21934mtp Cptvolu1 Part2

BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

COMMON PROFICIENCY TEST
Model Test Paper BOS/CPT 8
Time : 4 hours Maximum Marks : 200
The test is divided into four sections.
Every correct answer carries + 1 mark each and 0.25 mark will be deducted for each wrong
answer.
SECTION A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)
1. It is generally assumed that the business will not liquidate in the near foreseeable future
because of______________ concept.
(a) Periodicity (b) Materiality
(c) Matching (d) Going concern
2. Which of the following is correct?
(a) Capital is equal to assets plus liabilities
(b) Assets is equal to liabilities minus capital
(c) Liabilities is equal to capital plus assets
(d) Capital is equal to assets minus liabilities
3. Double column cash book records
(a) Only cash transactions
(b) All transactions
(c) Cash and bank transactions
(d) Cash purchase and cash sale transactions
4. Errors of commission do not permit
(a) Incorrect totaling of the trial balance
(b) Incorrect totaling of the Balance sheet
(c) Trial balance to agree
(d) None of the above
Common Proficiency Test (CPT) Volume - I 203
The Institute of Chartered Accountants of India

MODEL TEST PAPER - 8
5. All of the following have debit balance except

(a) Wages account (b) Trade receivables accounts
(c) Bills payable account (d) Goodwill
6. The term depletion is used for
(a) Fixed assets (b) Natural resources
(c) Intangible assets (d) None of the three
7. A bill of exchange when drawn requires
(a) Noting (b) Discounting
(c) Acceptance (d) None of the above
8. According to the provisions of the Reserve Bank of India, a promissory note cannot be made
payable to the
(a) Bank (b) Endorser
(c) Bearer (d) None of the above
9. Rs.5,000 spent to remove a worn out part and replace it with a new one is
(a) Capital expenditure (b) Revenue expenditure
(c) Deferred revenue expenditure (d) None of the above
10. Outstanding salary account is
(a) Real account (b) Personal account
(c) Nominal account (d) None of the above
11. Drawings are deducted from ________
(a) Sales (b) Purchases
(c) Expenses (d) Capital
12. The trial balance of Meghna shows the opening inventory of Rs. 10,000 which will be_____
(a) Debited to the trading account
(b) Credited to the trading account
(c) Deducted from closing inventory in the balance sheet
(d) Added to closing inventory in the balance sheet
13. Purchase returns appearing in the trial balance are deducted from ____
(a) Sales returns (b) Capital
(c) Sales (d) Purchases
14. _______ will generally show a debit balance
(a) Bank Loan (b) Bad debts recovered
(c) Salary payable (d) Drawings
204 Common Proficiency Test (CPT) Volume - I

15. Purchase of a fixed asset on credit basis is recorded in _____________
(a) Cash book (b) Purchases book
(c) Journal proper (d) None of the above
16. Accounting means recording of _________________
(a) Transactions (b) Events
(c) Both (a) and (b) (d) Neither (a) nor (b)
17. Unless given otherwise, the ratio of sacrifice is the same as________
(a) New profit sharing ratio (b) Equal ratio
(c) Old profit sharing ratio (d) None of the above
18. The ratio in which the continuing partners acquire the outgoing (retired or deceased) partners
share is called ________
(a) Sacrificing ratio (b) Gaining ratio
(c) New profit sharing ratio (d) Old profit sharing ratio
19. A bill of exchange is called a ________ by one who is liable to pay it on the maturity date.
(a) Bill receivable (b) Noted bill of exchange
(c) Bill payable (d) None of the above
20. The amount of calls in arrear is deducted from_____________ to arrive at________.
(a) Issued capital, called up capital (b) Called up capital, issued capital
(c) Paid up capital, called up capital (d) Called up capital, paid up capital
21. Smita places an order to Priya for supply of certain goods yet to be manufactured. On
receipt of order, Priya purchases raw materials, employs workers, produces the goods and
delivers them to Smita. In this case, sale will be presumed to have been made at the time of
(a) Receipt of order (b) Production of goods
(c) Delivery of goods (d) Purchase of raw material
22. If a machinery is purchased for Rs. 1,00,000, the asset would be recorded in the books at
Rs. 1,00,000 even if its market value at that time happens to be Rs. 1,40,000. In case, a year
after, the market value of this asset comes down to Rs. 90,000, it will ordinarily continue
to be shown at Rs. 1,00,000 and not at Rs. 90,000 due to
(a) Realization concept (b) Present value concept
(c) Replacement concept (d) Cost concept
23. Mr. Shyam deposited a cheque on 28th March, 2012 for a sum of Rs.10,000. The cheque
was collected on 4 th April, 2012. If the bank balance as per cash book on
31st March, 2012 is Rs.1,00,000, balance as per pass book will be
(a) Rs.1,10,000 (b) Rs.90,000
(c) Rs.1,00,000 (d) None of the above

24. If cost of goods sold is Rs.1,00,000, sales is Rs.1,25,000, closing inventory is Rs.20,000,
the gross profit will be
(a) Rs.45,000 (b) Rs. 5,000
(c) Rs. 25,000 (d) None of the three
25. X enters into a joint venture with Y. The goods were purchased by X and Y amounting
Rs.20,000 and Rs.40,000 respectively. Y incurred the expenses of Rs.5,000. Goods were sold
by X and Y amounting Rs.22,000 and Rs.39,000. Goods unsold were taken over by Y for
Rs.2,000. The profit or loss on joint venture is
(a) Profit of Rs. 2,000 (b) Loss of Rs. 2,000
(c) Profit of Rs. 1,000 (d) Loss of Rs.1,000
26. On 1st January, 2012, Mohan draws upon Sohan a bill of exchange for three months, of
Rs.2,000 for mutual accommodation. On 4th January, 2012 Mohan discounts the bill @
6% per annum and sends half of the proceeds to Sohan. The amount of proceeds sent to
Sohan will be
(a) Rs.1,000 (b) Rs.970
(c) Rs.985 (d) Rs.2,000
27. ABC Ltd. sells goods to its approved customers on sale or return basis at a profit of 20% on
sales, treating as actual sales. On 26th March, 2012 goods costing Rs.10,000 were sent
to Annu Ltd. No confirmation has been received from Annu Ltd. till 31st March, 2012.
The amount of inventory with customers to be shown as closing inventory in the balance
sheet of ABC Ltd. as on 31st March, 2012 will be
(a) Rs. 12,500 (b) Rs. 8,000
(c) Rs. 10,000 (d) Nil
28. Somesh and Ramesh are equal partners. Their capitals are Rs.40,000 and Rs.80,000
respectively. The profits for the year before charging interest on capital was Rs.6,000. The
accounts of the year were closed before providing interest @ 5% per annum as per partnership
agreement. To rectify this mistake they decided to pass an adjustment entry between the
partners. Therefore, Someshs account needs to be debited by
(a) Rs.2,000 (b) Nil
(c) Rs.1,000 (d) None of the above
29. A, B and C are partners in the ratio of 3:2:1. D is admitted in the firm for 1/6th share in
profits. C would retain his original share. The new profit sharing ratio between A, B, C and
D will be
(a) 12:8:5:5 (b) 8:12:5:5
(c) 5:5:12:8 (d) 5:5:8:12
30. According to which concept, the owner of an enterprise pays the interest on drawings?
(a) Accrual concept (b) Conservatism concept
(c) Dual aspect concept (d) Entity concept

31. A firm earns profit of Rs.1,10,000. The normal rate of return in a similar type of business is
10%. The value of total assets (excluding goodwill) and total outside liabilities are Rs.11,00,000
and Rs.1,00,000 respectively. The value of goodwill by capitalisation method is
(a) Rs.1,00,000 (b) Rs.10,00,000
(c) Nil (d) None of the above
32. The cost of inventory as per physical verification of Bharat Ltd. on 10 th April, 2012 was
Rs. 1,20,000. The following transactions took place between 1st April, 2012 to 10th April, 2012:
Cost of goods sold Rs.10,000
Cost of goods purchased Rs.10,000
Purchase returns Rs.1,000
The value of inventory as per books on 31st March, 2012 will be
(a) Rs. 1,19,000 (b) Rs. 1,11,000
(c) Rs. 1,21,000 (d) Rs. 1,20,000
33. The following data has been provided by Omega Ltd.:
Item No. Units Cost per unit Realization value per unit
1 2 10 11
2 10 5 4
3 2 2 2
The value of inventory on item by item basis will be
(a) Rs. 40 (b) Rs.64
(c) Rs.66 (d) Rs.60
34. Sushilas business disclosed the following profits for the last two years:
2010 Rs.40,000 (including an abnormal gain of Rs.5,000)
2011 Rs.50,000 (After charging an abnormal loss of Rs.10,000)
The value of goodwill on the basis of one year purchase of the average profit of last two
years is
(a) Rs.45,000 (b) Rs.37,500
(c) Rs.47,500 (d) None of the three
35. Ram sells goods for Rs.1,00,000 to Hari on 1st January, 2012 and on the same day draws
a bill on Hari at three months for the amount. Hari accepts it and returns it to Ram, who
discounts it on 4th January, 2012 with his bank at 12% per annum. The discounting
charges are
(a) Rs.12,000 (b) Rs.4,000
(c) Rs.3,000 (d) Nil

36. Nidhi started her business with capital of Rs.45,000 on 1st January, 2011. Interest on drawings
Rs.5,000 and interest on capital Rs.2,000 were appearing in the Profit and Loss A/c for the
year ended 31st December, 2011. Nidhi withdrew Rs.14,000 during the year and profit earned
during the year amounted to Rs.15,000. Her capital on 31st December, 2011 is
(a) Rs. 67,000 (b) Rs. 47,000
(c) Rs.45,000 (d) Rs. 43,000
37. The accountant of M/s ABC & Bros. paid personal income tax for the proprietor amounting
Rs.10,000. This income tax should be
(a) Added to capital (b) Credited to Profit & Loss Account
(c) Debited to Trading Account (d) Deducted from capital
38. Sureshs Trial balance provides you the following information:

Bad debts Rs.10,000
Provision for doubtful debts Rs.15,000
Suresh wants to make a provision of Rs.20,000 at the end of the year. The amount
debited to the Profit & Loss Account is
(a) Rs. 45,000 (b) Rs. 5,000
(c) Rs. 15,000 (d) None of the above
39. Following are the extracts from the Trial Balance of a firm as at 31st March, 2012:
Name of Account Debit Balance Credit Balance
Rs. Rs.
Salaries 16,000
P.F. deducted from salaries 1,000
Provide for employers share of P.F. equivalent to employees share to P.F. The amount
at which salaries expense will be shown in the Profit and Loss A/c is
(a) Rs.15,000 (b) Rs.17,000
(c) Rs.16,000 (d) None of the above.
40. Dinesh Garments purchased a machine for Rs.50,000 and spent Rs.6,000 on its erection. On
the date of purchase it was estimated that the effective life of the machine will be ten years
and after ten years its scrap value will be Rs.6,000. The amount of depreciation for each
year on straight line basis is
(a) Rs.5,000 (b) Rs. 5,600

41. Xeta Ltd. was formed as a Public Limited Company with an authorized capital of
Rs.20,00,000 divided into shares of Rs.10 each. Xeta Ltd. issued fully paid up shares of
Rs.10 each at a premium of 20%, in consideration for acquiring assets worth Rs.3,64,800
from M/s Rahim Bros. To record this transaction, share capital need to be credited by
(a) Rs.3,80,000 (b) Rs.76,000
(c) Rs.2,00,000 (d) Rs.3,04,000
42. Mr. Rajiv was the holder of 200 shares of Rs.10 each in RPG Ltd. upon which Rs.5 per share
had been called up but he had paid only Rs.2.5 per share thereon. The company forfeited
his shares and afterwards sold them to Satbir, credited as Rs.5 per share paid for Rs.900.
The amount to be transferred to capital reserve is
(a) Rs.300 (b) Rs.500
(c) Rs.400 (d) None of the above
43. A Ltd. forfeited 1,000 equity shares of Rs.10 each, issued at par, for non-payment of first
call of Rs.2 and second call of Rs.3 per share. For recording this forfeiture, calls in
arrear account will be credited by
(a) Rs. 4,000 (b) Rs. 1,000
(c) Rs. 5,000 (d) Rs. 10,000
44. A fire broke out on 30th March, 2012 in the godown of Mahesh. Inventory of invoice
value Rs.1,600 was destroyed. The goods were invoiced at 25% above cost. The
insurance company admitted claim of 50% only. The insurance claim accepted was
(a) Rs. 640 (b) Rs. 600
(c) Rs. 800 (d) None of the above
45. Salary has been paid for 11 months from April 2011 to February, 2012 amounting Rs.22,000.
The amount of outstanding salary shown in the balance sheet will be
(a) Rs.1833 (b) Rs.2,000
46. On 1st April, 2011, Raghu invested capital of Rs.2,00,000. He withdrew Rs.50,000 during
the year. Interest on drawings is provided @ 10% per annum. The amount of interest
on drawings deducted from capital is
(a) Rs. 5,000 (b) Rs. 15,000
(c) Rs. 2,500 (d) Rs.7,500
47. The Bank Account of Mukesh was balanced on 31st March, 2012. It showed an overdraft
of Rs.50,000. It was observed that one cheque amounting Rs.20,000 deposited but not
collected by bank till 31st March. Bank charges of Rs.500 were also charged by the bank
during March but accounted in the book of Mukesh on April 4, 2012. The bank statement
of Mukesh shows balance of
(a) Rs.70,500 (b) Rs.69,500
(c) Rs.70,000 (d) Rs.50,000

48. Rs.5,000 was spent by Saroj for addition to machinery in order to increase the production
capacity. The amount is
(a) Revenue in nature (b) Deferred revenue in nature
(c) Capital in nature (d) Liability in nature
49. Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 during the year. However,
he sold damaged goods for Rs.20,000 costing Rs.30,000. This sale is included in Rs.10,20,000.
The amount of gross profit is
(a) Rs. 1,90,000 (b) Rs.2,50,000
(c) Rs.2,40,000 (d) Rs.2,00,000
50. The total of the debit and credit side of a trial balance of Mr. Rajiv as on 31st March, 2012
were Rs.20,000 and Rs.10,000 respectively. The difference was transferred to suspense
account. On 4th April, 2012, it was found that the total of purchase returns book was
carry forward as Rs.1,500 instead of Rs.1,400. The balance of the suspense account
after the rectification of this error will be
(a) Rs.10,000 (b) Rs. 9,900
(c) Rs. 11,500 (d) Rs.10,100
51. Capital introduced by Mr. A on 1.4.2011 Rs. 3,00,000; further capital introduced during
the year was Rs. 50,000 in the mid of the year. Mr. A withdrew Rs. 2,000 per month and
the profit earned during the year was Rs. 20,000. Capital as on 31.3.2012 will be
(a) Rs. 3,94,000 (b) Rs. 3,46,000
(c) Rs. 2,94,000 (d) None of the three
52. Goods costing Rs.10,000 sent out to consignee at Cost + 25%. Invoice value of the goods will
be
(a) Rs.12,500 (b) Rs.12,000
53. A, B and C are the partners sharing profits in the ratio 1:1:2. C died on 30th June 2012
and profits for the accounting year ended on 31st December, 2011 were Rs. 24,000. How
much share in profits for the period 1st January, 2012 to 30th June, 2012 will be credited
to Cs Account?
(a) Rs. 12,000 (b) Rs. 6,000
(c) Nil (d) Rs. 3,000
54. A purchased a car for Rs. 5,00,000, making a down payment of Rs. 1,00,000 and signing a
bill payable of Rs. 4,00,000. As a result of this transaction
(a) Assets will increase by Rs. 5,00,000
(b) Liabilities will increase by Rs. 4,00,000
(c) Assets will increase by Rs. 4,00,000
(d) Both (b) and (c)

55. Rekha purchased a machinery for Rs. 50,000 on 1.4.2011. She paid electricity charges
and salary amounting Rs. 1,000 and Rs. 2,000 respectively. Telephone bill amounting
Rs. 200 was outstanding on 31.3.2012. The amount of expenses for the year ended 31st
March, 2012 will be
(a) Rs. 53,200 (b) Rs. 3,000
(c) Rs. 53,000 (d) Rs. 3,200
56. Goods costing Rs. 10,000 is supplied to Ram at an invoice price of 10% above cost and a
trade discount of 5%. The amount of sales is
(a) Rs. 11,000 (b) Rs. 10,450
(c). Rs. 10,500 (d) None of the above
57. Gauri paid Rs. 1,000 towards a debt of Rs. 1,050, which was written off as bad debt in the
previous year. Gauris account should be credited with
(a) 1,000 (b) 1,050
(c) Nil (d) None of the three
58. Ramesh, an employee gets salary Rs. 10,000 per month. He withdrew goods worth Rs. 1,500
for personal use and got salary of Rs. 9,000 in cash in the month of March, 2012. The
excess payment of Rs. 500 should be debited to
(a) Salaries account
(b) Goods account
(c) Drawings account
(d) Salaries paid in advance account
59. An old furniture was purchased for Rs. 10,000, it was repaired for Rs. 100. The repairs
account should be debited by
(a) Rs.10,000 (b) Rs.10,100
(c) Rs.100 (d) Nil
60. Rs.1,000 paid as rent to Krishna, the landlord, was debited to Krishnas personal account.
This error will
(a) Affect the trial balance
(b) Not affect the trial balance
(c) Affect the suspense account
(d) None of the three

SECTION B : MERCANTILE LAWS (40 MARKS)
61. A wager means:

(a) A promise to give money or moneys worth upon the determination or ascertainment of an
uncertain future event.
(b) A promise to give money or moneys worth upon the determination or ascertainment of a
certain future event.
(c) A promise to give money or moneys worth upon the happening of future event the outcome
of which is predetermined.
(d) A promise to give money or moneys worth upon the non-happening of certain future
events the outcome if which is predetermined.
62. Following conditions are implied in a contract of sale of goods unless the circumstances of
the contract show a different intention:
(a) Condition as to wholesomeness.
(b) Sale by description as well as by sample.
(c) Condition as to quality or fitness.
(d) All of the above.
63. Jus in personam means:

(a) A right against or in respect of a thing.
(b) A right against or in respect of a person.
(c) Both (a) and (b).
(d) None of the above.
64. Which of the following is not correct:

(a) Partner of firm cannot enter into a contract with the partnership firm.
(b) A member of a company can enter into a contract with the company.
(c) Partner of a firm can enter into a contract with the partnership firm.
65. Persons who do not fall under the category of persons of unsound mind
(a) Lunatics (b) Alien
(c) Drunkard (d) Idiot
66. Delivery of goods in case of transit made by handing over documents of title to goods is
(a) Actual Delivery. (b) Constructive Delivery.
(c) Symbolic Delivery. (d) All of the above.

67. Contracts may be classified on the basis of their validity, formation or performance.
Contracts classified on the basis of performance are of the following types:
(a) Executed Contracts.
(b) Executory Contracts.
(c) Partly Executed or Partly Executory Contracts.
68. A partnership started for a particular adventure/undertaking:

(a) Particular partnership
(b) Partnership at will
(c) Fixed partnership
(d) All of the above
69. A subsequent sale made by the original buyer of the goods to a third party:
(a) Re-sale (b) Agreement to sell
(c) Sub-sale (d) Wholesale
70. Coercion involves:

(a) Physical force or threat. (b) Mental pressure.
(c) Both (a) and (b). (d) None of the above.
71. Implied authority of the partner does not empower him to

(a) Submit a dispute relating to the business of the firm to arbitration.
(b) Withdraw a suit or proceedings filed on behalf of the firm.
72. A proposal may be revoked in the following ways:
(a) By notice of revocation. (b) By lapse of time.

(c) By death or insanity. (d) All of the above.
(a) Recission must be communicated to the other party in the same manner as a proposal is
communicated.
(b) Recission must be revoked in the same manner as a proposal is revoked.
(c) Communication of recission is optional.
(d) Both (a) and (b)

74. Which of the following statement is / are correct?

(a) The general rule is unless otherwise agreed, the goods remain at the sellers risk until the
property therein is transferred to the buyer, but when the property therein is transferred to
the buyer, the goods are at the buyers risk whether delivery has been made or not.
(b) Where the delivery of the goods has been delayed through the fault of either the buyer or
the seller, the goods are at the risk of the party in fault as regards any loss which might not
have occurred but for such fault.
(c) In ordinary circumstances, risk is borne by the buyer only when the property in the goods
passes over to him. However, the parties may by special agreement stipulate that risk will
pass sometime after or before the property has passed.
75. A fraudulently informs B that As estate is free from incumbrance. B thereupon buys the
estate. The estate is subject to mortgage. Now
(a) B may avoid the contract.
(b) B may insist upon its performance.
(c) B may get the mortgage debt redeemed.
76. Dissolution of a firm may take place in the following manner:
(a) Compulsory dissolution. (b) Dissolution by agreement.
(c) By intervention of the court. (d) All of the above.
77. Dissolution by agreement is:
(a) Dissolution by the adjudication of all the partners or of all the partners but one as insolvent.
(b) Dissolution as a result of any agreement between all the partners.
(c) Dissolution by the business of the firm becoming unlawful.
78. Misrepresentation means and includes:
(a) The positive assertion, in a manner not warranted by the information of the person making
it, of that which is not true, though he believes it to be true.
(b) Any breach of duty, which, without an intention to deceive, gains an advantage to the
person committing it, or any one claiming under him, by misleading another to his prejudice
or to the prejudice of any one claiming under him.
(c) Causing, however innocently, a party to an agreement to make a mistake as to the substance
of the thing which is the subject of the agreement.
79. A person may be admitted as a new partner:
(a) In accordance with a contract between the existing partners.
(b) In accordance with a contract between the existing partners or with the consent of all the
existing partners subject to the provisions of Section 30 of the Indian Partnership
Act, 1932.

(c) After obtaining specific approval of the Registrar of Firms & Societies, to this effect.
(d) By simply taking the consent of the new partner.
80. The Doctrine of Privity of Contract states that___________.
(a) A contract cannot confer any right on one who is not a party to the contract, even though
the very object of the contract may have been to benefit him
(b) A contract can confer right on one who is not a party to the contract, if the contract benefits
him
(c) A contract always confers right on one who is not a party to the contract
(d) A contract can confer rights on strangers
81. A proposes by letter, to sell a house to B at a certain price. A revokes his proposal by telegram.
The revocation is complete as against B when ___________.
(a) A writes the telegram but the same has not been sent to B
(b) A dispatches the telegram
(c) B receives the telegram
(d) B responds to the telegram
82. The Indian Contract Act, 1872 came into operation on and from___________.
(a) 1st October, 1872 (b) 1st July, 1872
(c) 15th August, 1872 (d) 1st September, 1872
83. A person who has ceased to pay his debts in the ordinary course of business
(a) Mercantile Agents
(b) Selller
(c) Buyer
(d) Insolvent
84. In case of a sale the risk of loss resulting from the insolvency of the buyer is borne
by___________.
(a) The seller (b) The buyer
(c) Both of the above (d) General Insurance Company of India
85. Agreement to sale is an ___________.
(a) Executed contract (b) Executory contract
(c) Both of the above (d) None of the above
86. Suit for specific performance and suit for injunction ___________.
(a) Are remedies which provide the same result
(b) Are different remedies and they provide different results
(c) Are not the correct way to act against the party committing the breach
(d) Are the only correct way to act against the party committing the breach

87. Contracting parties may not remain same in ___________.

(a) Remission (b) Recission
(c) Novation (d) Alteration
88. The liabilities of a minor when admitted to the benefits of the partnership ___________.
(a) Is confined to his share of the profits and property in the firm
(b) Is same as that of any other partner in the firm
(c) Is similar as that of any other partner in the firm
(d) Is unlimited
89. Recission means ___________.
(a) Substituting a new contract for the old one
(b) Cancellation of the old contract
(c) Modifying or altering the terms of contract such that it has the effect of substituting a new
contract for the old one
(d) Dispensing away the performance of the promise made by the other party
90. Registration of a partnership firm is___________.
(a) Compulsory from the beginning
(b) Not compulsory till first five years of beginning of the partnership
(c) Not compulsory at all
(d) Compulsory only if the Registrar of Firms, gives an order in this regard
91. Damages awarded with the intention of punishing the defaulting party rather than
compensating the aggrieved party:
(a) Restitution (b) Exemplary Damages
(c) Special Damages (d) Nominal Damages
92. Delivery by attornment is ___________.
(a) Actual Delivery (b) Constructive Delivery
(c) Symbolic Delivery (d) Physical Delivery
93. In case of an agreement to sell, the aggrieved party ___________.
(a) Can sue for price (b) Can sue for damages
(c) Can sue the buyer for injunction (d) None of the above
94. Return of goods is possible in case of ___________.
(a) Sale (b) Bailment
(c) Exchange (d) None of the above
95. Buyer means a person who___________.
(a) Buys goods (b) Agrees to buy goods
(c) Has bought goods (d) Buys or agrees to buy goods

96. The appropriation must be made by___________.
(a) The seller with the assent of the buyer
(b) The buyer with the assent of the seller
(c) The buyer or the seller with or without the assent of the other
97. Partner by holding out is also known as ___________.

(a) Active Partner (b) Dormant Partner
(c) Partner by estoppel (d) Partner by stoppage
98. Interest on capital subscribed by a partner may be provided for in the partnership deed
is ___________.
(a) @ 6% per annum, provided it is payable only out of profits
(b) @ 8% per annum, provided it is payable only out of profits
(c) @ 8.5% per annum, provided it is payable only out of profits
(d) At any rate, provided it is payable only out of profits
99. A had offered B, a price of Rs.10, 00,000/- for Bs flat. But B was not ready to sell the
flat at all. A says to B that I shall kill you if you dont agree to sell me your house for
Rs.10,00,000/-. B thereafter did all that was the desire of A in order to save his life.
What is immediate answer?
(a) A can enforce the contract. (b) B can enforce the contract.
(c) A has applied coercion. (d) The contract is unenforceable.
100. Every wagering agreement is of a ___________ nature.

(a) Quasi (b) Warranty
(c) Guarantee (d) Contingent
SECTION C : GENERAL ECONOMICS (50 MARKS)
101. Which of the following statements is correct?

(a) In a two-good economy, the production possibilities frontier reflects the maximum amount
of one good that can be produced when a given amount of the other good is produced.
(b) Microeconomics is the study of the behaviour of the economy as a whole.
(c) Positive economics focuses on welfare of the people of a society

102. Which of the following is incorrect?

(a) The cross elasticity of demand for two substitutes is positive
(b) The income elasticity of demand is the percentage change in quantity demanded of a good
due to a change in the price of a substitute
(c) The cross elasticity of demand for two complements is negative
(d) The price elasticity of demand is always negative, except for Giffen goods
103. Which of the following situation does not lead to an increase in equilibrium price?
(a) An increase in demand, without a change in supply
(b) A decrease in supply accompanied by an increase in demand
(c) A decrease in supply without a change in demand
(d) An increase in supply accompanied by a decrease in demand
104. I am making a loss, but with the rent I have to pay, I cant afford to shut down at this point
of time. If this entrepreneur is attempting to maximize profits or minimize losses, his
behaviour in the short run is:
(a) Rational, if the firm is covering its variable cost
(b) Rational, if the firm is covering its fixed cost
(c) Irrational, since plant closing is necessary to eliminate losses
(d) Irrational, since fixed costs are eliminated if a firm shuts down
105. An individual firm in a perfectly competitive market faces a demand curve which is:
(a) Downward sloping (b) Relatively inelastic
(c) Perfectly elastic (d) Upward sloping
106. A firms production function:
(a) Shows how much output and the level of input required for the firm to maximize profits
(b) Establishes the minimum level of output that can be produced using the available resources
(c) Shows the maximum output that can be produced with a given amount of inputs with
available technology
(d) Shows labour force which is employed
107. The law of diminishing returns:
(a) States that beyond some level of a variable input, the average product of that variable
input begins to increase steadily.
(b) Assumes that there is technological improvement over time.
(c) States that beyond some level of a variable input, the marginal product of that variable
begins to decrease steadily.
(d) Informs a firm whether or not to use a factor input.

(a) If marginal revenue is positive and falling, total revenue will rise at a decreasing rate.
(b) Total revenue is equal to price times the quantity sold.
(c) Under perfect competition, total revenue is equal to marginal revenue times the quantity
sold.
109. You are given the following data:
Table 1
Output Total Costs
0 0
1 15
2 35
3 60
4 92
5 140
The above data is an example of:
(a) Decreasing returns to scale. (b) Constant returns to scale.

(c) Increasing returns to scale. (d) Positive fixed cost.
110. Monopolies are allocatively inefficient because:
(a) They restrict the output to keep the price higher than under perfect competition.
(b) They charge a price higher than the marginal cost.
(c) Both (a) and (b) are correct.
(d) Both (a) and (b) are incorrect.
(a) Countries which are industrially well-developed generally have higher per capita income
than countries which are not
(b) India is a capital surplus economy
(c) Agriculture sector need not depend upon industrial sector for its growth
112. When unemployment tends to be a long term feature of a country, it is called
(a) Seasonal Unemployment (b) Cyclical Unemployment
(c) Chronic Unemployment (d) Structural Unemployment
113. The effect of increase CRR will be reduced or nullified if:
(a) Bank rate is reduced
(b) Securities are sold in the open market
(c) SLR is increased
(d) People do not borrow from non-banking institutions

114. India can reap the benefit of Demographic dividend, as a great percentage of population
is in the age group_____.
(a) 0-15 years (b) 60 + years
(c) 20-35 years (d) 15 - 64 years
115. What percent of the sick units in India are big units?
(a) More than 90 percent (b) Less than 10 percent
(c) More than 30 percent (d) More than 96 percent
116. Which among the following is an indirect tax?
(a) Income tax (b) Wealth tax
(c) Custom duty (d) Gift tax
117. At the time of Independence and a number of years thereafter cotton textiles, jute and tea
accounted for more than __________% of our export earnings.
(a) 50 (b) 70
(c) 80 (d) 90
118. According to the latest available data, the bed-population ratio in India is __________ per
thousand population.
(a) 3.2 (b) 1.03
(c) 11.5 (d) 20.3
119. According to the latest UNDP report, 2012 Indias relative global rating on HDI index is
__________ among 187 countries.
(a) 150 (b) 177
(c) 136 (d) 5
120. A Gini Index of zero represents:
(a) Perfect inequality (b) High level of inequality
(c) Perfect equality (d) None of the above
121. Over a period of time, since GINI index has increased, it means:
(a) Inequalities have decreased (b) Cant say
(c) Inequalities have remained constant (d) Inequalities have increased
122. As compared to the targeted growth rate of 10% per annum in industrial production, the
actual growth rate was __________ % per annum during the Tenth Plan.
(a) 9.4 (b) 8.7
(c) 6.5 (d) 7.5

123. The value added by the industrial sector in the GDP 2013-14 (constant price) is _________.
(a) about 26% (b) about 80%
(c) about 60% (d) about 50%
124. The MSME sector in India employs nearly __________ million people in 2011-12.
(a) 50 (b) 23
(c) 100 (d) 100
125. GDP at factor cost is equal to GDP at market price minus indirect taxes plus __________.
(a) Depreciation (b) Direct taxes
(c) Foreign investments (d) Subsidies
126. Net domestic expenditure is consumption expenditure plus __________.
(a) Net foreign investment
(b) Net foreign investment plus net domestic investment
(c) Net domestic investment
(d) Replacement expenditure
127. Custom duties are levied on __________.
(a) Incomes of the individual (b) Production of goods
(c) Export and import of goods (d) Incomes of the corporate
128. Demand for final consumption arises in __________.
(a) Household sector only
(b) Government sector only
(c) Both household and government sectors
(d) Neither household nor government sector
129. The share of direct taxes in the gross tax revenue (Centre and States combined) was
__________ % in 2012-12.
(a) 66 (b) 38.5
(c) 25 (d) 75
130. According to census 2011 the sex ratio (number of females per 1,000 males) in India is
__________.
(a) 943 (b) 980
(c) 927 (d) 930
131. If as a result of 20 percent fall in the ticket fares the demand for watching movie in the
cinema hall increases by 10 percent, then __________.
(a) Zero (b) Greater than zero but less than one
(c) One (d) Greater than one

132. If out of 1000 population, 500 persons are in the labour force, 450 are employed, what is
the unemployment rate?
(a) 55% (b) 10%
(c) 12.5% (d) 5%
Questions 133 to 137 are based on the demand and supply diagrams in Figure 1. D1 and
S1 are the original demand and supply curves. D2, D3, S2 and S3 are possible new demand
and supply curves. Starting from initial equilibrium point (1) what point on the graph is
most likely to result from each change?
133. If Figure 1 represents the market for Mars Bars, the initial equilibrium is at the intersection
of S1 and D1. The new equilibrium if there is an increase in cocoa prices will be:
(a) Point 3 (b) Point 9
(c) Point 4 (d) Point 2.
134. In Figure 1 (which represents the market for Mars Bars), the initial equilibrium is at the
intersection of S1 and D1. The new equilibrium if there is rapid economic growth and the
government also imposes a tax on Mars Bars is:
(a) Point 3. (b) Point 9.
(c) Point 2. (d) Point 6.
intersection of S1 and D1. The new equilibrium if there is a health scare about the effect
Mars Bars may have is:
(a) Point 2. (b) Point 9.
(c) Point 3. (d) Point 6.

intersection of S 1 and D 1 . Assuming that mars bars are an inferior good, the new
equilibrium if there is a recession and wages of workers producing them fall is:
(c) Point 3 (d) Point 6
137. In Figure 1(which represents the market for Mars Bars), the initial equilibrium is at the
intersection of S1 and D1. Assume that the income of the consumers rises and at the same
time there is an increase in the productivity in the production of Mars Bars. The new
equilibrium will be:
138. A book seller estimates that if she increases the price of a book from Rs.60 to Rs.67, the
quantity of books demanded will decrease from 2,035 to 1,946. The books price elasticity
of demand is approximately
(a) 0.4 (b) 0.8
(c) 1.0 (d) 2.5
139. Concerned about the poor state of the economy, a car dealer estimates that if income decreases
by 4 per cent, car sales will fall from 352 to 335. Consequently, the income elasticity of
demand for cars is approximately
(a) 1.2 (b) 0.01
(c) 0.4 (d) 1.2
A competitive firm sells as much as of its product as it chooses at a market price of Rs. 200
per unit. Its fixed cost is Rs. 600 and its variable costs (in rupees) for different levels of
production are shown in the following table. Use Table 2 to answer questions 140-144.

Table 2
Quantity Variable Fixed Total Average Average Marginal
Cost Cost Cost Variable total Cost
Cost Cost
0 0 - - -
5 500
10 940
15 1400
20 1960
25 2700
30 3700
35 5040
40 6800
45 9060
50 11900
140. When production is 40 units, the average total cost is

(a) Rs. 8.80 (b) Rs. 15
(c) Rs. 170 (d) Rs. 185
141. In the table marginal cost per unit that corresponds to 40 units of production is
(a) Rs. 44 (b) Rs. 170
(c) Rs. 352 (d) Rs. 1760
142. To maximize profit, the firm should produce
(a) 15 units (b) 30 units
(c) 35 units (d) 50 units
143. If the market price drops from Rs. 200 to Rs. 112, the firms short run response should be
(a) Shut down
(b) Produce 5 units
(c) Produce 20 units
(d) Continue to produce the same number of units as before the drop in price.
144. If the market price rises from Rs. 200 to Rs. 352, the firms short run response should be
(a) Shut down
(b) Produce 40 units
(c) Produce 20 units
(d) Continue to produce the same number of units as before the increase in price.

145. Suppose a shopkeeper buys inputs worth Rs. 2,00,000 and his sales are worth
Rs. 4,00,000 in a month. The input tax rate is 4% and output tax rate is 10%. What is Value
added tax here after set off of input tax credit?
(a) Rs. 32,000 (b) Rs. 8,000
(c) Rs. 40,000 (d) Rs. 20,000
146. If the quantity of blankets demanded increases from 4600 to 5700 in response to a decrease
in their price from Rs. 220 to Rs. 190, the price elasticity of demand for blankets is
(a) 0.69 (b) 1.0
(c) 1.46 (d) 2.66
147. The cross elasticity of monthly demand for gel pen when the price of refills increases by
20% and demand for gel pens falls by 30% is equal to:
(a) - 0.71 (b) + 0.25
(c) - 0.19 (d) -1.5
148. The cross elasticity of monthly demand for ink pen when the price of gel pen increases by
25% and demand for ink pen increases by 50% is equal to:
(a) + 2.00 (b) - 2.00
(c) -2.09 (d) + 2.09
Read the following table and answer question number 149 -150.
Table 3
Number of products Total utility Marginal utility
0 0 -
1 3600
2 6800
3 9600
4 12000
5 14000
6 15600
7 16800
8 17600
9 18000
149. What is marginal utility when consumption increases from 4 units to 5 units?
(a) 3000 (b) 1200
(c) 2000 (d) 1500

(a) 3000 (b) 400
(c) 2000 (d) 1500
SECTION D : QUANTITATIVE APTITUDE (50 MARKS)
151. This method presents data with the help of a paragraph or a number of paragraphs.
(a) Tabular presentation. (b) Textual presentation.
(c) Diagrammatic representation. (d) None of these.
152. If two events A and B are independent, the probability that they will both occur is given by
(a) P(A) + P(B) (b) P(A) X P(B)
(c) P(A) P(B) (d) P(A)/P(B)
153. The normal curve is
(a) Positively skewed. (b) Negatively skewed.
(c) Symmetrical. (d) All of these.
154. If x denotes height of a group of students expressed in cm. and y denotes their weight expressed
in kg. , then the correlation coefficient between height and weight
(a) Would be shown in kg. (b) Would be shown in cm.
(c) Would be shown in kg. and cm. (d) Would be free from any unit.
155. The base of log613 into the common logarithmic base is
log 6 10 log10 6
(a) (b)
log 6 13 log10 13
log10 13
(c) (d) None of these.
log10 6
156. Data collected on minority from the census reports are

(a) Primary data. (b) Secondary data.
(c) Discrete data. (d) Continuous data.
157. The nationality of a person is an example of
(a) A variable. (b) A discrete variable.
(c) A continuous variable. (d) An attribute.
158. The total sum of the values of a given year divided by the sum of the values of the base
year is a
(a) Price index. (b) Quantity index.
(c) Value index. (d) None of these.

159. Find the first derivative of y = loge x
1
(a) (b) e log x
x
1
(c) e (d) None of these.
x
160. Fishers ideal index is

(a) Arithmetic mean of Laspeyres and Paasches index.
(b) Median of Laspeyres and Paasches index.
(c) Geometric mean of Laspeyres and Paasches index.
(d) None of these.
161. _________ is the upper part of the table, describing the columns and sub columns.
(a) Box head (b) Stub
(c) Caption (d) Body
162. The correlation between sale of cold drinks and day temperature is _________.
(a) Zero (b) Positive
(c) Negative (d) None of these
163. In case of a _________, plotted points on a scatter diagram lie from lower left corner to
upper right corner.
(a) Zero correlation (b) Negative correlation
(c) Positive correlation (d) Simple correlation
164. The _________ the size of the sample more reliable is the result.
(a) Medium (b) Smaller
(c) Larger (d) None of these
165. _________ are the values dividing a given set of observations into ten equal parts.
(a) Quartiles (b) Deciles
(c) Centiles (d) None of these
166. Variance of a binomial distribution is always _________ its mean.
(a) Equal to (b) More than
(c) Less than (d) None of these
167. If in binomial distribution mean is 10 and S.D. is 2, q will be _________.
(a) 0 (b) 0.2
(c) 0.8 (d) 0.4

168. The sum of the following is _________.

1+ 3 - 5 + 7 + 9 - 11, + 13............................ 3n terms
(a) 2n2 + 3 (b) 5n2 + 2
(c) 3n2 4n (d) 3n2
169. If nP3 = 60 then value of n is _________.
(a) 5 (b) 2
(c) 1 (d) 3
170. If one root of the equation x2 + 7x+ p = 0 be reciprocal of the other then the value of p
is_________.
(a) 1 (b) 1
(c) 7 (d) 7
171. A person borrowed Rs. 4,000 and after 6 months the amount paid was Rs. 4,050, find the
rate of interest.
(a) 5% (b) 25%
(c) 2.5% (d) 20%
16x 1
172. The value of is
4x 2/ 3
(a) 4x3/5 (b) 4x5/3
(c) 4x5/3 (d) None of these.
2
xdx
173. Evaluate x
1
2
2
(a) log 2 (b) log 3

1 1
(c) log (d) log
2 3
4 9 3
174. Find the value of x if :x= :
5 2 4
(a) 15/2 (b) 9/10
(c) 3/4 (d) None of these.
175. The fourth proportional to 2/3, 3/7, 4/9,........ is
(a) 2/7 (b) 14/8

176. The solution set of equations 3x+ 4y = 7 and 4x y = 3, is
(a) 1, 1 (b) 1, 1
(c) 2, 1 (d) 1, 2
177. A dealer has only Rs. 5,760 to invest in fans (x) and sewing machines (y). The cost per unit of
fan and sewing machine is Rs. 360 and Rs. 240 respectively. This can be shown by:
(a) 360x + 240y > 5760 (b) 360x + 240y < 5760
(c) 360x + 240y = 5760 (d) None of these.
178. Find the value of 8! / 5!
(a) 663 (b) 363
(c) 336 (d) None of these.
179. If A={1, 2, 3, 4} and B={2, 4} then AB can be written as
(a) f (b) {1,3}
(c) {2,4} (d) {0}
x 2 + 3x + 2
180. lim
Compute the value of x 1 3 2
x + 2x x + 1
(a) 5 (b) 9
(c) 7 (d) 2
181. Find g o f for the functions f (x) = x , g (x) = 2x2 + 1
(a) 2x2 + 1 (b) 2x + 1
(c) (2x2 + 1) x (d) x
182. Two variables x and y are related by 5x + 2y + 5=0 and x = 5, then y is
(a) 10 (b) 10
(c) 15 (d) 15
183. What is the median for the following observations 10, 16, 12, 18, 22, 8?
(a) 12 (b) 14
(c) 16 (d) None of these
184. The variables x and y are related by 5x + 6y = 70 and median of x is 8. What is the median of y?
(a) 4 (b) 4.5
(c) 5 (d) 5.5

185. Find Q1 for the following observations:

7, 9, 5, 4, 10, 15, 14, 18, 6, 20
(a) 4.75 (b) 5.25
(c) 5.75 (d) 6.25
186. If y = 4 + 3x and mode of x is 25, what is the mode of y?
(a) 75 (b) 25
(c) 79 (d) 89
187. Refer following table:
Frequency distribution of weights of 16 students
Weight in kg. No. of students
(Class interval) (Frequency)
44 48 4
49 53 5
54 58 7
Total 16
Find Frequency density of the second class interval.
(a) 0.80 (b) 0.90

(c) 1.00 (d) 1.10
188. The coefficient of correlation between two variables is 0.5, then the coefficient of
determination is
(a) 0.5 (b) 0.25
(c) 0.5 (d) 0.5
189. A bag contains 30 balls numbered from 1 to 30. One ball is drawn at random. The probability
that the number of the drawn balls will be multiple of 3 or 7 is
(a) 7/15 (b) 13/30
190. A card is drawn from a pack of playing cards and then another card is drawn without the
first being replaced. What is the probability of getting two hearts?
(a) 1/17 (b) 1/4
191. A pair of dice is thrown. What is the probability that the sum of the numbers obtained is
more than 10?
(a) 1/18 (b) 1/9
(c) 1/ 12 (d) None of these.

192. If the relationship between x and y is given by 4x+ 5y = 10 and the range of x is 15, what
would be the range of y?
(a) 10 (b) 11
(c) 12 (d) 13
193. Which term of the progression 1, 2, 4, 8 __________ is 64
(a) 7 (b) 5
(c) 6 (d) 9
x
194. Evaluate the integral of x.e dx
(a) ex(x2 +1) + c (b) ex(x + 1) + c
(c) ex(2x +1) + c (d) ex(x 1) + c
195. A letter lock has three rings each marked with 10 different letters. In how many ways it is
possible to make an unsuccessful attempt to open the lock?
(a) 1,000 (b) 999
(c) 5,040 (d) None of these.
196. Find the effective rate of interest if I = Rs.1800, P = 18000, t = 1 year
(a) 10% (b) 9%
(c) 18% (d) None of these.
197. The length of the perpendicular from the point (2, 5) on the line 4x 3y +18 = 0 is
(a) 2.7 (b) 2.5
(c) 2.2 (d) 2.1
dy
198. If x2 ey + 4 log x = 0 then is
dx
e y 2x 2 4 8x e y 2x 2 4
(a) (b)
x 3ey x 3e y
e y 2x 2 4
x 3e y
dy
199. Find , when y =10x8
dx
(a) 80x7 (b) 10x7
(c) 80x8 (d) None of these.

9x 3 x
200. Evaluate lim
x 0 4 x 2 x
log 3 log 4
(a) (b)
log 2 log 2
log 9 log 3
(c) (d)
log 2 log 4

BOARD OF STUDIES
answer.
1. During the lifetime of an entity, accountants prepare financial statements at arbitrary points
of time as per
(a) Prudence. (b) Consistency.
(c) Periodicity. (d) Matching.
2. Real accounts relate to assets of the firm and not
(a) Machinery. (b) Debt.
(c) Receivables. (d) None of the three.
3. Amit purchased a typewriter, for the purpose of sale, from Arvind for Rs. 8,000. This is
(a) An event.
(b) A transaction.
(c) A transaction as well as an event.
(d) Neither a transaction nor an event.
4. Profit leads to increase in
(a) Assets. (b) Capital.
(c) Both (a) and (b) (d) Neither (a) nor (b)
5. Vikas and Co. account is a
(a) Personal account (b) Real account

6. Depreciation arises because of

(a) Fall in the market value of the asset. (b) Fall in the value of money.
(c) Physical wear and tear of the asset. (d) None of the three.
7. A promissory note does not require
(a) Noting (b) Discounting
(c) Acceptance (d) None of the above
8. Which of the following accounts will have credit balance?
(a) Sale returns. (b) Bills receivable.
(c) Carriage inwards. (d) Outstanding wages.
9. Which of the following error is an error of omission?
(a) Sale of Rs. 5,000 was written in the purchases journal.
(b) Wages paid to Shyam has been debited to his account.
(c) The total of the sales journal has not been posted to the sales account.
10. Prepaid salary has a
(a) Credit balance. (b) Debit balance.
(c) Negative balance. (d) None of the above
11. The equality of debits and credits of the ________ does not mean that the individual accounts
are also accurate.
(a) Bank reconciliation statement. (b) Cash book.
(c) Trial balance. (d) None of the three.
12. Change in the method of depreciation is change in ________.
(a) Accounting estimate. (b) Accounting policy.
(c) Measurement discipline. (d) None of the above.
13. Credit balance in the cash book means ________ .
(a) Overdraft as per passbook (b) Favourable balance as per passbook
(c) Both (a) and (b). (d) None of the above.
14. Sale of scrap of raw materials appearing in the trial balance are shown on the credit side of
________
(a) Trading account. (b) Manufacturing account.
(c) Profit and Loss account. (d) None of the three.

15. Goodwill is a ________
(a) Current asset. (b) Fictitious asset.
(c) Tangible asset. (d) Intangible asset.
16. Joint venture account is a ________.
(a) Personal account. (b) Real account.

(c) Nominal account. (d) None of the three.
17. Abnormal loss on consignment is credited to ________
(a) Profit and Loss account. (b) Consignees account.

(c) Consignment account. (d) None of the three.
18. When money is withdrawn from the bank, the bank ________ the account of the customer.
(a) Credits. (b) Debits.
(c) Either (a) or (b). (d) None of the three.
19. ________ days of grace are allowed in case of time bills for calculating date of maturity.
(a) 2 (b) 4
(c) 3 (d) 5
20. The cash discount allowed to a customer should be credited to
(a) Discount account. (b) Customers account.

(c) Sales account. (d) None of the above.
21. Huge Ltd. issued 25,000 equity shares of Rs.100 each at a premium of Rs. 15 each payable
as Rs. 25 on application, Rs. 40 on allotment and balance in the first call. The applications
were received for 75,000 equity shares but the company issued to them only 25,000 shares.
Excess money was refunded to them after adjustment for further calls. Last call on 500
shares were not received and were forfeited after due notice. The above is the case of
(a) Oversubscription. (b) Pro-rata allotment.

(c) Forfeiture of shares. (d) All of the above
22. A, B and C are partners in the firm sharing profits and losses in 5:3:2 ratio. The firms
Balance Sheet as on 31.3.2012 shows the Reserve balance of Rs. 25,000, Profit of the
last year Rs. 50,000, Joint Life policy of Rs. 10,00,000, fixed assets of Rs. 12,00,000.
On 1st June, C died and on the same date assets were revalued. The executor of the
deceased partner will get along with the capital of C
(a) Share in the Reserves account of the firm.

(b) Proportionate share of profit upto the date of death.
(c) Share in Joint life policy.

23. A machine purchased on 1st January, 2008 at Rs. 15,00,000, having useful life of 15 years
was depreciated on straight line basis. On 1 st January, 2011, the same machine was
revalued upward by Rs. 3 lacs. The amount of depreciation for the year 2011 will be
(a) Rs. 1,25,000. (b) Rs. 1,00,000.
(c) Rs. 1,20,000. (d) Rs. 1,50,000.
24. At the end of the accounting year, material A costing Rs. 10,000 was having net realisable
value of Rs. 9,500 only, while material B costing Rs.12,000 was having a net realisable value
of Rs. 13,000 in the market and material C costing Rs. 15,000 was having net realisable
value of Rs. 14,000 only. The total amount of closing inventory will be
(a) Rs. 37,000. (b) Rs. 35,500.
(c) Rs. 36,500. (d) Rs. 38,000.
25. Atul purchased goods costing Rs. 50,000 at an invoice price, which is 50% above cost. On
invoice price he enjoyed 15% trade discount and Rs. 3,750 cash discount on cash payment of
goods in lump sum at the time of purchase. The purchase price to be recorded in the books
before cash discount will be
(a) Rs. 75,000. (b) Rs. 60,000.
(c) Rs. 63,750. (d) Rs. 50,000.
26. A cheque of Rs. 35,000 received by M/s Nandini was endorsed to M/s Chandini on account of
full settlement of Rs. 35,500 on 1st October, 2011. Chandini deposited the same into the
bank on 4th October, 2011. In the books of M/s Chandini, the account to be debited on 1st
October, 2011 will be
(a) Cash account Rs. 35,000 and Discount account Rs. 500.
(b) Bank account Rs. 35,000 and Discount account Rs. 500.
(c) Cash account Rs. 35,500.
(d) Bank account Rs. 35,500.
27. If repair cost of a building is Rs.15,000, whitewash expenses are Rs. 10,000, cost of extension
of building is Rs.5,00,000 and cost of improvement in electrical wiring system is Rs. 25,000.
The amount to be expensed is
(a) Rs. 50,000. (b) Rs. 5,50,000.
(c) Rs. 25,000. (d) Nil
28. An amount of Rs. 6,000 due from Anshul, which had been written off as a bad debt in a
previous year, was unexpectedly recovered, and had been posted to the personal account of
Anshul. The rectification entry will be
(a) Anshuls A/c Dr. Rs. 6,000, To Suspense A/c Rs.6,000.
(b) Suspense A/c Dr. Rs. 6,000, To Bad debts recovered A/c Rs. 6,000.
(c) No rectification entry required.
(d) Anshuls A/c Dr. Rs. 6,000, To Bad debts recovered A/c Rs. 6,000.

29. There was difference in the bank column of cash book and passbook by Rs. 2,500. On
scrutiny it was found that interest of Rs. 500 charged directly by the bank was not entered
in the cash book. The same was adjusted in the cashbook before reconciliation statement.
Now, in the bank reconciliation statement, this interest of Rs. 500 is to be
(a) Added to the cash book balance.
(b) Subtracted from the cash book balance.
(c) Ignored while preparing bank reconciliation statement.
30. Opening inventory of raw material of a manufacturing concern is Rs. 10,000, Purchase
during the year is Rs. 2,00,000, Wages Rs. 50,000, Carriage Rs. 5,000, Factory overheads
Rs. 1,25,000 and closing inventory of raw material is Rs. 15,000. The amount to be
transferred is
(a) Rs. 3,75,000 to cost of goods manufactured account.
(b) Rs. 3,75,000 to cost of goods sold account.
(c) Rs. 3,75,000 to cost of sales account.
(d) Rs. 3,75,000 to cost to company account.
31. Mr. A consigned goods costing Rs. 2,50,000 to Mr. B at an invoice price of Rs. 3,00,000. The
goods were to be sold at invoice price or above. Mr. B sold some of the goods at invoice price
of Rs. 2,00,000 and some at 10% above cost i.e. Rs.1,10,000. For this he gets 5% commission.
The amount of commission is
(a) Rs.18,000. (b) Rs.15,000.
(c) Rs.12,500. (d) Rs.15,500.
32. 1,000 kg of oranges are consigned to a wholesaler, the cost being Rs. 8 per kg, plus Rs. 925 of
freight. It is concluded that a loss of 15% is unavoidable. The cost per kg of orange will be
(a) Rs. 9.41. (b) Rs. 10.00.
(c) Rs. 10.50. (d) Rs. 8.93.
33. Ajay bought goods of the value of Rs 20,000 and consigned them to Bijay to be sold by them
on a joint venture, profits being divided equally. Ajay draws a bill on Bijay for an amount
equivalent to 80% of cost on consignment. The amount of bill will be:
(a) Rs. 16,000. (b) Rs. 20,000.
(c) Rs. 4,000. (d) Cannot be determined.
34. A machine purchased on 1.4.2009 for Rs.10,00,000 was depreciated on straight line
basis over its useful life of 10 years. On 1.4.2011, it was found that machine is in a good
condition and will be used in the production for another 10 years. The amount of
depreciation for the year ending 31.3.2012 will be
(a) Rs. 1,00,000. (b) Rs. 80,000.
(c) Rs. 83,333. (d) Rs. 66,667.

35. X of Kolkata sends out goods costing Rs. 1,00,000 to Y of Mumbai at cost + 25%.
Consignors expenses Rs. 2,000. 3/5th of the goods were sold by consignee at Rs. 85,000.
Commission provided will be 2% on sales + 20% on gross sales less all commission
exceeding its invoice value. Amount of total commission will be:
(a) Rs. 3,083. (b) Rs. 3,000.
(c) Rs. 2,500. (d) Rs. 2,000.
36. Anuj bought goods of the value of Rs. 10,000 and consigned them to Bittu to be sold by them
on a joint venture, profits being divided equally. Anuj paid Rs. 1,000 for freight and
insurance. Anuj draws a bill on Bittu for Rs. 10,000. Anuj got it discounted at Rs. 9,500.
Bittu sold the goods for Rs. 15,000. Commission payable to Bittu Rs. 500. The amount
to be remitted by Bittu to Anuj will be:
(a) Rs. 12,500 (b) Rs. 3,000
(c) Rs. 14,500 (d) Rs. 13,500
37. On 1.12.11 X draws a bill on Y for 30 days after sight. The date of acceptance is 8.12.11.
The maturity date of the bill will be:
(a) 8.1.2012 (b) 10.1.2012
(c) 11.1.2012 (d) 9.1.2012
38. Mr. Aakash draws a bill on Mr. Yash for Rs. 30,000 on 1.1.2012 for 3 months. On 4.2.2012,
Mr. Aakash got the bill discounted at 12%. The amount of discount will be:
(a) Rs. 900 (b) Rs. 600
(c) Rs. 300 (d) Rs. 650
39. On 1.6.05, X draws a bill on Y for Rs. 25,000. At maturity Y request X to accept Rs. 5,000
and noting charges incurred Rs. 100 in cash and for the balance X draws a bill on Y for 2
months at 12% p.a. Interest amount will be:
(a) Rs. 410. (b) Rs. 420.
(c) Rs. 440. (d) Rs. 400.
40. R, the consignor, sends out goods costing Rs.2,00,000 to K for sale on commission
basis. Consignors expenses Rs.5,000. Consignees expenses in relation to sales Rs.
2,000. 4/5th of the goods were sold at 20% above cost. Commission charged by K is Rs.
5000. The profit on consignment will be:
(a) Rs. 21,000 (b) Rs. 32,000
(c) Rs. 26,200 (d) Rs. (6,000)
41. Ansh and Vansh enter into a joint venture to sell a consignment of biscuits sharing profits
and losses equally. Ansh provides biscuits from inventory Rs. 10,000. He pays expenses
amounting to Rs. 1,000. Vansh incurs further expenses on carriage Rs. 1,000. He receives
cash for sales Rs. 15,000. He also takes over goods to the value of Rs. 2,000. Profit on
venture will be
(a) Rs. 3,000 (b) Rs. 5,000
(c) Rs. 6,000 (d) Rs. 3,500

42. Prakash Ltd. issued 15,000, 15% debentures of Rs.100 each at a premium of 10%,
which are redeemable after 5 years at a premium of 20%. The amount of loss on
redemption of debentures to be written off every year is
(a) Rs. 15,000. (b) Rs. 60,000.
(c) Rs. 45,000. (d) Rs. 22,500.
43. Varun Ltd. sends goods to his customers on Sale or Return basis by recording it as a sale at
the time of sending it for approval. During 2011, Varun Ltd. send goods to customers for
Rs. 1,00,000 on sale or return basis, at cost plus 33.33%. On September 2011, a letter of
approval was received from a customer for Rs. 40,000. In this respect, entry will be
(a) Customers account debited and sales account credited with Rs. 40,000.
(b) Sales account debited and customers account credited with Rs. 40,000.
(c) No entry is required for receiving the letter of approval from the customer.
(d) Entry for Rs. 40,000 will be made at the end of the year.
44. The profits of last three years are Rs. 42,000; Rs. 39,000 and Rs. 45,000. Capital employed
is Rs. 4,00,000 and normal rate of return is 10%. The amount of goodwill calculated on the
basis of super profit method for three years of purchase will be:
(a) Rs. 2,000. (b) Rs. 4,000.
(c) Rs. 6,000. (d) Rs. 8,000.
45. Tista Ltd. has issued 14% Debentures of Rs. 10,00,000 at a discount of 10% on April 01,
2010 and the company pays interest half-yearly on June 30, and December 31, every
year. On March 31, 2012, the amount shown as interest accrued but not paid in the
Balance Sheet will be:
(a) Rs. 35,000.
(b) Rs. 70,000.
(c) Rs. 1,40,000.
(d) Rs. 10,000.
46. Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny
purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to
get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The
profit on venture will be:
(a) Rs. 3,550. (b) Rs. 3,600.
(c) Rs. 3,400. (d) Rs. 3,800.
47. A, B & C are equal partners. They wanted to change the profit sharing ratio into 4:3:2. The
goodwill was valued as Rs. 90,000. The adjusting journal entry will be
(a) Cs capital account debit and As capital account credit with Rs.10,000.
(b) Bs capital account debit and As capital account credit with Rs.10,000.
(c) Cs capital account debit and Bs capital account credit with Rs.10,000.
(d) As capital account debit and Cs capital account credit with Rs.10,000.

48. X and Y share profits and losses in the ratio of 2:1. They take Z as a partner and the new
profit sharing ratio becomes 3:2:1. Z brings Rs.4,500 as premium for goodwill. The full
value of goodwill will be:
(a) Rs. 4,500. (b) Rs. 18,000.
(c) Rs. 27,000. (d) Rs. 24,000.
49. Hum and Tum are partners sharing profits and losses in the ratio 5:3. On admission, Woh
brings Rs. 70,000 cash and Rs. 48,000 against goodwill. New profit sharing ratio between
Hum, Tum and Woh are 7:5:4. The sacrificing ratio between Hum:Tum will be:
(a) 3:1. (b) 4:7.
(c) 5:4. (d) 2:1.
50. Mr. Big who was the holder of 200 equity shares of Rs.100 each on which Rs.75 per share has
been called up could not pay his dues on allotment and first call each at Rs. 25 per share. The
Directors forfeited the above shares and reissued 150 of such shares to Mr. Small at Rs. 65
per share paid-up as Rs. 75 per share. The amount to be transferred to Capital Reserve
account will be
(a) Rs. 1,500. (b) Rs. 2,250.
(c) Rs. 5,000. (d) Nil.
51. A company issued 15,000, 9% preference shares of Rs.100 each at par and 2,00,000
equity shares of Rs. 10 each at 10% premium. Full amount was received from the applicants
in one instalment. The net balance of securities premium account will be:
(a) Rs. 75,000. (b) Rs. 1,25,000.
(c) Rs. 2,00,000. (d) Cannot be determined.
52. Anju Ltd. forfeited 300 equity shares of Rs. 10 each fully called-up, held by Manju for non-
payment of final call @ Rs. 4 each. However, she paid application money @ Rs.2 per share
and allotment money @ Rs. 4 per share. These shares were originally issued at par. The
amount to be credited to Share forfeiture account will be:
(a) Rs. 1,200. (b) Rs. 3,000.
(c) Rs. 4,200. (d) Rs. 1,800.
53. Raj, Jai and Hari are the partners sharing profits in the ratio 7:5:4. Hari died on 30th June,
2012 and profits for the accounting year 2011-2012 were Rs. 24,000. How much share in
profits for the period 1st April, 2012 to 30th June, 2012 will be credited to Haris Account.
(a) Rs. 6,000. (b) Rs. 1,500.
(c) Nil. (d) Rs. 2,000.
54. 10,000 equity shares of Rs. 10 each were issued to public at a premium of Rs.2 per share.
Applications were received for 12,000 shares. Amount of securities premium account will be
(a) Rs. 20,000. (b) Rs. 24,000.
(c) Rs. 4,000. (d) Rs. 1,600

55. A company offers to the public 10,000 shares for subscription. The company receives
application for 12,000 shares. If the shares are allotted on pro-rata basis, then applicants for
12,000 shares are to be allotted as
(a) 4 shares for every 5 shares applied. (b) 2 shares for every 3 shares applied.
(c) 5 shares for every 6 shares applied. (d) 3 shares for every 4 shares applied.
56. The Board of Directors of a company decides to issue minimum number of equity shares of
Rs. 9 each at par to redeem Rs. 5,00,000 preference shares. The maximum amount of
divisible profits available for redemption is Rs. 3,00,000. The number of shares to be
issued by the company will be
(a) 20,000 shares. (b) 22,223 shares.
(c) 18,182 shares. (d) 25,000 shares.
57. Rich Ltd. had 3,000, 12% Redeemable preference shares of Rs. 100 each, fully paid-up. The
company issued 25,000 equity shares of Rs. 10 each at par and 1,000 14% debentures of
Rs. 100 each. All amounts were received in full. The payment was made in full. The
amount to be transferred to Capital Redemption Reserve Account is
(a) Nil. (b) Rs. 2,00,000.
(c) Rs. 3,00,000. (d) Rs. 50,000.
58. Koina Ltd. issued 15,00,000, 12% debentures of Rs. 50 each at premium of 10% payable as
Rs. 20 on application and balance on allotment. Debentures are redeemable at par after 6
years. All the money due on allotment was called up and received. The amount of premium
will be
(a) Rs. 3,00,00,000. (b) Rs. 2,25,00,000.
(c) Rs. 75,00,000. (d) Rs. 5,25,00,000.
59. G Ltd. purchased land and building from H Ltd. for a book value of Rs. 2,00,000. The
consideration was paid by issue of 12% Debentures of Rs. 100 each at a discount of 20%.
The debentures account is credited with
(a) Rs. 2,60,000 (b) Rs. 2,50,000
(c) Rs. 2,40,000 (d) Rs. 1,60,000
60. Win Ltd. issued 20,000, 8% debentures of Rs.10 each at par, which are redeemable after 5
years at a premium of 20%. The amount of loss on redemption of debentures to be written
off every year will be
(a) Rs. 40,000. (b) Rs. 10,000.
(c) Rs. 20,000. (d) Rs. 8,000.

61. A partner is entitled to claim interest on advances made by him to the firm at the rate
of :
(a) 12% per annum.
(b) 18% per annum.
(c) 6% per annum.
(d) 10% per annum.
62. Which of the following is correct:
(a) A wagering agreement is void.
(b) A contingent contract is valid.
(c) A wagering agreement is void while a contingent contract is valid.
63. The heir of the deceased partner
(a) Has a right to become a partner in the firm of the deceased partner.
(b) Does not have a right to become a partner in the firm of the deceased partner.
(c) Can become a partner in the firm of the deceased partner only if the surviving partners
give their consent in this regard.
(d) Both (b) & (c).
64. Where a partnership is at will, there the firm may be dissolved by :
(a) The consent of all the partners.
(b) Only by consent of Active partners.
(c) Any partner giving notice in writing to all other partners of his intention to dissolve the
firm.
(d) only by consent of dormant partners.
65. The following are goods as per the Sale of Goods Act, 1930:
(a) Trademark. (b) Goodwill.
(c) Patent. (d) All of the above.
66. An unpaid seller loses the right of lien under the following circumstances:
(a) Where the seller so conducts himself that he leads third parties to believe that the lien does
not exist.
(b) Where seller has waived the right of lien.
(c) Where the buyer or his agent lawfully obtains possession of the goods.

67. Essentials involved in appropriation of the goods are
(a) The goods should conform to the description and the quality stated in the contract.
(b) The goods must be in a deliverable state.
(c) The goods must be unconditionally appropriated to the contract either by delivery to the
buyer or to its agent or the carrier.
68. Which of the following is not correct:

(a) Coercion involves physical force.
(b) Undue influence involves physical force.
(c) Coercion need not be directed at the promisor.
(d) Undue influence is always exercised between the parties to the contract.
69. State which of the following is correct:

(a) There is not much difference in the nature of a partnership from the nature of a HUF.
(b) There is considerable difference in the nature of a partnership from the nature of a HUF.
(c) There is difference in the nature of a partnership from the nature of a HUF because unlike
the nature of a HUF, the nature of a partnership is voluntary and contractual.
(d) There is not much difference in the nature of a partnership from the nature of a HUF
because both involve a certain interest of a particular individual.
70. One person can contract with himself or with himself and others jointly
(a) No at least two persons or parties must be involved.
(b) Yes as the contract is between the individual and others jointly.
(c) Yes if there is a formal agreement.
71. The cardinal principle of partnership law implies that

(a) The business must be carried on by all the partners or by anyone or more of the partners
acting for all.
(b) The business may be carried on by all the partners acting for all.
(c) The business may be carried on by anyone or more of the partners acting for all.
(d) The business must be carried on in accordance with the decided profit (loss) sharing
ratio.
72. Prime facie evidence of existence of partnership is :

(a) Agreement
(b) Mutual Agency
(c) Sharing of profit
(d) Business

73. Silent is fraudulent in the following cases:

(a) If the circumstances of the case are such that, regard being had to them, it is the duty of
the person keeping silence to speak.
(b) Where the circumstances are such that silence is in itself equivalent to speech.
74. Right to bid in case of an auction sale, may be reserved by
(a) Buyer (b) Seller
(c) Both (d) Auctioneer
75. The features of a Quasi Contract are as follows:
(a) Such contracts do not arise from any agreement of the concerned parties. It is imposed by
law.
(b) Such a right is always a right to money, very often a right to a liquidated sum of money.
(c) It is a right available against a particular person or persons only, not against the world at
large.
76. The court may order for specific performance of the contract in case of breach of contract
of sale by seller only when:
(a) Goods are ascertained/specific (b) Damages are insufficient
(c) Goods are unique and costly (d) All of these.
77. The test of good faith as provided in expulsion of the partner in the Indian Partnership
Act, 1932 requires the following:
(a) That the expulsion must be in the interest of the partnership.
(b) That the partner to be expelled is served with a notice.
(c) That he is given an opportunity of being heard.
78. Where the buyer repudiates the contract before the date of delivery, there the seller
may treat such contract as:
(a) Rescinded and sue for the damages (b) Only as rescinded
(c) Can claim only the damages (d) None of these
79. The following are the essential elements which need to co-exist in order to make a valid
contract:
(a) Offer & Acceptance. (b) Intention to create legal acceptance.
(c) Capacity of parties competency. (d) All of the above.

80. The essential elements of a partnership __________.
(a) Must coexist before a partnership can come into existence.
(b) May be brought in within a reasonable time of a partnership coming into existence.
(c) May be brought in any time either during the creation of partnership or even thereafter.
(d) May not coexist before a partnership can come into existence, but they must coexist within
one year of a partnership coming into existence.
81. In case of bailment, __________.

(a) Property in goods passes to the bailee at the time of contract.
(b) Property in goods passes to the bailee upon the payment of the last installment.
(c) Property in goods can pass to the bailee at any time after the contract.
(d) Property in goods does not pass to the bailee and instead there is transfer of possession of
goods takes place from bailor to the bailee for a specific reason.
82. There are __________ kinds of delivery.

(a) Three (b) Four
(c) Five (d) Two
83. Passing of property constitutes the most important element to decide:

(a) Rights of seller
(b) Liabilities of buyer
(c) Rights and liabilities of sellers and buyers
(d) Rights of buyers.
84. A registered firm cannot claim a set off exceeding the __________ in a proceeding
instituted against the firm or any partner thereof.
(a) Rupees 1000/-. (b) Rupess 100/-.
(c) Rupees 500/-. (d) Rupees 10,000/-.
85. In case of an agreement to sell, the ownership in the goods remains with __________.
(a) The buyer.
(b) The seller.
(c) Both the buyer and the seller.
(d) The Central Government or the State Government, as the case may be.
86. When two parties exchange identical offers in ignorance at the time of each others offer,
the offers are called __________.
(a) Standing Offer. (b) Open Offer.
(c) Identical Offers. (d) Cross Offer.

87. Goods which are to be manufactured or produced or acquired by the seller after making
the contract of sale are known as __________.
(a) Specific Goods (b) Existing Goods
(c) Future Goods (d) Unascertained Goods
88. A person who is mentally deranged due to some mental strain or other personal experience
and suffers from intermittent intervals of sanity and insanity is __________.
(a) Idiot Person (b) Lunatic Person
(c) Intoxicated Person (d) All of the above
89. Expulsion of a partner, which is not in accordance with provisions of the Indian Partnership
Act, 1932 is __________.
(a) Null and void
(b) Null and void to some extent
(c) Is unconstitutional
(d) In good faith and in the interest of the partnership
90. The provisions relating to passing of property in case of goods sent on approval or on sale or
return basis is dealt in the __________ .
(a) Indian Contract Act, 1872 (b) Indian Partnership Act, 1932
(c) Sale of Goods Act, 1930 (d) Transfer of Property Act, 1882
91. Dissolution of partnership means ________.
(a) Dissolution of partnership between all the partners of a firm
(b) Insolvency of all the partners
(c) Both of the above
92. If the buyer is insolvent, ________.
(a) The seller cannot exercise the right of stoppage in transit
(b) The seller cannot exercise the right of lien
(c) The seller can exercise the right of lien
(d) The seller can exercise the right of re-sale
93. There can be a stranger to a consideration but not a stranger to a contract signifies that
a consideration may move from ________.
(a) Promisee or any other person (b) Promisee
(c) Promisor (d) An independent person

94. A Hindu widow borrowed money from a lender for the purpose of filing a suit for
maintenance. The lender advanced money at 100 percent rate of interest. The act of the
money lender is induced by ________.
(a) Coercion (b) Undue Influence
(c) Fraud (d) Misrepresentation
95. The law dealing with the partnerships is contained in ________.
(a) The Indian Partnership Act, 1932
(b) The Indian Partnership Act, 1930
(c) The Indian Partnership Act , 1872
(d) The Indian Partnership Act, 2006
96. When performance of promise becomes impossible or illegal by occurrence of an unexpected
event or change of circumstances beyond the contemplation of parties, the contract becomes
void. The situation is dealing with ________.
(c) Supervening Impossibility (d) Alteration
97. X, Y, Z are partners in a firm and X becomes insolvent. Then ________.
(a) The firm has to dissolve by default.
(b) The firm may not be dissolved unless there is any agreement between the partners to do
so.
(c) The status of the firm becomes illegal from the date of adjudication of X as an insolvent.
(d) X remains a partner, unless the firm is dissolved.
98. A contingent contract is ________.
(a) A contract to do something if some event collateral to such contract does or does not
happen.
(b) A contract not to do something if some event collateral to such contract does or does not
happen.
(c) A contract to do or not to do something if some event collateral to such contract does or
does not happen.
(d) A contract to do or not to do something if some event collateral to such contract does not
happen.

99. Arun had deposited a bag in the cloak Room of a railway station by paying Rs. 50/. On
the face of the ticket, issued to him. were inscribed see reverse for terms & conditions.
Clause 10 of the printed Terms & Conditions limited the liability of the company for loss
of a baggage to Rs. 100/-. The bag was lost and Arun claimed Rs. 650/- as its value.
(a) Arun was not bound by the conditions on the back of the ticket as he had not read them at
all.
(b) Arun was bound by the conditions on the back of the ticket even if he had not read them.
(c) Arun was not bound by the conditions on the back of the ticket as his claim was 13 times
more than the compensation offered to him by the railway company.
(d) Arun was bound by the conditions on the back of the ticket as he had not read them in full.
100. A and B become partners for 16 years. A pays B a premium of Rs. 5,000/-. At the end of 8
years there is dispute between A and B and they declare a dissolution.
(a) A can get back entire amount of the premium paid by him to B.
(b) A can get back a reasonable part of the premium.
(c) A can get back Rs. 2,500/- from B.
(d) A cannot get back any amount of the premium paid by him.
101. Which of the following statements is incorrect?

(a) Unlike normative economics, positive economics is based on objective analysis of economic
issues.
(b) The opportunity cost of a good is the quantity of other goods sacrificed to get another unit
of that good.
(c) Microeconomics emphasizes interactions in the economy as a whole.
(a) The production possibilities frontier shows the maximum combination of outputs that the
economy can produce using all the resources available.
(b) Increasing opportunity cost implies a production possibility frontier concave to the origin.
(c) Free markets are the markets in which the governments do not intervene.
(d) All of the above are correct.
103. With the same amount of resources, a farmer can feed the following combinations of goats
and horses:
Goats Horses
Option I 168 44
Option II 150 50
Given the option available with him, what is the opportunity cost to the farmer of feeding
one horse?
(a) 1 goat. (b) 3 horses.
(c) 3 goats. (d) 18 goats.

104. A drought in India leads to unusually low level of wheat production. This would lead to a
rise in the price of wheat and fall in the quantity of wheat demanded due to:
(a) excess demand at the original price. (b) excess supply at the original price.
(c) the supply curve shifting to the right. (d) the demand curve shifting to the left.
105. If the elasticity of demand for a commodity is perfectly inelastic then which of the following
is incorrect?
(a) The commodity must be essential to those who purchase it.
(b) The commodity must have many substitutes.
(c) The commodity will be purchased regardless of increase in its price.
(d) The elasticity of demand for this commodity must equal zero.
106. If a good has price elasticity greater than one then:
(a) demand is unit elastic and a change in price does not affect sellers revenue.
(b) demand is elastic and a change in price causes sellers revenue to change in the opposite
direction.
(c) demand is inelastic and a change in price causes sellers revenue to change in the same
direction.
(d) None of the above is correct.
107. The law of diminishing returns implies that:
(a) for each extra unit of X consumed, holding constant consumption of other goods, total
utility increases.
(b) total utility remains unchanged regardless of how many units of X are consumed.
(c) marginal utility will increase at a constant rate as more units of X are consumed.
(d) each extra unit of X consumed, holding constant consumption of other goods, adds
successively less to total utility.
(a) Firms that earn accounting profits are economically profitable.
(b) Opportunity cost plus accounting cost equals economic cost.
(c) When a firms demand curve slopes down marginal revenue will rise as output rises.
(d) Firms increase profits by selling more output than their rivals.

109. You are given the following data:

Table 1
Output Total Costs
0 0
1 15
2 28
3 38
4 46
5 54
The above data is an example of:
(a) decreasing returns to scale. (b) constant returns to scale.
(c) increasing returns to scale. (d) positive fixed costs.
(a) If marginal revenue exceeds marginal cost the firm should increase output.
(b) If marginal cost exceeds marginal revenue the firm should decrease output.
(c) Economic profits are maximized when total costs are equal to total revenue.
(d) Profits are maximized when marginal revenue equals marginal cost.
111. Which of the following involve a trade-off?
(a) Taking a nap
(b) All of these answers involve trade-offs.
(c) Watching a football game on Saturday afternoon
(d) Going to university
112. When some people in a society are unwilling to work at the prevailing wage rate and there
are people who have income from property or some other sources and need not work, such
people are:
(a) casually unemployed. (b) chronically unemployed.
(c) voluntarily unemployed. (d) disguisedly unemployed.
113. If out of 100 people in the labour force, 92 are in the work force, the number of people
unemployed is:
(a) 8 (b) 192
(c) 100 (d) 92
114. NIXI stands for:
(a) National Internet Exchange of India.
(b) National International Exchange of India.
(c) National Institute of Exchange of Indian goods.

115. If demand for goods and services is more than their supply, the resultant inflation is:
(a) cost push inflation. (b) stagflation.
(c) deflation. (d) demand pull inflation.
116. GINI index measures:
(a) demand inequalities. (b) Income inequalities.
(c) Price inequalities. (d) Supply inequalities.
117. Trade-offs are required because wants are unlimited and resources are _______.
(a) economical. (b) unlimited.
(c) efficient. (d) scarce
118. If an increase in the price of blue jeans leads to an increase in the demand for
tennis shoes, then blue jeans and tennis shoes are _________.
(a) complements. (b) inferior goods.
(c) normal goods. (d) substitutes.
119. Consumer surplus is the area _________.

(a) below the demand curve and above the price.
(b) above the supply curve and below the price.
(c) above the demand curve and below the price.
(d) below the supply curve and above the price.
120. A rational person does not act unless _________.
(a) the action is ethical.
(b) the action produces marginal costs that exceed marginal benefits.
(c) the action produces marginal benefits that exceed marginal costs.
(d) the action makes money for the person.
121. Suppose you find Rs 100. If you choose to use Rs.100 to go to a football match, your
opportunity cost of going to the game is _________.
(a) nothing, because you found the money.
(b) Rs. 100 (because you could have used Rs. 100 to buy other things) plus the value of your
time spent at the game.
(c) Rs. 100 (because you could have used the Rs. 100 to buy other things) plus the value of
your time spent at the game, plus the cost of the dinner you purchased at the game.
(d) Rs. 100 (because you could have used the Rs.100 to buy other things).

122. If a fisherman must sell all of his daily catch before it spoils for whatever price he is offered,
once the fish are caught the fishermans price elasticity of supply for fresh fish is _________.
(a) zero.
(b) infinite.
(c) one.
(d) unable to be determined from this information.
123. If consumers always spend 15 percent of their income on food, then the income elasticity of
demand for food is _________.
(a) 1.50 (b) 1.15
(c) 1.00 (d) 0.15
124. If marginal revenue exceeds marginal cost, a monopolist should _________.
(a) increase output.
(b) decrease output.
(c) keep output the same because profits are maximized when marginal revenue exceeds
marginal cost.
(d) raise the price.
125. A market structure in which many firms sell products that are similar but not identical is
known as
(a) monopolistic competition. (b) monopoly.
(c) perfect competition. (d) oligopoly.
126. Net national product at market price minus net indirect taxes is equal to _________.
(a) net foreign investment
(b) net foreign investment plus net domestic investment
(c) net national product at factor cost.
(d) replacement expenditure
127. Estate duty was levied on the _________.
(a) incomes of the individual
(b) production of goods
(c) export and import of goods
(d) total property passing to the heirs on the death of a person.
128. _________ countries are more subject to cyclical fluctuations.
(a) European. (b) Capital biased, advanced countries.
(c) Asian. (d) American
129. India has a _________ income tax system.
(a) proportional (b) regressive
(c) zero (d) progressive

130. Electricity generated from water is called _________.
(a) thermal electricity. (b) hydel electricity.
(c) atomic energy. (d) tidal energy.
131. Over the years the number of cancer cases has _________.
(a) increased. (b) decreased.
(c) remained constant. (d) doubled.
132. Quantitative restrictions on _________ items were removed in the EXIM Policy of 2001-02.
(a) 123 (b) 193
(c) 715 (d) 183
Read Figure 1 and answer questions 133-135.
133. Refer to Figure 1, if the economy is operating at point C, the opportunity cost of producing
an additional 15 units of bacon is
(a) 40 units of eggs. (b) 10 units of eggs.
(c) 20 units of eggs. (d) 30 units of eggs.
134. Refer to Figure 1, if the economy was operating at E:
(a) the opportunity cost of 20 additional units of eggs is 10 units of bacon.
(b) the opportunity cost of 20 additional units of eggs is 20 units of bacon.
(c) the opportunity cost of 20 additional units of eggs is 30 units of bacon.
(d) 20 additional units of eggs can be produced with no impact on bacon production.

135. If the economy moves from point A to point D in Figure 1 then:

(a) the opportunity cost of eggs in terms of bacon falls.
(b) the opportunity cost of eggs in terms of bacon rises.
(c) the opportunity cost of eggs in terms of bacon is constant.
(d) the economy becomes less efficient.
136. Point F in figure 1 represents:
(a) none of these answers.
(b) a combination of production that can be reached if we reduce the production of eggs by
20 units.
(c) a combination of production that can be reached if there is a sufficient advance in
technology.
(d) a combination of production that is inefficient because there are unemployed resources.
137. Which of the following represents a movement towards better utilisation of existing resources?
(a) A movement from point A to point B.
(b) A movement from point E to point B.
(c) A movement from point C to point B.
(d) A movement from point F to point B.
138. Suppose that the price of a new bicycle is Rs. 200. Natalie values a new bicycle at Rs. 400.
What is the value of total consumer surplus if Natalie buys a new bike?
(a) Rs. 500 (b) Rs. 300
(c) Rs. 200 (d) Rs. 400
139. Suppose that at a price of Rs. 300 per month, there are 30,000 subscribers to cable television
in Small Town. If Small Town Cablevision raises its price to Rs. 400 per month, the number
of subscribers will fall to 20,000. Using the arc elasticity (midpoint) method for calculating
the elasticity, what is the price elasticity of demand for cable TV in Small Town?
(a) 1.4 (b) 0.66
(c) 0.75 (d) 2.0
140. If a buyers willingness to pay for a new car is Rs. 200,000 and she is able to actually buy it
for Rs.1,80,000 her consumer surplus is
(a) Rs.18,000 (b) Rs.20,000
(c) Rs. 2,000 (d) Rs. 0

141. Suppose there are three identical vases available to be purchased. Buyer 1 is willing to
pay Rs. 30 for one, buyer 2 is willing to pay Rs. 25 for one, and buyer 3 is willing to pay
Rs. 20 for one. If the price is Rs. 25, how many vases will be sold and what is the value of
consumer surplus in this market?
(a) Three vases will be sold and consumer surplus is Rs. 80.
(b) One vase will be sold and consumer surplus is Rs. 5.
(c) One vase will be sold and consumer surplus is Rs.30.
(d) Two vases will be sold and consumer surplus is Rs. 5.
Read the following paragraph and answer questions 142-144
Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell
them for Rs. 100 each. It costs Nicole Rs. 20,000 for the raw materials to produce the 1,000 pieces of
pottery. She has invested Rs. 1,00,000 in her factory and equipment: Rs. 50,000 from her savings and
Rs. 50,000 borrowed at 10 percent. (Assume that she could have loaned her money out at 10 per
cent, too.) Nicole can work at a competing pottery factory for Rs. 40,000 per year.
142. The accounting cost at Nicoles pottery factory is:
(a) Rs. 25,000 (b) Rs. 50,000
(c) Rs. 80,000 (d) Rs. 75,000
143. The economic cost at Nicoles factory is:
(a) Rs. 75,000 (b) Rs. 70,000
(c) Rs. 80,000 (d) Rs. 30,000
144. The accounting profit at Nicoles pottery factory is:
(a) Rs. 30,000 (b) Rs. 50,000
(c) Rs. 80,000 (d) Rs. 75,000
145. The economic profit at Nicoles factory is:
(a) Rs. 75000 (b) Rs. 35000
(c) Rs. 80000 (d) Rs. 30000
Mr. X and Co. operates in a perfectly competitive market. He sells his product at Rs. 8 per unit. His
fixed costs are Rs. 100. His other costs are given below. Read the following table and answer questions
146-150.
Output Variable Cost Fixed Cost Total Cost Marginal Cost
0 0
1 5
2 11
3 18
4 26
5 36
6 50

146. What is Mr. X and Co.s total cost when 4 units are produced?
(a) Rs. 126 (b) Rs. 100
(c) Rs. 26 (d) Rs. 8
147. When Mr. X and Co.s production increases from 5 to 6 units, his marginal cost becomes?
(a) Rs. 8 (b) Rs. 14
(c) Rs. 10 (d) Rs. 6
148. The average fixed cost of producing 4 units is:
(a) Rs 1.50 (b) Rs 2.25
(c) Rs. 25 (d) Rs. 3.00
149. The average total cost of producing 6 units is:
(a) Rs. 2.50 (b) Rs. 3.00
(c) Rs. 25 (d) Rs. 30
150. When will Mr X and Co. maximize profits?
(a) When 4 units are produced. (b) When 5 units are produced.
(c) When the company shuts down. (d) When 3 units are produced.
151. Factor reversal test is satisfied by

(a) Laspeyres index. (b) Paasches index.
(c) Fishers ideal index. (d) None of these.
152. Laspeyres index is based on
(a) Base year quantities.
(b) Current year quantities.
(c) Average of current year and base year.
(d) None of these.
153. The mean and mode of a normal distribution
(a) Are always different. (b) Are always equal.
(c) May be different. (d) May be equal.
154. Two cards are drawn from a well shuffled pack of 52 cards. Find the probability that they
are both kings if the first is replaced.
(a) 1/13 (b) 1/ 169

155. A pair of dice is thrown and sum of the numbers on the two dice comes to be 7. What is
the probability that the number 3 has come on one of the dice?
(a) 1/9 (b) 1/3
156. If in binomial distribution np = 6 and npq = 3, then p is equal to
(a) 1/3 (b) 1/2
157. P10 is the index for time
(a) 1 on 0 (b) 0 on 1
(c) 1 on 1 (d) 0 on 0
dy
158. Find value of if y = xx
dx
(a) xx . loge ex (b) xx (1 + log x)
(c) y. log x (d) None of these.
x2 a2
159. Compute the value of lim
x a xa
(a) a (b) 2a
(c) 2a (d) a2
160. Two variables x and y are related by 7x + 7y + 13 = 0 and x = 7, then y is
(a) 8.80 (b) 8.86

(c) 8.80 (d) 8.86
161. We use t-distribution when samples are drawn from the ______ population.
(a) Normal (b) Binomial
(c) Poisson (d) None of these
162. ________ is uniparametric distribution.
(a) Binomial (b) Poisson
(c) Normal (d) Hyper geometric
163. First quartile is the value for which onefourth of the observations are ________Q1 and the
remaining threefourths observations are ________Q1.
(a) Less than or equal to, More than or equal to
(b) More than or equal to, Less than or equal to
(c) Less than, More than
(d) More than, Less than

164. A variable is known to be ________ if it can assume any value from a given interval.
(a) Discrete (b) Continuous
(c) Attribute (d) Characteristic
165. ________ is the entire upper part of the table which includes columns and subcolumn
numbers, unit(s) measurement.
(a) Stub (b) Boxhead
(c) Body (d) Caption
166. ________ is the left part if the table providing the description of the rows.
(a) Caption (b) Body
(c) Stub (d) Box head
167. In case of a ________, plotted points on a scatter diagram concentrate from upper left to
lower right.
(a) Zero correlation (b) Negative correlation
(c) Positive correlation (d) Multiple correlation
168. 50% of actual values will be below & 50% of values will be above ________.
(a) Mode (b) Median

(c) Mean (d) Q1
169. The correlation between Employment and Purchasing power is ________.
(a) Positive (b) Negative

(c) Zero (d) None of these
170. Data collected on sex ratio from the census reports are ________.
(a) Primary data (b) Secondary data

(c) Discrete data (d) Continuous data
171. What is the median for the following observations 6,10,15,16,20,5,8?

(a) 8 (b) 10
172. The variables x and y are related by 2x+ 3y = 6 and median of x is 2. What is the median of
y?
(a) 1/3 (b) 2/3


173. Find D6 for the following observations:
7, 9, 5, 4, 10, 15, 14, 18, 6, 20
(a) 11.40 (b) 12.40

(c) 13.40 (d) 13.80
174. Refer following table:

44 48 4
49 53 5
54 58 7
Total 16
Find Relative frequency for the second class interval?
(a) 1/11 (b) 5/4
(c) 5/16 (d) 1/4
175. If the coefficient of correlation between two variables is 0.4, then the coefficient of
determination is
(a) 0.6 (b) 0.16
(c) 0.4 (d) 0.2
176. If the coefficient of correlation between two variables is 0.7, then the percentage of variation
unaccounted for is
(a) 70% (b) 30%
(c) 51% (d) 49%
177. A bag contains 5 red and 3 yellow balls. Two balls are drawn at random one after the other
without replacement. The probability that both balls drawn are yellow is
(a) 9/64 (b) 3/28
178. The common ratio of the G.P. 2,6, 18, 54 is
(a) 3 (b) 3
(c) 4 (d) 4

dx
179. The integral of x 2
a2
will be
1 (x a) 1 (x + a)
(a) log (b) log
2a (x + a) 2a (x a)
1 x
(c) log (d) None of these.
2a (x + a)
180. How many numbers greater than 2000 can be formed with the digits 1, 2,3,4,5 with each
digit distinct?
(a) 216 (b) 120
(c) 24 (d) 240
181. If A = (1, 2, 3, 5, 7) and B= (1, 3, 6, 10, 15) cardinal number of A-B is
(a) 3 (b) 4
d 2p
182. Let p = x3 log x, so what is the value of
dx 2
(a) x + 2x log x (b) x2 + log x 2x2
(c) x2 + 2x log x (d) None of these.
183. Ram is confused whether to invest at 9% p.a. compounded monthly or 9.25% p.a. simple
interest, given that
(1+ 0.0075)12 = 1.09380690
The student decided to find effective rate of interest which is
(a) 9% (b) 9.25%
(c) 9.38% (d) None of these.
184. Find the equation of the line with slope 0.25 and (2, 4) on the line
(a) x + 4y + 18 = 0 (b) 2x + 4y + 15 = 0
(c) 2x + y + 18 = 0 (d) x + 4xy 18 = 0
dy
185. Find when y = 4x3 + 8x7 at x2 = 2
dx
(a) 424 (b) 470

x
9
186. Evaluate lim 1+
x
x
(a) e9 (b) 9
(c) 1 (d) e1
187. If the set P has 6, Q has 5 and R has 2 elements, then the set P Q R contains
(a) 13 (b) 9
188. Find the 10th term of an A.P with first term as 4 and common difference being 2
(a) 22 (b) 25
(c) 20 (d) 13
n
189. Pr can be expressed as
n! n!
(a) (b)
r! (n r)!
n!
r!(n r)!
190. If 102 = 0.01, then the value of log 10

0.01 is
(a) 2 (b) 2
(c) 1 (d) 1
191. Solving equation 3x2 14x + 16 = 0, we get roots as
(a) +1 (b) +2
192. Mr. Rahul invested in Bank Rs. 80,000 for 4 years at 10% p.a. rate of interest. How much he
will earn?
(a) Rs. 32,000 (b) Rs. 18,000
(c) Rs. 23,000 (d) None of these.
6 2
193. Find the value of p from 4 2 2p
(a) 16 (b) 8
(c) 7 (d) 4

2
dx
194. Evaluate (x 1) (x 2)
1
9 8
(a) log (b) log
8 9
6 5
(c) log (d) log
8 4
p q r pqr
195. If = = then is
7 6 11 p
(a) 8 (b) 5
196. The numbers 2.4, 3.2, 1.5, 2 are in proportion & their product of means is 4.8, find the
product of extremes?
(a) 4.8 (b) 2.4
(c) 8.4 (d) None of these.
1 1 1 2 3 4 3 2 1
197. Determine the solution set of 5 ; 11 and 6 is
x y z x y z x y z
(a) 1/2, 1/6, 1/3 (b) 1/2, -1/3, 1/6
(c) 1/6, 1/3, 1/2 (d) -1/6, 1/2, 1/3
198. In a class of boys (x) and girls (y) the maximum seating capacity is 360. This can be shown by
(a) x + y < 360 (b) x + y > 360
(c) x + y 360 (d) None of these.
199. Determine the common difference of progression 16, 13,10 .............. 25 terms
(a) 2 (b) 2
(c) 3 (d) 3
200. If P = {1, 2, 3, 4} : Q = {2, 4, 6} then P Q
(a) {1, 2, 3, 6} (b) {1, 4, 6}
(c) {1, 2, 3, 4, 6} (d) None of these.

BOARD OF STUDIES
answer.
1. Mr. Ashok buys clothing of Rs. 50,000 paying cash Rs. 20,000. What is the amount of expense
as per the accrual concept?
(a) Rs. 50,000. (b) Rs. 20,000.
(c) Rs. 30,000. (d) Nil.
2. Loss leads to a reduction in
(a) Liability. (b) Capital.
(c) Income. (d) None of the three.
3. Accounting standards are
(a) Basis for selection of accounting policy.
(b) Set of broad accounting policies to be followed by an entity.
(c) Basis for establishing and managing an entity.
4. Substance of any transaction should be considered while recording them and not only the
legal form is the statement which holds true for:
(a) Substance over form. (b) Disclosure of accounting policies.
(c) Both (a) and (b). (d) None of the three.

5. The determination of the amount of provision for doubtful debts is an accounting

(a) Policy. (b) Estimate.
(c) parameter. (d) None of the above
6. What is the order in which the accounting transactions and events are recorded in the books?
(a) Journal, Subsidiary books, Ledger, Balance sheet , Profit and loss account.
(b) Ledger, Journal, Ledger, Balance sheet , Profit and loss account
(c) Journal, Ledger, Profit and loss account, Balance sheet .
(d) Profit and loss account, Ledger, Balance sheet, Journal.
7. The expired portion of capital expenditure is shown in the financial statements as
(a) As an income. (b) As an expense.
(c) As an asset. (d) As a liability.
8. Rs. 5,000 incurred for upgradation of computer by installation of 128 MB RAM is
(a) Capital expenditure. (b) Deferred revenue expenditure.
(c) Revenue expenditure. (d) None of the above.
9. According to money measurement concept, currency transactions and events are recorded
in the books of accounts
(a) In the ruling currency of the country in which transaction takes place.
(b) In the ruling currency of the country in which books of account are prepared.
(c) In the currency set by the ministry of finance.
(d) In the currency set by the Government.
10. All of the following errors do not affect the trial balance, except
(a) Compensating errors. (b) Errors of complete omission.
(c) Errors of partial omission. (d) Errors of principle.
11. Errors are ________ mistakes.
(a) Intentional. (b) Unintentional.
(c) Undetected. (d) None of the three.
12. Trial balance is a statement which shows the ________ or the ________of all the accounts.
(a) Balances, Entries. (b) Opening balances, Closing balances.
(c) Posted balances, Total of balances. (d) Debit balance, Credit balance.
13. It is easy to detect ________ than to ________.
(a) Frauds, Errors. (b) Mistakes, Errors.
(c) Errors, Frauds. (d) Errors, Mistakes.

14. In case of debit balance, the words ________ are written on the debit side.
(a) To balance b/d. (b) To balance c/d.
(c) By balance b/d. (d) By balance c/d.
15. Rs. 5,000 spent on maintenance of plant and machinery is ________.
(a) Capital expenditure. (b) Revenue expenditure.
(c) Deferred capital expenditure. (d) None of the three.
16. Bank pass book is also known as ________
(a) Bank book. (b) Bank account.
(c) Bank column. (d) Bank statement.
17. Capital expenditures are recorded in the ________
(a) Balance sheet. (b) Profit and loss account.
(c) Trading account. (d) Manufacturing account.
18. Accounts receivable normally has ________ balance.
(a) Debit. (b) Credit.
(c) Unfavourable. (d) None of the above.
19. An account is a formal record of changes in items of ________ nature.
(a) Revenue. (b) Expense.
(c) Debit. (d) Similar.
20. The assumption underlying the fixed installment method of depreciation is that of
________ of the asset over different years of its useful life.
(a) Usage. (b) Equal usage.
(c) Charge. (d) None of the above.
21. A businessman purchased goods for Rs.25,00,000 and sold 70% of such goods during
the accounting year ended 31st March, 2010. The market value of the remaining goods
was Rs.5,00,000. He valued the closing inventory at Rs. 5,00,000 and not at Rs. 7,50,000
due to
(a) Money measurement concept. (b) Conservatism concept.
(c) Cost concept. (d) Periodicity concept.
22. M/s Omega Brothers, which was registered in the year 2004, has been following LIFO method
for valuation of shares. It changed its method from LIFO to FIFO Method in the year 2009.
The auditor raised objection to this change in the method of valuation of investments.
The objection of the auditor is justified because
(a) Change in the method should be done only with the consent of the auditor
(b) Method can be changed only from FIFO to LIFO and not vice versa
(c) Change in the method should be done only if it is required by some statute and change
would result in appropriate presentation of financial statement
(d) Method cannot be changed under any circumstances.

23. Following are the items of the balance sheet of Mr. X:

Capital Rs. 7,00,000; Machinery Rs. 5,00,000 and Cash Rs. 2,00,000. If Mr. X spends
Rs. 5,000 to meet his family expenses, the balance of capital and cash accounts will be
(a) Rs. 7,00,000 and Rs. 2,00,000. (b) Rs. 6,95,000 and Rs. 1,95,000.
(c) Rs. 7,00,000 and RS. 1,95,000. (d) Rs. 6,95,000 and Rs. 2,00,000.
24. Mr. Mohan started a cloth business by investing Rs. 50,000, bought merchandise worth Rs.
50,000. He sold merchandise for Rs. 60,000. Customers paid him Rs. 50,000 cash and assured
him to pay Rs. 10,000 shortly. The amount of revenue earned by him is _________
(a) Rs. 50,000. (b) Rs. 60,000.
(c) Rs. 1,00,000. (d) Rs. 70,000.
25. If sales revenues are Rs. 4,00,000; cost of goods sold is Rs. 3,10,000, the gross profit is
_________
(a) Rs. 90,000. (b) Rs. 4,00,000.
(c) Rs. 3,10,000. (d) None of the three.
26. When balance as per cash book (debit balance) as on 31st March is the starting point, what
will be the effect while preparing bank reconciliation statement when out of the cheques
amounting to Rs. 5,000 deposited, cheques aggregating Rs. 1,500 were credited in March
and cheques aggregating Rs. 2,000 credited in April and the rest have not been collected?
(a) Subtract Rs. 2,000. (b) Add Rs 2,000.
(c) Subtract Rs.3,500. (d) Add Rs. 3,500.
27. A and B purchased a piece of land for Rs. 30,000 and sold it for Rs. 60,000 in 2010. Originally
A had contributed Rs. 12,000 and B Rs. 8,000. The profit on venture will be
(a) Rs. 30,000 (b) Rs. 20,000
(c) Rs. 60,000 (d) Nil
28. On 1.1.2010 X draws a bill on Y for Rs 1,00,000. At maturity, the bill returned
dishonoured as Y became insolvent and 40 paise per rupee is recovered from his estate.
The amount recovered is:
(a) 20,000 (b) Nil
(c) 40,000 (d) 40 paise
29. An individual invests Rs.2,00,000 for running a stationery business. On 1st Jan., he purchases
goods for Rs. 1,15,000 and sells the goods for Rs. 1,47,000 during the month of January.
He pays shop rent for the month Rs. 5,000 and finds that still he has goods worth
Rs. 15,000 in hand. The amount of surplus will be
(a) Rs. 42,000 (b) Rs. 1,62,000
(c) Rs. 47,000 (d) Rs. 27,000.

30. Goods costing Rs. 600 is supplied to Ram at the invoice of 10% above cost and a trade
discount for 5%. The amount of sales will be
(a) Rs. 627. (b) Rs. 660.
(c) Rs. 570. (d) Rs. 620.
31. Goods sold for cash Rs. 10,000, plus 10% sales tax. Sales will be credited by
(a) Rs. 11,000. (b) Rs. 10,000.
(c) Rs. 9,000 (d) None of the above.
32. Ganesh takes a salary Rs. 10,000 per month. He withdrew goods worth Rs. 2,500 for personal
use and got salary Rs. 9,500 in cash. The excess payment of Rs. 2,000 will be debited to
(a) Sales account. (b) Goods account.
(c) Salary account. (d) Salary in advance account.
33. Journal entry for Rs. 6,000 stolen from the safe of the firm will be ________
(a) Dr. P& L a/c and Cr. Cash embezzlement a/c Rs. 6,000.
(b) Dr. Cash embezzlement a/c and Cr. Cash a/c Rs. 6,000.
(c) Dr. Cash a/c and Cr. P& L a/c Rs. 6,000
34. After preparing the trial balance the accountant finds that the total of the debit side is short
by Rs. 1,000. This difference will be __________
(a) Credited to suspense account.
(b) Debited to suspense account.
(c) Adjusted to any of the debit balance account.
(d) Adjusted to any of the credit balance account.
35. The accountant of the firm M/s ABC is unable to tally the following trial balance:
S. No. Account heads Debit (Rs.) Credit (Rs.)
1. Sales 12,500
2. Purchases 10,000
3. Miscellaneous expenses 2,500
Total 10,000 15,000
The above difference in trial balance is due to
(a) Wrong placing of sales account

(b) Incorrect totalling.
(c) Wrong placing of miscellaneous expenses account
(d) Wrong placing of all accounts.

36. Sita and Gita are partners sharing profits and losses in the ratio of 3:2 having the capital
of Rs. 80,000 and Rs. 50,000 respectively. They are entitled to 9% p.a. interest on
capital before distributing the profits. During the year firm earned Rs. 7,800 after allowing
interest on capital. Profits apportioned among Sita and Gita is:
(a) Rs. 4,680 and 3,120 (b) Rs. 4,800 and 3,000
(c) Rs. 5,000 and 2,800 (d) None of the above.
37. A sale of Rs. 100 to A recorded in the Purchase Book would affect:
(a) Sales Account
(b) Purchases Returns Account
(c) Sales Account, Purchases Account & As Account.
38. Total capital employed by a partnership firm is Rs.1,00,000 and its average profit is Rs.25,000.
Normal rate of return is 20% in similar firms working under similar conditions. The firm
earns super profit of:
(a) Rs. 3,000 (b) Rs. 5,000
(c) Rs. 4,000 (d) Rs. 2,000
39. If capital employed by a partnership firm is Rs.1,00,000 and its average profit is
Rs. 20,000, normal rate of return is 15%, the value of goodwill according to capitalization
method will be
(a) Rs.30,000 (b) Rs.5,000
(c) Rs.1,33,333 (d) Rs.33,333
40. A and D are equal partners. They wanted to admit C as 1/6th partner who brought Rs.60,000
as goodwill. The new profit sharing ratio is 3:2:1. Profit sacrificing ratio will be
(a) 0:1/6 (b) 2:1
(c) 3:1 (d) None of the above.
41. A, B, C & D are in partnership sharing profits and losses equally. They mutually agree to
change the profit sharing ratio to 3:3:2:2. In this process D loses
1 1
(a) th share (b) th share
20 10
1
(c) th share (d) None of the above
5

42. The following information pertains to X Ltd.
(i) Equity share capital called up Rs.5,00,000
(ii) Calls in arrear Rs.40,000
(iii) Calls in advance Rs.25,000
(iv) Proposed dividend 15%
The amount of dividend payable is
(a) Rs.75,000 (b) Rs.72,750
(c) Rs.71,250 (d) Rs.69,000
43 . Alfa Ltd. issued shares of Rs.10 each at par. Mr. C purchased 30 shares and paid Rs.2
on application but did not pay the allotment money of Rs.3. If the company forfeited his
entire shares, the forfeiture account will be credited by:
(a) Rs. 90. (b) Rs. 81.
(c) Rs. 60. (d) Rs. 54.
44. The profits of last three years are Rs. 43,000; Rs. 38,000 and Rs. 45,000. Find out the
goodwill at two years purchase.
(a) Rs. 42,000. (b) Rs. 84,000.
(c) Rs. 1,26,000. (d) Rs. 36,000.
45. Mohan sent some goods costing Rs. 3,500 at profit of 25% on sale to Sohan on sale or return
basis. Sohan return goods costing Rs.800. At the year end, i.e., on 31st December, 2011,
the remaining goods were neither returned nor approved by him. The inventory on
approval will be shown in the balance sheet at Rs. ______
(a) Rs. 2,000 (b) Rs. 2,700
(c) Rs. 2025 (d) Rs. 3,500
46. As acceptance to B for Rs.2,500 is discharged by a cash payment of Rs.1,000 and a new
bill is drawn for the balance plus Rs.50 for interest. The amount of the new bill will be
Rs. ______
(a) 2,550 (b) 1,550
(c) 1,050 (d) None of the three.
47. A bought goods of the value Rs.10,000 and consigned them to B to be sold on joint venture,
profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost on
consignment. The amount of bill will be
(a) Rs. 10,000 (b) Rs. 8,000
(c) Rs. 6,000 (d) Rs. 9,000
48. Goods costing Rs.1,80,000 sent to consignee to show a profit of 20% on invoice price. Invoice
price of the goods is ______
(a) Rs. 2,16,000 (b) Rs. 2,25,000
(c) Rs. 2,10,000 (d) None of the above.

49. If 1,000 typewriters costing Rs.250 each are sent on consignment basis and Rs.10,000 is
spent for freight etc., 20 typewriters are damaged in transit beyond repair. The amount of
loss will be __________
(a) Rs. 5,000 (b) Rs.200
(c) Rs.5,200 (d) None of the above.
50. 1,000 Kg. of Mangoes were consigned to a wholesaler, the cost being Rs. 3 per kg. plus
Rs. 400 freight. Loss of 15% of Mangoes is unavoidable. 750 kgs. were sold by the consignee.
The remaining inventory of 100 kg. will be valued at
(a) Rs. 300. (b) Rs. 500.
(c) Rs. 400. (d) None of the above.
51. Machinery costing Rs.10,00,000 was purchased on 1.4.2011. The installation charges
amounting Rs.1,00,000 were incurred. The depreciation at 10% per annum on straight line
method for the year ended 31st March, 2012 will be ____
(a) Rs.1,00,000 (b) Rs. 2,00,000
52. Goods costing Rs 5,00,000 sent out to consignee at Cost + 25%. Invoice value of the goods
will be _______
(a) Rs. 5,00,000 (b) Rs. 6,25,000
53. Opening inventory Rs. 2,50,000, closing inventory Rs. 50,000, purchases Rs. 2,00,000,
sales Rs. 5,00,000. Gross profit rate 20% on sales. The amount of gross profit is:
(a) Rs. 1,10,000. (b) Rs. 1,00,000
(c) Nil. (d) None of the above.
54. XYZ & Company employs a team of ten workers who were paid Rs.1,000 each in the year
ending 31st December, 2010. At the start of year 2011, the company raised salaries by
10%. The amount of salaries for the year ended 31st December, 2011 will be ______
(a) Rs. 10,000 (b) Rs. 15,000
55. Debit balance as per Cash Book of ABC Enterprises as on 31.3.2012 is Rs. 10,000.
Cheques deposited but not cleared amounts to Rs. 1,000 and Cheques issued but not
presented is Rs. 2,000. Balance as per pass book should be
(a) Rs. 11,000. (b) Rs. 9,000.
(c) Rs. 10,000. (d) None of the three.
56. Goods purchased Rs. 1,00,000, Sales Rs. 90,000 and Margin is 20 % on sales. Closing
inventory is
(a) Rs. 10,000. (b) Rs. 25,000.
(c) Rs. 28,000. (d) None of the above.

57. Mohan runs a restaurant. He renovates some of the old cabins to increase some space.
The amount of Rs. 15,000 was incurred on renovation. The amount to be charged to
profit and loss account is
(a) Nil. (b) Rs. 15,000.
(c) Rs. 10,000. (d) None of the above
58. Money paid to MTNL Rs. 10,000 for installing telephone in office is:
(a) Expense. (b) Liability.
(c) Asset. (d) Revenue.
59. A company forfeited 1,000 shares of Rs.10 each (which were issued at par) held by Mr. John
for non-payment of allotment money of Rs. 4 per share. The called-up value per share was
Rs.8. On forfeiture, the amount debited to share capital will be
(a) Rs.10,000 (b) Rs.8,000
(c) Rs.2,000 (d) Rs.18,000.
60. Capital introduced in the beginning by Shyam Rs. 3,00,000; further capital introduced during
the year Rs. 2,00,000; Drawing Rs. 1,500 per month and closing capital is Rs. 4,50,000. The
amount of profit or loss for the year is:
(a) Loss Rs. 32,000.
(b) Loss Rs. 50,000.
(c) Profit Rs. 32,000.
(d) Information is insufficient for any comment.

(a) The liability of partners of a firm is unlimited.
(b) Generally the liability of a member of a company is limited but it can be unlimited.
(c) The liability of partner of firm is same as a member of any company.
(d) Both option (a) and (b).
62. In case of eatables and provisions, implied conditions can be applied are:
(a) Implied condition as to merchantability
(b) Implied condition as to wholesomeness
(c) Implied condition as to quality/fitness

63. A contract of sale may be made by
(a) Immediate deelivery of the goods

(b) Immediate delivery and immediate payment
(c) Delivery or payment or both at some future date
64. An offer may be made to the following:
(a) A particular person.

(b) A particular group or body of persons.
(c) The public at large i.e. the whole world.
65. The following is not a document of title to goods:

(a) Bill of lading.
(b) Dock-warrant.
(c) Stamped acknowledgement for receipt of goods.
(d) Warehouse keepers certificate.
66. An agreement induced by mistake of fact is void if the following conditions are fulfilled:
(a) Both the parties must be under the same mistake.
(b) The mistake must be as to some fact.
(c) The fact must be essential to the agreement.
67. Contracts may be classified on the basis of their validity, formation or performance. Contracts
classified on the basis of formation are of the following types:
(a) Express Contracts. (b) Implied Contracts.
(c) Quasi Contracts. (d) All of the above.
68. A condition may be treated as warranty in the following cases:
(a) Where the buyer altogether waives the performance of the condition.
(b) Where the buyer elects to treat the breach of condition as one of a warranty.
(c) In both of the above situations.
(d) In some other situations, but not in the above situations.
69. The difference in consideration under English law and Indian law are:
(a) Under English law past consideration is no consideration whereas under Indian Law past
consideration is good consideration.
(b) Under English law consideration must move from the promisee only and no other person
whereas under Indian Law consideration may move from the promisee or any other
person.

(c) Under English law formal contracts i.e. one which is one in writing do not require any
consideration whereas under Indian Law all contracts are required to be supported by
consideration.
70. Implied authority of the partner does not empower him to
(a) Open a bank account on behalf of the firm in his own name.
(b) Compromise or relinquish any claim or portion of a claim by the firm against an outsider.
(c) Both of the above.
71. Compulsory Dissolution includes
(a) Dissolution by the adjudication of all the partners or of all the partners but one as insolvent.
(b) Dissolution by the business of the firm becoming unlawful.
72. Ratification by a minor of a contract entered during minority, even after he attains majority
is not allowed.
(a) The above statement is correct. (b) The above statement is partly correct.
(c) The above statement is incorrect. (d) The above statement is irrelevant.
73. A contract between A, B and C was executed whereby A pays money to B for delivering some
goods to C. C has not paid any consideration. Can C enforce the agreement?
(a) Yes, as he is the beneficiary of Trust.
(b) Yes but the same can only be done jointly with A.
(c) No as C did not pay the consideration.
(d) A and only A can enforce the agreement.
74. In case of sale
(a) Property in goods does not pass to the buyer.
(b) Risk in the goods does not pass to the buyer.
75. A void contract is a contract without any legal effect and cannot be enforced in a Court of
law. The following are instances of void contracts:
(a) Agreements entered under mistake of fact.
(b) Agreements by way of wager.
(c) Agreements made without consideration.

76. Finder of goods is subject to the same responsibility as of :

(a) Owner
(b) Caretaker
(c) Bailee
(d) Buyer
77. Acceptance is deemed to take place when the buyer
(a) Intimates to the seller that he had accepted the goods.
(b) Does any act to the goods, which is inconsistent with the ownership of the seller.
(c) Retains the goods after the lapse of a reasonable time, without intimating to the seller that
he has rejected them.
(d) Either (a) or (b) or (c).
78. The rights of a minor when admitted to the benefits of the partnership include
(a) Right to share of the property and profits of the firm as may be agreed upon.
(b) Right to have access to and inspect and copy of the account of the firm.
(c) Right to cast his vote on the question of appointment of the managing partner.
(d) (a) & (b) but not (c).
(a) Liability of a partner in a partnership firm is unlimited.
(b) Liability of a member of a HUF is unlimited.
(c) Both the above.
80. Agreement to share profits _________.

(a) Implies an agreement to share losses
(b) Does not necessarily mean an agreement to share losses
(c) Must be coupled with an agreement to share losses
(d) Is same as agreement to share losses
81. Actual Sale of future goods is _________.

(a) Impossible (b) Possible through an agreement to sell
(c) Illegal (d) A myth
82. An offer made to a definite person who can be accepted by the specified person only is
_________.
(a) Special Offer (b) Accepted Offer
(c) General Offer (d) Standing Offer

83. A contracts to pay B Rs.1,00,000 if the latters house is burnt to ashes. This is an example
of _________.
(a) Contingent Contract (b) Quasi-Contract
(c) Guarantee (d) Bailment
84. The position of a stranger to a contract and that of the stranger to a consideration is
_________.
(a) Partially different (b) Partially same
(c) Entirely different (d) Same
85. Goods are said to be in a deliverable state when _________.

(a) The buyer may take delivery of them
(b) The buyer would, under contract, be bound to take delivery of them
(c) The seller is in a position to deliver them
86. Any act committed by a party to a contract, or with his connivance or by his agent with
intent to deceive another party thereto or his agent, or to induce him to enter into a
contract is said to be _________.
87. Provisions relating to doctrine of Caveat Emptor is laid down in the _________.
(a) Sale of Goods Act, 1930 (b) Indian Contract Act, 1872
(c) Indian Partnership Act, 1932 (d) Companies Act, 1956
88. A directs B who is a solicitor to sell his estate by auction and to employ an auctioneer for
this purpose. B names C, an auctioneer, to conduct the sale. The status of C for the sale
is _________.
(a) C is an agent of A
(b) C is a sub-agent of A
(c) C is an agent of B
(d) C is neither an agent of A nor of B
89. Quasi-contract is also termed as :

(a) Obligation imposed by law (b) Constructive contract
(c) Both (a) and (b) (d) Implied contract

90. X proposes by a letter sent by post to sell his house to Y. Y accepts the proposal by a
letter sent by post. The letter of acceptance is in the course of transmission to X. Y
_________.
(a) Cannot revoke his acceptance
(b) May revoke his acceptance at any time before the letter communicating the acceptance
reaches X but not afterwards
(c) May revoke his acceptance at any time after the letter communicating the acceptance
reaches X
(d) Can revoke only after the prior approval of X
91. A agrees to pay B Rs. 5,00,000/- if A is able to go to a foreign tour in the forthcoming week.
It is _________.
(a) A wagering contract (b) A contingent contract
(c) Both of the above (d) Not a contract at all
92. A bus plying on the road is an example of _________.
(a) Invitation to treat an offer
(b) Mere communication of information in the course of negotiation
(c) Statement of intention
(d) Offer
93. Tender for supply of goods is an offer, which is allowed to remain open for acceptance over
a period of time. Such offers are _________.
(a) Cross Offer (b) General Offer
(c) Standing Offer (d) Unlimited Offer
94. Consideration may be gratuitous or non-gratuitous _________.
(a) In case of sale (b) In case of bailment
(c) In both the above cases (d) In no case
95. Expressed conditions are those _________.
(a) Which are agreed upon between the parties at the time of the contract
(b) Which are presumed by law be present in the contract
96. Right of lien and Right of stoppage in transit _________.
(a) Actually mean the same right
(b) Are actually similar rights
(c) Are consequential or sequential in nature, i.e. the end of right of lien is the starting point of
the right of stoppage in transit
(d) Are rights available to any seller of goods

97. Goodwill of the partnership business can be regarded as _________________.
(a) The property of the firm
(b) The property of the firm, subject to a contract between the partners to this effect
(c) The property of the firm, irrespective of a contract between the partners to this effect
(d) The property of the firm, subject to order of the High Court to this effect
98. Where the deterioration is caused to goods by delay in delivery by the carrier there the
damages can be recovered from :
(a) Seller
(b) Buyer
(c) Carrier
(d) Both (a) or (c)
99. The Damages that constitute the direct loss suffered by the injured party :
(a) Special damages
(b) Vindictive damages
(c) Nominal damages
(d) Ordinary damages
100. Sanju took a medical insurance from Deadly Diseases Insurance & Claim Corporation of
Asia (DDICCA) through one of its agent, Manju. Sanju singed whatever documents
were placed before her by Manju in good faith. The documents contained the fact that
Sanju was healthy, fit and fine whereas she was actually suffering from chronic asthma
and acute allergy. Sanju did not take care to suggest the changes in the documents and
the policy was issued based on the above submissions.
(a) Sanju is well protected because she relied on Manju in all good faith.
(b) Sanju is well protected because Manju never specifically asked her about the above issues
and so she remained silent.
(c) Sanju has a duty to speak and disclose the above issues.
(d) Sanju has no duty to speak and disclose the above issues. It is the duty of DDICCA and its
representatives to ask whatever is required.

101. Economics is the study of

(a) how society manages its unlimited resources.
(b) how to reduce our wants until we are satisfied.
(c) how society manages its scarce resources.
(d) how to fully satisfy our unlimited wants
102. Which of the following is not part of the opportunity cost of going on holiday?
(a) the money you spent on a theatre show
(b) the money you could have made if you had stayed at home and worked
(c) the money you spent on airline tickets
(d) the money you spent on food
103. Which of the following statements is normative?
(a) Large government deficits cause an economy to grow more slowly.
(b) People work harder if the wage is higher.
(c) The unemployment rate should be less.
(d) Printing too much money causes inflation.
104. If an increase in consumer incomes leads to a decrease in the demand for camping equipment,
then camping equipment is
(a) a normal good. (b) none of these answers.
(c) an inferior good. (d) a substitute good.
105. Suppose consumer tastes shift toward the consumption of apples. Which of the following
statements is an accurate description of the impact of this event on the market for apples?
(a) There is an increase in the quantity demanded of apples and in the supply for apples.
(b) There is an increase in the demand and supply of apples.
(c) There is an increase in the demand for apples and a decrease in the supply of apples.
(d) There is an increase in the demand for apples and an increase in the quantity supplied.
106. A buyers willingness to pay is that buyers:
(a) minimum amount he is willing to pay for a good.
(b) producer surplus.
(c) consumer surplus.
(d) maximum amount he is willing to pay for a good.

107. The following table exhibits:
Number of workers Output
0 0
1 23
2 40
3 50
(a) increasing marginal product of labour.
(b) diminishing marginal product of labour.
(c) increasing returns to scale.
(d) diminishing returns to scale.
108. If there are implicit costs of production:
(a) economic profit will be equal to accounting profit.
(b) economic profit will be less than accounting profit.
(c) economic profits will be zero.
(d) economic profit will be more than accounting profit.
109. If a competitive firm doubles its output, its total revenue:
(a) doubles.
(b) more than doubles.
(c) less than doubles.
(d) cannot be determined because the price of the good may rise or fall.
110. In the long-run, some firms will exit the market if the price of the good offered for sale is less
than:
(a) marginal revenue. (b) marginal cost.
(c) average total cost. (d) average revenue.
111. Which of the following statements about price and marginal cost in competitive and
monopolized markets is true?
(a) In competitive markets, price equals marginal cost; in monopolized markets, price exceeds
marginal cost.
(b) In competitive markets, price equals marginal cost; in monopolized markets, price equals
marginal cost.
(c) In competitive markets, price exceeds marginal cost; in monopolized markets, price exceeds
marginal cost.
(d) In competitive markets, price exceeds marginal cost; in monopolized markets, price equals
marginal cost.
112. Agriculture faces the problem of:
(a) slow and uneven growth. (b) over irrigation.
(c) overdose of fertilizers. (d) very few people engaged in it.

113. ICICI bank is a:

(a) central bank. (b) private commercial bank.
(c) rural regional bank. (d) nationalized bank.
114. SJSRY was launched to:
(a) provide house to the rural poor.
(b) provide gainful employment to the urban poor.
(c) food security to the rural poor.
(d) none of the above.
115. If 4 farmers can do a field job which is being done by 6 farmers, this means there is:
(a) frictional unemployment. (b) disguised unemployment.
(c) voluntary unemployment. (d) seasonal unemployment.
116. If 9 people are unemployed and 411 people are in the work force, then people in labour force
are:
(a) 402 (b) 411
(c) 9 (d) 420
117. For adult education _________ mission was launched in 1998 in India.
(a) National Adult education (b) National Technological
(c) National Senior Citizen (d) National Literacy
118. According to the latest available data, the bed-population ratio in India is ________ per
thousand population.
(a) 3.2 (b) 9.5
(c) 1.03 (d) 20.3
119. According to the latest data (March, 2013), there are around ___________ broadband
subscribers in India.
(a) more than 15 million (b) more than 3 million
(c) more than 2 million (d) more than 5 million
120. The rate of inflation was lowest in _________.
(a) fifties (b) sixties
(c) seventies (d) eighties
121. In the year _________, the practice of RBI lending to the government through ad hoc treasury
bills was given up.
(a) 1951 (b) 1997
(c) 1991 (d) 2001

122. TRAI is the regulatory authority for _______ in India.
(a) railways (b) telecom
(c) banking (d) secondary market
123. The FRBM Act aims at reducing gross fiscal deficit by _______% per annum.
(a) 2% (b) 1%
(c) 0.5% (d) 3%
124. Indias postal network is the _______ in the world.
(a) tenth largest (b) smallest
(c) tenth smallest (d) largest
125. GNP at market price minus _______ is equal to GDP at market price.
(a) depreciation. (b) direct taxes
(c) subsidies (d) net income from abroad
126. About 90 percent of the sick units in India are _______ units.
(a) small (b) big
(c) banking (d) trading
127. Excise duties are levied on _______.
(a) incomes of the individual (b) production of goods
(c) export and import of goods (d) incomes of the corporate
128. Points outside the production possibilities curve are _______.
(a) attainable with the existing technology.
(b) not attainable with the existing resources and technology.
(c) inefficient.
(d) suggest that the countrys factors are underemployed.
129. Price theory is an important constituent of _______ Economics.
(a) Micro (b) Macro
(c) Developmental (d) Welfare
130. For _______ goods increase in income leads to increase in demand
(a) Abnormal (b) Normal
(c) Inferior (d) Superior
131. Economic laws are essentially _______ and _______ .
(a) hypothetical, conditional (b) hypothetical, unconditional
(c) neutral, rigid (d) neutral, flexible

132. Inductive method is _______ based on the observation of particular facts.

(a) never (b) seldomly
(c) alternatively (d) always
Questions 133 to 137 are based on the demand and supply diagrams in Figure 1. D1 and S1
are the original demand and supply curves. D2, D3, S2 and S3 are possible new demand
and supply curves. Starting from initial equilibrium point (1) what point on the graph is
most likely to result from each change?
133. If Figure 1 represents the market for Perk (chocolates), the initial equilibrium is at the
intersection of S1 and D1. The new equilibrium if there is an increase in the price of Dairy
milk (chocolates) will be:
(c) Point 4 (d) Point 2.
134. In Figure 1 (which represents the market for Perk (chocolates), the initial equilibrium is at
the intersection of S1 and D1. The new equilibrium if there is rapid economic growth but cost
of labour producing Perk also rises:
135. In Figure 1(which represents the market for Perk), the initial equilibrium is at the intersection
of S1 and D1. The new equilibrium if there is a health scare about the effect chocolates may
have is:

136. In Figure 1 (which represents the market for Perk), the initial equilibrium is at the
intersection of S1 and D1. Assuming that there is a new technology for producing Perk,
the new equilibrium:
137. In Figure 1 (which represents the market for Perk), the initial equilibrium is at the
intersection of S1 and D1. Assume that there is an increase in the productivity and at the
same time the price of 5 star (chocolates) falls. The new equilibrium will be:
138. What is the average total cost in producing 20 units, if fixed cost is Rs.5000 and average
variable cost is Rs. 2/-?
(a) 250 (b) 260
(c) 258 (d) 252
139. For producing 100 units, Total variable cost is Rs.500 & Total fixed cost is Rs.1000.
Compute Average Cost.
(a) 10 (b) 15
(c) 5 (d) 20
Read the following data and answer questions 140-143. A monopolist charges Rs. 30 for
his product. He notices that elasticity in market A is 2 and elasticity in market B is 5.
140. What will be the Marginal Revenue in Market A?
(a) 10 (b) 20
(c) 15 (d) 25
141. What will be the Marginal Revenue in Market B?
(a) 5 (b) 12
(c) 24 (d) 10
142. In which market will the monopolist charge a higher price?
(a) B (b) Cant Say
(c) Same price in both the market (d) A
143. The price discriminating monoplist will be in equilibrium when:
(a) MRA = MC (b) MRA = MRB = AMC
(c) MRB = MC (d) MCA = MCB = MRA
144. If in the above case, elasticity was same in both the market, the monopolist:
(a) Will charge higher from market A than B
(b) Will charge higher from market B than A

(c) Will not discriminate price

(d) Cant say
145. Compute national income when population is 3 crore and per capita income is Rs. 2,000.
(a) Rs. 6,000 crore (b) Rs. 2,000 crore
(c) Rs. 3,000 crore (d) Rs. 10,000 crore
146. What is the price elasticity of demand when, price changes from Rs.10 to Rs.12 and
correspondingly demand changes from 6 units to 4 units?
(a) 0.833 (b) 1.6
(c) 2.2 (d) 1.833
147. What is the new quantity demanded when price elasticity is 1 and price changes from Rs.15
to Rs.10 and the original quantity demanded was 10 units?
(a) 15 units (b) 20 units
(c) 8 units (d) 12 units
148. What is the original price of a commodity when price elasticity is 0.71 and demand changes
from 20 units to 15 units and the new price is Rs. 10?
(a) Rs. 15 (b) Rs. 18
(c) Rs. 20 (d) Rs. 8
Read the following table and answer question number 149 -150.
Table 3
Number of products Total utility Marginal utility
0 0 -
1 1800
2 3400
3 4800
4 6000
5 7000
6 7800
7 8400
8 8800
9 9000

(a) 3000 (b) 1200
(c) 1000 (d) 1500
(a) 3000 (b) 200
(c) 2000 (d) 1500
SECTION D : QUANTITATIVE APTITUDE(50 MARKS)
151. The correlation is said to be positive

(a) When the values of two variables move in the same direction.
(b) When the values of two variables move in the opposite direction.
(c) When the values of two variables would not change.
(d) None of these.
152. The point of intersection between the lines 3x+ 4y = 7 and 4x y = 3 lie in the
(a) 1st quadrant. (b) 2nd quadrant.
(c) 3rd quadrant. (d) 4th quadrant.
153. If P is a set of natural number then PP is
(a) (b) Sample Space.
(c) 0 (d) (PP)
154. Three coins are tossed. What is the probability of getting at least two tails?
(a) 1/2 (b) 1/3
155. The result of ODI matches between India and Pakistan follows
(a) Binomial distribution. (b) Poisson distribution.
(c) Normal distribution. (d) (b) or (c).
156. If in a binomial distribution mean = 20, Standard Deviation = 4 then n is equal to
(a) 80 (b) 100
157. The difference between sample Standard Deviation and the estimate of population Standard
Deviation is negligible if the sample size is
(a) Small. (b) Moderate.
(c) Sufficiently large. (d) None of these.

158. Coefficient of determination is defined as

(a) r3 (b) 1 r2
(c) 1+ r2 (d) r2
159. Regression coefficient is independent of the change of
(a) Scale. (b) Origin.
(c) Both origin and scale. (d) Neither origin nor scale.
160. If A and B are mutually exclusive events and P(A) = 0.3 and P(B) = 0.4, find P(A).
(a) 0.7 (b) 0.3
ax + b
161. If y = f(x) = then f(y) is _______ .
ax a
(a) x (b) 2x
(c) x (d) x2
162. Value of 3P2 is _______ .
(a) 6 (b) 1
(c) 3 (d) 2
163. In binomial distribution p denotes probability of _______ .
(a) Success. (b) Failure.
(c) Both of these. (d) None of these.
164. First deciles is the value for which one-tenth of the given observations are _______ D1 and
the remaining nine-tenth observations are _______D1.
(a) Less than or equal to, More than or equal to
(b) More than or equal to, Less than or equal to
(c) Less than, More than
(d) More than, Less than
165. _______ may be defined as the minimum value and the maximum value, the class interval
may contain.
(a) Class mark (b) Class limit
(c) Both of the above (d) None of the above
166. In case of _______, plotted points on a scatter diagram would be equally distributed
without depicting any particular pattern.
(a) Zero correlation (b) Positive correlation
(c) Negative correlation (d) Simple correlation

167. Let f(y)= x x 2 then f(y) is _______ .
3
(a) x3 [x2 +3x.log x] (b) 2
x x [x + 3x. log x]
(c) [x2 3x. log x] (d) None of these
168. The colour of a flower is an example of _______ .
(a) An attribute (b) A variable
(c) A discrete variable (d) A continuous variable
169. A quantitative characteristic is known as _______ .
(a) An attribute (b) A variable
(c) Both of above (d) None of above
170. Data collected on the weight of a group of a students after recording their weights with a
weighing machine are _______.
(a) Primary data (b) Secondary data
(c) Discrete data (d) Continuous data
171. If in a binomial distribution Mean = 20, Standard Deviation = 4 then p is equal to:
(a) 2/5 (b) 3/5
(c) 1/5 (d) 4/5
172. The variables x and y are related by 6x+ 7y = 81 and median of x is 10. What is the median
of y?
(a) 2 (b) 3
(c) 4 (d) 5
173. Find D6 for the following observations.
41, 28, 45, 25, 60, 37.5, 37.5, 40, 65, 32.5
(a) 39.60 (b) 40.60
(c) 41.60 (d) 42.60
174. For a moderately skewed distribution of marks in statistics for a group of 100 students, the
mean mark and median mark were found to be 50 and 40. What is the modal mark?
(a) 15 (b) 20
(c) 25 (d) 30
175. If y = 5+7x and mode of x is 4, what is the mode of y?
(a) 28 (b) 33
(c) 4 (d) 43

176. Following are the marks of 10 students :

82, 79, 56, 79, 85, 95, 55, 72, 70, 66 .
Find coefficient of range.
(a) 25.66 (b) 26.67
(c) 27.66 (d) 28.67
177. A card is drawn from a pack of 52 cards. What is the probability that it is neither a black
card nor a king?
(a) 6/13 (b) 5/13
178. Refer following table

44 48 4
49 53 5
54 58 7
Total 16
Find Relative frequency for the third class interval.
(a) 7/16 (b) 7/4

(c) 16/7 (d) None of the above.
179. If the coefficient of correlation between two variables is 0.6, then the percentage of variation
unaccounted for is
(a) 60% (b) 40%
(c) 64% (d) 36%
180. A coin is tossed two times. The toss resulted in one head and one tail. What is the probability
that the first throw resulted in tail?
(a) 1/3 (b) 1/4
181. A survey shows that 68% of women like apples, 74% of women like orange. What
percentage like both
(a) 12% (b) 6%
(c) 21% (d) 42%

182. e3x+5 dx is equal to
e3x 5 e3x
(a) c (b) c
3 5
e3x 5
(c) c (d) None of these.
3
183. Sum of the series 1, 3, 9, 27 ...nth term is 364. The number of terms is
(a) 5 (b) 6
184. In how many ways can 4 single seated rooms in a hostel be occupied by 3 students?
(a) 24 (b) 12
(c) 4 (d) 6
1 1
185. The value of +
loga (ab) logb (ab) is
(a) 0 (b) 1
186. The difference between the compound interest and the simple interest on
Rs. 1200 for 4 years at 10% p.a. is:
(a) Rs. 77 (b) Rs. 480
(c) Rs. 80 (d) Rs. 557
187. Differentiate y w.r.t. x when y=(x2 2x) (x2+1)
(a) 4x3+ 6x2 2x+ 2 (b) 4x2 6x + 2
(c) 4x3 6x2 + 2x 2 (d) None of these.
2x 2 + 6x 5
188. If f(x) = is to be discontinuous then
12x 2 + x 20
(a) x = 5/4 (b) x = 4/5
(c) x = 4/3 (d) None of these.
189. Find the arithmetic mean between 4 and 10
(a) 14 (b) 7
(c) 3 (d) 6

190. Compute 8C 7
(a) 8 (b) 7
191. Find the distance between the pair of points p (5, 2) and q (3, 4)
(a) 2 10 (b) 10 2
(c) 2 (d) 10
192. What will be the final value of investment for the principal value of Rs. 80,000 for 4 years @
10% p.a. rate of interest?
(a) Rs. 83,200 (b) Rs. 112,000
(c) Rs. 82,300 (d) None of these.
193. 184 x9/8 is expressed as
184
(a) 184x9/8 (b)
x 9/8
184
(c) x9/8 (d)
x 9/8
194. The value of x x dx is
2x 5/ 2 2x 5/ 2
(a) c (b) c
5 5
(c) x5/2 + c (d) None of these.
3
2
x - 27
195. Evaluate lim
x9 x-9
9
(a) 3 (b)
2
3
(c) (d) 9
2
196. Find the mean proportion between 5.25 and 8.9
(a) 8.63 (b) 6.84

197. If a : b = c : d = 3 : 5, then what are the values of ad : bc is
(a) 3:5 (b) 5:3
(c) 1:1 (d) None of these.
198. The solution set of the equations is 2x + 3y = 0 and x + 2y=0
(a) 2, 2 (b) 1, 1
(c) 0, 0 (d) 3, 3
dy
199. The curve 4y = ux2+v passes through the point p at (2, 3) and = 4 this point p. So the
dx
values of u and v are
(a) u = 2, v = 2 (b) u = 4, v = 4
(c) u = 4, v = -4 (d) None of these.
200. Determine the first term of an A.P. with common difference 3 & 7th term being 11
(a) 7 (b) 7
(c) 6 (d) 5

BOARD OF STUDIES
1. All the following errors do not effect the trial balance except
(a) Compensating errors (b) Error of complete omission
(c) Error of partial omission (d) Error of principle
2. Financial statements are part of -
(a) Accounting (b) Book-keeping
(c) All of the above (d) None of the above
3. The areas where in different accounting policies can be adopted are
(a) Providing depreciation (b) Valuation of inventories
(c) Valuation of investments (d) All of the above
4. The total of the sales book is posted periodically to the credit of
(a) Sales account (b) Cash book
(c) Journal proper (d) None of the above
5. The amount of the dishonoured bill has been wrongly debited to general expenses account,
which type of error has been committed?
(a) Error of principle (b) Error of commission
(c) Compensating error (d) Error of omission
6. Bank account is _____
(a) Personal account (b) Intangible real account
(c) Nominal account (d) Both (b) and (c)

7. Cost of tour abroad by the sales manager to develop markets (tour was successful) is ____
(c) Deferred revenue expenditure (d) Both (a) & (b)
8. Advance received from customers is not taken as sale is based on
(a) Money measurement concept (b) Accrual concept
(c) Consistency concept (d) Conservation
9. Income includes
(a) Income received (b) Income receivable
(c) Both (a) and (b) (d) None of the above
10. Mohan Stationers will debit purchase of stationery in ____
(a) Stationery account (b) General expenses account
(c) Purchases account (d) None of the three
11. Amount spent on advertisement is _____
12. Cost of goods sold can be calculated by ____
(a) Trading account (b) Profit & Loss account
(c) Balance sheet (d) None of the above
13. Rs. 5,000 spent on repairs of a newly purchased old motor car is debited to _____
(a) Repairs account (b) General expenses account
(c) Motor car account (d) None of the above
14. Suspense account debit balance Rs. 200 in trial balance, will be recorded in the _____
(a) Liability side of Balance Sheet (b) Asset side of Balance Sheet
(c) Profit & Loss account Cr side (d) None of the three
15. Liability for bill discounted is a ______
(a) Current liability (b) Contingent liability
(c) Fixed liability (d) None of the three
16. In valuation of consignment inventory only _______ expenses of the consignee are added
(a) Direct (b) Indirect
(c) Both (a) and (b) (d) None of the three
17. Premium on issue of shares is recorded in _______
(a) Profit & Loss debit side
(b) Profit & Loss appropriation account Dr side

(c) Profit & Loss appropriation Cr side
(d) Balance Sheet Equity and liability side
18. Interest is calculated on _______ of securities
(a) Market value (b) Face value
(c) Purchase value (d) None of the three
19. Income tax in case of a sole trader is treated as ________
(a) Business expense (b) Personal expense
(c) Customers expense (d) None of the three
20. Expenditure includes
(a) Expense paid (b) Expense payable
(c) Both (a) and (b) (d) None of the three
21. A businessman purchased goods for Rs. 25,00,000 and sold 70% of such goods during
the accounting year ended 31st March, 2010. The market value of the remaining goods
was Rs. 5,00,000. He valued the closing inventory at Rs. 5,00,000 and not at Rs. 7,50,000
due to
(a) Money measurement (b) Conservatism
(c) Cost (d) Periodicity
22. XY LTD. issued 25,000 equity shares of Rs. 100 each at a premium of Rs. 15 each payable as
Rs. 25 on application, Rs. 40 on allotment and balance in the first call. Applications received
for 75,000 equity shares but the company issued to them only 25,000 shares. Excess money
was refunded to them after adjustment for further calls. Last call on 500 shares were not
received and were forfeited after due notice. The above is the case of _____
(a) Over subscription (b) Pro-rata allotment
(c) Forfeiture of shares (d) All of the above
23. Opening inventory Rs. 3,700, Purchases Rs. 20,800, Closing inventory Rs. 2,500. Cost
of goods sold will be _______
(a) Rs. 22,000 (b) Rs. 25,000
(c) Rs. 18,000 (d) Rs. 30,000
24. Original cost Rs. 25,000, salvage value Rs. 1,000, useful life 10 years. Annual depreciation
under SLM will be
(a) Rs. 2,000 (b) Rs. 2,400
(c) Rs. 3,000 (d) Rs. 2,500

25. When preparing a Bank Reconciliation Statement if you start with balance as per Pass
Book, then cheques paid by bank recorded twice in Pass Book Rs. 1050 will be ______
(a) Added (b) Deducted
(c) Not required to be adjusted (d) None of the three
26. Rs. Rs.
Gross Profit 50,000 Provision for Bad Debts (old) 2,000
Rent paid 6,000 Apprentice Premium (Credit) 4,000
Salaries 5,800
Net profit of the firm will be
(a) Rs. 44,200 (b) Rs. 40,000
(c) Rs. 42,000 (d) Rs. 45,000
27. A started business with Rs. 20,000 cash and Rs. 11,000 inventory. Cash sales & cash
purchases were Rs. 10,000 & Rs. 5,000. Total sales and purchases amounted to
Rs. 70,000 & Rs. 50,000. Outstanding Trade Payables were Rs. 15,000 and Trade
Receivables Rs. 25,000. Expenses paid Rs. 17,000. Machine was purchased for
Rs. 10,000 out of which Rs. 8000 has been paid. Cash in hand at the end of the year was
Rs. 5,000. Total of Trial Balance at the end of the year will be ___________
(a) Rs. 1,18,000 (b) Rs. 1,20,000
(c) Rs. 1,25,000 (d) Rs. 1,40,000
28. Both the discount columns of the Cash Book were omitted to be posted in the ledger.
This error............................?
(a) Is an error of complete omission (b) Will not affect the trial balance
(c) Will not affect the profit (d) None of these
29. Goods purchased Rs. 1,00,000, sales Rs. 90,000 Margin 20% on sales. Closing inventory
is _____
(a) Rs. 10,000 (b) Rs. 25,000
30. Mohan paid Rs. 500 towards a debit of Rs. 2,500, which was written off as bad debt in the
previous year. Mohans account will be credited with
(a) Rs. 2,500 (b) Rs. 2,000
(c) Rs. 500 (d) None of the three
31. Income tax liability of the proprietor Rs. 1200 was paid out of petty cash. Journal entry will
be ________
(a) Dr. drawings and Cr. Cash A/c Rs. 1200
(b) Dr. drawings and Cr. Petty Cash Rs. 1200
(c) Dr Income tax and Cr Cash A/c Rs. 1200

32. An old, machine was purchased for Rs. 60,000. It was repaired for Rs. 5,000 and Rs.
5,000 paid on its installation. Machinery repairs a/c will be debited by -
(a) Rs. 10,000 (b) Rs. 5,000
33. Ras started business on 01.01.2010 with a capital of Rs. 20,000 and he borrowed Rs. 3,000
from a friend. He earned a profit of Rs. 10,000 during the year and withdrew cash Rs. 5,000
for private use. What is his capital at the end of the year?
(a) Rs. 25,000 (b) Rs. 28,000
(c) Rs. 30,000 (d) Rs. 27,000
34. A partnership firm maintains the inventory records under perpetual system of inventory.
Consider the transactions occured for the month of March 2010.
Date Particulars Quantity Cost per unit (Rs.)
March 1 Opening Inventory 15 400
March 4 Purchases 20 450
March 6 Purchases 10 460
If the firm sold 32 units on March 24, 2010 closing inventory under FIFO method is -
(a) Rs. 7500 (b) Rs. 5681

(c) Rs. 5800 (d) Rs. 5950
35. Capital introduced by Mr. A on 01.01.2009 Rs. 1,00,000. Further capital introduced during
the year was Rs. 50,000. Mr. A withdrew Rs. 200 per month on the last date of each month.
Interest on drawings was charged @ 5%. Profit earned during the year was Rs. 10,000.
Capital on 31.12.2009 will be _______
(a) Rs. 1,57,545 (b) Rs. 1,57,000
(c) Rs. 1,60,000 (d) Rs. 1,55,000
36. Purchased goods from A Rs. 500 passed through sales book the rectifying journal entry will
be ________
Rs. Rs.
(a) Purchases A/c Dr. 500
To A 500
(b) As Capital a/c Dr. 500
To Sales 500
(c) Purchases A/c Dr. 500
Sales A/c 500
To A 1,000

37. Opening inventory 20,000

Closing inventory 18,000
Purchases 85,800
Carriage inwards 2,300
Carriage outwards 3,000
Office Rent 5,000
Sales 1,40,700
Gross profit will be _____
(a) Rs. 50,000 (b) Rs. 47,500

(c) Rs. 42,600 (d) Rs. 50,600
38. X of Kanpur sends out certain goods at cost + 25%. Invoice value of goods sent out
Rs. 2,00,000. 4/5th of the goods were sold by consignee at Rs. 1,76,000. Commission 2% upto
invoice value and 10% on any surplus above invoice value. Commission amount will be
________
(a) Rs. 4,800 (b) Rs. 5,200
(c) Rs. 3,200 (d) Rs. 1,600
39. Goods costing Rs. 1000 supplied to Ramesh at the invoice price of 10% above cost and a
Trade Discount for 5%. The amount of Sales will be
(a) Rs. 1045 (b) Rs. 1050
(c) Rs. 1100 (d) Rs. 1060
40. A & B purchased a piece of land for Rs. 60,000 and sold it for Rs. 90,000. A had contributed
Rs. 40,000 and B Rs. 20,000. The profit on venture will be -
(a) Rs. 30,000 (b) Rs. 20,000
(c) Rs. 60,000 (d) NIL
41. A, B & C are partners sharing profits in the ratio of 3:2:1. B retires and goodwill of the firm
is fixed at Rs. 1,80,000. No goodwill A/c appears in the books of the firm. A & C decide to
share profits in the ratio of 3:1. Bs share of goodwill will be adjusted in the Capital accounts
of A and C in
(a) Profit sharing (b) Gaining ratio
(c) Sacrificing ratio (d) Old ratio
42. A Co. issued Rs. 1,00,000 12% Debentures at 5% discount, redeemable at 5% premium
after 10 years. Loss on issue of debentures will be
(a) Rs. 15,000 (b) Rs. 10,000
(c) Rs. 12,000 (d) Rs. 20,000

43. A partnership firm earned net profits during the last 3 years as follows
2007 15,000
2008 20,000
2009 25,000
The capital investment in the firm throughout the above mentioned period has been
Rs. 1,00,000. Having regard to the risk involved 15% is considered to be a fair return on capital.
Goodwill on the basis of 2 years purchase of average super profit earned during the
above mentioned 3 years will be
(a) Rs. 8,000 (b) Rs. 10,000

(c) Rs. 12,000 (d) Rs. 15,000
44. A & B are partners in a business sharing profits and losses in the ratio of 7:3. They admit C
as a partner. A sacrificed 1/7th share and B sacrificed 1/3rd of his share in favour of C. New
Profit sharing ratio will be
(a) 3:1:1 (b) 2:1:1
(c) 2:2:1 (d) None of the above
45. G Ltd. acquired assets worth Rs. 7,50,000 from H. Ltd. by issue of shares of Rs. 100 each at
a premium of 25%. The number of shares to be issued by G. Ltd., to settle the purchase
consideration will be
(a) 6000 shares (b) 7500 shares
(c) 9375 shares (d) 5625 shares
46. A & B are equal partners with capitals of the Rs. 10,000 and Rs. 8,000 respectively. They
admit C as a partner with 1/4th share in the profits of the firm. C brings Rs. 8,000 as his share
of capital. Value of goodwill will be ____
(a) Rs.6,000 (b) Rs. 5,000
47. A second hand car is purchased for Rs. 15000, the amount of Rs. 1000 is spent on its repairs,
Rs. 500 is incurred to get the car registered in owners name and Rs. 1200 is paid as dealers
commission. The amount debited to car account will be _____
(a) Rs. 17,700 (b) Rs. 16,000
(c) Rs. 16,500 (d) Rs. 17,000
48. Ramesh & Suresh are partners sharing profits in the ratio of 2:1 (Ramesh Capital is
Rs. 1,02,000 and Suresh Capital is Rs. 73,000) They admitted Mahesh & agreed to give him
1/5 in share. He brings Rs. 14,000 as his share of goodwill. He agreed to contribute capital in
profit sharing ratio. How much capital will be brought by incoming partner?
(a) Rs. 43,750 (b) Rs. 45,000
(c) Rs. 47,000 (d) Rs. 48,000

49. Debit Balance as per cash book of Narayan Enterprises as on 28th February 2010 is
Rs. 15,000. Cheques deposited but not cleared Rs. 660 and cheques issued but not presented for
payment Rs. 2150. Balance as per pass book should be ______
(a) Rs. 15,500 (b) Rs. 16,490
(c) Rs. 16,000 (d) Rs. 16,500
50. On 1st Sept. 2009 goods costing Rs. 33,000 were consigned by X to his agent Y at a proforma
price which was cost plus one sixth profit on invoice price. Invoice price of goods will
be________
(a) Rs. 39,000 (b) Rs. 39,600
(c) Rs. 40,000 (d) Rs. 45,000
51. Suresh of Delhi consigned 600 fans to Naresh of Bareilly to be sold on his account and at his
risk. The cost of each fan is Rs. 300. Suresh paid Rs. 6000 as freight and insurance. Naresh
paid Rs. 1500 as Octroi & Cartage; Rs. 3500 for godown rent and insurance. 500 fans were
sold for Rs. 1,80,000. Naresh was entitled to a commission of 4% on sale @ Rs. 350 per fan
and 20% of any surplus price realized. Profit on consignment will be ________
(a) Rs. 12,250 (b) Rs. 12,000
(c) Rs. 14,000 (d) Rs. 15,000
52. X and Y enter into a joint venture. X supplied goods to Y from his own inventory worth
Rs. 70,000. X incurred expenses amounting to Rs. 6000 on joint venture. The venture resulted
in a total profit of Rs. 15,000 of which their ratio of distribution is 2:1. The entire sale
proceeds were received by Y. No inventory left at the end of the venture. Amount received
by X from Y in final settlement will be ________
(a) Rs. 85,000 (b) Rs. 86,000
(c) Rs. 80,000 (d) Rs. 75,000
53. A and B are partners sharing profits in the ratio of 3:2 with capitals of Rs. 50,000 and
Rs. 30,000 respectively. Interest on capital is agreed @ 6% p.a. B is to be allowed an annual
salary of Rs. 2,500. The profits of the year prior to calculation of interest on capital but after
charging Bs salary amounted to Rs. 12,500. Manager is to be allowed a Commission of 5%
of profits remaining after deducting salary and interest on capital but before charging such
Commission, Profit transferred to partners Capital Accounts will be ________
(a) A Rs. 4,389 B Rs. 2926 (b) A Rs. 4,000 B Rs. 3,315
(c) A Rs. 3,000 B Rs. 4315 (d) A Rs. 2,500 B Rs. 4,815
54. A and B are partners, sharing profits in the ratio of 5:3. They admit C with 1/5 share in
profits, which he acquires equally from both 1/10 from A and 1/10 from B. New profit sharing
ratio between A and B will be
(a) 21:11 (b) 20:10:4
(c) 15:10:5 (d) None of the three

55. A, B, and C are partners, sharing profits in the ratio of 4:3:2. D is admitted for
2/9 share of profits and brings Rs. 30,000 as his capital and Rs. 10,000 for his share of
Goodwill. The new profit sharing ratio between A:B:C:D will be 3:2:2:2. The Goodwill amount
brought by D will be shared by:
(a) AB & C (b) A&B
(c) A only (d) B only
56. Shiva Ltd. issued 20,000 shares of Rs. 10 each. Payments were to be made as - on
application Rs. 3; on Allotment Rs. 4 and on First and Final Call Rs. 3. Applications were
received for 20,000 shares and all were accepted. All money duly received. Balance
Sheet total will be ________
(a) Rs. 2,00,000 (b) Rs. 1,62,000
57. X Ltd. forfeited 100 shares of Rs. 10 each issued at par to Ravi on which he had paid Rs.
2.50 per share on application and Rs. 2.50 per share on allotment but on which he had
not paid Rs. 5 on first and final call. In case of forfeiture, share capital account will be
debited by ________
(a) Rs. 800 (b) Rs. 700
(c) Rs. 900 (d) Rs. 1,000
58. A Ltd. makes an issue of 10,000 Equity shares of Rs. 100 each payable as follows:
On application and allotment Rs. 50
On First Call Rs. 25
On Second & Final Call Rs. 25
Members holding 400 shares did not pay the second call and the shares are duly forfeited,
300 of which are reissued on fully paid at Rs. 80 per share. Amount transferred to Capital
reserve will be ________
(a) Rs. 16,500 (b) Rs. 16,000

59. 100 articles at the sale price of Rs. 200 each sent to a customer on approval basis were
recorded as actual sales on that price. The sale price was made cost plus 25%. The
amount of inventory on approval will be
(a) Rs. 16,000 (b) Rs. 20,000
60. Share capital 5,00,000 shares of Rs. 10 each
Rs. 5 called up Rs. 25,00,000
Calls in arrear Rs. 10,000
Calls in advance Rs. 15,000
Directors decide to provide 10% for dividend on share capital. Amount of proposed dividend
will be __________
(a) Rs. 2,50,000 (b) Rs. 2,49,000


61. Which of the statement is incorrect?

(a) All illegal agreements are void but all void agreements are not necessary illegal
(b) A voidable contract is not voidable at the option of the aggrieved party
(c) Contracts that are immoral or opposed to public policy are illegal in nature
62. As per the India Contract Act, 1872, every person is competent to contract provided he:
(a) Is of the age majority according to the law to which he is subject
(b) Is of sound mind
(c) Is not disqualified from contracting by any law to which he is subject
63. A agrees with B to discover a treasure by magic. This is an:
(a) Void agreement (b) Voidable agreement
(c) Unlawful agreement (d) Illegal agreement
64. Which of the following agreements is void?
(a) Agreement made under the unilateral mistake of fact
(b) Agreements made under the bilateral mistake of fact
(c) Agreement made under the influence of fraud
(d) Contingent agreement
65. Which of the following agreements are void?
(a) An agreement to share the salary of a public officer
(b) An agreement to sell a religious office
(c) An agreement with the objective of procuring a public post
66. Coercion involves:
(a) Physical Force or Threat (b) Mental Pressure
(c) Both (a) and (b) (d) None of the Above
67. An agreement is void if it is opposed to public policy. Which of the following is not covered
by heads of public policy?
(a) Trading with an enemy (b) Trafficking in public offices
(c) Marriage brokerage contracts (d) Contracts to do impossible acts
68. Consideration must move at the desire of
(a) Promisor (b) Promisee
(c) Any other person (d) Any of these

69. The following persons can enter into contracts as per the provisions of the Indian contracts
Act, 1872:
(a) Alien Enemy
(b) Foreign Sovereigns or accredited representative of a foreign state
(c) Insolvents and convicts
70. The doctrine of Caveat Emptor does not apply, when:
(a) the goods are bought by sample
(b) the goods are bought by sample as well as as description
(c) the goods are purchased under its brand name
(d) All of above
71. The Sale of Goods Act, 1930 deals with:
(a) Sale (b) mortgage
(c) pledge (d) All of above
72. In which of the following cases, the unpaid seller loses his right to lien?
(a) Delivery of goods to buyer (b) Delivery of goods to carrier
(c) Tender of price by buyer (d) All of above
73. The death of a promisor before the performance of the contract may lead to discharged of
the contract by :
(a) Breach of contract
(b) Lapse of time
(c) Operation of law
(d) Impossibility of performance
74. Necessary condition for existing goods is:
(a) They should be in existence at the time of the contract of sale
(b) They should be owned or possessed by the seller
75. In case of sale:
(a) Property in goods passes to the buyer
(b) Risk in the goods passes to the buyer
(c) Both the above
76. Partnership:
(a) Arises by operation of law
(b) Comes into existence only after registration
(c) Can arise by agreement or otherwise
(d) Arise by way of an agreement only


(a) Liability of a partner in a partnership firm is unlimited
(b) Liability of a member of a HUF is unlimited
(c) Both the above
78. Remedies available to the aggrieved party for the breach of contract :
(a) Rescission
(b) Damages
(c) Injunction
79. The essential elements of a partnership at will are:
(a) No period has been fixed by the partners for its duration
(b) There is no provision in the partnership agreement for its determination
80. Implied contract, even if not in writing or express words, is perfectly ________ if other
conditions are satisfied
(a) Void (b) Valid
(c) Voidable (d) Illegal
81. According to the Indian Contract Act, 1872, Consent is said to be free when it is not caused
by ________
(a) Misrepresentation (b) Undue Influence
(c) Coercion (d) All of the above
82. Separation of the goods sold from other goods so as determine and identify the actual
goods to be delivered is termed as:
(a) Amortization (b) Severity
(c) Appropriation (d) Ascertainment
83. A threatens to kill B if he does not agree to sell his scooter to him for Rs.5000 only.
Here Bs Consent is obtained by ________
(a) Undue influence (b) Fraud
(c) Coercion (d) None of these
84. Goods not identified or agreed upon at the time of making of the contract of sale:
(a) Ascertained goods
(b) Specific goods
(c) Unascertained goods
(d) Existing goods

85. An agreement made with free consent to which the consideration is lawful but inadequate,
is ________
(a) Void (b) Valid
(c) Voidable (d) Unlawful
86. When after the formation of a valid contract, an event happens which makes the performance
of contract impossible, and then the contract becomes ________
(a) Void (b) Voidable
(c) Valid (d) Illegal
87. A unilateral mistake as to fact leads to an agreement which is ________
(c) Valid (d) Both (b) & (c)
88. Goods which are in existence at the time of the Contract of Sale is known as ________
(a) Present Goods (b) Existing Goods
(c) Specified Goods (d) none of the above
89. An auction Sale is complete on the ________
(a) Delivery of goods (b) Payment of price
(c) Fall of hammer (d) None of the above
90. An ordinary hire purchase agreement is a contract of :
(a) Agency (b) Carriage
(c) Sale (d) Bailment
91. In case of an agreement to sell, the aggrieved party ________
(a) Can sue for price
(b) Can sue for damages
(c) Can sue the buyer for injunction
92. Buyer means a person who ________
(a) Buys goods (b) Agrees to buy goods
(c) Has bought goods (d) Buys or agrees to buy goods
93. A person who finds goods belonging to another and takes them into his custody________
(a) Becomes the owner of those goods thereafter
(b) Is subject to the same responsibilities as a bailee
(c) Is allowed to sell them and retain the money realized from such sale
(d) Has no obligation to return those goods, he may do so only a goods gesture

94. Conditions and warranties ________

(a) Must be expressed (b) Must be implied if not expressed
(c) May either be expressed or implied (d) None of the above
95. Registration of a firm is ________
(a) Compulsory (b) Optional
(c) Occasional (d) None of the above
96. The bidder at an auction sale can withdraw his bid ________
(a) any time during auction (b) before fall of hammer
(c) before payment of price (d) cannot withdraw at all
97. ________ does not exist.
(a) Liability for special damages (b) Liability for exemplary damages
(c) Liability for nominal damages (d) Liability for disciplinary damages
98. Registration of a partnership firm is- ________
(a) Compulsory from the beginning
(b) Not compulsory till first five years of beginning of the partnership
(c) Not compulsory at all
(d) Compulsory only if the Registration of Firm, gives an order in the regard
99. A believes blue colour to be black colour, for any reason whatsoever. He has a garment shop.
He sells one blue colour shirt to B, representing it to be black colour. B knows nothing about
colour. B believes A and accepts the blue colour to be black colour, Later on Bs mother
explains B that the colour of the shirt is actually blue and not black. It is a clear case of
(a) Misrepresentation (b) Fraud
(c) Unintentional fraud (d) Cheating
100. The Partnership Act requires the giving of public notice in the case of :
(a) Minor admitted to the benefits of Partnership elects to become/not become a partner.
(b) Partner retires from a partnership firm.
(c) Partner is expelled from a Partnership firm
101. Total utility is maximum when:

(a) marginal utility is zero
(b) marginal utility is at its highest point
(c) marginal utility is equal to average utility
(d) average utility is maximum

102. The consumer is in equilibrium at a point where the budget line :
(a) is above an indifference curve (b) is below an indifference curve
(c) is tangent to an indifference curve (d) cuts an indifference curve
103. An indifference curve slopes down towards right since more of one commodity and less of
another result in:
(a) same satisfaction (b) greater satisfaction
(c) maximum satisfaction (d) decreasing expenditure
104. The consumer is in equilibrium when the following condition is satisfied:
MU X PX MUX PX
(a) (b)
MUY PY MUY PY
MUX PX
(c) (d) None of the above
MUY PY
105. In the case of a Giffen good, the demand curve will be:
(a) horizontal (b) downward-sloping to the right
(c) upward-sloping to the right (d) vertical
106. Which of the following is not an essential condition of pure competition ?
(a) large number of buyers and sellers (b) homogeneous product
(c) freedom of entry (d) absence of transport cost
107. Which is the first order condition for the profit of a firm to be maximum?
(a) AC = MR (b) MC = MR
(c) MR = AR (d) AC = AR
108. In which form of the market structure is the degree of control over the price of its products
by a firm very large?
(a) monopoly (b) imperfect competition
(c) oligopoly (d) perfect competition
109. Under which of the following forms of market structure does a firm have no control over the
price of its product?
(a) monopoly (b) monopolistic competition
(c) oligopoly (d) perfect competition
110. Price discrimination will be profitable only if the elasticity of demand in different markets
in which the total market has been divided is:
(a) uniform (b) different
(c) less (d) zero

111. The law of consumer surplus is based on :

(a) indifference curve analysis (b) revealed preference theory
(c) law of substitution (d) the law of diminishing marginal utility
112. Which of the following cost curves is never U shaped ?
(a) Average cost curve (b) Marginal cost curve
(c) Average variable cost curve (d) Average fixed cost curve
113. In the short run, when the output of a firm increases, its average fixed cost:
(a) increases (b) decreases
(c) remains constant (d) first declines and then rises
114. The cost of one thing in terms of the alternative given up is known as:
(a) production cost (b) physical cost
(c) real cost (d) opportunity cost
115. Contraction of demand is the result of
(a) decrease in the number of consumers
(b) increase in the price of the good concerned
(c) increase in the prices of other goods
(d) decrease in the income of purchasers
116. In the case of an inferior good the income elasticity of demand is:
(a) positive (b) zero
(c) negative (d) infinite
117. The elasticity of substitution between two perfect substitutes is:
(a) zero (b) greater than zero
(c) less than infinity (d) infinite
118. A vertical supply curve parallel to Y axis implies that the elasticity of supply is:
(a) zero (b) infinity
(c) equal to one (d) greater than Zero but less than infinity
119. Elasticity of supply refers to the degree of responsiveness of supply of a good to changes in
its:
(a) demand (b) price
(c) costs of production (d) state of technology
120. An isoquant slopes :
(a) downward to the left (b) downward to the right
(c) upward to the left (d) upward to the right

121. Which of the following is considered production in economics?
(a) Tilling of soil
(b) Singing a song before friends
(c) Preventing a child from falling into a manhole on the road
(d) Painting a picture for pleasure
122. Which of the following is not a characteristic of land?
(a) its supply for the economy is limited
(b) it is immobile
(c) its usefulness depends on human efforts
(d) it is produced by our forefathers
123. Who is the official lender of the last resort in India?
(a) SBI (b) PNB
(c) RBI (d) OBC
124. Which of the following statement regarding privatization is correct?
(a) Privatization is panacea for all economic problems
(b) Privatization always leads to attaining social and economic efficiency
(c) Privatization may result in lopsided development of industries in the country
(a) The disinvestments programme has been successfully carried out in India
(b) Privatization up to 100 percent has been carried out in all the PSUs in India
(c) Under strategic sale method of disinvestments, the government sells a major share to
strategic buyer
126. At present 100 per cent FDI is allowed in -
(a) defence (b) drugs and Pharmaceuticals
(c) banks (d) insurance
127. FRBM Act stands for
(a) Fiscal Revenue and Budget Management
(b) Foreign Revenue and Business Management
(c) Fiscal Responsibility and Budget Management
(d) Foreign Responsibility and Budget Management
128. The share of concessional debt in total external debt of India has:
(a) remained the same (b) doubled
(c) reduced (d) increased


(a) The Indian road network is one of the largest networks in the world
(b) The rural road network connects around 65 per cent of all weather roads
(c) Most of the State Road Transport Corporations are running on profits
(d) The National highways carry more than 40 per cent of the total road traffic
130. In terms of generation of power ____________s contribution, is the maximum
(a) hydel (b) nuclear
(c) thermal (d) others
131. NTPC stands for
(a) National Thermal Power Corporation
(b) National Tidal Power Corporation
(c) National Theological Power Corporation
(d) National Talent and Potential Corporation
132. Most of the unemployment in India is:
(a) voluntary (b) structural
(c) frictional (d) technical
133. What is Indias rank in world population?
(a) First (b) Second
(c) Third (d) Fourth
134. In which state is the sex ratio most favourable to women?
(a) Andhra Pradesh (b) Uttar Pradesh
(c) Kerala (d) Karnataka
135. Indias present population in 2013 is:
(a) Between 50 60 crore (b) Between 60 70 crore
(c) Between 70 80 crore (d) Above 120 crore
136. India accommodates nearly _________ per cent of worlds population
(a) 10 (b) 50
(c) 17.5 (d) 45
(a) Excise duty is levied on sales volume
(b) Custom duties have been drastically cut down since 1991
(c) Fiscal policy uses the tools of CRR and Bank Rate to control expenditure
(d) Agriculture contributes the maximum to the direct tax revenues in India

138. Find the tax which is direct tax among the following:
(a) Personal income tax (b) Excise duty
(c) Sales tax (d) Service tax
139. Per capita national income means:
(a) NNP population (b) Total capital population
(c) Population NNP (d) None of the above
140. Which of the following is an economic activity?
(a) Listening to music on the radio
(b) Teaching ones own son at home
(c) Medical facilities rendered by a charitable dispensary
(d) A housewife doing household duties
141. Demand for final consumption arises in:
(a) household sector only
(b) government sector only
(c) both household and government sectors
(d) neither household nor government sector
142. The net value added method of measuring national income is also known as:
(a) net output method (b) production method
(c) industry of origin method (d) all of the above
143. Which of the following is incorrect ?
(a) GDP at market price = GDP at factor cost plus net indirect taxes
(b) NNP at factor cost = NNP at market price minus indirect taxes
(c) GNP at market price = GDP at market price plus net factor income from abroad
144. Nearly _____ percent of working population is engaged in the service sector (2009-10).
(a) 27 (b) 45
(c) 80 (d) 50
145. The industrial sector depends on the agricultural sector because
(a) the agricultural sector provides food and other products for the consumption purposes of
industrial sector
(b) the agricultural sector provides raw materials for the development of agro-based industries
of the economy
(c) the agricultural sector provides market for the industrial products
(d) all of the above

146. The Indian industry faced the process of retrogression and deceleration because of:
(a) unsatisfactory performance of agriculture
(b) slackening of real investment in public sector
(c) narrow market for industrial goods, especially in rural areas
(a) About 80 per cent of agricultural area has irrigation facilities
(b) About 55% net cropped area is rain-fed in India
(c) Productivity per worker in agriculture is much lower than that in industry
(d) Cropping pattern is quite skewed in India
148. We can say Indian agriculture has become modern since:
(a) there has been an increase in the use of high yielding varieties of seeds, fertilizers pesticides
etc.
(b) there has been noticeable positive change in the attitude of farmers towards new techniques
of production
(c) farmers are increasingly resorting to intensive cultivation, multiple cropping, scientific
water management
149. Generally an economy is considered underdeveloped if:
(a) the standard of living of people is low and productivity is also considerably low.
(b) agriculture is the main occupation of the people and productivity in agriculture is quite
low
(c) the production techniques are backward
150. _______ is the apex bank for agriculture credit in India.
(a) RBI (b) SIDBI
(c) NABARD (d) ICICI
151. Laspeyres and Pasches method satisfy time reversal test

(a) True (b) False
(c) Both (d) None of these
152. A frequency distribution
(a) Arranges observations in an increasing order
(b) Arranges observations in terms of a number of groups
(c) Relates to measurable characteristic
(d) All of these

153. Ogive is used to obtain
(a) Mean (b) Mode
(c) Quartiles (d) All of these
154. The value of middlemost item when they are arranged in order of magnitude is called
(a) Standard deviation (b) Mean
(c) Mode (d) Median
155. The errors in case of regression equation are
(c) Zero (d) All of these
156. The probability of an event can assume any value between
(a) 1 and 1 (b) 0 and 1
(c) 1 and 0 (d) None of these
157. The most important continuous probability distribution is known is
(a) Binomial distribution (b) Normal distribution
(c) Chi-Square Distribution (d) Sampling Distribution
158. A measure of precision obtained by sampling is given by
(a) Standard error (b) Sampling fluctuation
(c) Sampling distribution (d) Expectation
159. A range of value is
(a) A point estimate (b) An interval estimate
(c) Both (a) and (b) (d) None of these
160. The index number is a special type of G.M.
(a) True (b) False
161. The number of test of adequacy is ___________
(a) 2 (b) 5
(c) 3 (d) 4
162. If b2 4ac = 0, the roots are ____________
(a) Equal and real (b) Unequal and real
(c) Complex numbers (d) Imaginary numbers
163. If (7p+3q) : (3p-2q) = 43:2 , then p:q is __________
(a) 5:4 (b) 4:5
(c) 7:2 (d) 2:7

164. Number of ________________ arrangement can be made by using all the letters of word
Monday.
(a) 120 (b) 720
(c) 41 (d) 51
165. Which term of series 7,11,15, . nth term is equal to 403.
(a) 50 (b) 100
(c) 101 (d) 51
166. log 2
128 is equal to _____________________
(a) 6 (b) 12
(c) 24 (d) 14
167. The number of ways in which 6 boys sit in a round table so that two particular boys sit
together
(a) 48 (b) 720
168. Rs. 4000 amount to Rs. 6000 in 3 years at the _______________ p.a., if interest is compounded
half yearly.
(a) 12% (b) 14%
(c) 16% (d) 8%
169. A graphical representation of __________ can be prepared in 2 different ways.
(a) Median (b) Mode
(c) Mean (d) None
170. The value of deciles divides the total number of observations into _____ equal parts.
(a) 100 (b) 10
3 x+1 - 3
171. lim is equal to
x 0 x
(a) Does not exist (b) Exist and is equal to 4
(c) Exist and is equal to 3 log e3 (d) Exist and is equal to 3
dy x 2 y 2
172. Find of 2 + 2 =1
dx a b
(a) b2x / a2y (b) b2y / a2x

(c) b2 / a2 (d) 0

173. 6th term of series ab, a2b3, a3b5 . nth term is equal to
(a) a 6 b 11 (b) a5 b10
(c) a6b6 (d) a5 b11
174. log x dx is equal to

2
(a) log 2 1 (b) (2 log 2 + 2)

(c) 2 log 2 1 (d) 0
175. In how many ways can the letters of words ACCOUNTANT be arranged if vowels
always occur together?
(a) 7560 (b) 7650
(c) 7660 (d) 7550
176 . Find the present value of Rs. 500 due 10 years hence when interest of 10% is compounded
half yearly?
(a) Rs. 188.40 (b) Rs. 193.94
(c) Rs. 138.94 (d) Rs. 50.00
177. If f(x) = x2+ 3x then f(2) f(4) is equal to
(a) 15 (b) 18
(c) 18 (d) 12
178. For what value of K the equation 9x2 24x + K = 0 has equal roots
(a) 16 (b) 15
(c) 0 (d) 16
179. Two number are in the ratio of 5:6. If 5 is subtracted from each of them their ratio becomes
4:5. Find the numbers
(a) 25 and 30 (b) 15 and 18
180. The equation of right bisector of line joining the points A (3, 4) and B (5, 6) is equal to
(a) 2x 2y 9 = 0 (b) x+y+1=0
(c) 3x 2y + 7 = 0 (d) x 5y + 4 = 0
181. The regression equation are 8x 10y + 66 = 0 and 40 x 18y = 214, find the coefficient of
correlation
(a) 4/5 (b) 4/5
(c) 3/5 (d) 1

182. The mean weight of 150 students in a class is 60 kg. The mean weight of the boys is 70 kg,
while that of girls is 55 kg, find the number of boys and number of the girls in the class.
(a) 50 boys and 100 girls (b) 100 boys and 50 girls
(c) 75 boys and 75 girls (d) None of these
183. Two cards are drawn from a well shuffled pack of playing cards. Find the probability that
both are ace.
(a) 1:221 (b) 2:221
(c) 10:21 (d) None of these
184. A random sample was taken to estimate the mean annual income of 100 families and the
mean and standard deviation were found to the Rs. 6,300 and Rs. 9.5 respectively find
standard error for 95% confidence level.
(a) 2.25 (b) 1.50
(c) 2.15 (d) 1.862
185. If 10 coins are tossed 100 times, how many times would you expect 7 coins to fall head
upward.
(a) 14 (b) 12
(c) 13 (d) 11
186. Coefficient of variation of two series are 60% and 80% respectively. Their standard deviation
are 20 and 16 respectively, what are their A.M.
(a) 15 and 20 (b) 33.3 and 20
(c) 33.3 and 15 (d) 12 and 16
187. The height of 8 boys in a class (in cumulative) are 135, 138, 160, 141, 155, 146, 158, 149. Find
61st percentile.
(a) 139.81 (b) 151.94
(c) 153.98 (d) None of these
188. The roots of equation 9x+2 6.3 x+1 + 1 = 0 are
(a) 2 (b) 2 and + 2
(c) 2 and + 3 (d) 2, 0
189. How many diagonals can be drawn in a plane figure of 16 sides.
(a) 100 (b) 50
(c) 104 (d) 54
190. The sum of squares of first n natural numbers is equal to
n(n 1) n
(a) (b) (n 1)(2n 1)
2 6

2
n
(c) 6 (n 1) (d) None of these

191. Find the gradient of curve y = 3x2-5x+4 at the point (1, 2)

(a) 1 (b) 3
(c) 4 (d) 5
192. Is greater than over the set of all natural number if known as
(a) Transitive (b) Symmetric
(c) Reflexive (d) Equivalence
193. Find the least value of n for which the sum 1 + 3 + 32 + 33 ________ to n terms of greater than
7000.
(a) 8 (b) 9
(c) 7 (d) 15
194. The number of subsets of the set {1,2,3,4} is
(a) 13 (b) 12
(c) 16 (d) 15
195. x 2 +a 2 dx is equal to
x 2 a2
(a) x a log x 2 x 2 a 2
2
2 2
x 2 a2
(b) x a log x2 x 2 a 2
2
2 2
x 2 a2
(c) x a log x 2 x 2 a 2
2
2 2
(d) None of these
196. If c(n, 8) = c (n, 6), find c(n, 2)
(a) 14 (b) 91
(c) 19 (d) 41
197. An experiment succeeds twice as often as it fails. What is the probability that in next five
trials there will be three success.
(a) 192/243 (b) 19/243
(c) 80/243 (d) 50/243

198. If a:b = 4:5, find the value of (5a 3b): (6a + 3b)
(a) 7:39 (b) 15:39
(c) 1:3 (d) 5:39
199. What is the modal value for the numbers 4, 3, 8, 15, 4, 3, 6, 3, 15, 3, 4.
(a) 3 (b) 4
p
p
p q q -1
200. If pq = qp then value of - p reduces to
q
(a) p (b) q

BOARD OF STUDIES
1. Which of the following is not a sub-field of accounting?

(a) Management accounting (b) Cost accounting
(c) Financial accounting (d) Book-keeping
2. Capital brought in by the proprietor is an example of _____
(a) Increase in asset and increase in liability
(b) Increase in liability and decrease in asset
(c) Increase in asset and decrease in liability
(d) Increase in one asset and decrease in another asset
3. Cost of shifting of business to a more convenient locality is _____
(c) Deferred revenue expenditure (d) Capital loss
4. Salary Rs. 2000 payable to clerk is credited to _______
(a) Salary account (b) Cash account
(c) Outstanding salary Account (d) None of the above
5. Total of purchase return book is posted periodically to the credit of ______
(a) Purchase return account (b) Cash book
(c) Journal proper (d) None of the three
6. No Journal entry is required to be passed when there is ______
(a) Normal loss (b) Abnormal loss
(c) Loss of bad debts (d) Loss by riots.

7. Inventory is valued at cost or market value, whichever is less, is based on ______

(a) Entity concept (b) Money measurement concept
(c) Accrual concept (d) Conservation
8. Account sale is sent by _____
(a) Consignor (b) Consignee
(c) Supplier (d) None of the three
9. Which of the following statement is not true?
(a) If del credere commission is allowed, bad debts will not be recorded in the books of the
consignor.
(b) If del credere commission is allowed, bad debts will be debited in consignment account.
(c) If del credere commission is allowed by consignor to consignee, loss of bad debts is borne
by consignee
(d) Del credere commission is generally given to promote credit sales.
10. In the absence of any provision in the partnership agreement, profits and losses are shared:
(a) In the ratio of capitals
(b) Equally
(c) In the ratio of capital invested by partners to the firm
11. Loss on issue of debentures for 5 years is treated as ______
(a) Intangible asset (b) Current asset
(c) Current liability (d) Other non-current asset
12. Dividends are usually paid as a percentage of ______
(a) Authorised shares capital (b) Net profit
(c) Paid up capital (d) Called up capital
13. According to the Companies Act, 2013, Balance Sheet of a company is prepared as per
(a) Part II of Schedule VI (b) Part I of Schedule III
(c) Part I of Schedule VII (d) Part I of Schedule VII
14. Inventory is valued at
(a) Cost or Market price whichever is lower
(b) Cost or Market price whichever is higher
(c) Cost of Net Realizable Value whichever is lower
(d) At net realizable value
15. The main causes of depreciation include:
(a) Physical wear & tear (b) Passage of time
(c) Change in the Technology (d) All of the above

16. In case of credit balance, the words _______ are written on the credit side.
(a) To balance b/d (b) To balance c/d
(c) By balance b/d (d) By balance c/d
17. Prepaid insurance given in trial balance is recorded in __________
(a) Trading account (b) Profit & Loss account
(c) Balance sheet (d) None of the three
18. Present liability of uncertain amount which can be measured reliably by using a substantial
degree of estimation is termed as _______
(a) Provision (b) Liability
(c) Contingent liability (d) None of the above
19. When preparing a Bank reconciliation statement, if you start with balance as per cash book,
then dividends directly collected by bank but not yet entered in cash book within the period
are ____________
(c) Not required to be adjusted (d) None of the above
20. The benefit from the expenditure is spread for not more than one year is called
(a) Deferred revenue expenditure (b) Deferred capital expenditure
(c) Revenue Expenditure (d) Capital expenditure
21. A trader purchased a machinery costing Rs. 1,00,000 on 1 st Oct. 2009. Transportation
and installation charges were incurred amounting Rs. 10,000 and Rs. 4,000 respectively.
Dismentling charges of the old machine in place of which new machine was purchased
amounted Rs. 10,000. Market value of machine was estimated at Rs. 1,20,000 on March 31,
2010, while finalizing the annual accounts. Trader values the machinery at Rs. 1,20,000 in
his books which of the following concepts was violated by the trader?
(a) Cost concept (b) Matching concept
(c) Realisation (d) Periodicity concept
22. Accounting has certain norms to be observed by the accountants in recording of transactions
and preparation of final statements. These norms reduce the vagueness and chances of
misunderstanding by harmonizing the varied accounting practices. These norms are _________
(a) Accounting regulations (b) Accounting guidance notes
(c) Accounting standards (d) Accounting frame work

23. Opening inventory 8,500

Purchases 30,700
Direct Expenses 4,800
Indirect Expenses 5,200
Closing inventory 9,000
Cost of goods sold will be: _________
(a) Rs. 30,000 (b) Rs. 35,000
(c) Rs. 32,000 (d) Rs. 40,000
24. The plant and machinery account of a firm had a debit balance of Rs. 1,47,390 on Jan. 1,
2010. It has purchased the plant and machinery on Jan 1, 2007. Firm has been following the
practice of charging full years depreciation every year on diminishing balance system @
15%. Cost of machinery on 1.1.2007 will be _____
(a) Rs. 240,000 (b) Rs. 250,000
(c) Rs. 200,000 (d) Rs. 260,000
25. A new firm commenced business on Jan. 1, 2009 purchased goods costing
Rs. 19,500 during the year. A sum of Rs. 400 was spent on carriage inward and Rs. 1000 on
wages. At the end of the year the cost of goods still unsold was Rs. 12,000. Sales during the
year Rs. 25,000. What is the gross profit earned by the firm _________
(a) Rs. 16,100 (b) Rs. 18,200
(c) Rs. 20,000 (d) Rs. 15,100
26. Dr. Cr.
Rs. Rs.
Cost of goods sold 1,50,000
Closing Inventory 40,000
Trade Receivables 60,000
Fixed Assets 50,000
Opening Inventory 60,000
Sundry Expenses 20,000
Sales 2,00,000
Capital 90,000
Trade Payables 30,000
3,50,000 3,50,000
Total of corrected trial balance will be ________
(a) Rs. 3,20,000 (b) Rs. 3,60,000

(c) Rs. 3,00,000 (d) Rs. 4,00,000
27. Journal entry for wages paid Rs. 20,000 for installation of machinery will be ______
(a) Dr. wages A/c and Cr. Cash A/c Rs. 20000
(b) Dr. Machinery A/c and Cr. Cash A/c Rs. 20000
(c) Dr. machinery repairs A/c and Cr. Cash A/c Rs. 20000

28. Capital introduced in the beginning by Syam Rs. 40,000, further capital introduced during
the year Rs. 1,000 Drawings Rs. 200 per month and closing capital is Rs. 53,600. The
amount of profit or loss for the year is _________
(a) Rs. 15,000 profit (b) Rs. 5,000 loss
(c) Rs. 20,000 profit (d) Information is insufficient for any comment.
29. Goods purchased Rs. 1,00,000. The goods were sold Rs. 80,000. Margin 20% on sales.
Closing inventory is _______
(a) Rs. 36,000 (b) Rs. 40,000
30. The securities premium account may be applied by the company
(a) For purchase of own securities.
(b) In writing off the expenses of or the commission paid or discount allowed on, any issue of
shares or debentures of the company.
(c) In paying up un-issued shares of the company to be issued to members of the company as
fully paid bonus shares.
31. Following information pertains to X Ltd.
Rs.
Equity share capital called up 4,60,000

Calls in arrears 7,500
Calls in advance 5,000
Proposed dividend 5%
The amount of dividend payable will be ______
(a) Rs. 22,625 (b) Rs. 23,000

32. Pavan Ltd.s authorized capital is 60,000 shares of Rs. 10 each. 4000 fully paid shares
were issued to promoters for their services. This amount will be debited to_______
(a) Preliminary expenses (b) Goodwill
(c) Sundry expenses (d) None of the three
33. X Ltd. purchased the business of Y Ltd. for Rs. 9,00,000 payable in fully paid shares of 100
each at a premium of 25%. The number of shares to be issued by X Ltd. to settle the purchase
consideration will be ______
(a) 7000 (b) 5000
(c) 7200 (d) None of the three

34. Gopal was holding 100 shares of Rs. 10 each of a company on which he had paid Rs. 3 on
application and Rs. 2 on allotment but could not pay Rs. 2 on first call. Directors forfeited
his shares. Share capital will be debited by _____________
(a) Rs. 1000 (b) Rs. 700
(c) Rs. 500 (d) Rs. 800
35. Pavan Ltd. invited application for 30,000 shares payable as under:
Rs. 3 per share on application;
Rs. 3 per share on allotment;
Rs. 2 per share on First call;
Rs. 2 per share on final call;
Ashok, who had been allotted 500 shares failed to pay both the calls. His shares were forfeited
and reissued at Rs. 9 per share to Hari, as fully paid up. Amount transferred to capital
Reserve will be _____________
(a) Rs. 2,000 (b) Rs. 2,500
(c) Rs. 2,800 (d) Rs. 1,500
36. Z Ltd. forfeited 600 shares of Rs. 10 each, on which first call of Rs. 3 per share was not
received; the second and final call of Rs. 2 per share has not yet been called. Forfeited share
A/c will be credited with _____________
(a) Rs. 3,000 (b) Rs. 2,000
(c) Rs. 1,500 (d) Rs. 1,000
37. When preparing a Bank reconciliation statement, if you start with a debit balance as per
cash book, cheques sent to Bank but not collected within the period should be _____________
(c) Not required to be adjusted (d) Name of the above
38. A company purchased plant for Rs. 5,000. The useful life of the plant is 10 years and the
residual value is Rs. 500. The management wants to depreciate it by straight line method.
Rate of depreciation will be _____________
(a) 8% (b) 9%
(c) 10% (d) None of the three
39. X sells goods at Cost plus 60%. Total sales were Rs. 16,000 cost price of the goods will
be: _____________
(a) Rs. 12,000 (b) Rs. 10,000
40. A trader sells goods at a profit of 25% on sale. In a particular month he sold goods costing
Rs. 34,200 sale price of goods will be _____________
(a) Rs. 45,000 (b) Rs. 45,600
(c) Rs. 45,500 (d) Rs. 42,000

41. A manager gets 5% commission on sales, cost price of goods sold is Rs. 40,000 which he sells
at a margin of 20% on sale. Manager Commission will be ______
(a) Rs. 2000 (b) Rs. 2500
42. A manager gets 5% commission on net profit after charging such commission. If gross profit
is Rs. 48,000 and expenses of indirect nature other than managers commission are Rs.
6,000. Commission amount will be _________
(a) Rs. 2100 (b) Rs. 2000
(c) Rs. 2200 (d) Rs. 2400
43. On January 1, Mohan paid wages amounting Rs. 10,000. This is ______
(a) An event. (b) A transaction.
(c) Either (a) or (b). (d) Neither (a) nor (b).
44. Omega Stationers used Stationery for business purposes Rs. 300. Amount will be credited
to:
(a) Sales A/c (b) Purchases A/c
(c) Cash A/c (d) None of the three
45. A machinery of Rs. 3,000 was sold for Rs. 4200. Depreciation provision till date of sale was
Rs. 400 and commission paid to the selling agent was Rs. 420 and wages paid to the workers
for removing the machine was Rs. 30. Profit on sale of machinery will be _________
(a) Rs. 1200 (b) Rs. 1000
46. Cost of goods sold 1,58,600
Inventory in hand at the close of the year 25,400
Inventory in hand at the beginning of the year 44,000
Purchases amount will be ______
(a) Rs. 1,40,000 (b) Rs. 1,35,000
(c) Rs. 1,30,000 (d) Rs. 1,45,000
Rs.
47. Opening balance of Capital 5,000
Net profit 2,770
Income tax 550
Drawings 650
Interest on capital 500
Interest on Drawings 120
Capital at end will be
(a) Rs. 6950 (b) Rs. 6000

(c) Rs. 6500 (d) Rs. 6600

48. Trial balance of a trader shows the following balances

Rs.
Opening Inventory 9600
Purchases less returns 11850
Salaries and wages 3200
Carriage on Purchases 200
Carriage outwards 300
Sales 24900
Closing Inventory 3500
Gross profit will be
(a) Rs. 6750 (b) Rs. 6500

(c) Rs. 3250 (d) Rs. 3200
49. Rs.
Jan 1, 2009 Provision for Bad Debts 2,500
Dec. 31, 2009 Bad debts 1,870
Trade receivables 20,000
Make a provision for bad debts @ 5% on Trade receivables. Provision for bad debts in
Profit and Loss A/c will be _________
(a) Rs. 370 (b) Rs. 400
50. Goods destroyed by fire Rs. 25000 and Insurance company admitted full claim. Claim
receivable will be recorded in _________
(a) Trading A/c (b) P/L Account
(c) Balance Sheet (d) P/L Appropriation A/c
51. On 1st January, 2010 Badri of Bombay consigned 100 cases (cost price Rs. 7500) at a proforma
invoice price of 25% profit on sales to his agent Anil of Agra. On the same date Badri paid
non recurring expenses of Rs. 600. On 5th January. Anil took delivery and paid Rs. 1200 for
Octroi. On 31st January he sold 80 cases for Rs. 10,500. He charged Rs. 775 as his commission.
Consignment profit will be _________
(a) Rs. 2,285 (b) Rs. 2,200
(c) Rs. 2,500 (d) Rs. 2,000
52. If sales revenue are Rs. 4,00,000, cost of goods sold is 3,10,000 and operating expenses are
Rs. 60,000, the gross profit is
(a) Rs. 90,000 (b) Rs. 30,000
(c) Rs. 3,40,000 (d) Rs. 60,000

53. A, B and C are partners in a business sharing profits and losses in the ratio of 3:2:1. On
30 th June, 2009, C retired from business, when his capital A/c after all necessary
adjustments showed a balance of Rs. 10,950. It was agreed that he should be paid Rs.
4950 in cash on retirement and the balance in three equal yearly instalments with interest
at 6% per annum. Amount of last instalment with interest will be: _________
(a) Rs. 2120 (b) Rs. 2100
(c) Rs. 2200 (d) Rs. 2500
54. A, B and C share profit and losses in the ratio of 3:2:1. Upon admission of D they agreed to
share in the ratio of 5:4:2:1 sacrificing ratio will be: ______
1 1
(a) : NIL : NIL (b) NIL : : NIL
12 12
1
(c) NIL : NIL : (d) None of the three
12
55. Rs. 35,000 was spent on painting the new factory. It is a _________
56. The total cost of goods available for sale with a company during the current year is
Rs. 12,00,000. Total sales during the period are Rs. 13,00,000. If the gross profit margin is
1
33 % on cost. Closing inventory of the current year will be _________
3
(a) Rs. 4,00,000 (b) Rs. 3,00,000
(c) Rs. 2,25,000 (d) Rs. 2,50,000
57. Opening Trade receivables Rs.10,200
Cash Received from trade receivable during the year
(as per cash book) Rs. 30,400
Returns Inwards Rs. 2,700
Bad debts Rs. 1,2 00
Trade receivables at end Rs. 13,800
Cash Sales (As per cash book) Rs. 28,400
Total Sales will be
(a) Rs. 66,300 (b) Rs. 66,000

(c) Rs. 65,000 (d) Rs. 66,500
58. A company wishes to earn 20% profit margin on selling price. Which of the following is the
profit mark upon cost, which will achieve the required profit margin?
(a) 25% (b) 30%
(c) 20% (d) None of the above.

59. Anwar Ltd. Purchased building worth Rs. 99,00,000 and issued 12% debentures of 100
each at a premium of 10%. Premium amount will be __________
(a) Rs. 9,00,000 (b) Rs. 8,00,000
(c) Rs. 7,00,000 (d) Rs. 10,00,000
60. Green Ltd. issued 5,000, 6% debentures of Rs.100 each at a discount of 5% repayable after
5 years at a premium of 5%. Total loss on issue of debentures will be __________
(a) Rs. 40,000 (b) Rs. 50,000
(c) Rs. 60,000 (d) Rs. 70,000
61. Consent is not said to be free when it is caused by __________

(c) Fraud (d) All of these
62. Which of the following statements are correct?
(a) In the case of fraud, the person making the representation believes it to be true.
(b) In the case of misrepresentation, the maker does not believe it to be true.
(c) Fraud does not afford a ground for bringing an action in tort for damages; whereas
misrepresentation does.
(d) In the case of misrepresentation, the fact the plaintiff had means of discovering the truth
by exercising ordinary diligence can be good defence against the repudiation of the contract
but such a defence cannot be set up in the case of fraud other then fraudulent silence.
63. Which of the following statement is true?
(a) A contract with a minor is voidable at the option of the minor.
(b) An agreement with a minor can be ratified after he attains majority.
(c) A person who usually of an unsound mind cannot enter into contract even when he is of a
sound mind.
(d) A person who usually of a sound mind cannot enter into contract when he is of unsound
mind.
64. Taking back of an offer or acceptance is called as :
(a) Cross offer (b) Promises
(c) Revocation (d) Invitation to an offer
65. Consideration in simple term means:
(a) Anything in return. (b) Something in return
(c) Everything in return (d) Nothing in return

66. Which of the following statement is true?
(a) There can be a stranger to a contract
(b) There can be a stranger to a consideration
(c) There can be a stranger to a contract & consideration
67. A minor can be :
(a) An agent (b) Partner in a firm
(c) A member of a company (d) None of these
68. Ordinarily, a minors agreement is
(a) Void-ab-intio (b) Voidable
(c) Valid (d) Unlawful
69. A contract is discharged by rescission which means the
(a) Change in one or more terms of the contract
(b) Acceptance of lesser performance.
(c) Abandonment of rights by a party
(d) Cancellation of the existing contract
70. In case of a firm carrying on the business of banking
(a) There should be at least seven members and maximum number of members should not
exceed fifty.
(b) There should be at least two members and maximum number of members should not exceed ten.
(c) There should be at least ten members and maximum number of members should not exceed twenty.
(d) There should be at least two members and maximum number of members should not
exceed fifty.
71. Person is said to be in a position to dominate the will of the other in which of the following
circumstances:
(a) He holds a real or apparent authority over other.
(b) He stands in a fiduciary relationship.
(c) He contracts with a person who is mentally distressed.
(d) All of these.
72. In case of sale on approval, the ownership is transfer to the buyer when he:
(a) Accepts the goods (b) Adopts the transaction
(c) Fails to return goods (d) In all the above cases
(a) Has a right to become a partner in the firm of the deceased partner.
(b) Does not have a right to become a partner in the firm of the deceased partner.

(c) Can become a partner in the firm of the deceased partner only if the surviving partner give
their consent in this regard.
74. The Sale of Goods Act, 1930 came into force on ______
(a) 15th March, 1930 (b) 30th July, 1930
(c) 30th June,1930. (d) 1st July, 1930
75. Intentional misrepresentation can be termed as ______
(a) coercion (b) mistake
(c) fraud (d) misrepresentation
76. A share in a partnership be transferred like any other ______
(a) Property (b) Goods
(c) Currency (d) Investment
77. The maximum number of partners is mentioned in :
(a) The Partnership Act (b) The General Clauses Act
(c) The Companies Act (d) The Societies Registration Act
78. Active partner is one who :
(a) Takes part in the business of the firm
(b) Actively participates in co-curricular activities
(c) Actively shares the profits.
(d) Makes a show of authority.
79. A minor may be :
(a) Admitted to the benefits of the partnership
(b) A partner of the firm
(c) Representative of the firm
(d) Entitled to carry on the business of the firm
80. Where the ownership passes without any consideration, it is called as :
(a) Sale (b) Bailment
(c) Exchange (d) Gift
81. All contracts are ________
(a) Agreement (b) Promises,
(c) Set of promises (d) Proposals
82. Documents which in the ordinary course of trade are regarded as a proof of ownership of
the goods ?
(a) Documents of title (b) Document showing title
(c) Certificate (d) None of the above

83. An agreement which tends to prevent the course of justice is :
(a) Voidable (b) Illegal
(c) Void (d) Valid
84. Total substitution of new contract in place of old contract takes place in case of ________
(a) Remission (b) Rescission
85. Buyer means a person who:
(a) Buys Goods (b) Agrees to buy goods
(c) Has bought goods (d) Buy or agrees to buy goods
86. An offer made to the public in general which anyone can accept and do the desired act is
________
(a) General Offer (b) Special Offer
(c) Cross Offer (d) Counter Offer
87. Contract of sale is ________
(a) Executory Contract
(b) Executed contract
(c) Executory Contract or Executed Contract
88. A promise made without any intention of performance will be taken as:
(a) Fraud
(b) Coercion
(c) Mis-representation
89. Contract where the promisor undertakes to perform the contract in any event without
any conditions
(a) Contingent Contract
(b) Quasi Contract
(c) Absolute Contract
(d) None of these
90. The conditions which are presumed by law to be present in the contract :
(a) Express conditions
(b) Implied conditions
(c) Contingent conditions
(d) Quasi-conditions
91. Goods are said to be in a deliverable state when ________

(c) The seller is in a position to delivery them

92. In case of a sale the position of a buyer is that of ________
(a) Owner of the goods (b) Bailee of the goods
(c) Hirer of the goods (d) None of the above
93. In case of an agreement to sell, subsequent loss of destruction of the goods is the liability of
______
(a) The buyer (b) The seller
(c) Both the buyer and the seller (d) The insurance company
94. True test of partnership is ________
(a) Sharing of profits
(b) Sharing of profit and losses
(c) Mutual agency
(d) Existence of an agreement to share profit of the business
95. The reconstitution of the firm takes place in case of ________
(a) Admission of a partner (b) Retirement of a partner
(c) Expulsion or death of a partner (d) All of the above
96. The liabilities of a minor when admitted to the benefits of the Partnership ________
(a) Is confined to his share of the profits and property in the firm
(b) Differs from that of the other partners in the firm
(c) Is similar as that of any other partner in the firm
(d) Is unlimited
97. In case of an agreement to sell, the ownership in the goods remains with ________
(a) The buyer
(b) The seller
(c) Both the buyer and seller
(d) The Central Government or the state government, as the case may be
98. Expulsion of a partner, which is not in accordance with provisions of the Indian Partnership
Act, 1932 is ________
(a) Null and void
(b) Null and void to some extent
(c) Is unconstitutional
(d) In good faith and in the interest of the partnership

99. State whether X and Y are partners in the following circumstances:
(a) X agrees Y to carry passengers by taxi from Delhi to Gurgaon on the followings terms,
namely, Y is to pay X Rs. 100 per mile per annum, and X and Y are to share to costs of
repairing and replacement of the care, and to divide equally between them the proceeds of
fares received from passengers.
(b) X and Y are co-owners of a house let to a tenant. X and Y divide the net rents (after
deduction of the incidental taxes; etc.) between themselves.
(c) X and Y buy 200 bales of cotton agreeing to share the same between them.
(d) X and Y agree to work together as carpenters but X shall receive all profit and shall pay
wages to Y.
100. An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be
held on December 23, 2005 a broker came from Hyderabad to attend the auction, but all the
furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his
time and expenses. Which of the following statement(s) is correct?
(a) The broker can get damages from the auctioneer for loss of his time and expenses.
(b) The broker will not get damages from the auctioneer for loss of his time and expenses.
(c) An invitation to make offer is a valid offer.
(d) A declaration of intention by a person will give right of action to another.

(a) Robbins has made economics as a form of welfare economics
(b) The law of demand is always true
(c) All capital is wealth but all wealth is not capital
102. State which of the following represents macro from the national point of view.
(a) Turnover ratio of Reliance Ltd.
(b) Capital output ratio of Indian Industries
(c) Debt equity ratio of TELCO
(d) All the above
103. Which of the following can be regarded as law of economics?
(a) Ceteris Paribus, if the price of a commodity rises the quantity demanded of it will fall
(b) Higher the income, greater is the expenditure
(c) Taxes have no relation with the benefits which a person derives from the state
104. When as a result of decrease in the price of good, the total expenditure made on it
decreases we say that price elasticity of demand is:
(a) less than unity (b) unity
(c) zero (d) greater than unity

105. The point elasticity at the mid-point on the demand curve is:
(a) one (b) zero
(c) less than one (d) less than zero
106. If as a result of 50 per cent increase in all inputs, the output rises by 75 per cent, this is a case
of:
(a) increasing returns to a factor (b) increasing returns to scale
(c) constant returns to a factor (d) constant returns to scale
107. The income of a household rises by 20 per cent, the demand for computer rises by 25 percent,
this means computer (in Economics) is a/an:
(a) inferior good (b) luxury good
(c) necessity (d) cant say
108. Which of the following is not a property of the indifference curve ?
(a) Indifference curves are convex to the origin
(b) Indifference curves slope downwards from left to right
(c) No two indifference curve can cut each other
109. The structure of the cold drink industry in India is best described as:
(a) Perfectly competitive (b) Monopolistic
(c) Oligopolistic (d) Monopolistically competitive
110. If the price of apples rises from Rs. 30 per kg to Rs. 40 per kg and the supply increases from
240 kg to Rs. 300 kg. Elasticity of supply is: (use arc Elasticity Method)
(a) .77 (b) .67
(c) () .67 (d) () .77
111. Which of the following statement is correct ?
(a) Land is highly mobile factor of production
(b) Man cannot create matter
(c) The services of housewife are termed as production in economics
112. Under which market structure, average revenue of a firm is equal to its marginal revenue
(a) Oligopoly (b) Monopoly
(c) Perfect competition (d) Monopolistic competition
113. If a seller realizes Rs. 10,000 after selling 100 units and Rs. 14,000 after selling 120
units. What is the marginal revenue here?
(a) Rs. 4000 (b) Rs. 450
(c) Rs. 200 (d) Rs. 100

114. Under which market condition, though the firms earn normal profits in the long run, there
is always excess capacity with them:
(a) Perfect competition (b) Monopoly
(c) Oligopoly (d) Monoplistic competition
115. Price discrimination is profitable when:
(a) the elasticity of the product in different markets is same
(b) the elasticity of the product in different market is different
(c) the elasticity of the product in different market is zero
(d) none of the above.
116. The cost of one thing in terms of the alternative given up is known as:
(a) opportunity cost (b) real cost
(c) actual cost (d) deferred cost
117. Which of the following statement is incorrect?
(a) Even monopolist can earn losses
(b) Firms in a perfectly competitive market are price takers
(c) It is always beneficial for a firm in the perfectly competitive market to discriminate prices
(d) Economic laws are less exact than the laws of physical sciences
118. In economics, what a consumer is ready to pay minus what he actually pays, is termed as:
(a) Consumers equilibrium (b) Consumers surplus
(c) Consumers expenditure (d) None of the above
119. The producer is in equilibrium at a point where the cost line is:
(a) above the isoquant (b) below the isoquant
(c) cutting the isoquant (d) tangent to isoquant
120. If the price of X rises by 10 per cent and the quantity demanded falls by 10 per cent, X
has:
(a) In elastic demand (b) Unit elastic demand
(c) Zero elastic demand (d) Elastic demand
121. Which of the following is not an economic activity?
(a) A son looking after his ailing mother
(b) A chartered accountant doing his own practice
(c) A soldier serving at the border
(d) A farmer growing millets
122. If real national income rises by 10 per cent and population increases by 2 per cent, per
capita income will increase by:
(a) 5 per cent (b) 8 per cent
(c) 12 per cent (d) 6 per cent

123. Which of the following statement is correct?

(a) Cropping pattern in India is quite balanced
(b) India is passing through the first stage of demographic transition
(c) Indias population is second largest in the world
(d) None of these
124. Which sector of the Indian economy contributes the largest to national income?
(a) Primary sector (b) Manufacturing sector
(c) Secondary sector (d) Tertiary sector
125. Economic development is
(a) synonymous with economic growth
(b) narrower concept than economic growth
(c) broader concept than economic growth
(d) none of the above
(b) NNP at factor cost = GNP at market price
(c) GNP at market price = NNP at market price plus net income from abroad
127. Fiscal policy is concerned with:
(a) public revenue, public expenditure and public debt
(b) controlling the BOP situation
(c) controlling the banks
128. In order to control credit and investment, the Central Bank should:
(a) decrease Cash reserve ratio (b) decrease Bank rate
(c) buy securities in the open market (d) sell securities in the open market
129. Pick up the correct statement:
(a) Inflation is a persistent fall in the price level
(b) The Indian direct tax structure relies on a very narrow population base
(c) Mixed income of self-employed means gross profits received by proprietors
130. Which of the following is an economic activity?
(a) Medical facilities rendered by a charitable dispensary
(b) Teaching ones own nephew at home
(c) A housewife doing household duties
(d) Watching television

131. Which of the following statement is correct ?
(a) Income tax was abolished in India in 1991
(b) Gift tax abolished in India in 1998
(c) Except for Punjab, all the States have adopted VAT
(d) Estate duty was abolished in 1995
132. Demand for intermediate consumption arises in:
(a) household consumers (b) government enterprises only
(c) corporate enterprises only (d) all producing sectors of the economy
133. Transfer payments refer to payment which are made:
(a) without any exchange of goods and services
(b) to workers on transfer from one job to another
(c) as compensation to employees
134. Net National Product at factor cost is:
(a) equal to national income
(b) more than national income
(c) less than national income
(d) always more than the gross national product
135. The net value added method of measuring national income is also known as:
(a) net output method (b) production method
(c) industry of origin method (d) all the above
136. Which of the following is incorrect?
(b) NNP at factor cost = NNP at market prices minus net indirect taxes
(c) GNP at market prices = GDP at market prices plus net factor income from abroad
137. What is Indias world rank in population?
(a) First (b) Second
(c) Third (d) Fourth
138. In which state or union territory is the literacy rate highest in the country?
(a) Delhi (b) Chandigarh
(c) Karnataka (d) Kerala
139. Which year is known as year of great divide for Indias population?
(a) 1921 (b) 1951
(c) 1991 (d) 1981

140. Which is the other name that is given to the average revenue curve?
(a) Profit curve (b) Demand curve
(c) Average cost curve (d) Indifference curve
141. A monopolist is able to maximize his profits when:
(a) his output is maximum
(b) he charges a high price
(c) his average cost is minimum
(d) his marginal cost is equal to marginal revenue
142. Which is the other name that is given to the demand curve?
(a) Profit curve (b) Average Revenue curve
(c) Average Cost Curve (d) Indifference Curve
143. What is the shape of the demand curve faced by a firm under perfect competition?
(a) Horizontal (b) Vertical
(c) Positively sloped (d) Negatively sloped
144. A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is:
(a) zero (b) infinity
(c) equal to one (d) greater than zero but less than one.
145. The second glass of lemonade gives lesser satisfaction to a thirsty boy, this is a clear case of:
(a) Law of demand (b) Law of diminishing returns
(c) Law of diminishing marginal utility (d) Law of supply
146. Which of the following statement is incorrect?
(a) An indifference curve slopes downward to the right
(b) Convexity of a curve implies that the slope of the curve diminishes as one moves from left
to right
(c) The elasticity of substitution between two goods to a consumer is zero
(d) The total effect of a change in the price of a good on its quantity demanded is called the
price effect
147. The second slice of bread gives less satisfaction to a hungry boy. This is a clear case of:
(a) Law of demand (b) Law of diminishing returns
(c) Law of diminishing utility (d) Law of supply
148. Three steel plants in Bhilai, Rourkela and Durgapur were set up in the
(a) First plan (b) Second plan
(c) Third plan (d) Fourth plan

149. About _______ per cent of the sick units in India are small units
150. Which of the following has been specifically established to meet the requirements of credit
of the farmers and villagers?
(a) ICICI Bank (b) Regional Rural Bank
(c) State Bank of India (d) EXIM Bank
151. The class having maximum frequency is called ______

(a) Modal class (b) Median class
(c) Mean Class (d) None of these
152. The errors in case of regression equation are ______
(c) Zero (d) All these
153. Karl Pearsons coefficient is defined from ______
(a) Ungrouped data (b) Grouped data
(c) Both (d) None
154. If P (A B) = 0 then two events A and B are:
(a) Mutually exclusive (b) Equally like

(c) Independent (d) Exhaustive
155. A binomial distribution is
(a) Never Symmetrical (b) Never Negatively skewed
(c) Symmetrical when p = 0.5 (d) never positively skewed
156. As the sample size decreases, standard error:
(a) Increases (b) Decreases
(c) Remains constant (d) Increases proportionately
157. Standard deviation of sampling distribution is itself the standard error:
(a) True (b) False
158. Theoretically, A.M. is the best average in the construction of index nos. but in practice,
mostly the G.M. is used:
(a) False (b) True

159. The result of ODI matches between INDIA and ENGLAND follows:
(a) Binomial distribution (b) Poisson distribution
(c) Normal distribution (d) (b) or (c)
160. If P (AB) = P (A) P(B), two events A and B are said to be
(a) Dependent (b) Equally like
(c) Independent (d) None
161. Correlation Co-efficient is _______ of the units of measurements
(a) Dependent (b) Independent
162. log 64/8 is equal to ______
(a) log 64 log 8 (b) 23
(c) 8 log 64 (d) None of these
163. If ________, the roots are real but unequal
(a) b2 4ac = 0 (b) b2 4ac >0
(c) b2 4ac<0 (d) b2 4ac <0
164. _____________ is the mean proportional between 4p2 and 9q2
(a) 6 pq (b) 36 pq
(c) 6p2q2 (d) None of these
165. r, bxy, byx all have _____________ sign
(a) Different (b) Same
166. The 8th term of series 4, 8, 16 ... nth term is ______________.
(a) 1024 (b) 256
(c) 32 (d) 2048
167. The total no. of seating arrangement of 5 person in a row is _____.
(a) 5! (b) 4!
(c) 2 x 5! (d) None of these
168. In __________________ the quantities are in ratios
(a) A.M. (b) G.M.
(c) H.M. (d) None of these

169. The present value of Rs. 10,000 due in 2 years at 5% p.a. compound interest when the
interest is paid on half yearly is Rs. _______
(a) 9070 (b) 9069
(c) 9061 (d) 9060
170. The equation of line passing through the points (1, -1) and (3, -2) is given by ________
(a) 2x + y + 1 = 0 (b) 2x + y + 2 = 0
(c) x+y+1=0 (d) x+2y+1=0
x 2 9
x 3 x 3
(a) 0 (b) 6
(c) Does not exist (d) 6
172. The derivative of y = 2x+1 w.r.t..x is:
1 -1
(a) (b)
2x+1 2x+1
1
(c) . 2x+1 (d) None of these
2
1
173. x dx is equal to
1
(a) x log x (b)
x2
(c) log x + c (d) none of these
1 1
174. If f (x) = -x, f
x 2
(a) 3/2 (b) 2/3
(c) 1 (d) 0
175. The sum of square of first natural numbers
n n
(a) n 1 (b) (n 1)(2n 1)
2 6
2
n
(c) 2 n 1 (d) None of these


176. P10 is the index for time

(a) 1 on 0 (b) 0 on 1
(c) 1 on 1 (d) 0 on 0
177. If a sample of 500 eggs produces 25 rotten eggs arranges, then the estimates of SE of the
proportion of rotten eggs in the sample is
(a) 0.01 (b) 0.05
(c) 0.028 (d) 0.0593
178. The mode of the nos. 7, 7, 9, 7, 10, 15, 15, 15, 10 is
(a) 7 (b) 10
(c) 15 (d) 7 and 15
179. There are 11 trains plying between Delhi & Kanpur. The number of ways in which a person
can go from Delhi to Kanpur and return by a different train
(a) 121 (b) 100
180. If in a party every person gives a gifts to each other and total number of gift taken is 132.
The number of guests in the party is ________
(a) 11 (b) 12
(c) 13 (d) 14
181. The sum of certain numbers of terms of an A.P. series 6, -3, 0 . nth term is 225. The
number of terms is ________
(a) 16 (b) 15
(c) 14 (d) 13
182. If each item is reduced by 12, A.M. is ________
(a) Reduced by 12 (b) Increased by 12
(c) Unchanged (d) None of these
183. If x and y are perfectly related by 2x + 3y + 4 = 0 and SD of x is 6 then SD of y is
(a) 22 (b) 4
(c) 25 (d) 8.30
184. If f (x+1) = 2x + 7 then f ( 2) is ________
(a) 1 (b) 2
(c) 3 (d) 4
185. The roots of the equation 4x+1 + 41-x = 10 are ________
1 1
(a) , (b) 2, 2
2 2
(c) 1, 1 (d) None of these

186. An employer recruits experienced and fresh workmen for his firm under the condition that
he cannot employ more than 12 people. It can be related by the inequality
(a) x + y = 12 (b) x + y < 12
(c) x + y > 12 (d) None of these
187. There are 5 bags of wheat weighing on an average 102 kgs and another 8 bags weighing 98
kgs on an average. What is combined mean of 13 bags.
(a) 109.54 (b) 99.54
188. The standard deviation of 25, 32, 43, 53, 62, 59, 48, 31, 24, 33 is ________
(a) 13.23 (b) 12.33
189. A bag contains 5 white and 10 blackballs. Three balls are taken out at random. Find the
probability that all three balls drawn are black
(a) 16/91 (b) 42/91
(c) 24/91 (d) None of these
190. A card is drawn from a well shuffled pack of playing Cards. Find the probability that it is a
king or a Queen:
(a) 1/13 (b) 1/4
(c) 2/13 (d) 2/4
191. If x and y are related as 4x + 3y + 11 = 0 and mean deviation of x is 2.70. what is mean
deviation of y?
(a) 7.20 (b) 14.40
ax
192. x.e dx is
eax 1 eax
(a) x (b)
a a a
eax 1
(c) log x (d) x
a a
d
193. logx
dx
1
(a) 2 x log x
(b) 2x. log x

1 1
(c) log x
(d)
x
4
2
194. Evaluate (3x - 2)
2
dx
(a) 104 (b) 100

195. In how many ways can 7 persons be seated at a round table if 2 particular persons sit together
________
(a) 420 (b) 1440
196. Three numbers are in A.P. whose sum is 69 and the product of first two is 483. Numbers are
________
(a) 25, 23, 21 (b) 21, 23, 25
(c) 19, 22, 25 (d) None of these
197. The line joining (-1, 1) and (2, -2) and the line joining (1, 2) and (K, 3) are perpendicular to
each other for the value of K.
(a) 2 (b) 0
(c) 2 (d) None
198. A machine for which the useful life is estimated to be 5 years cost Rs. 5000. rate of depreciation
is 10% p.a. The scrap value at the end of its life is:
(a) 2952.45 (b) 2500.00
(c) 3000.00 (d) 2559.50
199. The sum of series 8, 4, 0 to 50 terms is ________
(a) 18900 (b) 9000
200. The number of subset of set {2, 4, 6} is ________
(a) 12 (b) 8


BOARD OF STUDIES
1. Consignment account is a
(a) Real account (b) Personal account
2. Bank overdraft has a
(a) Debit balance (b) Credit balance
(c) Negative balance (d) None of the above
3. Who is the acceptor of Bills of Exchange?
(a) Supplier (creditors) (b) Seller
(c) Customers (d) None of the three
4. Journal Proper records
(a) Bills receivables (b) Bills payables
(c) Cash payments (d) Opening entry
5. Inventories should be out of godown in the sequence in which they arrive is based on
(a) FIFO (b) LIFO
(c) HIFO (d) Weighted average
6. When adjusted purchase is shown in the debit column of the trial balance then
(a) Both opening and closing inventory appear in trial balance
(b) Opening inventory is shown in trial balance and not the closing inventory
(c) Closing inventory is shown in trial balance and not opening inventory
(d) Both opening and closing inventory do not appear in trial balance

7. Business unit is separate and distinct from the persons who supply capital to it is
based on __________
(a) Money measurement concept (b) Going concern concept
(c) Entity concept (d) Dual aspect concept
8. All the expenditures and receipts of revenue nature go to
(a) Trading A/c (b) Profit and Loss A/c
(c) Balance Sheet (d) Either to (a) or (b)
9. If two or more transactions of the same nature are journalized together having either the
debit or the credit account common then that journal entry is known as
(a) Compound journal entry (b) Separate journal entry
(c) Posting (d) None of the above
10. Following is not an example of external users
(a) Government (b) Management
(c) Investors (d) Suppliers
11. If effect of an error is cancelled by the effect of some other error, it is commonly known
as _____________
(a) Error of principle (b) Compensating errors
(c) Error of omission (d) Error of commission
12. General reserve at the time of retirement of a partner is transferred to_______
(a) Revaluation A/c (b) Memorandum Revaluation A/c
(c) Partners capital accounts (d) Profit & Loss Adjustment account
13. Interest on Partners capital is _________
(a) An expenditure (b) An appropriation
(c) A gain (d) None of the three
14. Noting charges are paid at the time of _____________ of the bill
(a) Retirement (b) Dishonour
(c) Renewal (d) None of the above
15. A ___________ is sent to a customer when he returns goods
(a) Debit note (b) Credit note
(c) Proforma Invoice (d) None of the above
16. Provision is
(a) An unknown liability but its amount and due date are indeterminate
(b) An unknown liability and its amount and due date are determinate
(c) A known liability and its amount and due date are determinate
(d) A known liability but its amount and due date are indeterminate

17. The left hand side of an account is known as _________ and the right hand side of an
account is known as ________
(a) Debt side; Credit side (b) Credit side; Debit side
(c) Liability; Asset (d) None of the three
18. Prepaid expenses refer to those expense which have been
(a) Paid but not incurred during the current accounting period
(b) Incurred but not paid during the current accounting period
(c) Incurred but not paid during the previous accounting period
(d) Paid but not incurred during the previous accounting period
19. Profit and loss of realization account is shared among the partners in _______ ratio
(a) Old profit sharing ratio (b) New profit sharing ratio
(c) Capital ratio (d) Equal ratio
20. P shows a profit of Rs. 7,00,000 for the year ended 31.3.08. The figure has been arrived
at after charging following against revenue:
(i) Purchase of Car on 28.3.08 for use in business Rs. 1,00,000 and treated as vehicle expenses.
(ii) Omitting to record unpaid electricity bills for Feb. and March, 2008 of Rs. 15,000
per month. The correct profit for the year ended 31st March, 2008 is
(a) Rs. 6,30,000 (b) Rs. 7,00,000
(c) Rs. 7,70,000 (d) Rs. 8,30,000
21. What would be treatment when plant and machinery is sold for Rs. 1,40,000 whose cost
is Rs. 1,00,000 and WDV is Rs. 40,000
(a) Revenue receipt of Rs. 1,00,000
(b) Capital receipt of Rs. 1,00,000
(c) Capital profit of Rs. 40,000 and revenue profit of Rs. 60,000
(d) Capital receipt of Rs. 40,000 and revenue receipt of Rs. 60,000
22. A, B and C are partners in the firm sharing profits and losses in 5:3:2 ratio. The firms
balance sheet as on 31.03.2010 shows the reserve balance of Rs. 25,000, profit of the
last year Rs. 50,000, Joint life policy of Rs. 10,00,000 and fixed assets of Rs. 12,00,000.
On 1st June, 2010 C died and on the same date assets were revalued. The executor of
the deceased partner will get along with the capital of C
(a) Share in the reserve account of the firm
(b) Proportionate share of profit upto the date of death
(c) Share in joint life policy
23. A bill of exchange matures on 16th July. It is a public holiday. Bill will mature on
(a) 17th July (b) 15th July
(c) 16th July (d) 18th July
24. Which of the method is not recommended by AS 2?
(a) FIFO (b) LIFO
(c) Weighted average (d) Specific identification method

25. Trial Balance (Total method)
Dr. Cr.
S.No. Name of the account (Rs.) (Rs.)
1. Cash account 11045 7865
2. Capital account 10000
3. Bank account 7000 100
4. Purchases account 725
5. Sales account 950
6. Krishna 375 375
7 Salary 5 10
8. Rent Account 150
19300 19300
Amount of total balance according to balance method will be:
(a) Rs.10,955 (b) Rs.10,900

(c) Rs.10,000 (d) Rs.10,500
26. A, B and C are partners in a partnership firm. During the financial year 2008-09 firm earned
profit accounting to Rs. 18,000. They distributed the profit in the ratio of 2:2:1. But there is
no partnership deed of the firm. Necessary adjustment will be:
Rs. Rs.
(a) P/L Adjustment A/c Dr. 18,000
To A 7,200
To B 7,200
To C 3,600
(b) P/L Adjustment A/c Dr. 18,000
To A 6,000
To B 6,000
To C 6,000
(c) A Dr. 1,200
B Dr. 1,200
To C 2,400
27. On Jan 1, 2001 the position of V. Mathur was as follows
Inventory in hand Rs. 2400; Bills payable Rs. 400; Cash at Bank Rs. 1800; Plant and
machinery Rs. 1000; Debtors Rs. 500; Creditors Rs. 800; Investments 2000; Loan from
Raja Ram Rs. 1500.
V. Mathurs capital on the above date will be
(a) Rs. 5000 (b) Rs. 4000


28. Goods worth Rs. 1000 taken by the proprietor for personal use should be credited to
(a) Sales A/c (b) Purchase A/c
(c) Expenses A/c (d) Proprietors personal A/c
29. The profit and loss account shows
(a) The financial position of the concern
(b) The degree of honesty with which accounting work has been done
(c) The capital invested in business
(d) Profit earned or loss suffered by the firm
30. The trial balance checks
(a) Arithmetical accuracy of books (b) The honesty of the book keeper
(c) The valuation of closing inventory (d) None of the three
31. Capital Reserves are credited out of
(a) Balance in P/L A/c (b) Capital profits
(c) Revenue profits (d) Provisions
32. In the beginning of 2009 person has goods worth Rs. 4000 in his godown. During the
year he purchased goods worth Rs. 20,000. His sales during the year were Rs. 30,000
and there were goods still lying in his godown worth Rs. 3000. Profit has been made
(a) Rs. 9,000 (b) Rs. 8,000
(c) Rs. 10,000 (d) Rs. 9,500
33. Total sales during the year amounted to Rs. 70,000; Cash sales Rs. 10,000; Balance of
trade receivables at the end of the year Rs. 25,000. Cash received from customers during
the year will be
(a) Rs. 35,000 (b) Rs. 30,000
(c) Rs. 37,000 (d) Rs. 32,000
34. Which of the following would not be included in current assets?
(a) 60 days Bills receivable (b) Short term deposit with bank
(c) Rs. 500 with cashier (d) Machinery purchased
35. Balance as per Pass Book is Rs. 2,430
Cheques paid but not yet credited Rs. 1,390
Bank Charges entered in pass book Rs. 260
Cheques issued but not presented for payment Rs. 1,710
Balance as per Cash Book will be
(a) Rs. 2,370 (b) Rs. 2,500
(c) Rs. 2,300 (d) Rs. 2,380

36. Overdraft as per Cash Book Rs. 6,340

Cheque deposited but not credited Rs. 2,360
Cheques issued but not presented for payment Rs. 2,368
Overdraft as per Pass Book will be
(a) Rs. 6,332 (b) Rs. 6,000
(c) Rs. 6,300 (d) Rs. 6,330
37. Following figures have been taken from the trial balance of a trader
Opening Inventory Rs. 14,500
Purchases Rs. 75,995
Carriage Inward Rs. 1,700
Wages Rs. 825
Sales Rs. 93,750
Goods sent on Consignment Rs. 20,000
Amount of profit will be
(a) Rs. 20730 (b) Rs. 20500
(c) Rs. 20200 (d) Rs. 21000
38. Select the false statement
(a) Sales of a Plant and Machinery is a revenue receipt
(b) Any amount which is unreasonably high need not be a capital expenditure
(c) Income tax of the sole proprietor paid is treated as drawing
(d) Bills Payable is a current liability
39. A trader purchased furniture on Jan 1, 2007 for Rs. 5,200. Its scrap value is 200 and life
10 years. Depreciate furniture according to fixed instalment method. Balance of furniture
a/c at the end of third year will be
(a) Rs.3,500 (b) Rs.3,700
(c) Rs.4,000 (d) Rs.3,400
40. A seven years lease has been purchased for a sum of Rs. 60,000 and it is proposed to depreciate
it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to
Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be
(a) Rs. 50,003.45 (b) Rs. 52,000
41. After preparing the trial balance the accountant find that the total of the credit side is short
by Rs. 1500. This difference will be -
(a) Credited to suspense account
(b) Debited to suspense account
(c) Adjusted to any of the debit balance a/c
(d) Adjusted to any of the credit balance a/c

42. On 01.12.09, X draws a bill on Y for 30 days after sight. The date of acceptance is 08.12.09.
The maturity date of the bill will be -
(a) 8.01.10 (b) 10.01.10
(c) 11.01.10 (d) 09.10.10
43. Capital introduced in the beginning by Ram Rs. 16,080; further capital introduced during
the year in the form of machinery Rs. 2000; personal expenses during the year
Drawings in cash Rs. 3,000
Life Insurance Premium Rs. 250
Closing capital Rs. 21,925
The amount of profit or loss for the year will be
(a) Profit Rs. 7,095 (b) Profit Rs. 7,085

(c) Loss Rs. 5,000 (d) Loss Rs. 6,000
44. The total of debit and credit side of Mr. Raja Rams Trial balance as on 31st March, 2010
were Rs. 20,000 and Rs. 10,000 respectively. The difference was transferred to suspense
A/c. On 4th April 2010, it was found that the total of sales book was carried forward as
5,000 instead of 4,000. The balance of suspense A/c after rectification of this error will
be -
(a) Rs.11,000 (b) Rs. 10,000
(c) Rs. 9,000 (d) Rs. 12,000
45. The total of Discount allowed column in the cash book for the month of September, 2009
amounting to Rs. 250 was not posted Rectifying entry for the same will be -
(a) Suspense A/c Dr 250; To Discount A/c 250
(b) Discount A/c Dr. 250; To Suspense A/c 250
(c) Discount A/c Dr. 250; To Customer A/c 250
46. Closing entry for transfer of Net profit Rs. 6,300 to capital A/c will be
(a) Capital A/c Dr. Rs. 6,300; To P/L A/c Rs. 6,300
(b) P/L A/c Dr. Rs. 6,300; To Capital A/c Rs. 6,300
(c) Trading A/c Dr. Rs. 6,300; to P/L A/c Rs. 6,300
47. Gross profit is the difference between
(a) Sales and purchases (b) Sales and cost of sales
(c) Sales and total expenses (d) None of the three
48. Credit balances in the ledger will be
(a) A revenue or an asset (b) An expense or on asset
(c) A revenue or a liability (d) None of the three

49. Miss Rakhi consigned 1,000 Radio sets costing Rs. 900 each to Miss Gita, her agent on
July 1, 2009. Miss Rakhi incurred the following expenses.
Carriage Freight Insurance
Rs. 650 Rs. 7,000 Rs. 3,250
Miss Gita received the delivery of 950 radio sets. 750 sets were sold for Rs. 9,00,000 and Miss
Gita incurred total expenses Rs. 13,000. Agents commission 6% on sales. Insurance company
admitted claim of Rs. 35,000. Consignment inventory was valued Rs. 1,84,391.
Consignment Profit will be -
(a) 1,52,036 (b) 1,52,000
(c) 1,50,000 (d) None of the three
50. Amount spent on Structural alterations under pressure of law is a
(c) Deferred revenue expenditure (d) Capital loss
51. Goodwill is to be calculated at one years purchase of the average of the last 3 years profit.
The profit of the first year was Rs. 6,000, second year twice the profit of the first year and
the third year one and half times of the profit of the second year goodwill amount will be -
(a) Rs.10,000 (b) Rs.12,000
(c) Rs.11,000 (d) Rs.13,000
1
52. A, B and C share the profits and losses in the ratio of 3:2:1. D is admitted. He gets in
6
share entirely from A. New ratio will be
1 1 1 1
(a) : : : (b) 3:1:1:1
3 3 6 6
(c) 2:2:2:1 (d) None of the three
53. A, B and C share profit and losses in the ratio of 3:2:1 upon admission of D. They agreed to
share 5:4:2:1 sacrificing ratio will be
(a) 1/12:NIL:NIL (b) NIL:1/12:NIL
(c) NIL: NIL:1/12 (d) None of the three
54. A, B and C entered into a joint venture with equal risks contributing Rs. 20,000,
Rs. 27,500 and Rs. 35,000 respectively. The amounts were banked in a joint account. Joint
Transactions were as follows:
Purchase of goods Rs. 66,600
Expenses on goods purchased Rs. 6,629
Total sales Rs. 89,000

C, who effected these transactions, was allowed 6% commission on sales. Profit on joint
venture will be -
(a) Rs. 10,431 (b) Rs. 10,000

(c) Rs. 11,000 (d) Rs. 12,000
55. Gopal was holding 100 shares of 10 each of a company on which he had paid Rs. 3 on
application and Rs. 2 allotment, but could not pay Rs. 2 on first call. Forfeited shares a/c will
be credited with
(a) Rs. 500 (b) Rs. 400
56. Consignment inventory will be recorded in the balance sheet of consignor on asset side
at:
(a) Invoice Value
(b) At invoice value less inventory reserve
(c) At lower than cost price
(d) At 10% lower than invoice value
57. Which of the following expense is not considered as part of cost of inventory?
(a) Packing, loading & insurance paid by consignor
(b) Inward consignment freight paid by consignee
(c) Transport charges up to godown paid by consignee
(d) Insurance Charges paid by consignee
58. X Ltd. purchased the business of Y Ltd. for Rs. 90,000 payable in fully paid shares of 10
each; shares were issued at a premium of 25%. Number of shares issued against purchased
(a) 6,000 shares (b) 7,200 shares
(c) 8,000 shares (d) 7,000 shares
59. A company on non-receipt of First Call money of Rs.2 per share and Final Call money of
Rs.3 per share from Rahul, debited Call-in-Arrears account by Rs. 2,000 and Rs.3,000
respectively. After due notice 1,000 shares of Rs.10 each were forfeited from Rahul. The
amount to be credited to First Call Account at the time of entry for forfeiture will be
(a) Rs.2,000 (b) Rs.3,000
(c) Nil (d) Rs.10,000
60. X Ltd. purchased assets of Y Ltd. as under
Plant and machinery of Rs. 20,00,000 at Rs. 18,00,000; Land and building of Rs. 30,00,000
at Rs. 42,00,000 for purchase consideration of Rs. 55,00,000 and paid Rs. 10,00,000 in
cash and remaining by issue of 8% debentures of 100 each at a premium of 20%. No. of
debentures issued to vendors will be
(a) 37,000 (b) 37,500
(c) 35,500 (d) 38,000


61. Contracts may be classified on the basis of their validity, formation or performance.
Contracts classified on the basis of formation are of the following types:
(a) Express contracts (b) Implied contracts
(c) Quasi contracts (d) All of the above
62. A performed some services to B at his desire. After a week, B promises to compensate
A for the work done by him. This is said to be :
(a) Past consideration (b) Future consideration
(c) Present consideration (d) None of the above
63. Generally, the following damages are not recoverable?
(a) Ordinary damages (b) Special damages
(c) Remote damages (d) Nominal damages
64. A contract is discharged by novation which means the
(a) cancellation of the existing contract
(b) change in one or more terms of the contract
(c) Substitution of existing contract for a new one
(d) None of these
65. Silence amounts to fraud. When
(a) it is the duty of a person to speak
(b) the persons silence is equivalent to speech
(c) it is likely to affect the willingness of a person to enter into a contract
(d) Both (a) or (b)
66. An offer may lapse by:
(a) Revocation (b) Counter offer
(c) Rejection of offer by offeree (d) All of these
67. In case of illegal agreements, the collateral agreements are:
(a) Valid (b) Void
(c) Void able (d) Any of these
68. Which of the following is false? An acceptance:
(a) Must be communicated
(b) Must be absolute and unconditional
(c) Must be accepted by a person having authority to accept
(d) May be presumed from silence of offeree
69. Which of the following statements is not true about minors position in a firm?
(a) He cannot become a partner in an existing firm

(b) He can become a partner in an existing firm
(c) He can be admitted only to the benefits of any existing a major
(d) He can become partner on becoming a major
70. A contract for a sale of goods where property would pass to the buyer on payment of total
price would be;
(a) Sale (b) Agreement to sell
(c) hire-purchase contract (d) Sale on approval
71. The Sale of Goods Act, 1930 deals with the
(a) movable goods only
(b) immovable goods only
(c) both movable and immovable goods
(d) All goods except ornaments
72. Selection of goods with the intention of using them in performance of the contract and with
the mutual consent of the seller and the buyer is known as
(a) Distribution (b) Appropriation
(c) amortization (d) Storage
73. Mercantile Agent is having an authority to
(a) Sell and consign goods (b) Raise money on the security of goods
(c) Sell or buy goods (d) Any of the above
74. Which of the following is not a form of delivery?
(a) Constructive delivery (b) Structured delivery
(c) Actual delivery (d) Symbolic delivery
75. Under Sale of goods Act, 1930 the terms goods means every kind of the movable
property and it includes
(a) Stock and share (b) Growing crops, grass
(c) Both (a) and (b) (d) None of the above
76. Undue influence involves:
(a) Threat
(b) Mental pressure
(c) Physical force
(d) Both (a) and (c)
77. Which of the following is not the right of a partner i.e, which he cannot claim as a matter
of right?
(a) Right to take part in business
(b) Right to have access to account books

(c) Right to share profits

(d) Right to receive remuneration
78. On which of the following grounds, a partner may apply to the court for dissolution of the
firm?
(a) Insanity of a partner (b) Misconduct of a partner
(c) Perpetual losses in business (d) All of the above
79. Which of the following is not disability of an unregistered firm?
(a) It can not file a suit against third parties
(b) Its partners cannot file a suit against a firm
(c) It can claim a set-off exceeding Rs. 100
(d) It can be sued by a third party
80. A Hindu widow borrowed money from a lender for the purpose of filling a suit for
maintenance. The lender advanced money at 100 percent rate of interest. The act of the
money lender is induced by
(a) coercion (b) Undue Influence
81. A mistake as to a law not in force in India has the same effect as ________
(a) Mistake of fact (b) Mistake of India law
(c) fraud (d) misrepresentation
82. A stipulation in a contract of sale of goods whose violation by seller gives a right of rescission
to buyer, is called ________
(a) Guarantee (b) warranty
(c) condition (d) term
83. The communication of an acceptance is complete as against acceptor ________
(a) When it is put in course of transmission to him so as to be out of reach of the acceptor
(b) When it comes to the knowledge of the proposer
(c) When both the proposer and acceptor declare the acceptance
(d) When the acceptor accepts his acceptance in court of law
84. Every person attains majority an completion of ________ years of age
(a) 21 years (b) 18 years
(c) 16 years (d) 20 years
85. Doctrine of Caveat Emptor means ________
(a) let the seller beware (b) let the buyer beware
(c) let the creditor beware (d) None of the above

86. A agrees to purchase from B, 18 carat gold thinking it to be of pure gold. This contract
between A and B is :
(a) Valid (b) Voidable
(c) Void (d) Illegal
87. Discharge by mutual agreement may involve ________
(a) Novation (b) Recission
(c) Alteration (d) All of the above
88. Where the goods are delivered to a carrier or wharfinger for the purpose of transmission to
the buyer, the delivery is ________
(a) Invalid and ineffective (b) Valid and effective
(c) Conditional (d) None of these
89. ________ consideration is no consideration in England.
(a) Past (b) Present
(c) Future (d) Past and present
90. Speculative transactions are :
(a) Void (b) Unlawful
91. A contract for the sale of future goods is ________
(a) Sale (b) Agreement to sell
(c) Void (d) Hire-purchase contract
92. Right of an unpaid seller include ________
(a) Right of lien (b) Right in stoppage in transit
(c) Right of re-sale (d) All of the above
93. A stipulation in a contract of sale of goods whose violation by seller gives a right of
damages only to buyer, is called ________
(a) Guarantee (b) Warranty
(c) Condition (d) Term
94. Total substitution of new contract in place of the old contract takes place in case of
________
95. Non-registration of a partnership firm ________
(a) Is a criminal offence
(b) Renders the partnership illegal

(c) Is compulsory to activate the partnership

(d) Is not compulsory but desirable
96. A partner may be expelled from the firm on the fulfillment of the condition that the
expulsion power is exercised - ________
(a) As given by express contract (b) By majority of partners
(c) In absolute good faith (d) All of the above
97. Right of lien is to ________
(a) Retain possession (b) Regain possession
(c) Remove possession (d) Recharge possession
98. Partner by holding out is also known as ________
(a) Active Partner (b) Dormant partner
(c) Partner by estoppel (d) Partner by stoppage
99. Under which circumstances the unpaid seller can exercise right of re-sale
(a) when the goods are of perishable nature
(b) when he gives notice to the buyer
(c) When he gives notice to the buyer of his intention to re-sale and the buyer does not within
reasonable time pay the price
100. A timber merchant agreed to supply best teak at a certain agreed price to a builder. Later
the merchant supplied timber, which was identified as ordinary class of timber and demanded
the payment from the builder which of the following statements is/are true?
(a) Builder can reject the goods can claim damages
(b) Builder has accept the goods
(c) Builder has to pay the price by taking delivery of teak wood
(d) Timber merchant cannot plead the doctrine of caveat emptor
101. Which of the following is not an essential condition of pure competition?

(a) Large number of buyers and sellers (b) Homogeneous product
(c) Freedom of entry (d) Absence of transport cost
102. Which of the following is not a characteristic of a Price taker?
(a) TR = P x Q
(b) AR = Price
(c) Negatively sloped demand curve
(d) Marginal Revenue = Price

103. Which of the following is not a condition of perfect competition ?
(a) A large number of firms
(b) Perfect mobility of factors
(c) Informative advertising to ensure that consumers have good information
(d) Freedom of entry and exit into and out of the market
104. All of the following are characteristics of a monopoly except
(a) there is a single firm (b) the firm is a price taker
(c) the firm produces a unique product (d) the existence of some advertising
105. A monopolist is able to maximize his profits when:
(a) his output is maximum
(b) he charges a high price
(c) his average cost is minimum
(d) his marginal cost is equal to marginal revenue.
106. Which is the other name that is given to the long run average cost curve?
(a) profit curve (b) planning curve
(c) demand curve (d) indifference curve
107. Price discrimination will be profitable only if the elasticity of demand in different market in
which the total market has been divided is:
(a) uniform (b) different
(c) less (d) zero
108. The kinked demand curve model of oligopoly assumes that:
(a) response to a price increase is less than the response to a price decrease
(b) response to a price increase is more than the response to a price decrease
(c) elasticity of demand is constant regardless of whether price increases or decreases
(d) elasticity of demand is perfectly elastic if price increases and perfectly inelastic if price
decreases
109. Agricultural goods markets depict characteristics close to:
(a) Perfect competition (b) Oligopoly
(c) Monopoly (d) Monopolistic competition
110. Which of the statements is correct?
(a) The tertiary sector contributes the maximum to the GDP
(b) India is a basically a socialist economy
(c) The distribution of income and wealth in India is quite equitable

111. NABARD is the apex bank for ___________ credit in India.

(a) real estate (b) small scale industries
(c) agriculture (d) none of the above
112. The share of agriculture in Indias national income has __________ over the years.
(a) remained constant (b) decreased
(c) increased (d) first decreased and then increased
113. Which is of the following is incorrect?
(a) Special schemes have been started to promote agro-products
(b) India has been a big importer of food grains especially since 1990s
(c) High yielding varieties programme has resulted in improvement in production and
productivity of food grains in India
114. Agriculture sector faces the problem of:
(a) slow and uneven growth (b) inadequate and incomplete land reforms
(c) inadequate finance (d) all of the above
115. The Eleventh plan aims at achieving a growth rate of ________ in the industrial sector.
(c) 8.5 per cent (d) 6 per cent
(a) The industrial pattern on the eve of independence was quite balanced
(b) During the planning period the structure of Indian industry has shifted in favour of basic
and capital goods and intermediate goods
(c) Most of the big industrial units in India are sick
(a) increased (b) decreased

(c) remained constant (d) remained above 50 per cent
118. India has the _____________ largest scientific and technical manpower in the world
(a) Fifth (b) Tenth
(c) Eighth (d) Third
119. Demand for final consumption arises in:
(a) household sector only
(b) government sector only
(c) both household and government sectors
(d) neither household nor government sectors

120. Which of the following is an economic activity ?
(a) Playing friendly cricket match
(b) Teaching ones own daughter at home
(c) Manufacturing chairs at subsidised rate
(d) A housewife doing household duties
121. Per capita national income means
(a) NNP / population (b) Total capital / population
(c) Population / NNP (d) None of the above
122. Indias rank in world Population comes after _____
(a) U.S.A. (b) China
(c) Australia (d) Canada
123. In which state is the sex ratio most favourable to women?
(a) Andhra Pradesh (b) Uttar Pradesh
(c) Kerala (d) Karnataka
124. Indias present population is:
(a) more than that of China (b) less than that of China
(c) less than that of Pakistan (d) less than that of England
125. NTPC stands for:
(a) National Thermal Power Corporation
(b) National Tidal Power Corporation
(c) National Theological Power Corporation
(d) National Talent and Potential Corporation
126. Which of the following is correct in relation to banks in the post reform period?
(a) All banks have been privatised.
(b) All banks have been nationalised.
(c) NPA as a percentage of gross advances have shown a falling trend.
(d) State Bank of India replaced RBI as lender of the last resort.
127. _______________ refers to disposal of public sectors units in equity in the market.
(a) Globalisation (b) Privatisation
(c) Disinvestment (d) Liberalisation
128. Population per bank in India is : (2013)
(a) around 5000 (b) around 20000
(c) around 12000 (d) around 45000

129. Commercial banks suffer from :

(a) regional imbalances (b) increasing overdues
(c) lower inefficiency (d) all the above
130. Money includes
(a) currencies and demand deposits (b) bonds, government securities
(c) equity shares (d) all of the above
131. M1 in the money stock in India refers to:
(a) post office saving deposits
(b) total post office deposits
(c) currency plus demand deposits plus other deposits with RBI
(d) time deposits with banks
132. Which of the following is not a characteristic of land?
(a) Its supply for the economy is limited
(b) It is immobile
(c) Its usefullness depends on human efforts
(d) It is produced by our forefathers
133. Which of the following statements is true ?
(a) Accumulation of capital depends solely on income
(b) Savings can also be affected by the state
(c) External economies go with size and internal economies with location
(d) The supply curve of labour is an upward slopping curve
134. The marginal product of a variable input is best described as:
(a) total product divided by the number of units of variable input
(b) the additional output resulting from a one unit increase in the variable input
(c) The additional output resulting from a one unit increase in both the variable and fixed
inputs
(d) The ratio of the amount of the variable input that is being used to the amount of the fixed
input that is being used
135. Diminishing marginal returns imply
(a) decreasing average variable costs (b) decreasing marginal costs
(c) increasing marginal costs (d) decreasing average fixed costs
136. To economists, the main difference between the short run and the long run is that:
(a) in the short run all inputs are fixed, while in the long run all inputs are variable
(b) in the short run the firm varies all of its inputs to find the least cost combination of inputs

(c) in the short-run, at least one of the firms input levels is fixed
(d) in the long run, the firm is making a constrained decision about how to use existing plant
and equipment efficiently
137. Which cost increases continuously with the increase in production?
(a) Average cost (b) Marginal cost
(c) Fixed cost (d) Variable cost
138. In the short run, when the output of firm increases, its average fixed cost:
(a) increases (b) decreases
(c) remains constant (d) first declines and then rises
139. Which of the following is an example of an explicit cost?
(a) The wages a proprietor could have made by working as an employee of a large firm
(b) The income that could have been earned in alternative uses by the resources owned by the firm
(c) The payment of wages by the firm
(d) The normal profit earned by a firm
140. Marginal cost is defined as :
(a) the change in total cost due to one unit change in output
(b) total cost divided by output
(c) the change in output due to a one unit change in an input
(d) total product divided by the quantity of input
141. Which of the following is not a determinant of the firms cost function?
(a) The production function (b) The price of labour
(c) Taxes (d) The price of the firms output
142. A firms average total cost is Rs. 300 at 5 units of output and Rs. 320 at 6 units of output
the marginal cost of producing the 6th unit is:
(a) Rs. 20 (b) Rs. 120
(c) Rs. 320 (d) Rs. 420
143. Which of the following is a function of an entrepreneur?
(a) Initiating a business enterprise (b) Risk bearing
(c) Innovating (d) All of the above
144. The law of scarcity
(a) does not apply to rich developed countries
(b) applies only to the less developed countries
(c) implies that consumers wants will be satisfied in a socialistic system
(d) implies that consumers wants will never be completely satisfied

145. Who expressed the view that economics is neutral between end?
(a) Robbins (b) Marshall
(c) Pigou (d) Adam Smith
146. An example of positive economic analysis would be:
(a) an analysis of the relationship between the price of food and the quantity purchased
(b) determining how much income each person should be granted
(c) determining the fair price for food
(d) deciding how to distribute the output of the economy
147. Which of the following does not suggest a macro approach for India ?
(a) Determining the GNP of India
(b) Identifying the causes of inflation in India
(c) Finding the causes of failure of X and Co.
(d) Analyse the causes of failure of industry in providing large scale employment
148 What is one of the future consequences of an increase in the current level of consumption in
the India?
(a) Slower economic growth in the future
(b) Greater economic growth in the future
(c) No change in our economic growth rate
(d) Greater capital accumulation in the future
149. Capital intensive technique would get chosen in a :
(a) labour surplus economy (b) capital surplus economy
(c) developed economy (d) developing economy
150. Consider the following and decide which if any economy is without scarcity:
(a) The pre-independent Indian Economy, where most people were farmers
(b) A mythical economy where everybody is a billionaire
(c) Any economy where income is distributed equally among its people
151. Representation of data is done by

(a) Diagrams (b) Pictures
(c) Charts (d) All these
152. Ogive is a
(a) Line diagram (b) Bar diagram

153. Which result is true?
(a) H.M. < G.M. < A.M. (b) H.M. > G.M. > A.M.
(c) H.M. < G.M. < A.M. (d) G.M. > A.M. > H.M.
154. The range of 12, 15, 17, 9, 21, 25
(a) 3 (b) 16
(c) 25 (d) 12
155. Median is affected by extreme values
(a) True (b) False
156. In a Scatter diagram, if the plotted points lie on a single line, then the correlation is:
(a) Perfect positive (b) Perfect negative
(c) Both (a) and (b) (d) Either (a) or (b)
157. For any two events A and B
(a) P (A B) < P (A) + P (B) (b) P (A B) > P(A) + P (B)
(c) P (A B) < P(A) + P (B) (d) P (A B) > P(A) + P (B)
158. The mode and mean of a normal distribution
(a) May be equal (b) May be different
(c) Are always equal (d) (a) or (b)
159. A statistic is described as
(a) A function of sample observation (b) A function of population units
(c) A characteristic of a population (d) A part of population
160. The index number is not a special type of average
(a) False (b) True
161. Fishers ideal formula does not satisfy _______ test.
(a) Unit test (b) Circular test
(c) Time reversal test (d) None of these
162. Under Algebric method we get _____ Linear equations
(a) Two (b) Three
(c) One (d) (d) None of these
163. 24, 32, ___________, 40 are in proportion.
(a) 25 (b) 20

164. log3 log3 27 is equal to _______

(a) 0 (b) -1
(c) 3 (d) 1
165. If _______________, the roots are imaginary .
(a) b2 4 ac = 0 (b) b2 4 ac > 0
(c) b2 4 ac < 0 (d) b2 4 ac > 0
166. The letters of the words ALLAHABAD and INDIA are arranged in all possible ways. The
ratio of the number of these arrangement is _________________
(a) 9:5 (b) 126:1
(c) 1:1 (d) 2:5
167. The 13th term of series 93, 90, 87 .. nth term is ________
(a) 57 (b) 54
(c) 50 (d) 54
168. Rs. 3,52,000 will produce Rs. 28,600 interest in ___________ years at 2.5% p.a. simple interest.
(a) 2 years 2 months (b) 3 years 3 months
(c) 4 years 4 months (d) 5 years 5 months
169. The mean of binomial distribution with parameters n and p is ________
(a) n(1-p) (b) np(1-p)
(c) np (d) np( 1 p )
170. If P(A) = 6/9 then the odds against the event is ________
(a) 3/9 (b) 6/3
(c) 3/6 (d) 3/15
x2 - 9 3 - x -1
171. lim
x 2 x - 3 is equal to 2- x
(a) (b) 2
(c) 0 (d) does not exist
172. The derivative of y = log xx is
(a) 1/x (b) log x
(c) 1/x. log x (d) 1 + log x

dx
173. e +1 is equal to
x
(a) log (1+e x) + K (b) (ex+1)2 + K

1
(c) K (d) None
1 ex
174. If f(x) = 2x + 3 then f(2x) 2f(x) + 3 is equal to

(a) 1 (b) 0
1 1
175. Which term of series 3, 3 , 1, ... nth term is ?
3 243
(a) 13 (b) 14
(c) 15 (d) 12
176. Fishers ideal idex no. is equal to
(a) Laspeyses index Pasches Index (b) Lasperyre' s Index Pasche' s Index
P q 0 1
(c) (d) None of these
P q 1 1
177. A sample of 100 gave a mean of 7.4 kg and a standard deviation of 1.2 kg. Find 95% confidence
limits for population mean.
(a) 7.164 and 7.635 (b) 5.164 and 5.635
(c) 4.001 and 5.001 (d) None of these
178. A dice is tossed thrice, if getting a four is considered a success, find the variance of
probability distribution of number of success.
(a) 1/2 (b) 1/4
(c) 5/12 (d) 7/12
179. A pair of dice is rolled. If the sum on the dice is 9. Find the probability that one of dice
showed 3.
(a) 1/9 (b) 1/4
(c) 1/2 (d) 1
180. The two regression lines obtained from certain data were y = x + 5 and 16 x = 9y 94.
Find the variance of x if variance of y is 16.
(a) 4/16 (b) 9
(c) 1 (d) 5/16

n
181. If P13 : n +1 P12 = 3 :4 then value of n is
(a) 15 (b) 14
(c) 13 (d) 12
182. In a group of 23 children 10 drink tea but not coffee and 15 like tea. The number of children
drinking coffee but not tea is
(a) 6 (b) 7
(c) 8 (d) 9
183. In a G.P. series the product of first three term is 729/ 8. The middle term is
(a) 3/2 (b) 9/2
(c) 2/9 (d) None of these
184. In how many ways 5 physics, 3 chemistry and 3 maths books be arranged keeping the books
of the same subject together.
(a) 5! X 3! X 3! (b) 5 P3
(c) 5! X 3! (d) 5! X 3! X 3! X 3!
185. If a loan of Rs. 50,000 is paid back in equal instalments for 20 years and 10% interest on
balance loan. What will be equal instalment .
(a) 5872.98 (b) 5000.00
186. The lines x y 3 = 0, 3x 2y 5 = 0 and 4x 3y 20 = 0 are
(a) concurrent (b) Not concurrent
(c) Parallel to each other (d) Perpendicular to each other
187. Solving equation 3x2 2x 16 = 0 we get root as
(a) 2, 8/3 (b) 2, 3/8
188. If a number of which the half is greater than 1/10th of number by 20 then the number is
(a) 50 (b) 40
189. Sum of three numbers in A.P. is 12 and the sum of their cube is 408. The numbers are
(a) 3, 4, 5 (b) 1, 4, 7
190. The number of subset of a set containing n element is:
(a) 2n (b) 2n
(c) 2-n (d) None of these

191. Wages of 8 workers expressed in Rs. as follows 80, 96, 51, 72, 67, 50, 70, find Coefficient of
range?
(a) 30.5 (b) 35.3
(c) 31.00 (d) 31.51
px
192. e dx is equal to
epx
(a) x
e +c (b) c
p
(c) log x + c (d) None of these
3
3
193. Evaluate (x
-3
+ x)dx
(a) 0 (b) 3
(c) 3 (d) 1
194 If Arithmetic Mean and coefficient of variation of x are 5 and 20 respectively. What is the
variance of (15-2x)?
(a) 16 (b) 2
(c) 64 (d) 32
dy
195. If y = ex e-x then - y 2 + 4 is equal to
dx
(a) 1 (b) -1
196. 6 seats of articled clerks are vacant in a Chartered Accountant firm. How many different
batches of candidates can be chosen out of 10 candidates if one candidate is always selected.
(a) 124 (b) 125
197. The A.M. between two numbers is 34 and their G.M. is 16, the numbers are ?
(a) 4, 64 (b) 4, 32
(c) 32, 64 (d) None of these
198. For a group of 8 students the sum of squares of differences in ranks for Accounts and
Economics marks was found to be 50. What is the rank correlation coefficient.
(a) 0.50 (b) 0.40
(c) 0.30 (d) 0.20

199. A sum of money triples itself in 20 years. Using Simple Interest calculate number of
years it would double itself.
(a) 25 years (b) 15 years
(c) 10 years (d) None of these
200. The value of (logba logcb logac)5 is equal to
(a) 5 (b) 0

BOARD OF STUDIES
1. Commission received in advance account has a

(a) Credit balance (b) Debit balance
(c) Negative balance (d) None of the above
2. Insurance unexpired account is a
(a) Personal account (b) Real account
3. On March 31, 2010 Narain Enterprises purchased a loader from Laxmi Motors for Rs.
1,75,000 which is shown in the balance sheet as on 31st March, 2010. This is -
(a) An event (b) A transaction
(c) A transaction as well as an event (d) Neither a transaction nor an event
4. Out of the following at which point the treatment of Sales and Consignment is same:
(a) Ownership transfer (b) Money received
(c) Stock outflow (d) Risk
5. What is the order in which the accounting transactions and events are recorded in the books?
(a) Journal, subsidiary books, P/L A/c and Ledger
(b) Ledger, Journal, Balance Sheet and Profit and Loss A/c
(c) Journal, Ledger P/L A/c and Balance Sheet
(d) P/L A/c, Ledger and Balance Sheet
6. Withdrawal column of the Pass Book showed a wrong entry of Rs. 112. When the balance
as per Cash Book is the starting point.
(a) Rs 112 to be added (b) Rs 112 to be Subtracted
(c) No adjustment is required (d) None of these

7. B/R is a
(a) Current asset (b) Fixed asset
(c) Fictitious asset (d) Intangible asset
8. Which of the following account will have debit balance?
(a) Reserve for doubtful debts account
(b) Outstanding wages
(c) Capital account (Machinery brought in business)
(d) Loan to contractor
9. Which of the following error is an error of principle?
(a) Wages paid to Ram has been debited to his account
(b) The total of purchase journal has not been posted to purchase A/c
(c) Sales to X Rs. 20, posted to his A/c as Rs. 2
(d) Furniture purchased on credit from Nigam for Rs. 300 posted to Machinery Account
10. A bill has been drawn on 26.02.2010 payable after 90 days. The maturity date of the bill will
be -
(a) 30.05.2010 (b) 29.05.2010
(c) 28.05.2010 (d) 27.05.2010
11. Balance of goods sent on consignment account is transferred to -
(a) Profit and Loss Account (b) Trading account
(c) P/L appropriation account (d) None of the three
12. Memorandum joint venture account is prepared
(a) When separate set of joint venture books is prepared
(b) When each co-venture keeps records of all the joint venture transactions himself
(c) When each co-venture keeps records of their own joint venture transactions
13. If a reliable estimate of probable outflow of resources to settle a present obligation cannot
be made, it is-
(a) To be recognised as liability (b) To be recognised as provision
(c) To be disclosed as a contingent liability (d) None of these
14. The party who sends the goods for sale on fixed commission basis is
(a) Consignee (b) Consignor
(c) Drawee (d) Drawer
15. If the incoming partner brings any additional amount in cash other than his capital
contribution, then it is termed as
(a) Capital (b) Reserves
(c) Goodwill (d) Premium for goodwill

16. Discounting, endorsement and collection of bills of exchange is made by
(a) Drawer (b) Drawee
(c) Bank (d) Supplier (credited)
17. Sales returns appearing in the trial balance are deducted from
(a) Capital (b) Sales
(c) Purchases (d) None of the three
18. Drawings are deducted from
(a) Sales (b) Purchases
(c) Expenses (d) Capital
19. The trial balance of M/s Narain Manufacturers shows closing inventory of Rs. 30,000. It
will be recorded in
(a) Trading account
(b) Profit and Loss Account
(c) Profit and Loss appropriation A/c
(d) Balance Sheet
20. Purchase of fixed assets on credit basis is recorded in
(a) Purchase Book (b) Cash Book
(c) Journal Proper (d) None of the above
21. Securities premium account should not be used for which of the following purposes
(a) Declaring dividend (b) Issue of bonus shares
(c) Purchase of Securities (d) Payment of Commission on debentres
22. A places an order to B for supply of certain goods yet to be manufactured. On receipt of
order B purchases raw material, employs workers, produces the goods and delivers them to
A. In this case, sale will be presumed to have been made at the time of
(a) Receipt of order (b) Production of goods
(c) Delivery of goods (d) Purchase of raw material
23. Ramesh drew a 45 days bill on Komal on 25th Jan., 2011. The bill falls due on
(a) March 14 (b) Feb. 28
(c) March 10 (d) None of the three
24. Birbal drew a three month bill on Satyapal for Rs. 5,000. On due date Satyapal approached
Birbal to renew the bill for another month @ 12% p.a. Amount of the new bill will be
(a) Rs. 5,000 (b) Rs. 5,050

25. Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2010. On 13.03.2010,
Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering the year of 360
days, rebate amount will be -
(a) Rs. 150 (b) Rs. 180
26. Consignment Account
To Goods sent on consignment 1,00,000 By Consignee A/c (Sales) 1,50,000
(at invoice price)
To Consignees A/c 40,000 By Inventory at Invoice 10,000
(indirect expenses) price
To Profit 20,000
1,60,000 1,60,000
Consignor charged 25% profit on cost while sending the goods on consignment. Rectify
the above A/c. Correct profit on consignment will be
(a) Rs. 38,000 (b) Rs. 35,000
(c) Rs. 30,000 (d) Rs. 40,000
27. X consigned 100 packets of cosmetics each costing Rs. 300 to his agent at Bareilly. He paid
Rs. 500 towards freight and insurance. 15 packets were destroyed in the way. Consignee
took delivery of the remaining packets and spent Rs. 700 as godown rent, Rs. 1,000 as clearing
charges and Rs. 300 as carriage inwards. Cost of damage will be
(a) Rs. 4,500 (b) Rs. 4,575
28. X consigned 100 packets of cosmetics each costing Rs. 300 to his agent at Bareilly. He paid
Rs. 500 towards freight and insurance. 15 packets were destroyed in the way. Consignee
took delivery of the remaining packets and spent Rs. 700 as godown rent, Rs. 1,000 as clearing
charges. The agent sells away 70 packets. Inventory amount will be
(a) Rs. 4,500 (b) Rs. 4,751

29. ELDER and LARGE enter into a joint venture sharing profits and losses equally. ELDER
supplied goods to the value of Rs. 2,500 and incurred expenses of Rs. 200. LARGE supplied
goods to the value of Rs. 2,000 and his expenses amounted to Rs. 150. LARGE sold the entire
lot of goods on behalf of the joint venture and realized Rs. 6,000. LARGE was entitled to a
commission of 5% on sales. Profit on the venture
(a) Rs. 850 (b) Rs. 800
(c) Rs. 900 (d) Rs. 1,000

30. Hardcore Computers Ltd. issued to public 15,000 shares of Rs. 10 each at a premium of
Rs. 2. Applications were received for 10,000 shares. The amount payable was as follows:
On application Rs. 3 per share
On allotment Rs. 4 per share (including premium)
On first and final call Rs. 5 per share
All sums were duly received by the company except the following:
Mr. Perfect holder of 100 shares did not pay allotment and call money. Mr. Right holder of
200 shares did not pay call money. The company forfeited all the shares of Mr. Perfect. Share
Capital a/c will be debited by -
(a) Rs. 1,000 (b) Rs. 900
31. A and B are doing business separately as building contractors. They undertook jointly to
construct a building for a newly started joint stock company for a contract price of
Rs. 2,00,000. A Bank A/c is opened in their joint names; A depositing Rs. 50,000 and B
Rs. 30,000. They will share profits and losses in ratio of 2/3 and 1/3 respectively. Their
transactions were as follows:
Paid wages Rs. 60,000
Brought materials Rs. 1,62,000
Contract was completed and the price was duly received. B took inventory of materials
for the Rs. 6,000. Profit or loss on joint venture will be
(a) Profit Rs. 8,000 (b) Loss Rs. 16,000

(c) Profit Rs. 10,000 (d) Loss Rs.15,000
32. J and R are equal partners U is admitted as a partner for share of profits but is unable to
contribute premium for goodwill in cash amounting to Rs. 8,000 and so it is decided to raise
a loan A/c in the name of U. Journal entry will be
(a) Us loan A/c Dr. 8,000
To J 8,000
(b) Us loan A/c Dr. 4,000
To R 4,000
(c) Us Loan A/c Dr. 8,000
To J 4,000
To R 4,000
33. Amit, Rohit and Sumit are partners sharing profits and losses in the ratio of 5:4:3. Sumit
retires and if Amit and Rohit shares profits of Sumit in 4:3, then new profit sharing ratio
will be
(a) 4:3 (b) 47:37
(c) 5:4 (d) 5:3

34. Rachna and Sapna are partners sharing profits equally. They admitted Ashana for 1/3rd
share in the firm. The new profit sharing ratio will be
(a) 3:2:1 (b) 2:2:1
(c) 1:1:1 (d) Cannot be calculated
35. Find the goodwill of the firm using capitalization method from the following information:
Total capital employed in the firm Rs. 80,00,000
Reasonable rate of return 15%
Profits for the year Rs. 12,00,000
(a) Rs. 68,00,000 (b) Rs. 12,00,000
(c) Rs. 11,88,000 (d) Nil
36. Following figures have been taken from the trial balance of a trader
Cost of goods sold Rs. 30,000
Sales Rs. 40,000
Closing inventory Rs. 5,000
The amount of profit will be
(a) Rs. 10,000 (b) Rs. 15,000
37. Bank overdraft as per Cash Book Rs. 13,500
Cheque deposited but not credited Rs. 3,000
Cheque issued but not presented Rs. 6,000
Overdraft as per bank statement will be
(a) Rs. 10,500 (b) Rs. 10,000

38. Trade payables for goods amounting to Rs. 50,000 are not responding during the last
five years and payment for the same may not be made by the concern. Journal entry will
be
(a) Suppliers (creditors) A/c Dr. 50,000
To P/L A/c 50,000
(b) P/L A/c Dr. 50,000
To Suppliers (creditors) 50,000
(c) Suppliers (creditors) A/c Dr. 50,000
To Cash A/c 50,000
39. Net salary paid to employees Rs. 45,000 in cash after deducting income tax
Rs. 1,000, professional tax Rs. 200, employees provident fund Rs. 2,000, staff welfare fund
Rs. 100 and recovery of loan Rs. 1,700. Salary A/c will be debited with -
(a) Rs. 50,000 (b) Rs. 45,000

40. Dividend received (net) Rs. 9200 for which tax deducted at source is Rs. 800. Dividend
A/c will be credited with -
(a) Rs. 10,000 (b) Rs. 9,200
41. Good purchased on credit during last year worth Rs. 60,000 were not recorded in the books
of a partnership firm namely ABC and Co. whose profit is shared equally by A, B and C, but
the said amount was included in last years closing inventory figure. Adjusting entry will
be
(a) Suppliers (creditors) A/c Dr. 60,000
To A 60,000
(b) Suppliers (creditors) A/c Dr. 60,000
To A 30,000
To B 30,000
(c) As Capital Dr. 20,000
Bs Capital Dr. 20,000
Cs Capital Dr. 20,000
To Suppliers (creditors) 60,000
42. Dismantling and demolition charges is a _______
(c) Deferred revenue expenditure (d) None of the three
43. There was an error in the trial balance. Difference was put to Suspense A/c. Later on, it was
found that the opening inventory of Rs. 1,080 was brought into the books as Rs. 1,800.
Rectifying entry will be
(a) Suspense A/c Dr. 720
To Opening inventory 720
(b) Opening inventory A/c Dr. 720
To Suspense A/c 720
(c) Trading A/c Dr. 720
To Opening inventory 720
(d) None of three

44. The profits for the last four years are given as follows
Year Rs.
2006 40,000
2007 50,000
2008 60,000
2009 50,000
The value of goodwill on the basis of 3 years purchase of average profits based on the last
four years will be
(a) Rs. 1,00,000 (b) Rs. 1,50,000

45. G. Ltd. acquired assets worth Rs. 1,50,000 from AB Ltd. by issue of shares of Rs. 10 each at
a premium of Rs. 5. The number of shares to be issued by G. Ltd. to settle the purchase
(a) 10,000 shares (b) 12,000 shares
(c) 9,000 shares (d) None of the three.
46. In Jan., 2006 a trader purchased furniture for Rs. 10,000 Depreciation is charged @ 25%
Diminishing balance. At the end of the third year it was sold for Rs. 1,000. Profit or loss as
sale will be _______
(a) Profit Rs. 2,400 (b) Profit Rs. 2,300
(c) Loss Rs. 2,406 (d) Loss Rs. 3,219
47. The plant and machinery account of a firm had a debit balance of Rs. 1,47,390 as on 31st
December, 2009. On 1st Jan., 2006 Co. started business and has been following the practice
of charging full years depreciation every year on Diminishing balance method @ 15%.
Cost of machinery on 01.01.2006 will be
(a) Rs. 2,40,000 (b) Rs. 2,00,000
48. Net Profit before charging manager commission is Rs. 22,000 and the manager is to be
allowed a commission of 10% on the profit after charging such commission. Commission
amount will be
(a) Rs. 2,000 (b) Rs. 18,000
49. X Co. Ltd. issued 1,00,000 debentures of Rs. 100 each at a discount of 4% redeemable after
5 years at a premium of 6%. Loss on issue of debentures will be
(a) Rs. 10,00,000 (b) Rs. 6,00,000
(c) Rs. 16,00,000 (d) Rs. 4,00,000

50. Rishi is a partner in a firm. He withdrew the following amounts during the year ended on
31st December, 2009.
February 1 Rs. 12,000
April 30 Rs. 6,000
June 30 Rs. 9,000
August 31 Rs. 12,000
October 1 Rs. 8,000
December 31 Rs. 7,000
Interest on drawings @ 9% p.a. will be
(a) Rs. 2,295 (b) Rs. 2,000

51. Interest on capital at 6% p.a. is to be allowed. Capital in the beginning was Rs. 3,00,000.
Interest amount will be
(a) Rs. 18,000 (b) Rs. 15,000
52. Depreciation at 5% on office furniture of Rs. 8,000; at 10% on plant and machinery of
Rs. 80,000 and at 5% on factory building of Rs. 2,00,000 have been charged by the
entrepreneur during the year. Total amount of depreciation will be
(a) Rs. 18,400 (b) Rs. 18,000
53. Gaining ratio may be applied when
(a) A partner is admitted (b) A partner retires
(c) A business is sold out (d) A partner is insolvent
54. A limited company forfeited 100 equity shares of the face value of Rs. 10 each, for non
payment of first call of Rs. 2 per share. The forfeited shares were subsequently reissued as
fully paid @ 7 each. Amount transferred to capital reserve will be
(a) Rs. 500 (b) Rs. 200
55. Z Ltd. purchased plant and machinery for Rs. 2,00,000 payable as Rs. 65,000 in cash and the
balance by an issue of 6% debentures of Rs. 1,000 each at a discount of 10%. Discount on
issue of debentures will be
(a) Rs. 15,000 (b) Rs. 14,000

56. A firm had an unrecorded investment of worth Rs. 5,000. Entry in the firms journal on
admission of a partner will be
(a) Unrecorded Investment A/c Dr. 5,000
To Revaluation A/c 5,000
(b) Revaluation A/c Dr. 5,000
To Unrecorded Investment 5,000
(c) Partner Capital a/c Dr. 5,000
To Unrecorded Investment 5,000
57. A company issued debentures of the face value of Rs. 1,00,000 at a discount of 6% on
Jan. 1, 2009. These debentures are redeemable by annual drawings of Rs. 20,000 made
on 31st Dec. each year. The directors decided to write off discount based on the debentures
outstanding each year. Amount of discount to be written off in the 5th year will be
(a) Rs. 400 (b) Rs. 600
58. Alok Ltd. forfeited 300 shares of Rs. 10 each fully called up held by Ram for non payment of
allotment money of Rs. 3 per share and final call money of Rs. 4 per share. Out of these
shares 250 were reissued to Sohan for a total payment of Rs. 2,000. Amount transferred to
capital reserve account will be
(a) Rs. 250 (b) Rs. 900
59. A company issued Rs. 2,00,000 15% debentures at a discount of 5% redeemable after 10
years at a premium of 10%. Loss on issue of debentures will be
(a) Rs. 30,000 (b) Rs. 15,000
60. A, B & C are partners sharing profits & losses in equal ratio. A paid firms liability of Rs.
10,000 out of his private funds. How will you record this in firms books?
(a) No entry will be made in the books of the firm
(b) As Capital A/c Dr. Rs. 10,000
To Liability A/c Rs. 10,000
(c) Liability A/c Dr. Rs 10,000
To As Capital Rs. 10,000
(d) Liability A/c Dr. Rs. 10,000
To All Partners Capital A/c Rs. 10,000
61. An agreement made without consideration is valid under the Indian Contract Act,
1872: if,
(a) The agreement is expressed in writing

(b) The agreement is made on account of natural love and affection of the parties to the
agreement stand in a near relation to each other
(c) The document is registered under the law for the time being in force for registration of
such document
62. As per the Indian Contract Act, 1872 every person is competent to contract provided
he:
(a) Is of the age of majority according to law to which he is subject
(b) Is of sound mind
(c) Is not disqualified from contracting by any law to which he is subject
63. An agreement to negotiate marriage for reward :
(a) Valid (b) Unlawful
(c) Illegal (d) Void
64. When the consent of a party is not free, the contract is
65. Moral pressure is involved in the case of
(c) Misrepresentation (d) Fraud
66. A agrees to pay Rs. 1,000 to B if it rains, and B promises to pay a like amount to A, if it does
not rain, this agreement is called
(a) Quasi Contract (b) Contingent Contract
(c) Wagering agreement (d) Voidable Contract
67. When offer is made to a definite person, it is known as
(a) General Offer (b) Cross Offer
(c) Counter Offer (d) Special Offer
68. An agreement to pay moneys worth on the happening or non-happening of a specified
uncertain event, is a
(a) Wagering agreement (b) Contingent contract
(c) Quasi contract (d) Uncertain agreement
69. A contingent contract dependent on the happening of specified uncertain event within fixed
time can not be enforced, if the event:
(a) Does not happen within fixed time
(b) Becomes impossible before the expiry of fixed time

(c) Happened within the fixed time

70. Essentials of Contract of Sale are
(a) At least 2 parties (b) Subject matter must be goods
(c) Neither (a) nor (b) (d) Both (a) and (b)

(a) Has a right to become a partner in the firm of the deceased partner
(b) Does not have a right to become a partner in the firm of the deceased partner
(c) Can becomes a partner in the firm of the deceased partner only if the surviving partners
give their consent in this regard
72. Valid contract:

(a) In case of this collateral agreement are void
(b) Not enforceable in a court of law
(c) An agreement enforceable by law at the option of one or more of the parties thereon but
not at the option of the other or others
(d) Enforceable at the option of the parties
73. A broker in a wagering transaction, recovers his brokerage, such a transaction is :

(a) Void (b) Illegal
(c) Voidable (d) Valid
74. Following conditions are implied in a Contract of Sale of Goods unless the circumstances
of the contract show a different intention:
(a) Condition as to title (b) Sale by description
(c) Sale by sample (d) All of the above
75. A minor may be:

(a) A partner of a firm
(b) Representative of the firm
(c) Entitled to carry on the business of the firm
(d) Admitted to the benefits of the partnership
76. A partnership firm is compulsorily dissolved where

(a) All partners have become insolvent
(b) Firms business has become unlawful
(c) The fixed term has expired
(d) In cases (a) and (b) only

77. A partnership may be registered with
(a) Registrar of companies (b) Registrar of partners
(c) Registrar of firms (d) District court
78. Dissolution by agreement is:
(a) Dissolution by the adjudication of all the partner or of all the partner but one as insolvent
(b) Dissolution as a result of any agreement between all the partners
(c) Dissolution by the business of the firm becoming unlawful
79. Types of partner includes
(a) Active partner (b) Sleeping partner
(c) Nominal partner (d) All of the above
80. There can be a stranger to a consideration but a stranger to a contract signifies that a
consideration may move from _______
(a) Promisee or any other person (b) Promisee
(c) Promisor (d) An independent person
81. Coercion involves _______
(a) Physical force (b) Mental pressure
(c) Moral pressure (d) Threat
82. Who may waive or remit the performance of promise :
(a) Promisor (b) Promisee
(c) Legal representatives (d) Survivors
83. The right of appropriation of payment is based on the maxim :
(a) Whatever is paid, is paid according to the intention of the party paying
(b) Pay as much as work is done
(c) Acts indicate the intention
(d) Payment made as a favour
84. A _______ agreement is one, which is enforceable at the option of one party
(a) Voidable (b) Void
85. Promisor offers to perform his obligation, but the promisee refuses to accept the
performance, it is called as:
(a) Actual performance (b) Attempted performance
(c) Tender of performance (d) All of the above

86. Agreement to share profits _______

(a) Implies an agreement to share losses
(b) Does not necessarily mean an agreement to share losses
(c) Must be coupled with an agreement to share losses
(d) Is same as agreement to share losses
87. A person who is mentally deranged due to same mental strain or other personal
experience and suffers from intermittent intervals of sanity and insanity is _______
(a) Idiot person (b) Lunatic person
(c) Intoxicated person (d) All of the above
88. The purchaser of goodwill on dissolution of Partnership firm acquires the right to :
(a) Carry on the same business under the old name
(b) Represent himself to the customers of the old firm as the successor in the business of the
old firm
(c) Both (a) and (b)
(d) Use the firm name to solicit the customers of the old firm
89. Goods are said to be in a deliverable state when _______
(c) The seller is in a position to deliver them
90. A contract to pay B Rs. 2,00,000/- if Bs house is destroyed by fire. It is _______
(a) A wagering contract
(b) A contingent contract
(c) A wagering contract plus a contingent contract
(d) Neither a contingent contract nor a wagering contract
91. Rights of an unpaid seller include _______
(a) Right against the goods (b) Right against the buyer
(c) Neither (a) or (b) (d) Both (a) and (b)
92. Dissolution of firm by the order of court may be on the ground of :
(a) Permanent incapacity of partner
(b) Business of firm becomes unlawful
(c) On happening of certain contingencies
(d) Insolvency of all or all but one partner
93. Where in an auction sale, the seller appoints more than one bidder, the sale is _______
(a) Void (b) Illegal
(c) Conditional (d) Voidable

94. In a contract of sale _______
(a) Delivery of goods & payments of price are concurrent conditions
(b) Delivery of goods to be made first
(c) Payment of price to be made first
(d) Both (b) & (c)
95. If one of the partners keep erroneous accounts and omits to enter receipts, there the
court may order for dissolution of the firm on the ground of
(a) Misconduct (b) Permanenet in capacity
(c) Continuous losses (d) Persistent breach of agreement
96. Each of the partner is _______
(a) Principals as well agents (b) Only agents of the firm
(c) Only representatives of the firm (d) Only co-partners of the firm
97. True test of partnership is
(a) Sharing of profits
(b) Sharing of profits and losses
(c) Mutual agency
(d) Existence of an agreement to share profits of the business
98. A partner may retire :
(a) With the consent of all the other partners
(b) By virtue of an express agreement between the partners
(c) Where partnership is at will, by giving public notice of his intention
99. State the correct statement in respect to partnership of firm:
(a) A partner has the right to dissolve the partnership
(b) Every partner has the right to continue in the partnership
(c) Both (a) and (b)
(d) Some of the partners are not liable to contribute eqully to the loss sustained
100. A had offered B, a price of Rs. 10,000/- for Bs flat but B was not ready to sell the flat at
all. A says to B that I shall kill you if you do not agree to sell me your house for
Rs.10,000-. B thereafter did all that was the desire of A in order to save his life. What is
immediate answer?
(a) A can enforce the contract (b) B can enforce the contract
(c) A has applied coercion (d) The contract is unenforceable
101. Which of the following is the best general definition of the study of Economics?
(a) Inflation and unemployment in a growing economy

(b) Business decision making under foreign competition

(c) Individual and social choice in the face of scarcity
(d) The best way to invest in the stock market
102. Labour intensive technique would get chosen in a :
(a) Labour surplus economy (b) Capital surplus economy
(c) Developed economy (d) Developing economy
103. Which of the following is not one of the four central questions that the study of economics
is supposed to answer?
(a) Who produces what? (b) When are goods produced?
(c) Who consumes what? (d) How are goods produced?
104. The various combinations of goods that can be produced in any economy when it uses its
available sources and technology efficiently are depicted by:
(a) Demand curve (b) Production curve
(c) Supply Curve (d) Production possibilities curve
105. Rational decision making requires that:
(a) Ones choices be arrived at logically and without errors
(b) Ones choices be consistent with ones goals
(c) Ones choices never vary
(d) Ones makes choices that do not involve trade offs
106. Contraction of demand is the result of:
(a) Decrease in the number of consumers
(b) Increase in the price of the good concerned
(c) Increase in the prices of other goods
(d) Decrease in the income of purchasers
107. In the case of a straight line demand curve meeting the two axes the price elasticity of
demand at the mid-point of the line would be:
(a) 0 (b) 1
(c) 1.5 (d) 2
108. If the demand for a good is inelastic, an increase in its price will cause the total expenditure
of the consumers of the good to:
(a) Remain the same (b) Increase
(c) Decrease (d) Any of these
109. All of the following are determinants of demand except
(a) tastes and preferences (b) quantity supplied
(c) income (d) price of related goods

110. The price of hot dogs increases by 22% and the quantity of hot dog demanded falls by
25% this indicates that demand for hot dog is -
(a) elastic (b) inelastic
(c) unitarily elastic (d) perfectly elastic.
111. If electricity demand is inelastic, and electric rates increase, which of the following is
likely to occur?
(a) Quantity demanded will fall by a relatively large amount
(b) Quantity demanded will fall by a relatively small amount
(c) Quantity demanded will rise in the short run, but fall in the long run
(d) Quantity demanded will fall in the short run, but rise in the long run
112. An indifference curve slopes down towards right since more of one commodity and less of
another results in :
(a) same satisfaction (b) greater satisfaction
(c) maximum satisfaction (d) decreasing expenditure
113. A vertical supply curve parallel to Y axis implies that the elasticity of supply is:
(a) zero
(b) infinity
(c) equal to one
(d) greater than zero but less than infinity
114. Which of the following cost curves in never U shaped?
(a) Average cost curve (b) Marginal cost curve
(c) Average variable cost curve (d) Average fixed cost curve
115. Which of the following statements is true of the relationship among the average cost functions?
(a) ATC = AFC = AVC (b) AVC = AFC + ATC
(c) AFC = ATC + AVC (d) AFC = ATC AVC
116. A firms average fixed cost is Rs. 20 at 6 units of output. What will it be at 4 units of output?
(a) Rs. 60 (b) Rs. 30
(c) Rs. 40 (d) Rs. 20
117. In describing a given production technology, the short run is best described as lasting:
(a) Up to six month from now (b) Up to five years from now
(c) As long as all inputs are fixed (d) As long as at least one input is fixed
118. What is the shape of the demand curve faced by a firm under perfect competition?
(a) Horizontal (b) Vertical
(c) Positively sloped (d) Negatively sloped

119. Which is the first order condition for the profit of a firm to be maximum?
(a) AC = MR (b) MC = MR
(c) MR = AR (d) AC = AR
120. In which form of the market structure is the degree of control over the price of its
product by a firm very large?
(a) Monopoly (b) Imperfect competition
(c) Oligopoly (d) Perfect competition
121. The kinked demand hypothesis is designed to explain in the context of oligopoly
(a) Price and output determination (b) Price rigidity
(c) Price leadership (d) Collusion among rivals
122. The structure of the tooth paste industry in India is best described as:
(a) Perfectly competitive (b) Monopolistic
(c) Monopolistically competitive (d) Oligopolistic
123. When ____________ we know that the firm are earning just normal profits:
(a) AC = AR (b) MC = MR
(c) MC = AC (d) AR = MR
124. The green revolution is also known as :
(a) Wheat revolution (b) Rice revolution
(c) Maize revolution (d) Forest revolution
125. The area under irrigation has over the years in India
(a) Remained constant (b) Decreased
(c) Increased (d) First increased and then decreased
126. Abolition of Intermediaries and tenancy reforms are both part of :
(a) Industrial reforms in India (b) External sector reforms in India
(c) Land reforms in India (d) Banking reforms in India
127. In absolute terms, the number of people engaged in agricultural activities over the
planning period has
(a) Remained constant (b) Increased
(c) Decreased (d) First increased and then decreased
128. Which of the following has been specifically established to meet the requirements of
credit of the farmers and villagers?
(a) ICICI Bank (b) Regional Rural Banks
(c) State Bank of India (d) EXIM Bank

129. Mahalanobis model stressed upon the establishment of:
(a) Consumer goods industries (b) Export oriented industries
(c) Agro-based industries (d) Capital and basic goods industries
130. About ______________ per cent of the sick units in India are small units.
131. Oil and Natural Gas Corporation, Indian Oil Corporation, Steel Authority of India, and
Bharat Heavy Electricals are all examples of:
(a) Small scale units (b) Private sector units
(c) Public sector units (d) Sick units
132. The service sector in India now accounts for:
(a) More than 80 per cent of GDP (b) More than 70 per cent of GDP
(c) Nearly 60 per cent of GDP (d) More than 90 per cent of GDP
133. BPO stands for:
(a) Bharat Petro Organisation (b) Business Process Outsourcing
(c) Big Portfolio Outsourcing (d) Business Partners Organization
134. National income differs from net national product at market price by the amount of:
(a) Current transforms from the rest of the world
(b) Net indirect taxes
(c) National debt interest
(d) It does not differ
135. Demand for intermediate consumption arises in:
(a) Consumer household (b) Government enterprises only
(c) Corporate enterprises only (d) All producing sector of an economy
136. Net value added is equal to:
(a) Payments accruing to factors of production
(b) Compensation to employees
(c) Wages plus rent plus rent
(d) Value of output minus depreciation
137. Find the tax which is direct tax among the following:
(a) Personal income tax (b) Excise duty
(c) Sales tax (d) Service tax
(a) Income tax was abolished in India in 1991
(b) Service tax was introduced in the financial year 1994-95

(c) Direct tax code was made applicable in 2009-10

(d) Estate duty was abolished in 1995
139. The annual addition to Indias population is almost equal to the total population of:
(a) Bangladesh (b) Australia
(c) Japan (d) China
140. Which year is known as year of great divide for Indias population?
(a) 1991 (b) 2001
(c) 1981 (d) 1921
141. India passing through ___________ stage of demographic transition.
(a) Fourth (b) Third
(c) First (d) Second
142. India accommodates nearly _______percent of worlds population
(a) 10 (b) 50
(c) 17.5 (d) 45
143. EAS stand for
(a) Easy Assistance Scheme (b) Endless Assistance Scheme
(c) Employment Assurance Scheme (d) Employment Assessment Scheme
144. Every ____________ person in the world is an Indian
(a) Second (b) Third
(c) Sixth (d) Tenth
145. According to the latest data (2012-13) Plant Load Factor (PLF) is lowest in:
(a) Southern region (b) Northern region
(c) Western region (d) Eastern region
146. ____________ measures the operational efficiency of a thermal plant.
(a) Power load factor (b) Power leakage factor
(c) Plant load factor (d) Plant leakage factor
147. Who is regulatory authority for telecom in India?
(a) SEBI (b) TRAI
(c) MTNL (d) BSNL
148. Which of the following statements is correct with regard to external sector in the pre-
reform period?
(a) The foreign trade policy was very liberal, it allowed import of all types of goods
(b) Import of foodgrains was strictly prohibited

(c) The balance of payments situation was quite comfortable
149. The pre-condition for privatization to be successful requires:
(a) Liberalization and de-regulation of the economy
(b) Capital markets should be sufficiently developed
(c) None of the above
(d) Both of the above (a) and (b)
150. Privatisation in India has taken place in all of the cases except:
(a) CMC (b) BALCO
(c) VSNL (d) None of the above

151. Pie diagram is used for
(a) Comparing different components and their relation to the total
(b) Representing qualitative data in a circle
(c) Representing quantitative data in a circle
(d) (b) or (c)
152. Which of the following measures of central tendency is based on only 50% of the central
values?
(a) Mean (b) Mode
(c) Median (d) Both (a) and (b)
153. If all the observations are divided by 3, then
(a) New Standard Deviation would also be divided by 3
(b) New Standard Deviation would be multiplied by 3
(c) New Standard Deviation will increase by 3
(d) New Standard Deviation will decrease by 3
154. More laborious numerical calculations are involved in A.M. than G.M.
(a) True (b) False
155. To find the median graphically we use ________.
(a) Ogive (b) Frequency Polygon
(c) Histogram (d) None of these
156. Which measures of dispersion is the quickest to compute
(a) Standard deviation (b) Mean deviation
(c) Quartile deviation (d) Range

157. 2nd decile is greater than 1st decile

(a) True (b) False
158. Correlation coefficient is not a pure number
(a) True (b) False
159. Probability of throwing an even number with an ordinary six faced dice is
(a) 1 (b) 1/2
(c) 1/2 (d) 0
160. In audit test statistical methods are not used
(a) True (b) False
161. Fishers Ideal formula does not satisfy_________ test
(a) Circular test (b) Unit test
(c) Time Reversal test (d) None of these
162. We use t-distribution when the sample size is ________
(a) Big (b) Small
(c) Moderate (d) None of these
163. The mean of binomial distribution with parameters n and p is _______
(a) n (1p) (b) np (1p)
(c) np (d) np(1 p)
164. P (B/A) is defined only if ___________

(a) A is pure event (b) B is a sure event
(c) B is an impossible event (d) A is not an impossible event
165. AUA is equal to
(a) A (b)
(c) 2A (d) None of these
166. The sum of m terms of A.P. is n and the sum of n terms of A.P. is m. The sum of m+n
terms is ______
(a) (m+n) (b) (m+n)
(c) (mn)2 (d) m2 n2

167. The null set is given by
(a) 0 (b) {}
(c) (d) {0}
168. If P is a set of natural number then P P is
(a) (b) Sample Space

(c) 0 (d) (P P)
169. In normal distribution, as the distance from ________ decreases, the curve goes far and
far to the horizontal axis.
(a) Median (b) Mode
(c) Mean (d) None of these
170. The number of factors must be known are ___________ in determining the sample size for
estimating a population mean.
(a) 2 (b) 5
(c) 4 (d) 3
171. The compounded ratio of 4:9 and sub-duplicate ratio of 9:16 is
(a) 1:4 (b) 1:3
(c) 3:1 (d) None of these
172. If x = 9 then 2x1/2 3x-1 is equal to
(a) 2 (b) 3
(c) 4 (d) 0
173. If x = 2 - 2 - 2 then it is equal to
(a) 2 (b) 5
(c) 2 (d) 0
174. The equation of a straight line passing through (3, 2) and making equal intercepts on axis
(a) x+y1=0 (b) x+y5=0
(c) 3x - 2y + 1 = 0 (d) None of these
175. If P + P = 6/25, then value of P is equal to

(a) 1/5 (b) 2/5
(c) 1/25 (d) 2/25

176. Rs. 80,000 is invested to earn a monthly interest of Rs. 12,00 at the rate of _______ p.a.
simple interest.
(a) 12% (b) 14%
(c) 16% (d) 18%
d
177. (x log x) is equal to
dx
(a) (1 + log x ) (b) 1/log x
(c) log x (d) x/log x
3x -1
x 0 1+x -1
(a) 3 loge2 (b) 2 loge3

(c) loge6 (d) Does not exist
179. If f(x) = 3x2 2/x3 then f(x) = ?
(a) x3 + 1/x2 + K (b) x2 + 1/x3 + K
(c) x2 2/x3 + K (d) None of these
180. A person pays Rs. 975 in monthly instalment, each instalment is less than former by Rs. 5.
The amount of first instalment is Rs. 100. In what time entire amount will be paid
(a) 26 months (b) 16 months
(c) 15 months (d) 20 months
181. How many three digit numbers are there, with distinct digits, with each digits odd
(a) 120 (b) 60
(c) 30 (d) 15
182. The difference between Compound Interest and Simple Interest on a certain sum for 2
years at 6% p.a. is Rs. 13.50. Find the sum
(a) Rs. 3,750 (b) Rs. 2,750
(c) Rs. 4,750 (d) None of these
x+1 f(3)
183. If f(x) = x2 1 and g(x) = ,then is
2 f(3) + g(3)
(a) 5/4 (b) 4/5

(c) 3/5 (d) 5/3

184. The sum of two numbers is 16 and twice the square of larger part exceeds the square of
smaller part by 164, the numbers are
(a) 10 and 6 (b) 12 and 4
185. If 3y 2x = 4 and 4y px = 2 are perpendicular to each other, the value of p is equal to
(a) 6 (b) 6
(c) 2 (d) 1
186. The mean height of 8 student is 152 cm. Two more students of heights 143 cm and 156 cm
join the group. New mean height is equal to
(a) 153 (b) 152.5
(c) 155 (d) 151
187. Find the three numbers in G.P whose sum is 52 and the sum of their product in pairs is 624.
(a) 4, 12, 36 (b) 10, 16, 26
188. In how many ways can the letters of the word PENCIL be arranged so that N is always next
to E
(a) 60 (b) 40
(c) 720 (d) 120
189. If with rise of 10% in prices the wages are increased by 20%. Find the percentage of real
wage increase
(a) 109.29% (b) 9.09%
(c) 9.29% (d) None of these
190. A sample of 100 gave a mean of 7.4 kg and a standard deviation of 1.2 kg. The standard
error of mean will be
(a) 0.12 (b) 0.001
(c) 0.0001 (d) 1
191. A letter lock has three rings each marked with 10 different letters. In how many ways it
is possible to make an unsuccessful attempt to open the lock.
(a) 1000 (b) 999
192. A candidate is selected for interview for 3 posts, for the first there are 3 candidates, for
the second there are 4 and for the third there are 2. What are the chances of his getting
at least one.
(a) 3/4 (b) 2/3
(c) 1/10 (d) 1

193. Equations of two lines of regression are 4x + 3y + 7 = 0 and 3x + 4y + 8 = 0, the mean of

x and y are
(a) 5/7 and 6/7 (b) 4/7 and 11/7
194. If the first quartile is 104 and quartile deviation is 18, the third quartile will be
(a) 140 (b) 116
(c) 20 (d) 0
195. What is the present value of Re. 1 to be received after 2 years compounded annually at
10%?
(a) 0.56 (b) 0.78
(c) 0.99 (d) 0.83
1
n
196. The value of x(1- x)
0
dx is equal to
(a) 0 (b) 1
1
(c) (d) (n 1)(n 2)
(n 1)(n 2)
197. In a class of 30 students, 20 students like maths, 18 like science and 12 like both the subjects.
Find the number of students who like no subject.
(a) 4 (b) 5
d 2logx
198. e is equal to
dx
(a) 2 (b) 2x
(c) x2 (d) 0
199. If the quartile deviation of x is 6 and 4x + 8y = 20, what is the quartile deviation of y
(a) 3 (b) 4
(c) 5 (d) 1
200. For a group of 8 students, the sum of square of differences in ranks for maths and
Economics marks was found to be 50. What is the value of rank correlation coefficient?
(a) 0.50 (b) 0.40
(c) 1.00 (d) 1.00

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BOARD OF STUDIES

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

Time : 4 hours Maximum Marks : 200

The test is divided into four sections.

SECTION A : FUNDAMENTALS OF ACCOUNTING (60 MARKS)

Common Proficiency Test (CPT) Volume - I 203

The Institute of Chartered Accountants of India

5. All of the following have debit balance except

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The Institute of Chartered Accountants of India

206 Common Proficiency Test (CPT) Volume - I

The Institute of Chartered Accountants of India

Common Proficiency Test (CPT) Volume - I 207

The Institute of Chartered Accountants of India

38. Sureshs Trial balance provides you the following information:

208 Common Proficiency Test (CPT) Volume - I

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Common Proficiency Test (CPT) Volume - I 209

The Institute of Chartered Accountants of India

210 Common Proficiency Test (CPT) Volume - I

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Common Proficiency Test (CPT) Volume - I 211

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SECTION B : MERCANTILE LAWS (40 MARKS)

61. A wager means:

63. Jus in personam means:

64. Which of the following is not correct:

212 Common Proficiency Test (CPT) Volume - I

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68. A partnership started for a particular adventure/undertaking:

70. Coercion involves:

71. Implied authority of the partner does not empower him to

72. A proposal may be revoked in the following ways:

(a) By notice of revocation. (b) By lapse of time.

73. Which of the following is correct?

Common Proficiency Test (CPT) Volume - I 213

The Institute of Chartered Accountants of India

74. Which of the following statement is / are correct?

214 Common Proficiency Test (CPT) Volume - I

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Common Proficiency Test (CPT) Volume - I 215

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87. Contracting parties may not remain same in ___________.

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97. Partner by holding out is also known as ___________.

100. Every wagering agreement is of a ___________ nature.

SECTION C : GENERAL ECONOMICS (50 MARKS)

101. Which of the following statements is correct?

Common Proficiency Test (CPT) Volume - I 217

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102. Which of the following is incorrect?

218 Common Proficiency Test (CPT) Volume - I

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(a) Decreasing returns to scale. (b) Constant returns to scale.

Common Proficiency Test (CPT) Volume - I 219