Instructions:
Question paper reading time: 10:15 AM -10:30 AM
Time for exam 10:30 AM-12:30 PM
Use Ruled sheet for writing test & submit physically on 09/12/2016
SRISHTI’S MODEL COMMON PROFICIENCY
TEST
SECTION A: FUNDAMENTALS OF
ACCOUNTING
Time Allowed – 2 Hours Maximum Marks – 100
1.
Find
out the missing item using the following information:
Opening
Stock Rs.
60,000
Purchases
Rs.
3,40,000
Sales Rs. 4,80,000
Gross
margin on sales 25%
Stock
as per physical verification Rs. 32,500
(a) Freight Inward Rs. 32,500
(b) Freight Outward Rs. 7,500
(c) Goods withdrawn by the proprietor
Rs. 7,500
(d) None of the above.
2.
Annual
insurance premium paid on January 1, 2016 was Rs. 2,400. What will be the opening entry on April 01,
2016, if financial year ends on March, 31 every year?
(a)
Insurance
Premium A/c Dr. Rs. 1,800
To
Prepaid Insurance Premium A/c Rs. 1,800
(b)
Insurance
Premium A/c Dr. Rs. 600
To
Prepaid Insurance Premium A/c Rs. 600
(c)
Prepaid
Insurance Premium A/c Dr. Rs. 1,800
To Insurance Premium A/c Rs. 600
(d) Prepaid Insurance
Premium A/c Dr. Rs. 600
To
Insurance Premium A/c Rs. 600.
3.
C and
D entered into a Joint Venture to construct a bridge. They did not open
separate set of books. They shared profits and losses as 3:2. C contributed Rs.
1,50,000 for purchase of materials. D paid wages amounting to Rs. 80,000. Other
expenses paid were by C – Rs. 5,000 and D – Rs. 15,000 C purchased one machine
for Rs. 20,000. The machine was taken over by C for Rs. 10,000. Total contract value of Rs.
3,00,000 was received by D. What will be
the profit on venture?
(a)
Rs.
30,000
(b) Rs. 40,000
(c) Rs. 20,000
(d) Rs. 15,000
4.
Estimated
life of an asset is 10 years and estimated scrap value is Rs. 3,200. Depreciation as per SLM is charged at Rs. 2,500
every year on the asset. Find the cost
of the asset.
(a)
Rs. 25,000
(b) Rs. 28,200
(c) Rs. 28,000
(d) Rs. 30,200.
5.
Mr. X
paid commission to his consignee Mr. Y Rs. 25,000 @ 5% on sales made by
him. Goods were sold by Mr. Y at a
profit of 25% on cost. Stock in hand as
on 31.3.2016 is Rs. 50,000 at cost. What is the cost of goods sent by Mr. X on
consignment to Mr. Y?
(a) Rs. 4,50,000
(b) Rs. 75,000
(c) Rs. 5,50,000
(d) Rs. 6,00,000.
6. A Ltd. forfeited 1,000 shares of Rs.
10 each on which Rs. 6,000 have been received.
Forfeited shares were re-issued for Rs. 7,000. The amount transferred to capital reserve
account would be:
(a)
Rs. 1,000 (b) Rs. 3,000 (c) Rs. 4,000 (d) Rs. 6,000.
7.
Subject
to an agreement among the partners, interest on capital is to be provided out
of profits only. In case of insufficient
profit (i.e. net profit is less than the amount of interest on capital), the
profit will be distributed:
(a)
In
equal ratio
(b)
In
profit sharing ratio
(c)
In
capital ratio
(d)
Restricted
to 6% of partners‘ capital.
8.
Goods
worth Rs. 750 were purchased from S & Co. but while passing the entry the
credit was given to R & Co. The
total of credit side of the Trial Balance is Rs. 43,750. Assuming that this is the only error, the
total of the debit side of the trial balance before rectification was:
(a)
Rs.
43,750
(b) Rs. 44,500
(c) Rs. 43,000
(d) Rs. 45,250.
9.
A, B,
C & D are partners in the firm. 2/3rd of the profit is shared equally by A
& B and the balance profit is shared by C & D in the ratio of 3:2. Profit sharing ratio of A, B, C & D will
be:
(a)
4:4:3:2
(b)
7:7:6:4
(c) 2.5:2.5:3:2
(d) 5:5:3:2.
10.
At the
end of the financial year, Accounts receivable has a balance of Rs. 1,00,000
and provision for bad and doubtful debts is amounting to Rs. 7,000. The expected net realizable value of the
accounts receivable is
(a)
Rs.
7,000
(b)
Rs. 1,07,000
(c)
Rs.
93,000
(d)
Rs.
1,00,000.
11.
Bank
column of cash book of a trader shows debit balance of Rs. 7,900, whereas the
bank statement shows a debit balance of Rs. 10,300 on that particulate date. In
the balance sheet, bank balance will be shown on
(a)
Assets
side Rs. 7,900
(b)
Liabilities
side Rs. 10,000
(c)
Liabilities
side Rs. 2,400
(d)
Assets
side Rs. 10,300
12.
In
case of a joint venture, a minor
(a)
Can be
a co-venturer in the profits of the joint venture only
(b)
Can be
a co-venturer if all the other co-venturers agree
(c)
Can be
a co-venturer if permitted by the competent authority
(d)
Cannot
be a co-venturer at all.
13.
At the
time of stock taking, accountant noted that, goods worth Rs. 1,000 are lying in
godown, waiting for dispatch. These
goods were billed on March 15, 2016 for Rs. 1,200. While calculating the value of physical inventory,
the following adjustment will be made in the value of inventory shown by the
books of account for the year ended on 31.3.2016
(a)
Exclude
the goods from calculating inventory
(b) Include the sale price Rs. 1,200
in the value of inventory
(c) Include the cost price Rs. 1,000
in the value of inventory
(d) None of the above.
14.
Effect
of strike not shown in the accounts.
Which accounting concept is applied here?
(a)
Matching
concept
(b)
Revenue
recognition concept
(c)
Money measurement concept
(d)
Cost concept.
15.
100
items at sale price of Rs. 250 each sent to a customer on approval basis were
recorded as actual sale at that price.
The sale price was made at cost plus 25%. The amount of stock on hand will be
(a)
Rs. 25,000
(b)
Rs. 20,000
(c)
Rs. 22,500
(d)
Rs. 18,750.
16.
Goods
destroyed by fire Rs. 20,000 and insurance company admitted full claim. Claim receivable from insurance company will
be shown in the
(a)
Manufacturing
account
(b)
Trading
account
(c)
Profit
and Loss account
(d)
Balance Sheet.
17.
The
payment side of the cash book is undercast by Rs. 250. When overdraft as per pass book is the
starting point, to get to the overdraft as per cash book
(a) Rs. 250 will be deducted
(b) Rs. 250 will be added
(c)
Rs.
500 will be deducted
(d)
Rs.
500 will be added
18.
No
Journal entry is required to be passed when there is
(a)
Normal
loss
(b)
Abnormal
loss
(c)
Loss
of bad debts
(d)
Loss
by riots.
19.
P
shows a profit of Rs. 7,00,000 for the year ended 31.3.2016. The figure has been arrived at after charging
following against revenue:
(i)
Purchase
of Car on 28.3.2016 for use in business Rs. 3,00,000 and treated as vehicle
expenses.
(ii)
Omitted
to record unpaid electricity bills for February and March, 2016 of Rs. 15,000
per month. The correct profit for the
year ended 31st March, 2016 will be
(a)
Rs.
8,30,000
(b) Rs. 9,00,000
(c) Rs. 9,70,000
(d) Rs. 10,30,000.
20.
Provision
is made for the amount outstanding for the salaries at the end of the
accounting period as per _________ concept.
(a)
Matching
(b)
Accrual
(c)
Materiality
(d)
Historical
cost.
21.
Rent
paid is debited to landlord‘s personal account.
It is
(a) Not an error
(b) Error of omission
(c) Error of commission
(d) Error of principal.
22.
Cost
of machinery Rs. 75,000, salvage value Nil, estimated life 4 years. Depreciation for the first year by sum of
digit method is
(a)
Rs.
30,000
(b) Rs. 15,000
(c) Rs. 12,000
(d) Rs. 7,500.
23.
Dividends
are usually paid as a percentage of 
(a)
Authorised
share capital
(b)
Net
profit
(c)
Paid
up capital
(d)
Called
up capital
24.
A
trader gives the cash book balance of bank column to be Rs. 10,000 (Cr.)
Find the pass book balance, if interest
debited in pass book not recorded in cash book Rs. 150 and cheque issued but
not presented Rs. 2,500.
(a)
Rs. 8,000
(b)
Rs. 7,650
(c)
Rs. 7,500
(d)
Rs. 8,250.
25.
The
gross profit of a concern is Rs. 1,00,000 and gross profit ratio is 25%. The sales return amounted to Rs. 17,500. The
gross sale of the concern is
(a)
Rs. 4,00,000
(b)
Rs. 3,82,500
(c)
Rs. 4,17,500
(d)
Rs. 5,00,000.
26.
―Bills
Payable has been discounted by the creditor‖. This transaction will be
(a)
Recorded
in the Journal
(b)
Recorded
in the Ledger
(c)
Recorded
in the Bank Book
(d)
Not
recorded in the drawee‘s book.
27.
At the
end of the year 2015-16, the ledger of a firm shows following balances to
prepare balance sheet:
Capital Rs.
2,00,000
Net profit for the year 2015-16 Rs. 1,50,000
Provision for taxes Rs. 75,000
Liabilities Rs.
1,00,000
Cash and Bank Rs.
60,000
Fixed Assets Rs.
4,65,000
The total of the balance sheet would
be
(a)
Rs.
4,65,000
(b) Rs. 5,25,000
(c) Rs. 5,65,000
(d) Rs. 5,10,000.
28.
Which
of the following is not a contingent liability?
(a)
Claims
against the firm not acknowledged as debts
(b) Guarantees given in respect of third
parties
(c) Amount due to trade creditor which
is not disputed
(d) Bills discounted from bank.
29.
If the
rate of depreciation is same then the amount of depreciation under straight
line method vis-à-vis written down value will be:
(a)
Equal
in all years
(b)
Equal
in the first year but higher in subsequent years
(c)
Equal
in the first year but lower is subsequent years
(d)
Lower
in the first year but equal in subsequent year.
30.
The
opening stock is overstated by Rs. 10,000 and closing stock is understated
by
Rs. 15,000. The impact of this on net profit for the
current year is
(a)
Rs. 5,000
overstated
(b) Rs. 25,000
overstated
(c) Rs. 25,000
understated
(d) Rs. 5,000 understated
31.
According
to which concept the owner of an enterprise pays the ―Interest on Drawings‖?
(a)
Accrual
concept
(b)
Conservative
concept
(c)
Entity
concept
(d)
Dual
Aspect concept.
32.
A, B
and C are partners in a partnership firm.
During the financial year 2015-16, firm earned profit amounting to Rs.
18,000. They distributed the profit in
the ratio of 2:2:1. But there is no
partnership deed of the firm. Necessary
adjustment entry will be:
(a)
Profit
and Loss Adjustment A/c Dr. Rs. 18,000
To A Rs. 7,200
To B Rs. 7,200
To C Rs. 3,600
(b)
Profit
and Loss Adjustment A/c Dr. Rs. 18,000
To A Rs. 6,000
To B Rs. 6,000
To C Rs. 6,000
(c) A Dr.
Rs. 1,200
B Dr.
Rs. 1,200
To C Rs. 2,400
(d)
None
of the above.
33.
A
draws a bill on B for Rs. 30,000. A wants to settle C‘s account of Rs. 35,000
at 2% discount with the help of B‘s acceptance and balance payment in
cash. How much cash A will pay to C?
(a)
Rs. 4,300
(b)
Rs. 4,000
(c)
Rs. 4,100
(d)
Rs. 5,000.
34.
When
the shares are issued at premium and the premium has already been received by
the company. Later on, if such shares
are forfeited
(a) Securities premium account
should be debited
(b)
Securities premium account should be credited
(c)
Securities premium account should not be affected
(d)
None of the above.
35.
A owed
Rs. 25,000 to B. A became insolvent. B
got A‘s computer valuing Rs. 11,500 in full settlement. Journal entry will be passed in the books of
‗B‘ will be
(a)
Purchase
A/c Dr. Rs. 11,500
To A Rs. 11,500
(b)
Computer
A/c Dr. Rs. 11,500
Bad
debts A/c Dr. Rs. 13,500
To A Rs. 25,000
(c)
Computer
A/c Dr. Rs. 25,000
To A Rs. 25,000
(d)
Computer
A/c Dr. Rs. 11,500
Purchases
A/c Dr. Rs. 13,500
To A Rs. 25,000.
36.
Transactions
of Aruna Ltd. for the period 1.4.2015 to 31.3.2016 are as below:
Direct
expenses Rs.
80,000
Sales Rs.
7,50,000
Purchases Rs.
4,50,000
Stock
as on 31.3.2016 Rs. 3,60,000
Rate
of gross profit on sales is 12%. The
value of stock as on 1.4.2015 was
(a)
Rs.
5,70,000
(b) Rs. 4,90,000
(c) Rs. 5,30,000
(d) None of the above
37.
In
applying dual aspect concept, which of the following is not possible?
(a)
Increase
in asset and increase in liability
(b)
Increase
in liability and decrease in asset
(c) Decrease in asset and decrease in
liability
(d) Increase in asset and increase in
capital.
38.
The
sales day book shows a credit balance of Rs. 25,000 on
1.1.2016. Collection from debtors is Rs.
5,000 on 14.1.2016. The closing balance
of sales day book as on
31.1.2016 will be
(a)
Rs. 30,000
(b) Rs. 5,000
(c) Rs. 20,000
(d) Rs. 25,000
39.
A &
B are partners in a firm. C is admitted as partner with a guarantee of profit
amounting Rs. 10,000. Profit for the
year 2015-16 is Rs. 1,20,000. Profit
sharing ratio of A:B:C is 3 : 2 :1.
Share of C in profit would be
(a)
Rs.
10,000
(b)
Rs.
20,000
(c)
Rs.
30,000
(d)
Rs.
60,000.
40.
A, B
& C are partners sharing profits & losses in equal ratio. A paid firm‘s liability of Rs. 10,000 out of his private funds. How will you record this in firm‘s books?
(a)
No
entry will be made in the books of the firm
(b)
A‘s
Capital A/c Dr. Rs. 10,000
To Capital A/c Rs. 10,000
(c)
Liability
A/c Dr.
Rs. 10,000
To A‘s Capital A/c Rs. 10,000
(d)
Liability
A/c Dr.
Rs. 10,000
To Capital A/c Rs. 10,000.
41.
The
total of the Purchase Return book is posted to the ____________ side of
purchase return account.
(a)
Credit
(b)
Debit
(c)
Both
(d)
None.
42.
A drew
a bill on B for Rs. 5,000 which B accepts.
A endorse the bill in favour of C and than C in favour of D who
discounted the bill for Rs. 4,900. On
maturity the bill is dishonoured and the bank paid noting charges of Rs.
100. What amount would C pay to D?
(a)
Rs.
4,800
(b) Rs. 4,900
(c) Rs. 5,000
(d) Rs. 5,100.
43.
A
customer‘s cheque returned dishonoured is recorded in
(a)
Returns
inward book
(b)
B/R
book
(c)
Bank
book
(d)
Sales
book.
44.
If a
firm makes a number of Promissory Notes usually, it would be convenient to
record the transaction in
(a)
Bills
Receivable Book
(b)
Bills
Payable Book
(c) Journal Proper
(d) Sales Book.
45.
The
amount of the dishonoured bill has been wrongly debited to general expenses
account, which type of error has been committed?
(a) Error of principle
(b) Error of commission
(c)
Compensating
error
(d)
Error
of omission
46.
XY
LTD. issued 25,000 equity shares of Rs. 100 each at a premium of Rs. 15 each
payable as Rs. 25 on application, Rs. 40 on allotment and balance in the first
call. Applications received for 75,000 equity shares but the company issued to
them only 25,000 shares. Excess money was refunded to them after adjustment for
further calls. Last call on 500 shares were not received and were forfeited
after due notice. The above is the case of
(a)
Over
subscription
(b)
Pro-rata
allotment
(c) Forfeiture of shares
(d) All of the above.
47.
Capital
introduced in the beginning by Ram Rs. 15,200, further capital introduced
during the year Rs. 2,000. Drawings Rs. 400 per month and closing capital is
Rs. 16,900. The amount of profit or loss for the year is
(a)
Loss
Rs. 3,000
(b)
Loss
Rs. 2,500
(c)
Profit
Rs. 5,000
(d)
Profit
Rs. 4,500
48.
Raja
started business on 01.01.2015 with a capital of Rs. 20,000 and he borrowed Rs.
3,000 from a friend. He earned a profit of Rs. 10,000 during the year and
withdrew cash Rs. 5,000 for private use. What is his capital at the end of the
year?
(a) Rs. 25,000
(b) Rs. 28,000
(c)
Rs.
30,000
(d)
Rs.
27,000
49.
A, B
& C are partners sharing profits in the ratio of 3:2:1. B retires and
goodwill of the firm is fixed at Rs. 1,80,000. No goodwill A/c appears in the
books of the firm. A & C decide to share profits in the ratio of 3:2. B‘s
share of goodwill will be adjusted in the Capital accounts of A and C in
(a)
Old
Profit sharing ratio
(b)
Gaining
ratio
(c)
Sacrificing
ratio
(d)
New
profit sharing ratio
50.
A
second hand car is purchased for Rs. 15000, the amount of Rs. 1000 is spent on
its repairs, Rs. 500 is incurred to get the car registered in owner‘s name and
Rs. 1200 is paid as dealer‘s commission. The amount debited to car account will
be
(a)
Rs.
17,700
(b)
Rs.
16,000
(c)
Rs.
16,500
(d)
Rs.
17,000
51.
100
articles at the sale price of Rs. 200 each sent to a customer on approval basis
were recorded as actual sales on that price. The sale price was made at cost
plus 25%. The amount of inventory on approval will be
(a)
Rs.
16,000
(b)
Rs.
20,000
(c)
Rs.
15,000
(d)
None
of the above
52.
Accounting
has certain norms to be observed by the accountants in recording of
transactions and preparation of final statements. These norms reduce the
vagueness and chances of misunderstanding by harmonizing the varied accounting
practices. These norms are
(a)
Accounting
regulations
(b)
Accounting
guidance notes
(c)
Accounting
standards
(d)
Accounting
frame work
53.
Dr.
Rs. Cr.
Rs.
Cost
of goods sold
|
1,50,000
|
—
|
Closing
Stock
|
—
|
40,000
|
Debtors
|
—
|
60,000
|
Fixed
Assets
|
50,000
|
—
|
Opening
Stock
|
60,000
|
—
|
Sundry
Expenses
|
—
|
20,000
|
Sales
|
—
|
2,00,000
|
Capital
|
90,000
|
—
|
Creditors
|
30,000
|
|
3,50,000
|
3,50,000
|
Total of corrected trial balance
will be ______
(a) Rs. 3,20,000
(b) Rs. 3,60,000
(c)
Rs.
3,00,000
(d)
Rs.
4,00,000
54.
Following
information pertains to X Ltd. Rs.
Equity share capital called up 4,60,000
Calls
in arrears 7,500
Calls
in advance 5,000
Declared
dividend 5%
The amount of dividend payable will
be ______
(a)
Rs.
22,625
(b) Rs. 23,000
(c) Rs. 20,000
(d) None of the three
55.
X Ltd.
purchased the business of Y Ltd. for Rs. 9,00,000 payable in fully paid shares
of 100 each at a premium of 25%. The number of shares to be issued by X Ltd. to
settle the purchase consideration will be
(a)
7,000
(b)
5,000
(c)
7,200
(d)
None
of the three
56.
Gopal
was holding 100 shares of Rs. 10 each of a company on which he had paid Rs. 3
on application and Rs. 2 on allotment but could not pay Rs. 2 on first call.
Directors forfeited his shares. Share capital will be debited by
(a)
Rs.
1,000
(b)
Rs.
700
(c)
Rs.
500
(d)
Rs.
800
57.
A
manager gets 5% commission on net profit after charging such commission. If
gross profit is Rs. 48,000 and expenses of indirect nature other than manager‘s
commission are Rs. 6,000. Commission amount will be ________
(a)
Rs.
2,100
(b)
Rs.
2,000
(c)
Rs.
2,200
(d)
Rs.
2,400
58.
A
machinery of Rs. 3,000 was sold for Rs. 4,200. Depreciation provision till date
of sale was Rs. 400 and commission paid to the selling agent was Rs. 420 and
wages paid to the workers for removing the machine was Rs. 30. Profit on sale
of machinery will be
(a)
Rs.
1,200
(b)
Rs.
1,000
(c)
Rs.
1,150
(d)
None
of the three
59.
On 1st
January, 2016 Badri of Bombay consigned 100 cases (cost price Rs. 7,500)
at a proforma invoice price of 25% profit on sales to his agent Anil of Agra.
On the same date Badri paid non recurring expenses of Rs. 600. On 5th January
Anil took delivery and paid Rs. 1,200 for octroi. On 31st January he
sold 80 cases for Rs. 10,500. He charged Rs. 775 as his commission. Consignment
profit will be
(a)
Rs.
2,285
(b)
Rs.
2,200
(c)
Rs.
2,500
(d)
Rs.
2,000
60.
Anwar
Ltd. Purchased building worth Rs. 99,00,000 and issued 12% debentures of
100 each at a premium of 10%.
Premium amount will be
(a)
Rs.
9,00,000
(b)
Rs.
8,00,000
(c)
Rs.
7,00,000
(d)
Rs.
10,00,000
SECTION B: MERCANTILE LAW
61.
According
to the doctrine of privity of contract-
(a)
Only
interested party can file suit
(b)
Any
one can file a suit
(c)
A
stranger can file a suit
(d)
One
can file a suit only when he is a party to the contract.
62.
A, B
and C jointly promised to pay Rs. 60,000 to D. Before performance of the
contract, C dies. Here, the contract-
(a)
Becomes
void on C‘s death
(b)
Should
be performed by A and B along with C‘s legal representatives
(c)
Should
be performed by A and B alone
(d)
Should
be renewed between A, B and D
63.
In the
absence of agreement to the contrary all partners are:
(a) Not entitled to share profits
(b) Entitled to share in capital ratio
(c) Entitled to share in proportion to
their ages
(d) Entitled to share profits equally
64.
Selection
of goods with the intention of using them in performance of the contract and
with the mutual consent of the seller and the buyer is known as -
(a)
Distribution
(b)
Appropriation
(c)
Amortization
(d)
Atorage
65.
A sold
a tin of disinfectant powder to K without warning knowing fully that if the tin
was not opened with care, it will likely to cause injury. K was injured while opening the tin. Which of the following statement(s) is/are
correct?
(a)
A is
not liable to K under the Doctrine of caveat emptor
(b)
A is
liable for the damages
(c)
A has
no duty to disclose the facts to K
(d)
The
buyer has the responsibility to enquire about all the things before purchasing
the goods
66. When prior to the due date of
performance, the promisor absolutely refuses to perform the contract, it is
known as-
(a) Abandonment
of contract
(b) Remission of contract
(c)
Actual
breach of contract
(d)
Anticipatory
breach of contract
67.
Goods
which are in existence at the time of the Contract of Sale is known as-
(a)
Present
Goods
(b)
Existing
Goods
(c)
Specific
Goods
(d)
None
of the above
68.
The
reconstitution of the firm takes place in case of __________
(a)
Admission
of a partner
(b)
Retirement
of a partner
(c)
Expulsion
or death of a partner
(d)
All of
the above
69.
The
following conditions must exist so that a promise to pay for the past voluntary
services is binding:
(a)
The
services should have been rendered voluntarily
(b)
The
services must have been rendered for the promisor
(c)
They
must be in existence at the time when the services were rendered and must have
intended to compensate the promise
(d)
All of
the above
70.
A
collateral event is an event-
(a)
The
performance for which is neither directly promised nor it is the entire
consideration for the promise
(b)
The
performance for which is directly promised
(c)
It is
the entire consideration for the promise
(d)
The
performance which is agreed upon by the parties in a Court of Law
71.
A
agrees to pay B Rs.500/- if a particular ship does not return to the port. The
ship was sunk. The contract ________
(a) Can be enforced by B
(b)
Cannot
be enforced by B
(c)
Is
a wagering contract
(d)
Is
unlawful, illegal and against public policy
72.
The
distinction between fraud and misrepresentation is/are the following:
(a)
Misrepresentation
is innocent whereas fraud is deliberate or willful.
(b)
In
misrepresentation the person making the suggestion believes it to be true while
in case of a fraud he does not believe it to be true.
(c)
In
misrepresentation there can be no suit for damages whereas in fraud there can
be a suit for damages.
(d)
All of
the above
73.
Quasi
– contracts arise __________
(a)
Where
obligations are created without a contract
(b)
Where
obligations are created under a contract
(c)
Out of
natural causes
(d)
Out of
man-made causes
74.
Silent
is fraudulent in the following cases:
(a)
If the
circumstances of the case are such that, regard being had to them, it is the
duty of the person keeping silence to speak.
(b)
Where
the circumstances are such that silence is in itself equivalent to speech.
(c)
Both
(a) and (b).
(d)
None
of the above.
75.
A
registered firm cannot claim a set off exceeding the __________ in a proceeding
instituted against the firm or any partner thereof.
(a)
Rupees
1000/-.
(b)
Rupees
100/-.
(c)
Rupees
500/-.
(d)
Rupees
10,000/-.
76.
Expulsion
of a partner, which is not in accordance with provisions of the Indian
Partnership Act, 1932 is __________.
(a)
Null
and void
(b)
Null
and void to some extent
(c)
Is
unconstitutional
(d)
In
good faith and in the interest of the partnership
77. A Hindu widow borrowed money from a
lender for the purpose of filing a suit for maintenance. The lender advanced
money at 100 percent rate of interest. The act of the money lender is induced
by ________.
(a) Coercion
(b)
Undue
–influence
(c)
Misrepresentation
(d)
Mistake
78.
Arun
had deposited a bag in the cloak Room of a railway station by paying Rs. 50/.
On the face of the ticket, issued to him were inscribed ―see reverse for terms
& conditions‖. Clause 10 of the printed Terms
& Conditions limited the liability of the company for loss of a baggage to
Rs. 100/-. The bag was lost and Arun claimed Rs. 650/- as its value.
(a)
Arun
was not bound by the conditions on the back of the ticket as he had not read
them at all.
(b)
Arun
was bound by the conditions on the back of the ticket even if he had not read
them.
(c)
Arun
was not bound by the conditions on the back of the ticket as his claim was 13
times more than the compensation offered to him by the railway company.
(d)
Arun
was bound by the conditions on the back of the ticket as he had not read them
in full.
79.
A
condition may be treated as warranty in the following cases:
(a)
Where
the buyer altogether waives the performance of the condition.
(b)
Where
the buyer elects to treat the breach of condition as one of a warranty.
(c)
In
both of the above situations.
(d)
In
some other situations, but not in the above situations.
80.
Compulsory
Dissolution includes-
(a)
Dissolution
by the adjudication of all the partners or of all the partners but one as
insolvent.
(b)
Dissolution
by the business of the firm becoming unlawful.
(c)
Both
of the above.
(d)
None
of the above.
81.
A
contract between A, B and C was executed whereby A pays money to B for
delivering some goods to C. C has not paid any consideration. Can C enforce the
agreement?
(a)
Yes,
as he is the beneficiary of Trust.
(b)
Yes
but the same can only be done jointly with A.
(c)
No as
C did not pay the consideration.
(d)
A and
only A can enforce the agreement.
82.
A
directs B who is a solicitor to sell his estate by auction and to employ an
auctioneer for this purpose. B names C, an auctioneer, to conduct the sale. The
status of C for the sale is _________.
(a)
C is
an agent of A
(b)
C is a
sub-agent of A
(c)
C is
an agent of B
(d)
C is
neither an agent of A nor of B
83. Goodwill of the partnership business
can be regarded as _________________.
(a) The property of the firm
(b)
The
property of the firm, subject to a contract between the partners to this effect
(c)
The
property of the firm, irrespective of a contract between the partners to this
effect
(d)
The
property of the firm, subject to order of the High Court to this effect
84.
The
bidder at an auction sale can withdraw his bid ________
(a) Any time during auction
(b) Before fall of hammer
(c)
Before
payment of price
(d)
Cannot
withdraw at all
85.
A
share in a partnership be transferred like any other ______
(a)
Property
(b)
Goods
(c)
Currency
(d)
Investment
86.
Total
substitution of new contract in place of old contract takes place in case of
________
(a)
Remission
(b)
Rescission
(c)
Novation
(d)
Alteration
87.
In
case of an agreement to sell, subsequent loss of destruction of the goods is
the liability of ______
(a)
The
buyer
(b)
The
seller
(c)
Both
the buyer and the seller
(d)
The
insurance company
88.
Under
which circumstances the unpaid seller can exercise right of re-sale-
(a)
When
the goods are of perishable nature
(b)
When
he gives notice to the buyer
(c)
When
he gives notice to the buyer calling upon him to pay the price within
reasonable time upon the failure of the buyer to do so.
(d)
Both
(a) and (c)
89.
The
right of lien can be exercised-
(a)
Only
for the price
(b)
Only
for the expenses
(c)
Either
for the price and expenses
(d)
All of
these
90.
A
partner may retire from a firm
(a)
With
consent of all other partners
(b)
With
the consent of main partner
(c)
With
the consent of sleeping partner
(d)
No
consent of any partner
91.
A
invited B to a Birthday party. B promised to attend and give A Rs. 500 as a
present on his birthday. B failed to attend. What are remedies for A –
(a) A cannot recover any damages from B
(b) A can file suit for recovery of Rs.
500
(c) A can file a suit for breaking the
promise
(d) A cannot file a suit for breaking
the promise.
92. Breach of warranty gives right to-
(a)
Reject Goods
(b)
Treat
the contract as repudiated
(c)
Claim
new goods
(d)
Claim
damages but not a right to reject the goods and treat the contract as
repudiated
93.
Implied
conditions include-
(a)
Condition
as to title
(b)
Condition
in case of sale by description
(c)
Condition
in case of sale by sample
(d)
All of
these
94. Caveat emptor means-
(a)
Let the seller beware
(b)
Let
the buyer beware
(c)
both
(d)
Let
the agent beware
95.
Giving
document of title to goods is which type of delivery-
(a)
Symbolic
(b)
Constructive
(c)
Actual
(d)
None
of these
96.
By
transferring the property, the rights and liabilities will transfer to-
(a)
Buyer
(b)
Seller
(c)
Both a
& b
(d)
None
of these
97. Right against goods include-
(a) Right of Rem
(b) Right of Personam
(c) Both
(d) None
98.
When
an unpaid seller who had exercised the right of lien resells the goods, the
buyer acquires ________
(a)
A good
title to the goods as against the original buyer
(b)
Better
title as against the true buyer
(c)
No
title as against the true owner
(d)
None
of these
99. When the time of sending the goods
has not been fixed by the parties the seller must send them within ______ (a) Reasonable time
(b)
One
month of the contract
(c)
Two
months of the contract
(d)
Before
making the contract
100. M, a minor aged 17, broke right arm
in a cricket match. He engaged a physician to set it. Does the physician have a
valid claim for his services. Choose the best alternative.
(a)
The
physician cannot claim for his services due to contract with minor which is
void
(b) The physician has a valid claim for
his services which are included in the ―Necessaries‖
(c) The physician has no claim for minor‘s ―necessaries‖ and minor will be personally liable
(d)
The physician can claim for his services from minor‘s parents
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