Adda247 Capsule 549

Chemistry
CUET 2023 EXAMS

(ACCOUNTANCY MBQs)
Exam Date: 25th May, 28th May
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CUET 2023 MBQs (Accountancy)
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Exam Date 25th May 2023

Q1. Mohit, Shyam and Naveen were partners in a firm sharing profits in the ratio of 3 : 2 : 1. The partners
decide to share future profits in the ratio of 2:2:1. Each partner's gain or sacrifice due to change in ratio
will be:
(a) Mohit's Sacrifice 3/30; Shyam's Gain 2/30; Naveen's Gain 1/30
(b) Mohit's Sacrifice 2/30; Shyam's Gain 1/30; Naveen's Gain 1/30
(c) Mohit's Gain 3/30; Shyam's Sacrifice 2/30; Naveen's Sacrifice 1/30
(d) Mohit’s Gain 2/30 Shyam's Sacrifice 1/30; r Naveen's Sacrifice 1/30
Q2. K, P, M and G are sharing profits and losses in the ratio of 4:3:2:1. M retired and the continuing partners
decide to share future profit equally. If Goodwill is valued as ₹9,00,000 entry for goodwill will be:
(a) K’s Capital A/c … Dr. ₹60,000
P’s Capital A/c … Dr. ₹60,000
G’s Capital A/c … Dr. ₹1,80,000
(b) K’s Capital A/c … Dr. ₹1,80,000
To M’s Capital A/c ₹1,80,000
(c) P’s Capital A/c … Dr. ₹30,000
G’s Capital A/c … Dr. ₹2,10,000
To K’s Capital A/c ₹60,000
(d) P’s Capital A/c … Dr. ₹1,20,000
G’s Capital A/c … Dr. ₹60,000
Q3. An investor would prefer to invest in the ________ of a company rather than its ______ because
________ are more secured than __________.
(a) Shares; Debentures; Shares; Debentures
(b) Debentures; Shares; Debentures; Shares
(c) Shares; Debentures; Debentures; Shares
(d) Debentures; Shares; Shares; Debentures
Q4. Which of the following is not shown under the heading Current Assets?
(a) Debtors
(b) Prepaid Expenses
(c) Trade Payables
(d) Cheques-in-Hand
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Q5. Avi, Ravi and Chavi are partners sharing profits in the ratio of 5 : 3 : 2. They were to share future profits
in the ratio of 2 : 3 : 5 with effect from 1st April, 2022. They also decided to adjust General Reserve
without affecting the book value by passing an adjustment entry. If General Reserve is ₹45,000, then
Chavi’s capital Account will be debited by __________
(a) ₹13,500
(b) ₹12,500
(c) ₹11,500
(d) ₹14,500
Q6. Onsite Ltd. is in the business of manufacturing LED bulbs. During the year 2020—21, it purchased a
machine for ₹15,50,000. It paid salaries and wages of ₹6,60,000 to its employees. It issued Equity Shares
of nominal (face) value of ₹12,00,000 at 10% premium and 9% Preference Shares of ₹6,00,000 at par. It
incurred ₹45,000 as share issue expenses. It earned a profit of ₹12,72,000 for the year ended 31st
March, 2021. Cash Flow from Financing Activities will be
(a) ₹18,75,000 (Cash Used)
(b) ₹19,20,000 (Cash Used)
(c) ₹19,20,000 (Cash Flow)
(d) ₹18,75,000 (Cash Flow)
Q7. X Ltd. invited applications for allotment of 4,00,000 shares. It received applications for 3,20,000 shares.
Shares that X Ltd. can allot to subscribers are
(a) 3,20,000 shares.
(b) 4,00,000 shares.
(c) Nil
(d) Cannot be determined.
Q8. At the time of dissolution of a partnership firm, total assets including Cash/Bank balance of ₹1,00,000
are of ₹13,00,000 and Liabilities are ₹6,20,000 including Investment Fluctuation Reserve of ₹70,000. If
assets were realised at 125% and reallisation expenses paid by the firm were ₹24,000, then Profit/Loss
on realisation will be
(a) Profit ₹2,76.000
(b) Loss ₹3,71,000
(c) Loss ₹2,76,000
(d) Profit ₹3,46,000
Q9. Cash inflow arises when the net effect of transaction is ______ in _______.
(a) Increase, Cash and Cash Equivalents
(b) Decrease, Cash and Cash Equivalents
(c) No change, Cash and Cash Equivalents
(d) Either increase or decrease, Cash and Cash Equivalents
Direction for Questions 10 to 13: Answer the given questions as per given information.
Unique Housing society, Coimbatore, Tamil Nadu has a vacant space where they planned to develop
sports ground. Following information is extracted from its books:
Particulars Amount
(₹)
Capital Fund as on 1st April, 2021 50,00,000
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Sports Ground Fund as on 1st April, 2021 20,00,000

Donation received for Sports Ground during the year 3,45,000
2021-22
9% Sports ground Fund Investment as on 1st April, 2021 20,00,000
Interest received on Sports Ground Fund Investment 1,80,000
Expenditure on Development of Sports Ground ₹12,00,000. Development work is not yet complete.
Answer the following questions:
Q10. Closing Balance of Capital Fund is

(a) ₹62,00,000
(b) ₹50,00,000
(c) ₹38,00,000
(d) ₹54,50,000
Q11. Closing Balance of Sports Ground Fund is

(a) ₹14,75,000
(b) ₹8,00,000
(c) ₹11,45,000
(d) ₹13,25,000
Q12. Interest received on Specific Fund Investment (Sports Ground Fund, in this case) is shown in the financial
statements as follows:
(a) in the credit side of Income & Expenditure Account;
(b) in the Liabilities Side of the Balance Sheet by adding it to the Fund;
(c) in the receipts side of Receipts & Payments Account and credit side of Income & Expenditure Account;
(d) in the receipts side of Receipts & Payments Account and Liabilities Side of the Balance Sheet by adding
it to the Sports Ground Fund.
Q13. Interest received on General Fund Investment is shown in the financial statements as follows:
(a) in the credit side of Income & Expenditure Account;
(b) in the Liabilities Side of the Balance Sheet by adding it to the Fund;
(c) in the receipts side of Receipts & Payments Account and credit side of Income & Expenditure Account;
(d) in the receipts side of Receipts & Payments Account and Liabilities Side of the Balance Sheet by adding
it to the Fund.
Q14. ABC Mutual Fund Company received a dividend of ₹8,00,000 on shares held as inventory in another
company’s shares. While preparing Cash Flow Statement it will be classified as
(a) Inflow under Cash Flow from Operating Activities.
(b) Inflow under Cash Flow from Investing Activities.
(c) Inflow under Cash Flow from Financing Activities.
(d) Inflow under Cash and Cash Equivalents.
Q15. Match the items given in LIST I with items in List II being headings/sub-headings (Balance Sheet) as
defined in Schedule III of Companies Act, 2013.
LIST I LIST II
A. Inventory I. Notes to Accounts on Share Capital
B. Cash Credit II. Other Current Liabilities
Page |3
C. Calls-in-Advance III. Current Assets

D. Shares Forfeited IV. Other Current Assets
E. Accrued Interest V. Short-term Borrowings
Choose the correct option:
(a) A-III, B-V, C-I, D-IV and E-II
(b) A-III, B-V, C-II, D-I and E-IV
(c) A-III, B-V, C-II, D-II and E-IV
(d) A-III, B-IV, C-II, D-II and E-VI
Q16. Calculate Plant and Machinery purchased during the year from the following information:
1st April, 2014 31st March, 2015
Plant and Machinery 7,20,000 8,60,000
Information:
(i) Depreciation charged during the year ₹85,000
(ii) Plant and Machinery having a written down value of ₹1,10,000 was sold for ₹1,25,000
(a) ₹3,00,000
(b) ₹3,50,000
(c) ₹3,35,000
(d) ₹3,65,000
Direction for question 17 to 20: Read the given case study and answer the questions as per given
information.
Tarun and Bimal are partners sharing profits and losses in the ratio of 3 : 2. Because of the uncertain
situation caused due to lockdowns, their working capita! requirement had increased. They decided to
expand the business besides meeting the working capital shortage by admitting Mukesh as partner for
1/4th share, Mukesh took 1/5th of his share from Tarun and balance from Bimal. Mukesh's share of
goodwill is valued at ₹1,00,000. At the time of Mukesh's admission as partner, the assets are revalued
and liabilities are reassessed as follows:
Particulars Book Revised
Value ₹ Value ₹
Plant and Machinery 25,00,000 22,50,000
Land and Building 10,00,000 50,00,000
Computer and Printers 2,00,000 1,50,000
Additional information:
I. A claim on account of Workmen Compensation is ₹2,50,000.
2. There being a claim against the firm for damages, a liability to the extent of ₹1,00,000 will be created
for the same.
3. Goodwill existed in the books at ₹2,00,000.
4. An endorsed Bill Receivable of ₹50,000 discounted with bank was dishonoured, which is to be
recorded in the books of account.
Answer the following questions based on the above formation by choosing the correct option.
Q17. The ratio in which Tarun and Bimal sacrifice their profit share is
(a) 1:4
(b) 4:1
(c) 3:2
(d) 2:3
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Q18. New Profit-sharing ratio of the partners (Tarun, Bimal, Mukesh) will be
(a) 6:5:9
(b) 5:6:9
(c) 11:4:5
(d) 9:6:5
Q19. The amount distributed between Tarun and Bimal, in respect of the Goodwill brought by Mukesh will be
(a) ₹20,000 and ₹80,000 respectively.
(b) ₹60,000 and ₹40,000 respectively.
(c) ₹50,000 and ₹50,000 respectively.
(d) ₹40,000 and ₹60,000 respectively.
Q20. The existing goodwill will be written off by debiting

(a) Current A/cs of Tarun and Bimal with ₹1,20,000 and ₹80,000 respectively.
(b) Capital A/cs of Tarun and Bimal with ₹1,20,000 and ₹80,000 respectively.
(c) Current A/cs of Tarun, Bimal and Mukesh with ₹1,10,000, ₹40,000 and ₹50,000 respectively.
(d) Capital A/cs of Tarun, Bimal and Mukesh with ₹1,10,000, ₹40,000 and ₹50,000 respectively.
Q21. If Working Capital of a company is ₹5,25,000; Total Assets are ₹20,00,000; Shareholders’ Funds are
₹7,25,000; Long-term Debts ₹5,75,000, Current Ratio of company will be
(a) 1.85 : 1.
(b) 1.55 : 1.
(c) 1.75 : 1.
(d) 1.65 : 1.
Q22. X, Y and Z have been sharing profits in the ratio of 4: 2: 1. Z retires. On Z’s retirement, X and Y take Z’s
share equally. New profit sharing ratio will be:
(a) 5: 2
(b) 5: 3
(c) 9: 5
(d) 4: 2
Q23. From the following information, calculate goodwill by capitalisation of super profits method:
Total Assets ₹10,00,000
External Liabilities ₹1,80,000
Normal rate of return 10%
Average net profits ₹1,00,000
(a) ₹2,00,000
(b) ₹3,20,000
(c) ₹1,80,000
(d) ₹2,60,000
Q24. Best Finance Ltd. a listed (NBFC) is to redeem 5,000, 10% Debentures of ₹100 each on 30th June, 2022 and
15,000, 10% Debentures on 31st December, 2022. The company should invest in specified securities
(a) ₹2,25,000 on or before 30th April, 2021.
(b) ₹2,25,000 on 30th April, 2022.
(c) ₹2,25,000 on or before 30th June, 2022.
Page |5
(d) ₹2,25,000 on or before 30th April, 2022.
Q25. Jasjeet and Ayush are partners in firm sharing profit in the ratio of 4 : 3. They admit Suresh as a new
partner. The new profit-sharing ratio is 3 : 2 : 1. The sacrificing ratio of Jasjeet and Ayush is
(a) 4 : 3
(b) 3 : 4
(c) 3 : 2
(d) 2 : 3
Direction for Question 26 to 30: Answer the given questions as per information given below.
Kaveri Ltd. was registered with an authorised capital of 40,000 equity shares of ₹100 each. It offered
30,000 equity shares to the public at a premium of ₹40 per share. The amount per share was payable as
₹30 on application; ₹70 (including premium) on allotment; and the balance on first and final call. 28,000
shares were subscribed by the public. All calls were made. A shareholder holding 1,000 shares failed to
pay the allotment and first and final call money.
Q26. Issued Capital will be:
(a) ₹27,30,000
(b) ₹30,00,000
(c) ₹42,00,000
(d) ₹28,00,000
Q27. Subscribed Capital will be:

(a) ₹27,00,000
(b) ₹28,30,000
(c) ₹28,00,000
(d) ₹27,30,000
Q28. Subscribed and Fully Paid Capital will be:

(a) ₹28,00,000
(b) ₹28,30,000
(c) ₹27,00,000
(d) ₹27,30,000
Q29. Subscribed but not Fully Paid Capital will be:

(a) ₹70,000
(b) ₹30,000
(c) ₹27,30,000
(d) ₹1,00,000
Q30. Balance of Securities Premium Reserve shown in Balance Sheet will be:
(a) ₹12,00,000
(b) ₹10,80,000
(c) ₹11,60,000
(d) ₹11,20,000
Q31. Given below are two statements one labelled as Assertion(A) and the other labelled as Reason(R):
Assertion(A): Analysis of Financial Statements helps to assess the current profitability and operational
efficiency of the business as a whole as well as its different departments.
Page |6
Reason(R): Financial Analysis considers the impact of price level changes on the business.
In the context of the above two statements which of the following is correct.
(a) Both (A) and (R) are correct and (R) is correct reason for (A)
(b) Both (A) and (R) are correct
(c) (A) is correct, but (R) is incorrect
(d) Both (A) and (R) are correct but (R) is not correct reason for (A)
Q32. Usha Ltd. issued 50,00,000 equity shares of ₹100 each at a premium of ₹30 per share. Half of the premium
amount was payable on allotment and the remaining half was payable on first call. Raja to whom 500
share were allotted failed to pay the first call and final call. His shares were forfeited. On forfeiture of
shares, the amount debited to ‘Securities Premium Reserve Account’ was:
(a) ₹7,500
(b) ₹15,000
(c) ₹50,000
(d) Nil
Q33. Amit is a partner in a firm. He withdrew regularly ₹3,000 at the end of every month for six months ending
31st March, 2021. If interest on drawings is charged @10%p.a. the interest charged will be:
(a) ₹375
(b) ₹450
(c) ₹525
(d) ₹900
Q34. The opening balance of Prize Fund was ₹1,00,000. During the year, donations received towards this fund
amounted to ₹15,400; Amount spent on prizes was ₹12,300 and interest received on prize fund
investment was ₹4,000. The closing balance of Prize Fund will be:
(a) ₹1,23,700
(b) ₹1,31,700
(c) ₹1,07,100
(d) ₹99,100
Q35. X, Y and Z are equal partners with fixed capitals of ₹5,00,000, ₹3,00,000 and ₹1,00,000 respectively.
After closing the accounts for the year ending 31st March, 2020, it was discovered that interest on
capitals was provided @6% instead of 5%p.a.. In the adjusting entry:
(a) Dr. X and Cr. Z by ₹2,000
(b) Dr. Z and Cr. X by ₹2,000
(c) Dr. X and Cr. Y by ₹2,000
(d) Dr. Y and Cr. X by ₹2,000
Q36. A and B are partners in a firm. They are entitled to interest on their capitals but the net profit was not
sufficient for this interest, then the net profit will be distributed among partners in:
(a) Agreed Ratio
(b) Profit Sharing Ratio
(c) Capital Ratio
(d) Equally
Q37. On dissolution of a firm, an unrecorded furniture of the value ₹5,000 was taken up by a partner of for
₹4,300. Which account will be credited and by how much amount?
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(a) Cash Account by ₹4,300

(b) Realisation Account by ₹700
(c) Partner’s Capital Account by ₹5,000
(d) Realisation Account by ₹4,300
Q38. A preference share which does not carry the right of sharing in surplus profits is called ________.
(a) Non-Cumulative Preference Share
(b) Non-Participating Preference Share
(c) Irredeemable Preference Share
(d) Non-Convertible Preference Share
Assertion(A): Forfeited shares may be reissued by the company at a discount also.
Reason(R): Amount of discount on reissue of forfeited shares cannot exceed the amount on forfeited
shares
(b) Both (A) and (R) are incorrect
(c) (A) is correct but (R) is incorrect
Q40. The profits earned by a business over the last 5 years are as follows: ₹12,000; ₹13,000; ₹14,000; ₹18,000
and ₹2,000 (loss). Based on 3 years purchase of last 5 years average profits, value of goodwill will be:
(a) ₹33,000
(b) ₹1,10,000
(c) ₹55,000
(d) ₹1,18,000
Answer Key
S1. Ans. (a)
3 2 3
Sol. Mohit’s gain or sacrifice = 6 − 5 = 30 (Sacrifice)
2 2 −2
Shyam’s gain or sacrifice = 6 − 5 = 30 (Gain)
1 1 −1
Naveen’s gain or sacrifice = 6 − 5 = 30 (Gain)
S2. Ans. (c)

Sol.
4 1 2
K’s gain or sacrifice = 10 − 3 = 30 (Sacrifice)
2
So K will be credited with = 30 × 9,00,000 = ₹60,000
3 1 −1
P’s gain or sacrifice = 10 − 3 = 30 (Gain)
1
So P will be debited with = 30 × 9,00,000 = ₹30,000
2
M’s sacrifice = 10 (Sacrifice)
Page |8
2
So M will be credited with = × 9,00,000 = ₹1,80,000
10
1 1 −7
G’s gain or sacrifice = 10 − 3 = 30 (Gain)
7
So G will be debited with = 30 × 9,00,000 = ₹2,10,000
S3. Ans. (b)
S4. Ans. (c)

Sol. Trade Payables are shown under Current Liabilities.
S5. Ans. (a)

5 2 3
Sol. Avi’s gain or sacrifice = − = (Sacrifice)
10 10 10
3 3
Ravi’s gain or sacrifice = − = 𝑁𝑖𝑙
10 10
2 5 −3
Chavi’s gain or sacrifice = 10 − 10 = 10 (Gain)
3
Avi has sacrificed so he will be credited by 10 × 45,000 = ₹13,500
3
Chavi has gained so she will be debited by × 45,000 = ₹13,500
10
S6. Ans. (d)

Sol. Cash flow from financing activities = 12,00,000 + 1,20,000 (Premium) + 6,00,000 – 45,000 =
₹18,75,000
S7. Ans. (c)

Sol. Company cannot proceed with allotment as minimum subscription has not been applied by public.
S8. Ans. (d)

Sol.
Realisation A/c
Particulars Amount Particulars Amount
To Assets 12,00,000 By Liabilities 6,20,000
To Bank A/c (Realisation 24,000 By Bank A/c(Assets 15,00,000
expenses) realised)
To Bank A/c (Liabilities 5,50,000
Paid)
By Partner’s Capital A/c 3,46,000
21,20,000 21,20,000
S9. Ans. (a)
S10. Ans. (a)

Sol. Closing Balance of Capital Fund = 50,00,000 + 12,00,000 = ₹62,00,000
Page |9
S11. Ans. (d)

Sol. Closing balance of sports ground fund is = 20,00,000 + 3,45,000 + 1,80,000 – 12,00,000 = ₹13,25,000
S12. Ans. (d)
S13. Ans. (c)
S14. Ans. (a)
S15. Ans. (b)
S16. Ans. (c)

Sol.
Dr. Plant and Machinery A/c Cr.
Particulars Amount (₹) Particulars Amount (₹)
To balance b/d 7,20,000 By Bank A/c (Sale 1,25,000
To Profit on sale 15,000 Proceeds)
To Bank A/c (Balancing By Depreciation A/c 85,000
figure, being purchase) 3,35,000 By Balance c/d 8,60,000
10,70,000 10,70,000
S17. Ans. (a)

Sol. Mukesh’s took 1/5 th of his share from Tarun, so he must have taken 4/5 of his share from Bimal, so
sacrificing ration will be 1 : 4.
S18. Ans. (c)

1 1 1
Sol. Tarun’s sacrifice = 4 × 5 = 20
1 4 4
Bimal’s sacrifice = 4 × 5 = 20
3 1 11
Tarun’s new share = 5 − 20 = 20
2 4 4
Bimal ’s new share = 5 − 20 = 20
So new ratio = 11 : 4 : 5
S19. Ans. (a)

Sol. Mukesh share of goodwill = ₹1,00,000
1
Tarun has sacrificed so he will get = 1,00,000 × = ₹20,000
5
4
Bimal has sacrificed so he will get = 1,00,000 × 5
= ₹80,000
P a g e | 10
S20. Ans. (b)

Sol. Existing goodwill will be written off among old partner in old ratio i.e. 3 : 2. So capital account of
Tarun will be debited by ₹1,20,000 and capital account of Bimal will be debited with ₹80,000.
S21. Ans. (c)

Sol. Current Liabilities = 20,00,000 – 7,25,000 – 5,75,000 = ₹7,00,000
Current Assets = 7,00,000 + 5,25,000 = ₹12,25,000
12,25,000
Current Ratio = 7,00,000
= 1.75:1
S22. Ans. (c)

1 1 1
Sol. X’s gain = × =
7 2 14
1 1 1
Y’s gain = 7 × 2 = 14
4 1 9
X’s new share = 7 + 14 = 14
2 1 5
Y’s new share = 7 + 14 = 14
So new ratio = 9: 5
S23. Ans. (c)

Sol. Capital Employed = 10,00,000 – 1,80,000 = ₹8,20,000
Normal Profits = 10% of ₹8,20,000 = ₹82,000
Super Profits = 1,00,000 – 82,000 = ₹18,000
100
Goodwill = 18,000 × = ₹1,80,000
10
S24. Ans. (d)

Sol. Company should invest 15% of 15,00,000 i.e. ₹2,25,000 in specified securities on or before 30th April,
2022
S25. Ans. (b)

4 3 3
Sol. Jasjeet’s sacrifice = 7 − 6 = 42
3 2 4
Ayush’s sacrifice = − =
7 6 42
Sacrificing Ratio = 3 : 4
S26. Ans. (b)

Sol. Issued capital = 30,000 × 100 = ₹30,00,000
S27. Ans. (d)

Sol. Subscribed capital:
Subscribed and fully paid up capital:
27,000 shares of ₹100 each fully called up: 27,00,000
Subscribed but not fully paid up capital:
P a g e | 11
1,000 shares of ₹100 each fully called up 1,00,000

Less: Calls in Arrears (1,000 × 70) (70,000) 30,000 27,30,000
S28. Ans. (c)

Sol. Subscribed capital:
Subscribed and fully paid up capital:
27,000 shares of ₹100 each fully called up: 27,00,000
S29. Ans. (b)

Sol. Subscribed but not fully paid up capital:
1,000 shares of ₹100 each fully called up 1,00,000
Less: Calls in Arrears (1,000 × 70) (70,000) 30,000
S30. Ans. (b)

Sol. Balance of Securities Premium Reserve = 28,000 × 40 = 11,20,000
Less: Calls in Arrears = 1,000 × 40 = (40,000)
Balance = 10,80,000
S31. Ans. (b)
S32. Ans. (a)

Sol. Amount debited to Securities Premium Reserve Account = 500 × 15 = ₹7,500
S33. Ans. (a)

10 2.5
Sol. Interest = 18,000 × × = ₹375
100 12
S34. Ans. (c)

Sol. Closing Balance of Prize Fund = 1,00,000 + 15,400 – 12,300 + 4,000 - ₹1,07,100
S35. Ans. (a)

Sol.
Table Showing Adjustment
X(₹) Y(₹) Z(₹) Total
(₹)
Interest on Capital @6% (Dr.) 30,000 18,000 6,000 54,000
Interest on Capital @5% (Cr.) 25,000 15,000 5,000 45,000
Remaining profits to be distributed
among partner in 1: 1: 1 (Cr.) 3,000 3,000 3,000 9,000
2,000 (Dr.) Nil 2,000 (Cr.) -
S36. Ans. (c)
P a g e | 12
S37. Ans. (d)
S38. Ans. (b)
S39. Ans. (a)
S40. Ans. (a)

12,000+13,000+14,000+18,000−2,000
Sol. Average Profits = 5
= ₹11,000
Goodwill = 3 × 11,000 = ₹33,000
Exam Date 28th May 2023

George, Anish and Binu are partners in a partnership firm engaged in production and trading of spices in
Cochin, Kerala, with capital contributions of ₹20,00,000, ₹30,00,000 and ₹50,00,000 respectively. Their
profit-sharing ratio was 5 : 3 : 2. As they wanted to expand their business in North lndia, they approached
one of their relatives Pulkit, who was based in Gurgaon, Haryana. Pulkit also expressed his desire to be
admitted into the partnership and ensured to manage the new branch office which was to be opened in
Gurgaon. It was agreed by the partners that Pulkit would be admitted as a partner for 1/5th share in
profits; he would bring in capital of ₹40,00,000 and ₹15,00,000 as premium for goodwill and take care of
the operations of the new office at Gurgaon.
Q1. New profit-sharing ratio of George, Anish, Binu and Pulkit will be:
(a) 1 : 1 : 1 : 1
(b) 2 : 3 : 4 : 5
(c) 5 : 3 :2 : 1
(d) 10 : 6 : 4 : 5
Q2. ln what ratio would George, Anish and Binu sacrifice their share of profits?
(a) 1 : 1 : 1
(b) 5 : 3 : 2
(c) 2 : 3 : 5
(d) 20 : 30 : 55
Q3. On admission of Pulkit, goodwill of the firm was valued at:

(a) ₹55,00,000.
(b) ₹15,00,000.
(c) ₹75,00,000.
(d) Cannot be determined from the given data.
Q4. The correct Journal entry for distribution of Premium for Goodwill brought by Pulkit would be:
(a) Pulkit's Capital A/c ...Dr. ₹15,00,000
To George's Capital A/c ₹5,00,000
P a g e | 13
To Anish's Capital A/c ₹5,00,000

To Binu’s Capital A/c ₹15,00,000
(b) Pulkit's Capital A/c ...Dr. ₹15,00,000
To Binu's Capital A/c ₹3,00,000
(c) Premium for
Goodwill A/c ...Dr. ₹15,00,000
(d) Premium for Goodwill A/c ...Dr. ₹15,00,000
Q5. Partnership Deed is made as per:

(a) Companies Act, 2013
(b) Indian Partnership Act, 1932
(c) Consumer Protection Act, 2019
(d) None of these
Q6. Aman is a partner in a firm. He withdrew regularly ₹2,000 at the middle every month for the six months
ending 31st March, 2021. If interest on drawings is charged at @8%p.a., the interest charged will be:
(a) ₹480
(b) ₹280
(c) ₹200
(d) ₹240
Q7. The goodwill of the firm is ₹1,08,000. It was valued at 4 years purchase of super profits. The capital
employed by the firm is ₹4,00,000 and the normal rate of return is 10%. The average profit of the firm are:
(a) ₹47,000
(b) ₹67,000
(c) ₹40,000
(d) ₹49,000
Q8. Common-Size Statements is also known as:

(a) Horizontal Analysis
(b) Vertical Analysis
(c) Time-Series Analysis
(d) None of these
Cello Ltd. is engaged in the manufacturing of stationery items. It wants to diversify its business so it plans
to produce some of the necessary electronic stationery items as well. It decided to start a small unit for
that it would require some automated machines along with constant supplies of raw materials at cheap
and reasonable rates. It approached some of electronics raw material suppliers and entered into the long-
term contracts. To make some advance payment to its suppliers, It took 9% Loan of ₹8,00,000 from SBI
P a g e | 14
and Issued 10,000, 9% Debentures of ₹100 each as collateral security on 1st April, 2021. And also, it took
over running business of Flair Ltd. comprising of following assets and liabilities on 1st April, 2021:
Book Value Agreed Value

Particulars (₹) (₹)
Business Premises 5,50,000 8,00,000
Plant and
Equipment 4,00,000 3,00,000
Fixture and Fitting 2,00,000 2,00,000
Inventories 1,00,000 1,40,000
Trade Receivables 1,20,000 1,00,000
Trade Payables 60,000 60,000
The payment to Flair Ltd. was made by issuing 15,000, 12% Debentures of ₹100 each at 10% discount, to
be redeemed at 20% premium at the end of five years. Based on the above information, answer the
following questions:
Q9. The entry passed in the books of Cello Ltd. on issue of 9% Debentures as collateral security would be:
(a) 9% Debentures A/c ...Dr. ₹10,00,000
To Debentures Suspense A/c ₹10,00,000
(b) Debentures Suspense A/c ...Dr. ₹8,00,000
To 9% Debentures A/c ₹8,00,000
(c) 9% Debentures A/c ...Dr. ₹8,00,000
To Debentures Suspense A/c ₹8,00,000
(d) Debentures Suspense A/c ...Dr. ₹10,00,000
To 9% Debentures A/c ₹10,00,000
Q10. The purchase consideration to Flair Ltd. would be

(a) ₹15,00,000
(b) ₹13,50,000
(c) ₹2,00,000
(d) ₹12,50,000
Q11. On purchase of business of Flair Ltd., there will be a balance of

(a) ₹1,30,000 in Goodwill Account.
(b) ₹1,00,000 in Goodwill Account.
(c) ₹1,30,000 in Capital Reserve Account.
(d) ₹1,00,000 in Capital Reserve Account.
Q12. The correct sequence in the procedure of share issue is:

A. Receipt of Applications
B.Allotment of Shares
C. Issue of Prospectus
D. Minimum Subscription
(a) A, B, D and C
(b) C, A, D and B
P a g e | 15
(c) C, B, D and A
(d) B, A, C and D
Q13. A, B and C were partners sharing profit and losses in the ratio of 2 : 2 : 1. The firm closes its books of account
on 31st March every year. C died on 5th November, 2021. As per the Partnership Deed, the executors of the
deceased partner are entitled to his share of profit up to the date of death, based on last year’s profit. Profit
for the year ended 31st March, 2021 was ₹2,64,000. C’s share of profit will be
(a) ₹52,800
(b) ₹26,400
(c) ₹1,58,400
(d) ₹31,680
Q14. Which of the following will be transferred to Realisation Account?

A. Goodwill appearing in the books at the time of dissolution of firm.
B. Unrecorded liability
C. Provision for Doubtful Debts.
D. General Reserve.
(a) D only
(b) B, C and D only
(c) B and C only
(d) A and C only
Q15. A and B are sharing profits in the ratio of 7: 3 having fixed capitals of ₹2,00,000 and ₹1,00,000
respectively. After closing the accounts for the year ending 31st March, 2021 it was discovered that
interest on capital was provided @12%p.a. instead of 10%p.a. In the adjusting entry:
(a) A will be debited by ₹400 and B will be credited by ₹400
(b) B will be debited by ₹400 and A will be credited by ₹400
(c) A will be debited by ₹200 and B will be credited by ₹200
(d) B will be debited by ₹200 and A will be credited by ₹200
Q16. A and B are partners sharing profits in the ratio of 2: 3. Their Balance Sheet shows Machinery at ₹2,00,000;
Stock at ₹80,000 and Debtors at ₹1,60,000. C is admitted as a new partner and new profit sharing ratio is
agreed as 6: 9: 5. Machinery is revalued at ₹1,40,000 and a provision is made for doubtful debts @5%. A’s
share in loss on revaluation amount to ₹20,000. Revalued value of Stock will be:
(a) ₹62,000
(b) ₹1,00,000
(c) ₹60,000
(d) ₹98,000
Q17. The following is the position of Current Assets and Current Liabilities of Mridul Ltd.
31-3-2016 31-3-2017
Provision for doubtful debts 1,000 -
Short-term loans 10,000 19,000
Creditors 15,000 10,000
Bills Payable 20,000 40,000
The company incurred a loss of ₹45,000 during the year. Calculate cash flow from Operating Activities.
(a) ₹31,000 (Outflow)
P a g e | 16
(b) ₹31,000 (Inflow)

(c) ₹25,000 (Outflow)
(d) ₹25,000 (Inflow)
Q18. When Asset is created out of specific fund, the amount incurred on creation of such asset is:
(a) Reduced from Specific Fund
(b) Added to Capital Fund
(c) Asset created is shown in the Assets side of the Balance Sheet
(d) All of the above
Q19. Muthood Finance Ltd., a listed NBFC, is to redeem 10,000, 9% debentures of ₹100 each at a premium of ₹10
out of profits. Amount that should be invested in DRI is:
(a) ₹1,50,000
(b) ₹1,00,000
(c) ₹3,00,000
(d) Nil
Assertion(A) : A company cannot make allotment of shares unless minimum subscription is received
Reason(R): As per SEBI guidelines, minimum subscription has been fixed at 85% of the issued amount
(b) Both (A) and (R) are incorrect
(c) (A) is correct but (R) is incorrect
Q21. A company issued 4,000 equity shares of ₹10 each at par payable as under:
On Application ₹3
On Allotment ₹2
On First Call ₹4
On Final Call ₹1
Applications were received for 13,000 shares. Application for 3,000 shares were rejected and pro-rate
allotment was made to applicants of 10,000 shares. How much amount will be received in cash on first
call? Excess money is adjusted towards amount due on allotment and calls.
(a) ₹6,000
(b) Nil
(c) ₹16,000
(d) ₹10,000
Q22. Debenture Application Account is in nature of:

(a) Real Account
(b) Personal Account
(c) Nominal Account
(d) None of the above
Q23. Gross Profit Ratio of a company is 25%. Cost of revenue from operations are 3/4th of revenue from
operations. If revenue from operations is ₹60,00,000, the Gross Profit of the company will be:
(a) ₹25,00,000
P a g e | 17
(b) ₹45,00,000
(c) ₹15,00,000
(d) ₹11,25,000
Q24. Which of the following is/are the features of a Not-for-Profit Organisation?

A. Not-for-Profit Organisation is a legal entity separate from its members.
B. Not-for-Profit Organisation’s profits is distributed among its members.
C. Not-for-Profit Organisation is created to further cultural, educational, religious, professional objectives
and rendering services to people at large.
D. Not-for-Profit Organisations is managed by Trustees or Managing Committee.
(a) B and C only
(b) B, C and D only
(c) A and C only
(d) A, C and D only
Q25. An effective Computerised Accounting System should be :

(a) Inaccessible, Complex, Fast
(b) Simple, Integrated, Fast, Accurate, Reliable
(c) Able to automatically assign codes to accounts
(d) Obsolete, Reliable, Fast, Accurate
Q26. Which of the following are shown as Financing Activities by a manufacturing company?
A. Issue of Bonus Shares
B. Increase in amount of Bank overdraft
C. Proceeds from Issue of Shares
D. Issue of shares against purchase of Machinery
E. Proceeds from issue of debentures
(a) A, B and C only
(b) B, C and E only
(c) A, C and E only
(d) C, D and E only
Q27. Following information has been obtained from the Statement of Profit and Loss of a Company:
Revenue from Operations ₹20,00,000; Cost of Materials Consumed ₹8,00,000; Employee Benefit Expenses
₹20,000; Finance Costs ₹5,000; Depreciation ₹25,000. Its Profit before Tax will be:
(a) ₹12,00,000
(b) ₹11,80,000
(c) ₹11,75,000
(d) ₹11,50,000
Assertion(A) : Reserve Capital and Capital Reserve are same
Reason(R): Reserve Capital is a part of Subscribed capital which the company may decide to call at the
time of winding up of the company.
(a) Both (A) and (R) are incorrect
P a g e | 18
(b) Both (A) and (R) are correct

(c) (A) is correct, but (R) is incorrect
(d) (R) is correct, but (A) is incorrect
Q29. Sun and Star were partners in a firm sharing profits in the ratio of 2 : 1. Moon was admitted as a new
partner in the firm. New profit sharing ratio was 3 : 3 : 2. Moon brought the following assets towards his
share of goodwill and his capital:
Machinery ₹2,00,000; Furniture ₹1,20,000; Stock ₹80,000; Cash ₹50,000. If his capital is considered as
₹3,80,000, the goodwill of the firm will be:
(a) ₹70,000
(b) ₹2,80,000
(c) ₹4,50,000
(d) ₹1,40,000
Q30. In case of dissolution, assets are transferred to Realisation Account:

(a) At Book Value
(b) At Market Value
(c) Cost or Market Value, whichever is lower
(d) None of the above
Q31. A company has: Working Capital ₹3,25,000; Total Debts ₹11,75,000; Current Liabilities ₹6,75,000; Fixed
Assets ₹6,50,000. Total Assets to Debt Ratio will be:
(a) 3.90: 1
(b) 3.25: 1
(c) 3.45: 1
(d) 3.05: 1
Direction for Question 32 to 35: Answer the given questions as per information given below.
Xylo Ltd. was formed on 1st April, 2018, with an authorized capital of ₹12,00,000 divided into equity shares
of ₹10 each. It invited applications for 30,000 shares to be issued at par, in the year of its formation, all of
which were subscribed for and the amount due on them fully received. On 1st April, 2020, the company
issued another 60,000 shares at a premium of ₹2 per share to be received with allotment. It received
applications for 55,000 shares which were duly allotted. All amounts due on the allotted shares was received
except the final call of ₹2 per share on 1,000 shares. The company forfeited these shares and later reissued
800 of the forfeited shares @ ₹7 per share fully called up. The Balance Sheet of the company was prepared
as at 31st March, 2021, as per Schedule III of the Company Act, 2013.
Q32. The issued capital of the company to be shown in Notes to Accounts as at 31st March, 2021, under “Share
Capital” will be:
(a) ₹12,00,000
(b) ₹9,00,000
(c) ₹8,50,000
(d) ₹8,49,600
Q33. The subscribed shares of the company at the end of the year 2020-21 will be:
(a) 1,20,000
(b) 90,000
(c) 85,000
P a g e | 19
(d) 84,800
Q34. The amount of Share Capital to be shown in the Balance Sheet of the company as at 31 st March, 2021, will
be:
(a) ₹12,00,000
(b) ₹9,00,000
(c) ₹8,50,000
(d) ₹8,49,600
Q35. The net gain made by the company on reissue of the 800 shares will be transferred to:
(a) Reserve Capital Account
(b) Capital Reserve Account
(c) Securities Premium Reserve Account
(d) Statement of Profit and Loss
Q36. Rajesh and Vikram are partner sharing profits and losses in the ratio of 3 : 2. They admitted Varun as new
partner. Rajesh surrendered 2/5th of his share and Vikram sacrificed 1/5th of his share in favour of Tarun.
The sacrificing ratio will be:
(a) 3 : 5
(b) 2 : 3
(c) 1 : 3
(d) 3 : 1
Q37. Which of the following statements is/are not correct?

(i) Goodwill is the present value of the firm’s anticipated excess earnings.
(ii) Goodwill is a fictitious asset.
(iii) Goodwill is an intangible asset.
(iv) Goodwill is affected by the location of the business.
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (iii)
(d) Only (iv)
Q38. Total Assets to Debt Ratio of Max Ltd. is 2.5 : 1. Debt is ₹7,80,000. Equity Share Capital is 0.5 times of Debt.
Preference Share Capital is 25% of Equity Share Capital. Net Profit before Tax is ₹10,00,000 and rate of tax
is 40%, Proprietary Ratio will be
(a) 0.56 : 1.
(b) 0.65 : 1.
(c) 0.45 : 1.
(d) 0.55 : 1.
Q39. Those liabilities which may or may not arise as they are dependent on occurrence or non-occurrence of an
event in the future is called
(a) Current Liabilities
(b) Provisions
(c) Reserves and Surplus
(d) Contingent Liabilities
P a g e | 20
Q40. ABC Mutual Fund Company received a dividend of ₹8,00,000 on shares held as inventory in another
company’s shares. While preparing Cash Flow Statement it will be classified as
(a) Inflow under Cash Flow from Operating Activities.
(b) Inflow under Cash Flow from Investing Activities.
(c) Inflow under Cash Flow from Financing Activities.
(d) Inflow under Cash and Cash Equivalents.
Answer Key
S1. Ans. (d)
5 4 10
Sol. New share of George = 10 × 5 = 25
3 4 6
New share of Anish = 10 × 5 = 25
2 4 4
New share of Binu = 10 × 5 = 25
So new ratio = 10 : 6 : 4 : 5
S2. Ans. (b)

Sol. Sacrificing ratio will be same as their old profit sharing ratio .
S3. Ans. (c)

5
Sol. Goodwill of firm on Pulkit’s admission = × 15,00,000 = ₹75,00,000
1
S4. Ans. (d)

Sol. Sacrificing ratio is 5 : 3 : 2
5
So George will be credited with = 10 × 15,00,000 = ₹7,50,000
3
So Anish will be credited with = × 15,00,000 = ₹4,50,000
10
2
So Binu will be credited with = 10
× 15,00,000 = ₹3,00,000
S5. Ans. (b)
S6. Ans. (d)

8 3
Sol. Interest on Drawings = 12,000 × 100 × 12
= ₹240
S7. Ans. (b)

1,08,000
Sol. Super profits = = ₹27,000
4
Normal Profits = 10% of 4,00,000 = ₹40,000
Average Profits = 40,000 + 27,000 = ₹67,000
S8. Ans. (b)
S9. Ans. (d)
S10. Ans. (b)
P a g e | 21
Sol. Purchase consideration = 15,000 × 90 = ₹13,50,000
S11. Ans. (c)
S12. Ans. (b)
S13. Ans. (d)

1 219
Sol. C’s share of profit = 2,64,000 5 × 365 = ₹31,680
S14. Ans. (d)
S15. Ans. (d)

Sol.
Table Showing Adjustment
A(₹) B(₹) Total(₹)
Interest on Capital @12% (Dr.) 24,000 12,000 36,000
Interest on Capital @10% (Cr.) 20,000 10,000 30,000
Remaining amount to be distributed in 7: 3
(36,000 – 30,000) (Cr.) 4,200 1,800
200 (Cr.) 200 (Dr.)
S16. Ans. (d)

5
Sol. Total Loss on revaluation = 20,000 × 2 = ₹50,000
Dr. Revaluation A/c Cr.
Particulars (₹) Particulars (₹)
To Machinery 60,000 By Stock (Balancing figure) 18,000
To Provision for Doubtful Debts 8,000 By Loss on Revaluation 50,000
68,000 68,000
So revalued value of stock = 80,000 + 18,000 = ₹98,000
S17. Ans. (a)

Sol. Net loss for the year (45,000)
Less: Decrease in provision for doubtful debts (1,000)
Operating Profit before working capital changes (46,000)
Add: Increase in Bills Payables 20,000
(26,000)
Less: Decrease in Creditors (5,000)
Net Cash used in operating activities (31,000)
S18. Ans. (d)
S19. Ans. (a)

Sol. Amount to be invested in DRI = 15% of 10,00,000 = ₹1,50,000
S20. Ans. (c)
S21. Ans. (a)
P a g e | 22
Sol. Amount to be received by company on 4,000 shares till first call = 4,000 × 9 = ₹36,000
Less: Amount received on 10,000 shares to whom pro-rata allotment has been done = (30,000)
Amount received on first call = 36,000 – 30,000 = ₹6,000
S22. Ans. (b)
S23. Ans. (c)

Sol. Cost of revenue from operations =3/4 of 60,00,000 = ₹45,00,000
Gross profit = 60,00,000 – 45,00,000 = ₹15,00,000
S24. Ans. (d)
S25. Ans. (b)
S26. Ans. (b)
S27. Ans. (d)

Sol. Profit before Tax = 20,00,000 – 8,00,000 – 20,000 – 5,000 – 25,000 = ₹11,50,000
S28. Ans. (d)
S29. Ans. (b)

Sol. Amount of goodwill brought by Moon = 2,00,000 + 1,20,000 + 80,000 + 50,000 – 3,80,000 = ₹70,000
8
Goodwill of firm = 70,000 × 2 = ₹2,80,000
S30. Ans. (a)
S31. Ans. (b)

Sol. Current Assets = 3,25,000 + 6,50,000 = ₹9,75,000
Total Assets = 9,75,000 + 6,50,000 = ₹16,25,000
Debt = 11,75,000 – 6,75,000 = 5,00,000
16,25,000
Total Assets to Debt Ratio = 5,00,000 = 3.25 : 1
S32. Ans. (b)

Sol. Issued Capital = 90,000 × 10 = ₹9,00,000
S33. Ans. (d)

Sol. Subscribed shares of the company at the end year = 85,000 – 1,000 + 800 = ₹84,800
S34. Ans. (d)

Sol. Subscribed and fully paid up
84,800 shares of ₹10 each fully paid up 8,48,000
Add: Share Forfeiture Account 1,600
(₹8 per share received on 200 unissued shares)
Total 8,49,600
S35. Ans. (b)
P a g e | 23
S36. Ans. (d)

3 2 6
Sol. Rajesh’s sacrifice = 5 × 5 = 25
2 1 2
Vikram’s sacrifice = 5 × 5 = 25
So sacrificing ratio = 6 : 2 = 3 : 1
S37. Ans. (b)
S38. Ans. (a)

Sol. Equity share capital ½ of 7,80,000 = ₹3,90,000
Preference Share Capital = 25% of 3,90,000 = ₹97,500
Surplus in Statement of P and L = ₹6,00,000
Equity = 6,00,000 + 97,500 + 3,90,000 = ₹10,87,500
Total Assets = 2.5 × 7,80,000 = ₹19,50,000
10,87,500
Proprietary Ratio = 19,50,000 = 0.56 :1
S39. Ans. (d)
S40. Ans. (a)
P a g e | 24

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Chemistry

CUET 2023 EXAMS

1. You have 60 Minutes to complete the test.

4. There is a penalty of 1 mark for each wrong answer.

5. You can change your answer by clicking on some other option.

To Attempt these Questions as Mock Test Click on the Links

CUET MBT-Accountancy (Exam Date-25 May 2023) https://dl.adda247.com/mQDr

Exam Date 25th May 2023

Sports Ground Fund as on 1st April, 2021 20,00,000

Q10. Closing Balance of Capital Fund is

Q11. Closing Balance of Sports Ground Fund is

C. Calls-in-Advance III. Current Assets

Q20. The existing goodwill will be written off by debiting

(d) ₹2,25,000 on or before 30th April, 2022.

Q27. Subscribed Capital will be:

Q28. Subscribed and Fully Paid Capital will be:

Q29. Subscribed but not Fully Paid Capital will be:

(a) Cash Account by ₹4,300

S2. Ans. (c)

S3. Ans. (b)

S4. Ans. (c)

S5. Ans. (a)

S6. Ans. (d)

S7. Ans. (c)

S8. Ans. (d)

S9. Ans. (a)

S10. Ans. (a)

S11. Ans. (d)

S12. Ans. (d)

S13. Ans. (c)

S14. Ans. (a)

S15. Ans. (b)

S16. Ans. (c)

S17. Ans. (a)

S18. Ans. (c)

S19. Ans. (a)

S20. Ans. (b)

S21. Ans. (c)

S22. Ans. (c)

S23. Ans. (c)

S24. Ans. (d)

S25. Ans. (b)

S26. Ans. (b)

S27. Ans. (d)

1,000 shares of ₹100 each fully called up 1,00,000

S28. Ans. (c)

S29. Ans. (b)

S30. Ans. (b)

S31. Ans. (b)

S32. Ans. (a)

S33. Ans. (a)

S34. Ans. (c)

S35. Ans. (a)

S36. Ans. (c)

S37. Ans. (d)

S38. Ans. (b)

S39. Ans. (a)

S40. Ans. (a)

Exam Date 28th May 2023

Q3. On admission of Pulkit, goodwill of the firm was valued at:

To Anish's Capital A/c ₹5,00,000

Q5. Partnership Deed is made as per:

Q8. Common-Size Statements is also known as: