AT SAMVIT, WE DON’T JUST HELP YOU CLEAR. … - CPT_December 2017... Malleshwaram | Rajajinagar | Jayanagar Call 9845861108 | 9535145650 | 9964204724 AT SAMVIT, WE DON’T JUST HELP

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SOLUTIONS TO THE CPT DECEMBER 2017 EXAM – ACCOUNTING

1. Prepaid Insurance account is a _______ a) Nominal account b) Real account c) Representative Personal account d) Artificial Personal account Samvit Academy Tip: Prepaid Insurance means insurance paid in advance to the Insurance Company which is an artificial person. Hence, Prepaid Insurance A/c is a representative personal account as it represents a person. 2) A trader purchased goods for Rs. 4,000 at a trade discount of 5%. As he paid the amount immediately, a cash discount of Rs. 100 was also allowed. In this case, Purchases A/c is debited by a) Rs. 4,000 b) Rs. 3,800 c) Rs. 3,700 d) Rs. 3,900 Samvit Academy Tip: Only Trade Discount must be reduced. Hence Purchases to be debited is Rs 4,000 - 5%*4,000 = Rs 3,800 3) Some of the goods purchased for trading are used for the construction of business premises. The account to be credited is ________ a) Business premises A/c b) Purchases A/c c) Sales A/c d) None of the above Samvit Academy Tip: The entry to be passed is as follows: Building A/c -Dr To Purchases A/c 4) Cash Book is a type of _____ but treated as a _____ of accounts. a) Subsidiary book, principal book b) Principal book, subsidiary book c) Subsidiary book, subsidiary book d) Principal book, principal book Samvit Academy Tip: Cash Book is actually a subsidiary book but is treated as a Principal Book as it also the Cash/Bank/Discount A/c in effect. 5) Starting with the Debit balance as per Cash Book, cheques deposited but not cleared will be a) Added in B.R.S. b) Deducted in B.R.S



c) Ignored in B.R.S. d) None of the above Samvit Academy Tip: Cheques deposited increases Cash Book Balance. Hence Cash Book is higher. To arrive at the Pass Book balance in the BRS, we need to DEDUCT it. 6) Increase in the value of Assets Rs. 1,00,000 Decrease in the value of Liabilities Rs. 50,000. Then owner’s equity will a) Increase by Rs. 1,50,000 b) Increase by Rs. 50,000 c) Decrease by R%s. 1,50,000 d) Decrease by Rs. 50,000 Samvit Academy Tip: If Assets increase by Rs 1,00,000 and Liabilities decrease by Rs 50,000, the owners capital will increase by Rs 1,50,000. 7) Net profit before charging manager’s commission is Rs. 49,500 and the manger is to be allowed a commission of 10% on the profit after charging such commission. Commission amount will be _____ a) Rs. 5,000 b) Rs. 4,950 c) Rs. 4,500 d) None

Samvit Academy Tip: Commission to be paid = Rs 49,500 * 10/110 = Rs 4,500

8) Goods costing Rs. 8,000 were destroyed by fire. Insurance company accepted a claim of Rs. 5,000. The amount to be credited to Purchases/Trading A/c will be _____ a) Rs. 5,000 b) Rs. 8,000 c) Rs. 3,000 d) Rs. 13,000

Samvit Academy Tip: Purchases to be credited by Rs 8,000 which is the cost of goods lost. Insurance claim will be recorded separately in P&L A/c

9) Capital introduced at the beginning by Ram Rs. 13,000. Further capital introduced during the year Rs. 3,000. Drawings Rs. 4,000 and closing capital is Rs. 20,000. The amount of net profit will be: a) Rs. 8,000 b) Rs. 7,000 c) Rs. 4,000 d) Rs. 11,0000

Samvit Academy Tip: The equation is as follows: 13,000 + 3,000 - 4,000 + Profit = Rs 20,000 Hence Profit = 8,000



10) Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs. 1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs. 1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be: a) Rs. 1,57,500 b) Rs. 1,50,000 c) Rs. 1,80,000 d) Rs. 1,65,000

Samvit Academy Tip: Rent Expense for year ending 31st Dec 2017 = 12,500 * 9 + 15,000 * 3 = Rs 1,57,500 (Rent p.m till Sep 30th 2017 = Rs 1,50,000/12 = Rs 12,500) (Rent p.m till from Oct 1st 2017 to Dec 31st 2017 = Rs 1,80,000/12 = Rs 15,000)

11) The purpose of accommodation bill is: a) To finance actual purchase or sale of goods b) To facilitate trade transmission c) When both parties are in need of funds d) None of the above

Samvit Academy Tip: Accommodation Bill is used when parties are in need of funds. It need not be preceded by an actual purchase or sale of goods.

12) On 15.02.17 X draws a bill on Y for 30 days. Y accepted the bill on 18.02.17. The maturity date of the bill will be: a) 18.03.17 b) 21.03.17 c) 23.03.17 d) None of the above

Samvit Academy Tip: Since the nature of the bill is not given it is assumed to be a bill drawn at sight. Hence, 30 days will start from 18/2/17. Therefore the due date is 20/3/17 + 3 days = 23/3/17

13) For mutual accommodation of Mita and Rita, Rita accepted a bill drawn on her by Mita for Rs. 7,500. The said bill is discounted by Mita at Rs. 7,400 and remitted 1/3rd of the proceeds to Rita. To honour the bill, the amount to be paid by Mita to Rita on the due date will be a) Rs. 7,500 b) Rs. 4,500 c) Rs. 5,000 d) None Samvit Academy Tip: Amount to be remitted by Mita on due date = 2/3*7,500 = Rs 5,000 14) Ram draws a bill on Rahim for Rs. 15,000. The bill was discounted with Bank at Rs. 14,900. On the due date the bill was dishonoured and the noting charges amounted to Rs. 50. What is the amount to be debited by Bank to Ram’s account ? a) Rs. 14,000



b) Rs. 14,900 c) Rs. 15,000 d) Rs. 15,050 Samvit Academy Tip: Amount which will be charged by Bank = 15,000 + 50 = Rs 15,050 15) G draws a bill on R. G endorses the bill to S. On the due date the bill is dishonoured. On dishonor, which account is credited in the books of G? a) Bill Receivable A/c b) S A/c c) R A/c d) Bills Payable A/c Samvit Academy Tip: Entry to be passed by G on dishonour after endorsement is R's A/c -Dr To S's A/c 16) 600 boxes of goods are consigned at a cost of Rs. 250 each. Consignor’s expenses amounted to Rs. 3,000/ 1/6th of the boxes are still in transit. 3/5th of the boxes received by consignee are sold at Rs. 300 each. The value of goods in transit will be a) Rs. 25,500 b) Rs. 25,000 c) Rs. 30,000 d) Rs. 40,000 Samvit Academy Tip: Total cost of goods sent = (600*250)+3,000 = 1,53,000 Cost of goods still in transit = Rs 1,53,000 * 1/6 = Rs 25,500 (Consignee expenses should be ignored) 17) MN of Mumbai sent out goods costing Rs. 4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs. 5,00,000. However, the consignee could recover Rs. 4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be ____ a) Rs. 25,000 b) Rs. 17,000 c) Rs. 20,000 d) Rs. 33,000 Samvit Academy Tip: Since Del-Credere commission is paid, Commission to be transferred to P&L in the books of consignee = 5%*5,00,000 - 8,000 = Rs 17,000 18) Mr. Mehta sent 1,000 shirts costing Rs. 400 each to Mr. Kehta on consignment basis. Mehta paid Rs. 20,000 as expenses. Kehta sold 900 shifts at Rs. 500 each. His selling expenses amounted to Rs. 15,000. Find the value of closing inventory.



a) Rs. 42,000 b) Rs. 43,500 c) Rs. 40,000 d) Rs. 45,000 Samvit Academy Tip: Closing Inventory = (1,000*400+20,000)*100/1000 = Rs 42,000 19) P & Q entered into a joint venture. P purchased 5,000 units of goods at Rs. 30 each. Q sold Rs. 4,800 units at Rs. 50 each. The remaining goods were taken over by Q at a value of Rs. 5,000. P is allowed a commission of 2% on purchases and Q is allowed a commission of 1% on sales. Find the share of Q in the profit of joint venture. a) Rs. 46,300 b) Rs. 44,800 c) Rs. 46,000 d) Rs. 45,000 Samvit Academy Tip: Profit on Venture = (4800*50+5000)-(5000*30+150000*2%+4800*50*1%) = Rs 89,600 Q's Share = 89,600 * 1/2 = Rs 44,800 20) Mukesh and Vimal entered into a Joint Venture. Mukesh purchased goods for Rs. 36,000 and paid Rs. 3,900 as expenses. Vimal purchased goods for Rs. 17,000 and paid Rs. 3,000 as expenses. Entire goods were sold for Rs. 65,000. They share profits and losses in the ratio of 2:1. The final remittance to Mukesh will be _____ a) Rs. 43,300 b) Rs. 40,000 c) Rs. 50,000 d) Rs. 65,000 Samvit Academy Tip: Profit on Venture = 65,000 - 36,000 - 3,900 - 17,000 - 3,000 = Rs 5,100 Mukesh's share = 2/3*5100 = Rs 3,400 Mukesh's current position = Rs 39,900 (Negative) Hence, he has to receive Rs 39,900 + 3,400 = Rs 43,300 21) Which of the following expenses is not included in the acquisition cost of a plant and equipment? a) Cost of site preparation b) Delivery and handling charges c) Installation costs d) Fire Insurance premium Samvit Academy Tip: Fire Insurance Premium should not be included as it not a direct cost of purchase nor is it related to installation and getting the Plant & Equipment ready for use.



22) A machinery was purchased for Rs. 6,00,000 on 1.04.2012 and paid Rs. 30,000 on its installation. It is estimated that the useful life of the machinery is 10 years and its scrap value is Rs. 20,000. The amount of depreciation to be charged for the year ending 31.03.2017 will be _____ a) Rs. 61,000 b) Rs. 62,000 c) Rs. 60,000 d) Rs. 63,000 Samvit Academy Tip: Depreciation per year = Rs 61,000. Sine nothing is mentioned, it is assumed that SLM is followed. Hence the depreciation to be charged for year ending 31/3/17 is Rs 61,000. 23) The book value of a machinery on 1.04.16 was Rs. 70,000. Depreciation is charged at 10% p.a. under W.D.V. Method on 31st March every year. The machine was sold for Rs. 60,000 on 1.08.17. Calculate the Profit/Loss on sale of machinery a) Profit Rs. 3,000 b) Loss Rs. 3,000 c) Profit Rs. 900 d) Loss Rs. 900 Samvit Academy Tip: WDV on 1/4/17 = 70,000 - 10% = Rs 63,000 WDV on 1/8/17 = 63,000 - (63,000*10%*4/12) = Rs 60,900 Hence, loss on sale = 60,900 - 60,000 = Rs 900 24) The objectives of providing depreciation on an asset are a) To ascertain the true Profit/Loss of the firm b) To provide funds for the replacement of fixed asset c) To show the true financial position in the Balance Sheet d) All of the above Samvit Academy Tip: All of the above 25) A machine is purchased for Rs. 3,00,000. Its estimated working life is 28,000 hours, the Scrap value is Rs. 20,000. Anticipated pattern of working hours are as follows:

Year Hours

1-3 3,000

4-6 2,600

7-10 2,800

Depreciation for the 8th year is _____ a) Rs. 28,000 b) Rs. 19,286 c) Rs. 30,000 d) Rs. 26,000 Samvit Academy Tip: Depreciation per hour = (3,00,000-20,000)/28,000 = Rs 10/hour



Hence dep for Year 8 = 2,800 * 10 = Rs 28,000 26) A sales return of Rs. 2,000 has been wrongly posted to the credit of Purchase Returns account, but has been correctly posted to the customer’s account. The effect on the trial balance will be _____ a) Debit total increases by Rs. 4,000 b) Credit total increases by Rs. 4,000 c) Credit total increases by Rs. 2,000 d) Debit total increases by Rs. 2,000 Samvit Academy Tip: In the given error, both Purchase Return and Customers A/c have been credited, therefore the Credit side of the Trial Balance will be higher by Rs 4,000 27) While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing inventory of the previous year. In the previous year, closing inventory 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 Samvit Academy Tip: If closing inventory of last year is overstated, it will result in overstatement of profits of last year as well as understatement of profits of current year. 28) An amount of Rs. 500 received from a customer has been debited to his account. This error is classified as _____ a) Error of principle b) Error of omission c) Error of commission d) Compensating error Samvit Academy Tip: The error is an error of commission as instead of crediting the Customers A/c we have debited his account 29) Under sales on return or approval basis, the ownership of goods is passed only a) When the retailer gives his approval b) If the goods are not returned within specified period c) Both (a) & (b) d) None of the above Samvit Academy Tip: The answer is Both (a) and (b) 30) Goods were sent to a customer on Sale or Return basis art cost + 30%. The invoice price is Rs. 6,500. At the end of the year market value of the goods is 5% less than the cost. Closing inventory is valued at a) Rs. 5,000 b) Rs. 4,750 c) Rs. 4,800



d) Rs. 6,170 Samvit Academy Tip: Cost of goods lying with customer = Rs 6,500*100/130 = 5,000 Since, the current market value of the goods is 5% lesser than cost, it has to be recorded at 5,000-5%= Rs 4,750 31) A trader has an opening inventory of Rs. 70,000 on 1.1.2016, which consists of a slow moving item costing Rs. 10,000 and was written off by Rs. 2,000. This item was sold for Rs. 9,000 during the year. Barring this transaction, the gross profit on sales for the year 2016-17 remained at 20%. The sales and purchases during the year amounted to Rs. 5,09,000 and Rs. 3,78,000 respectively. Find the value of closing inventory on 31.03.2017. a) Rs. 44,000 b) Rs. 38,000 c) Rs. 40,000 d) Rs. 42,000 Samvit Academy Tip: First find the gross profit Gross Profit on normal sales = (5,09,000 - 9,000) * 20% = Rs 1,00,000 Gross Profit on abnormal sales = Rs 9,000 - 8,000 = Rs 1,000 Total Gross Profit = Rs 1,01,000 Using the above gross profit, we can find out closing inventory as follows: 70,000+3,78,000+1,01,000 = 5,09,000+Closing Inventory Hence Closing Inventory = Rs 40,000 32) During a year the sales and purchases of a firm amounted to Rs. 4,00,000 and Rs. 4,00,000 respectively. Opening inventory was Nil. Closing inventory at selling price was Rs. 1,00,000. Find out the cost of closing inventory using Adjusted Selling price Method. a) Rs. 80,000 b) Rs. 1,00,000 c) Rs. 1,50,000 d) Rs. 1,40,000 Samvit Academy Tip: First find out GP% GP = 4,00,000 + 1,00,000 - 4,00,000 = Rs 1,00,000 GP % = GP/(Closing Stock + Sales) * 100 = 1,00,000/5,00,000 * 100 = 20% Hence, Closing Stock = 1,00,000 - 20% = Rs 80,000 33) E Ltd, a dealer in second-hand cars has the following five vehicles of different models and makes in their inventory at the end of the financial year 2009-2010. Car Cost NRV (Rs.) (Rs.) Fiat 90,000 95,000 Ambassador 1,15,000 1,55,000 Maruti Esteem 2,75,000 2,65,000 Maruti 800 1,20,000 1,25,000



The value of inventory included in the balance sheet of the company as on March 31, 2010 was: a) Rs. 7,62,500 b) Rs. 7,70,000 c) Rs. 5,90,000 d) Rs. 8,70,000 Samvit Academy Tip: Closing Inventory = 90,000+1,15,000+2,65,000+1,20,000 = Rs 5,90,000 34) Guarantees given in respect of third parties will be considered as _____ a) Contingent liability b) Current liability c) Contingent asset d) Provision Samvit Academy Tip: Contingent Liability is a liability which may or may not result in an outflow of money depending on a future uncertain event. In this case, the guarantee will result in an outflow only if the person who has the original liability does not pay. Therefore it is a contingent liability. 35) IN the absence of any provision in the partnership agreement, profit and losses are shared a) IN the ratio of capital b) Equally c) IN the ratio of loans given by them to the firm d) None of the above Samvit Academy Tip: When there is no mention about the profit sharing, profits or losses are shared equally as per the Indian Partnership Act, 1932. 36) R, S and T are partners sharing profits and losses in the proportion of 3:2:1 S retired and the new profit sharing ratio between R and T is 3:1 and the Reserve of Rs. 15,000 is divided among the partners in the ratio of ____ a) Rs. 2,500 :Rs. 5,000 : Rs. 7,500 b) Rs. 5,000 :Rs. 2,500 : Rs. 7,500 c) Rs. 7,500 :Rs. 5,000 : Rs. 2,500 d) Rs. 2,500 :Rs. 7,500 : Rs. 5,000 Samvit Academy Tip: Reserves should be shared in the Old Profit Sharing Ratio. Hence the answer is 7,500:5,000:2,500 37) Calculate the value of goodwill of a firm under Capitalization Method. Capital Employed in the firm Rs. 6,00,000 Reasonable Rate of Return 14% Average Profit is Rs. 1,12,000 a) Rs. 2,10,000 b) Rs. 2,00,000



c) Rs. 2,80,000 d) Rs. 2,40,000 Samvit Academy Tip: Actual Capital = Rs 6,00,000 Normal Capital = 1,12,000/14% = Rs 8,00,000 Hence, Goodwill = Rs 2,00,000 38) At the time of retirement of a partner, firm gets ____ from the insurance company against the Joint Life Policy taken jointly for all the partners. a) Policy Amount. b) Surrender Value c) Policy Value for the retiring partner and Surrender Value for the rest. d) Surrender value for all the partners. Samvit Academy Tip: In the case of retirement, the JLP must be surrendered and hence the firm will receive the surrender value. 39) Goodwill brought in by incoming partner in cash for joining in a partnership firm is taken away by the old partners in their ____ ratio a) Capital b) New Profit Sharing c) Sacrificing d) Old Profit Sharing Samvit Academy Tip: Goodwill brought in by a new partner will be shared between the sacrificing partners in their sacrificing ratio. 40) Jain and Deepak are partners in a firm with no partnership agreement. The profit for the year was Rs. 14,200. Deepak claimed interest @ 12% p.a. on the loan of Rs. 70,000 given to the firm. Calculate the share of Jain and Deepak in the profit of the firm. a) Rs. 5000 & Rs. 9,200 b) Rs. 7,100 & Rs. 7,100 c) Rs. 2,100 & Rs. 12,100 d) None Samvit Academy Tip: Interest to be given to Deepak = 6%*70,000 = Rs 4,200 Balance Profits = Rs 10,000 to be shared equally Hence, Jain will get Rs 5,000 Deepak will get Rs 5,000 + 4,200 = Rs 9,200 41) The part of share capital which can be called up only on the liquidation of a company is called a) Authorized capital b) Called up capital c) Capital reserve d) Reserve capital



Samvit Academy Tip: Answer is Reserve Capital 42) On admission of a partner unrecorded investments worth Rs. 5,000 and unrecorded liability towards suppliers for Rs. 1,500 will be recorded in a) Revaluation A/c b) Capital A/c c) Realisation A/c d) None of the three Samvit Academy Tip: Any unrecorded assets or liabilities will be recorded through the Revaluation A/c during admission. 43) A company issued 30,000 shares of Rs. 10 each, payable as Rs. 3 on application, Rs. 3 on allotment and Rs. 4 on call. Applications were received for 50,000 shares. Allotment was made on pro-rata basis. Excess application money was refunded. Mr. X, a holder of 100 shares failed to pay the call money. His shares were forfeited. The above transactions are related to a) Over subscription b) Pro-rata allotment c) Forfeiture d) All of the above Samvit Academy Tip: All of the above 44) Bajaj Ltd. Issued 4,000 shares of Rs. 10 each at a premium of 20%, payable as Rs. 5 on application (including premium,) Rs. 3 on allotment and Rs. 4 on call. Mr. Q a holder of 100 shares failed to pay the allotment and call money. His shares were forfeited. The amount to be credited to Forfeited Shares A/c will be _____ a) Rs. 500 b) Rs. 400 c) Rs. 1,000 d) Rs. 300 Samvit Academy Tip: Mr Q would have paid 100*3 = Rs 300 towards application without considering Securities Premium. Hence, the same would be credited to Forfeited Shares A/c 45) A company issued 15,000 shares of Rs. 10 each. Called up value per share is Rs. 8. A holder of 250 shares paid Rs. 2 per share only. On forfeiture of his shares, Share Capital A/c is debited by ___ a) Rs. 2,500 b) Rs. 2,000 c) Rs. 500 d) Rs. None Samvit Academy Tip: Share Capital is debited with the called up amount. Hence, the amount to be debited is Rs 2,000



46) A company forfeited 100 shares of Rs. 10 each, on which Rs. 5 per share was already paid up. Out of them 70 shares are reissued at Rs. 7 per share as fully paid up. The amount to be transferred to the Capital Reserve A/c will be ____ a) Rs. 350 b) Rs. 490 c) Rs. 140 d) Rs. 150 Samvit Academy Tip: Capital Reserve = 70 * (5-3) = Rs 140 47) Discount on issue of debentures is a ____ a) Revenue loss to be charged in the year of issue b) Capital loss to be written off from capital reserve c) Capital loss to be written off over the tenure of the debentures d) Capital loss to be shown as goodwill Samvit Academy Tip: Capital loss to be written off over the tenure of the debentures. 48) Preference shares amounting to Rs. 3,00,000 are redeemed at a premium of 5%, by issue of equity shares amounting to Rs. 2,00,000 at a premium of 3%. The amount to be transferred to Capital Redemption Reserve = ? a) Rs. 1,00,000 b) Rs. 1,20,000 c) Rs. 2,10,000 d) None Samvit Academy Tip: CRR to be created = Rs 3,00,000 - 2,00,000 49) LT Ltd. purchased land and building from AB Ltd. For a book value of Rs. 22,00,000. The consideration was paid by issue of 12% Debentures of Rs. 100 each at a premium of 10%. The Debentures A/C is credited by _____ a) Rs. 22,00,000 b) Rs. 20,00,000 c) Rs. 24,20,000 d) Rs. 25,20,000 Samvit Academy Tip: Number of debentures issued = 22,00,000/110 = 2,00,000 Hence, Debentures A/c will be credited by Rs 20,00,000 50) Which of the following statements is false ? a) Equity is owners’ stake and the debenture is a debt b) Rate of interest on debentures is fixed c) Debenture holders get preferential treatment over the equity holders as the time of liquidation d) Interest on debentures is an appropriation of profits.



Samvit Academy Tip: Answer is (d). Interest on debentures is a charge against profits. 51) Which of the following is not a fundamental accounting assumption ? a) Going concern b) Consistency c) Prudence d) Accrual Samvit Academy Tip: The Fundamental Accounting Assumptions are Accrual, Going Concern and Consistency. Hence Prudence is the odd one out. 52) A change in accounting policy is justified a) To comply with accounting standard. b) To ensure more appropriate presentation of the financial statements of the enterprise. c) To comply with law d) All of the above. Samvit Academy Tip: All of the above 53) Cost of inventory Rs. 1,00,000; Market Value Rs. 80,000. If the inventory is valued at Rs. 1,00,000, which of the following accounting concepts is violated ? a) Money measurement b) Cost c) Prudence d) Periodicity Samvit Academy Tip: Inventory has to be valued at lower of cost or Net realisable Value. In the given case it has to be valued at Rs 80,000 which is the market value (as it is lower than cost). Hence we can say that inventory has been overvalued and therefore it violates the Prudence concept. 54) Amount paid to a supplier is a) An Event b) A Transaction c) Both (a) & (b) d) Neither (a) nor (b) Samvit Academy Tip: Transaction 55) Economic life of an enterprise is split into some periodic intervals as per ____ concept. a) Money Measurement b) Matching c) Periodicity d) Accrual



Samvit Academy Tip: Periodicity 56) According to ____ concept the same method of accounting is to be followed year after year. a) Going Concern b) Entity c) Cost d) Consistency Samvit Academy Tip: Consistency 57) Benefits of Accounting Standards are a) To harmonise accounting policies. b) To eliminate the non-comparability of financial statements. c) To improve the reliability of financial statements. d) All of the above. Samvit Academy Tip: All of the above 58) Purposes of an accounting system include all the following except a) Interpret and record the effects of business transaction. b) Classify the effects of transactions to facilitate the preparation of reports. c) Summarize and communicate information to decision markers. d) Dictate the specific types of business enterprise transactions that the enterprises may engage in. Samvit Academy Tip: Answer is (d). Accounting does not dictate the types of business transactions you may enter into.



IPCC (NEW SCHEME) ORIENTATION

JAN 14TH, 2018

What you need to know ICAI has introduced a new scheme of training starting from July 1, 2017 After clearing CPT you will be into the new scheme for IPCC Some subjects have been removed, some subjects have been modified Why is Samvit Academy the best in Bangalore? Samvit Academy is the only academy to consistently have the highest pass % in Bangalore over the years Within 1 year, one of our students secured 176 in CPT, the highest in Bangalore in that attempt Within 2 years, we produced an All-India Rank in IPCC an attempt which saw a pass percentage of 4% when other academies were struggling to help students get even the passing marks Quality coaching supplemented with regular tests which ensure you are well prepared before the exam 100% track record of completing syllabus and more importantly completing it within time All-India Rank Holders are going to be teaching you. One of our faculty has secured All- India Ranks in ALL 3 LEVELS of CA and another faculty has secured an All-India Rank in CPT All our faculty have cleared CA in their first attempt making them the best in this field

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If you found this useful, let us know by sending a message to 9845861108 or an email to [email protected] If you are in Bangalore and would like to attend our classes for CPT or IPCC, let us know through phone or email (details above) and we will ensure that you get the best from our amazingly young and brilliant faculty. We wish you the best! Our next CPT Batch starts in July and IPCC Batch starts in August in Malleshwaram, Rajajinagar and Jayanagar.

Get to know our faculty CA. Gaurav Rajaram - All India Rank Holder in CPT. Cleared CA in his first attempt.

Teaches Accounting and Direct Taxes

CA. Chinmaya Hegde - All India Rank holder in ALL 3 levels of CA! Teaches Financial

Management and Accounting

CA. Punarvas Jayakumar - The best teacher for Law in Bangalore and probably even the South of India. Cleared CA in his first shot although he was from a science background CA. Kriti Goel - Amazing at Cost Accounting and Economics, she has been able to achieve tremendous results in her classes. She makes it fun and makes you love her subjects

Please read our disclaimer These questions have been compiled by Samvit Academy ('we') from Online Sources who have in turn compiled the same from students memory as well from our own discussions with students who have written the examination. We cannot give any assurance that the same/similar questions appeared in the examination as it is purely based on memory. Any conclusions that you draw from the above questions and solutions are solely at your risk and we are not responsible for the same.

AT SAMVIT, WE DON’T JUST HELP YOU CLEAR. … - CPT_December 2017... Malleshwaram | Rajajinagar | Jayanagar Call 9845861108 | 9535145650 | 9964204724 AT SAMVIT, WE DON’T JUST HELP

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