CPT Mock Test – 2nd
Test Booklet No. – 110020
Date: - 16.09.2015
Duration : 2 Hours
Total Marks : 100
(1)
Ans. c
Explanation :
Bills receivable dishonored Rs. 4000 so B/R A/c needs to be credited by Rs. 4000 but
B/R A/c credited by Rs. 400 only now to rectify above error we will credit B/R A/c by
Rs. 3600  4000  400  3600  .
(2)
Ans.c
Explanation :
Rectify Entry
Suspense A/c Dr. 2000
To Dividend A/c 2000
Note: Dividend Received Rs. 1000 wrongly posted to debit of dividend A/c However,
it is to be credited to dividend A/c by Rs. 1000.
(3)
Ans. c
Explanation :
Entry
Accrued interest A/c Dr.
To Interest A/c
Note: As interest is not received but earned we will debit accrued interest A/c and
credit interest income A/c.
(4)
Ans. c
Explanation :
Rectifying Entry
Suspense A/c
Dr.
1699
To X A/c
1699
Note: X’s Account is required to be credited by Rs. 881 but it was debited by Rs.
818. So to rectify now it will be credited by (818+881)= Rs. 1699.
(5)
Ans. a
Explanation :
Error of principle is an error when a transaction is recorded in a fundamentally
incorrect manner. The legal expenses on purchase is to be debited to building
account but debited to legal expenses account, there is a fundamental mistake and
hence it is an error of principle.
(6)
Ans. c
(C)
Cash A/c
Dr.
500
To Bad debts recovered A/c
500
(W)
Cash A/c
Dr.
500
To Ram
500
(R)
Ram A/c
Dr.
500
To Bad debts recovered A/c
500
Bad debts reocovered A/c , are shown in the P&L and Ram A/c is shown in the
balance sheet so there is no effect on gross profit.
(7)
Ans. c
Explanation :
(C)
Salary A/c Dr.
To Purchases A/c
MITTAL COMMERCE CLASSES
1|Page
(W)
(R)
Salary A/c Dr.
To Cash
Cash A/c Dr.
To Purchases A/c
(8)
Ans. c
Explanation :
Rectification entry = Trading A/c Dr.
To Closing Stock A/c
(9)
Ans. c
Explanation :
Cost of physical stock as on 15.4.2006 = 300000
Add: Cost of sales
100000- (20% of 100000) = 80000
Less: Cost of Purchase = 50000
Value of inventory as on 31st March 2006 = 330000
(10)
Ans. d
Explanation :
When goods are not interchangeable but are separately placed the best method of
valuation of inventory is specific identification method.
In case goods are manufactured and segregated for specified customers the best
method of valuation of inventory would be – specific identification method.
(11)
Ans. a
Explanation :
Stock is valued cost or NRV whichever is lower and stock should be valued item by
item value of inventory will be
ZEN
200000
FIAT
350000
ESTEEM
320000
HONDA CITY
600000
OPTRA
700000
2170000
(12)
Ans. a
Explanation :
Net realizable value means the estimated selling price in the ordinary course of
business, less estimated cost of completion and estimated cost necessary to make
the sales.
(13)
Ans. d
Explanation :
Let opening Stock is 'x'
AverageStock 
i.e. 20,000 =
Opening Stock  Closing Stock
2
x + (x + 4000)
2
2x = 36000
x = 18000 i.e. opening stock
18000+4000 = 22000 closing stock
(14)
Ans. b
MITTAL COMMERCE CLASSES
2|Page
Explanation :
As per As – 2 inventory is valued cost or NRV whichever is lower. Also valuation of
inventory is the part of accounting policy and once an accounting policy is adopted it
should not be frequently changed it does not mean that it can never be changed.
Accounting policies can be changed but only in exceptional circumstances. these are
the requirement of some statute, As issued by ICAI and change would result in
appropriate presentation of financial statements.
(15)
Ans. a
Explanation:
Opening stock + Purchase – Closing Stock = Cost of goods sold
Opening stock = COGS + closing stock – purchase
(16)
Ans. a
Explanation :
Cost of goods sold = sales – gross profit
160000-32000 = 128000
Closing Stock = 200000 – 128000 = 72000
(17)
Ans. a
Explanation :
LIFO Method
STOCK LEDGER
DATE
RECEIPTS
QTY RATE AMOUNT
March 4
900 5
4500
March 5
March10
400 550
2200
12
15
-
-
-
QTY
600
-
ISSUE
RATE AMOUNT
5
3000
-
400
-
5-5
-
2200
-
QTY
900
300
300
400
300
300
BALANCE
RATE AMOUNT
5
4500
5
1500
5
1500
5.5
2200
5
1500
5
1500
(18)
Ans. c
Explanation :
Under LIFO Method of stock valuation cost of goods sold matches with the current
replacement cost.
(19)
Ans. a
Explanation:
Original Cost
 1600  (1600 
 1600  320
25
)
125
 Rs.1280
Insurance claim will be given on original cost
Insurance claim = 1280  50% = 640.
(20)
Ans. d
Explanation:
Outstanding telephone bills =
(+) Electricity
(+) Salary
MITTAL COMMERCE CLASSES
200
1000
2000
3200
3|Page
(21)
(22)
Ans. b
Explanation:
Goods Costs =
(+) Invoice Price
=
(-) Trade Discount @ 5%
10,000
1,000
550
10,450
Ans. a
Explanation:
Gross Profit = Sales – Cost of Goods Sold.
 4, 00, 00  3,10, 000
 Rs.90, 000
(23)
Ans. a
Explanation:
Cost of Goods Sold = Purchases + Opening Stock – Closing Stock
 20,800  3, 700  2,500
 22, 000
(24)
Ans. a
Explanation:
To Rent Paid
To salaries
To Net Profit
(25)
50,000
4,000
.
54,000
Ans. c
Explanation:
To Opening Stock
To Purchase
To Gross profit
(26)
PROFIT AND LOSS ACCOUNT
6,000 By G.P. b/d
5,800 By Apprentice premium
42,200
54,000
TRADING ACCOUNT
- By Sales
1,00,000 By closing Stock (B/F)
18,000
1,18,000
90,000
28,000
.
1,18,000
Ans. d
Explanation:
TRADING ACCOUNT
To Opening Stock
20,000 By Sales
140700
To Purchases
85800 By Closing Stock
18000
To Carriage Inwards
2300
To Gross Profit(B/F)
50,600
.
158700
158700
* Carriage outwards and office rent will not be taken in trading account because
these are not direct expenses.
(27)
Ans. a
Explanation:
Cost =
(+) Invoice Price
MITTAL COMMERCE CLASSES
1000
100
4|Page
(-) Trade Discount @ 5%
1100
(55)
1045
(28)
Ans. b
Explanation:
Cost of goods sold = OP. Stock + purchases + direct expenses – Closing Stock.
15,00,000 = 6,00,000 + Purchases + 0 – 400000
Purchases = 13,00,000
(29)
Ans. b
Explanation:
Manager Commission:
Total Profit ×
Rate of Commission
5
 1000
= 20000 
100
100
(30)
Ans. d
Explanation:
Fixed Assets is a depreciable assets hence depreciation can be deducted from fixed
Assets.
(31)
Ans. d
Explanation:
Offer is defined u/s 2(a) of Indian Contract Act 1872. There should be intention to
create legal relation. In the case, Harve V/s Faisi, it was held that if any person
doesn’t expresses his final willingness, but only expresses an offer for which he will
agree for bargaining than it will be called as invitation to offer.
(32)
Ans. a
Explanation: When letter of revocation is put in transit.
(33)
Ans. a
Explanation: Where there is a right there is a remedy.
(34)
Ans. b
Explanation: Not Avoided.
(35)
Ans. d
Explanation:
According to Sec.2 (h) of Indian contract act 1872 every agreement which is
enforceable by law, is contract.
(36)
Ans. d
Explanation: Remission.
(37)
Ans. c
Explanation:
It is consideration as defined u/s 2(d) of Indian Contract Act 1872.
(38)
Ans. a
Explanation: Virat Kohli.
MITTAL COMMERCE CLASSES
5|Page
(39)
Ans. c
Explanation:
Promise should not be such for which promiser is already bound. Since it the legal
liability of police inspector to investigate, hence consideration can not be given.
Agreement is void.
(40)
Ans. a
Explanation: Valid.
(41)
Ans. d
Explanation:
According to sec 19 of Indian contract act 1872, contracts which are caused by
coercion, undue influence , Fraud , mis – statement, will be voidable at the will of
aggrieved party.
(42)
Ans. c
Explanation:
Consensus ad idem means parties should be agreed on same thing in same manner.
(43)
Ans. c
Explanation:
According to section 20 of Indian contract Act 1872, if both the parties to the
contract are unknown of any fact than Agreement will be void.
(44)
Ans. c
Explanation:
Restrain in marriage is immoral. According to sec 23 of Indian contract Act 1872,
agreements which are immoral will be void.
(45)
Ans. a
Explanation:
It is valid contract because the commodity which is to be delivered is capable of
being ascertained.
(46)
Ans. a
Explanation: Void agreement.
(47)
Ans. b
Explanation:
These are void agreements as provisions contained v/s 29 of Indian contract Act
1872.
(48)
Ans. c
Explanation: Quasi-contract.
(49)
Ans. d
Explanation:
Assignment is not a method for termination of contract. Contract may be terminated
by performance, by breach of contract, due to subsequent impossibility, and by
mutual consent.
(50)
Ans. a
Explanation:
MITTAL COMMERCE CLASSES
6|Page
According to section 56, contract will not became void due to commercial
impossibility.
(51)
Ans. d
Explanation: Stage II of law of Variable Proportions is called Diminishing returns as
well as Decreasing returns
(52)
Ans. b
Explanation: Decreasing return to scale occurs when Output rises in less than
proportion to increase in inputs.
(53)
Ans. d
Explanation: There is no best stage in returns to scale but in law of variable
proportions the second stage is considered best.
(54)
Ans. b
Explanation: Diminishing returns occur when units of a variable input are added to a
fixed input and marginal product falls.
(55)
Ans. c
Explanation: If decreasing returns to scale are present, then if all inputs are
increased by 10% then output will increase by less than 10%.
(56)
Ans. a
Explanation: The average product of labour is maximized when marginal product of
labour equals the average product of labour (AP = MP).
(57)
Ans. a
Explanation: The law of variable proportions is drawn under all of the assumptions
except the assumption that the technology is changing.
(58)
Ans. b
Explanation:
Number of Workers
0
1
2
3
Output
0
23
40
50
Marginal product
0
23
17
10
(59)
Ans. d
Explanation: Variable cost increases continuously with the increase in production.
(60)
Ans. b
Explanation: In the short run when the output of a firm increases its average fixed
cost decreases.
(61)
Ans. a
Explanation: Marginal cost is based on law of variable proportions hence it is closely
related with variable cost.
(62)
Ans. d
Explanation: The negatively-sloped (i.e. falling) part of the long-run average total
cost curve is due to the increase in productivity that results from specialization.
MITTAL COMMERCE CLASSES
7|Page
(63)
Ans. c
Explanation:
ATC =
TC
Q
TC = TFC + TVC
TC = 4000 + 1000
TC = 5000
ATC =
5000
TC
=
= 1000
5
Q
(64)
Ans. b
Explanation: The efficient scale of production is the quantity of output that minimizes
average total cost.
(65)
Ans. d
Explanation: If marginal cost equals average total cost average total cost is
minimized.
(66)
Ans. a
Explanation: “Economics is neutral between ends” was given by Robbins.
(67)
Ans. c
Explanation: Economics describes how unlimited wants can be satisfied by limited
resources.
(68)
Ans. c
Explanation: According to Lionell Robbins Economics is a positive science.
(69)
Ans. a
Explanation: Since if income is unevenly distributed there will be disadvantage of
allocating resources as those having high income will be able to purchase more.
(70)
Ans. c
Explanation: If the PPF is linear, i.e., a straight line than the Opportunity costs will
be constant.
(71)
Ans. b
Explanation: The first order condition for the profit of a firm to be maximum is MC =
MR.
(72)
Ans. d
Explanation: A homogenous product is a feature of perfect competition.
(73)
Ans. b
Explanation: In perfect competition firm is the price taker.
(74)
Ans. d
Explanation: In perfect competition industry is a price maker whereas firm is only a
price taker.
MITTAL COMMERCE CLASSES
8|Page
(75)
Ans. c
Explanation: In perfect competition the shape of a firm is horizontal.
(76)
Ans. d
Explanation :
E  (1  r)n -1
4
6 

= 1 
 1
 400 
4
 406 
 
 1
 400 
 0.0613
E  6.13%
(77)
Ans. b
Explanation :
In 3 years sum will be Rs. 767
5 years sum will be Rs. 845
difference of 2 years is Rs. 78
So Interest of per years is = Rs. 39
Interest for 3 years is 39  3  Rs. 117
So sum is = Amounts − Interest
767 − 117
Sum  Rs.650
(78)
Ans. a
Explanation :
Let Person invests Rs. x with 12% and remaining sum (15000 – x) invests with 8% then
12  2
8
x
 (15000  x) 
 2  2700
100
100
8
3x  2 15000  2x   2700
100
2700 100
[x  30000] 
8
x  30000  33750
x  33750  30000
So Rs. 3750 invests with 12%
 Rs. 3750
(79)
Ans. b
Explanation:
SI =
3
8
prt
100
P=
p x r x 25
400
r = 6%
(80)
Ans. a
Explanation :
MITTAL COMMERCE CLASSES
9|Page
r 

A  P 1 

 100 
n
5 

1323  12000 1 

100


13230  21 
 
12000  20 
2
 21   21 
   
 20   20 
n
n
n
n=2
(81)
Ans. c
Explanation :
Total no. of triangle  12C3
7 point are on straight line  7C3
So Remaining = 12C3  7C3
= 220 – 35
 185
(82)
Ans. c
Explanation :
1
3
5
7
Odd places
letters are 1, 2, 3, 4, 3, 2, 1
 Arrangements of odd places.
4P4

2 2
And Arrangements of Even Places
3P
 3
2
Total Arrangements
3P
4P4
 3
2 2 2
 63
 18
(83)
Ans. b
Explanation :
MITTAL COMMERCE CLASSES
10 | P a g e
G1
–
–
G5
G2
–
–
G4
–
G3
Arrange of 5 gentlemen around the table
 5 1  4
for ladies there are 5 place between men so that no ladies are together
 5P4
Total 4  5P4
= 24  120
= 2880
(84)
Ans. b
Explanation :
E1 E2 E3 E4 E5
1
2 3
4
5
5 4  321
Total ways = 120
There is only 1 way to put all in directed envelopes.
So Remaining = 120 – 1 = 119 Rs.
(85)
Ans. c
Explanation :
Sn = Σtn
Sn = Σ(2n -1)
= 2Σn- Σ1
(n + 1) ×n
-n
=2×
2
n2 + n - n
= n2
(86)
Ans. c
Explanation :
Sum of natural numbers till 300
MITTAL COMMERCE CLASSES
11 | P a g e
300(300 + 1)
n(n + 1) 

= 45150
Σn =

2
2 

Natural numbers which are divisible by 3
3 + 6 + 9 + 12 + ………. 300
300 - 3
n=
+1
Tn = a+(n-1)d
3
= 100
n
Sn = (a + L) a = 3
2
L = 300
n = 100
100
=
300 + 3 = 15150
2
So sum of the numbers which are not divisible by 3 is S300  Sn
S300 =
= 45150 - 15150 = 30000
(87)
(88)
Ans. b
Explanation :
n
Sn = a + L  (Sum of A.P.)
2
a = 10
n
L = 102, 11200 = [102 + 10]
2
n=?
Sn = 11200
n = 200
Ans. c
Explanation :
4 5 4 5
+ + + ---7 72 73 74
4 4
  5 5

  + 3 ---    2 + 4 --- 
7 7
 7 7

Given Series is
= Sum of infinite term of G.P. is S =
a
1 -r
4/7
5/72
+
1 -1/72 1 -1/72
4 × 49 5 × 49
+
=
48 × 7 48 × 49
7 5
33
+
=
=
12 48 48
=
(89)
Ans. c
Explanation:
MITTAL COMMERCE CLASSES
12 | P a g e
Geometric mean =
n
3
x1.x 2 ........x n
40  x  50 =100
X = 500
(90)
Ans. c
Explanation:
Harmonic mean =
n
(1/ x) s
Here n = 5
HM =
5
 2.189
1 1 1 1
1   
2 3 4 5
(91)
Ans. c
Explanation : Average age of 10 students = 20 yrs
The sum of age of 10 students = 20 x 10 = 200 yrs
If two boys are increased
The total no of students = 10+2=12
And average increased by 4 yrs
Then new average = 20 + 4 = 24
The sum of age of 12 student = 24 x 12 = 288
The sum of age of two boys = 288 – 200 = 88
88
Average age of two boys = 2 = 44
(92)
Ans. b
Explanation: The best measurement of central tendency for open end classification is median.
(93)
Ans. b
Explanation:
13x  7 y  22  0
x 6
(94)
Ans. c
Explanation:
Wages of 8 workers in ascending order
19,18,22,28,37,24,39,42
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
=
=
24  28
 26
2
MITTAL COMMERCE CLASSES
13 | P a g e
(95)
Ans. a
Explanation:
M.D of y = |𝑏| × 𝑀. 𝐷. 𝑜𝑓 𝑥.
15 
15
M.D. x
12
M.D.x = 12
(96)
Ans. b
Explanation:
y=12–3xs
S.D. of y = |𝑏| × 𝑆. 𝐷. 𝑥
S.D. of y =
3 5
(97)
Ans. b
Explanation: Q.D<M.D.
(98)
Ans. a
Explanation:
Given
𝑀𝑒𝑎𝑛 (𝑥) = 5; 𝑆. 𝐷. (𝜎) = 2.6
𝑄𝐷
Coefficient of QD =
× 100
𝑀
=
(99)
1.733
5
× 100 = 34.67
Ans. b
Explanation:
Q3=142 and Q1=126
𝑄 −𝑄
142−126
16
𝑄. 𝐷. = 3 1 =
= =8
2
6
2
2
MD.= × 8 = 9.60
5
(100) Ans. a
Explanation:
Given x takes x1 , x 2 , ...........x10 ,  x1 ,  x 2 , .........  x10

20
x
i
0
i 1
10
and given
x
i 1
2
i
,
20

x i2
i 1
 S.D. of x =
20
 40
n
x
i 1
2
i
 20
xi

i 1


n




 40  2  80







2
2
=
80  0 
   2
20  20 
MITTAL COMMERCE CLASSES
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