VIDYA SAGAR CAREER INSTITUTE LIMITED CPT Minor Test 2 (Part A) Series 2 Instruction: Maximum Marks: 100 1. Use HB Pencil to fill ovals for correct answer. Time : 2 Hours 2. Each question carry one mark. Date : 12.11.2014 3. Negative marking.25 marks 4. No negative marking for unattempted questions. 01. If the closing stock is increased by Rs. 5,000 and Gross profit rate is 10% then : (a) Gross profit will be increased by Rs. 5,000 (b) Gross profit will be decreased by Rs. 5000 (c) Gross profit will be increased by Rs. 500 (d) Gross profit will be decreased by Rs. 500 02. E Ltd., a dealer in second-hand cars has the following five vehicles of different models and makes in their stock at the end of the financial year 2010-2011: Car Fiat Ambassador Maruti Esteem Maruti 800 Zen Cost (Rs.) 90,000 1,15,000 2,75,000 1,00,000 2,10,000 Net realizable value (Rs.) 95,000 1,55,000 2,65,000 1,25,000 2,00,000 The value of stock included in the balance sheet of the company as on March 31, 2011 was: (a) Rs. 7,62,500 (b) Rs. 7,70,000 (c) Rs. 7,90,000 (d) Rs. 8,70,000 03. While finalizing the current year's profit, the 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 Rs. 50,000. As 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. 04. Record of purchase of T.V. parts Date Quantity Price per unit Units Rs. March 4 900 5 March 10 400 5.50 Record of issues March 5 600 March 12 400 The value of T.V. sets on 15 March, as per LIFO will be (a) Rs.1,500 (b) Rs.1,650 (c) Rs.1,575. (d) None of the three.
05. A company is following weighted average cost method for valuing its inventory. The details of its purchase and issue of raw-materials during the week are as follows: 1.12.2011 opening stock 50 units value Rs. 2,200 2.12.2011 purchased 100 units @Rs. 47 4.12.2011 issued 50 units 5.12.2011 purchased 200 units @ Rs. 48 The value of inventory at the end of the week and the unit weighted average costs is: (a) Rs. 14,200-Rs. 47.33 (b) Rs. 14,300-Rs. 47.67 (c) Rs. 14,000-Rs. 46.66 (d) Rs. 14,400-Rs. 48.00 06. Consider the following data pertaining to R LTd. for the month of June 2011: Particulars Rs. Opening stock 30,000 Closing stock 40,000 Purchases 5,60,000 Returns outward 15,000 Returns inwards 20,000 Carriage inward 5,000 If the gross profit is 20% of net sales, the gross sales for the month of June 2011 is: (a) Rs. 6,95,000 (b) Rs. 6,75,000 (c) Rs. 5,40,000 (d) Rs. 6,68,750 07. On April 07,2011, i.e., a week after the end of the accounting year 2010-11, a company undertook physical stock verification. The value of stock as per physical stock verification was found to be Rs. 35,000. The following details pertaining to the period April 01, 2011 to April 07, 2011 are given: 1. Goods costing Rs. 5,000 were sold during the week. 2. Goods received from consignor amounting to Rs. 4,000 included in the value of stock. 3. Goods earlier purchased but returned during the period amounted to Rs. 1,000. 4. Goods earlier purchased and accounted but not received Rs. 6,000. After considering the above, the value of stock held as on March 31, 2011 was: (a) Rs. 27,000 (b) Rs. 19,000 (c) Rs. 43,000 (d) Rs. 51,000 08. C Ltd. recorded the following information as on March 31, 2005: Rs. Stock as on April 01, 2004 80,000 Purchases 1,60,000 Sales 2,00,000 It is noticed that goods worth Rs.30,000 were destroyed due to fire. Against this, the insurance company accepted a claim of Rs.20,000. The company sells goods at cost plus 33.33%.The value of closing Inventories, after taking into account the above transactions is, (a) Rs.10,000 (b) Rs.30,000 (c) Rs.1,00,000 (d) Rs.60,000. 09 The books of T Ltd. revealed the following information: Particular Rs. Opening inventory 6,00,000 Purchases during the year 2010-2011 34,00,000 Sales during the year 2010-2011 48,00,000 On March 31, 2011, the value of inventory as per physical stock-taking was Rs. 3,25,000. The company's gross profit on sales has remained constant at 25%. The management of the company
suspects that some inventory might have been pilfered by a new employee. What is the estimated cost of missing inventory? (a) Rs. 75,000 (b) Rs. 25,000 (c) Rs. 1,00,000 (d) Rs. 1,50,000 10. A Company wishes to earn a 20% profit margin on selling price. Which of the following is the profit mark up on cost, which will achieve the required profit margin? (a) 33%. (b) 25%. (c) 20%. (d) None of the above. 11. M/s Delhi Stationers purchase goods from the manufacturers, do packaging and labelling and sell to their customers. At the year-end they had 1,000 pieces of toilet soaps in hand, purchase price of which is Rs.3.25 per piece. These are yet not packed and labelled. The packaging cost per unit is Re. 0.35 per piece and selling price is Rs. 4.25 per piece. The historical cost and selling price of the closing stock will be (a) Rs. 3,250 and Rs.3,900 respectively. (b) Rs. 3,600 and Rs. 4,250 respectively. (c) Rs. 3,250 and Rs. 4,250 respectively. (d) Rs. 3,600 and Rs.3,900 respectively. 12. Which stock valuation method best matches the cost of goods sold with current replacement cost (a) Specific identification method (b) Weighted average method (c) LIFO (d) FIFO 13. On 31st March 2001, the closing stock of X Ltd. was Rs. 3,45,000. On 1st April 2001, stock of Rs. 2,25,000 was destroyed by fire. if the Balance sheet of the company on 31st March 2001 was finalized on 25th April, 2001 then the Balance sheet will show closing Stock at : (a) Rs. 3,45,000, with no mention of fire (b) Rs. 1,20,000, with no mention of fire (c) Rs. 3,45,000, showing loss by fire in footnote (d) Rs. 1,20,000, showing loss by fire in footnote 14. Which of the following statement is false? (a) Under periodic inventory system, inventory control is possible (b) Periodic inventory system is simple and less expensive (c) Periodic system requires closure of business for counting of stock (d) All the above 15. A new firm commenced business on 1st January, 2009 and purchased goods costing Rs. 90,000 during the year. A sum of Rs. 6,000 was spent on freight inwards. At the end of the year the cost of goods still unsold was Rs. 12,000. Sales during the year Rs. 1,20,000. What is the gross profit earned by the firm? (a) Rs. 36,000. (b) Rs. 30,000 (c) Rs. 42,000 (d) Rs. 38,000 16. Goods in Transit but not taken in Closing Stock will be credited to: (a) Purchase A/c or Trading a/c (b) Supplier A/c (c) Goods in Transit a/c (d) Cash A/c 17. Mr Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 during the year. However, he sold damaged goods for Rs.20,000 costing Rs.30,000. This sale is included in Rs.10,20,000. The amount of gross profit is: (a) Rs. 1,90,000 (b) Rs.2,50,000 (c) Rs.2,40,000 (d) Rs.2,00,000. 18. Which of the following sets of expense are the direct expenses of business. (a) Wages, Carriage Inward, Octroi (b) Postage, Wages, Carriage Inward (c) Purchase, Wages, Coal Expenses (d) Both (a) and (c)
19. Opening Stock - Rs.40,000 Purchase - Rs.1,00,000 Closing stock - Rs.30,000 Carriage inwards - Rs.5,000 Carriage outwards - - Rs.3,000 Office rent - Rs.4,000 Sales -Rs.2,00,000 Gross profit will be (a) Rs. 85,000 (b) Rs. 75,000 (c) Rs. 95,000 (d) Rs. 65,000 20. Interest on drawings is for the business. (a) Expenditure. (b) Cost (c) Gain (d) None of the three. 21. If Depreciation is Excess charged by Rs. 500 and closing stock is undervalued by Rs. 500 the net profit will be due to these arrors. (a) Understated by Rs. 500 (b) Overstated by Rs. 1,000 (c) Understated by Rs. 1,000 (d) Unaffected 22. Rs. Rs. Gross Profit 50,000 Provision for Bad Debts (old) 2,000 Rent paid 6,000 Apprentice Premium (Credit) 4,000 Salaries 5,800 Net profit of the firm will be (a) Rs. 44,200 (b) Rs. 40,000 (c) Rs. 42,000 (d) Rs. 45,000 23. Rs. Rs. Salaries 4,000 General expenses 5,100 Interest on overdraft 200 Advertisement 5,000 Office expenses 5,000 Gross profit 35,000 Rent paid 2,000 Commission received 4,000 Capital 50,000 Amount of net profit will be (a) Rs. 17,700 (b) Rs.17,000 (c) Rs. 15,000 (d) None of the three. 24. Find out the corrected net profit; Profit before taking into account following adjustments was Rs.7,00,000 Rs.1,00,000 spent on purchase of motor car for business purpose, treated as expense in Profit & Loss A/c. Rs. 15,000 p.m. rent outstanding for the month of February and March not taken into account - (a) Rs. 7,70,000 (b) Rs. 7,85,000 (c) Rs. 6,15,000 (d) Rs. 6,30,000 25. Nidhi started her business with capital of Rs.45,000 on 1st January, 2009. Interest on drawings Rs.5,000 and interest on capital Rs.2,000 were appearing in the Profit and Loss A/c for the year ended 31st December, 2009. Nidhi withdrew Rs.14,000 during the year and profit earned during the year amounted to Rs.15,000. Her capital on 31st December, 2009 is (a) Rs. 67,000. (b) Rs. 47,000. (c) Rs.45,000. (d) Rs. 43,000.
26. Capital introduced in the beginning by Ram Rs. 16,080; further capital introduced during the year in the form of machinery Rs. 2000; personal expenses during the year - Drawings in cash Rs. 3,000 Life Insurance Premium Rs. 250 Closing capital Rs. 21,925 The amount of profit or loss for the year will be (a) Profit Rs. 7,095 (b) Profit Rs. 7,085 (c) Loss Rs. 5,000 (d) Loss Rs. 6,000 27. A started business on Jan 1 with a capital of Rs. 40,000. On 31st Dec, his position was Creditors Rs. 4,700, machinery Rs. 40,000, furniture Rs. 2,000, Debtors Rs. 1,300, Cash Rs. 15,000. He made drawings @ Rs. 200 per month and Rs. 1,000 which he brought on 1st Oct. in the business as further capital. Business profit will be (a) Rs. 15,000 (b) Rs. 16,000 (c) Rs. 14,000 (d) Rs. 17,000 28. Trial balance shows the following balance Capital - Rs.30,000 (Cr.) Payment of advance income tax - Rs. 1,500 Income tax paid - Rs. 4,000 Capital A/c balance at the end of the year will be (a) Rs. 24,400 (b) Rs. 24,500 (c) Rs. 27,500 (d) None of the above 29. Salary has been paid for 9 months from April to December 2009 amounting Rs. 72,000. The amount of outstanding salary shown in the balance sheet will be (a) Rs. 48,000 (b) Rs. 8,000 (c) Rs. 24,000 (d) Rs. 72,000 30. What will be the treatment of accrued income if appearing in the Trial Balance: (a) It will be shown on the assets side as current assets in the balance sheet (b) It will be shown on the liability side as current liability in the balance sheet. (c) It will be shown on the debit side of trading account as an expenses. (d) it will be shown on the credit side of profit and loss account as an income. 31. Following are the extracts from the Trial Balance of a firm was on 31st December, 2010. Particulars Rs. Sundry debtors 30,000 Bad debts 5,000 Additional information: (i) After preparing the trial balance, it is learnt that a debtor, Mohan became insolvent and therefore, the entire amount of Rs.3,000 due from him was irrecoverable. (ii) 10% provision for bad and doubtful debts is generally created. The amount of provision for bad and doubtful debts to be charged to profit and loss account will be (a) Rs.3,000. (b) Rs.2,700. (c) Rs. 2,500. (d) None of the three. 32. The provision for bad debts is made by crediting : (a) Trading A/c (b) Profit & Loss Account (c) Debtors Account (d) Provision for bad debts account
33. G's trial balance contains the following information - Bad debts Rs. 4,000; Provision for Bad debts Rs. 5,000; Sundry debtors Rs. 25,000 It is desired to create a provision for Bad debts at 10% on Sundry debtors at the end of the year. Sundry debtors will appear in the balance sheet at (a) Rs. 21,000 (b) Rs. 22,500 (c) Rs. 22,000 (d) None of the three 34. Goods costing Rs. 20,000 was sold to Mohan at the invoice price of 20% above cost with a trade discount of 10%. The amount of sales will be (a) Rs. 22,000 (b) Rs. 24,000 (c) Rs. 21,600 (d) Rs. 22,600 35. Sales for the year ended 31st March, 2011 amounted to Rs.10,00,000. Sales included goods sold to Mr. A for Rs.50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer's risk. Therefore, such goods should be treated as part of: (a) Sales (b) Closing stock (c) Goods in transit (d) Sales return 36. will generally show a debit balance. (a) Bank Loan. (b) Bad debts recovered. (c) Salary payable. (d) Drawings. 37. Received one bill from A Rs. 500 passed through B/P book. The rectifying entry will be Rs. Rs. (a) A Dr. 500 To B/P 500 (b) B/R A/c Dr. 500 To A 500 (c) B/P A/c Dr. 500 B/R A/c Dr. 500 To A 1000 (d) None of the above. 38. A Club paid subscription fees of Rs. 1,800 out of which Rs. 400 is prepaid. In such case (a) P & L A/c is debited with Rs. 1,400 (b) Rs. 400 is shown as current assets (c) Both (a) and (b) (d) None of the above. 39. Provisions are : (a) Appropriation of profits (b) Charge on profits (c) Both (d) None 40. The manufacturing account is prepared: (a) To ascertain the profit or loss on the goods produced (b) To ascertain the cost of the manufactured goods (c) To show the sale proceeds from the goods produced during the year (d) Both (b) and (c) 41. Current ratio denotes the relation between : (a) fixed asset and current asset (b) current asset and current liabilities (c) total asset and total liabilities (d) all of the above
42. Historical cost of inventory is : (a) Direct expenses + Indirect expenses (b) Cost of purchase (c) Cost of purchases and other costs incurred in bringing the inventories up to their present location and condition. (d) None of the above 43 A Business prepared his Accounts on 31 st march each year. Due to some unavoidable reasons, no inventory taking could be possible till 15 th April,2011 on which date the total invoice value of Rs. 62,500 is existing the following facts were established between 31 march and 15 th April 2011. (a) Sales Rs 41,000 (including cash sales Rs 10,000) (b) Purchases Rs 5,034 (including cash purchase Rs 1,990 (c) Sales return Rs 1,000 goods are sold by Traders as a profit of 20% on sales. You are required to Ascertain the value of inventory as on 31 st march 2011. (a) 86,966 Rs (b) 76,966 Rs (c) 77,973 Rs. (d) 97,466 Rs 44. Income statement is sub-divided into following two parts for a non-manufacturing concern : (a) Manufacturing a/c, Trading a/c (b) Manufacturing a/c, Trading a/c/, Profit & Loss a/c (c) Trading a/c, Profit & Loss a/c. (d) Trading a/c, Profit &Loss a/c, Balance Sheet 45. It is the allowance given to a customer when his purchase during a period say one year total upto a certain figure : (a) Trade discount (b) Cash Discount (c) Rebate (d) All of the above 46. Closing entry for bad debt recovered will be : (a) Cash a/c Dr To Debtor (b) Cash a/c Dr To Bad Debt Recovered (c) Bad Debt recovered a/c Dr To Profit & Loss A/c (d) None of the above 47. Which inventory system requires closure of business for counting of inventory : (a) Prepetual inventory system (b) periodic inventory system (c) Both (a) & (b) (d) None of the above 48. Which method of Inventory valuation is known as retail inventory method (a) FIFO (b) LIFO (c) Weighted average method (d) Adjusted selling price method 49. The accounting entry for closing inventory will be : (a) Closing inventory a/c DR To Trading a/c (b) Closing inventory a/c DR To Purchases a/c (c) Either A or B (d) None of the above
50. Export duty will be shown in : (a) Trading a/c (b) As a administrative exp. (c) As selling and distribution exp. (d) None of the above 51. Sole proprietors generally present balance sheet in : (a) Vertical form (b) Horizontal form (c) As per schedule VI guide line (d) None of the above 52. A statement which sets on the assets and liabilities of a firm or an institution as at a certain date is known as : (a) Trial balance (b) Balance sheet (c) Accounting report (d) All of the above 53. Inventory valuation techniques is adopted when inventory, not ordinarily inter changeable is : (a) FIFO (b) LIFO (c) Average Price (d) Specific Identification Method 54. Which method of inventory valuation is non historical method: (a) FIFO (b) LIFO (c) Weighted Average Price (d) Adjustable Selling Price 55. Consider the following statements: (i) Loss by fire must be debited to profit & loss A/c (ii) Loss resulting from the fall of selling price below the cost must be debited to profit & loss A/c (iii) Salary paid must be debited to profit & loss A/c (iv) Bad Debts must be debited to Profit & Loss A/c Out of the above which are exceptions to the general rules that only such costs as have yielded or expected to yield revenue should only be debited to Profit & Loss A/c. (a) (i) & (ii) (b) iii (c) iii & iv (d) I, ii & iv 56. Sales Tax will be debited to Profit & Loss A/c: (a) To the extent recovered from customers (b) To the extent not recovered from customers (c) Both recovered and not recovered from customers (d) To the extent paid to sales tax department 57. Which is not financial expenses: (a) Interest (b) Discount on Bill discounted (c) Discount Allowed to Customers (d) Bad Debts 58. The following ledger posting in the debtors Account specify: (a) Trade Discount (i) is allowed for payment before a certain date (b) Cash Discount (ii) is allowed when a customer s purchases during a period total up to a certain figure. (c) Bad Debts (iii) allowed when the order of goods is not below a certain figure. (d) Rebate (iv) is debited when all hope of recovery is lost. (a) ii iii iv i (b) iii iv i ii (c) iii i ii iv (d) iii i iv ii
59. From the following information calculate the Debtors before writing of bad debts: Opening Bad Debts Provision : 400 Closing Bad Debts Provision : 700 Profit & Loss debited for Bad Debts & Provision : 1300 Provision for Bad Debts is equal to 5% of Debtors: (a) ` 15,000 (b) ` 14,000 (c) ` 26,000 (d) ` 20,000 60. Goods of ` 10,000 lost by fire. Due to this: (a) Gross profit will reduced by ` 10,000 but no effect on Profit & Loss. A/c (b) No effect on Gross profit but Net Profit will reduced by ` 10,000. (c) Gross profit and Net profit both will be reduced by ` 10,000. (d) No effect on Gross Profit and Net Profit. 61. On the valid performance of the contractual obligations by the parties, the contract (a) is discharged. (b) becomes enforceable. (c) becomes void. (d) none of these. 62. Contract to marry a person shall be performed by: (a) A third person (b) Promisor himself (c) Representative of the promisor (d) None 63. An offer of performance must be : (a) Unconditional (b) Made at proper time and place (c) (a) & (b) above (d) None of the above 64. 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 65. In commercial transactions, time is considered to be the essence of the contract, and if the party fails to perform the contract within specified time, the contract becomes (a) Void and cannot be enforced (b) Enforceable in higher courts (c) Illegal for non-compliance of contractual terms (d) Voidable at the option of the other party 66. X agrees to sell Y 50,000 quintals of wheat at 100 ` per quintal on 03.11.06. On the due date X refuses to deliver. Market price of wheat on that date is 110/quintal. How much Y can claim? (a) Rs. 50,00,000 (b) Rs. 5,00,000 (c) Rs. 5,50,000 (d) None of the above 67. A contract can be discharged. (a) By mutual Agreement (b) By impossibility of performance (c) By breach of contract. (d) By all the above 68. A change in nature of obligation of contract known as (a) Alteration (b) Repudiation (c) novation (d) Rescission
69. Discharge by mutual agreement may involve... (a) Novation (b) Recission (c) Alteration (d) Novation, recission and alteration 70. Match the following: (i) Novation (a) When all or some of the terms of the contract are cancelled. (ii) Rescission (b) When all or some of the terms of the contract are modified by mutual consent of parties (iii) Alteration (c) Acceptance of a lesser fulfillment of the promise made (iv) Remission (d) New contract substituted for an existing one between same parties i ii iii iv (a) a b d c (b) d a b c (c) d c b a (d) b a d c 71. Doctrine of restitution does not apply against a. (a) Person of unsound mind (b) Fraud (c) Minor (d) None of the above 72. Novation requires : (a) Mutual consent (b) Mutual agreement (c) Free consent (d) None 73. Breach of contract may be (a) Actual breach of contract (b) Anticipatory breach of contract (c) (a) or (b) (d) (a) not (b) 74. Anticipatory breach is the repudiation of the contract (a) During the performance (b) On due date of performance (c) Before the due date of performance (d) Both (a) and (b) 75. does not exist. (a) Liability for special damages (b) Liability for exemplary damages (c) Liability for nominal damages (d) Liability for disciplinary damages 76. Where there is breach of contract, special damages are awarded only when (a) There are special circumstances (b) There is special loss (c) There is notice of the likely special loss (d) In all cases 77. Suit for specific performance & suit for injunction. (a) Are remedies which provide the same result (b) Are different remedies and they provide different results (c) Are not the correct way to act against the party committing the breach (d) Are the only correct way to act against the party committing the breach
78. A buyer can sue for specific performance of the contract if the goods are (a) Specific (b) Future (c) Contingent (d) Perishable 79. Match the following: 1. liquidated damages (a) Disproportionate and unfair estimate of probable damages 2. Special damages (b) Part of purchase price paid in advance 3. Penalty (c) Damages due to special or unusual circumstances 4. Earnest money (d) Genuine pre-estimate of probable damages 1 2 3 4 (a) d c a b (b) d c b a (c) c d a b (d) c d b a 80. X owes Y two sums, one for Rs. 2,000 which is barred by Limitation and another for Rs. 2,500 which is not barred. X pays Y Rs. 1,000 on account generally. Later Y sues for Rs. 2500. X pleads: (i) As to Rs. 2,000 that it was time barred, and (ii) As to Rs. 2,500 a part payment of Rs. 1,000 (a) Y can appropriate the payment of Rs. 1,000 towards the first debt & X is bound to pay Rs. 2,500 which is not yet barred by limitation (b) Both the contentions of X are wrong (c) Either (a) or (b) (d) Both (a) and (b) 81. The agent should be in possession of goods with the consent of the... (a) Owner (b) Seller (c) Buyer (d) Principal 82. A contract to do or not to do something if some event, collateral to such contract does or does not happen is. (a) A contingent contract (b) A wagering contract (c) Illegal (d) Void 83. The event upon which performance of a contingent contract depends must not depend on the of the promisor. (a) Will (b) Deeds (c) Rules (d) Principles 84. A contingent contract depending on the happening of future uncertain event can be enforced when the event (a) happens (b) Becomes impossible (c) Does not happen (d) Either of these 85. A contracts to pay B Rs. 1,00,000 if the latter's house is burnt to ashes. This is an example of... (a) Contingent contract (b) Quasi-contract (c) Guarantee (d) Bailment
86. Quasi contract are based on the principles of: (a) Equity and justice (b) Equity and good conscience (c) Equity, justice and good conscience (d) None of the above 87. U leaves his goods at V's place who consumes them. V is bound to pay the price. V's act of consumption an implied promise to pay, under the principal of: (a) Deemed Contractual obligations (b) Semi Contractual Obligations (c) Contractual Obligations (d) Quasi-Contractual obligations 88. A person to whom money has been paid, or anything delivered by mistake (a) Becomes the owner of such money or those goods. (b) Must repay the money or return those goods. (c) Is allowed to sell the goods and retain the money realized from such sale. (d) Has no obligation to return the money, he may do so only return the goods 89. A party to contract promises to do a certain thing at a specified time, but he fails to do so. Can the promisee in the circumstances avoid the contract? (a) No promisee has no right. (b) yes, promisee has such right (c) Yes, promisee has such right only if both the promisor and the promisee intended that time should be essence of the contract (d) None of the above 90. In case of anticipatory breach aggrieved party has a right to claim------------- (a) Damages (b) Compensation (c) a or b (d) a and b 91. In what circumstances Doctrine of frustration is not applicable- (a) Self induced impossibility (b) Strike (c) Difficulty in Performance (d) All of the above 92. Clayton s case related to- (a) Supervening Impossibility (b) Quantum Meruit (c) Quasi Contract (d) Appropriation of Payments 93. A owes money to B under a contract. It is agreed between A, B and C that B shall thenceforth accept C as his debtor, instead of A. It is known as- (a) Alteration (b) Novation (c) Remission (d) Waiver 94 What is the purpose of the court behind Nominal Damages? (a) To punish defaulter party (b) To compensate aggrieved party (c) To establish the right to decree for breach of contract (d) All of the above 95. If a cheque was wrongfully dishonored, then Drawer of the cheque can claim Vindictive Damages from his banker, due to- (a) Injury caused to his feelings (b) Loss of credit and reputation suffered on that account (c) Relationship of service provider and client (d) Both a and b
96. Which of the following contract related to Quantum Meruit? (a) Contingent contract (b) Quasi Contract (c) Contract of Indemnity (d) Contract of Bailment 97. Where a party to a contract is negativating the terms of a contract, the Court may by issuing of ------- order, can restrain defaulter party from doing against the terms of contract. (a) Special order (b) Ordinary order (c) Injunction order (d) Rescission order 98. There is no offer, no acceptance, no consensus ad idem but yet the law imposes an obligation, what kind of contract it is--------- (a) Contingent contract (b) Formal contract (c) Simple contract (d) Quasi contract 99. No consideration is required for- (a) Novation (b) Rescission (c) Remission (d) Alteration 100 X contracted to sell 100 Kg of sugar to Y at Rupees 25 per Kg on a certain date. In anticipation X contracted to purchase from Z the same quantity at Rupees 20 per Kg. Z does not deliver the sugar to X. X suffers the loss of Rupees 5 per Kg. Can X recover this loss from Z? (a) Yes, due to breach of contract (b) Yes, due to breach of contract by Z, X could not deliver goods to Y (c) Cant s say (d) No, this loss amount to special loss which X and Z had not contemplated in their contract