CUET Accountancy 2025 27 May Shift 2 PYQs

Which of the following statements are correct in respect of goodwill?(A) The present value of a firm's anticipated excess earnings.(B) The capitalised value attached to the differential profit capacity of a business.(C) Goodwill exists only when the firm earns super profits.(D) Any firm that earns normal profits or is incurring losses also has goodwill.Choose the correct answer from the options given below:

K, N and P are partners sharing profits and losses in the ratio of $4:3:2$. N retires and the goodwill is valued at Rs. $72,000$. K and P decided to share future profits and losses in the ratio of $5:3$. Identify the correct journal entry in this scenario.

Identify the true statement in respect of the Fixed Capital Method for a Partnership Firm:

When a company issues shares at a premium, the company can collect Securities Premium along with the:

Match List-I with List-IIList-I (Events)List-II (Result)(A) Termination of business(I) Not possible in the dissolution of partnership(B) Continuation of business(II) Not possible in the dissolution of a firm(C) Intervention of court(III) Dissolution of firm(D) Continuation of books of accounts(IV) Dissolution of partnershipChoose the correct answer from the options given below:

Which of the following is NOT a method of valuation of goodwill?

A company purchases its own shares of Rs. $5,00,000$ from the market. What is this process called?

Under the fixed capital method, the capital of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement between the partners.Which among the following is NOT a feature of the fixed capital method?

The profit for the five years of a firm are as follows:YearProfit (Rs.)20134,00,00020143,98,00020154,50,00020164,45,00020175,00,000Calculate the goodwill of the firm on the basis of 4 years purchase of 5 years average profits.

In case a deceased partner's share of profit is calculated during the intervening period, the following Journal Entry will be passed:

When a new partner is admitted, the undistributed profits that appear in the balance sheet of the old firm are transferred to the capital account of:

J and K are partners sharing profits and losses in the ratio of $3:1$. Their capitals at the end of the financial year 2024-2025 were Rs. $1,50,000$ and Rs. $75,000$ respectively. During the year 2024-2025, J’s drawings were Rs. $20,000$ and the drawings of K were Rs. $5,000$, which had been duly debited to partner’s capital accounts. Profit before charging interest on capital for the year was Rs. $16,000$. The same had also been credited in their profit sharing ratio. K had brought additional capital of Rs. $16,000$ on October 1, 2024. Calculate interest on capital @ $12\%$ p.a. for the year 2024-2025 for J.

Identify the steps involved in calculating goodwill under the capitalized value of average profits method:(A) Capitalize the average profits on the basis of the normal rate of return to ascertain the capitalized value of average profits(B) Ascertain the average profits based on the past few years' performance(C) Compute the value of goodwill by deducting net assets from the capitalized value of average profits(D) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets)Choose the correct answer from the options given below:

On the basis of the number of members, companies can be divided into:(A) Unlimited Company(B) Public Company(C) Private Company(D) One Person Company (OPC)Choose the correct answer from the options given below:

Under which method is the goodwill valued at an agreed number of years' purchase of the average profits of the past few years?

Arrange the following events (in relation to the issue of shares) in a logical order.(A) Transfer to capital reserve.(B) Forfeiture of share.(C) Calls in arrears.(D) Re-issue of share.Choose the correct answer from the options given below:

At the time of admission of a new partner, for getting a right to share the assets of the partnership firm, the new partner at least will bring:

Which of the following statements are correct in relation to the issue of share capital for public subscription?(A) The application money should be at least 5% of the face value of the share.(B) Calls are to be made as per the provisions of the articles of association.(C) Where there is no articles of association of its own, the provisions of Table F (or Table A of earlier acts) will apply.(D) Calls need not be made on a uniform basis on all shares within the same class.Choose the correct answer from the options given below:

In the Journal Entry of forfeiture of shares issued at a premium, the Share Capital Account is:

A, B and C are partners in a firm. If C retires/dies, his capital account is credited with:

Which Journal Entry will be recorded for realization of an unrecorded asset at the time of dissolution of a Partnership Firm?

Vijay and Manohar share profits and losses in the ratio of $2:1$. They admit Prakash as a partner with $\frac{1}{4}$ share in profits with a guarantee that his share of profit will be at least Rs. $50,000$. The net profit of the firm for the year ending March 31, 2015, was Rs. $1,60,000$. Calculate the amount of profit Vijay will get.

In the case of dissolution of a partnership firm, unrecorded liabilities when paid are shown in:

Romesh took over Investments at Rs. $8,100$ which is $10\%$ less than its book value. The book value of the investment was:

The profit or loss on revaluation of assets and liabilities are distributed in:

An issue of Rs. $1,00,000$, $9\%$ debentures of Rs. $100$ each is made at a discount of $15\%$ but redeemable at a premium of $5\%$. The amount debited to the "Loss on Issue of Debentures Account" is:

Identify the steps involved in calculating goodwill under the capitalization of super profits method:(A) Calculate capital of the firm, which is equal to total assets (excluding goodwill and fictitious assets) minus outside liabilities(B) Multiply the super profits by the required rate of return multiplier(C) Calculate normal profits on capital employed(D) Calculate super profits by deducting normal profits from average profits(E) Calculate average profit for past yearsChoose the correct answer from the options given below:

Identify the true statement in respect of a partnership firm:

Match List-I with List-IIList-IList-II(A) Bank (fresh capital introduced)(I) Debit side of Partner's Current Account(B) Interest on drawings(II) Debit side of Partner's Capital Account(C) Bank (permanent withdrawal of capital)(III) Credit side of Partner's Current Account(D) Commission(IV) Credit side of Partner's Capital AccountChoose the correct answer from the options given below:

Shares can be forfeited:

Which of the following statements relates to the Fixed Capital Method?(A) The capitals of the partners shall remain fixed unless additional capital is introduced or capital is withdrawn.(B) All items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in Partner's Current Account.(C) The partners' capital accounts will always show a debit balance.(D) The partners' current account may show a debit or a credit balance.Choose the correct answer from the options given below:

Which Act empowers the Central Government to prescribe a maximum number of partners in a partnership firm?

Under which sub-head in the balance sheet does the balance of the share forfeiture account appear?

Identify the steps involved in the accounting treatment in the case of dissolution of a firm:(A) Capital accounts of partners are prepared and their final settlement is done.(B) The balance of realisation account (profit or loss on realization) is transferred to partners' capital accounts in the profit sharing ratio.(C) All assets and all external liabilities are transferred to the realisation account.(D) Realisation account is prepared.(E) Bank account is prepared.Choose the correct answer from the options given below:

Anubha looked after the dissolution work for a remuneration of Rs. $8,500$ and agreed to bear dissolution expenses up to Rs. $6,000$. Actual expenses paid by her were Rs. $7,600$. In this case:(A) Realisation A/c is debited by Rs. $10,100$ (B) Anubha's Capital A/c is credited by Rs. $9,600$.(C) Realisation A/c is debited by Rs. $13,600$.(D) Anubha's Capital is credited by Rs. $10,100$.Choose the correct answer from the options given below:

In which of the following ways does the dissolution of a firm take place?(A) Dissolution by agreement(B) Compulsory dissolution(C) On the happening of certain contingencies(D) Dissolution by noticeChoose the correct answer from the options given below:

What are the main factors affecting the value of goodwill?(A) Nature of business(B) Location(C) Efficiency of management(D) Market situationChoose the correct answer from the options given below:

Identify the sequence of journal entries with regard to the transfer of share application money and allotment of shares:(A) Share Allotment A/c Dr. To Share Capital A/c(B) Share Application A/c Dr. To Share Capital A/c(C) Bank A/c Dr. To Share Allotment A/c(D) Share Application A/c Dr. To Bank A/cChoose the correct answer from the options given below:

On the happening of certain contingencies, subject to contract between the partners, a firm is dissolved: (A) If constituted for a fixed term, by the expiry of that term.(B) If constituted to carry out one or more ventures, by the completion thereof.(C) By the death of a partner.(D) By the adjudication of a partner as an insolvent. Choose the correct answer from the options given below:

The ratio in which the continuing partners have acquired the share from the retiring/deceased partner is called:

At the time of dissolution of a firm, the Loan from a Partner Account should be:

The order to be followed in preparation of a realization account is:(A) Realization of the assets.(B) Transfer assets and liabilities to realization account.(C) Ascertainment of profit or loss on realization.(D) Payment of liabilities.Choose the correct answer from the options given below:

________ is the value of the reputation of a firm in respect of the profits expected in future over and above the normal profits.

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm.Which among the following is NOT shown in the Profit and Loss Appropriation Account?

Under which condition can the dissolution of a Partnership Firm by a Court take place?

The current ratio of a firm is $2:1$ and the quick ratio is $1:1$. If liabilities are Rs. $1,00,000$, find the value of working capital.

ABC Ltd. has given you the following information:AccountsApril 01, 2024 (Rs.)March 31, 2025 (Rs.)Machinery50,00060,000Accumulated Depreciation25,00015,000During the year, a machine costing Rs. $25,000$ with Accumulated Depreciation of Rs. $15,000$ was sold for Rs. $13,000$.Calculate cash flow from Investing Activities on the basis of the above information.

The balance sheet provides information about the financial position of an enterprise:

Calculate the 'Liquid Ratio' from the following information:ItemsValue (Rs.)Current liabilities50,000Current assets80,000Inventories20,000Advance tax5,000Prepaid expenses5,000

Which of the following is NOT a feature of financial statements?

The LOOKUP function has two syntax forms:

______ is the number 0 or 1 and indicates when payments are due.

Which of the following is NOT a mathematical function?

What is the expanded form of the accounting equation when incorporating revenues and expenses?

______ is the total number of payment periods in an annuity in a financial function.