CUET Accountancy Sample Paper Set C

Question: Which of the following generally does not prepares accounts using accounting for NPOs?
A) Trade union
B) Mosques
C) Housing coop society
D) Organisation with public private partnership

Answer: d

Question: To whom are the financial statements of NPO submitted?
A) Registrar of Companies
B) Registrar of Societies
C) Ministry of Corporate Affairs
D) Ministry of Consumer Affairs

Answer: b

Question: Which of the following is a payment for NPO?
A) Grant-in-aid
B) Entrance Fees
C) Interest on fixed deposit
D) Upkeep of playground

Answer: d

Question: What is the donation called which received for creation of book bank?
A) General donation
B) Outstanding donation
C) Specific donation
D) Corporate Social Responsibility (CSR) donation

Answer: c

Question: ABC Club received Rs. 20,000 as subscriptions during the year 2016-17 of which Rs.3,000 relate to year 2015-16 and Rs.2,000 to 2017-18, and at the end of the year 2016-17 Rs.6,000 are still receivable. What will be recorded in the receipts and payments account for the year ended 2016-17?
A) 20000
B) 15000
C) 21000
D) 31000

Answer: a

Question: Which of the following is false about partnership agreement?
A) It is always written
B) It should be to carry on some business only
C) It should be based upon mutual agency
D) It should contain two or more persons as partners

Answer: a

Question: In which account partner’s salary and interest on capital of partners adjusted?
A) P&L account
B) Trading and P&L account
C) P&L adjustment account
D) P&L appropriation account

Answer: d

Question: A and B are partners in a firm with PSR 3:1. The capital balances of A and B are 100000 and 150000 respectively. The profit of the firm is 100000 for the year. Calculate the interest on capital when partnership deed provides interest on capital @10%?
A) Interest shall be paid @ 10%
B) Interest shall be paid according to capital ratio
C) Interest shall be paid according to PSR
D) No interest shall be paid

Answer: a

Question: In case of losses in a partnership firm, which of the following is allowed?
A) Interest on fixed capital
B) Interest on fluctuating capital
C) Interest on loan
D) Salaries/ remuneration to the partner

Answer: c

Question: X, Y and Z are partners in a firm XYZ & Co in ratio of 3:2:1. Z being a professional was given a guarantee by X for Rs. 25000 as profits. Who shall bear the guarantee in case the firm earns inadequate profits?
A) X and Y in their PSR
B) X and Y equally
C) X alone
D) he firm shall bear the guarantee

Answer: c

Question: How does the partner of the firm represent the firm generally?
A) As an employee because he gets remuneration
B) As the owner because he gets profits
C) As an agent
D) As legal representative

Answer: c

Question: When partnership deed is silent, the partners shall be eligible for?
A) Interest on capital
B) Interest on debt
C) Salary
D) Profits are to be shared in capital contribution ratio

Answer: b

Question: ABC and Co. charges interest on drawings from its partners. Where will such interest be recorded in the books of accounts?
A) Credit side of P&L appropriation account
B) Credit side of P&L adjustment account
C) Credit side of respective partner’s capital account
D) Credit side of respective partner’s current account

Answer: a

Question: Ramesh, Mahesh and Sohesh are partners. Profits before interest on capital was Rs. 6000. Ramesh being working partner wanted Rs. 5000 as he is putting 100% efforts but there is no agreement signed. How will be the profits distributed?
A) Rs. 5000 to Ramesh, Rs. 500 to Mahesh and Sohesh
B) Rs. 1000 to be distributed equally
C) Rs. 5000 to Ramesh, and remaining to be distributed amongst partners equally
D) Rs. 6000 equally

Answer: d

Question: How can be a new partner admitted in the partnership?
A) Through 50% consent of existing partners
B) When special resolution is passed in general meeting
C) When new partner brings in cash to run business
D) With unanimous consent of all the partners

Answer: d

Question: A and B are partners in a firm in ratio 4:1. They admitted C for 25% share in profits and losses which he gets 100% from A being his son. What shall be the new PSR?
A) 4:1:1
B) 8:7:7
C) 13:4:6
D) 11:4:5

Answer: d

Question: What shall be 3 years purchase goodwill based upon the following profits of 3 years?
 Year               Profits
  1                   15000
  2                   20000
  3                   25000
A) 20000
B) 45000
C) 60000
D) 75000

Answer: c

Question: ABC Ltd. Has average profits of Rs. 20000 with normal rate of return at 10%. What is the value of goodwill if the net assets are Rs. 500000?
A) 300000
B) 200000
C) 48000
D) No or negative goodwill

Answer: d

Question: The goodwill already existing in business is adjusted amongst partners in which ratio?
A) New profit sharing ratio
B) Old profit sharing ratio
C) Gaining ratio
D) Sacrificing ratio

Answer: b

Question: Which balance indicates net gain in the revaluation account?
A) Opening debit balance
B) Opening credit balance
C) Closing debit balance
D) Closing credit balance

Answer: c

Question: What is generated when firm earns more profit than normal rate of return on capital?
A) Goodwill
B) Revaluation reserve
C) Super normal profits
D) Partner’s capital accounts increase by multiple times

Answer: c

Question: Ram and Mohun are partners with PSR 3:1 and capitals contributed at Rs. 900000 and Rs. 300000. The new ratio is 5:3 from the next year. The goodwill is valued at Rs. 800000. What is the amount payable?
A) Ram will pay Mohun Rs 100000
B) Mohun will pay Ram Rs 100000
C) Ram will pay Mohun Rs 800000
D) Mohun will pay Ram Rs 800000

Answer: b

Question: Geeta and Babita are partners with PSR 5:3. They admitted Seeta for 30% share. What is new PSR?
A) 42:38:35
B) 35:21:24
C) 35:17:20
D) 42:30:35

Answer: b

Question: Chetan was admitted with equal share in profits contributing 25000 as capital and 10000 as goodwill and Abhay and Beena’s old profit sharing profits in 3:2. New PSR shall be 1:1:1. Chetan has brought in his capital only. How will this be treated in the books of accounts?
A) Abhay and Beena will share goodwill brought in
B) Goodwill not bought to be adjusted with Chetan’s current account
C) Both a and b
D) The firm shall forego goodwill amount

Answer: b

Question: Mohun and Sohun shares profit and losses equally. They admitted Ramesh as an equal partner. The goodwill is valued at Rs. 30000 (book value 0) and it will not remain in the books. Ramesh brings in capital as Rs. 20000 and necessary share of goodwill. What shall be the treatment of goodwill?
A) 20000; 20000; 20000
B) 13500; 13500; 20000
C) 28000; 28000; 20000
D) 31500; 31500; 20000

Answer: d

Question: Which of the following deductions is not made to the retiring partner?
A) His drawings
B) His share of goodwill written off
C) His share of loss
D) His bonus due

Answer: d

Question: Which of the following adjustments is not made at the time of retirement?
A) Ascertaining new profit sharing ratio
B) Revaluation of assets and liabilities
C) Calculation of sacrificing ratio
D) Settlement of accounts

Answer: c

Question: The ratio in which the continuing partners have acquired the share from the retiring/ deceased partner is called?
A) Sacrificing ratio
B) Gaining ratio
C) New profit sharing ratio
D) Ratio for adjustment of goodwill

Answer: b

Question: A, B and C are partners with PSR 5:3:2. B retires and A and C decides the new PSR to be 3:2. What is the gaining ratio?
A) 1:1
B) 5:2
C) 1:2
D) 3:2

Answer: c

Question: Gagan is retiring as partner from ABC Technologies. He is liable for?
A) Firm’s future liabilities
B) Liabilities incurred before retirement
C) Liabilities incurred after retirement
D) Not liable for any liabilities

Answer: b

Question: The outgoing partner is compensated for future profits of the firm in favour of remaining partners. In what ratio do the remaining partners compensate the outgoing partner?
a) Gaining ratio
b) Sacrificing ratio
c) Old PSR
d) As mutually decided

Answer: a

Question: How is claim of the retiring person paid?
a) Through cash
b) Through transfer of any cash
c) Through loan with interest as applicable
d) Any of these

Answer: d

Question: Shradha, Srishti and Saher are sharing profits in ratio of 2:2:1. Srishti retires and value of goodwill is 30000. What is the amount payable to Srishti?
a) Rs. 30000
b) Rs. 5000
c) Rs. 12000
d) Rs. 10000

Answer: c

Question: Shradha, Srishti and Saher are sharing profits in ratio of 2:3:2. Shradha retires and value of goodwill is 140000 and the remaining partners shall share profits equally and no goodwill account is to be raised. How is this transaction recorded?
a) Credit partner’s capital account in gaining ratio for Rs. 140000
b) Credit partner’s capital account in gaining ratio for Rs. 40000
c) Credit partner’s capital account in old ratio for Rs. 140000
d) Credit partner’s capital account in old ratio for Rs. 40000

Answer: b

Question: A, B and C are partners in a firm with ratio 5:4:1. B retires on 30 June 2021 when profit for year ended 31 March 2021 was Rs. 100000. What is his share of profit?
a) No share as the accounts are not audited yet
b) Rs. 100000
c) Rs. 40000
d) Rs. 10000

Answer: d

Question: A, B and C are partners in a firm with ratio 5:3:1. B retires on 30 July 2021 when profit for year ended 31 March 2021 was Rs. 100000, 31 March 2020 Rs. 90000 and 31 March 2019 Rs. 80000. What is his share of profit based on average profits of 3 year?
a) 90000
b) 30000
c) 10000
d) 7500

Answer: c

Question: A, B and C are partners sharing profit in ratio 3:4:1. A retires and surrenders 2/3rd of his share in favour of B and remaining in favour of C. What is gaining ratio?
a) 2:1
b) 3:1
c) 4:5
d) 5:4

Answer: a

Question: Shivam, Shubham, Sohan and Sonu are partners with PSR 3:2:1:4. Shivam retires and his share is taken up by Shubham and Sohan in ratio 3:2. What is gaining ratio?
a) 3:2:1
b) 3:2:0
c) 5:4:3
d) 5:4:2

Answer: b

Question: How is goodwill valued at the time of retirement of partner?
a) As valued by statutory auditors of the company
b) As valued by the retiring partner
c) As per agreement between the partners
d) As valued by Income Tax Department

Answer: c

Question: Rishabh, Rahul and Rohan are partners in ratio 4:3:2. Rahul retires and value of goodwill exists at Rs. 72000. The remaining partners decided to share profits in ratio 5:3. How much is the goodwill amount payable to Rahul?
a) Rs. 4000
b) Rs. 8000
c) Rs. 16000
d) Rs. 24000

Answer: d

Question: Mr Al , Ms An and Mr Jo are in partnership sharing profits and losses in the ratio of 2:2:1. Mr Al died on 15th April, 2021. The firm closes books of account on 31st December every year. So the executor of Mr Al is entitled to 3 and 1/2 months profit. Ms An and Mr Jo decided to pay the profit immediately to the executor of Mr Alex. The profit of the previous accounting period was 1,20,000. The above calculation shall be journalised as?
a) Mr. Al a/c dr. To
                P/L suspense a/c
b) Mr. Al a/c dr.
               To Ms. An a/c
               To Mr. Jo a/c
c) P/L a/c dr.
              To Mr. Al a/c
d) P/L suspense a/c Dr.
              To Mr. Al a/c

Answer: d

Question: Which journal entry is passed to record decrease in value of computer?
a) Revaluation a/c – dr
              To Liability
b) Liability a/c – dr
              To revaluation
c) Asset a/c – dr
              To revaluation
d) Revaluation a/c – dr
             To Asset a/c

Answer: d

Question: Which journal entry is passed to record decrease in value of tax payable?
a) Revaluation a/c – dr
                To Liability
b) Liability a/c – dr
                To revaluation
c) Asset a/c – dr
                To revaluation
d) Revaluation a/c – dr
               To Asset a/c

Answer: b

Question: A, B and C are partners in a firm in ratio 3:2:1. A decides to retires. The firm has to distribute the revaluation profit of Rs. 6000. The new PSR is 1:1. How is revaluation account is settled?
a) By crediting the partner’s capital accounts in old ratio
b) By crediting the partner’s capital accounts in gaining ratio
c) By debiting the partner’s capital accounts in old ratio
d) By debiting the partner’s capital accounts in gaining ratio

Answer: a

Question: How is balance of P&L suspense account is adjusted at the close of year in which any partner of the business retires?
a) By debiting retiring partner’s capital account
b) By debiting gaining partner’s capital account
c) By debiting P&L account
d) Either b or c

Answer: d

Question: Suresh, Mahesh and Naresh are partners in a firm with PSR 3:2:1. Mahesh retires and after settling the accounts of Mahesh, the balances of Suresh and Naresh’s capital accounts are Rs. 160000 and Rs. 80000 respectively. How much amount should be brought in/ withdrawn by Suresh and Naresh if they wish to maintain their capital as per new profit sharing ratio?
a) Rs. 40000 to be brought in by Suresh and Rs. 40000 to be withdrawn by Naresh
b) Rs. 40000 to be brought in by Naresh and Rs. 40000 to be withdrawn by Suresh
c) Rs. 20000 to be brought in by Suresh and Rs. 20000 to be withdrawn by Naresh
d) Rs. 20000 to be brought in by Naresh and Rs. 20000 to be withdrawn by Suresh

Answer: c

Question: The sales of Divgun Enterprises were Rs. 800000 for the previous year and the corresponding profit was Rs. 100000. One of the partner of the firm, having 40% share in profits dies on 30th April 2021. What shall be his share of profit in case the sales for the current period accounts Rs. 150000?
a) 10000
b) 15000
c) 12000
d) 7500

Answer: d

Question: When is revaluation account prepared?
a) At the time of admission of the partner
b) At the time of death of the partner
c) At the time of retirement of the partner
d) Any of the event

Answer: d

Question: Calculate the interest payable if any to the executors of Mr. A, the deceased partner who died on 30th June 2021 and is final sum of Rs. 100000 is paid on 31st December 2022?
a) 6000
b) 3000
c) 9000
d) No interest is payable

Answer: c

Question: How much amount is paid as goodwill to executors of Mr. Rahul (50%) who was sharing profits with Rishabh (30%) and Rijul (20%) if goodwill is based on 2 years purchase of last 3 years average profits of Rs. 329000, 346000 and 405000?
a) Rishabh 180000 and Rijul 180000
b) Rishabh 216000 and Rijul 144000
c) Rishabh 360000 and Rijul 250000
d) Rishabh 432000 and Rijul 288000

Answer: b