee e! after 20 ,ears fro the !ate of their issue The o'ner of a "usiness gifte! a car to his son6in6la' on the occasion of his !aughter9s arriage. The follo'ing entr, 'as passe! in this regar!. Car $2c :r. 5,00,000 To Cash $2c 5,00,000 1hat is the rectification entr, 4 a. :ra'ings $2c :r. 5,00,000 To Cash $2c 5,00,000 b. Dra in!s A"c Dr. 5,00,000 #o Car A"c 5,00,000 c. Car $2c :r. 5,00,000 To :ra'ings $2c 5,00,000 !. Cash $2c :r. 5,00,000 To Car $2c 5,00,000 7ro the follo'ing infor ation fin! out the cre!it sales Opening :e"tors ` 12,000 Closing :e"tors ` 14,000 +2< accepte! ", :e"tors ` 13,000 Cash recei(e! fro :e"tors ` 3=,400 a. ` 30,400 ". ` 2;,000 c. ` #5,400 d. ` 5$,400 1.

2. 3.

4.

5.

#.

;.

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0.

10. 11.

12.

13.

14.

15.

%f !e"entures are issue! at a !iscount of 20>, the !iscount on issue of !e"entures is sho'n as/ a. Current asset ". %nterest asset c. Current lia"ilities d. %iscellaneous e&penditure 1hile preparing +<S, Starting 'ith o(er !raft "alance of cash "ook, a che?ue of ` 5,500 !eposite! in "ank an! !ul, cre!ite! in pass "ook, "ut not recor!e! in cash "ook &&&& in +.<.S a. ` 5500 'ill "e a!!e! b. ` 5500 ill be subtracted c. ` 11000 'ill "e a!!e! !. ` 11000 'ill "e su"tracte! 1hich of the follo'ing not a )o inal $2c 4 a. 'utstandin! salaries A"c ". Salaries $2c c. %nterest pai! $2c !. Co ission recei(e! $2c @ sol! goo!s to A at cost B 10> profit. A sol! goo!s to C at 20> profit on sales. %f cost of the goo!s to @ is ` 50,000. 1hat is the cost of the goo!s to C 4 a. ` ##,000 b. ` (),*50 c. ` #5,000 !. ` #0,450 @ 5t!. issue! shares of ` 20 each at !iscount of 10>. Dr. <a , a hol!er of 100 shares coul! not pa, the final call of ` 5 per share an! his shares 'ere forfeite!. %f these shares are reissue!, 'hat is the a8i u a ount of !iscount to "e allo'e! on re6 issue 4 a. ` = ". ` 2 c. ` +5 !. ` 13 :e"it "alance as per cash "ook is ` 1500 Che?ue !eposite!, "ut not cleare! ` 100 Che?ue issue!, "ut not presente! ` 250 :i(i!en! collecte! ", "ank ` 50 %nterest allo'e! ", "ank ` 50 1hat is the +alance as per pass "ook 4 a. ` 1550 b. ` +(50 c. ` 1#00 !. ` 1050 Opening Capital ` 1,00,000 %nterest on Capital ` 10,000 :ra'ings ` 20,000 %nterest on :ra'ings ` 2,000 Closing Capital ` 2,00,000 1hat is the a ount of )et Profit 4 a. ` 1,00,000 ". ` 1,20,000 c. ` 1,22,000 d. ` +,+,,000 $ ount reco(ere! fro <ahul, 'hich 'as earlier 'ritten off as "a! !e"t is !e"ite! to Cash $2c an! cre!ite! to &&&&& $2c a. +a! :e"ts b. -ad debts recovered c. <ahul !. Sales

<ent pai! for the perio! fro 1.10.2010 to 30.00.2011 'as ` 12,000 <ent pai! for the perio! fro 1.10.2011 to 30.00.2012 'as ` 1=,00026 <ent to "e !e"ite! to the P25 $2C for the ,ear en!e! 31.03.2012 3 4 a. ` +5,000 ". ` 13,000 c. ` 12,000 !. ` 20,000 1;. :e"tors as per trial "alance 3 ` =0,000 7urther infor ation E iF +a! !e"ts ` 2,000 iiF Pro(ision for !iscount on !e"tors G 5> 'ill "e &&&& a. ` 4,100 ". ` 4,000 c. ` $,.00 !. ` 4,200 1=. Dr. @ is a !ealer in electronic goo!s. He purchase! 2 air con!itioners an! installe! in his sho'roo . %n the "ooks of I@9 the cost of air con!itioners 'ill "e !e"ite! to &&&& a. :ra'ing $2c ". Capital $2c 1#.

10.

20. 21.

22.

23.

24.

25.

2#. 2;.

2=. 20.

c. Fi&ed Asset A"c !. Purchases $2c 1hat is the effect on Gross profit, if closing stock is un!er(alue! ", ` 10,000 an! opening stock is o(er(alue! ", ` 10,000 4 a. GP 'ill increase ", ` 10,000 ". GP 'ill !ecrease ", ` 10,000 c. /P ill decrease by ` ,0,000 !. )o change in GP Historical cost concept re?uires the (aluation of an asset at &&&& a. 'ri!inal cost ". <eplace ent (alue c. )et realiJa"le (alue !. Darket (alue The po'er of forfeiture of shares is e8ercise! ",/ a. Pro oters b. Directors as per the provisions of Articles of Association c. The Go(ern ent !. Sharehol!ers $ Tra!er has calculate! a net profit of ` 5#,;50. 5ater he foun! that !iscounte! recei(e! of ` 5=026 an! !iscount allo'e! of ` ##5 ha(e "een recor!e! on the 'rong si!es of these accounts. 1hat 'oul! "e the correct profit 4 a. ` 5(,5)0 ". ` 5#,##5 c. ` 5#,=35 !. ` 5#,020 Dr. $ sen!s goo!s to + for ` 1,50,000 on sale or return "asis of 'hich no confir ation 'as ,et recei(e!. 1hat is the a ount to "e a!!e! to the closing stock, if the goo!s 'ere sent at profit of 33 123> on cost ` 4 a. ` +,+,,500 ". ` 1,3;,500 c. ` 1,50,000 !. ` 1,2=,000 Opening stock ` #0,500 Closing Stock ` =3,500 Sales ` 1,#0,000 Purchases ` 1,10,000 G.P. on sales 3 4 a. 35> b. 400 c. 45> !. 30> C 5t!. purchase! an asset fro : 5t!. for ` 4,00,000 ", issuing the !e"entures of ` 100 each at !iscount of 20>. 1hat is the a ounte! to "e cre!ite! to :e"entures $2c 4 a. ` 4,00,000 ". ` 4,50,000 c. ` 5,00,000 !. ` 5,;5,000 <ahul an! +aKaK are partners in the ratio of 1 / 2. The, a! itte! +irla as a ne' partner. The ne' profit sharing ratio is 1/2/3. 7in! out the sacrificing ratio 4 a. + 1 , ". 2 / 1 c. 2 / 3 !. 3 / 2 $n asset 'as purchase! for ` 10,00,000, 'ith a !o'n pa, ent of ` 2,00,000 an! acceptance of a "ill pa,a"le for ` =,00,000. 1hat 'oul! "e the effect on total assets an! total lia"ilities in the "alance sheet 4 a. $ssets increase! ", ` =,00,000 an! lia"ilities !ecrease ", ` =,00,000 ". $ssets !ecrease! ", ` =,00,000 an! lia"ilities increase! ", ` =,00,000 c. $ssets increase! ", ` 10,00,000 an! lia"ilities increase! ", ` =,00,000 d. Assets increased by ` ),00,000 and liabilities increased by ` ),00,000 %f the goo!s 'orth ` 20,000 'ere taken ", a co6(enture for ` 15,000, the -oint .enture $2c 'ill "e cre!ite! ", a. ` 20,000 b. ` +5,000 c. ` 25,000 !. ` 5,000 $ !ia on! ring 'orth ` 1,00,000 'as stolen fro the shop of -e'elers on 25.03.2012. %nsurance clai of ` #0,000 'as a! itte!, "ut not pai! ", the insurance co pan, till 31.03.2012. %n this regar!, no entr, 'as passe! in the "ooks of $2c. The correct Kournal entr, to "e passe! 'hile preparing the final accounts on 31.03.2012 is &&&& a. P * 5 $2c :r. 1,00,000 To Purchases $2c 1,00,000 ". %nsurance clai <ecei(a"le $2c :r. 40,000 5oss ", theft $2c :r. #0,000 To purchases $2c 1,00,000 c. P 2 3 A"c Dr. 40,000

30. 31. 32.

33.

34.

4nsurance claim 5eceivable A"c Dr. (0,000 #o Purchases A"c +,00,000 !. )one of the a"o(e %f a purchase of goo!s for ` 500 'as 'rongl, poste! to the cre!it si!e of Purchases $2c, the !ifference in trial "alance 'ill "e &&&& a. ` 500 ". ` 250 c. ` +000 !. ` 1500 1hen shares are forfeite! Share Capital $2c is !e"ite! ", &&&& a. )o inal (alue of shares ". Pai! up (alue of shares c. Called up value of shares !. 7orfeite! a ount The co parison of financial state ents of one ,ear 'ith that of another ,ear is possi"le onl, 'hen &&&& concept is follo'e! a. Going concern ". $ccrual c. Consistency !. Daterialit, Calculate G.P 'hen E Opening stock ` 24,000 Closing stock ` 15,000 Sales ` #,00,000 Cost of goo!s sol! ` 4,55,000 a. ` 1,30,000 b. ` +,45,000 c. ` 1,54,000 !. ` 1,0#,000 $ co pan, issue! 10,000 e?uit, shares of ` 10 each at a pre iu of 20> for the re!e ption of 15,000 preference shares of ` 10 each. %f the co pan, has sufficient profits, the a ount to "e transferre! to Capital <e!e ption <eser(e $2c 'ill "e a. ` 50,000 ". ` 1,00,000 c. ` 1,50,000 !. ` 30,000 $(erage capital e plo,e! ` 5,00,000 )or al rate of return 10> Goo!'ill at 5 ,ears purchase of super profit ` 0=,000 Calculate the a(erage profit a. ` (.,(00 ". ` 1,4=,000 c. ` 4,40,000 !. ` 4=,000 1hich of the follo'ing state ents is false 4 a. %ssue! capital can ne(er "e ore than authoriJe! capital b. 4n case of under subscription, issued capital ill be less than the subscribed capital c. Lncalle! capital a, "e con(erte! into reser(e capital !. Pai! up capital is e?ual to calle! up capital less calls in arrears The cost of the furniture lost ", fire is ` 1=,000. Pro(ision for !epreciation on the !ate of fire is ` 2,;00. %nsurance clai accepte! ", ` 12,000 $ ount of loss to "e !e"ite! to P * 5 $2c is &&&& a. ` #,000 ". ` 15,300 c. ` $,$00 !. ` 1=,000 1hen shares are issue! to the pro oters for their ser(ices &&&& $2c is !e"ite! a. Preli inar, M8penses ". Pro oters c. /ood ill !. Share Capital $ achine 'as purchase! at the "eginning of the ,ear at ` 5,30,000. The achine 'as 'rongl, !epreciate! ", 10> instea! of 25>. 1hat 'ill "e the rectification entr, 4 a. P 2 3 A"c Dr. *.,500 #o Prov. for Depr. A"c *.,500 ". P * 5 $2c :r. 2#,500 To Pro(. for :epr. $2( 2#,500 c. Pro(. for :epr. $2c :r. 2#,500 To P * 5 $2c 2#,500 !. Pro(. for :epr. $2c :r. ;0,500 To P * 5 $2C ;0,500

35.

3#.

3;.

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40.

$ !ra's an acco o!ation "ill on + for 3 onths. Procee!s are to "e share! e?uall,. $ got the "ill !iscounte! at 12> per annu an! re itte! the procee!s of ` 4=,50026 to +. The a ount of the "ill is &&&&& a. ` +,00,000 ". ` 0;,000 c. ` 1,10,000 !. ` 0=,000 41. Calle! up capital ` 4,00,000 Calls in a!(ance ` 25,000 Calls in arrears ` 40,000 1hat is the a ount of Pai! up capital a. ` $,(0,000 ". ` 3,=5,000 c. ` 4,15,000 !. ` 4,25,000 42. Profit 2 5oss is calculate! at the stage of &&&&& a. <ecor!ing ". Classif,ing c. %nterpretation d. Summarisin! 43. $ achine 'as purchase! on 16462010 for ` 14,400 an! installation charges a ounte! to ` 1,#00. M8pecte! life ti e is =,000 hours. :uring the ,ear 201062011, the achine 'orke! for 2500 hours. The !epreciation for the ,ear 'ill "e & a. ` 4,500 b. ` 5,000 c. ` 3,200 !. ` #,250 44. 1hich of the follo'ing is not the ain o"Kecti(e of accounting 4 a. S,ste atic recor!ing of transactions ". $scertain ent of profit or loss c. $scertain ent of a financial position d. Solvin! ta& disputes ith ta& authorities 7or e(er, !e"it there 'ill "e an e?ual cre!it accor!ing to &&&& concept a. Datching ". Cost c. Done, Deasure ent d. Dual aspect 1hen the !e"entures are issue! at !iscount an! are re!ee a"le at pre iu , 'hich of the follo'ing accounts is !e"ite! at the ti e of issue 4 a. :e"entures $2c ". Pre iu on re!e ption of !e"entures $2c c. 3oss on issue of debentures A"c !. Capital reser(e $2c %f the rate of !epreciation un!er 1.:... etho! is 15> p.a., the original cost of the achine is ` 10,00,000, Scrap (alue at the en! of its useful life is ` 2,00,000, then the !epreciation for the first ,ear 'ill "e &&&& a. ` +,50,000 ". ` 1,20,000 c. ` 1,00,000 !. ` =0,000 1hen !e"entures are issue! as collateral securit, &&&& a. 6o interest is paid on debentures ". %nterest is pai! on face (alue c. %nterest is pai! on issue price !. %nterest pai! !on arket price Sacrificing ratio is calculate! in the case of &&&& a. Admission of a partner ". <etire ent of a partner c. :eath of a partner !. %nsol(enc, of a partner 1hen an en!orse! "ill is !ishonoure!, the Kournal entr, in the "ooks of the !ra'er 'ill "e a. :ra'ee $2c :r. To +2< $2c b. Dra ee A"c Dr. #o Creditor A"c c. +2< $2c :r. To Cre!itor $2c !. )one of these $ !re' a "ill on +. $ en!orse! the "ill to C in full settle ent of his !e"t of `35,000 at 2> !iscount an! pai! cash ` 5000. 1hat 'ill "e the a ount of the "ill4 a. ` 30,000 ". ` 20,;00 c. ` ,.,$00 !. ` 30,;00

45. 4#.

4;.

4=. 40. 50.

51.

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53.

54.

55.

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#3. #4. #5. ##.

%f !e"entures of ` 4,;0,000 are issue! in consi!eration of net assets of ` 5,00,000, the "alance of ` 30,000 'ill "e cre!ite! to &&&& a. P * 5 $2c ". Goo!'ill $2c c. General reser(e $2c d. Capital 5eserve A"c 1hich of the follo'ing errors 'ill not "e re(eale! in Trial "alance 4 a. Purchases "ook 'as o(ercast ", ` 100 ". Purchase of goo!s for ` 100 for cash 'as !e"ite! to Purchases $2c, "ut o itte! to "e entere! in cash "ook c. Sales "ook 'as un!ercast ", ` 500 d. Purchase of material for ` $00 used for installation of machinery as debited to Purchases A"c SECTION B MERCANTILE LAW I$9 supplies gol! to I+9, a -e'eler, shop o'ner, to ake an orna ent. I+9 charge! ` 1000. The contract is &&&& a. Hire Purchase ". 7uture Sale c. Contract of labour !. $gree ent to sell Sh,a agrees to sell to Dohan, all the angoes 'hich 'ill "e pro!uce! ne8t ,ear in his gar!en. This is an agree ent of &&& goo!s. a. Future ". Lnascertaine! c. $scertaine! !. Contingent Datch fi8ing "et'een a pla,er an! "roker is a. .ali! b. 7oid c. %llegal !. Lnenforcea"le $ sol! a gol! chain to I+9 on sale or return "asis an! I+9 sol! the sa e to IC9 on sale or return "asis IC9 lost the chain. 1ho has to "ear the loss 4 a. ". C c. $ !. none of these $ partner a, "e e8pelle! fro the fir on fulfill ent of the con!ition that po'er of e8pulsion is e8ercise! a. %n goo! faith ". DaKorit, of partners c. $s gi(en ", e8press contract d. All of the above I@9 sol! so e goo!s to IA9 'hich IA9 "elie(es to "e of the "est ?ualit,. +ut the goo!s are of inferior ?ualit,. %t is a case of/ a. 7rau! b. %ista8e c. Disrepresentation !. Coercion <eser(e price is consi!ere! in case of a. Sale by auction ". Sale ", sa ple c. Sale ", !escription !. $ll of the a"o(e %n case of partnership, unless other'ise agree!, in the e(ent of losses the loss of the fir has to "e "orn ", all the partners in &&&& a. e?ual b. profit sharin! c. capital !. ", !ra' of lots @ threats to kill ,9s son if , !oes not sell his house to hi . A enters into an agree ent to sell the house. Such an agree ent 'ill "e treate! as an agree ent entere! into un!er. a. frau! ". un!ue influence c. coercion !. isrepresentation Passing of propert, constitutes i portant ele ent in !eci!ing legal rights an! lia"ilities lies 'ith &&&& a. "u,er ". seller c. both a 2 b !. )one The ain ai of Sale of goo!s $ct, 1030 is to transfer &&&& a. O'nership b. Property c. Possession of goo!s !. none of these Onl, those agree ent 'hich &&&&& contracts a. $re not (ali! ". Contain a pro ise c. $re not legall, enforcea"le d. Are le!ally enforceable M(er, partner is an agent of fir as 'ell as &&&& of the fir a. !e"tor b. principal c. cre!itor !. e plo,ee

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$ccor!ing to Sale of Goo!s $ct, the ter !eli(era"le state eans a state in 'hich "u,er &&&& to take !eli(er, of goo!s a. a, "oun! or a, not "oun! ". is not "oun! c. is bound !. $ll of the a"o(e %f "oth parties are istaken as to essential atter, then the contract is a. %llegal ". .oi!a"le c. .ali! d. 7oid &&&& $gree ents are create! ", situation. a. la' ". 'ritten c. (oi! d. implied 7or a! itting the partner in partnership, consent shoul! "e gi(en ", a. aKorit, of partners ". one or ore partners c. all the partners !. none of these $ ke, of 'arehouse, 'here the goo!s are place!, is gi(en to +u,er is &&& t,pe of !eli(er,. a. constructi(e b. symbolic c. actual !. con!itional %n case of a "reach of contract, re e!ies a(aila"le to aggrie(e! part, are a. Suit for recession ". Suit of !a ages c. Suit for specific perfor ance d. All of the above 1hen the propert, on goo!s is transferre! fro seller to "u,er at once. This contract is calle!. a. $gree ent to Sell b. Sale c. 7uture Sale !. $ll of the a"o(e D2s 5a' "ook * Co. a!e an offer to sell a ne' "ook onl, for the +ar council e "ers. This is a &&&& offer. a. Specific ". % plie! c. General !. %n(itation to offer 1hich of the follo'ing is not a !isa"ilit, of unregistere! fir a. 4t cannot be sued by third party ". %t cannot clai a set off e8cee!ing ` 100 c. %t cannot file a suit against the thir! part, !. %ts partners cannot file a suit against the fir %f a person pro ises to arr, "ut refuses to !o so, then &&&& !a ages has to "e pai! a. Special b. e&emplary c. no inal !. none of these Holi!a, packages a!(ertise ent ", tour operators is &&&& a. Counter offer b. 4nvitation to offer c. Cross offer !. $ll of the a"o(e $ partner 'ho !oes not contri"ute capital in the fir an! !oes not participate acti(el, in the "usiness "ut allo's the fir to use his na e along 'ith goo!'ill is calle! as &&& partner a. 5i ite! partner ". $cti(e partner c. Sleeping partner d. 6ominal partner The a ount earne! for the contract as uch as perfor e! a. 9uantum meruit ". <ecession c. %nKunction !. )one of these 5egal o"ligations eans a !ut, enforcea"le ",/ a. 3a ". Societ, c. Custo !. Court 1hen a "ook seller sells a "ook on cash, it is kno'n as &&&& contract a. Lnilateral ". M8ecutor, c. +ilateral d. :&ecuted I@9, a coolie taken the luggage of IA9. @ took the luggage upto the ta8i, A !i!n9t stop @ to take the luggage. %n this case A is &&& to pa, the a ount. a. not "oun! ". free c. bound !. none of these 1hich of the follo'ing is not true in case of inor 4 a. <ule of estoppel ". <atification of ter s on attaining aKorit, c. Contract 'ith inor is (ali! d. All of the above

=4. =5. =#.

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02. 03.

%f $ pai! price to car, "ut the sai! to !eli(er the car in future. %t is a &&& contract a. e&ecutory ". e8ecute! c. future !. co plete! $uction sale 'ill "e co plete! ", &&&&& a. !eli(er, of goo!s ". price pai! to goo!s c. fall of hammer !. none of these )on fulfill ent of o"ligation ", offeree precee!ing to acceptance. The offer is a. Co plete! ". Co unicate! c. <e(oke! d. 3apsed @ pai! to A 1 5akh for purchase of a flat. A pro ises to gi(e possession of flat after one ,ear. A9s pro ise to gi(e possession of flat is &&&& consi!eration Change in the constitution of the fir takes place in the follo'ing cases e8cept in a. %nsol(enc, of a partner ". <etire ent of a partner c. $! ission of a partner d. chan!e in profit sharin! ratio %n or!er to sustain a action for !eceit, there ust "e a proof of a. Fraud ". Ln!ue influence c. coercion !. isrepresentation $+C are partners. $ takes a house on rental "asis for the fir purpose an! faile! to pa, the rent. House o'ner can reco(er rent fro a. $ onl, ". + * C onl, c. $ * C Onl, d. All partners :octrine of ca(eat e ptor !oes not appl, 'hen &&&&& a. goo!s are purchase! ", !escription ". goo!s are purchase! ", sa ple as 'ell as !escription c. goo!s are purchase! ", sa ple d. All of the above $ inor can "eco e the partner, 'ith the consent of &&&&& a. parents ". aKorit, of partners c. guar!ian d. all partners $ stu!ent agree!, un!er pressure, to gift his entire propert, to his e!ucational guru. Such agree ent can "e set asi!e on the groun! of/ a. Disrepresentation ". 7rau! c. Distake d. ;ndue influence