CPT Mock Test – 4th
Test Booklet No. – 110018
Date: - 25.10.2015
Duration : 2 Hours
Total Marks : 100
(1)
While preparing a Bank Reconciliation Statement taking the balance as per Cash
Book as the starting point, Debit balance of Rs. 112 brought forward as credit
balance of Rs. 121 is:
(a)
Rs. 112 to be Added
(b)
Rs. 121 to be Added
(c)
Rs. 233 to be Added
(d)
Rs. 112 to be Subtracted
Ans. c
Explanation:
Cash Book
+
?
Add:
+
233
Pass Book
+
233
(2)
While preparing a Bank Reconciliation Statement taking the balance as per Cash
Book as the starting point, an under cast of deposit column in Pass Book is:
(a)
Added
(b)
Subtracted
(c)
not required to be adjusted
(d)
none of these
Ans. b
Explanation:
Cash Book
Less:
(3)
+


X sold goods to Y on 1st Jan for Rs. 1,50,000. Y immediately accepted a three
months bill. On due date Y requested that the bill be renewed for a fresh period of
two months. X agrees provided interest at 9% p.a was paid immediately is cash.
What will be the amount of interest in the books of X?
(a)
Rs. 2,000
(b)
Rs. 2,500
(c)
Rs. 2,250
(d)
Rs. 2,800
Ans. c
Explanation:
Interest = 150000 x 9% x
2
12
= 2250
(4)
Which of the following statements is true?
(a)
A bill cannot be endorsed more than two times
(b)
A bill is drawn by purchaser
(c)
A bill contains an unconditional promise to pay
(d)
Noting charges are borne by the drawee in the event of dishonor of bill
Ans. d
Explanation:
Noting charges are borne by drawee in the event of dishonor of bill.
(5)
Out of the following Bills, bill at sight is:
(a)
Pay B, Rs. 500 on presentment
MITTAL COMMERCE CLASSES
1|Page
(b)
Pay B, Rs. 500 after sight
(c)
Pay B, Rs. 500 after 3 months
(d)
None of these
Ans. a
Explanation:
Pay B, Rs.500 on Presentment
(6)
Which of the following assets is usually assumed to be not depreciating?
(a)
Land
(b)
Building
(c)
Plant
(d)
Furniture
Ans. a
Explanation:
Generally the value of land keeps on increasing.
(7)
Consider the following data pertaining to M/s. E Ltd. who constructed a cinema
house:
Particular
Rs.
Cost of second hand furniture
90,000
Cost of repainting the furniture
10,000
Wages paid to employees for fixing the furniture
2,000
Fire insurance premium
1,000
The amount debited to Furniture Account is
(a)
Rs. 90,000
(b)
Rs. 91,000
(c)
Rs. 1,00,000
(d)
Rs. 1,02,000
Ans. d
Explanation:
Cost = 90000 + 10000 + 2000 = Rs. 102000
Annual expenses of insurance premium are not added to the cost of Asset.
(8)
Purchase Price of Machine Rs. 1,50,000, Installation Charges Rs. 50,000, Residual
Value Rs. 81,920, Useful life 4 years, the amount of depreciation under WDV Method
for the third year will be:
(a)
Rs. 40,000
(b)
Rs. 32,000
(c)
Rs. 25,600
(d)
Rs. 20,480
Ans. c
Explanation:
Original cost = 150000 + 50000 = Rs.200000
Rate of Dep. = [1 −4 √
81920
200000
] x 100 = 20%
Dep. for 3rd year = (200000 − 20% − 20%) x 20% = Rs. 25600
(9)
X Ltd. purchased a machine on 1st Jan for Rs. 2,40,000. Installation expenses were
Rs. 20,000. Residual value after 5 years Rs. 10,000. On 1st July, expenses for repairs
were incurred to the extent of Rs. 4,000. Depreciation is provided under straight line
method. Depreciation rate = 10%. Depreciation for 4th year will be:
MITTAL COMMERCE CLASSES
2|Page
(a)
Rs. 26,000
(b)
Rs. 34,000
(c)
Rs. 42,000
(d)
Rs. 50,000
Ans. a
Explanation:
Original Cost = 240000 + 20000 = Rs.260000
Depreciation = 260000 x 10% = Rs.26000
(10)
Date of purchase 1st July, Purchase Price of Machine Rs. 80,000, Installation Charges
Rs. 20,000, Residual Value Rs. 40,960, Useful life 4 years, Accounting year is
financial year. Date when Machine was put to use-1st Oct. Depreciation for the first
year under WDV method will be:
(a)
Rs. 20,000
(b)
Rs. 15,000
(c)
Rs. 10,000
(d)
Rs. None of these
Ans. c
Explanation:
Original Cost = Rs.80000 + Rs.20000 = Rs.100000
Rate of Dep. = [1 −4 √
40960
100000
] x 100 = 20%
Dep. For 1st year. = 100000 x 20% x
(11)
Which
(a)
(b)
(c)
(d)
6
12
= Rs.10000
of the following is not true:
Bad Debts are not recorded in Joint Venture A/c, if only cash sales are made.
Loss of Uninsured Goods is not recorded in Joint Venture A/c
Discount charges on discounting a B/R drawn upon a customer are not
recorded in Joint Venture A/c
Cash Discount received from suppliers of goods is recorded in Joint Venture
A/c
Ans. c
Explanation:
Discount charges on discounting a B/R drawn upon a customer are recorded in Joint
venture A/c
(12)
Closing Stock with X Rs. 26,400, with Y Rs. 60,000. In the books of X who is
recording all joint venture transactions (a)
Stock of Rs. 60,000 will be shown as closing credit balance in Y’s Account as
‘To Balance c/d’.
(b)
Stock of Rs. 26,400 will be shown as closing debit balance in Y’s Account as
‘By Balance c/d’.
(c)
Closing stock of Rs. 60,000 will not appear in Y’s Account.
(d)
None of these.
Ans. a
Explanation:
Stock of Rs.60000 will be shown as closing credit balance in Y’s Account as “To
Balance c/d”.
(13)
Loss of Joint Venture uninsured goods is (a)
debited to Joint Venture Account
MITTAL COMMERCE CLASSES
3|Page
(b)
credited to Joint Venture Account
(c)
debited to Profit & Loss Account
(d)
not recorded in Joint Venture Account
Ans. d
Explanation:
Loss of uninsured goods is not recorded in Joint Venture A/c.
(14)
A and B enter into a joint venture to underwrite the shares of X Ltd. to the extent of
80%, X Ltd. make an equity issue of 1,00,000 equity shares of Rs. 10 each, 80% of
the issue are subscribed by the public. The profit sharing ratio between A and B is
3:2. The balance shares not subscribed by the public are purchased by A and B in
profit sharing ratio. How many shares to be purchased by the co-venturers.
(a)
38,400 shares
(b)
16,000 shares
(c)
12,000 shares
(d)
9,600 shares
Ans. b
Explanation:
Subscribed by public = 100000 x 80% =80000 shares
Remaining shares = 100000 – 80000 = 20000
Share taken by Co ventures = 20000 x 80% = 16000
(15)
A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A
purchased goods costing Rs. 2,00,000. B sold 95% goods for Rs. 2,50,000. A is
entitled to get 1% commission on purchase and B is entitled to get 5% commission
on sales. Remaining goods are stolen. A’s share of profit on venture will be:
(a)
Rs. 15,300
(b)
Rs. 21,300
(c)
Rs. 18,900
(d)
None
Ans. b
Explanation:
Sale Price
250000
Less: Cost
(200000)
50000
Less: Commission
200000 x 1%
= (2000)
250000 x 5%
= (12500)
Net Profit
= 35500
A’s Share in Profit
= 35500 x 3/5
= Rs.21300
(16)
Stock lost due to fire, theft, flood etc. is (a)
Normal Loss
(b)
Abnormal Loss
(c)
Normal Gain
(d)
Abnormal Gain
Ans. b
Explanation:
Loss of stock due to avoidable reasons, is abnormal loss.
(17)
Consignee does not pass any entry for -
MITTAL COMMERCE CLASSES
4|Page
(a)
Goods sent on consignment
(b)
Profit/Loss on Consignment
(c)
Consignment Stock
(d)
All of the above
Ans. d
Explanation:
Consignee does not pass such entries.
(18)
X sent out goods of the invoice value at Rs. 7,50,000 to Y at cost plus 25%.
Consignor’s expenses Rs. 10,000. 1/10th of the goods were lost in transit. Insurance
claim received Rs. 6,000. The net loss on account of abnormal loss to be t/f to P & L
A/c is:
(a)
Rs. 55,000
(b)
Rs. 51,000
(c)
Rs. 61,000
(d)
Rs. 54,000
Ans. a
Explanation:
Let cost price be 100
Invoice price = 100 + 25 = 125
COGS 
750000
100  Rs .600000
125
Add: Consigner’s Exp. Rs. 10000
Total costs Rs. 610000
Lost goods = 610000 
1
 Rs .61000
10
Recovered value = Rs. 6000
Abnormal loss = 61000-6000 = Rs. 55000
(19)
Opening Consignment Stock Rs. 20,000. Goods sent out on consignment Rs.
4,00,000. Consignor’s expenses 10,000. Consignee’s expenses Rs. 4,000. Cash sales
Rs. 2,00,000. Credit Sales Rs. 2,20,000 Consignment stock Rs. 1,00,000. Ordinary
commission payable to consignee Rs. 5,600. Del-credere commission 2%. The
amount irrecoverable from customer Rs. 4,000. What will be the profit on
consignment.
(a)
Rs. 76,000
(b)
Rs. 80,000
(c)
Rs. 72,000
(d)
Rs. 86,000
Ans. c
Explanation:
Consignment A/c
Dr.
Cr.
Particulars
Rs. Particulars
Rs.
To Op. Stock
20000 By sales:
To Goods sent
Cash
200000
on consignment A/c
400000 Credit
220000
To Consignor’s Exp.
10000 By consignment Stock
100000
To Consignee’s Exp.
4000
To Commission
5600
To Del-Credere
8400
Commission
MITTAL COMMERCE CLASSES
5|Page
(420000 × 2%)
To Net profit (B/F)
72000
520000
(20)
520000
2000 kg of apples are consigned to a wholesaler, the cost being Rs. 3 per kg plus Rs.
800 of freight, it is known that a loss of 15% is unavoidable. The cost per kg will be:
(a)
Rs. 2.50
(b)
Rs. 4
(c)
Rs. 1.70
(d)
Rs. 1.50
Ans. b
Explanation:
Cost per unit 
(2000  3)  800  NIL  Rs.4
2000  15%
(21)
The Indian Partnership Act came into force on:
(a)
1.9.1872
(b)
1.7.1930
(c)
1.10.1930
(d)
1.10.1932
Ans. d
Explanation:
Name of the act is “The Indian Partnership Act, 1932”.
(22)
A partnership cannot be formed:
(a)
for carrying on a business
(b)
for carrying on a profession
(c)
for carrying on charitable activities
(d)
none of these
Ans. c
Explanation:
Partnership cannot be formed for carrying on charitable activities.
(23)
X and Y are partners sharing profits and losses in the ration of 3:2 having the capital
of Rs. 1,60,000 and Rs. 1,00,000 respectively. They are entitled to 9% p.a. interest
on capital before distributing the profits. During the year firm earned Rs. 15,600
before allowing any interest on capital. Profits apportioned among X and Y is:
(a)
Rs. 9,360 and Rs. 6,240
(b)
Rs. 9,600 and Rs. 6,000
(c)
Rs. 10,000 and Rs. 5,600
(d)
None of these
Ans. b
Explanation:
Int. an capital
‘X’ = 160000 × 9% = 14400
‘Y’ = 100000 × 9% = 9000
Total
23400
Share is to be distributed in capital Ratio i.e. 8:5, as profits are insufficient.
X’s share = 15600 
MITTAL COMMERCE CLASSES
8
 9600
13
6|Page
Y’s share = 15600 
(24)
5
 6000
13
The profits for Year I are Rs. 4,000; for Year II is Rs. 52,200 and for Year III is Rs.
62,400. Closing stock for Year II and Year III includes the defective items of Rs.
4,400 and Rs. 12,400 respectively, which were considered as having market value
NIL. The value of goodwill on weighted average profit method is:
(a)
Rs. 43,800
(b)
Rs. 35,400
(c)
Rs. 27,400
(d)
Rs. 34,600
Ans. a
Explanation:
Yr
Profits
I
4000
4000

II
52200 – 4400
47800

III
62400+4400-12400
54400

Applying weights:
Yr
Adj. Profit
I
4000
II
47800
III
54400
Weight
1
2
3
6
Weighted Avg. Adj. Profit =
(25)
Product
4000
95600
163200
262800
262800
 Rs .43800
6
Goodwill = 43800×1 = Rs.43800
A & B are partners sharing profits and losses in the ratio 5:3. On admission C brings
Rs. 1,40,000 for capital and Rs. 96,000 against goodwill. New profit sharing ratio
between A,B and C are 7:5:4. Find the sacrificing ratio of A:B.
(a)
3:1
(b)
4:7
(c)
5:4
(d)
2:1
Ans. a
Explanation:
A:B:C
Old Ratio
5:3:New Ratio
7:5:4
Sacrificing Ratio:
5 7
10  7
3
 

8 16
16
16
3 5
65
1
B  

8 16
16
16
A
Sacrificing Ratio = 3 : 1
(26)
B’s Trial Balance contains the following information: Bad debts Rs. 1,000, Provision
for Doubtful debts Rs. 1,500. It is desired to make a Provision for Doubtful Debts of
Rs. 2,000 at the end of the year. The amount to be debited to the Profit & Loss
Account is:
(a)
Rs. 4,500
MITTAL COMMERCE CLASSES
7|Page
(b)
Rs. 5,000
(c)
Rs. 1,500
(d)
Rs. 3,500
Ans. c
Explanation:
Provision now req. = 2000-1500
Bad debts
Amount debited to P&L A/c
(27)
(28)
=
=
=
Rs. 500
Rs.1000
Rs.1500
F’s Capital on January 1,20X2 Rs. 45,000, Interest on drawings Rs. 5,000, Interest
on capital Rs. 2,000, Drawings Rs. 14,000, Profit for the year Rs. 15,000. His capital
as on 31.12.20X2 is:
(a)
Rs. 67,000
(b)
Rs. 43,000
(c)
Rs. 47,000
(d)
Rs. 69,000
Ans. b
Explanation:
Closing capital → 45000 - 5000 + 2000 – 14000 + 15000 = Rs. 43000
I’s Trial balance contains the following information: 12% Bank loan Rs. 40,000,
Interest paid Rs. 3,800. Interest debited to the Profit & Loss Account is:
(a)
Rs. 4,800
(b)
Rs. 5,000
(c)
Rs. 5,500
(d)
Rs. 1,000
Ans. a
Explanation:
Interest debited to P&L A/c = 40000×12% = Rs. 4800
(29)
Adjusted Purchases Rs. 6,63,600, Sales Rs. 7,44,000, Closing Stock Rs. 50,400,
Freight & Cartage Inward Rs. 3,600, Wages Rs. 2,400, Freight & Cartage outward Rs.
1,800. Gross Profit for the year is:
(a)
Rs. 76,200
(b)
Rs. 74,400
(c)
Rs. 1,24,800
(d)
None
Ans. b
Explanation:
Gross profit = 744000 – 663600 – 3600 - 2400 = Rs. 74400
(30)
Opening Stock Rs.1,00,000, Sales Rs. 5,00,000, Gross profit @25% on cost,
Purchases Rs. 6,00,000. Closing Stock is:
(a)
Rs. 1,25,000
(b)
Rs. 2,25,000
(c)
Rs. 3,00,000
(d)
Rs. 3,25,000
Ans. c
Explanation:
Let cost = 100
SP = 100 + 25% = 125
MITTAL COMMERCE CLASSES
8|Page
COGS 
500000
100  Rs .400000
125
Closing stock → 100000 + 600000 – 400000 = Rs. 300000
(31)
Contract, which ceases to be enforceable by law becomes a/an(a)
Unenforceable Contract
(b)
Void Agreement
(c)
Void Contract
(d)
Voidable Contract.
Ans. c
Explanation: Section 2(j) defines void contract as a contract which ceases to be
enforceable by law.
(32)
A proposes by letter, to sell his house to B at Rs. 10000. Communication of the
proposal is complete when
(a)
A posts the letter
(b)
B receives the letter
(c)
B acknowledges to A that he has received the letter.
(d)
(b) or (c) , whichever is earlier
Ans. b
Explanation: As per Sec- 4, the communication of an offer is complete when it comes
to the knowledge of the person to whom it is made.
(33)
Which of the following is an offer?
(a)
Mere quotation of terms by trader
(b)
Quotation of the lowest price in answer to an enquiry
(c)
Advertisement for sale or auction of goods
(d)
Bids in an auction sale
Ans. d
Explanation: Auction sale is invitation to offer but bids made by bidder under auction
sale is termed as offer.
(34)
When
(a)
(b)
(c)
(d)
Silence may be treated as Acceptance.
When Party binds other party
When it is liability to speak
When it is public matter
None out of these
Ans. b
Explanation: because Silence cannot be treated as acceptance unless it was liability
of party to speak.
(35)
Promise made with intention of not to perform is :(a)
Fraud
(b)
Coercion
(c)
under influence
MITTAL COMMERCE CLASSES
9|Page
(d)
mis-statement
Ans. a
Explanation: Because as per Sec. 17(3) promise mode with intention of not to
perform will be fraud.
(36)
K obtained a release deed from his wife and son under a threat of committing
suicide. The transaction can be set aside on the ground of(a)
Coercion
(b)
Undue Influence
(c)
Mistake
(d)
Fraud
Ans. a
Explanation: As per Sec. 15 "Coercion" is the committing, or threatening to commit
any act forbidden by Indian penal code, or the unlawful detaining or threatening to
detain any property, to the prejudice of any person (1) whatever with the intention
of coursing any person to enter into an agreement. And suicide comes under
"Coercion".
(37)
The burden of proof that the consent was obtained by Coercion lies on —
(a)
the person who wants to relieve himself of the consequences of coercion.
(b)
the person who employs the coercion
(c)
either-(a) or (b)
(d)
both (a) and (b)
Ans. a
Explanation: The burden of proof that the consent was obtained by Coercion lies on
the person who wants to relieve himself of the consequences of coercion.
(38)
A girl who lost her parents lived with her cousin brother who was in the position of
her parents. She executed an unconscionable gift deed in his favour. This gift deed
can be set aside on grounds of-.
(a)
Mistake.
(b)
Undue Influence.
(c)
Fraud
(d)
Coercion.
Ans. b
Explanation: As per sec. 16, A contract is said to be induced by "Undue influence".
Where the relations subsisting between parties are such that one of the parties is in
a position to dominate the will of the other and uses that position to obtain an unfair
advantage of the other. A person is deemed to be in a position to dominate the will
of the other, when he holds authority real or apparent authority over the other, or
when he stands in a fiduciary relation to the other.
(39)
Mistake as to Foreign Law is treated in the same manner as –
(a)
Mistake of Indian Law
MITTAL COMMERCE CLASSES
10 | P a g e
(b)
(c)
(d)
Mistake of fact
Misrepresentation
Fraud
Ans. b
Explanation: Mistake as to foreign law is treated in the same manner as mistake of
fact. (Section – 20)
(40)
K gave a loan to the guardian of a Minor to enable him to celebrate the Minor’s
marriage in contravention of Child Marriage Restraint Act. The agreement is —
(a)
Valid
(b)
Valid if ratified by the Minor
(c)
not enforceable
(d)
voidable
Ans. c
Explanation: The agreement is not enforceable because it is forbidden by law due to
unlawful of consideration as well as object in the agreement.
(41)
A promises to paint a picture for B by a certain day at a certain price. A dies before
the promised day. Which one of the following is the correct legal position?
(a)
The agreement becomes unlawful
(b)
The agreement lapses for both the parties
(c)
The agreement becomes voidable at the option of A’s legal representative
(d)
The agreement is void ab-initio.
Ans. b
Explanation: Agreement based on personal skill cannot be enforceable after the
death of the party. Hence, it lapses for both the parties.
(42)
A contract to marry a person shall be performed by —
(a)
Promisor himself
(b)
Representative of the Promisor competent to perform
(c)
A third person
(d)
Any of the above.
Ans. a
Explanation: Contract which involve the exercise of personal skill or diligence, or
which are founded on personal confidence between the parties must be performed by
the promisor himself.
(43)
“Delivery” as defined under Section 2(2) of the sale of Goods Act, means voluntary
transfer of
(a)
Possession
(b)
Ownership
(c)
Risk
(d)
All of the above
MITTAL COMMERCE CLASSES
11 | P a g e
Ans. a
Explanation: As per section -2(2) of the Sale of Goods Act, delivery means voluntary
transfer of possession by one person to another.
(44)
Which
(a)
(b)
(c)
(d)
is an instance of Symbolic Delivery of Goods —
Abandonment by a person who is in possession of the goods
Transfer of a Bill of Lading
Physical Delivery of goods
All of the above
Ans. b
Explanation: Symbolic Delivery - When there is a delivery of a thing in token of a
transfer of something else, i.e., delivery of goods in case of transit may be made by
handing over documents of title to goods, like bill of lading or railway receipt or
delivery orders or the key of a warehouse containing the goods is handed over to
buyer.
(45)
Which
(a)
(b)
(c)
(d)
of these is not a Document of Title of Goods?
Multimodal Transport Document
Bill of Lading
Promissory Note
Railway Receipt
Ans. c
Explanation: Promissory Note is not a document of title of goods, because it is a
indebt certificate of particular amount/debt.
(46)
Under the Sale of Goods Act “.... Goods” means goods which not yet in existence at
the time of making the contract of sale
(a)
Ascertained Goods
(b)
Future Goods
(c)
Specific Goods
(d)
Perishable Goods
Ans. b
Explanation: As per section -2(6) of the Sale of Goods Act, future goods means
goods to be manufactured or produced or acquired by the seller after making the
contract of sale.
(47)
A, a fisherman, agrees to sell B, a certain type of fish, provided there is no cyclonic
storm. The goods are
(a)
Future goods
(b)
Specific goods
(c)
Unascertained Goods
(d)
Contingent Goods
Ans. d
MITTAL COMMERCE CLASSES
12 | P a g e
Contingent goods are such goods availability of which depends upon future
contingency of event. Here in the given question the goods are not future but
depends upon contingent event i.e., cyclonic storm.
(48)
In case the acquisition of goods by the Seller depends upon a contingency which
may or may not happen —
(a)
It is an invalid agreement.
(b)
It is a valid agreement to sell.
(c)
It is a valid contract of Sale.
(d)
It is a illegal and void agreement.
Ans. b
Explanation: As per section – 4 (3) of the Sale of Goods Act, where under a contract
of sale the transfer of the property in the goods is to take place at a future time or
subject to some condition thereafter to be fulfilled, the contract is called an
agreement to sell.
(49)
A, B & C were 3 Partners in a Partnership Firm Sharing Profits & Loss equally. Their
Capital contribution were Rs. 20,000, Rs. 10,000 & Rs. 2000 respectively. Firm is
dissolved & C could not pay anything and firm realised only Rs. 20,000 from its
property. Calculate the total amount of Loss to be borne by A :
(a)
Rs. 5333
(b)
Rs. 5000
(c)
Rs. 6000
(d)
Rs. 8000
Ans. a
Explanation: Rs. 5333
(50)
Promotion of litigation in which one had no interest is
(a)
Champerty
(b)
Maintenance
(c)
Stifing litigation
(d)
None of the above
Ans. b
Explanation: Maintenance.
(51)
_________________ is the apex bank for agriculture credit in India.
(a)
RBI
(b)
SIDBI
(c)
NABARD
(d)
ICICI
Ans. c
(52)
Mahalanobis model stressed upon the establishment of
(a)
consumer goods industries
(b)
export oriented industries
(c)
agro-based industries
MITTAL COMMERCE CLASSES
13 | P a g e
(d)
capital and basic goods industries
Ans. d
(53)
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
Ans. b
(54)
The industrial sector faced the process of retrogression and deceleration during
(a)
1950-1965
(b)
1990-2005
(c)
1980-1995
(d)
1965-1980
Ans. d
(55)
The service sector in
(a)
more than 80
(b)
more than 70
(c)
more than 50
(d)
more than 90
Ans. c
(56)
BPO stands for
(a)
Bharat Petro Organisation
(b)
Business Process Outsourcing
(c)
Big Portfolio outsourcing
(d)
Business Partners Organisation
Ans. b
(57)
Which
(a)
(b)
(c)
(58)
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
Ans. c
(59)
Per capita national income means
(a)
NNP ÷ population
(b)
Total capital ÷ population
(c)
Population ÷ NNP
(d)
None of the above
Ans. a
India now accounts for
per cent of GDP
per cent of GDP
per cent of GDP
per cent of GDP
of the following is incorrect?
GDP at market price =GDP at factor cost plus net indirect taxes.
NNP at factor cost = NNP at market price minus net indirect taxes.
GNP at market price = GDP at market price plus net factor income from
abroad.
(d)
none of the above.
Ans. d
MITTAL COMMERCE CLASSES
14 | P a g e
(60)
Find the tax which is direct tax among the following:
(a)
Personal income tax
(b)
Excise duty
(c)
Sales tax
(d)
Service tax
Ans. a
(61)
Among the following types of taxes, find the one which is indirect?
(a)
Gift tax
(b)
Corporate income tax
(c)
VAT
(d)
Wealth tax
Ans. c
(62)
At present only ___________ industries are reserved for the public sector.
(a)
5
(b)
7
(c)
8
(d)
2
Ans. d
(63)
At present, 100 per cent FDI is allowed in _______________.
(a)
defence
(b)
drugs and pharmaceuticals
(c)
banks
(d)
insurance
Ans. b
(64)
Which of the following is also known as International Bank for Reconstruction and
Development?
(a)
IMF
(b)
RBI
(c)
WTO
(d)
World Bank
Ans. d
(65)
FERA stands for
(a)
Foreign Export Revaluation Act
(b)
Funds Exchange Resources Act
(c)
Finance and Export Regulation Association
(d)
Foreign Exchange Regulation Act.
Ans. d
(66)
EPCG stands for
(a)
Export Promotion Capital Goods
(b)
Expert Programme for Credit Generation
(c)
Exchange Programme for Consumer Goods
(d)
Export Promotion Consumer Goods
Ans. a
(67)
CENVAT stands for
(a)
Common Entity Value Added Tax
(b)
Corporate Entities Value Added Tax
MITTAL COMMERCE CLASSES
15 | P a g e
(c)
Central Value Added Tax
(d)
None of the above
Ans. c
(68)
The FRBMA stands for
(a)
Foreign Regulation and Budget Management Act.
(b)
Fiscal Responsibility and Budget Management Act.
(c)
Finance Regulations and Bonds Management Association.
(d)
Funds Reallocation and Budget Management Act.
Ans. b
(69)
___________ refers to disposal of public sector’s units in equity in the market.
(a)
Globalisation
(b)
Privatisation
(c)
Disinvestment
(d)
Liberalisation
Ans. c
(70)
SEZ Act came into effect in ______.
(a)
2002
(b)
2003
(c)
2006
(d)
2007
Ans. c
(71)
FDI is allowed in all of the following except:
(a)
Lottery business
(b)
Banking operations
(c)
Insurance
(d)
Air transport services
Ans. d
(72)
Saturation point means:
(a) TU is rising, and MU is falling
(b) TU is falling and MU is negative
(c) TU is maximum and MU is zero
(d) Falling MU curve
Ans. c
Explanation: Saturation point means TU is maximum and MU is zero
(73)
A downward sloping curve can have the following shape:
(a) Convex
(b) Concave
(c) Straight line
(d) All of the above
Ans. a
(74)
Which of the following is the property of indifference curves?
(a) They are downward sloping
(b) They are convex to the origin
(c) They are non-intersecting
(d) All of the above
Ans. d
MITTAL COMMERCE CLASSES
16 | P a g e
(75)
An upward movement along a supply curve shows:
(a) Contraction is supply
(b) Decrease in supply
(c) Expansion in supply
(d) Increase in supply
Ans. c
(76)
The points A (7,3)and C (0,-4) are two opposite vertices of a rhombus ABCD. Find the equation
of diagonal AC.
(a)
2x+2y–3=0
(b)
x–y+3=0
(c)
y–x+4=0
(d)
None of these
Ans. c
Explanation :
A(7, 3)
C(0, –4)
4  3
(x  7)
07
7
y  3  (x  7)
7
y3  x 7
xy4 0
(y  3) 
(77)
The equation of the line passes through (a, b) and parallel to the line
(a)
(b)
(c)
(d)
x y
  1 is
a b
x y
 3
a b
x y
 2
a b
x y
 0
a b
none of these
Ans. b
Explanation :
x y
b
  1  bx  ay  ab  y   x  b
a b
a
b
 slope of line is 
a
b
 Required equation is y  b   (x  a)
a
 ay  ab  bx  ab
 bx  ay  2ab
MITTAL COMMERCE CLASSES
17 | P a g e

(78)
x y
 2
a b
Find out sum of the roots of equation 3x 2  (5m  2)x  m  0 if one root is reciprocal to other.
15
(a)
2
13
(b)
3
5m  2
(c)
3
(d)
3
Ans. b
Explanation :
Given equation is 3x 2  (5m  2)x  m  0
(5m  2)
Sum of the roots =
3
We know that if roots are reciprocal to each other then
So
m
1 m  3
3
So sum of the roots
(79)
c
 1 of ax 2  bx  c  0
a
(5  3  2) 13

3
3
The shaded region represents:
(a)
3 x  2 y  24, x  2 y  16, x  y  10 x, x  0, y  0,
(b)
3 x  2 y  24, x  2 y  16, x  y  10, x  0, y  0
(c )
3 x  2 y  24, x  2 y  16, x  y  10, x  0, y  0
(d)
None
Ans. c
Explanation:
Region represented by the line 3x + 2y = 24 meets the coordinate axes at (8,0) and
(0,12). Since the shaded region lies below the line 3x+2y=24 therefore it is
represented by less than or equal to sign i.e. 3x+2y< 24.
MITTAL COMMERCE CLASSES
18 | P a g e
Similarly for th eline x+2y = 16 the shaded region lies below the line therefore it is
represented by less than or equal to sign i.e. x+2y<16
Clearly X > 0 and y > 0 represents the region lying on the right side of y axis and
above x axes.
(80)
A square is drawn by joining mid-points of the sides of a square. Another square is
drawn inside the second square in the same way and the process is continued
indefinitely. If the side of the first square is 16 cm, then what is the sum of the areas
of all the squares ?
(a)
341 sq. cm
(b)
512 sq. cm
(c)
1024 sq. cm
(d)
512
sq. cm
3
Ans. b
Explanation:
Required sum
= 16  
2
= 16 
2
1
162  1 162  ....
2
4
 1 1

1  2  4  ...





1 
2
 512 sq. cm
= 16  
1
1  
 2
(81)
In a football championship 153 matches were played. Every team played one match
with each other team. How many teams participated in the championship ?
(a)
21
(b)
18
(c)
17
(d)
15
Ans. b
Explanation:
nc 2  153
nn  1
 153
2
n  18
(82)
What is the number of ways of arranging the letters of the word "BANANA" so that
no two N's appear together ?
(a)
40
(b)
60
(c)
80
(d)
100
Ans. a
MITTAL COMMERCE CLASSES
19 | P a g e
Explanation:
No. of ways that can be formed by using the word 'BANANA' =
No. of ways in which two N comes together =
6!
 60
3!2!
5!
 20
3!
 Required No. of ways = 60–20 = 40
(83)
In a city, three daily news paper A, B and C are published, 42% read A, 51% read B,
68% read C, 30% read A and B, 28% read B and C, 36% read A and C, 8% do not
read any of the three newspapers. What is the percentage of person who read only
one paper ?
(a)
38%
(b)
48%
(c)
51%
(d)
None
Ans. b
Explanation:
By formula
n A  B  C   n A  nB  nC   n A  B  nB  C   n( A  C)  n A  B  C 
92%
= 42% + 51% + 68% – 30% – 28% – 36% +
n A  B  C  = 25%
n A  B  C 
U
B
A
5%
1%
18%
25%
3%
11%
29%
C
The percentage of persons who read only one paper
= 1% + 18% + 29% = 48%
(84)
In what time will Rs.800 amount to Rs.926.10 at 10% per annum interest
compounded half yearly?
(a)
3 year
1
(b)
1 year
2
1
(c)
2 year
(d)
2 year
3
1
2
MITTAL COMMERCE CLASSES
20 | P a g e
Ans: (b)
Explanation:
A = 𝑃 (1 +
𝑟
100
)
𝑛
926.10 = 800 (1 +
9261
8000
= (1 +
21 3
1
20
5
100
)
2n
2n
)
21 2n
(20) = (20)
∴ 2n = 3
1
n = 1 Year
2
(85)
There are deer and peacocks in a Zoo. By counting heads they are 80. The number
of their Legs is 200. How many peacocks are there?
(a)
30
(b)
50
(c)
60
(d)
20
Ans: (c)
Explanation:
Let the no. of deer and peacocks are 𝑥 and 𝑦
𝑥 + 𝑦 = 80.......................(i)
4𝑥 + 2𝑦 = 200.......................(i)
By solving the eqn (i) and eqn (ii)
y = 60
(86)
If 𝑥 = 7 + 4√3, 𝑦 = 7 − 4√3, what is the value of
1
𝑥2
+
1
𝑦2
.
(a)
194
(b)
198
(c)
212
(d)
196
Ans. (a)
Explanation:
1
𝑥2
1
2
+ 𝑦 2 = (7 − 4√3) + (7 + 4√3)
2
= 49 + 48 + 49 + 48
= 194
(87)
1
1
1
1
3
4
5
80
log 3 (1 + ) + log 3 (1 + ) + log 3 (1 + ) +--------------------+log 3 (1 +
(a)
5
(b)
2
(c)
3
(d)
4
Ans. (c)
Explanation:
4
5
6
81
3
4
5
80
)=
log 3 ( ) + log 3 ( ) + log 3 ( ) +-------------------+log 3 ( )
MITTAL COMMERCE CLASSES
21 | P a g e
4
3
= log 3 ( x
5
4
6
81
x 5 x − − − − − − − 80)
= log 3 27 = 3
(88)
If N be the set of natural numbers and
f : N  N be a function given by
f x  x  1 for x  N , then which one of the following is correct ?
(a)
f is one-one and onto
(b)
f is one-one and into
(c)
f is many-one and onto
(d)
f is many-one and into
Ans. b
Explanation:
f x  x  1 if x, x2  N

f x1   f x2 
x1  1  x 2  1
x1  x 2
 f x  is one-one but
Range of f x  N  
1 so f(x) is into function
then
(89)
Which of the following statements is true for tabulation ?
(a)
Statistical analysis of data requires tabulation
(b)
It facilitates comparison between rows and columns
(c)
Diagrammatic representation of data requires tabulation
(d)
All of these
Ans. d
Explanation:
(90)
Let L be the lower class boundary of a class in a frequency distribution and may be
the mid-point of the class. Which one of the following is the higher class boundary of
the class ?
(a)
(b)
mL
2
mL
L
2
m
(c)
2m–L
(d)
m–2L
Ans. c
Explanation:
X=
LCL  UCL L  UCL

M
2
2
UCL = 2m - L
(91)
The weighted arithmetic mean of first n natural numbers whose weights are equal to
the corresponding numbers is equal to :
(a)
2n  1
3
MITTAL COMMERCE CLASSES
22 | P a g e
2n  1
6
2n  1
3
(b)
(c)
(d)
None of the above
Ans. c
Explanation:
x
1
2
f
1
2
3
3
...
...
n
n
fx:
32
...
n2
12
22
nn  12n  1
2n  1
6
Mean =
.

nn  1
3
2
(92)
Total
nn  1
2
nn  1 2n  1
6
Geometric mean of 2, 4, 8 ... 2n.
(a)
2n+1/2
(b)
2n–1/2
(c)
2n/2
(d)
22/n
Ans. a
Explanation:

Gm = 2  2  2  ....2
2
3

1
n n
 2 n 1 / 2
(93)
Age of applicants for life insurance and the premium of insurance-correlation are :
(a)
positive
(b)
negative
(c)
zero
(d)
None
Ans. a
Explanation:
(94)
If
10
 x;4  50,
 xi  1 
= ?
2 
i 1
10
then the value of
i 1
 
(a)
80
(b)
72
(c)
40
(d)
20
Ans. c
Explanation:
 xi  1  50  30
 40
=
2
2 
i 1
10
 
MITTAL COMMERCE CLASSES
23 | P a g e
(95)
In a binomial distribution with 6 independent trails, the probability of 3 and 4
successes are found to be 0.2457 and 0.0819, respectively. Find the parameter 'P' of
the binomial.
(a)
3/13
(b)
4/13
(c)
5/13
(d)
6/13
Ans. b
Explanation:
px  3  6 C3 p 3 q 3  0.2457
px  4  6 C4 p 4 q 2  0.0819
20 q = 45 p
p=
4
13
(96)
If the 1st quartile and the mean deviation about median of a normal distribution are
13.25 and 8, respectively, then the mode of the distribution is :
(a)
20
(b)
10
(c)
15
(d)
12
Ans. a
Explanation:
Q1 =m–0.675 s = 13.25
MD = 0.8 s = 8
s = 10
m = 20
mode = 20
(97)
During a certain period the cost of living Index number goes up from 110 to 200 and
the salary of the worker is also raised form Rs. 325 to Rs. 500. Does the worker :
(a)
gain
(b)
looses
(c)
fully compensated
(d)
gain lay 10%
Ans. b
Explanation:
Revised salary =
200
 325  590.90
110
It means worker is in loss.
(98)
P1Q1  248, P0Q0  150, Paasche's index number = 150 and Dorbish-Bowley's index
number = 145. Then the Fisher's ideal index number is:
(a)
75
(b)
144.91
(c)
145.97
(d)
None of these
Ans. b
Explanation:
MITTAL COMMERCE CLASSES
24 | P a g e
Dorbish-Bowley's index number =
LP
 145
2
L = 290 – P = 140
f=
(99)
L  P  140 150  144.91
If u = 2x+5, v=–3y +1, and the regression coefficient of y on x is – 1.2, the
regression coefficient of v on u is :
(a)
1.8
(b)
–1.8
(c)
3.26
(d)
0.8
Ans. a
Explanation:
bvu 
=
p
 byx
q
3
 1.2  1.8
2
(100) In poisson distribution mean is always greater than it's variance.
(a)
True
(b)
False
(c)
Both
(d)
None of these
Ans. b
Explanation:
***
MITTAL COMMERCE CLASSES
25 | P a g e