CPT Mock Test – 1st
Test Booklet No. – 110011
Detailed Solutions
Date: - 29.07.2015
Duration : 2 Hours
Total Marks : 100
(1)
Ans. C
Explanation:
In case of some error both the sides of trial balance remains equal. For example –
Loan taken Rs. 50000 Recorded as Rs. 40000.
Correct Entry
Wrong Entry
Bank A/c
Dr. 50,000
Bank A/c
Dr. 40,000
To Loan A/c
50,000
To Loan A/c
40,000
But in both the cases Debits and credits of the trial balance will be equal.
Hence Proved that equality of debits and credits of trial balance does not mean that
individual accounts are also accurate.
(2)
Ans. B
Explanation:
16490
Dr. Balance as per cash book
Add: Cheque issued but not presented for payment
Less: Cheque deposited but not cleared
Cr. Balance as per pass book
(3)
(4)
(5)
15,000
2,150
660
16,490
Ans. B
Explanation:
Rs. 16130
Over draft as per pass book
Add: Cheque drawn but not presented for payment
Add: Bank charges recorded twice in cash book
Add: Cheque deposited in bank but not recorded in cash book
Overdraft as per Cash Book
10,000
6,000
30
100
16,130
Ans. A
Explanation:
Rs. 2370
Balance as per pass book
Add: Cheque paid but not yet credited
Add: Bank charges entered in pass book
Less: Cheques issued but not presented for payment
Balance as per cash book
2,430
1,390
260
1,710
2,370
Ans. A
Explanation:
Rs. 9500
Balance as per cash book
Add: Cheque issued and presented on 4th April
Less: Cheque sent to bank but not credited
Less: B/P paid by bank but not entered in cash book
Balance as per pass book
10,000
2,300
2,000
800
9,500
MITTAL COMMERCE CLASSES
1|Page
(6)
(7)
Ans. C
Explanation:
Rs. 18000
Balance as per pass book
Add: Cheque deposited but not cleared
Less: Cheque issued but not presented
Balance as per cash book
20,000
5,000
7,000
18,000
Ans. B
Explanation:
Rs. 255
Overdraft as per pass book
Add: Cheque drawn but not presented for payment
Less: Cheque sent for collection but not credited by bank
Overdraft as per cash book
450
105
300
255
(8)
Ans. D
Explanation:
Rs. 80000
As Cheque of Rs. 20000 was collected by bank on 2 nd February, 2006, it means
balance as per pass book of Rs. 60000 as on 31st Jan., 2006 is without including
above Rs. 20000. Whereas in cash book this amount (Rs. 20000) is included on 25 th
January, 2006. So balance as per cash book on 31 st Jan., 2006 will be Rs. 20000
more than balance as per pass book, i.e. 60000 + 20000 = Rs. 80000
(9)
Ans. B
Explanation:
Rs. 16000
Dr. Balance as per Cash Book
Add: Cheque issued but not presented
Less: Cheque deposited but not cleared
Balance as per pass book
15,000
2,000
1,000
16,000
(10)
Ans. A
Explanation:
Added
Because bank has already included dividend amount in it’s book upon collection but
the same is not included in cash book balance. So to arrive at balance as per pass
book it will be added in cash book balance.
(11)
Ans. A
Explanation:
Debit
Because when customer with draws money then cash out flow takes place for bank,
so bank credits cash account and debits customer account for withdrawal from bank.
MITTAL COMMERCE CLASSES
2|Page
(12)
Ans. C
Explanation:
Increasing the bank balance by Rs. 90 in the cash book.
Instead of Rs. 1870 only Rs. 1780 was debited in cash book. Whereas bank will debit
customer account with whole Rs. 1870. So Bank balance as per cash book will be Rs.
90 (1870−1780) more than bank balance as per pass book.
(13)
Ans. C
Explanation:
Cheques deposited and cleared.
Because amount of such cheque is already included in both the books i.e. balance as
per pass book and balance as per cash book.
(14)
Ans. A
Explanation:
13000
Bank overdraft as per cash book
Add: Cheque deposited but not cleared
Less: Cheque issued but not cashed
Bank overdraft as per bank statement
15,000
4,000
6,000
13,000
(15)
Ans. A
Explanation:
Added by Rs. 300
As bank has added charges of Rs. 300 twice and cash book has recorded charges
only once so bank overdraft as per bank statement is more than bank overdraft as
per cash book by Rs. 300. So to arrive at overdraft balance as per pass book we
have to added Rs. 300 in overdraft balance as per cash book.
(16)
Ans. B
Explanation:
Personal account
Bills receivable account is a personal account as it represents amount due from a
person who is a debtor to the business.
(17)
Ans. B
Explanation:
Rs. 30300
Total amount to be recovered by X from Y after dishonour of bill is Rs. 50500. Out of
this only 40% is recoverable and 60% is not. Thus, deficiency is Rs. 30300 (i.e. 60%
of 50500)
Following Journal Entries will be passed
Books of X
Books of Y
Y Dr.
50500
B/P Dr.
50000
To B/R
50000 Noting Charges
Dr.
500
To Cash
500
To X
50500
Bank
Dr.
20200
X
Dr.
50500
Bad-debts
Dr.
30300
To Bank
20200
To Y
50500
To Deficiency
30300
MITTAL COMMERCE CLASSES
3|Page
(18)
Ans. C
Explanation:
Acceptance
A promissory note does not requires acceptance as it is an undertaking taken by a
person i.e. an obligation taken by one self and hence it requires no acceptance.
(19)
Ans. B
Explanation:
Rs. 180
The due date of the bill falls on 6th May 2006.. The bill is retired on 13.3.2006 i.e.
54 days before the due date. Rebate for this period will be :
10000 
12
54

 180(approx )
100 360
(20)
Ans. C
Explanation:
Transfer of right on the bill from the drawer to the creditors
Endorsement of a bill means transfer of rights of the bill from the drawer to the
creditors.
Entry Creditors A/c Dr.
To B/R.
(21)
Ans. C
Explanation:
20th May, 09
When a bill is payable after sight the due date shall be calculated from the date of
acceptance of the bill.
In the given case,
Date of acceptance = 17th April, 2009
Due date of bill = 30 days from the acceptance of bill.
Due date = 17th May, 09 + 3 days of grace = 20th May 09.
[Note = 17th May = (30 – 17) = 13 days of April +
17
days]
30
(22)
Ans. B
Explanation:
Entries for cancellation of old bill and renewal of bill
When the acceptor is unable to pay the amount and he himself moves that he should
be given extension of time. In such a case a new bill will be drawn and old bill will be
cancelled. In this situations, entries should passed for cancellation of the old bill and
renewal of bill.
(23)
Ans. A
Explanation:
Debtor
A debtor is a person who has to pay money. Thus the person who accepts the bill of
exchange that is the drawee, has to pay the amount to the drawer. Therefore, he
becomes a debtor of the drawer.
(24)
Ans. A
Explanation:
Rs. 100000
MITTAL COMMERCE CLASSES
4|Page
Half Amount remitted is Rs. 48500
Amount obtained from bank after discounting = 48500 × 5 = 97000/Bill amount can be ascertained as follows:
Discounting charges deducted for 3 months
Hence effective charge : 12% ×
3
=3%
12
If bill amount is x :
X × (1–0.03) = 97000
X = 100000/(25)
Ans. B
Explanation:
(i), (iv) and (v)
(i)
It must be in writing.
(ii)
It must contain a clear promise to pay.
(iii)
The promise to pay must be unconditional.
(iv)
The promisor or maker must sign the promissory note.
(v)
The maker must be a certain person.
(vi)
The payee must also be certain.
(vii)
The sum payable must be certain.
(viii) Payment must be in legal currency of the country.
(ix)
It should not be made payable to the bearer.
(x)
It should be properly stamped.
Thus, statements (i), (iv) and (v) are corrected.
(26)
Ans. C
Cash A/c
Dr.
11800
Discount A/c Dr.
200
To Bills receivable A/c
Discount = 12000 
12000
10
2

 200 / 
100 12
(27)
Ans. C
Explanation:
Rs. 24000
Total amount payable by Dhiman is Rs. 40000 out of which only 40% is realized from
his estate, therefore deficiency to be recorded in his books is 60% i.e. 40000 × 60%
= Rs. 24000
(28)
Ans. D
Explanation:
None of the above
A bill to be an inland bill must be drawn in India with one additional condition to be
satisfied.
i.e.
(1) Drawn on a person resident of India OR
(2) Is payable in India
Hence, A bill drawn inside India on a person resident outside India and made payable
outside India is also a foreign bill and if a bill is drawn outside India then also it is a
foreign bill.
Hence, answer in none of the above as all are foreign bills.
(29)
Ans. C
MITTAL COMMERCE CLASSES
5|Page
Expalantion:
Rs. 35000 × 98%
35,000 × 95%
34,300
Less: Paid in cash
5,000
Bill Amount
29,300
Bill to be drawn is for Rs. 29,300/-
(30)
Ans. B
Explanation:
Rs. 4900
Total value of bill
= Rs. 10000
Discounting charges
= Rs. 10000 
12 2

100 12
= Rs. 200
Remaining amount amount of bill = Rs. 10000 – Rs. 200
= Rs. 9800
Since the proceeds were shared equally therefore,
amount received by A
=
Rs .9800
=Rs.4900.
2
(31)
Ans. B
Explanation:
1st September, 1872
(32)
Ans. C
Explanation:
Contract because according to section 2 (h) any agreement which is enforceable by
law is known as contract.
(33)
Ans. A
Explanation:
An offer to be valid should not contain a term the non-compliance of which would
amount to acceptance.
(34)
Ans. D
Explanation:
Voidable.
Because if there is no free consent then contract will be voidable.
(35)
Ans. C
Explanation:
By parties
Because contractual rights & liabilities come into existence by offer & acceptance &
these are made by parties.
(36)
Ans. B
Explanation:
True
MITTAL COMMERCE CLASSES
6|Page
Because every agreement is contract if enforceable by law. It means it is only
agreement which converted into contract if it contains all the essential elements.
(37)
Ans. A
Explanation:
Offer + Acceptance + Consideration
Because every promise & set of promises forming consideration for each other is
agreement.
(38)
Ans. A
Explanation:
Law always protect the innocent party therefore all innocent promises collateral to
the main illegal promise contained in a contract will be regarded as valid.
(39)
Ans. A
Explanation:
Promise
(40)
Ans. B
Explanation:
An offer can be revoked before offeree put his acceptance into transit.
(41)
Ans. B
Explanation:
False
Because consideration may be given by any person
(42)
Ans. A
Explanation:
Because past services rendered must be voluntary and not involuntary.
(43)
Ans. B
Explanation:
Specific offer refers to the offer made to a definite person or group of persons. Such
an offer can be accepted by that specified person or group of persons only.
Here, in the given case the Law Book is offered to be sold only to members of ICAI
Council, hence it is a specific offer.
(44)
Ans. A
Explanation:
True
Because consideration may be insufficient.
(45)
Ans. D
Explanation:
Because Consideration need not to be adequate.
(46)
Ans. A
Explanation:
(47)
Ans. B
Explanation:
MITTAL COMMERCE CLASSES
7|Page
A contract is said to be tacit when it has to be interred from the conduct of the
parties. Obtaining cash through automatic teller machine is an example of the tacit
contract.
(48)
Ans. A
Explanation:
When the offeree offers to qualified acceptance of the offer subject to modifications
and variations in the terms of original offer, he is said to have made a counter offer.
A counter offer amounts to rejection of the original offer i.e. original offer ends or
lapeses.
(49)
Ans. B
Explanation:
Because consideration can be given by any person.
(50)
Ans. D
Explanation:
All of the above.
(51)
Ans. D
Explanation:
By Using the formula of Arc Elasticity
Ed=
q1  q2 p1  p2

q1  q2 p1  p2
Q1 = 500
Q2 = 300
P1 = 10
P2 = 15
500  300 10  15

500  300 10  15
200 25

Or
800  5
5
=
Or -1.25 or 1.25
4
Or
(Minus Sign can be ignored)
(52)
Ans. A
Explanation:
Since there is positive relationhip in case of substitute goods. So if price of substitute
of x commodity falls the demand of x commodity also falls subsequently.
(53)
Ans. B
Explanation:
Since there is direct relationship between income and demand
(54)
Ans. C
Explanation:
Since electricity can be putted to numbers of uses and more the uses of a commodity
more is the elasticity.
MITTAL COMMERCE CLASSES
8|Page
(55)
Ans. C
Explanation:
Since inferior goods have negative relationship in case of income because when
income increases then consumer becomes able to purchase superior goods.Hence he
purchases less quantity of inferior goods.
(56)
Ans. D
Explanation:
Since “giffen goods” is a exception to law of demand hence the relationship between
price and quantity demand of giffen goods is positive.
(57)
Ans. A
Explanation:
Since if price of petrol increases quantity demanded of car goes down hence cross
elasticity is negative.
(58)
Ans. C
Explanation:
These two commodities were termed as giffen goods by Sir Robert Giffen. This is an
exception of law of demand
(59)
Ans. C
Explanation:
Because price of tea
And due to this
Qd of coffee also
Hence the cross elasticity is positive
(60)
Ans. B
Explanation:
Because income elasticity of luxury goods is e>1 and
% change in demand
% change in income
25
Ei =
 1.25 Which is e >1
20
Ei =
(61)
Ans. B
Explanation:
Since
qd 10%

1
P 10%
& e = 1 is unit elastic demand
(62)
Ans. B
Explanation:
MITTAL COMMERCE CLASSES
9|Page
Y
e= 1
X
O
At the mid point of demand curve elasticity is unitary elastic
(63)
Ans. B
Explanation:
Since Elasticity of electricity is e<1 hence quantity demanded of electicity will fall
very less.
(64)
Ans. A
Explanation:
Because the goods are totally unrelated hence there is no relation between these
goods hence the cross elasticity would be zero.
(65)
Ans. D
Explanation:
Since substitute goods are those goods which are used in place of one another.
(66)
Ans. A
Explanation:
Income elasticity =
So ei =
% Change in Quantity Demanded
% Change in Income
20%
= 0.4Ans.
50%
(67)
Ans. C
Explanation:
Since there is inverse relationship between price and Quantity demanded
(68)
Ans. C
Explanation:
Since of change in Quantity demanded is more than change in price then elasticity
would be e > 1 (Highly elastic)
(69)
Ans. C
Explanation:
Since in case of luxury goods the elasticity is e > 1
(70)
Ans. A
Explanation:
Since in case of substitute the cross elasticity is positive.
MITTAL COMMERCE CLASSES
10 | P a g e
(71)
Ans. A
Explanation:
Since demand curve shows inverse relationship between price and quantity
demanded.
(72)
Ans. D
Explanation:
Since there is negative relationship between income and quantity demanded in case
of inferior goods.
(73)
Ans. B
Explanation:
Since it implies that price is constant to whatever changes is there in quantity
demanded.
(74)
Ans. B
Explanation:
Since
ei =
%Change in demand
%Change in Income
OR
50%
 2.5%which is e > 1
20%
and in case of luxury goods e > 1
ei 
(75)
Ans. C
Explanation:
since on the upper extreme point the elasticity is infinite and on the mid point the
elasticity is equal to 1. So in between the elasticity is >1 as per the graph shown
above.
(76)
Ans. A
Explanation:
9 1 5
 
25 3 1
MITTAL COMMERCE CLASSES
11 | P a g e
 3:5
(77)
Ans. B
Explanation:
15% of x = 20% y
x 20%

y 15%
x 4

y 3
(78)
Ans. A
Explanation:
Pencil Pen Book
10
2
3
 Pencil are 120
 Total Quantity
15
=
120  180
10
 No. of Exercise book
3

180  36
15
(79)
Ans. B
Explanation:
Let third proportial be T
x 2  y2 , x  y, T
x 2  y2 : x  y :: x  y : T
(x  y)2  (x 2  y2 )  T
(x  y)2
T
x 2  y2
xy
T
xy
(80)
Ans. D
Explanation:
xyz
xyz
xyz
xyz



 xyz
1
1
1 zxy
1
(x

y

z)
 
xy yz zx  xyz 
(81)
Ans. C
Explanation:
x
2 3
 3  . 2 
   
2x
 27 

 8 

MITTAL COMMERCE CLASSES
12 | P a g e
3
2
 
x
3
. 
2
2x
3
 3
 
 2
2x  x  3
x=3
(82)
Ans. C
Explanation:
n
m
 xy  1   xy  1 

 .

 y   y 
n
m
 xy  1   xy  1 
.
 x   x 

 


 xy  1n . xy  1m 
x
  
 y
(83)
(y)n m
n m
x n m
(xy  1)n .(xy  1)m
Ans. B
Explanation:
1 1
1 1 1
1/2
2
4
a. .b. c. d  a. b. c.d
 a b.c d  a.b 2 .c 4 d 8
1 1 1 1
= a 2 .b 4 .c8 .d16
(84)
Ans. D
Explanation:
(4)n  (2)5  (8)3
8
2  (16)4
(85)

(2)2n .(2)5.(2)9
8
(2).(2)16




(2)2n59116  (2)3
2n  3  3
2n  6
n 3
Ans. B
Explanation:
MITTAL COMMERCE CLASSES
13 | P a g e
x a(bc) .(x)c(a b)
(x)b(a c)

(x)abac .(x)acbc
(x)abbc
 (x)abacacbcabbc
 x0
1
(86)
Ans. c
Explanation :
a
3
A
:
4
Sides are 3x, 4x
P1 : P2
 4a : 4A
 4  3x : 4  4x
 12 : 16
 3: 4
(87)
Ans. d
Explanation :
xy 4

xy 1
then
x 2  y2
?
x 2  y2
xy 4

xy 1
x  y  4x  4y
Sol.
5y = 3x
5 x

3 y
 x  2 
y 2    1
 y 

x 2  y2
 
Now 2
2
2
 x 

x y
y 2    1
 y 

MITTAL COMMERCE CLASSES
14 | P a g e
2
5
  1
3
  2
5
 3  1
 
25  9
9
34 17




9
25  9 16 8
(88)
Ans. a
Explanation :
a  b  6x
b  c  7x
ca
 8x
2(a + b + c) = 21x
2(14) = 21x
4
x
3
 a  b  6
ab 8
4
3
Given a + b + c = 14
8 + c = 14
c = 14 – 8
c=6
(89)
Ans. c
Explanation :
Coefficient of mean deviation about mean =
 0.2 
(90)
Mean deviation about mean
mean
5.8
5.8
 mean 
 29
mean
0.2
Ans. C
Explanation:
Geometric mean =
n3
n
x1.x 2 ........x n
x1  4 , x 2  x, x 3  8
3
4.x.8  8
4.x.8  83
x
(91)
83
=16
48
Ans. b
Explanation :
5x  2y  6
2y  6  5x
MITTAL COMMERCE CLASSES
15 | P a g e
6 5x

2 2
5 5
|b| 

2
2
y
[coefficient of x]
mean deviation of y = |b|  mean deviation of x about mean.
=
(92)
5
 6  15
2
Ans. B
Explanation:
Given n1  k , n 2  k
x1  16 x 2  10
Combined mean
x
=
n1x1  n 2 x 2
n1  n 2
k 16  k 10 16k  20k 36k


kk
3k
3k
= 12
(93)
Ans. C
Explanation:
In this question, we will use weighted harmonic mean.
 HM =
Wi
W
 i
Xi
w1  2, w 2  3, w 3  5 , x1  2, x 2  3, x 3  5


 235 
= 

 235
2 3 5
10
=
km / hr
111
10
=
km/hr
3
(94)
Ans. B
Explanation:


 n n 
23
2 
Combined H.M. =  1

2
3
 n1  n 2 
 H H   2  1
2 
 1
   
 5 5
5
=
5  15
5 1
=

20 4
MITTAL COMMERCE CLASSES
16 | P a g e
(95)
Ans. B
Explanation:
By Hit & Trial Method Checking option (b)  2 and 4
For two numbers a and b
a b 24

3
2
2
2ab 2  2  4
and HM 

ab
2 4
AM 
=
(96)
16 8

6 3
Ans. d
Explanation:
Coefficient of variation =
S.D.
 100
X
S.D.
 100
10
50 10
S.D. 
5
100
 Variance = (S.D.)2  52  25
50 
(97)
Ans. C
Explanation:
The algebraic Sum of deviations of a set of observations from their AM is
Xi
X  X
10
20
30
−10
0
10
0
Example
(98)
Xi
n
10  20  30
=
3
X
i
therefore
zero.

= 20

 Xi  X  0
Ans. b
Explanation:
Coefficient of range =
L S
LS
Where L  for largest value
S  for smallest value
Coefficient of range =
(99)
40  10 30 3


40  10 50 5
Ans. C
Explanation:
5X  6Y  9  0 and X  6
5  6  6Y  9  0
30  6Y  9  0
MITTAL COMMERCE CLASSES
17 | P a g e
6Y  39  0
6Y  39
39
6
13
Y
2
Y
= − 6.50
(100) Ans. B
Explanation:
Wages of 8 workers in ascending order
38, 42, 45, 47, 49, 54, 55, 56
n=8
th
th
n
n 
  value    1 value
2
2 
2
median =
th
th
8
8 
  value    1 value
2
 
2 
2
=
th
(4) value  (5) th value
2
=
47  49
2
=
= 48
MITTAL COMMERCE CLASSES
18 | P a g e