CUET Accountancy Question Paper 2024 SET B Download Solutions and Answer Key

| Updated On - Dec 8, 2024

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CUET 2024 Accountancy Question Paper (SET B) with Answer Key PDF

CUET 2024 Accountancy Question Paper with Answer Key Set B	Download	Check Solution

CUET 2024 Accountancy Questions with Solutions (Set B)

Question	Answer	Detailed Solution
1. Libraries run by charitable trusts are an example of: (1) Partnership (2) Not for profit organisation (3) Companies (4) Cooperatives	(2) Not for profit organisation	Libraries operated by charitable trusts are primarily designed to serve the public interest without generating profits. Such entities focus on providing community services, classifying them as not-for-profit organisations.
2. The main source of revenue for 'not for profit' organisation is: (1) Sale of goods (2) Sale of periodicals (3) Subscription from members (4) Sale of assets	(3) Subscription from members	Not-for-profit organisations rely on subscriptions or donations from their members as their primary revenue source. These funds are used to sustain their operations and support their causes, rather than pursuing commercial profits.
3.Match List-I with List-II: Correct Answer: 3. (A) - (III), (B) - (IV), (C) - (I), (D) - (II) List-I Description (A) Share capital (B) Reserves and surplus (C) Reserve capital (D) Current liabilities List-II Description (I) Will be called at the time of winding up (II) Calls in advance (III) Subscribed but not fully paid (IV) Sinking fund	3. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	• Share capital (A) is subscribed but not fully paid (III) because it represents the capital that shareholders have agreed to pay but haven’t fully paid yet. • Reserves and surplus (B) are often associated with sinking funds (IV) since they are used for specific purposes like debt repayment. • Reserve capital (C) is called at the time of winding up (I) because it is capital that can only be called during the liquidation process. • Current liabilities (D) include calls in advance (II), which represent money received in advance for calls on shares.
4. Which of the following would affect the Revaluation Account at the time of reconstitution of a partnership firm? 1. Increase in assets 2. Drawings against capital 3. Interest on capital 4. Partner’s salary	1. Increase in assets	The Revaluation Account is affected by changes in the value of assets and liabilities. Increase in assets would impact the account as it needs to reflect the updated value.
5.Identify the correct sequence to be followed while preparing the final account of a partnership firm: (A) Profit and Loss Appropriation Account (B) Profit and Loss Account (C) Trading Account (D) Balance Sheet Options: 1. (C), (B), (A), (D) 2. (A), (C), (B), (D) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A)	1. (C), (B), (A), (D)	The correct sequence for preparing the final accounts is: Start with the Trading Account to calculate gross profit or loss. Next, prepare the Profit and Loss Account to determine net profit or loss. Then, create the Profit and Loss Appropriation Account to allocate profits among partners. Finally, prepare the Balance Sheet to show the financial position of the firm.
6.Window dressing is a practice: 1. To manipulate the accounts to show a better picture of the financial position than the actual one. 2. To show excessive depreciation. 3. To avoid tax. 4. To reduce tax.	1. To manipulate the accounts to show a better picture of the financial position than the actual one.	Window dressing in accounting refers to the manipulation of financial statements to make them appear more favorable than the actual financial position. This is often done to attract investors, improve creditworthiness, or satisfy other stakeholders.
7. Match List-I with List-II: List-I Description (A) Salary to partner (B) Interest on partner’s loan (C) Interest on partner’s drawings (D) Additional capital introduced List-II Description (I) Credit side of Partner’s Capital Account (II) Debit side of Partner’s Current Account (III) Debit side of Profit and Loss Account (IV) Credit side of Partner’s Current Account	3. (A) - (IV), (B) - (II), (C) - (III), (D) - (I)	• Salary to partner (A) is recorded on the credit side of the Partner’s Current Account (IV). • Interest on partner’s loan (B) is recorded on the debit side of the Partner’s Current Account (II). • Interest on partner’s drawings (C) is recorded on the debit side of the Profit and Loss Account (III). • Additional capital introduced (D) is recorded on the credit side of the Partner’s Capital Account (I).
8. Which of the following would affect the Revaluation Account at the time of admission of a partner? (A) Increase in assets (B) Drawings against capital (C) Recording of unrecorded assets (D) Decrease in liabilities Options: (1) (A), (B) and (C) only (2) (A), (B) and (D) only (3) (A), (C) and (D) only (4) (B), (C) and (D) only	3. (A), (C) and (D) only	The Revaluation Account records changes in the value of assets and liabilities during the admission of a partner. • Increase in assets (A) • Recording of unrecorded assets (C) • Decrease in liabilities (D) • Drawings against capital (B) do not affect the Revaluation Account.
9. Match List-I with List-II: List-I (Items of cash flow) (A) Purchase of tangible assets (B) Issue of shares (C) Increase in current assets (D) Marketable securities List-II (Type of activity) (I) Operating activity (II) Cash and cash equivalents (III) Investing activity (IV) Financing activity	4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	• Purchase of tangible assets (A): Classified as an investing activity (III). • Issue of shares (B): A financing activity (IV). • Increase in current assets (C): Falls under operating activity (I). • Marketable securities (D): Considered cash and cash equivalents (II).
10. Which one of the following are correct in connection with the Common Size Statement? (A) Expressed as a percentage on revenue from operation (B) Horizontal analysis (C) Vertical analysis (D) Expressed as a percentage on total assets Options: (1) (A), (B) and (D) only (2) (A), (B) and (C) only (3) (A), (C) and (D) only (4) (B), (C) and (D) only	3. (A), (C) and (D) only	Common Size Statements are used in vertical analysis and express individual components of financial statements as percentages of a common base (e.g., revenue or total assets). Horizontal analysis is not part of Common Size Statements.
11. Calculate the resulting cash flow and state the nature of cash flow from the following information: Acquired machinery for 3,50,000 by issuing cheque. Options: (1) Investing activity and outflow 3,50,000 (2) Investing activity and inflow 3,50,000 (3) Investing activity and no flow (4) Operating activity and outflow 3,50,000	1. Investing activity and outflow 3,50,000	Acquisition of machinery is part of investing activities as it involves the purchase of fixed assets. Since payment is made through a cheque, it results in a cash outflow. • Investing Activity: Purchase of machinery falls under investing activities. • Outflow: Payment by cheque reduces cash, leading to an outflow of 3,50,000.
12. Arrange the following in proper sequence while preparing the Cash Flow Statement: (A) Net cash flow from operating activities (B) Cash flow from financing activities (C) Cash flow from investing activities (D) Calculate net profit before tax and extraordinary items in working note Options: (1) (A), (B), (C), (D) (2) (D), (A), (C), (B) (3) (B), (A), (D), (C) (4) (C), (B), (D), (A)	2. (D), (A), (C), (B)	The proper sequence for preparing a Cash Flow Statement is: • (D): Start by calculating net profit before tax and extraordinary items in the working note. • (A): Then, calculate net cash flow from operating activities. • (C): Follow it with cash flow from investing activities. • (B): Conclude with cash flow from financing activities.
13. The adjustment required for overvaluation of closing stock, while calculating adjusted profit for calculating goodwill is: (A) Reduction from concerned year’s profit. (B) Reduction from next year’s profit. (C) Addition to next year’s profit. (D) Addition to previous year’s profit. Options: (1) (A), (B) and (D) only (2) (A) and (C) only (3) (A) and (D) only (4) (B), (C) and (D) only	3. (A) and (D) only	When closing stock is overvalued: • It inflates the profit of the current year (concerned year), hence it must be reduced from the concerned year’s profit (A). • The opening stock of the next year is overvalued, reducing the profit of the next year. To adjust, it must be reduced from next year’s profit (B). • The profit of the previous year would have been understated due to an undervalued opening stock. To correct this, we add it to the previous year’s profit (D). (C) is incorrect because overvaluation impacts the next year’s opening stock negatively.
14. Oversubscription is a situation where the: (1) Number of shares applied for is equal to the number of shares issued. (2) Number of shares applied for is more than the number of shares issued. (3) Number of shares applied for is less than the number of shares issued. (4) Face value of the share is less than the issue price of the share.	2. Number of shares applied for is more than the number of shares issued.	Oversubscription occurs when the demand for shares exceeds the supply, i.e., more applications are received than the shares available for issuance.
15. 400 shares of 50 each issued at par were forfeited for non-payment of final call of 10 per share. These shares were reissued at 45 per share as fully paid-up. The amount transferred to capital reserve is: (1) 15,000 (2) 14,000 (3) 16,000 (4) 13,000	2. 14,000	• Total forfeiture amount = 10 (unpaid amount) × 400 shares = 4,000. • Reissue price = 45 per share × 400 shares = 18,000. • Total amount received = 18,000 (reissue price) + 4,000 (forfeiture amount) = 22,000. • Face value = 50 × 400 = 20,000. • Capital Reserve = Amount received - Face value = 22,000 - 20,000 = 2,000. Amount transferred to capital reserve = 14,000.
16. When debentures are issued at premium and redeemed at premium, the journal entry will have the following combination: (A) Discount on issue of debentures account is credited (B) Loss on issue of debentures account is debited (C) Security premium account is credited (D) Premium on redemption of debentures account is credited Options: (1) (A), (B) and (D) only (2) (A), (B) and (C) only (3) (A), (B), (C) and (D) (4) (B), (C) and (D) only	4. (B), (C) and (D) only	• (B) Loss on issue of debentures account is debited: Correct, as the company incurs a loss due to the issue at a discount. • (C) Security premium account is credited: Correct, as the premium on the issue is credited to this account. • (D) Premium on redemption of debentures account is credited: Correct, as the premium paid at the time of redemption is treated as a liability. • (A) Discount on issue of debentures account is credited: Incorrect, as discounts are debited, not credited.
17. Match List-I with List-II: List-I (Name of account to be debited or credited, when shares are forfeited) List-II (Amount to be debited or credited) (A) Share Capital Account (B) Share Forfeited Account (C) Calls-in-arrears Account (D) Securities Premium Account Options: (1) (A) - (I), (B) - (II), (C) - (III), (D) - (IV) (2) (A) - (IV), (B) - (III), (C) - (II), (D) - (I) (3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III) (4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	2. (A) - (IV), (B) - (III), (C) - (I), (D) - (II)	• (A) Share Capital Account (IV): Debited with the total amount called up. • (B) Share Forfeited Account (III): Credited with the amount already received. • (C) Calls-in-arrears Account (I): Debited with the unpaid amount. • (D) Securities Premium Account (II): Credited with the premium amount.
18. Arrange the following in the correct sequence in the context of debenture: (A) Payment to debenture-holders (B) Creation of DRR (C) Issue of debentures (D) Redemption becomes due Options: 1. (A), (B), (C), (D) 2. (A), (C), (B), (D) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A)	4. (C), (B), (D), (A)	The correct sequence for debenture handling is: 1. Issue of debentures (C): Debentures are issued to raise funds. 2. Creation of DRR (B): A Debenture Redemption Reserve (DRR) is created for ensuring repayment. 3. Redemption becomes due (D): The debenture maturity date arrives, and repayment becomes due. 4. Payment to debenture-holders (A): Payment is made to debenture-holders.
19.If a delay occurs beyond 8 days in refunding the subscription amount, failing to gather the minimum subscription, from the date of closure of the subscription list, the company shall be liable for interest at the rate of: 1. 15% 2. 12% 3. 6% 4. Prevailing in State Bank of India	3. 6%	As per company law, if the subscription amount is not refunded within 8 days of the subscription list’s closure, the company must pay interest at the rate of 6% per annum.
20. A company can accept calls in advance, if authorised by: 1. Shareholders 2. Board of Directors 3. Articles of Association 4. Memorandum of Association	3. Articles of Association	The Articles of Association of a company specify the rules for internal management, including provisions related to accepting calls in advance.
21. A, B, and C are partners sharing profits in the ratio of 3 : 2 : 1. C died on 1st July 2023. On this date, final accounts were prepared to ascertain profits for the period. It resulted in a profit of 1,75,000 to the firm. To give effect to the above: 1. Profit and Loss Account will be debited. 2. Profit and Loss Appropriation Account will be debited. 3. Profit and Loss Account will be credited. 4. Profit and Loss Appropriation Account will be credited.	4. Profit and Loss Appropriation Account will be credited	The profit of 1,75,000 is distributed among the partners according to their profit-sharing ratio (3 : 2 : 1). The Profit and Loss Appropriation Account is used to credit each partner’s capital account with their respective share of the profit.
22. On the date of admission of a partner, there was a balance of 45,000 in the account of machinery. It was found undervalued by 10%. The value of machinery will appear in the new Balance Sheet at: 1. 49,500 2. 50,000 3. 40,000 4. 40,500	1. 49,500	The machinery is undervalued by 10%. To find the new value: Increase in value = 10% of 45,000 = 4,500 New value of machinery = 45,000 + 4,500 = 49,500
23. Dividend received is: 1. Operating activity 2. Financing activity 3. Investing activity 4. Cash and cash equivalents	3. Investing activity	Dividend received is classified as an investing activity in the cash flow statement because it represents a return on investments made in other companies.
24. A partnership can have a maximum of 50 partners. This limit has been set by the: 1. Indian Partnership Act, 1932 2. State Government 3. Indian Contract Act, 1872 4. Central Government	4. Central Government	The maximum number of partners in a partnership firm is capped at 50, as prescribed under Rule 10 of the Companies (Miscellaneous) Rules, 2014, issued by the Central Government. This provision applies unless specified otherwise by special laws.
25. Which of the following is an example of sequential code? 1. Using Code “CL001” for “Accounts of XYZ Ltd.” 2. Using Code “100–199” for “Dealers of Small Pumps.” 3. Using Code “SJ” for “Sales Journals.” 4. Using Code “HQ” for “Headquarters.”	2. Using Code “100–199” for “Dealers of Small Pumps.”	Sequential codes are numerical and assigned in a logical sequence to organize data systematically. Using codes like “100–199” is an example of sequential coding for dealers.
26. If there is no claim against Workmen Compensation Reserve, it is at the time of admission of a partner. Fill in the blank with the correct answer from the options given below. 1. Debited to old partners’ capital account. 2. Credited to all partners’ capital accounts. 3. Credited to old partners’ capital accounts. 4. Debited to all partners’ capital accounts.	3. Credited to old partners’ capital accounts.	When there is no claim against the Workmen Compensation Reserve, it is distributed among the existing partners in their old profit-sharing ratio by crediting their capital accounts.
27. A, B, and C are partners sharing profits in the ratio of 3 : 3 : 4. They decide to share the future profits equally. The sacrifice or gain of partners are: 1. A gains 1/30 ; B gains 1/30 ; C sacrifices 2/30 2. A gains 2/30 ; B gains 1/30 ; C sacrifices 3/30 3. A sacrifices 1/30 ; B gains 3/30 ; C sacrifices 2/30 4. A gains 2/30 ; B gains 3/30 ; C sacrifices 5/30	4. A gains 2/30 ; B gains 3/30 ; C sacrifices 5/30	To calculate the sacrifices or gains, subtract the old share from the new share. Since the new share is 1/3 (as they decide to share the future profits equally), we calculate the difference for each partner: - A's old share = 3/10, New share = 1/3 → A gains 2/30. - B's old share = 3/10, New share = 1/3 → B gains 3/30. - C's old share = 4/10, New share = 1/3 → C sacrifices 5/30.
28. Match List-I with List-II: List-I (Equal amount of drawings made) List-II (Number of months for which interest calculated) (A) At the end of each half year (B) At the beginning of each quarter (C) At the beginning of each month (D) At the end of each quarter Options: 1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV) 3. (A) - (IV), (B) - (III), (C) - (I), (D) - (II) 4. (A) - (IV), (B) - (II), (C) - (III), (D) - (I)	1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)	The correct sequence for interest calculation based on the time of drawings: - (A) At the end of each half year: Interest is calculated for 4.5 months because the average time is 4.5 months for half-yearly drawings made at the end. - (B) At the beginning of each quarter: Interest is calculated for 6.5 months because the average time for quarterly drawings at the beginning is 6.5 months. - (C) At the beginning of each month: Interest is calculated for 7.5 months because the average time for monthly drawings at the beginning is 7.5 months. - (D) At the end of each quarter: Interest is calculated for 3 months because the average time for quarterly drawings at the end is 3 months.
29. Kavita and Lalita are partners, sharing profits in the ratio of 2 : 1. They decide to admit Mohan for 1/4 share in future profits with a guaranteed amount of 25,000. Both Kavita and Lalita undertake to meet the liability arising due to the guaranteed amount to Mohan in their respective profit-sharing ratio. The firm earned profits of 76,000 for the year 2022–23. The deficiency borne by Kavita is: 1. 4,000 2. 2,000 3. 6,000 4. 4,500	1. 4,000	Mohan’s Share in Profits: Mohan's share = 1/4 × 76,000 = 19,000. Deficiency: Deficiency = 25,000 − 19,000 = 6,000. Distribution of Deficiency: Kavita’s share of deficiency = 2/3 × 6,000 = 4,000. Lalita’s share of deficiency = 1/3 × 6,000 = 2,000. Therefore, Kavita bears 4,000.
30. Anshu and Nitu are partners, sharing profits in the ratio 3 : 2. They admitted Jyoti as a new partner for 3/10 share, which she acquired 2/10 from Anshu and 1/10 from Nitu. Calculate the new profit-sharing ratio of Anshu, Nitu, and Jyoti: 1. 4 : 3 : 3 2. 3 : 4 : 3 3. 3 : 3 : 4 4. 3 : 2 : 1	1. 4 : 3 : 3	Anshu’s new share: Old share of Anshu − Share given to Jyoti = 3/5 − 2/10 = 6/10 − 2/10 = 4/10. Nitu’s new share: Old share of Nitu − Share given to Jyoti = 2/5 − 1/10 = 4/10 − 1/10 = 3/10. Jyoti’s share: 3/10. New profit-sharing ratio: Anshu : Nitu : Jyoti = 4 : 3 : 3.
31. The journal entry for treatment of goodwill, when a new partner brings his share of goodwill in cash and one of the old partners gains, involves the following: (A) Gaining Partner’s Capital Account is debited (B) Premium for Goodwill Account is debited (C) Sacrificing Partner’s Capital Account is credited (D) Gaining Partner’s Capital Account is credited Options: 1. (A), (B), and (D) only 2. (A), (B), and (C) only 3. (A), (B), (C), and (D) only 4. (B), (C), and (D) only	4. (B), (C), and (D) only	When a new partner brings goodwill in cash: - (B) Premium for Goodwill Account is debited to recognize the cash contribution for goodwill. - (C) Sacrificing Partner’s Capital Account is credited because they are sacrificing part of their share to accommodate the new partner. - (D) Gaining Partner’s Capital Account is credited as they are benefiting from the additional capital introduced by the new partner. Therefore, the correct journal entry involves (B), (C), and (D) only.
32. While preparing the Cash Flow Statement, purchase of goodwill is treated as: 1. Operating activity 2. Financing activity 3. Investing activity 4. Extraordinary item	3. Investing activity	The purchase of goodwill is considered an investment in intangible assets. It is classified as an investing activity in the cash flow statement because it represents the outflow of cash for acquiring long-term assets.
33. The components of Computerised Accounting System are: 1. Data, Report, Ledger, Hardware, Software 2. Data, People, Procedure, Hardware, Software 3. People, Procedure, Ledger, Data, Chart of Accounts 4. Data, Coding, Procedure, Rules, Output	2. Data, People, Procedure, Hardware, Software	The core components of a Computerised Accounting System include: - Data (input), - People (users), - Procedure (rules for processing), - Hardware (physical devices), and - Software (programs for processing and reporting).
34. The Sales and Accounts Receivable Subsystem deals with: 1. The recording of Sales, maintaining of Sales Ledger and Receivables 2. The preparation of Budget for the coming financial year 3. The preparation of Profit and Loss Account, Balance Sheet and Cash Flow Statement 4. The purchase and payment to creditors	1. The recording of Sales, maintaining of Sales Ledger and Receivables	The Sales and Accounts Receivable Subsystem focuses on: - Recording sales transactions, - Maintaining the sales ledger, and - Managing accounts receivable (payments due from customers).
35. The common fields used in a relationship between tables are called: 1. Joint fields 2. Main fields 3. Table fields 4. Key fields	4. Key fields	Key fields (such as primary and foreign keys) are used to establish relationships between tables in a database. These fields help link data across different tables, ensuring data integrity and consistency.
36. On dissolution of a firm, bank overdraft is transferred to: 1. Bank Account 2. Realisation Account 3. Partners’ Capital Account 4. Partners’ Loan Account	2. Realisation Account	Bank overdraft is a liability of the firm. During the dissolution of the firm, all liabilities, including bank overdraft, are transferred to the Realisation Account for settlement.
37. Arrange the following steps in the correct sequence of the life of a company: (A) Commencement of Business (B) Incorporation (C) Promotion (D) Floatation Options: 1. (A), (B), (C), (D) 2. (A), (C), (B), (D) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A)	4. (C), (B), (D), (A)	The correct sequence is: 1. Promotion (C): The company idea is conceptualized. 2. Incorporation (B): The company is legally registered. 3. Floatation (D): The company raises funds by issuing shares. 4. Commencement of Business (A): The business operations begin after meeting legal requirements.
38. Arrange the following in the correct order: (A) Subscribed Capital (B) Issued Capital (C) Authorised Capital (D) Paid-up Capital (E) Called-up Capital Options: 1. (C), (B), (A), (D), (E) 2. (B), (C), (A), (D), (E) 3. (C), (B), (A), (E), (D) 4. (B), (C), (A), (E), (D)	3. (C), (B), (A), (E), (D)	The correct order of capital in a company is: 1. Authorised Capital (C): The maximum capital a company can raise. 2. Issued Capital (B): Portion of authorized capital issued to shareholders. 3. Subscribed Capital (A): Portion of issued capital subscribed by shareholders. 4. Called-up Capital (E): The portion of subscribed capital that shareholders are required to pay. 5. Paid-up Capital (D): The actual amount paid by shareholders.
39. The Deceased Partner’s Capital Account includes the following amounts/balances: (A) Opening balance of his capital (B) His share of profit/loss till the date of death (C) His share of General Reserve (D) His drawings till the date of death (E) Amount paid to his executors Options: 1. (A), (B), (D), and (E) only 2. (A), (C), and (D) only 3. (A), (B), and (C) only 4. (A), (B), (C), and (E) only	4. (A), (B), (C), and (E) only	The deceased partner’s capital account includes: 1. Opening balance of capital (A). 2. Share of profit/loss till death (B). 3. Share of General Reserve (C). 4. Amount paid to executors (E). Drawings (D) are deducted but not included in the final balance.
40. Identify the correct sequence of the following steps involved in calculating cash flows from operating activities of a company: (A) Operating profit before working capital changes (B) Cash generated from operations (C) Income tax paid (D) Net cash flow from operating activities (E) Goodwill amortised Options: 1. (E), (C), (D), (A), (B) 2. (E), (A), (D), (B), (C) 3. (E), (A), (B), (C), (D) 4. (A), (B), (C), (D), (E)	3. (E), (A), (B), (C), (D)	The correct sequence is: 1. Goodwill amortised (E): Add back non-cash items. 2. Operating profit before working capital changes (A): Adjust net profit. 3. Cash generated from operations (B): Adjust for working capital changes. 4. Income tax paid (C): Subtract income tax. 5. Net cash flow from operating activities (D): The final result.
Q41. Calculate Trade Receivables Turnover Ratio. Formula: Trade Receivables Turnover Ratio = Revenue from Operations / Average Trade Receivables Given: Revenue from Operations = 8,75,000, Trade Debtors = 59,000, Bills Receivable = 48,000. Average Trade Receivables = Trade Debtors + Bills Receivable = 59,000 + 48,000 = 1,07,000. Calculation: Trade Receivables Turnover Ratio = 8,75,000 / 1,07,000 ≈ 8.18 times.	(1) 8.18 times	The Trade Receivables Turnover Ratio measures how efficiently the company collects receivables. The ratio of 8.18 times indicates that the company collects its receivables approximately 8.18 times a year. The correct answer is Option (1): 8.18 times.
Q42. Calculate Average Collection Period. Formula: Average Collection Period (in days) = 365 / Trade Receivables Turnover Ratio Calculation: Average Collection Period = 365 / 8.18 ≈ 45 days.	(3) 45 days	The Average Collection Period indicates the average number of days it takes for the company to collect its receivables. With a ratio of 8.18 times, the company takes approximately 45 days to collect its receivables. The correct answer is Option (3): 45 days.
Q43. Calculate Trade Payables Turnover Ratio. Formula: Trade Payables Turnover Ratio = Purchases / Average Trade Payables Given: Purchases = 4,20,000, Bills Payable = 52,000, Creditors = 90,000. Average Trade Payables = Creditors + Bills Payable = 90,000 + 52,000 = 1,42,000. Calculation: Trade Payables Turnover Ratio = 4,20,000 / 1,42,000 ≈ 2.96 times.	(2) 2.96 times	The Trade Payables Turnover Ratio indicates how often a company settles its payables during a given period. The ratio of 2.96 times means the company settles its payables approximately 2.96 times in a year. The correct answer is Option (2): 2.96 times.
Q44. Calculate Average Payment Period. Formula: Average Payment Period (in days) = 365 / Trade Payables Turnover Ratio Calculation: Average Payment Period = 365 / 2.96 ≈ 123 days.	(1) 123 days	The Average Payment Period indicates the average number of days the company takes to settle its payables. With a ratio of 2.96 times, it takes approximately 123 days for the company to pay its creditors. The correct answer is Option (1): 123 days.
Q45. Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorised as: 1. Liquidity Ratio 2. Solvency Ratio 3. Activity Ratio 4. Profitability Ratio	(3) Activity Ratio	Both the Trade Receivables Turnover Ratio and the Trade Payables Turnover Ratio measure the efficiency of a company’s operations in collecting receivables and paying creditors. They are classified under Activity Ratios, which measure the effectiveness of business operations. The correct answer is Option (3): Activity Ratio.
Q46. What is the mode of dissolution of the firm followed by G, K, and B? 1. Dissolution by Agreement 2. On the happening of certain contingencies 3. Dissolution by Notice 4. Compulsory Dissolution	(2) On the happening of certain contingencies	The dissolution of the firm occurred due to continuous losses, which is a situation that falls under the category of "dissolution on the happening of certain contingencies" as per the Partnership Act. Therefore, the correct answer is Option (2): On the happening of certain contingencies.
Q47: Determine the amount of Profit and Loss Account. 1. (Cr.) 90,000 2. (Dr.) 90,000 3. (Cr.) 1,30,000 4. (Dr.) 1,30,000 Correct Answer: 2. (Dr.) 90,000	(Dr.) 90,000	The remaining balance in the Profit and Loss Account is a debit balance of 90,000, as the firm was incurring continuous losses.
Q48: Determine Gain/Loss on Realisation. 1. Loss 2,40,000 2. Gain 24,000 3. Loss 1,70,000 4. Loss 2,10,000 Correct Answer: 4. Loss 2,10,000	Loss 2,10,000	Realisation Value of Assets = 80% × 8,50,000 = 6,80,000. Total Realisation Amount = 6,80,000 − 80,000 (Liabilities Paid) − 40,000 (Unrecorded Liability) − 30,000 (Realisation Expenses) = 5,30,000. The Book Value of Assets = 8,50,000, so the Loss on Realisation = 8,50,000 − 5,30,000 = 2,10,000.
Q49: The entry for realisation expenses in the above case study will be: 1. Realisation A/c Dr. To Cash A/c 2. Realisation A/c Dr. To G’s Capital A/c 3. G’s Capital A/c Dr. To Realisation A/c 4. Cash A/c Dr. To Realisation A/c Correct Answer: 2. Realisation A/c Dr. To G’s Capital A/c	Realisation A/c Dr. To G’s Capital A/c	The realisation expenses of 30,000 were paid by G on behalf of the firm. Therefore, the realisation account is debited, and G’s capital account is credited.
Q50: Existing Profit and Loss Account in the books of the firm will be shared/borne by partners in the ratio: 1. 5:3:2 2. Equal Ratio 3. 4:3:2 4. Ratio of closing capital claims Correct Answer: 1. 5:3:2	5:3:2	The accumulated losses in the Profit and Loss Account are shared in the profit-sharing ratio of 5:3:2 among G, K, and B.