1) The apex institution which handles refinance for agriculture and rural development is

called:
a) RBI
b) SIDBI
c) !B!RD
d) S"BI
!ns:# $c)
%) &ong 'orm !udit Report $&'!R) is prepared and submitted b(
a) RBI inspectors
b) Internal inspectors
c) Statutor( auditors
d) )oncurrent auditors
!ns:# $c)
*) !s per 'I++D!,s guidelines- the +id#.ffice is responsible for:
a) Dealing activities
b) Ris/ +anagement
c) Reconciliation
d) )onfirmation of deals
!ns:# $b)
0) Interest is calculated on actual1*23 da(s basis in respect of the following products-
except one :
a) )all +one(
b) otice +one(
c) Term +one(
d) 4.I dated securities
!ns:# $d)
3) 5hich was the first +utual 'und started in India:
a) SBI +utual 'und
b) 6ota/ 7ioneer +utual 'und
c) Indian Ban/ +utual 'und
d) one of the above
!ns:# $d)
2) The regulator for +utual 'unds in India is:
a) 'I++D!
b) !+'I
c) RBI
d) S"BI
!ns:# $d)
8) 'I++D!,s general principles and procedures are applicable to:
a) 'ixed Income +ar/ets
b) +one( +ar/ets
c) Derivatives +ar/ets
d) !ll of the above
!ns:# $d)
9) :our ban/,s customer ;:< &td- en=o(s a )) limit of Rs>1-??-???>??
The )) account shows a credit balance of Rs-1?-%?3>??>
The relationship between (our ban/ and ;:< &td is:
a) Debtor1)reditor
b) )reditor1Debtor
c) Bailor1Bailee
d) Bailee1Bailor
!ns:# $a)
@) The right of set#off is:
a) )ustomer,s Right
b) )ustomer,s .bligation
c) Ban/er,s Right
d) Ban/er,s Discretion
!ns:# $d)
1?) 5hich of the following forms of business are permissible under BR !ct:
a) Borrowing
b) Issuance of &etters of )redit
c) Bu(ing and selling of bullion
d) !ll of the above
!ns:# $d)
11) Reserve Ban/ of India,s functions are classified into:
a) Supervisor( A Regulator(
b) 7romotional A Developmental
c) Refinance !ctivities
d) !ll of the above
!ns:# $d)
1%) +inimum Ban/ Rate is:
a) *B
b) 0B
c) 3B
d) one
!ns:# $d)
1*) Sec #### of RBI !ct-1@*0 gives sole power to RBI to issue currenc( notes
a) 1?
b) 19
c) %%
d) %2
!ns:# $c)
10) 6:) means
a) 6now :our )ustomer ver( well
b) 6now :our existing )ustomer ver( well
c) 6now :our prospective )ustomer ver( well
d) Satisf( (ourselves about the customer,s identit( and activities>
!ns:# $d)
13) In a 4arnishee .rder- the ban/er on whom garnishee order served is:
a) Cudgement Debtor,s )reditor
b) Cudgement )reditor,s )reditor
c) Cudgement )reditor,s Debtor
d) Cudgement Debtor,s Debtor
!ns:# $d)
1> )hoose the wrong pair from the following> The information given in the pair is pertaining
to ban/ing companies
$a) Demand Deposits # )ompulsor( deposits under excise rules
$b) rebate on bills discounted # unexpired discount
$c) .perating "xpenses Schedule 10
$d) .ther Income # 7rofit on sale of investments less loss on sale of investments
%> The name of the accounts with the coverage of various items in building that account is
given below> .ne of the items covered in on of the accounts is wrong> Select this account
$a) )losing balance of provisions held towards 7! # .pening Balance plus provisions made
during the (ear less write off of bad debts1write bac/ of excess provisions
$b) Interest "arned # interest on advances plus income on investments plus interest on
deposit with RBI plus income earned b( wa( of dividends from subsidiaries plus discount on
bills less unexpired discount
$c) Reserves A surplus # .pening balance plus additions during the (ear less deductions
during the (ear
$d) Term deposits # from ban/s and from .thers
*> Identif( a pair which is mismatch from the following pairs in respect of )ompan(
!ccounts
$a) +iscellaneous "xpenditure D 7reliminar( "xpenses
$b) )ontingent &iabilities D footnote to balance sheet
$c) Debentures D Ensecured &oans
$d) .utstanding "xpenses D )urrent &iabilities
0> Identif( a pair which is mismatch from the following pairs in respect of )ompan(
!ccounts
$a) Discount on issue of shares D 7rofit and &oss !ccount
$b) Bill discounted D contingent liabilities
$c) Interest accrued and due on debentures D Secured &oans
$d) +ortgage &oan D Secured &oans
3> )ompanies are reFuired to transfer certain percentage of their profit after tax to reserves-
to declare dividend> The various rates of transfer based on the rates of dividend are given
below in pair> Select the wrong pair>
$a) Rate of dividend exceeds 1?B but not 1%>3?# Transfer to reserve G ilB
$b) Rate of dividend exceeds 1%>3?B but not 13B# Transfer to reserve G 3B
$c) Rate of dividend exceeds 13B but not %?B# Transfer to reserve G 8>3?B
$d) Rate of dividend exceeds %?B # Transfer to reserve G 1?B
2> 5hile preparing the final accounts of the compan(- the ad=ustments H$i) to $iv)I are to be
made b( passing necessar( entries> .ne of the entries passed is wrong entr(> Select the
wrong entr(>$i) Depreciate plant -5DJ of which is Rs>*-*?-??? at 13B $ii) 5rite off
Rs>3-??? from 7reliminar( "xpenses $iii) Kalf (ears debenture interest due $1%B debentures
of Rs> *-??-???) $iv) a claim of Rs> %3-??? for wor/men,s compensation is disputed b( the
compan(>
$a) Debit Depreciation on plant b( Rs>0@-3?? credit plant b( 0@-3?? !D Debit 7rofit A &oss
!ccount b( 0@-3?? and )redit Depreciation on plant b( 0@-3??
$b) Debit 7rofit and &oss !ccount b( Rs>3-??? and )redit 7reliminar( "xpenses
$c) Debit Debenture Interest b( Rs>19-??? A .utstanding &iabilit( for Deb> Interest b(
19-??? !D Debit 7rofit and &oss !ccount b( Rs>19-??? and )redit Debenture Interest b(
Rs>19???
$d) Debit 5ages b( Rs>%3-??? A )redit .utstanding &iabilit( for 5or/ers compensation !D
Debit 7rofit and &oss !ccount b( Rs>%3-??? and )redit 5ages b( Rs>%3-???
8> 5hile preparing the final accounts of the compan(- the ad=ustments H$i) to $iv)I are to be
made b( passing necessar( entries> .ne of the entries passed is wrong entr(> Select the
wrong entr(>$i) 7rovide dividend 3B of paid up share capital $Share capital of Rs> 3-??-???
consisting of shares of Rs> 1? each full( paid) $ii) Insurance for unexpired period is Rs>%???
$iii) ! provision of Rs> %3-??? is to be made for income tax $iv) a provision of Rs> 3??? is to
be made for doubtful debts
$a) Debit Dividend b( Rs>%3??? A )redit Ban/ b( Rs>%3???
$b) 7repaid Insurance b( Rs>%??? A Insurance b( Rs>%???
$c) Debit 7rofit A &oss !ccount b( Rs>%3-??? A )redit 7rovision for Tax b( Rs>%3-???
$d) Debit 7rofit A &oss b( Rs>3-??? A )redit 7rovision for doubtful debts b( Rs>3-???
9> In respect of asset side of the balance sheet one of the items is presented in a proper
order- rests are disorderl(> Select the orderl( presented item from the following>
$a) Investments- 'ixed !ssets- )urrent !ssets A &oan !dvances- 7rofit A &oss !ccount$Dr>
balance)- +iscellaneous "xpenditure
$b) 'ixed !ssets- Investments- )urrent !ssets A &oan !dvances- 7rofit A &oss !ccount$Dr>
balance) - +iscellaneous "xpenditure
$c) 'ixed !ssets- Investments- )urrent !ssets A &oan !dvances- +iscellaneous "xpenditure-
7rofit A &oss !ccount$Dr> balance)
$d) 'ixed !ssets- )urrent !ssets A &oan !dvances- 7rofit A &oss !ccount$Dr> balance)-
+iscellaneous "xpenditure
@> .ne of the statements in respect of 7rofit A &oss !d=ustment account is incorrect- rest are
correct> +ar/ the incorrect sentence>
$a) The account is credited with closing balance of profit and loss account of last (ear
$b) The account is credited with current (ear,s net profit
$c) The account is debited with provision for taxes
$d) The account is debited with provision for dividend
1?> The two portion of each pair relating to partnership accounts has got some relationship>
Kowever one of the pairs is a mismatch and has no relationship> Select this pair from the
following
$a) +anagement of business # business ma( be run b( one or some or all partner
$b) Treatment of losses # insolvenc( of a partner
$c) &oan from partners # o interest as partners are owners
$d) 4oodwill # super profit method
11> The two portion of each pair relating to admission of a partner has got some
relationship> Kowever one of the pairs is mismatch and has no relationship> Select this pair
from the following
$a) !dmission of a partner # gain ratio
$b) Reserves A surplus # .ld partners
$c) 4oodwill # new partner
$d) Revaluation of assets A liabilities # 7rofit A &oss ad=ustment account
1%> The two portion of each pair relating to retirement of a partner has got some
relationship> Kowever one of the pair is mismatch and has no relationship> Select this pair
from the following
$a) Retirement # voluntar( action
$b) 4ain # retiring partner
$c) Share of goodwill # borne b( continuing partners
$d) Reserve A surplus # belong to all partners
1*> If the partners capital accounts are fixed- where will (ou record $either debit side or
credit side of which account ) the following transactions $i) Salar( pa(able to partner $ii)
'resh capital introduced b( a partner $iii) Drawing made b( a partner $iv) Share of profit
earned b( a partner> The effect to one of the =ournal entries is wrongl( given> Identif( that
account from the following>
$a) Debit side of partner,s current account
$b) )redit side of partner,s capital account
$c) Debit side of partner,s current account
$d) )redit side of partner,s current account
10> &-6 and 7 are partners> The following differences as listed at $i) to $iv) have arisen due
to misunderstanding> The answer to each point is given at $a) to $d)> .ne of the solutions is
incorrect> Identif( the wrong solution> $i) & used Rs>%3-??? belonging to the firm and made
a profit of Rs>0-???> 6 wants the amount to be given to the firm $ii) 7 used Rs>1?-???
belonging to the firm and suffered a loss of Rs> *???> Ke wants the firm to bear the loss $iii)
& A 6 wishes to appoint S as new partner> 7 does not agree $iv) & has given loan of Rs>
3?-??? to the firm- he wants interest at 2B $ there is no partnership deed)
$a) 6 is right >& must pa( Rs>%@-??? to the firm
$b) 7 is right > 'irm should bear profit as well as losses>
$c) 7 is right> o new partner can be admitted without the consent of all>
$d) & is right> Ke is entitled for interest at 2B in the absence of partnership agreement>
13> Below are some statements about partnership> .ne of them is correct- identif( that
statement>
$a) 7artnership arises from reputation
$b) ! partnership is formed onl( for a legal business
$c) The liabilit( of partners is limited
$d) The business of the firm is conducted b( two partners
12> . and 7 are two partners sharing profits in the ratio of 8:*> The( admit L into
partnership as a partner from 1st !pril %??2 on *18th share in the profit> 5hat is the new
profit sharing ratio
$a) 10: 2 : 13
$b) 8: *: *
$c) %: %: *
$d) one of the above
18> ! firm earns Rs>1?-??? as its normal profits> The rate of normal return being 1?B> The
assets of the firm amount to Rs>8%-??? and liabilities to Rs>%0-???> 'ind out the value of
goodwill>
$a) Rs>3%-???
$b) Rs>1-??-???
$c) Rs>%9-???
$d) il
19> 5hen a new partner gives cash for goodwill- the amount is credited to#####
$a) 4oodwill account
$b) )apital account of new partner
$c) )ash account
$d) one of the above
1@> If the goodwill account is raised for Rs>3?-???- the amount is debited to#####
$a) The capital accounts of partners
$b) 4oodwill account
$c) )ash account
$d) one of the above
%?> ! and B sharing profits and losses in the ratio of %:1> ) is admitted as partner giving
him M share> The new profit sharing ratio will be#####
$a) %:1:1
$b) 0: 0:*
$c) *: *: %
$d) one of the above
%1> If the ad=ustment in the values of assets at the time of the admission of a partner shows
a profit- it should be credited to the capital accounts of#####
$a) The old partners in their new profit#sharing ratio
$b) !ll partners in their new profit sharing ratio
$c) The old partners in their old profit sharing ratio
$d) one of the above
%%> !- B and ) are three partner sharing profits in the ratio of *:1:1> ) retires and his share
is purchased b( B> the new profit sharing ratio shall be#####
$a) *:1
$b) 8:*
$c) *:%
$d) one of the above
%*> .n the retirement of the partner- the profits on revaluation of assets should be credited
to the accounts of#####
$a) !ll the partners in their profit sharing ratio
$b) The remaining partners in their new profit sharing ratio
$c) The remaining partners in their old profit sharing ratio
$d) one of the above
%0> !- B and ) share profits as *:%:1> ) retires> )alculate the gain ratio of ! and B
$a) *:%
$b) 1:1
$c) %:1
$d) one of the above
%3> )hoose the incorrect statement in case of dissolution of partnership from the following
statements
$a) .n the dissolution of the firm - first creditors li/e wages outstanding etc> will have to be
paid
$b) 4oodwill will be raised in the boo/s when a firm is dissolved
$c) The loan from the spouse of a partner is treated =ust li/e a loan from outside parties
$d) !fter the boo/s are closed- no account will show an( balance>
%2> )hoose the incorrect statement from the following statement which are pertaining to
compan( accounts
$a) The compan( is an artificial person
$b) ! member of a compan( ma( bind the compan( b( its actions>
$c) The shareholders are not liable for the acts of the compan(
$d) The premium received on shares ma( be distributed among shareholders>
%8> ! new compan( cannot issue shares#####
$a) at par
$b) at discount
$c) at premium
$d) none of the above
%9> ! compan( wishes to pa( dividend on shares> State which of the following ma( be used
for the purpose>
$a) 7remium of shares
$b) 7rofit on re#issue of forfeited shares
$c) 4eneral Reserve
$d) one of the above
%@> If Rs>1? share has been issued at a premium of Rs>3- on which entire amount has been
called up- has been forfeited for non pa(ment of Rs> 0- the NShare )apital !ccount, will be
debited b(#####
$a) Rs>13
$b) Rs>1?
$c) Rs>0
$d) Rs>2
*?> +one( received in advance from shareholder before it is actuall( called up b( the
compan( is #####
$a) Debited to )alls in arrears !ccount
$b) Debited to )alls in !dvance !ccount
$c) )redited to )alls in !dvance !ccount
$d) )redited to Share )apital !ccount
*1> If a share of Rs>1? issued at a premium of Rs>1 on which Rs>@ $ including premium)
have been called and Rs>8$ including premium) paid is forfeited- the capital account should
be debited b(#####
$a) Rs>9
$b) Rs>1?
$c) Rs>@
$d) Rs>8
*%> Dividend are usuall( paid on
$a) )alled up capital
$b) 7aid up capital
$c) !uthorised capital
$d) one of the above
**> 7reliminar( "xpenses is#####
$a) 'ictitious !sset
$b) )urrent liabilit(
$c) )urrent asset
$d) one of the above
*0> ! and B are partners sharing profits in the ratio of *:%> ) is admitted as a partner> The
new profit sharing ratio among !- B and ) is 0:*:%> 'ind out the sacrificing ratio
$a) 8:*
$b) 0:*
$c) 1:1
$d) one of the above