Abstract: Any agency chosen to perform the task of selecting candidates for admission to any professional education has to administer a common entrance examination, evaluate the responses and allot seat according to the merit of the examinees. This task has three parts viz, conduct of examination, evaluation and allotment of seat for admission. In this study a soft real time on line examination system has been designed and software developed for implementation. To set questions of the same standard varying degrees such as toughness, easiness and mediocre factors have been introduced in each question in the question bank. An algorithm has been developed to set question papers of more or less the same standard to be dispensed and examinations conducted at different points of time. All the physical and application of mind activities of the examinees are monitored through software agents and communicated to a central location.