Mr.

Mr. Hopeful, an aspiring student of ICAI, approached Mr. Witty, a practicing Chartered
Accountant, for the purpose of article ship. Mr. Witty, the principal, offered him stipend at the
rate of ` 2,000 per month to be paid every sixth month along with interest at the rate of 10%per
annum compounded monthly to compensate such late payment on plea that cycle of professional
receipts from clients is six months. Mr. Hopeful agreed for such late payment in the hope of
getting extra stipend in the form of interest. Mr. Witty, however, used to disburse salary to all of
his employees on time. As per Chartered Accountants Act, 1949, under which clause Mr. Witty is
liable for misconduct.
a) Clause (1) of Part II of the Second Schedule to the Chartered Accountants Act, 1949
B) Clause (4) of Part I of the Second Schedule to the Chartered Accountants Act, 1949

C) Mr. Witty is paying interest thus he is not liable for misconduct.

D)Clause (10) of Part I of the Second Schedule to the Chartered Accountants Act, 1949