CA CPT Question paper December

Will you please share with me the Common Proficiency Test of Mercantile Law and Fundamentals of Accounting of December 2014 as it is very urgent for me?

[Shaleen]

As you want to get the Common Proficiency Test of Mercantile Law and Fundamentals of Accounting of December 2014 so here is the information of the same for you:

1. A sells his dog through auction sale. B was the highest bidder. B purchases the dog was of unsound mind but A doesn't disclose this fact to B. The act of A is ___________?
a) The act is fraudulent
b) It amounts to sale
c) It amounts to illegal act
d) It doesn't amount to fraud

2. Which of the following can be a party to enter into a contract?
a) A convict under sentence
b) Joint stock company
c) Minor
d) All of the above

3. An unsound person 'B' is liable for necessaries provided to him to the extent of :-
a) 'B' estate
b) B personally
c) B's relative
d) B's son

4. Silence amounts to fraud when:-
a) Silence is not equivalent to speech
b) Silence is equivalent to speech
c) Where circumstances show
d) None

5. A agrees to pay 10 lacs to B if B procures an employment for A in Income Tax Department.
a) Valid
b) Voidable
c) Void
d) Illegal

6. A person who had the means of discovering the truth with ordinary diligence can avoid the contract on the ground of misrepresentation. This statement is _______
a) True
b) False
c) Partly true
d) Can't say

7. Agreement the meaning of which is uncertain is _______
a) Valid
b) Void
c) Voidable
d) Illegal

8. Contract can be discharged by:-
a) Novation
b) Performance
c) Alteration
d) All of the above

9. Acceptance of consideration lesser than that agreed is known as _______
a) Rescission
b) Novation
c) Remission
d) Alteration

10. Reciprocal promises are __________
a) Promises made by both parties to the contract
b) Promise made by promisor only
c) Promise made by pro

11. In a contract where personal consideration is not the foundation of the contract, the contract may be performed by :-
a) Promisor himself
b) Promisor's agent
c) Promisor's legal representative
d) Any of the above

12. Amans, age of 17 yrs enter into a contract for the sale of property but breaches the contract before performance. Can buyer file any claim in this condition?
a) Yes
b) No
c) Can't say
d) None

13. A contingent contract dependent upon non-happening of a future uncertain event becomes vois when such event ______
a) Becomes impossible to occur
b) Happens
c) Does not happen
d) None of these

14. When the goods have been actually identified by the parties at the time of contract of sale, these goods are called _________
a) Specific goods
b) Ascertained goods
c) Uncertain goods
d) None of these

15. _____________ is the stipulation collateral to the main purpose of the contract, the breach of which gives rise to a claim for damages.
a) Warranty
b) Condition
c) Both a and b
d) None of these

16. Implied condition of merchantability is when buyer examines the good.
a) Existed
b) Preassumed
c) Is applicable
d) Not applicable

17. Unpaid seller can sell the goods in the following cases:-
a) When the goods are of perishable nature
b) When the goods are of durable nature
c) When the unpaid seller gives a notice to the buyer
d) Both a and c

18. "Jus in personam" means; right against :-
a) Specific goods
b) Specific person
c) Public at large
d) None of these

19. The essence of "Right of Lien" is to _____________
a) Retain possession
b) Regain
c) Sell of goods
d) All of the above

20. When the buyer gives the price of the good and seller becomes insolvent then what remedy is available with buyer against the goods and the seller?
a) Only rateable dividend in respect of price
b) Goods if property in goods has passed to the buyer
c) No claim on goods
d) Both a and b

1. Capital work in progress is shown in the balance sheet under _____
a) Share capital
b) Current Assets
c) Fixed Assets
d) Current Liabilities

2. Which of the following statements is correct?
a) Goodwill is a fictitious asset
b) Patents are intangible asset
c) Debtors are current liability
d) None of the above

3. ________ is allowed by the consignor to the consignee to put hard work while introducing a new product in the market.
a) Commission on total sales
b) Del-credere commission
c) Over riding commission
d) Extra salary

4. The company decided to redeem 5000 redeemable preference shares of Rs.100 each. The company issued 2000 equity shares of Rs.100 each. The amount to be transferred to CRR is _____.
a) Rs.2,00,000
b) Rs.3,00,000
c) Rs.1,50,000
d) Rs.5,00,000

5. Which account should be credited in case of shares issued at premium?
a) Share capital account
b) Securities premium A/c
c) Share forfeiture A/c
d) Both (a) & (b)

6. Income tax demand disputed will be _____
a) Contingent liability
b) Current Liability
c) Possible Asset
d) Possible Liability

7. Goods worth Rs.100 bought from Narayan have remained unrecorded. What will be the effect of the error on trial balance.
a) No effect
b) Trial Balance Credit total will be short by Rs.100
c) Trial Balance Debit total will be short by Rs.100
d) Trial Balance Credit total will be increased by Rs.200

8. Credit balance in the ledger will be either _____ or ____
a) Assets, Revenue
b) Expenses, Assets
c) Liabilities, Revenue
d) Expenses, Liabilities

9. Which method of depreciation is approved as per the income tax rules?
a) Sinking fund method
b) Written Down Value Method
c) Annuity Method
d) None of the above

10. Capital A/c is a _______ A/c.
a) Personal
b) Real
c) Nominal
d) None

11. Cash A/c is a ________ A/c.
a) Personal
b) Real
c) Nominal
d) None

12. Which is not only a subsidiary book, but also a principal book?
a) Cash book
b) Sales book
c) Purchase book
d) Bills receivable book

13. The principle "Debit the receiver and credit the giver" is related to_____
a) Personal a/c
b) Real a/c
c) Nominal a/c
d) None

14. If shares are forfeited, Share Capital a/c is debited with ________
a) Called up face value
b) Face value
c) Paid up face value
d) none of these

15. Wages paid for erection of machinery is debited to _____
a) Machinery A/c
b) Wages A/c
c) Cash A/c
d) None of these

16. Share Premium A/c appears in the Balance Sheet under the heading.
a) Current liabilities
b) Reserves & Surplus
c) Miscellaneous expenditure
d) None of the above

17. The goods or cash taken by the proprietor for his personal use will be debited to ____
a) Expenditure a/c
b) Debtors a/c
c) Drawings a/c
d) None of these

18. Interest on drawings is a ___ to the business
a) Expenditure
b) Gain
c) Liability
d) Loss

19. If a contingent liability becomes probable, it has to be:
a) Shown in notes on accounts
b) Provided in the books of accounts
c) Ignored and no entry will be passed
d) Shown in director's report

20. Capital reserves are created out of:
a) Capital Profits
b) Profits in balance
c) Revenue profits
d) None