ICAI CA CPT Question Paper

Hi I have applied from the Institute of Chartered Accountants of India Chartered Accountant Common Proficiency Test ICAI CA CPT and from preparation of this exam I want the sample question papers of this exam so will you please provide me?

I want the sample question paper of Chartered Accountants Common Proficiency Test CA CPT of ICAI so can you provide me?

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I am providing you the sample question paper of Chartered Accountants Common Proficiency Test CA CPT of ICAI

CA CPT exam question paper

PAPER 1: PRINCIPLES & PRACTICE OF ACCOUNTING

QUESTIONS

True and False

1. State with reasons, whether the following statements are true or false:
(a) Accrual concept implies accounting on cash basis.
(b) The Sales book is kept to record both cash and credit sales.
(c) Bank reconciliation statement is prepared to arrive at the bank balance.
(d) Finished goods are normally valued at cost or market price whichever is higher.
(e) Reducing balance method of depreciation is followed to have a uniform charge for
depreciation and repairs and maintenance together.
(f) Discount at the time of retirement of a bill is a gain for the drawee.
(g) A withdrawal of cash from the business by the proprietor should be charged to profit
and loss account as an expense.
(h) Partners can share profits or losses in their capital ratio, when there is no
agreement.
(i) Receipts and Payments Account highlights total income and expenditure.
(j) Debenture interest is payable after the payment of preference dividend but before
the payment of equity dividend.
(k) Fixed Assets Turnover ratio indicates the firms ability of generating sales per rupee
of long term investment.
Theoretical Framework

2. (a) Distinguish between Money measurement concept and matching concept.
(b) Define revenue receipts and give examples. How are these receipts treated?
Explain.
(c) Change in accounting policy may have a material effect on the items of financial
statements. Explain the statement with the help of an example.
Journal Entries

3. (a) Prepare Journal Entries for the following transactions in the books of Gamma Bros.
(i) Employees had taken stock worth ` 10,000 (Cost price ` 7,500) on the eve of
Deepawali and the same was deducted from their salaries in the subsequent
month.
(ii) Wages paid for erection of Machinery ` 8,000.

2 FOUNDATION EXAMINATION: MAY, 2018

(iii) Income tax liability of proprietor ` 1,700 was paid out of petty cash.
(iv) Purchase of goods from Naveen of the list price of ` 2,000. He allowed 10%
trade discount, ` 50 cash discount was also allowed for quick payment.

Capital or revenue expenditure
(b) Classify the following expenditures as capital or revenue expenditure:
(i) Amount spent on making a few more exists in a Cinema Hall to comply with
Government orders.
(ii) Travelling expenses of the directors for trips abroad for purchase of capital
assets.
(iii) Amount spent to reduce working expenses.
(iv) Amount paid for removal of stock to a new site.
(v) Cost of repairs on second-hand car purchased to bring it into working
condition.

Cash book
4. (a) Prepare a Triple Column Cash Book from the following transactions and bring down
the balance for the start of next month:
2017 `
Nov. 1 Cash in hand 3,000
1 Cash at bank 12,000
2 Paid into bank 1,000
5 Bought furniture and issued cheque 1,500
8 Purchased goods for cash 500
12 Received cash from Mohan 980
Discount allowed to him 20
14 Cash sales 5,000
16 Paid to Amar by cheque 1,450
Discount received 50
19 Paid into Bank 500
23 Withdrawn from Bank for Private expenses 600
24 Received cheque from Parul 1,430
Allowed him discount 20
26 Deposited Paruls cheque into Bank

PAPER 1 : PRINCIPLES AND PRACTICE OF ACCOUNTING 3

28 Withdrew cash from Bank for Office use 2,000
30 Paid rent by cheque 800

Rectification of errors
(b) The following errors were committed by the Accountant of Geete Dye-Chem.
(i) Credit sale of ` 400 to Trivedi & Co. was posted to the credit of their account.
(ii) Purchase of ` 420 from Mantri & Co. passed through Sales Day Book as ` 240
How would you rectify the errors assuming that :
(a) they were detected before preparation of Trial Balance.
(b) they were detected after preparation of Trial Balance but before preparing
Final Accounts, the difference was taken to Suspense A/c.
(c) they were detected after preparing Final Accounts.
Bank Reconciliation Statement
5. The Cash-book of M/s ABC shows ` 27,570 as the balance at Bank as on 31st March,
2017. But this does not agree with balance as per the Bank Statement. On scrutiny
following discrepancies were found:
(i) Subsidy ` 10,250 received from the government directly by the bank, but not
advised to the company.
(ii) On 15th March, 2017 the payments side of the Cash-book was under cast by ` 350.
(iii) On 20th March, 2017 the debit balance of ` 2,156 as on the previous day, was
brought forward as credit balance in Cash-book.
(iv) A customer of the M/s ABC, who received a cash discount of 5% on his account of
` 2,000, paid to M/s ABC a cheque on 24th March, 2017. The cashier erroneously
entered the gross amount in the Cash-Book.
(v) On 10th March, 2017 a bill for ` 5,700 was discounted from the bank, entered in
Cash-book, but proceeds credited in Bank Statement amounted to ` 5,500 only.
(vi) A cheque issued amounting to ` 1,725 returned marked out of date. No entry made
in Cash-book.
(vii) Insurance premium ` 756 paid directly by bank under a standing order. No entry
made in cash-book.
(viii) A bill receivable for ` 1,530 discounted for ` 1,500 with the bank had been
dishonoured on 30th March, 2017, but advice was received on 1st April, 2017.
(ix) Bank recorded a Cash deposit of ` 1,550 as ` 1,505.
Prepare Bank Reconciliation Statement on 31st March, 2017.