CA CPT Dec 2016 Question Paper, Answer Key and Solutions

CA CPT Dec 2016 Question Paper and Answer KeyCA CPT December 2016 Question Paper and Answer Key can be checked here by CA CPT candidates. The exam will be conducted on 18 Dec 2016 in morning and afternoon sessions. Answer key of CA CPT exam contains the complete question paper solved indicating correct answer against each question. The Institute of Chartered Accountants of India has notified that to qualify the exam, one must score at least 30% marks in one sitting, and 50% marks in aggregate of all sections.

CA CPT 2016 exam was held on 18 Dec 2016 from 10:30 AM to 12:30 PM in the morning session, and 2:00 PM to 4:00 PM in the afternoon session. Candidates can get the CA CPT December 2016 Question Paper, Answer Key and Solutions here.

CA CPT 2016 (December) Exam Pattern and Cut Offs

Subject Marks Cut Off Marks (30% in each subject; 50% in total)
Fundamentals of Accounting 60 18
Mercantile Laws 40 12
General Economics 50 15
Quantitative Aptitude 50 15
Total 200 100

CA CPT December 2016 Question Paper and Answer Key – 1st Session

PART A – FUNDAMENTALS OF ACCOUNTING

1.JOURNAL

1. Out of the following statements, Identity the wrong statement.

  • a. Real & Personal A/c’s are transferred to Balance Sheet
  • b. Nominal A/e’s are transfer to Profit and Loss A/c
  • c. Cash A/c is not opened seperately in the ledger
  • d. Rent A/c is a Personal A/c and Outstandig Rent A/c is a Nominal A/c

3. SUBSIDIARY BOOKS

2. List price of the goods purchased= Rs.60,000 Cash paid = Rs.45,000 {After receiving a cash discount of Rs.9,000). Trade discount= ?

  • a. 10%
  • b. 7.5 %
  • c. 15%
  • d. 25%

4.CASHBOOK

3. When the two aspects of a transaction are posted in the Cash Book itself, such an entry is called as _______

  • a. Double Entry
  • b. Debit Entry
  • c. Single Entry
  • d. Contra Entry

5. BANK RECONCILIATION STATEMENT

4. OD balance as per pass book is Rs. 2175/- Cheques of Rs.100, Rs.175 and Rs.150 are issued, but not yet presented for payment. A Cheque of Rs.600 is deposited in bank but not yet cleared. Find out the OD balance as per cash book.

  • a. Rs. 2,000
  • b. Rs.2,150
  • c. Rs.1,475
  • d. Rs.1,925

6. TRIAL BALANCE

5. Trial Balance shows arithmetical accuracy of ledger accounts, but it is not a _____ proof of accuracy.

  • a. Conclusive
  • b. Exclusive
  • c. Submissive
  • d. Inclusive

6. Which of the following errors are not revealed by the trial balance?

  • a. Wrong amount entered in the book of original entry
  • b. Wrong amount entered in the sales book
  • c. Complete omission of a transaction in the book of original entry
  • d. All of the above

1. FINAL ACCOUNTS – I

7. Trade Receivables as per Trial Balance = Rs.80,000.

Further information:

1. Bad debts Rs.2,000

2. Provision for discount on Trade Receivables @ 5% will be _____

  • a. Rs. 4,100
  • b. Rs. 4,000
  • c. Rs. 3,900
  • d. Rs. 4,200

8. Accrued Income appears on the _______

  • a. Credit side of P & L A/c
  • b. Debit side of P & L A/c
  • c. Assets side of Balance Sheet
  • d. Liabilities side of Balance sheet

9. The Fixed Assets of a company is double of the current assets and half of capital. If the current assets are Rs.3,00,000 and investments Rs.4,oo,ooo, calculate the current liabilities assuming that there are no other items in the balance sheet.

  • a. Rs. 2,00,000
  • b. Rs. 1,00,000
  • c. Rs. 3,00,000
  • d. Rs. 4,00,000

10. X sold goods to Y at cost+ 10%. Y sold the goods to Z at cost+ 20% profit on sales. Cost of the goods to Xis Rs.50,000. Find out the cost of the goods to z.

  • a. Rs.66,000
  • b. Rs.68,750
  • c. Rs.55,ooo
  • d. Rs.10,000

11. Entries for prepaid expenses, outstanding expenses and depreciation are called as _____

  • a. Adjustment Entries
  • b. Transfer Entries
  • c. Closing Entries
  • d. Rectification Entries

9. BILLS OF EXCHANGE & PROMISSORY NOTES

12. A Bill of Exchange, before its acceptance is called as _____

  • a. Draft
  • b. Bills Receivable
  • c. Bills Payable
  • d. None of these

13. If an accommodation bill of Rs.50,000 is discounted for Rs.49,000 and the proceeds are shared by X & Y m the ratio of 1: 4, the discount to be borneby Y is _____

  • a. Rs. 800
  • b. Rs. 600
  • c. Rs. 1,000
  • d. Rs. 400

10. CONSIGNMENT

14. The nature of Consignment A/c and Consignee’s A/c will be _____

  • a. Nominal, Personal
  • b. Real, Nominal
  • c. Personal, Real
  • d. Nominal, Real

15. Goods sent on consignment for Rs.50,000. During transit 1/lOth of goods were destroyed by fire. Again 1/91h of goods received by consignee were destroyed by fire in godown. Half of the remaining goods were sold for Rs.30,000. Freight & insurance paid by consignor were Rs.2,500 and Rs.1500 respectively. Calculate closing inventory.

  • a. Rs. 24,000
  • b. Rs. 21,600
  • c. Rs. 20,000
  • d. None

16. If del-credere commission is allowed for bad debts, consignee will debit the bad debts amount to:

  • a. Commission Earned A/c
  • b. Consignor’s A/c
  • c. Trade receivables {Customers) A/c
  • d. General Trading A/c

11. JOINTIENTURES

(17 – 18): A & B entered into a joint venture sharing profits and losses in the ratio of 2 : 3. A bought goods worth Rs. 36,000 and sent half of the goods to B. B purchased goods worth Rs. 22,500 and sent goods worth Rs.9,000 to A. Goods worth Rs.3,000 were destroyed by fire in the premises of A and the the insurance claim was received at 50%. All the goods were sold at a mark-up of 25% on cost. Expenses incurred by both were Rs.5,000.

17. The sales made by A & B were

  • a. Rs. 30,000 & Rs. 39,375
  • b. Rs. 40,500 & Rs. 39,375
  • c. Rs. 40,500 & Rs. 35,625
  • d. Rs. 41,250 & Rs. 24,375

18. The profit on joint venture is _____

  • a. Rs. 7,000
  • b. Rs. 7,375
  • c. Rs. 8,875
  • d. Loss Rs.1,500

19. Out of the following, which is not related to joint ventures

  • a. Account Sales
  • b. Account Current
  • c. Delcredere Commlsslon
  • d. All of the above

12. DEPRECIATION ACCOUNTING

20. The assets which were earlier revalued upward and now revalued downward, to the extent of earlier upward revaluation amount should be.

  • a. Debited to Revaluation Reserve A/c
  • b. Debited to Revaluation Reserve A/c
  • c. Debited to P & L A/c
  • d. Debited to P & L A/c

21. A Machinery was purchased by X Ltd. on 01- 01-13. Depreciation was charged at 15% p.a. under SLM. With effect from the 2nd year depreciation was charged under WDV method at the same rate. The WDV of the machinery on 01-01-15 was Rs.3,68,475. Find the original cost of the machinery?

  • a. Rs.5,10,000
  • b. Rs.5,10,000
  • c. Rs.6,00,000
  • d. Rs.4,23,500

22. The cost of machinery is Rs.60,000. Descreciation is charged at 20% p.a. under SLM. In the 2nd year it is decided to change the method and adopt WDV [email protected] 20% p.a. If the meachine was sold for Rs.30,000 at the end of the 3rd year, calculate the amount of loss.

  • a. Loss 4,720
  • b. Loss 4,560
  • c. Loss 720
  • d. Loss 560

13. RECTIRCATION OF ERRORS

23. Errors are rectified by using Suspense A/c

  • a. Before the preparation of Trial Balance
  • b. After the preparation of Trial Balance
  • c. Before and after the preparation of Trial Balance
  • d. None of these

24. After the rectification of following errors, the Net profit will be

i) A cheque of Rs.3,100 was dishonoured and debited to Discount A/c

ii) Goods of the value of Rs.1,200 were returned by a customer and included in stock, but not recorded in the books.

iii) A customer returned goods of value of Rs.1,200, included in stock but not recorded

  • a. Increased by Rs.24,900
  • b. Decreased by Rs.24,900
  • c. Increased by Rs.23,700
  • d. No change

14. SALE OF OOODS ON APPROVAL (OR) RETURN BASIS

25. A dealer sends his goods on sale or return basis. He sends goods for Rs.10,000 and records as normal sale. The profit on sale is 20%. The value of physical inventory taken is Rs.50,000. Then the value of closing inventory appearing in the Balance Sheet will be:

  • a. Rs.50,000
  • b. Rs.60,000
  • c. Rs.58,000
  • d. Rs.58,000

15. INIENTORIES

26. Average inventory is Rs.28,000. Closing inventory is Rs.6,000 more than opening inventory. Then find the value of closing inventory.

  • a. Rs.31,000
  • b. Rs.28,000
  • c. Rs.27,000
  • d. Rs.34,000

27. Value of physical inventory on 15-04-2016 was Rs.3,00,000. Sales amounting to Rs.1,00,000 and purchases worth Rs.50,000 were held between 31-03-2016 to 15-4-2016. Goods are sold at 20% profit on sales. Value of inventory as on 31-3-2016 is

  • a. Rs. 3,50,000
  • b. Rs. 2,70,000
  • c. Rs. 3,00,000
  • d. Rs. 3,30,000

28. Which method is an exception to non-historical cost methods

  • a. Adjusted selling price
  • b. Latest purchase price
  • c. Standard Cost
  • d. Weighted average price

29. Opening Inventory= 1,000 units at Rs.4 per unit Purchases= 1,200 units at Rs.5 per unit Sales at the end= 2,000 units at Rs.8 per unit Find out the profit under Weighted Average Price method

  • a. Rs. 6,000
  • b. Rs. 6,909
  • c. Rs. 6,900
  • d. Rs. 7,000

16. CAPITAL & REVENUE EXPENDITURES AND RECEIPTS

30. Insurance Claim received for the damage of machinery due to fire is considered as _____

  • A. Revenue receipt
  • B. Casual receipt
  • C. Deferred Revenue receipt
  • D. None

18. PARTNERSHIP ACCOUNTS

31. A, B, c & D are equal partners in a firm. They changed the profit sharing ratio as 2: 2: 1: 1. The sacrificed share of ‘D’ is _____

  • a. 1/24
  • b. 1/12
  • c. 1/10
  • d. 1/6

32. A and B are partners in a firm in the profit sharing ratio of 2:3. C is admitted as a new partner. A sacrificed 1/3rd of his share and B 1/41h of his share in favour of C. Find the new profit sharing ratio of A, B & C.

  • a. 17: 27: 37
  • b. 16: 27 : 17
  • c. 17 : 21 : 27
  • d. None of these

33. A and B are partners in a firm with capitals of Rs.5,00,000 each. They admit C as a partner with 1/4th share in the profits of the firm. C brings in. Rs.8,00,000 as his share of capital. The Profit and Loss account showed a credit balance of Rs.4,00,000 as on the date of his admission. The value oh hidden good will be.

  • a. Rs. 14,00,000
  • b. Rs. 18,00,000
  • c. Rs. 10,00,000
  • d. None of these

34. A, 8 and c are partners in a firm, sharing profits & losses in the ratio of 5:3:2 respectively. The balance of capital is Rs.50,000 each for A & Band Rs.40,000 for ‘C’. ‘B’ decides to retire from the firm. The goodwill of the firm is valued at Rs.30,000 and profit on revaluation of assets and liabilities was Rs.5,000. The firm also has a balance in the Reserve A/c at Rs.15,000 on that date. What amount will be payable to ‘B’?

  • a. Rs.45,000
  • b. Rs.55,000
  • c. Rs.65,000
  • d. Rs.75,000

35. Amount received in excess of surrender value of a joint life policy is shared by the partners in

  • a. Profit sharing ratio
  • b. Capitals ratio
  • c. Equal ratio
  • d. None

36. A, Band Care partners in a firm sharing profits and losses in the ratio of 7: 5: 4. The profit of the firm for the year ended 31-03-16 was Rs.2,40,000. C died on 30-06-15. What is the share of ‘C’ in the profit?

  • a. Rs. 15,000
  • b. Rs. 18,000
  • c. Rs. 24,000
  • d. Rs. 20,000

37. A, B & C are partners in a firm sharing profits and losses in the ratio of 2:2:1. B retired. The goodwill of the firm is valued at Rs. 30,000. In what ratio A & C will compensate to B.

  • a. 8,000: 4,000
  • b. 4,000: 8,000
  • c. 20,000: 10,000
  • d. 10,000: 20,000

38. Interest on partners’ capitals is allowed out of

  • a. Profits
  • b. Capitals
  • c. Goodwill
  • d. None of the above

39. Akash and Vikas are partners in a firm with capitals of Rs.60,000 each. Srikanth is admitted as a new partner for 1/5th share, who brings in Rs.80,000 as capital. Find the value of inferred goodwill.

  • a. Rs.2,00,000
  • b. Rs.2,20,000
  • c. Rs.4,00,000
  • d. Rs.3,00,000

40. The subscribed share capital of S Ltd. is Rs.80,00,000, divided into shares of Rs.100 each. There were no calls in arrears till the final call was made. The final call made was paid on 77,500 shares. The calls in arrears amounted to Rs.67,500. The final call money per share = ?

  • a. Rs.27
  • b. Rs.25
  • c. Rs.7.80
  • d. Rs.20

41. Which of the following statements is false?

  • a. Issued capital can never be more than authorized capital
  • b. In case of under subscription, issued capital will be less than the subscribed capital
  • c. Uncalled capital may be covered into reserve capital
  • d. Paid up capital is equal to called up capital less calls in arrears

42. Reserve capital means:

  • a. The part of subscribed uncalled capital
  • b. Accumulated Profits
  • c. The part of Capital Reserve
  • d. The part of Capital Redemption Reserve

43. Zebra Ltd invites applications for 50,000 shares for which Rs. 2 per share is payable on application. Applications are received for 80,000 shares and 50,000 shares are alloted on pro-rata basis to the applicants for 70,000 shares. Calculate the excess application money from X, who was alloted 200 shares.

  • a. Rs.160
  • b. Rs.100
  • c. Rs.300
  • d. None of the above

44. Maximum number of partners in a firm is mentioned in the

  • a. Companies Act
  • b. Partnership Act
  • c. Income Tax Act
  • d. None of these

20. COMPANY ACCOUNTS- II

45. Debenture holders are ____ of a company.

  • a. Vendors
  • b. Debtors
  • c. Creditors
  • d. Owners

46. When debentures are issued as collateral security against any loan, then the holder of such debentures is entitled to

  • a. Interest only on the amount of loan
  • b. Interest only on the face value of debentures
  • c. Interest both on the amount of the loan and on the debentures
  • d. None of the above

47. If fresh equity shares are issued for the redemption of preference shares which A/c will be credited?

  • a. Capital Reserve A/c
  • b. Capital Redemption Reserve A/c
  • c. Preference Share Capital A/c
  • d. Equity Share Capital A/c

48. P Ltd. issued 20,000, 12% debentures of Rs.10 each, which are redeemable after 5 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year= ?

  • a. Rs. 80,000
  • b. Rs. 40,000
  • c. Rs. 10,000
  • d. Rs. 8,000

49. Preference shares of Rs.10 each, which were issued at pa rare eligible for redemption if they are

  • a. Paid application and allotment money at Rs.5 per share
  • b. Fully paid up at Rs.10 per share
  • c. Paid up at Rs.7.50 per share
  • d. All of the above

21. ACCOUNTINOAN INTRODUCTION

50. AS 22 deals with ______

  • a. Accounting for taxes on income
  • b. Intangible assets
  • c. Impairment of assets
  • d. Accounting for investments

51. The concept of conservatism when applied to the Balance Sheet results in

  • a. Understatement of assets
  • b. Overstatement of assets
  • c. Overstatement of capital
  • d. None of the above

52. Identify the accounting standard which deals with provisions, contingent liabilities and contingent assets.

  • a. AS 28
  • b. AS 29
  • c. AS 30
  • d. AS 32

53. Match the following

  • a. 1-c; 2-a; 3-b, 4-d
  • b. 1-a; 2-b; 3-c, 4-d
  • c. 1-b; 2-a; 3-d, 4-c
  • d. 1-d; 2-c; 3-b, 4-a

54. Which of the following financial statements will be provided to the outsiders?

1. Balance sheet
2. Cash Flow Statement
3. P & L A/c
4. Trial Balance

  • a. 1, 2, 4
  • b. 1,3
  • c. 2, 3, 4
  • d. All 1, 2, 3, 4

55. The procedural aspects of accounting include

  • a. Generating & using the financial information
  • b. Generating & classifying the financial information
  • c. Generating & communicating the financial information
  • d. None of the above

56. BOD, Investors, Suppliers, Partners, Customers, Managers, Lenders.

Which of the following statements is correct?

  • a.

(i) Internal Users: BOD, partners, managers
(ii) External Users: Investors, Lenders, Suppliers, Customers

  • b.

(i) Internal Users: BOD, Investors, managers
(ii) External Users: Partners, Lenders, Supppliers, customers

  • c.

(i) Interernal Users: BOD, partners, Lenders
(ii) External Users: investors, Managers, Suppliers, Customers

  • d.

(i) Internal Users: BOD, partners
(ii) External Users: investors, Lenders

57.

58.

59.

60.

PART B – MERCANTILE LAWS

1. MEANING & NATURE OF CONTRACT

61. Amount withdrawn from ATM is

  • a. Quasi contract
  • b. Express contract
  • c. Tacit contract
  • d. None of the Above

62. Voidable contract is one which :

  • a. Can be enforced by aggrieved party
  • b. Can be enforced by both the parties
  • c. Cannot be enforced by both parties
  • d. None of the above

63. _____ contract is made without any intention of parties

  • a. Express contract
  • b. Implied contract
  • c. Quasi contract
  • d. Executory contract

2.0FFER AND ACCEPTANCE

64. A wants to go to his home at Delhi from his place of employment. He travels by bus as there is an air bus belonging to Chandra travels pvt. Ltd. which is standing at bus stand waiting for passengers. Here is

  • a. Internal offer
  • b. External offer
  • c. Implied offer
  • d. Express offer

65. Communication of acceptance is said to be completed as against the offeree

  • a. When it comes to the knowledge of proposer
  • b. When acceptance is posted
  • c. When letter of acceptance is in transit
  • d. None of the above

66. Which of the following is valid offer?

  • a. Advertisement in news paper
  • b. Price list
  • c. Advertisement including reward
  • d. All of the above

5.FREECOIISENT

67. _____ does not effect the free consent of the parties.

  • a. Fraud
  • b. coercion
  • c. Incompetency of parties
  • d. undue influence

68. The party to contract believes a particular thing to be true but it is not true. It falls under ____.

  • a. Fraud
  • b. Undue influence
  • c. Misrepresentation
  • d. Coercion

69. A buyer bought some jewellery thinking that it is real where as it is not so. The seller did not correct the opinion of buyer. Can the buyer make any claim on the ground of fraud?

  • a. Yes
  • b. No

70. It is the duty of finder to return the goods to true owner. Otherwise the finder is guilty of

  • a. Criminal Misappropriation of goods
  • b. Theft
  • c. Extortion
  • d. None of the above

71. Which contract depends upon happening or non – happening of future uncertain event?

  • a. Contingent contract
  • b. Wagering agreement
  • c. Void agreement
  • d. Voidable Contract

72. Novation means:

  • a. Alteration of contract
  • b. Substitution of new contract
  • c. Cancellation of contract
  • d. None of the above

73. Ashok owes Lakshmi Rs.25,000/-. Lakshmi said that she will accept Rs.15,000/- towards final settlement. It is _____ contract.

  • a. Voidable
  • b. Valid
  • c. Illegal
  • d. Unenforceable

74. When both the parties have decided to cancel the contract, It is known as ____

  • a. Remission
  • b. Novation
  • c. Rescission
  • d. None of the above

75. If the aggrieved party does not face any loss _____ damages can be claimed.

  • a. General
  • b. Special
  • c. Nominal
  • d. Vindictive

10. INDIAN PARTNERSHIPACT.1932

76. Unregistered firm cannot file a suit against ____ to enforce any right arising from a contract.

  • a. Incoming partner
  • b. Minor admitted to benefits of the firm
  • c. Minor admitted to benefits of the firm
  • d. All of the above

77. Public notice is not needed in case of

  • a. Dissolution of firm
  • b. Retirement of partner
  • c. Retirement of partner
  • d. Expulsion of partner

78. True test of partnership is

  • a. Sharing of profits
  • b. Mutual agency
  • c. Both a) and b)
  • d. None of the above

79. A partner can be expelled by

  • a. Majority of partners
  • b. Express contract
  • c. Good faith
  • d. All of the above

80. Who does not actually take part in business and gives his name to the firm?

  • a. Actual partner
  • b. Sleeping partner
  • c. Nominal partner
  • d. None of the above

81. Reconstitution of firm takes place except in case of

  • a. Admission of partner
  • b. Retirement of partner
  • c. Change in profit sharing ratio
  • d. Insolvency of partner

82. In a partnership consent of all partners is needed in case of

  • a. Change in nature of business
  • b. Routine matters
  • c. Purchase of immovable property
  • d. Both a) and b)

83. The maximum number of partners in partnership firm rs determined by _____

  • a. Companies Act
  • b. Partner Act
  • c. Limitation Act
  • d. None o the above

84. Where in a partnership firm, the partners are entitled to interest on their capitals, such interest is payable ____

  • a. Only out of capital
  • b. Only out of cash brought in by incoming partner towards goodwill
  • c. Only out of profits of the firm
  • d. None of the above

85. Which of the following is essential of partnership deed?

  • a. It should be made legally
  • b. It should be enforceable
  • c. It should be a written agreement between two or more persons
  • d. It should be forbidden by law

11. THE SALE OF OOODS ACT. 1930

86. Which of the following is not the right of an unpaid seller?

  • a. To resell the goods
  • b. To stop the goods in transit
  • c. To retain the goods
  • d. To demand back the goods

87. Which of the following is not a document of title to goods?

  • a. Bill of lading
  • b. Railway receipt
  • c. Dock warrant
  • d. Proforma Invoice

88. Caveat emptor means:

  • a. Let the seller beware
  • b. Let the buyer beware
  • c. Let the creditor beware
  • d. None of the above

89. In a concluded sale, if goods are destroyed, loss is to be faced by _____

  • a. Seller
  • b. buyer
  • c. Carrier
  • d. Seller’s agent

90. Giving keys of godown to buyer is _____ delivery.

  • a. Constructive
  • b. Symbolic
  • c. Actual
  • d. None of the above

91. Right of lien can be exercised by seller when ____

  • a. Goods are under possession of seller
  • b. Goods are delivered to carrier
  • c. Goods are delivered to buyer
  • d. Goods are not under possession of seller

92. Goods sold by description but not identified or agreed upon at the time of contract of sale are

  • a. Specific goods
  • b. Future goods
  • c. Existing goods
  • d. Unascertained goods

93. Rasheed sends gold to Adam for making an ornament. This is a _____

  • a. Contract of sale
  • b. Contract of work and labour
  • c. Hire purchase agreement
  • d. Sale on approval basis

94. When there is contract for sale of specific goods, the agreement is ______, if the

been perished or have no longer in accordance been perished or have no longer in accordance with description before the contract.

  • a. Void
  • b. Voidable
  • c. Valid and enforceable
  • d. illegal

95. When the breach of condition is treated as breach of warranty, buyer has right to:

  • a. Claim damages
  • b. Repudiate the contract
  • c. Reject the goods
  • d. None of the above

96. Where the goods are of perishable nature, unpaid seller can

  • a. Sue for price
  • b. Repudiate the contract before due date
  • c. Resell the goods
  • d. Sue for damages

97. The buyer of a pesticide tin, the lid of which is broken, gets injured by inhaling the powder. The seller has failed in disclosing the same. Here, buyer can claim:

a. Damages for breach of warranty as to disclose of dangerous nature

b. Repudiation of contract

98.

99.

100.

Key – Part A – Fundamentals of Accounting
1 D 13 A 25 D 37 A 49 B
2 A 14 A 26 A 38 A 50 A
3 D 15 B 27 D 39 A 51 A
4 A 16 A 28 D 40 A 52 B
5 A 17 A 29 B 41 B 53 C
6 D 18 B 30 B 42 A 54 B
7 C 19 D 31 B 43 A 55 A
8 C 20 B 32 B 44 A 56 A
9 B 21 B 33 C 45 C 57
10 B 22 C 34 C 46 A 58
11 A 23 B 35 A 47 D 59
12 A 24 A 36 A 48 D 60
Key – Part B – Mercantile Laws
61 C 69 B 77 B 85 C 93 B
62 A 70 A 78 B 86 D 94 A
63 C 71 A 79 D 87 D 95 A
64 C 72 B 80 C 88 B 96 C
65 A 73 B 81 C 89 B 97 A
66 C 74 C 82 D 90 B 98
67 75 C 83 A 91 A 99
68 C 76 D 84 C 92 D 100

CA CPT December 2016 Question Paper and Answer Key – 2nd Session

PART A – GENERAL ECONOMICS

1. ANALYSIS OF DEMAND

1. Conspicuous goods are also called as:

  • a. Veblen
  • b. Snob
  • c. Prestigious
  • d. All of the above

2. A relative price is _____

  • a. Price expressed in terms of money
  • b. What you get paid for baby sitting your cousin
  • c. The ratio of one money price to another
  • d. Equal to a money price

2. ELASTICITY OF DEMAND

3. In case of a straight line demand curve meeting the two axes, the price elasticity of demand at the Y-axis of the line would be:

  • a. Infinity
  • b. Equal to 1
  • c. Zero
  • d. Less than 1

4. If income increases by 10% and demand increases by 5%, then income elasticity of demand is:

  • a. +0.5
  • b. -0.5
  • c. +0.05
  • d. -0.05

5. Supply is a ___ concept.

  • a. Flow
  • b. Stock
  • c. Both Flow & Stock
  • d. Qualitative

6. Elasticity of supply refers to to the percentage change in supply divided by ____

  • a. Percentage change in income
  • b. Percentage change in price
  • c. Percentage change in demand
  • d. Percentage change in cost

7. Concept of consumer surplus is based on :

  • a. Law of Diminshing Marginal utility
  • b. Law of Equi-Marginal utility
  • c. Law of Diminshing returns
  • d. Engel’s law

8. which among the following is not a characterstic of land?

  • a. Land is an active factor
  • b. Its power is indestructible
  • c. Variety of uses
  • d. Its supply is limited

9. Which is not a characteristic of labour?

  • a. Labour is not separable from labourer
  • b. Labour is not a mobile factor
  • c. Labour is not a mobile factor
  • d. Labour is an active factor

10. Average Product raises due to an increase in variable input, then Marginal Product is :

  • a. More than AP
  • b. Less than AP
  • c. Equal to AP
  • d. None

11. Suppose the first four units of a variable input generate corresponding total outputs of 150, 200, 350 and 550. The marginal product of the third unit of input is:

  • a. 50
  • b. 100
  • c. 150
  • d. 200

6. COST ANALYSIS

12. Average cost of Producing 50 units of a Commodity is Rs 250 & fixed cost is Rs. 1000 . What will be the average fixed cost of producing 100 units of the Commodity?

  • a. 10
  • b. 30
  • c. 20
  • d. 5

13. A firm’s average fixed cost is Rs. 20 at 6 units of output. What will it be at 4 units of output?

  • a. 60
  • b. 30
  • c. 40
  • d. 20

14. If TVC = 100, TFC = 400, then calculate ATC at 5 units.

  • a. 280
  • b. 250
  • c. 150
  • d. 300

7. MARKETS

15. The market for ultimate consumers is known as _____

  • a. Whole sale market
  • b. Retail market
  • c. Unregulated market
  • d. Regiulated market

16. In a perfect competition, who set the prices :

  • a. Buyers
  • b. Sellers
  • c. Both buyers and sellers
  • d. Government

17. Average revenue rs also known as?

  • a. Supply curve
  • b. Demand curve
  • c. Marginal revenue
  • d. Average cost

18. The price discrimination under monopoly will be possible under which of the following coditions?

  • a. The seller has no control over the supply of his product
  • b. The market has the same conditions all over
  • c. The price elasticity of demand is different in different markets
  • d. The price elasticity of demand is uniform

19. Which of the following markets has the concept of group equilibrium in long – run?

  • a. Monopoly
  • b. Perfect competition
  • c. Monopolistic competition
  • d. Oligopoly

20. Which is the first order condition for the profit of a firm to be maximum?

  • a. AC= MR
  • b. MC= MR
  • c. MR=AR
  • d. AC=AR

21. Which of the following is false regarding Monopoly?

  • a. Unique Product
  • b. Unique Product
  • c. Single Seller
  • d. None of the above

9.NATURE & SCOPE OF ECONOMICS

22. Which of the following is another name of Production possibilities curve?

  • a. Deamand curve
  • b. Indifference curve
  • c. Transformation curve
  • d. Supply curve

23. Freedom of choice is an advantage of:

  • a. Capitalist economy
  • b. Mixed economy
  • c. Socialist economy
  • d. Communist economy

24. Who among the following gave the definition of Economics as “Science which deals with wealth”?

  • a. Frachild
  • b. A.C Pigou
  • c. Adam Smith
  • d. J.B. Say

25. Lionel Robbins said the following except:

  • a. Scarce means
  • b. Limited ends
  • c. Alternative Uses
  • d. Economics is science

26. In which economic system all the means of production are owned and controlled by private individuals for profit?

  • a. Socialism
  • b. Mixed economy
  • c. Mixed economy
  • d. Communism

1. NATURE OF INDIAN ECONOMY

27. Which of the following is not a cause of under – developed country?

  • a. Unemployment & poverty
  • b. Over population
  • c. Income inequalities
  • d. Dominance of mass consumption

2. POPULATION

28. In the theory of demographic transition in the last stage:

  • a. Birth rate rises, death rate rises.
  • b. Birth rate rises, death rate falls
  • c. Birth rate falls, death rate rises.
  • d. Birth rate falls, death rate falls

29. _____ Unemployment is caused by decline in demand.

  • a. Structural
  • b. Technological
  • c. Disguised
  • d. Chronic

30. Work force refers to that part of:

  • a. Labour force which is employed
  • b. Population which is unemployed
  • c. Population which is forced to work
  • d. Labour force which is unemployed

31. Right of children to free and compulsory education Act {RTE Act) 2009, has made free education for all children between the age of ______ fundamental right.

  • a. 5 and 14 years
  • b. 6 and 14 years
  • c. 7 and 14 years
  • d. 8 and 14 years

32. On the basis of end use, industries are classified into:

  • a. Consumer Goods, Free Goods, Large scale industries
  • b. Intermediate Goods, Consumer goods, Small scale industries
  • c. Capital Goods, Basic Goods, Intermediate Goods
  • d. consumer Goods, Large scale industries

33. ______ is the apex bank for agriculture credit in India.

  • a. RBI
  • b. SIDBI
  • c. NABARD
  • d. ICICI

34. BPO stands for _____

  • a. Bharat Petroleum Organizatio
  • b. Business Process Outsourcing
  • c. Big Portfolio Outstanding
  • d. Business Profit Organization

6. COMMERCIAL BANKS & RESERVE BANK OF INDIA

35. Who is called the ‘Bank of Issue’?

  • a. RBI
  • b. SBI
  • c. IDBI
  • d. ICICI

36. ______ is the official minimum rate at which central bank of a country is prepared to rediscount approved bills held by commercial banks.

  • a. Repo rate
  • b. Reverse repo rate
  • c. Bank rate
  • d. CRR

37. Profitability ratio of commercial banks has not improved much due to _____

  • a. Low interest on Government borrowings from banks
  • b. Subsidization of credit to priority sector
  • c. Increasing expenditure due to over staffing
  • d. All of the above

38. _____ refers to that portion of total deposits of a commercial bank whichit has to keep with RBI in the form of cash reserves.

  • a. CRR
  • b. SLR
  • c. Bank Rate
  • d. Repo Rate

39. Inflation can be controlled by:

  • a. Fiscal measures
  • b. Monetary measures
  • c. Control of investments
  • d. All of the above

40. Money includes:

  • a. Currencies and demand deposits
  • b. Bonds, government securities
  • c. Equity shares
  • d. All of the above

41. Which committee recommended simplification and rationalization of tax system in India :

  • a. Chelliah
  • b. Bootha lingam
  • c. Both a & b
  • d. Urjit Patel

42. Which of the following is not a direct tax?

  • a. Gift tax
  • b. Corporate income tax
  • c. VAT
  • d. Wealth tax

9. BUDOO AND FISCAL DEFICITS IN INDIA

43. _____ is the difference between total receipts and total expenditure.

  • a. Fiscal deficit
  • b. Budget deficit
  • c. Revenue deficit
  • d. Capital deficit

10. BALANCE OF PAYMENTS & EXTERNAL DEBT

44. _____ is a systematic record of all the economic transactions between one country and rest of the world.

  • a. Balance of trade.
  • b. Balance of transactions.
  • c. Budget
  • d. Balance of payments

1. LIBERALISATION, PRIVATISATION AND DISINVEESTMENT & GLOBALISATION

45. Which of the following is not correctly matched:

  • a. Liberalisation – relaxation of previous government restrictions usually in areas of social and economic policies
  • b. Privatisation – the transfer of assets or service functions from public to private ownership
  • c. Disinvestment – disposal of private sector’s unit to public sector
  • d. Globalisation – integrating the domestic economy with the world economy

12. ECONOMIC REFORMS IN INDIA

46. Government has permitted up to ____% Foreign Direct Investment {FDI) by foreign airlines in Indian airline companies.

  • a. 26
  • b. 49
  • c. 51
  • d. 74

47. Per capital income = _____

  • a. NNP is divided by total population
  • b. Population is divided by NNP
  • c. Total capital divided by population
  • d. None

48. Which of the following is not included in domestic territory?

a. Ships and aircrafts operated by1he residents of the country between two or more countries

b. Fishing vessels, oil and natural gas rigs, and floating platforms operated by the residents of the country

c. Embassies, consulates and military establishments of the country located abroad

d. Personal investments by residents in abroad

49.

50.

PART B – QUANTITATIVE APTITUDE

MATHEMATICS

1. LOGARITHMS

51. Given log 2 = 0.3010 and log 3 = 0.4771 then the value of log 24

  • a. 1.3081
  • b. 1.1038
  • c. 1.3801
  • d. 1.8301

2. THEORY OF INDICES AND SURDS

52. If 3x = 5y = (75)z then

53. If abc = 2 then the value of

  • a. 1
  • b. 2
  • c. 1/2
  • d. 3/4
  • 3. SETS

54. The number of subsets formed from the letters of the word “ALLAHBAD”.

  • a. 128
  • b. 16
  • c. 32
  • d. None

4. RELATIONS AND FUNCTIONS

55. If (x) = 100 x then f-1 (x) =

  • a. x/100
  • b. 1/100x
  • c. 1/100
  • d. None of these

56. f: RR is defined by f (x)=2x then f is

  • a. One – one and onto
  • b. One – one and into
  • c. Many to one
  • d. One to many

5. SEQUENCE & SERIES

57. 2.353535 ……….=

  • a. 233/99
  • b. 234/99
  • c. 232/99
  • d. 235/99

58. The number of terms of the series needed for the sum of the series 50+45+40+….. becomes zero

  • a. 22
  • b. 21
  • c. 20
  • d. None

59. A person received the salary for the 1st year is Rs. 5,00,000 per year and he received an increment of Rs. 15,000 per year then the sum of the salary he taken in 10 years

  • a. Rs. 56,75,000
  • b. Rs. 72,75,000
  • c. Rs. 63,75,000
  • d. Rs. None of these

6. CO-ORDINATE GEOMETRY

60. A triangle formed by the lines y = 0, x + 2y = 3, 2x – y = 1

  • a. Isosceles triangle
  • b. Equilateral triangle
  • c. Right angled triangle
  • d. None of these

1. LlNEAR INEOUATIONS

61. The inequalities

x1 +2x2 <5,x1 +x2 2>1,x1>0,x2>0 represents the region

8. EQUATIONS

62. Particular company produces some articles on a day. The cost of production per article is Rs.2 more than thrice the number of articles and the total cost of production is Rs.800 on a day then the number of articles is

  • a. 16
  • b. 14
  • c. 18
  • d. 15

9. LIMITS

63.

  • a. 77/98
  • b. 9/7
  • c. 7/9
  • d. 99/77

64.

  • a. 1
  • b. 1/2
  • c. -1/2
  • d. -1

65.

Is continuous at x = – a then the value of K is

  • a. -3a2
  • b. -2a2
  • c. 3a2
  • d. 2a2

 

67.

  • a. 1
  • b. 0
  • c. 3
  • d. +2

11. INTEORATIONS AND ITS APPLICATIONS

68.

  • a. e-1
  • b. ee
  • c. ee-1
  • d. None

12. PERMUTATIONS & COMBINATIONS

69. How many numbers between 1000 and 10,000 can be formed with the digits 1, 2, 3, 4, 5, 6

  • a. 720
  • b. 360
  • c. 120
  • d. 60

70. If (n+2)c1+1 : nc1 : n-1c1-1 = 8:3:1 then find the value of n

  • a. 14
  • b. 15
  • c. 16
  • d. 17

71. In how many ways 4 members can occupy 9 vacant seats in a row

  • a. 3204
  • b. 3024
  • c. 49
  • d. 94

13. RATIOS & PROPORTIONS

72. A bag contains 23 number of coins in form of 1 rupee, 2 rupee and 5 rupee coins. The total sum of the coins is Rs. 43. The ratio between 1 rupee & 2 rupee coins is 3:2. Then the number of 1 rupee coins

  • a. 12
  • b. 8
  • c. 10
  • d. 16

14. MATHEMATICS OF FINANCE

73. The difference between the simple interest and compound interest on a certain sum of money invested for 2 years at 5% p.a. is Rs.30. Then the sum=

  • a. 10,000
  • b. 12,000
  • c. 13,000
  • d. None

74. If a person lends Rs.6,000 for 4 years and year at the rate of 4% compounded semiannually then the sum invested is

  • a. 7,000
  • b. 7,500
  • c. 7,750
  • d. 8,000

STATISTICS

1. MEASURES OF CENTRAL TENDENCY

76. The G.M of observations 40, 50 and x is 10, then find the value of x?

  • a. 4
  • b. 5
  • c. 2
  • d. 1/2

77. If the mean of data is 55.6 and the mode is 46, then the ,edian is ______

  • a. 50.4
  • b. 40.7
  • c. 52.4
  • d. None

78. ________ is used for ordering the size of designed cloths.

  • a. Mean
  • b. Median
  • c. Mode
  • d. None

79. The mean of 10 observations is 14.4. Out of these mean of 4 observations is 16.5, then find the mean of remaining observations?

  • a. 13.6
  • b. 13
  • c. 13.8
  • d. 12

80. The mean of 6,4,1,5,6,10 and 3 is 5. If each number is added with 2, then the new mean is

  • a. 7
  • b. 5
  • c. 6
  • d. 10

3. CORRELATION

81. If the sum of the square of rank differences in the marks of 10 students in two students is 44 then the coefficient of rank correlation is ______

  • a. 0.78
  • b. 0.73
  • c. 0.87
  • d. None

4. REGRESSION

82. Regression coefficient is affected by _____

  • a. Change of origin
  • b. Change of Scale
  • c. Both origin & Scale
  • d. Neither origin nor scale

83. Regression lines are passes through the _____ points

  • a. Mean
  • b. Standard deviation
  • c. Both a) & b)
  • d. None

84. If the regression line of x on y is 3x+2y = 100, then find the value of bxy?

  • a. -2/3
  • b. 10/3
  • c. 3/2
  • d. 2/3

5.INDEX NUMBERS

85. Index numbers are used in

  • a. Economics
  • b. Statistics
  • c. Statistics
  • d. None

86. From the following data

The Paasche’s price index number is:

  • a. 146.41
  • b. 148.25
  • c. 144.25
  • d. None

87. The time reversal test is satisfied by _____ index number.

  • a. Laspeyre’s
  • b. Paasche’s
  • c. Fisher’s
  • d. None

6. STATISTICAL DESCRIPTION OF DATA

88. Difference modes of presentation of data are ____

  • a. Textual
  • b. Tabular
  • c. Both a) & b)
  • d. None

89. For construction of Histogram the class intervals of frequency distribution is

  • a. Equal
  • b. Unequal
  • c. Either Equal or Unequal
  • d. None

90. In ______ method(s) information can be gathered by the researcher humself by contacting the interviewee.

  • a. Personal Interview
  • b. Telephone Interview
  • c. Both a) & b)
  • d. Indirect oral

91. Profits made by XYZ bank in different years refers to _____

  • a. Attribute
  • b. Discrete variable
  • c. Continuous variable
  • d. None

7. PROBABILITY

92. A bag contains 6 green and 5 red balls. One ball is drawn at random. The probability of getting a red ball is?

  • a. 5/11
  • b. 6/11
  • c. 5/6
  • d. None

  • a. 1/4
  • b. 1/6
  • c. 2/3
  • d. 1/2

  • a. Independent and mutually exclusive
  • b. Independent but not mutually exclusive
  • c. Mutually exclusive but not independent
  • d. Neither independent nor exclusive

9. THEOROICAL DISTRIBUTIONS

95. In _____ distribution mean= variance.

  • a. Binomial
  • b. Normal
  • c. Poisson
  • d. t

96. ______ is / are Biparametric distribution(s).

  • a. Binominal
  • b. Poisson
  • c. Normal
  • d. Both a) & b)

97. In Poisson distribution µ4 = 2, then find µ2.

  • a. 2
  • b. 4
  • c. 2/3
  • d. 1/2

98. The second & third moments of observations (-6,-4,-2,0,2,4,6) are ______

  • a. (12,0)
  • b. (0,12)
  • c. (16,0)
  • d. (0,16)

99. If x &y are two independent normal variates with means µ1 & µ2 and standard deviations o1 & o2 respectively, then x+y follows ______

10. THEORY OF SAMPLNG

100. According to Neyman’s allocation, in stratified sampling

  • a. Sample size is proportional to the population size
  • b. Sample size is proportional to the sample SD
  • c. Sample size is proportional to the sample variance
  • d. Population size is proportional to the sample variance
Key – Part A – General Economics
1 D 11 C 21 D 31 B 41 C
2 C 12 A 22 C 32 C 42 C
3 A 13 B 23 A 33 C 43 B
4 A 14 A 24 D 34 B 44 D
5 A 15 B 25 B 35 A 45 C
6 B 16 C 26 B 36 C 46 B
7 A 17 B 27 D 37 D 47 A
8 A 18 C 28 D 38 A 48 D
9 C 19 C 29 A 39 D 49
10 A 20 B 30 A 40 D 50
Key – Part B – Quantitative Aptitude
51 C 61 A 71 B 81 B 91 C
52 A 62 A 72 A 82 B 92 A
53 A 63 C 73 B 83 A 93 B
54 C 64 B 74 A 84 A 94 B
55 A 65 C 75 B 85 C 95 C
56 B 66 A 76 D 86 A 96 C
57 A 67 77 C 87 C 97 C
58 B 68 B 78 C 88 C 98 C
59 A 69 B 79 B 89 C 99 D
60 C 70 B 80 A 90 C 100 A

About the CA CPT December 2016 Question Paper and Answer Key

ICAI, the conducting body, does not officially publish question papers or answer keys of CA CPT exam. In order to help candidates get a rough idea of the marks scored in exam, and also for CA CPT preparation for candidates who will apply for upcoming exams, the CA CPT question papers and solutions are published unofficially by several coaching institutes. If you have appeared in the Chartered Accountants Common Proficiency Test on December 18, 2016, you can check here the CA CPT Dec 2016 Question Paper, Answer Key and Solutions. Most of the questions are based on memory recall and answers solved after review of the questions and options.

  • The question paper shall contain 200 questions in all.
  • 60 questions are based on Fundamentals of Accounting.
  • 40 questions are on Mercantile Laws.
  • 50 questions in the second session are on General Economics.
  • 50 questions are asked on Quantitative Aptitude.
  • All the questions are objective type (MCQs).
  • Total duration of exam is 4 hours.
  • There is negative marking for incorrect answer.

CA CPT December 2016 Result

Approximately one month after the exam will be conducted, ICAI shall declare the result of CA CPT December 2016. As the date of exam has already been scheduled as December 2016, it is expected that results shall be declared by around the third week of January, 2017.

All Previous Year CA CPT Question Papers

Discussion - If you have any query / feedback comment here.

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