CUET Accountancy Question Paper 2024 SET C Download Solutions and Answer Key
| Updated On - Dec 8, 2024
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CUET 2024 Accountancy Question Paper (SET C) with Answer Key PDF
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CUET 2024 ACCOUNTANCY Questions with Solutions (Set C)
| Question | Answer | Detailed Solution |
| Question 1: Anshu and Nitu are partners, sharing profits in the ratio of 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. Options: 1. 4 : 3 : 3 2. 3 : 4 : 3 3. 3 : 3 : 4 4. 3 : 2 : 1 |
1. 4 : 3 : 3 | Anshu’s new share: 3/5 − 2/10 = 6/10 − 2/10 = 4/10. Nitu’s new share: 2/5 − 1/10 = 4/10 − 1/10 = 3/10. Jyoti’s share: 3/10. New Profit Sharing Ratio: 4 : 3 : 3. |
| Question 2: 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: 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 | - Debit **Premium for Goodwill Account** to recognize the goodwill brought in cash. - Credit **Sacrificing Partner’s Capital Account** as compensation. - Credit **Gaining Partner’s Capital Account** to balance goodwill adjustment. |
| Question 3. 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 Choose the correct answer from the options given below: 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) | - (A) At the end of each half year: **4.5 months**. - (B) At the beginning of each quarter: **6.5 months**. - (C) At the beginning of each month: **7.5 months**. - (D) At the end of each quarter: **3 months**. |
| Question 4: Kavita and Lalita are partners, sharing profits in the ratio of 2 : 1. They decide to admit Mohan for 1/4 share with a guaranteed amount of 25,000. The firm earned profits of 76,000. Kavita’s share of deficiency is: Options: 1. 4,000 2. 2,000 3. 6,000 4. 4,500 |
1. 4,000 | - Mohan’s share: 1/4 × 76,000 = 19,000. - Deficiency: 25,000 − 19,000 = 6,000. - Kavita’s share of deficiency: 2/3 × 6,000 = 4,000. |
| Question 5: While preparing Cash Flow Statement, purchase of goodwill is treated as: Options: 1. Operating activity 2. Financing activity 3. Investing activity 4. Extraordinary item |
3. Investing activity | The purchase of goodwill is categorized as an investment in intangible assets and is thus treated under **investing activities** in the Cash Flow Statement. |
| Question 6: The components of Computerised Accounting System are: Options: 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 | A computerized accounting system typically consists of **data**, people who use the system, procedures to process the data, hardware infrastructure, and software to carry out the accounting processes. |
| Question 7: The Sales and Accounts Receivable Subsystem deals with: Options: 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** is responsible for tracking sales transactions, maintaining a sales ledger, and managing outstanding receivables. |
| Question 8: The common fields used in a relationship between tables are called: Options: 1. Joint fields 2. Main fields 3. Table fields 4. Key fields |
4. Key fields | In database management, **key fields** are used to establish relationships between different tables. These are unique identifiers in a table. |
| Question 9: On dissolution of a firm, bank overdraft is transferred to: Options: 1. Bank Account 2. Realisation Account 3. Partners’ Capital Account 4. Partners’ Loan Account |
2. Realisation Account | On dissolution of a firm, all liabilities, including bank overdrafts, are transferred to the **Realisation Account** to close the books of the firm. |
| Question 10: Arrange the following steps in the correct sequence of the life of a company: (A) Commencement of Business (B) Incorporation (C) Promotion (D) Floatation Choose the correct answer from the options given below: Options: 1. (A), (B), (C), (D) 2. (A), (C), (B), (D) 3. (B), (A), (D), (C) 4. (C), (B), (D), (A) |
2. (A), (C), (B), (D) | The correct sequence in the life of a company is as follows: 1. **Promotion (C)**: The idea of a company is developed and efforts are made to form the company. 2. **Incorporation (B)**: The company is legally formed and incorporated. 3. **Floatation (D)**: The company raises funds by issuing shares to the public. 4. **Commencement of Business (A)**: The company officially starts its operations and business activities. |
| Question 11: Arrange the following in the correct order: (A) Subscribed Capital (B) Issued Capital (C) Authorised Capital (D) Paid-up Capital (E) Called-up Capital Choose the correct answer from the options given below: 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) |
1. (C), (B), (A), (D), (E) | The correct order of capital is: 1. **Authorised Capital (C)**: The maximum amount of capital a company can raise. 2. **Issued Capital (B)**: The amount of capital issued to shareholders. 3. **Subscribed Capital (A)**: The part of issued capital that has been subscribed by shareholders. 4. **Paid-up Capital (D)**: The portion of subscribed capital that shareholders have actually paid. 5. **Called-up Capital (E)**: The portion of paid-up capital that is called by the company for payment. |
| Question 12: The Deceased Partner’s Capital Account includes the following amount/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 Choose the correct answer from the options given below: Options: 1. (A), (B), (C) and (E) only 2. (A), (B), (C) and (D) only 3. (A), (B), (C) and (D) only 4. (A), (B), (C), (E) and (D) only |
1. (A), (B), (C) and (E) only | The Deceased Partner’s Capital Account typically includes: - **Opening balance of his capital (A)**: The initial capital of the deceased partner. - **Share of profit/loss till the date of death (B)**: The portion of profit/loss earned till the date of death. - **Share of General Reserve (C)**: The partner’s share in the general reserve of the firm. - **Amount paid to his executors (E)**: The amount paid to the legal representatives (executors). **Drawings (D)** are not included in the capital account as they are settled separately. |
| Question 13: 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 Choose the correct answer from the options given below: 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 for calculating cash flows from operating activities is as follows: 1. **Goodwill amortised (E)**: This step adjusts the profit for non-cash items. 2. **Operating profit before working capital changes (A)**: This gives the initial profit before accounting for changes in working capital. 3. **Cash generated from operations (B)**: This is derived by adjusting the operating profit for non-cash items and working capital changes. 4. **Income tax paid (C)**: Subtracting the income tax paid from cash generated gives the net cash flow from operating activities. 5. **Net cash flow from operating activities (D)**: This is the final step showing the cash flow resulting from the company’s core operations. |
| Question 14: Calculate Trade Receivables Turnover Ratio. Options: (1) 8.18 times (2) 8.23 : 1 (3) 8.18% (4) 8.81 : 1 |
(2) 8.23 : 1 | The trade receivables turnover ratio is calculated by dividing net credit sales by average accounts receivable. |
| Question 15: Calculate Average Collection Period. Options: (1) 30 days (2) 60 days (3) 45 days (4) 15 days |
(4) 15 days | The average collection period is calculated as: **Average Collection Period** = 365 / Receivables Turnover Ratio. |
| Question 16: Calculate Trade Payables Turnover Ratio. Options: (1) 29.6 times (2) 2.96 times (3) 29.6% (4) 2.69 : 1 |
(2) 2.96 times | The trade payables turnover ratio is calculated as: **Net Credit Purchases** ÷ **Average Trade Payables**. |
| Question 17: Calculate Average Payment Period. Options: (1) 123 days (2) 121 days (3) 132 days (4) 133 days |
(2) 121 days | The average payment period is calculated as: **Average Payment Period** = 365 / Payables Turnover Ratio. |
| Question 18: Trade Receivables Turnover Ratio and Trade Payables Turnover Ratio are categorized as: Options: (1) Liquidity Ratio (2) Solvency Ratio (3) Activity Ratio (4) Profitability Ratio |
(3) Activity Ratio | These ratios fall under the category of **activity ratios**, which measure the efficiency of managing receivables and payables. |
| Question 19: What is the mode of dissolution of the firm followed by G, K, and B? Options: (1) Dissolution by Agreement (2) On the happening of certain contingencies (3) Dissolution by Notice (4) Compulsory Dissolution |
(4) Compulsory Dissolution | The mode of dissolution mentioned in the case study indicates that the partners decided to dissolve the firm due to continuous losses. This qualifies as "compulsory dissolution" as it was necessitated by business conditions beyond voluntary agreement or specific contingencies. |
| Question 20: Determine the amount of the Profit and Loss Account. Options: (1) (Cr.) 90,000 (2) (Dr.) 90,000 (3) (Cr.) 1,30,000 (4) (Dr.) 1,30,000 |
(4) (Dr.) 1,30,000 | The Profit and Loss Account reflects the cumulative losses due to continuous operational difficulties. This is debited in the books of the firm as 1,30,000. |
| Question 21: Determine Gain/Loss on Realisation. Options: (1) Loss 2,40,000 (2) Gain 24,000 (3) Loss 1,70,000 (4) Loss 2,10,000 |
(4) Loss 2,10,000 | Assets Realised = 80% × 8,50,000 = 6,80,000 Liabilities Paid = 80,000 + 40,000 = 1,20,000 Realisation Expenses = 30,000 Total Deductions = 1,20,000 + 30,000 = 1,50,000 Net Realisation Value = 6,80,000 − 1,50,000 = 5,30,000 Loss on Realisation = 8,50,000 − 5,30,000 = 2,10,000 |
| Question 22: The entry for realization expenses in the above case study will be: Options: (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 |
(3) G’s Capital A/c Dr. To Realisation A/c | The realization expenses of 30,000 were paid by G on behalf of the firm. Hence, G’s Capital Account is debited, and the Realisation Account is credited. |
| Question 23: Existing Profit and Loss Account in the books of the firm will be shared/borne by partners in the ratio: Options: (1) 5:3:2 (2) Equal Ratio (3) 4:3:2 (4) Ratio of closing capital claims |
(1) 5:3:2 | The Profit and Loss Account balances in the firm are shared/borne by partners according to their agreed profit-sharing ratio. In this case, it is clearly stated as 5:3:2 in the case study. |
| Question 24. 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. |
| Question 25. 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. |
| Question 26.Match List-I with List-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. |
| Question 27. 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. |
| Question 28.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. |
| Question 29.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. |
| Question 30. 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). |
| Question 31. 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. |
| Question 32. 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). |
| Question 33. 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. |
| Question 34. 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. |
| Question 35. 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. |
| Question 36. 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. |
| Question 37. 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. |
| Question 38. 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. |
| Question 39. 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. |
| Question 40. 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. |
| Question 41. 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. |
| Question 42 .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. |
| Question 43. 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. |
| Question 44. 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. |
| Question 45. 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 |
| Question 46. 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. |
| Question 47. 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. |
| Question 48. 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. |
| Question 49. 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. |
| Question 50. 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. |
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