99 + Mcqs in CPT - 2018 Page 1 McqOptions

1.	Proposal may be:
A.	general
B.	specific
C.	Implied or express
D.	any of the above
Answer» E.

Discussion

2.	The communication of acceptance is complete as against the offer
A.	whenacceptance comes to the knowledge of offeror
B.	when it is put into transmission and leaves his power to reject
C.	when acceptance is reached to offer
D.	None of the above
Answer» C. when acceptance is reached to offer

Discussion

3.	An offer made without any words spoken or written is
A.	specific offer
B.	cross offer
C.	implied offer
D.	counter offer
Answer» D. counter offer

Discussion

4.	right in ram means
A.	right to sell
B.	right to sue buyer for amount paid
C.	right to enjoy the goods against whole world
D.	right to buy the goods
Answer» D. right to buy the goods

Discussion

5.	A voidable contract__
A.	can be enforced by both the parties
B.	can be enforced by one or more of the parties only
C.	can be enforced at the option of law
D.	can not be enforced by both parties
Answer» C. can be enforced at the option of law

Discussion

6.	A businessman purchased goods for Rs.25,00,000 and sold 80% of such goods during the accounting year ended 31st March, 2009. The market value of the remaining goods was Rs.4,00,000. He valued the closing Inventory at cost. He violated the concept of
A.	Money measurement
B.	Conservatism.
C.	Cost.
D.	Periodicity.
Answer» C. Cost.

Discussion

7.	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.
Answer» E.

Discussion

8.	If an individual asset is increased, there will be a corresponding
A.	Increase of another asset or increase of capital
B.	Decrease of another asset or increase of liabilty
C.	Decrease of specific liability or decrease of capital
D.	Increase of drawings and liability
Answer» C. Decrease of specific liability or decrease of capital

Discussion

9.	Decrease in the balance of trade receivables results in _
A.	Increase in cash.
B.	Increase in liabilities.
C.	Increase in capital.
D.	Increase in Loan.
Answer» B. Increase in liabilities.

Discussion

10.	preference shares of Rs.4,00,000 were redeemed at a premium of 2% by the issue of equity shares of Rs.2,00,000 at a premium of 12%. The amount to be transferred to CRR will be Rs. _
A.	2,84,000
B.	2,04,000
C.	1,84,000
D.	2,00,000
Answer» E.

Discussion

11.	X . took over the assets of Rs.4,60,000 liability of Rs.30,000 of M/s B Ltd for a purchase consideration of rs 440000 the company issued 10% debunture of RS 100 Each at a prmium of 10% towards the purchase consideration . No of debuntures issued will be
A.	4,200
B.	4,000
C.	3000
D.	4400
Answer» C. 3000

Discussion

12.	A Company issued 6,000, 10% debentures of Rs. 100 each at a discount of 10% repayable after 5 years at a premium of 5%. Total loss on issue of debentures will be Rs.
A.	30,000
B.	90,000
C.	60,000
D.	75,000
Answer» B. 90,000

Discussion

13.	Which of the following can be utilized for redemption of preference shares?
A.	The proceeds of fresh issue of equity shares
B.	The proceeds of issue of debentures
C.	The proceeds of issue of fixed deposit
D.	All of the above
Answer» B. The proceeds of issue of debentures

Discussion

14.	Discount on issue of debentures is a_
A.	Revenue loss to be charged in the year of issue
B.	Capital loss to be written off from capital reserve
C.	Capital loss to be written off over the tenure of the debentures
D.	Capital loss to be shown as goodwill
Answer» D. Capital loss to be shown as goodwill

Discussion

15.	If debentures are issued as collateral security the journal entry will be _
A.	Debit Debenture Suspense A/c and Credit Debentures A/c
B.	Debit Cash A/c and Credit Loan A/c
C.	Debit Cash A/c and Credit Debentures A/c
D.	Debit Debenture securities A/c & Credit Cash A/c
Answer» B. Debit Cash A/c and Credit Loan A/c

Discussion

16.	A company has forfeited 3,000 equity shares of Rs.10 each. for non payment of Rs.3 per share on which Rs.9 called up. On forfeiture, Share capital Ale is debited by Rs. __
A.	27,000
B.	30,000
C.	22,000
D.	9,000
Answer» B. 30,000

Discussion

17.	M/s Rivera Ltd. forfeited 300 equity shares of Rs.10 each issued at par for non payment of Rs.4 per hare by the holder These shares are reissued at Rs.5 share as fully paid.what is the amount to be transferred to capital reseve a/c?
A.	Rs.300
B.	Rs.500
C.	Rs.600
D.	Rs.800
Answer» B. Rs.500

Discussion

18.	When shares are forfeited, the Share Capital Ale is debited with __ and the Share Forfeiture Ale is credited with
A.	Paid-up capital of Shares Forfeited; called up capital of shares forfeited
B.	Called up capital of Shares Forfeited; Calls in arrear of shares forfeited
C.	Called up capital of Shares Forfeited; Amount received on shares forfeited
D.	Calls in arrears of Shares Forfeited; Amount received on shares forfeited
Answer» D. Calls in arrears of Shares Forfeited; Amount received on shares forfeited

Discussion

19.	A partnership firm maintains its accounts on calendar year basis. B, one of the three partners died on 31/03/10. The profit of the firm for the year 2009 was Rs.75,000, which was distributed among the partners equally. The share of B in the profits of the firm till the date of his death on the basis of previous year’s profits will be Rs. __
A.	25,000
B.	6,250
C.	18, 750
D.	37,500
Answer» C. 18, 750

Discussion

20.	Capital employed = Rs.6,00,000 Average profit = Rs.1,05,000 Normal rate of return = 15% Value of goodwill under Capitalisation method will be Rs. _
A.	1,00,000
B.	90,000
C.	1,10,000
D.	None
Answer» B. 90,000

Discussion

21.	in case of death of a partner, the amount of jlp received by the firm will be distributed
A.	To all the partners as per their old profit
B.	To the continuing partners as per their new profit sharing ratio
C.	To the continuing partners as per their ratio
D.	To the continuing partners as per their gaining ratio
Answer» B. To the continuing partners as per their new profit sharing ratio

Discussion

22.	X & Y are partners in a firm sharing profits and losses in the ratio of 3: 2. Z was admitted as a new partner for i/s” share of the future profits. Z takes his entire share from X only. The new profit sharing ratio of X, Y & Z will be
A.	12 : 8 : 4
B.	2 : 2 : 1
C.	1 : 1 : 1
D.	None of the above
Answer» C. 1 : 1 : 1

Discussion

23.	X, Y & Z are partners in a firm sharing profits and losses in the ratio of 5 : 4 : 3. Z died on 30/09/16. Profit for the year 2016 – 17 was Rs.40,000. What is the share of Z in the profits of the firm till the date of his death?
A.	Rs.6,000
B.	Rs.5,000
C.	Rs.4,500
D.	Nil
Answer» C. Rs.4,500

Discussion

24.	Tom & Jerry are partners in a firm sharing the profits and losses in the ratio of 3:2. Tom’ capital Rs.70,000 & Jerry’s capital Rs.50,000. They agreed to take Shiva as a new partner for 1/5th share in future profits. Calculate the amount of capital to be brought in by shiva.
A.	Rs.16,000
B.	Rs.18,000
C.	Rs.80,000
D.	Rs.30,000
Answer» E.

Discussion

25.	Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. In what ratio do the remaining partners contribute to such compensation amount?
A.	Gaining Ratio
B.	Capital Ratio.
C.	Sacrificing Ratio
D.	Profit Sharing Ratio
Answer» B. Capital Ratio.

Discussion

26.	P & Q are the partners in a firm sharing profits and losses in the ratio 3:2 with capitals of Rs.1,50,000 and Rs.1,00,000 respectively. They admitted R as a partner with Rs.90,000 as capital for 1/4th share in the profits of the firm. They adjust the capitals of other partners according to R’s capital and his share in the business. How much cash will be brought in by P?
A.	Rs.8,000
B.	Rs.9,000
C.	Rs.12,000
D.	Rs.10,000
Answer» D. Rs.10,000

Discussion

27.	Interest on capital will be paid to the partners if provided for in the agreement but only from
A.	Current year’s Profits.
B.	Reserves
C.	Accumulated Profits.
D.	Goodwill.
Answer» B. Reserves

Discussion

28.	Fluctuating Capital A/c is credited by__
A.	Interest on Partner’s capital
B.	Partner’s share in Profit of the year
C.	Partner’s salary or remuneration
D.	All of the above
Answer» E.

Discussion

29.	When outflow of economic resources to settle an 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.	Provision
B.	Contingent liability
C.	Secured Loan
D.	Unsecured Loan
Answer» C. Secured Loan

Discussion

30.	A company has filed a legal suit against competitive company claiming Rs.5,00,000 for infringement of patent rights. The outcome of the legal suit is uncertain. The claim may be treated as _
A.	Income
B.	Contingent Asset
C.	Provision
D.	Contingent Liability
Answer» C. Provision

Discussion

31.	A machinery was purchased for Rs.1,00,000, Expenses incurred were – Brokerage 2%; Repairs Rs.1,500; Transport Rs.3000; trial run Rs.7,000; installation Rs.4,500 After operating the machine for 11 months an amount of Rs.8,000 was spent on repairs .Cost of machinery to be debited to Machinery A/c will be Rs. —
A.	1,18,000
B.	1,26,000
C.	1,00,000
D.	1,02,000
Answer» B. 1,26,000

Discussion

32.	While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing Inventory of the previous year. In the previous year, closing Inventory was valued more by Rs.45,000. As a result
A.	Previous year’s profit is overstated and current year’s profit is also overstated
B.	Previous year’s profit is understated and current year’s profit is overstated
C.	Previous year’s profit is understated and current year’s profit is also understated
D.	Previous year’s profit is overstated and current year’s profit is understated
Answer» E.

Discussion

33.	Goods of Rs.800 (sales price) sent on sale on approval basis were included in the sales book.The profit included in the sales was 25% on cost. Inventory with the party will increase our inventory by __
A.	Rs. 600
B.	Rs.640
C.	Rs.680
D.	Rs.700
Answer» C. Rs.680

Discussion

34.	In the course of locating the reason for the difference in the trial balance, it has been found that an amount received from a customer has been debited to his account and a purchase from a supplier has been wrongly entered in the ledger as Rs.17,720 instead of Rs.17,270. These errors may be classified as_
A.	Errors of commission.
B.	Errors of omission.
C.	Errors of Principle.
D.	Both errors of commission and omission.
Answer» B. Errors of omission.

Discussion

35.	Stamp duty for the purchase of a property is debited to Legal Expenses A/c. This is an error of
A.	Commission
B.	Omission
C.	Principle
D.	Not an error
Answer» D. Not an error

Discussion

36.	A purchase return of Rs.2,000 has been wrongly debited to Sales Returns A/c. Due to this error, in the trial balance _
A.	he total of debit balances will be Rs.2,000 more than the total of credit balances
B.	he total of credit balances will be Rs.2,000 more than the total of debit balances.
C.	he total of debit balances will be Rs.4,000 more than the total of credit balances
D.	he total of credit balances will be Rs.4,000 more than the total of debit balances.
Answer» D. he total of credit balances will be Rs.4,000 more than the total of debit balances.

Discussion

37.	Depletion method of charging depreciation is Inventory was valued more by Rs.45,000. As a adopted for which of the following assets?
A.	Plant and machinery
B.	Wasting Assets like mines and quarries
C.	Buildings
D.	Trademarks
Answer» C. Buildings

Discussion

38.	Cost of an asset= Rs.2,00,000 Rate of depreciation = 10% under WDV method Value of the asset at the end of 2nd year will be Rs.
A.	1,80,000
B.	1,62,000
C.	1,48,000
D.	1,50,000
Answer» C. 1,48,000

Discussion

39.	X and Y entered into a joint venture to underwrite the shares of K Ltd at a commission of 5%. K Ltd made an issue of 1,00,000 equity shares of Rs.10 each. 90% of the issue is subscribed by the public. The profit sharing between X and Y is 2 : 3. The balance unsubscribed shares are purchased by X and Y in profit sharing ratio. How many shares are purchased by Y?
A.	4,000
B.	6,000
C.	10,000
D.	90,000
Answer» C. 10,000

Discussion

40.	Which of the following statements is not true?
A.	Joint venture is a going concern
B.	Joint venture is terminable in nature
C.	Joint venture does not follow accrual basis of accounting
D.	co-venturers share the profit in agreed ratio
Answer» B. Joint venture is terminable in nature

Discussion

41.	Statement which of the following statements is true?
A.	Memorandum Joint Venture Account is prepared to find out profit on venture
B.	Memorandum Joint Venture Account is prepared to find out amount due from co- venturer
C.	Memorandum Joint Venture Account is prepared when separate sets of books is maintained
D.	In Memorandum Joint Venture Account only one venturer’s transactions are recorded.
Answer» B. Memorandum Joint Venture Account is prepared to find out amount due from co- venturer

Discussion

42.	If consignor draws a bill on consignee and discounted it with the banker, the discounting charges will be debited in
A.	general a/c
B.	consignment a/c
C.	consignee a/c
D.	trade receivable a/c
Answer» B. consignment a/c

Discussion

43.	While preparing BRS mr x Found that a bil of exchange for rs 5000 which was discounted with bank was dishonoured and the bank paid nothing of rs 100.the entry required in the books of X will be
A.	customer A/c Dr 5100 to bank A/C 5100
B.	Customer A/C DR. 5000 To Bank Charges A?c 100
C.	Customer A/c Dr 5000 Bank Charges ac dr 100 to bank a/c 5100
D.	Customer A/c DR 5100 To Bank A/c Dr 5100 To Bank A/c 5000 To Bank Chartges A/c 100
Answer» B. Customer A/C DR. 5000 To Bank Charges A?c 100

Discussion

44.	A draws a bill on B for Rs 100000 for 3 months.the bill was discounted wiht bnak at 15 % p.a half of the proceeeds are remitted to B.the amount received by B will be Rs
A.	33334
B.	25000
C.	30000
D.	48125
Answer» E.

Discussion

45.	X draws a bill On 1/04/16 for 60000 for 3 months y accepted it 2/02/16.the bill was discounted on 2/05/06 @ 12% p.a the amount of discounted will be rs
A.	1800
B.	1200
C.	600
D.	1300
Answer» C. 600

Discussion

46.	A bill Of Rs 40000 was discounted by p with his bank for 39000 at maturilty the bill returned dishonoured noting charges amounted to 500 how much amount will the bank deduct from p’s bank balance at he time of such dishonour?
A.	Rs40000
B.	Rs39000
C.	Rs 39500
D.	Rs 40500
Answer» E.

Discussion

47.	Goods of the sale price of Rs.8000 were sent to a customer on sale or return basis. Till the end of the year the goods were neither returned nor approved. The profit is 25% on cost. The inventory with customer to be included to the closing inventory of the trader will be Rs
A.	6400
B.	7000
C.	6000
D.	6500
Answer» B. 7000

Discussion

48.	Opening capital = Rs.5,00,000 Drawings = Rs.1,20,00Assets = Rs.8,500 Liabilities =Rs.75,00 Closing Capital & Profit will be Rs._
A.	8,50,000 & 3,95,000
B.	7,75,000 & 3,95,000
C.	7,75,000 & 1,55,000
D.	8,50,000 & 3,55,000
Answer» C. 7,75,000 & 1,55,000

Discussion

49.	An amount of Rs.68,000 was paid on 3/3/17 for advertisement in a newspaper. This was published in the newspaper on 3/4/17. This expenditure will be shown as __
A.	Liability in the balance sheet on 31/3/17
B.	Prepaid expenses on the assets side of Balance Sheet on 31/3/17
C.	An expense in the Profit and Loss A/c for the year ended 31/3/17
D.	None of the above
Answer» C. An expense in the Profit and Loss A/c for the year ended 31/3/17

Discussion

50.	Capital at the end of the year Rs.5,00,000 Drawings during the year Rs.50,000 Profit for the year Rs.1,00,000 Interest on opening capital @ 10% per annum will be
A.	50,000
B.	5,50,000
C.	45,000
D.	55000
Answer» D. 55000

Discussion

Explore topic-wise MCQs in Common Proficiency Test (CPT) - ICAI.

Proposal may be:

The communication of acceptance is complete as against the offer

&nbsp;An offer made without any words spoken or written is

right in ram means

A voidable contract__

A businessman purchased goods for Rs.25,00,000 and sold 80% of such goods during the accounting year ended 31st March, 2009. The market value of the remaining goods was Rs.4,00,000. He valued the closing Inventory at cost. He violated the concept of

A change in accounting policy is justified

If an individual asset is increased, there will be a corresponding

Decrease in the balance of trade receivables results in _

preference shares of Rs.4,00,000 were redeemed at a premium of 2% by the issue of equity shares of Rs.2,00,000 at a premium of 12%. The amount to be transferred to CRR will be Rs. _

&nbsp;X . took over the assets of Rs.4,60,000 liability of Rs.30,000 of M/s B Ltd for a purchase consideration of rs 440000 the company issued 10% debunture of RS 100 Each at a prmium of 10% towards the purchase consideration . No of debuntures issued will be

A Company issued 6,000, 10% debentures of Rs. 100 each at a discount of 10% repayable after 5 years at a premium of 5%. Total loss on issue of debentures will be Rs.

Which of the following can be utilized for redemption of preference shares?

Discount on issue of debentures is a_

If debentures are issued as collateral security the journal entry will be _

A company has forfeited 3,000 equity shares of Rs.10 each. for non payment of Rs.3 per share on which Rs.9 called up. On forfeiture, Share capital Ale is debited by Rs. __

M/s Rivera Ltd. forfeited 300 equity shares of Rs.10 each issued at par for non payment of Rs.4 per hare by the holder These shares are reissued at Rs.5 share as fully paid.what is the amount to be transferred to capital reseve a/c?

When shares are forfeited, the Share Capital Ale is debited with __ and the Share Forfeiture Ale is credited with

Capital employed = Rs.6,00,000 Average profit = Rs.1,05,000 Normal rate of return = 15% Value of goodwill under Capitalisation method will be Rs. _

in case of death of a partner, the amount of jlp received by the firm will be distributed

X &amp; Y are partners in a firm sharing profits and losses in the ratio of 3: 2. Z was admitted as a new partner for i/s&rdquo; share of the future profits. Z takes his entire share from X only. The new profit sharing ratio of X, Y &amp; Z will be

X, Y &amp; Z are partners in a firm sharing profits and losses in the ratio of 5 : 4 : 3. Z died on 30/09/16. Profit for the year 2016 &ndash; 17 was Rs.40,000. What is the share of Z in the profits of the firm till the date of his death?

Tom &amp; Jerry are partners in a firm sharing the profits and losses in the ratio of 3:2. Tom&rsquo; capital Rs.70,000 &amp; Jerry&rsquo;s capital Rs.50,000. They agreed to take Shiva as a new partner for 1/5th share in future profits. Calculate the amount of capital to be brought in by shiva.

Outgoing partner is compensated for parting with firm&rsquo;s future profits in favour of remaining partners. In what ratio do the remaining partners contribute to such compensation amount?

Interest on capital will be paid to the partners if provided for in the agreement but only from

Fluctuating Capital A/c is credited by__

When outflow of economic resources to settle an 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 company has filed a legal suit against competitive company claiming Rs.5,00,000 for infringement of patent rights. The outcome of the legal suit is uncertain. The claim may be treated as _

While finalizing the current year&rsquo;s profit, the company realized that there was an error in the valuation of closing Inventory of the previous year. In the previous year, closing Inventory was valued more by Rs.45,000. As a result

Goods of Rs.800 (sales price) sent on sale on approval basis were included in the sales book.The profit included in the sales was 25% on cost. Inventory with the party will increase our inventory by __

Stamp duty for the purchase of a property is debited to Legal Expenses A/c. This is an error of

&nbsp;A purchase return of Rs.2,000 has been wrongly debited to Sales Returns A/c. Due to this error, in the trial balance _

Depletion method of charging depreciation is Inventory was valued more by Rs.45,000. As a adopted for which of the following assets?

Cost of an asset= Rs.2,00,000 Rate of depreciation = 10% under WDV method Value of the asset at the end of 2nd year will be Rs.

Which of the following statements is not true?

Statement which of the following statements is true?

If consignor draws a bill on consignee and discounted it with the banker, the discounting charges will be debited in

While preparing BRS mr x Found that a bil of exchange for rs 5000 which was discounted with bank was dishonoured and the bank paid nothing of rs 100.the entry required in the books of X will be

A draws a bill on B for Rs 100000 for 3 months.the bill was discounted wiht bnak at 15 % p.a half of the proceeeds are remitted to B.the amount received by B will be Rs

X draws a bill On 1/04/16 for 60000 for 3 months y accepted it 2/02/16.the bill was discounted on 2/05/06 @ 12% p.a the amount of discounted will be rs

A bill Of Rs 40000 was discounted by p with his bank for 39000 at maturilty the bill returned dishonoured noting charges amounted to 500 how much amount will the bank deduct from p&rsquo;s bank balance at he time of such dishonour?

Goods of the sale price of Rs.8000 were sent to a customer on sale or return basis. Till the end of the year the goods were neither returned nor approved. The profit is 25% on cost. The inventory with customer to be included to the closing inventory of the trader will be Rs

Opening capital = Rs.5,00,000 Drawings = Rs.1,20,00Assets = Rs.8,500 Liabilities =Rs.75,00 Closing Capital &amp; Profit will be Rs._

An amount of Rs.68,000 was paid on 3/3/17 for advertisement in a newspaper. This was published in the newspaper on 3/4/17. This expenditure will be shown as __

Capital at the end of the year Rs.5,00,000 Drawings during the year Rs.50,000 Profit for the year Rs.1,00,000 Interest on opening capital @ 10% per annum will be

An offer made without any words spoken or written is

X . took over the assets of Rs.4,60,000 liability of Rs.30,000 of M/s B Ltd for a purchase consideration of rs 440000 the company issued 10% debunture of RS 100 Each at a prmium of 10% towards the purchase consideration . No of debuntures issued will be

X & Y are partners in a firm sharing profits and losses in the ratio of 3: 2. Z was admitted as a new partner for i/s” share of the future profits. Z takes his entire share from X only. The new profit sharing ratio of X, Y & Z will be

X, Y & Z are partners in a firm sharing profits and losses in the ratio of 5 : 4 : 3. Z died on 30/09/16. Profit for the year 2016 – 17 was Rs.40,000. What is the share of Z in the profits of the firm till the date of his death?

Tom & Jerry are partners in a firm sharing the profits and losses in the ratio of 3:2. Tom’ capital Rs.70,000 & Jerry’s capital Rs.50,000. They agreed to take Shiva as a new partner for 1/5th share in future profits. Calculate the amount of capital to be brought in by shiva.

Outgoing partner is compensated for parting with firm’s future profits in favour of remaining partners. In what ratio do the remaining partners contribute to such compensation amount?

While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing Inventory of the previous year. In the previous year, closing Inventory was valued more by Rs.45,000. As a result

A purchase return of Rs.2,000 has been wrongly debited to Sales Returns A/c. Due to this error, in the trial balance _

A bill Of Rs 40000 was discounted by p with his bank for 39000 at maturilty the bill returned dishonoured noting charges amounted to 500 how much amount will the bank deduct from p’s bank balance at he time of such dishonour?

Opening capital = Rs.5,00,000 Drawings = Rs.1,20,00Assets = Rs.8,500 Liabilities =Rs.75,00 Closing Capital & Profit will be Rs._