The Institute of Chartered Financial Analysts of India University 2011 C.A Chartered Accountant Chartered Accountancy -Pcc - Mock Test Series 1 - Question Paper

supply the goods as the price of Cotton shirts in the meantime has gone upto
Rs. 350 per shirt. Examine the rights of the Retail Garments Show Room in
this regard.
4. A stands surety for B for any amount which C may lend to B from time to
time during the next 3 months subject to a maximum of Rs. 50,000. One
month later A revokes the guarantee, when C had lent to B Rs. 5,000. Referring
to the provisions of the Indian Contract Act, 1872 decide whether A is
discharged from all the liabilities to C for any following loan. What would be
your ans in case B makes a default in paying back to C the money already
borrowed i.e. Rs. 5,000?
5. An unpaid seller parted the possession of goods to a transporter for delivering
goods to the buyer. In meanwhile, buyer becomes insolvent. State whether an
unpaid seller is having right of stoppage of goods?
6. Mr. J sells and consigns certain goods to Mr. S for cash and sends the Railway
Receipt to him. Mr. S becomes insolvent and while the goods are in transit, he
assigns the Railway Receipt to Mr. N who does not know that Mr. S is insolvent.
Mr. J being an unpaid seller wants to exercise his rights. Advise:
(a) whether Mr. J can exercise the right of stoppage of goods in transit ?
(b) would your ans be various if Mr. N was aware of Mr. Js insolvency
before the assignment of the Railway Receipt in favour of Mr. N ?
7. M draws a bill on N payable 3 months after sight. It passes through several
hands before T becomes its holder. On presentation by T, N refuses to accept.
explain the duties and rights of T on the bill.
8. A promoter who has borrowed a loan on behalf of company, who is neither a
director nor a person-in-charge, sent a cheque from the companies account to
discharge its legal liability. Subsequently the cheque was dishonoured and the
compliant was lodged against him. Does he liable for an offence under part
138?
9. On first January, 2007, Aryan Textiles Ltd. agreed with the employees for payment
of an annual bonus linked with production or productivity instead of bonus based
on profits subject to the limit of 30% of their salary wages during the relevant
accounting year. It was also agreed by the employees that they will not claim
minimum bonus said under part 10 of the Payment of Bonus Act, 1965. As
per the agreement the employees of Aryan Textiles Ltd claimed annual bonus
linked with production or productivity in the relevant accounting year. On

Earning:   Approval pending.