VIDYA SAGAR CAREER INSTITUTE LIMITED

CPT Major Test – 2 (Part – A) Series 2

Instruction: Maximum Marks: 100

1. Use HB Pencil to fill ovals for correct answer. Time : 2 Hours

2. Each question carry one mark. Date : 01.12.2014

3. Negative marking .25 marks

4. No negative marking for unattempted questions.

___________________________________________________

1. Consignment A/c is prepared in the book of: (a) Consignor (b) Consignee (c) Third party (d) None of these 2. What entry is required to be passed to nullify the effect of Loading: (a) Goods sent on consignment A/c Dr. To Trading A/c (b) Goods sent on consignment A/c Dr. To Consignment A/c (c) Consignment A/c Dr. To goods sent on consignment A/c (d) None of these 3. X sent out certain goods to Y of Delhi. 1/10 of the goods were lost in transit. Invoice value of goods

lost Rs 12,500. Invoice value of goods sent out on consignment will be: (a) ` 1,20,000 (b) ` 1,25,000 (c) ` 1,40,000 (d) ` 1,00,000 4. Suresh of Delhi consigned 600 fans to Naresh of Agra 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 and cartage. Rs. 2000 as rent; and Rs. 1500 as insurance. 500 fans were sold by Naresh for Rs. 1,80,000 Naresh was entided to a commission of 4% on sale @ Rs. 350 per fan and 20% of any surplus price realized. Consignment profit will be

(a) ` 12,250 (b) ` 12,000 (c) ` 10,000 (d) ` 13,000 5. Goods sent out on consignment Rs. 2,00,000.Consignor's expenses Rs. 5,000. Consignee's expenses

Rs. 2,000.Cash sales Rs. 1,00,000, credit sales Rs. 1,10,000. Consignment stock Rs. 40,000. Ordinary commission payable to consignee Rs. 3,000. Del-credere commission Rs. 2,000.The amount irrecoverable from customer Rs. 2,000.What will be the profit on consignment?

(a) ` 38,000 (b) ` 40,000 (c) ` 36,000 (d) ` 43,000 6. Rabin consigned goods for the value of Rs.8,250 to Raj of Kanpur and paid freight etc. of Rs.650 and

insurance Rs.400. He drew a bill on Raj for 3 months after date for Rs. 3,000 as an advance against consignment, and discounted the bill for Rs.2,960. Further, he received Account sales from Raj showing that, part of the goods had realized gross Rs. 8,350 and that his expenses and commission amounted to Rs. 870. The stock unsold was valued at Rs. 2750. Consignee wants to remit a draft for the amount due. The amount of draft will be:

(a) ` 2,130 (b) ` 4,480 (c) ` 5,130 (d) ` 5,090

7. Advise which of the statement is true: (a) The Joint Venture can be formed by a single person only. (b) A legal deed should be drafted before forming Joint Venture. (c) The profit to be shared between the venturer is agreed ratio. (d) Joint Venture follows going concern concept. 8. R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the

profit and losses equally. R purchased goods worth Rs 1,00,000 and spent Rs 10,000 in sending the goods to M. He also paid Rs 5,000 for insurance. M spent Rs 10,000 as selling expenses and sold goods for Rs. 2,00,000. Remaining goods were taken over by him at Rs 5,000. Find out profit on venture.

(a) ` 70,000 (b) ` 75,000 (c) ` 80,000 (d) ` 85,000 9. C of Calcutta and D of Delhi entered into a joint venture for the purpose of buying and selling

second-hand motor cars. C to make purchases and D to effect sales. A sum of Rs. 1,00,000 was sent by D to C for this joint venture. C purchases 10 cars for Rs. 80,000 and spent Rs. 43,500 for their reconditioning and dispatched them to Delhi. His other expenses were. 2½% purchase commission and miscellaneous expenses Rs. 250. D spent Rs. 7,500 as railway freight and Rs. 3,750 an Octroi at the time of taking delivery. He sold all the cars for Rs. 1,88,500. His expenses were Insurance Rs. 1,500; Garage rent Rs. 2,500; Brokerage Rs. 6,850 and other expenses Rs. 4,500. Profit of venture on will be

(a) ` 36,150 (b) ` 36,000 (c) ` 35,000 (d) None of the three 10. When unsold stock is taken away by a co - venture, then _______ account is debited : (a) Joint Stock (b) Joint Venture (c) Joint Bank Account (d) Co - ventures capital account 11. Which of the following statement is false: (a) B/R is a negotiable instrument (b) B/R must be accepted by drawee (c) There can be three parties in respect of bills of exchange- drawer, drawee & payee (d) Oral bill of exchange is also valid. 12. A draws a bill of Rs.10,000 on B on 23rd December, 2009 for one month. The bill is accepted on 25th

December, 2009 by B. The maturity date of the bill will be: (a) 26th January, 2010. (b) 28th January, 2010. (c) 27th January, 2010. (d) 25th January, 2010. 13. On 10.05.2010, A draws a bill on B for Rs. 50,000 for 40 days. June 22 is a public holiday. The

maturity date of the bill will be (a) 21 June, 2010 (b) 23 June, 2010 (c) 22 June, 2010 (d) 19 June, 2010 14. When a bill is renewed, then entry will be: (a) No entry will be passed (b) Entries for cancellation of old bill and renewal of bill (c) Entry for renewal of bill (d) None of these

15. On 1st January 2006 Shilpa owes Rs. 10,000 and accepts a 3 Month bill for the amount. On the

maturity date shilpa was not able to meet the bill. She pays Rs. 4000 and asks to draw another bill for three months for the balance amount with interest @ 15% p.a. The amount of interest will be :

(a) Rs. 200 (b) Rs. 225 (c) Rs. 500 (d) Rs. 900 16. P sold goods to Q for Rs. 2,00,000. Q paid cash Rs. 60,000. P allowed 2% discount on balance and

requested to draw a bill for the balance amount. The amount of the bill will be_______________. (a) Rs. 1,96,000 (b) Rs. 1,37,200 (c) Rs. 1,37,000 (d) Rs. 1,36,000 17. A draws a bill on B for Rs. 30,000. A wants to endorse it to C in settlement of Rs. 35,000 at 2%

discount with the help of B's acceptance and balance in cash. How much cash A will pay to B? (a) Rs. 4,300 (b) Rs. 4,000 (c) Rs. 4,100 (d) Rs. 5,000 18. A trader has credited certain items of sales on approval aggregating Rs.60,000 to Sales Account. Of

these, goods of the value of Rs.16,000 have been returned and taken into stock at cost Rs.8,000 though the record of return was omitted in the accounts. In respect of another parcel of Rs.12,000 (cost being Rs.6,000) the period of approval did not expire on the closing date. Cost of goods lying with customers should be

(a) Rs. 12,000. (b) Rs. 54,000. (c) Rs. 6,000. (d) None of the above. 19. X. Y and Z are partners in a firm. At the time of division of profit for the year there was dispute

between the partners. Profits before interest on partner's capital was Rs. 6,000 and Z demanded minimum profit of Rs. 5,000 as his financial position was not good. However, there was no written agreement. Profits to be distributed to X, Y and Z will be.

(a) Other partners will pay Z the minimum profit and will suffer loss equally. (b) Other partner will pay Z the minimum profit and will suffer loss in capital ratio. (c) X & Y will take Rs. 500 each and Z will take Rs. 5,000 (d) Rs. 2,000 to each of the partners. 20. A, B and C had capital of Rs. 50,000, Rs. 40,000 and Rs. 30,000 respectively for carrying on business

in partnership. The firm's reported profit for the year was Rs. 80,000. As per provision of the Indian Partnership Act, 1932, find out the share of each partner in the above amount after taking into account that no interest has been provided on an advance by A of Rs. 20,000, in addition to his capital contribution.

(a) Rs. 26,267 for partner B and C & Rs. 27,466 for partner A. (b) Rs. 26,667 each partner. (c) Rs. 33,333 for A, Rs. 26,667 for B and Rs. 20,000 for C. (d) Rs. 30,000 each partner.

21. A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw

Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will be

(a) Rs.650. (b) Rs.975 (c) Rs.900 (d) Rs.1,800 22. What do you mean by Super Profit ? (a) Total profit / Number of years (b) Weighted profit / number of years (c) Average profit - Normal profit (d) None

23. Weighted average method of calculating goodwill is used when : (a) Profits are unequal (b) Profit has increasing trend (c) Profit has decreasing trend (d) (b) and (c) 24. The profit and losses for the last years are 2007-08 losses Rs. 10,000; 2008-09 losses Rs. 2,500;

2009-10 profits Rs. 98,000 & 2010-11 profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month not charged in the above losses/profits. Calculate the value of goodwill on the basis of two years purchase of super profits based on the average of four years. (a) Rs. 9,000 (b) Rs. 8,750

(c) Rs. 8,650 (d) Rs. 8,250 25. Amit and Anil are partners of a partnership firm sharing profits in the ratio of 5:3 respectively. Atul

was admitted on the following terms: Atul would pay Rs. 50,000 as capital and Rs. 16,000 as Goodwill, for 1/5th share of profit. Machinery would be appreciated by 10% (book value Rs. 80,000) and building would be depreciated by 20% (Rs. 2,00,000). Unrecorded debtors of Rs. 1,250 would be brought into books now and a creditors amounting to Rs. 2,750 died and need not to pay anything to its estate. Find the distribution of profit/loss on revaluation between Amit, Anil and Atul.

(a) Loss-Rs. 17,500: Rs. 10,500:0. (b) Loss- Rs. 14,000: Rs. 8,400: Rs. 66,000 (c) Profit- Rs. 17,500: Rs. 10,500:0 (d) Profit- Rs. 14,000: Rs. 8,400: Rs. 5,600 26. 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 27. In Balance sheet ______ is not shown (a) Authorised Capital (b) Un-issued capital (c) Subscribed capital (d) Paid-up capital 28. How unrecorded assets are treated at the time of retirement of a partner? (a) Credited to revaluation account (b) Credited to capital account of retiring partner only (c) Debited to revaluation account (d) Credited to partner's capital account 29. A, B and C were partners sharing profit and losses in the ratio of 3:2:1. A retired and firm received

the joint life policy as Rs. 7,500 appearing in the balance sheet at Rs. 10,000. JLP is credited and cash debited with Rs. 7,500, what will be the treatment for the balance in Joint Life Policy?

(a) Credited to partner's current account in profit sharing ratio. (b) Debited to revaluation account. (c) Debited to partner's capital account in profit sharing ratio. (d) Either (b) or (C) 30. A, B and C are the partners sharing profits in the ratio 4 : 3 : 2. C died on 30.06.2010 and profits for

the accounting years 2009-10 were Rs. 72000. How much share in profits for the period 1st April, 2010 to 30th June 2010 will credited to C's account :

(a) Rs. 4,000 (b) Rs. 16,000 (c) Rs. 18,000 (d) Rs. 12,000

31. Private Company should have a minimum paid-up capital of (a) Rs. 1 lakh (b) Rs. 5 lakhs (c) Rs. 10 lakhs (d) Rs. 50 lakhs 32. As per the Companies Act only preference shares, which are redeemable within __________ can be

issued: (a) 24 years (b) 30 years (c) 25 years (d) 20 years 33. Aditya Ltd. issued equity shares of 50,000 shares of Rs. 10 each for subscription. 40,000 shares were

subscribed by the public by paying Rs. 3 as application money. Number of shares allotted to public by Aditya Ltd. will be

(a) 50,000 shares. (b) 40,000 shares. (c) 30,000 shares. (d) 10,000 shares. 34. E Ltd. had allotted 10,000 shares to the applicants of 14,000 shares on pro rata basis. The amount

payable on application is Rs.2. F applied for 420 shares. The number of shares allotted and the amount carried forward for adjustment against allotment money due from F will be

(a) 60 shares; Rs.120 (b) 340 shares; Rs.160 (c) 320 shares; Rs.200 (d) 300 shares; Rs.240 35. A company invited application for 25,000 equity shares of Rs.10 each and received 30,000

application along with the application money of Rs. 4 per share. Which of the following alternatives can be followed?

i. Refund the excess applications. ii Make pro rata allotment to all the application, and refund the excess application money. iii Not to allot any shares to some applicants, full allotment to some of the applicants and

prorata allotment to the rest of the applicants. iv. Not to allot any shares to some applicants and make pro rata allotment to other applicants. v. Make pro rata allotment to all the applicants and adjust the excess money received towards

call money. (a) Only (II) above (b) Both (I) and (IV) above (c) All (I),(II),(III),(IV) and (V) above (d) Only (III) above 36. Jain & Co. forfeited 50 shares of Rs. 10 each. Rs.8 called up on which application money of Rs. 5 per

share was paid. The entry for forfeiture is. (a) Share Capital A/c Dr. 400 . To Share premium A/c 150 To share allotment A/c 250 (b) Share Capital A/c Dr. 400 To Share forfeiture 250 To Share allotment A/c 150 (c) Share Capital A/c Dr. 500 To Share forfeiture A/c 250 To Share allotment A/c 250 (d) None of the above. 37. X was issued 100 shares of Rs. 10 each at a premium of Re. 1, he paid application money and

allotment money which in total amounted to Rs. 5 (excluding premium) and failed to pay the balance call money of Rs. 5. Find the maximum discount that can be given at the time reissue of shares :

(a) Rs. 4 per share (b) Rs. 5 per share (c) Rs. 2 per share (d) Rs. 6 per share

38. Tata Communication invited applications for 50,000 equity shares of Rs. 10 each and received

65,000 applications along with application money of Rs. 5 per share. Which of the following is correct

(a) Refund the excess application (b) Make pro-rata allotment to all applicants, and refund the excess application money (c) Make pro-rata allotment to all applicants and adjust the excess money received towards call

money (d) All of the above 39. The authorized capital of M Ltd. Consists of both cumulative preference shares and equity shares.

Each 5% cumulative preference share has a par value Rs.100. Each equity share has a par value Rs.10. At the end of the year 2009-10 and 2010-11, the cumulative preference share capital balance was Rs. 2,00,000 and the equity share capital balance was Rs. 5,00,000.

If dividend declarations totaled Rs. 8,000 and Rs. 15,000 in the year 2009-10 and 2010-11 respectively, the dividends allocated to the equity share holders in the year 2010-11 =? (a) Rs. 3,000 (b) Rs. 5,000 (c) Rs. 10,000 (d) Rs. 12,000 40. Following are details of ABC Ltd: Outstanding Redeemable preference shares = Rs. 3,00,000 Premium on redemption = 10% General Reserve = Rs. 1,50,000 Security Premium Balance Rs. = Rs. 35,000 Fresh issue of shares to be made at 10% discount. The face value of fresh issued shares will be: (a) Rs. 1,66,667 (b) Rs. 1,50,000 (c) Rs. 1,85,000 (d) Rs. 1,80,000 41. When debentures are issued as collateral security, which entry has to be passed:. (a) Debenture suspense A/c Dr. To Debenture (b) No entry has to be made (c) Either (a) or (b) (d) None 42. 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) Rs. 37,000 (b) Rs. 37,500 (c) Rs. 35,500 (d) Rs. 38,000 43. Ryan Ltd. issued 20,000,8% debentures of Rs. 10 each at par, which are redeemable after 5 years at

premium of 20%. The amount of loss on redemption of debenture to be written off every year will be

(a) Rs.8,000 (b) Rs.40,000 (c) Rs.20,000 (d) Rs. 10,000 44. Directors can cancel the forfeited share: (a) After the forfeited shares are re-issued (b) Before the forfeited shares are re-issued (c) Either (a) or (b) (d) None of these

45. Nature of calls in arrear is: (a) Personal Account (b) Representative Personal Amount (c) Real Amount (d) Nominal Account 46. Calculate the original amount of bill when discount amount is Rs. 150 at interest rate of 10% p.a. Bill is made

on 1 January 2012 for 3 month and discounted with bank on 1 February 2012: (a) Rs. 12,000 (b) Rs. 10,000 (c) Rs. 9,000 (d) Rs. 6,000 47. Charge on Debenture may be: (a) Fixed (b) Floating (c) Both (a) and (b) (d) Charge cannot be created 48. Financing expenses include: (a) Interest paid on loan (b) Discount on bill discounted (c) Discount allowed to customer’s (d) All of the above

49. At the time of death of a partner, firm gets ________ from the insurance company against the Joint Life Policy taken jointly for all the partners:

(a) Policy Amount. (b) Surrender Value. (c) Policy Value for the died partner and Surrender Value for the rest. (d) Surrender Value for all the partners. 50. C of Chennai sent goods costing Rs.6,00,000 to Delhi. These goods were to be sold at cost plus

331/3%. The consignee sent advance to consignor as a % of sales value and A sent accordingly Rs. 4,80,000. What is the percentage of such advance on sales value?

(a) 75% (b) 50%

(c) 60% (d) 25%

51. X sends 1000 bags to Y on consignment @ 500 each. Y sold 800 bags @ 750 per bag. Y made Rs. 1,00,000 as advance and Rs. 2,00,000 Deposited as security. Expenses of Y on consignment Rs.20,000 and his commission Rs. 24,000. Amount will be send by Y to X: (a) Rs. 2,96,000 (b) Rs. 4,56,000

(c) Rs. 4,00,000 (d) Rs. 2,56,000 52. Match the following two column : Column A Column B 1. Performa invoice i. issued at the time of purchase return 2. Account sale ii. Send by principal to agent 3. Debit Note iii. Send by agent to principal 4. Credit note iv. Issued at the time of sales return 1 2 3 4

(a) ii iv i iii (b) iii ii I iv

(c) ii iii iv i (d) ii iii I iv 53. What will be the accounting entry in the books of acceptor for bills discounted with the bank: (a) Bills payable A/c Dr (b) Bank A/c Dr To Bank Discount A/c Dr To Discount To Bill Receivable (c) Bank A/c Dr (d) None of the above To Bills Payable

54. Which format for balance sheet is permitted as per revised schedule VI (a) Horizontal (b) Vertical (c) Either A or B (d) None of the above 55 Goods sent on consignment for Rs.50,000. During transit 1/10th of goods were destroyed by fire.

Again 1/9th of goods received by consignee were destroyed by fire in godown. Half of the original goods were sold for Rs.30,000. Freight & insurance paid by consignor Rs.2,500 and Rs.1500 respectively.

Calculate closing Stock. (a) Rs.24,000 (b) Rs.21,600 (c) Rs.20,000 (d) Rs.16,200 56. In Case of insufficient profits i.e., profits less than interest on capital then the profits are distributed in (a) Profit sharing ratio (b) Capital ratio (c) Not distributed (d) None of these 57. A & B are in partnership sharing profits & losses in the proportion of 3:1 respectively. On 1-4-2013,

they admitted ‘c’ into partnership on the following terms. i) ‘C’ is to purchase 1/3rd of the goodwill for Rs.2000/- by paying cash ii) future profits & losses are to be shared by A, B & C equally Set out the entry to the above arrangement in the firm journal

(a) Cash/Bank A/c Dr. 2,000 To ‘A’ s capital A/c 2,000 (b) Cash/Bank A/c Dr. 2,000 ‘B’ s capital A/c Dr. 500 To ‘A’s capital A/c 2,500 (c) Cash/Bank A/c Dr. 2000 To Goodwill A/c 2,000 (d) Cash/Bank A/c Dr. 2000 To ‘A’s capital A/c 1500 To ‘B’s capital A/c 500 58. A company has a subscribed capital of Rs. 80,00,000 in shares of Rs. 100 each. There are no calls in

arrears till the final call. The payment on final call was received for 77,500 shares. The mount of calls in arrears Rs. 67,500. Then the amount of final call is

(a) Rs. 25 (b) Rs. 27 (c) Rs. 20 (d) Rs. 65.20 59. In balance sheet of a company which capital is shown together :

(a) Authorised and issued capital (b) Issued and subscribed capital (c) Subscribed and called up capital (d) Called up and paid up capital 60. Is rent paid to a partner is appropriation of profits: (a) Yes (b) No (c) If partner's contribution as capital is maximum (d) If partner is a working partner 61. The term 'goods' for the purpose of Sale of Goods Act, includes

(a) Money. (b) Actionable claims.

(c) Growing crops, grass. (d) None of these.

62. 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.

(c) Both of the above.

(d) None of the above.

63. A contract for the sale of “future goods” is __________

(a) sale (b) agreement to sell.

(c) void. (d) hire-purchase contract.

64. Mercantile agent is having an authority to

(a) Sell or consign goods for sale (b) Raise money on the security of goods

(c) Sell or buy goods (d) Any of the above

65. Where price of goods sold is to be fixed by a third party and the third party refuses to fix the price,

the contract becomes

(a) Void (b) Voidable

(c) Illegal (d) Void and illegal

66. The property in the goods means the

(a) Ownership of goods (b) Possession of goods

(c) Custody of goods (d) Both (b) and (c)

67. A pen or pencil that will not write, a watch that will not keep time, a rubber that will not help to

erase cannot be considered as

(a) Presentable (b) Whole some

(c) Merchantable (d) None of the above

68. Where the goods are bought by description as well as sample and the goods supplied correspond to

sample as well as description the rule of caveat emptor will

(a) Apply (b) Not apply

(c) May or may not apply (d) None of these

69. Passing of property implies passing of

(a) Ownership (b) Possession

(c) Ownership & Possession (d) Benefit & Possession

70. Where the documents of title are made in the name of the buyer, but are sent by the seller to his

own agent with specific instructions to part with them, then the seller is

(a) Not presumed to have reserved his right of disposal

(b) Presumed to have reserved his right of disposal

(c) Guilty of breach of contract for imposing unreasonable condition

(d) Liable to perform the contract even if the buyer does not pay the price

71. A purchase a refrigerator on hire purchase from B and pledged with C. D purchased the refrigerator

from C in good faith, on knowing the facts B wants to recover the refrigerator from D. Which of the

following statements is/are correct?

(a) B can recover the refrigerator from D

(b) B can recover the refrigerator from A only

(c) B cannot recover the refrigerator from D

(d) D will get good title for the refrigerator as he bought it in good faith

72. Delivery of a thing in token of a transfer of something else is known as________.

(a) Actual Delivery (b) Constructive Delivery

(c) Delivery by acknowledgment (d) None of the above

73. Unpaid seller can have right of:

(a) Right of lien (b) Right of stoppage in transit

(c) Both (d) None

74. A _________is a right to retain the possession of goods until the payment of the price of such goods.

(a) Capture (b) Lien

(c) Surrender (d) Sue

75. The minimum price below which the auctioneer will not sell the goods is called:

(a) Stock price (b) Reserve price

(c) Upset price (d) Either (b) or (C)

76. A partnership deed must be drafted properly and stamped according to provision of :

(a) Indian Stamp Act (b) The Companies Act

(c) The companies Act (d) The Indian Partnership Act

77. 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.

78. M is employed by P Q R brothers a partnership firm. M is entitled to a remuneration of Rs. 10 lacs

Hence :

(a) M is not deemed as a partner in the firm

(b) M is deemed as partner in the firm

(c) M's appointment is invalid

(d) M can claim only Rs. 40,000 p.m. but not share of profits

79. A & B are partners in a partnership firm. A introduced C, a former partner, as his partner to D. C

remained silent at that moment, but later on informed D that he is actually a former partner of the

firm. C had not issued any public notice in the year of his retirement from the partnership firm. D, a

trader knowing well that only A & B are the partners of the firm, supplied 500 refrigerators to the

firm on credit. The credit period expired and D did not get the price of his supplies. D filed a suit

against A & C for the recovery of price. In light of the above circumstances answer which of the

following is correct:

(a) C is liable for the price to D, only if the element of fraudulent intention is present.

(b) C is liable for the price to D, irrespective of the fact, whether the element of fraudulent

intention is present or not.

(c) C is not liable for the price to D.

(d) C is liable to D because he had not issued any public notice of his retirement from the

partnership firm.

80. Which is not true regarding the rights of a minor partner

(a) He has a right such share of the property and profits of the firm as may have been agreed upon.

(b) He has right to have access to and inspect and copy of books of the firm

(c) He has right to have access to and inspect and copy of any of accounts

(d) All of these

81. 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.

82. The reconstitution of the firm takes place in case of:

(a) Retirement of a partner (b) Expulsion or death of a partner

(c) Admission of a partner (d) All of the above

83. 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.

(d) None of the above.

84. By transfer of a partner's interest or share:

(a) Partner does not cease to be a partner

(b) Partner ceases to be a partner

(c) Partner has the right to share the profits.

(d) Partner has right to defend suit against the firm.

85. A new partner can be admitted in the firm with the consent of:

(a) All the partners (b) Simple majority of partners

(c) Special majority of partners (d) New partner only.

86. Registration of a firm is____________

(a) Compulsory (b) Optional

(c) Occasional (d) None of the above

87. Court can order dissolution of a firm on the grounds other than:

(a) Misconduct (b) Superannuation of a partner

(c) Incapacity of partner (d) Continued Losses

88. Non-registration of Partnership is not a bar by:

(a) Civil proceedings (b) Criminal proceedings

(c) Both (a) and (b) (d) neither (a) nor (b)

89. Which one of the following is not an implied condition?

i. Condition as to wholesomeness

ii. Condition as to merchantability

iii. Condition as to quiet possession of goods

iv. Condition as to disclosure of dangerous nature of goods

v. Condition as to non existence of encumbrance

(a) i, ii (b) ii, iii, iv

(c) iii, iv, v (d) i, ii, iii, iv, v

90. In what circumstances a non-owner can convey better title to the bone fide buyer of goods for

value-

i. Sale by official receiver

ii. Sale by liquidator of the company

iii. Sale by finder of goods

iv. Sale by Pawnee

(a) i, ii (b) I, ii, iii

(c) ii, iii, iv (d) i, ii, iii, iv

91. There was a sale of 25 tonnes of cloves for October/November shipment. The seller shipped 20

tonnes in November and 5 tonnes in December. Would the buyer be entitled to reject the whole 25

tonnes?

(a) No

(b) Yes

(c) Buyer is entitled to reject only 5 tonnes

(d) Cann’t say

92. A sold goods to B. The payment was to be done after 2 month. However, B did not made payment.

The right of lien can be exercised by A, when goods are …………………:

(a) Handed over to consignee / Bailee (b) Handed over to B

(c) Not Handed over to anyone (d) All of the above

93. The Goods are damaged after the fall of hammer. The risk is to be borne by:

(a) Seller (b) Buyer

(c) Auctioneer (d) Partly by Seller 7 Partly by Buyer

94. R supplies some gold to goldsmith, to make an ornament. Goldsmith charged Rs. 10,000 for his

work. The contract is:

(a) Sale (b) Agreement to sell

(c) Contract of work & Labour (d) Hire Purchase

95. On dissolution of a firm all assets are realized ……………..:

(a) as per book value (b) as per market value

(c) Both (a) & (b) (d) None of the above

96. On which of the following grounds all or any one of the partner can apply to the court for

dissolution of firm:

(a) perpetual losses (b) insanity of partner

(c) persistent branch of partnership agreement (d) All of the above

97. The Status of a partner making advances to the firm in addition to his capital is:

(a) A partner of the firm (b) employee of the firm

(c) creditor of the firm (d) All of the above

98. As per the express agreement between partners, profits should be shared equally but loss shall be

borned only by one partner. This agreement is:

(a) Valid (b) Void

(c) Illegal (d) Voidable

99. A, B, C are partner. A take a house on rental Basis for firm’s purpose but he failed to pay the rent.

Landlord can recover the rent from:

(a) A only (b) B & C only

(c) A & C only (d) All partner

100. Dissolution by mutual agreement also known as __________ :

(a) Compulsory dissolution

(b) Voluntary dissolution

(c) Dissolution by notice

(d) Dissolution on the happening of certain contingencies