SHREE GURU KRIPA S INSTITUTE OF MANAGEMENT

Transcription

1 Name. Roll No.. Date: SHREE GURU KRIP S INSTITUTE OF MNGEMENT MODEL EXM 1 CPT CCOUNTS & LW Total Marks: 100 Time: 2 hours Total No. of Questions: 100 No. of Printed pages: 10 1

2 1. Unless otherwise stated, the preference shares are deemed to be (a) Non cumulative, Non participating and Non convertible. (b) Cumulative, Non participating and Convertible. (c) Cumulative, Participating and Non convertible 2. The following information pertains to X Ltd.: I. Equity share capital called up ` 10,00,000 II. Calls in arrear ` 80,000 III. Calls in advance ` 50,000 IV. Proposed dividend 15% The amount of dividend payable is: (a) ` 1,50,000 (b) ` 1,57,500 (c) ` 1,45,500 (d) ` 1,38, X ltd. Forfeited 100 shares of ` 10 each (` 8 called up) issued at a premium of 2 per share to Mr. R for non payment of allotment money of ` 5 per share (including premium). Out of these 70 shares were re-issued to Mr. Sanjay as ` 8 called up for ` 10 per share. The profit on re-issue is (a) ` 500 (b) ` 400 (c) ` The authorized capital of CS Ltd. Consists of both cumulative preference shares and equity shares. Each 5% cumulative preference share has a par value ` 100. Each equity share has a par value ` 10. During the year the cumulative preference share capital balance was ` 4,00,000 and the equity share capital balance was ` 10,00,000. If dividend declarations totaled ` 16,000 and ` 30,000 in the previous year and current year respectively, the dividends allocated to the equity share holders in the current year =? (a) ` 6,000 (b) ` 10,000 (c) ` 20,000 (d) ` 24, company can not issue any preference share which is redeemable after the expiry of a period of (a) 5 years (b) 10 years (c) 15 years (d) 20 years 6. X Ltd. Decides to redeem 650, 15% Red. Pref. Shares of ` 100 each at a premium of 10%. It has a General Reserve of ` 70,000 and a Securities Premium of ` 4,000. If it is decided to issue 6,500 Equity Shares of ` 10 each at a premium of 5% for the purpose of redemption of Pref. Shares, the amount required to be transferred to capital Redemption Reserve account is (a) ` 65,000 (b) Nil (c) ` 45,500 (d) ` 45, On 1 st pril X Ltd. Issued ` 1,00,000 15% Debentures of ` 100 each at 94% redeemable at per as follows: nominal value of total Yearend Debentures to redeemed 2 10% 3 20% 4 30% 5 40% The amount of discount to be written off each year assuming that the company closes its accounts on financial year basis is (a) ` 2,400, ` 1,800, ` 1,200, ` 600 (b) ` 1,500, ` 1,500, ` 1,350, ` 1,050, ` 600 (c) ` 1,200 each year 8. Ltd. took over the assets of 3,00,000 and liabilities of ` 10,000 of B Ltd. for an agreed purchase consideration of ` 2,70,000 to be satisfied by the issue of 15% Debenture of ` 100 each at 20% premium. (a) Goodwill /c is to be debited with ` 20,000 (b) Capital Reserve /c is to be debited with ` 20,000 (c) Goodwill /c is to be credited with ` 20,000 (d) Capital Reserve /c is to be credited with ` 20, Loss on issue of debentures is treated as. (a) Intangible asset (b) Current asset (c) Current liability (d) Miscellaneous expenditure 10. When Debentures are issued as collateral security, the final entry for recording the transaction in the books is. (a) Credit debentures /c and Debit Cash /c (b) Debit Debentures Suspense /c and Credit Cash /c (c) Debit Debentures Suspense /c and credit Debentures /c. (d) Debit Cash /c and Credit the loan /c for which security is given 11. X Ltd issued 500, 15% Debentures of ` 100 each on 1 st May at a discount of 10% redeemable at a premium of 5% after 4 years. Interest was payable half yearly on 30 th June and 31 st December. The amount of interest debited to Profit & Loss ccount for the year ended 31 st March, is (a) ` 1,250 (b) ` 3,750 (c) ` 5,000 (d) ` 6,875 2

3 12. s per Schedule VI of the Companies ct, 1956, under which of the following heads is Premium on Issue of Preference Shares shown in the Balance Sheet of a Company? (a) Share Capital (b) Non Current Liabilities (c) Reserves and Surplus (d) Current Liabilities 13. X, Y, Z are partners sharing profits and losses in the ratio of ½:1/8:3/8. Z retires and surrenders 4/9 th of his share in favour of x and remaining in favour of Y. The new profit sharing ratio will be: (a) 1:2 (b) 2:1 (c) 4:5 (d) 5:4 14., B and C are partners with profits sharing ratio of 4:3:2. B retires and Goodwill of ` 10,800 was valued. If & C share future profits in the ratio of 5:3, then the amount of goodwill to be shares between and C will be: (a) ` 1,850 and ` 1,950 (b) ` 1,650 and ` 1,750 (c) ` 2,000 and ` 1,600 (d) ` 1,950 and ` 1, , B and C were partners sharing profits and losses in the ratio of 3:2:1. retired and Goodwill of the firm is to be valued at ` 48,000 and Goodwill ccount is to be raised which is not appearing in the balance sheet. What will be the treatment for goodwill? (a) Credited to Revaluation ccount at ` 48,000 (b) Credited to partner s Capital ccounts ` 48,000 in profit sharing ratio. (c) Only s Capital ccount credited with ` 24,000 (d) Only s Capital ccount credited with ` 48, , B and C are partners sharing profits in the ratio of 4:3:2. D is admitted for 2/9 th share of profit and brings ` 18,000 as his capital and the necessary amount for his share of goodwill. The goodwill of the firm is valued at ` 2,43,000. The new profit sharing ratio of, B,C and D will be 3:2:2:2. The sacrificing partners withdrew half of their share of goodwill. They withdrew (a) ` 13,500, ` 13,500 (b) ` 6,750, ` 6,750 (c) ` 6,000, ` 4,500, `3, and B are partners with capitals of ` 20,000 and 40,000 respectively and sharing profits equally. They admitted C as their third partners with one-fourth profits of the firm on the payment of ` 24,000. The amount of hidden goodwill is: (a) ` 12,000 (b) ` 2,000 (c) ` 16, X and Y are partners of a partnership firm sharing profits in the ratio of 5:3 with capital of ` 5,00,000 & ` 4,00,000 respectively. Z was admitted on the following terms: Z would pay ` 1,00,000 as capital and ` 32,000 as Goodwill, for 1/5 th share of profit. The balances of capital accounts after admission of Z will be in the ratio of: (a) 5,20,000 : 4,12,000 : 1,00,000. (b) 5,00,000 : 4,00,000 : 1,00,000. (c) 5,12,000 : 4,20,000 : 1,00, X, Y and Z are sharing profits and losses in the ratio of 5:3:2. They decide to share future profits & losses in the ratio of 2:3:5 with effect from 1 st pril. They also decide to record the effect of following revaluations without affecting the book values of the assets & liabilities, by passing a single adjusting entry: Book Figure Revalued Figure Land & Building ` 60,000 ` 90,000` Plant & ` 90,000 ` 84,000 Machinery Trade Creditors ` 30,000 ` 27,000 Outstanding ` 27,000 ` 36,000 Expenses The necessary single adjusting entry will involve: (a) Debit Z and Credit X with ` 5,400 (b) Debit X and Credit Z with ` 5,400 (c) Debit Y and Credit X with ` 5,400 (d) Debit X and Credit Y with ` 5, The profits and losses for the last years are: 1 year losses ` 20,000, II year losses ` 5,000, III year ` profits ` 1,96,000 & IV year profits ` 1,52,000. The verage capital employed in the business is ` 4,00,000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be ` 2,000 per month. The value of goodwill on the basis of four years purchase of super profits based on annuity of the four years. (Take discounting rate as 10%.) is: (a) ` 27,000 (b) ` 27,136 (c) ` 27,336 (d) ` 27, X, Y and Z are partners in a firm. t the time of division of profit for the year there was dispute between the partners. Profits before interest on partners loan was ` 12,000 and Y determined 24% p.a. on his loan of ` 1,60,000. There was no agreement on this point. Calculated the amount payable to x, Y and Z respectively. (a) ` 4,000 to each partner (b) Loss of ` 8,800 for X and Z & Y will take home ` 25,600 (c) ` 800 for X, ` 10,400 for Y and ` 800 for Z. (d) ` 4,800 to each partner.

4 22. If a fixed amount is withdrawn on the last day of every months of a calendar year, the interest on total amount of drawings will be calculated for: (a) 4.5 months (b) 5.5 months (c) 6 months (d) 6.5 months 23. While finalizing current year s profit, company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by ` 50,000. s a result (a) Previous year s profit is overstated and current year s profit is also overstated (b) Previous year s profit is understated and current year s profit is overstated (c) Previous year s profit is understated and current year s profit is also understated (d) Previous year s profit is overstated and current year s profit is understated. 24. When prices are falling which of the following methods of inventory valuation will give conservative figure of Gross profit (a) LIFO (b) FIFO (c) Weighted average (d) Specific identification method 25. The value of inventory as on pr 4 th is ` 1,60,000. The following transactions takes place during pril 1 st to pril 4 th. The value of stock sold is ` 40,000. The mode of sale is as follows: (i) The damaged goods are sold for ` 15,000, sold at 25% below cost. (ii) The remaining goods are sold at cost plus 25%. The value of stock as on 31 st March is (Damaged goods valued at NRV). (a) ` 2,00,000 (b) ` 1,95,000 (c) ` 2,05, On pril 07, 2014, i.e, a week after the end of the accounting year , a company undertook physical stock verification. The value of stock as per physical stock verification was found to be ` 35,000. The following details pertaining to the period pril 01, to pril 07, 2014 are given I. Goods costing ` 5,000 were sold during the week. II Goods received from consignor amounting to ` 4,000 included in the value of stock. III Goods earlier purchased but returned during the period amounted to ` 1,000. IV. Goods earlier purchased and accounted but not received ` 6,000. fter considering the above, the value of stock held as on March 31, 2014 was (a) ` 27,000 (b) ` 19,000 (c) ` 43,000 (d) ` 51, Consider the following data pertaining to H Ltd. for the month of March 2010: Stock as on 01/03/14-1,80,000 Stock as on 31/03/14-90,000 The company made purchases amounting ` 3,30,000 on credit. During the month of March 2010, the company paid a sum of ` 3,50,000 to the suppliers. The goods are sold at 25% above the cost. The sales for the month of March 2010 were (a) ` 4,12,500 (b) ` 5,25,000 (c) ` 90,000 (d) ` 3,15, new trading company has given the following data regarding the purchase of goods November, ,000 ` 6 each December, ,000 ` 8 each January, ,000 ` 10 each February, ,000 ` 9 each March, ,000 ` 9.5 each Company sells 85,000 units till March, The value of closing stock under FIFO is (a) ` 4,75,000 (b) ` 4,60,000 (c) ` 8,08,000 (d) ` 5,90, The value of issues on on weighted verage cost basis is Opening stock Nil Purchases 100 ` 30 per unit Issued for 50 units 2014 consumption (a) ` 3,000 (b) Nil (c) ` 1,500 (d) ` 2, The total cost of goods available for sale with a company during the current year is ` 12,00,000. Total sales during the period are ` 13,00,000. If the gross profit margin % on cost. Closing inventory of the current year will be (a) ` 4,00,000 (b) ` 3,00,000 (c) ` 2,25,000 (d) ` 2,50,000 4

5 31. Bills receivable account is a (a) Nominal account (b) Personal account (c) Real account. 32. If a Bill of Exchange is drawn on , stating that 20 Days after date, pay to BC, the sum of Rupees XXXX, the due date of the Bill is (a) (b) (c) Mohit discounted a three months bill of `4,00 received from Kumar with his bank for `3,950 Bank informed about the dishonor of the bill paid `10 noting charges on dishonor, the entries in the Journal of Mohit will be (a) Kumar Dr. 4,010 To B/R a/c 4,000 To Cash a/c 10 (b) B/P a/c Dr. 4,000 Nothing Charges a/c Dr. 10 To Mohit 4,010 (c) Bank a/c Dr. 3,950 To Kumar 3,950 (d) Kumar a/c Dr. 4,010 To Bank 4, Mr. sold goods worth `50,000 to Mr. B. B immediately accepted a bill on payable after 2 months. discounted this 18% p.a. on On the due date B failed to discharge the bill. Later on B became insolvent and 50 paise in a rupee is recovered from his estate. Bad debt recorded in the books of will be (a) 25,000 (b) 60,500 (c) 59,780 (d) 61, Nanda informs Kamesh that Shanti s acceptance for `4,000 endorsed to Nanda has been dishonoured. Noting charges `100. In the books of Kamesh, the following entry will be passed a. Nanda Dr. 4,100 To Shanti 4,100 b. Bills payable Dr. 4,100 To Bills receivable 4,100 c. Shanty Dr. 4,100 To Nanda 4,100 d. Shanti Dr. 4,000 Noting charges Dr. 100 To Nanda 4, Sonali had sent a bill of Rupali for `12,000 to bank for collection. But bank informed that the bill has been dishonoured by Rupali. In the books of Sonali, on dishonour, the following entry will be passed a. Rupali Dr. 12,000 To Bills receivable 12,000 b. Rupali Dr. 12,000 To Bank 12,000 c. Bill sent to Bank for collection Dr. 12,000 To Rupali 12,000 d. Rupali Dr. 12,000 To Bill sent to 12,000 Bank for collection draws bill of `1,000 on Mr. B. Mr. B accepts it and returns it to Mr.. Mr. discounts the bill for ` 960 at a discount of ` drew a bill on B for `50,000 for 3 months. Proceeds are to be shared equally. got the bill discounted at 12% p.a. and remits required proceeds to B. The amount of such remittance will be: (a) 24,250 (b) 25,000 (c) 16,167 (d) 32, bill of 12,000 was discounted by with the banker for 11,880. t maturity, the bill returned dishonored, noting charges `20. How much amount will be bank deduct from s bank balance at the time of such dishonor? (a) 12,000 (b) 11,880 (c) 12,020 (d) 11, The debtor on whom a bill of exchange is drawn is called the (a) Drawer (b) Endorser (c) Endorsee (d) Drawee 40. bill is drawn on 29 th Jan 14 for one month after date. The date of acceptance is 2 nd Feb 14. The bill is drawn on one month after date basis. The due date of the bill will be: (a) 28th Feb (b) 1st Mar (c) 2nd Mar (d) 3rd Mar 41. Sale or Return Day Book and Sale or Return Ledger is known as (a) Principal books (b) Subsidiary books (c) Memorandum books 5

6 42. Varun Ltd. sends goods to his customers on Sale or Return recording it as a sale at the time of sending it for approval. During 2014, Varun Ltd. send goods to customers for `1,00,000 on sale or return basis, at cost plus 33.33%. On September a letter of approval was received from a customer for ` 40,000. In this respect, entry will be (a) Debtors account debited and sales account credited with `40,000. (b) Sales account debited and debtors account credited with `40,000. (c) No entry is required for receiving the letter of approval from the customer. (d) Entry will be made at the end of the year. 43. Mr. Y invoiced goods at `1,00,000 which were invoiced at a profit of 25% on invoice price on 10 th March on reject or approval basis. Out of which goods worth `30,000 were accepted by the customers till 31st March and the remaining were still pending with the customers as on 31st March. How would you deal with the goods lying with the customer as on 31st March? (a) Deduct `100,000 from sales and debtors and include goods worth `70,000 in closing stock (b) Deduct `30,000 from sales and debtors and include goods worth `70,000 in closing stock (c) Deduct `50,000 from sales and debtors and include goods worth `66,000 in closing stock (d) Deduct `70,000 from sales and debtors and include goods worth `52,500 in closing stock 44. BC Ltd. sells goods to its approved customers on sale or return basis at a profit of 20% on sales, treating as actual sales. On 26th March, 2014 goods costing `10,000 were sent to nnu Ltd. No confirmation has been received from nnu Ltd. till 31 st March, The stock with customers to be shown as closing stock in the balance sheet of BC Ltd. as on 31st March, 2014 will be (a) ` 12,500 (b) ` 8,000 (c) ` 10,000 (d) Nil 45. Bank ccount of Mukesh was balanced on 31st March. It showed an O/D of `50,000. It was observed that a cheque for `20,000 deposited but not collected till 31st March. Bank charges `500 were charged by Bank in March but accounted in the book of Mukesh on pril 4. The Bank statement shows balance of: (a) `70,500 (b) `69,500 (c) `70,000 (d) `50, Bank overdraft as per Cash Book ` 13,500 Cheque deposited but not credited ` 3,000 Cheque issued by not presented ` 6,000 Overdraft as per Bank statement will be (a) ` 10,500 (b) ` 10,000 (c) ` 11,000 (d) None of the three 47. Debit balance as per Cash Book of T as on is ` 1,500. Cheques deposited but not cleared amounts to ` 100 and Cheques issued but not presented of ` 150. The Bank allowed interest amounting ` 50 and collected dividend ` 50 on behalf of T. Balance as per Pass Book should be (a) 1,600. (b) 1,450. (c) 1,650. (d) 1, Bank overdraft as per trial balance is `1,60,000. Bank has allowed the customer to overdrew 80% of the hypothecated value of the stock. Hypothecation of stock has been done by the Bank at 80% of the original closing stock value. The amount of closing stock is (a) ` 2,00,000. (b) ` 2,50,000. (c) ` 1,02,400. (d) ` 1,28, The credit balance as per pass book of X was ` 65,000. Cheques issued but not paid ` 75,800. Cheques deposited by one of the customers of bank but wrongly credited in X /c ` 20,600. The balance as per Cash Book is. (a) ` 31,400 Debit (b) ` 31,400 Overdraft (c) ` 1,20,000 Debit (d) ` 10,400 Overdraft 50. Bank Reconciliation Statement is prepared to know the causes for the difference between (a) The balance as per cash column of Cash Book and the Pass book (b) The balance as per bank column of Cash Book and the Pass book (c) The balance as per bank column of Cash Book and balance as per cash column of Cash Book (d) None 51. Balance as per Cash Book was `48,000 on cheque issued for `24,000 on 16th Jan. was not cleared till 31st Jan. Cheque worth `10,000 received on 20th Jan and deposited on 21st Jan. was cleared on Balance as per passbook on 31st January (assuming opening balance of passbook and Cash Book are equal) is (a) `14,000 (b) `24,000 (c) `72,000 (d) `82,000.

7 52. Which of these Bank balance shown in trial balance? (a) Balance as per Cash Book (b) s per Bank Pass Book (c) s certified by St. uditor (d) s per Bank statement 53. ssets appearing in the books having no real value are known as (a) Current assets (b) Fictitious assets (c) Intangible assets 54. The following are the ledger balances of a manufacturer of TV sets for the year ended 31 st March 2014 Particulars ` Particulars ` Opening stock Factory fuel and coal 3,600 Raw materials 5,000 Factory wages 12,900 Work-inprogress Purchases of Raw materials Carriage inwards Factory insurance Factory power 4,500 3,000 Factory rates and taxes 37,600 Royalty on production 1,400 Repairs of machinery 2,000 4,000 2,500 2,000 Sales 1,49,000 The cost of closing stock was; Raw materials ` 4,000 and Work-in-progress ` 5,500 The gross profit of this manufacturer is (a) ` 88,000 (b) ` 71,500 (c) ` 80,000 (d) ` 84, Opening and closing balance of debtors are 30,000 & 40,000 respectively. Cash collected from debtors 2,40,000. Discount allowed is 15,000 for prompt payment. Bad Debts ` 10,000. The total goods sold on credit are. (a) 2,55,000 (b) 2,45,000 (c) 2,95,000 (d) 2,75, Bills Receivable discounted but not due till the date of final account is shown in: (a) P & L /c (b) ssets (c) Liabilities (d) Foot-notes (contingent liabilities) 57. Commission received in dvance /c appearing in the Trial Balance is (a) Shown on the liability side of Balance sheet (b) Shown on the ssets side of the Balance sheet 7 (c) Shown on debit side of Profit and Loss /c (d) Credited to Profit and Loss /c 58. The adjustment to be made for outstanding liabilities is: (a) Deduct outstanding liability to respective liability and show it as a liability (b) dd outstanding liability to the respective liability and show it as a liability (c) Deduct outstanding liability to respective liability and show it as asset (d) Not showing it in the P& L account or Balance Sheet 59. The Books of ccounts of Z Ltd. Shows that the balance of sundry debtors is ` 50,000 and reserve for doubtful debts is ` 2,000. Late the management of the company realized that debs to the extent of ` 1,000 will become bad and hence decided to create a reserve at 5% on debtors. The amount of reserve for doubtful debts to be shown in profit and loss account is (a) ` 2,500 (b) ` 2,350 (c) ` 2,450 (d) ` 1, s trial balance contains the following information Sundry creditors ` 80,000 Discount received ` 5,000 Reserve for discount on creditors ` 5,500 It is desired to maintain a reserve for discount on creditors at ` 6,000 Sundry creditors will appear in the balance sheet at a figure of (a) ` 69,000 (b) ` 74,500 (c) ` 63,500 (d) ` 74, general offer may be accepted by (a) ny person (b) Promisee only (c) Legal representative only (d) ny of these 62. Moral pressure is involved in the case of (a) Coercion (b) Undue influence (c) Misrepresentation (d) Fraud 63. Communication of acceptance, as against the proposer, is complete. (a) When the letter of acceptance is put into a course of transmission (b) When the letter of acceptance reaches the proposer

8 (c) When the proposer has actually learnt the contents of the letter of acceptance 64. In a unilateral contract (a) Only one of the parties makes a promise (b) One of the parties has already performed his part of the promise (c) Both the parties have to perform their respective promises (d) Not a contract at all 65. Standing offer means (a) Offer allowed to remain open for acceptance over a period of time (b) fter made to public is general (c) When the offeree offers to qualified acceptance of the offer (d) Offer made to a definite person 66. contract stands discharged by (a) Performance of the contract (b) Frustration of the contract (c) Both (a) and (b) (d) Neither (a) or (b) 67. Offer of promise to perform must be made (a) t the proper time (b) t the proper place (c) In the proper form 68. promisor can perform the promise (a) Through his representatives irrespective of the competency of that representative (b) Through his representative competent to perform (c) Himself (d) Both option (b) & (c) 69. ssignment of contract may be by: (a) Operation of law (b) The act of parties (c) (a) or (b) 70. Reasonable time for a performance of a contract is a: (a) Question of fact (b) Question of prudence (c) Question of law (d) Mixed question of fact and law 71. Whether time is essence of the contract depends on the: (a) Provisions of law (b) Intention of the parties (c) Facts and circumstances of each separate case 72. Contract can be discharged by agreement between parties by the way: (a) Remission (b) Waiver (c) (a) or (b) (d) (a) and (b) 73. nticipatory breach of contract may be (a) Express (b) Implied (c) (a) or (b) (d) (a) and (b) both 74. Specific performance may be ordered by the Court in the following cases (a) When the damages are an adequate remedy (b) When defaulting party is not ready to pay damages (c) When damages are not an adequate remedy (d) When the contract is voidable 75. The quasi contracts includes- (a) Payment by an interested person (b) Liability to pay for non gratuitous act (c) Both (a) & (b) (d) Neither (a) nor (b) 76. Price consideration in a contract of sale can be (a) Only by way of money (b) Only by way of goods in return (c) Partly by way of money or partly by way of goods return (d) No consideration is required at all 77. n agreement to sell is contract (a) Executed (b) Executory (c) Implied (d) Unilateral 78. Consideration in passes from both parties to each other (a) Sale (b) Gift (c) Transfer 79. n greement to sell becomes sale when (a) The conditions are satisfied (b) The parties agree to change the terms of agreement (c) When the court orders (d) When the agreement is in writing 80. When there is an unconditional contract for sale of, the property passes to the buyer at the time when contract is made. (a) Unascertained goods (b) Specific goods in a deliverable state (c) Specific goods to be put in a deliverable state (d) Specific goods in a non-deliverable state. 8

9 81. is a stipulation collateral to the main purpose of the contract. The breach of which gives rise to a claim for damages but not a right to reject the goods and treat the contract repudiate. (a) Warranty (b) Condition (c) Implied condition 82. third party to a contract the parties to the contract: (a) Can sue conditionally (b) Can sue unconditionally (c) Cannot sue (d) None of the a above 83. ll agreements in restraint of trade are (a) Void (b) Valid (c) Voidable (d) Illegal 84. Only those agreements, which are valid are: (a) Contract (b) Proposal (c) Offer 85. Contractual rights and duties are created by: (a) State (b) Statute (c) Parties (d) Custom 86. n agreement enforceable by law under the Indian Contract ct, 1872 may be: (a) In writing (b) Oral (c) Both (a) and (b) (d) Either (a) or (b) 87. voidable contract is one which: (a) Can be enforced at the option of aggrieved party (b) Can be enforced at the option of both the parties (c) Cannot be enforced in court of law (d) Courts prohibit 88. Which of the following is not the legal requirement of a valid acceptance? (a) It must be communicable (b) It must be absolute and unconditional (c) It must be presumed (d) It must be accepted by a person who has the authority to accept 89. Which are of the following is an essential element of a valid contract? (a) Free consent (b) Consideration (c) Competent parties 90. contract to perform a promise could arise by: (a) Standard form of contracts by promise (b) greement and contract (c) Promissory Estoppel 91. Contract which ceases to be enforceable by law becomes a: (a) Valid contract (b) Void agreement (c) Void contract (d) Voidable contract 92. n agreement without consideration is: (a) Valid (b) Void (c) Unenforceable 93. The consideration must be at the desire of the: (a) Promisor (b) Promisee (c) Third party 94. Contract will be valid, if the consideration is: (a) Inadequate (b) Real (c) Illusory (d) Both (a) & (b) 95. Which of the following statement is true? (a) Consideration may be past (b) Consideration may be present (c) Consideration may be future 96. wrong representation when made without any intention to decline the other party amounts to: (a) Fraud (b) Undue Influence (c) Misrepresentation (d) Coercion 97. contract with the minor, which is beneficial for him is: (a) Void ab initio (b) Voidable (c) Valid (d) Illegal 98. Where the consent of both the parties is given by mistake the contract is: (a) Valid (b) Void (c) Voidable (d) Illegal 9

10 99. To make a contract voidable coercion must have been exercised against: (a) Only the promisor (b) ny other person (c) (a) or (b) (d) (a) and (b) 100. enters with a contract with B to sell him 100 bales of cotton and afterwards discovers that B was acting as agent for C. Decide. (a) may sue B only (b) may sue C only (c) may sue either B or C (d) may sue either B or C or both for the price of cotton 10