NTA CUET (UG) 10 Mock Test Sample Question Papers Accountancy (2024) 9789357288071, 9357288074

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For 2024 Exam

BEST SELLER

ACCOUNTANCY Section II (Domain Specific Subject) Strictly ar per the Latest Examination Pattern issued by NTA

The ONLY book you need to Ace CUET (UG)

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2

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100% Exam Readiness

Extensive Practice

Concept Clarity

Valuable Exam Insights

With 10 Solved Sample Question Papers

With 650+ NCERT - based MCQs

With 450+ Explanations & Smart Answer Keys

With Latest Solved Paper 2023

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3rd EDITION

ISBN SYLLABUS COVERED

YEAR 2023-24 “9789357288071”

CUET (UG) CERTIFICATE OF COMMON UNIVERSITY ENTRANCE TEST

PUBLISHED BY

COPYRIG HT

RESERVED BY THE PUBLISHERS

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without written permission from the publishers. The author and publisher will gladly receive information enabling them to rectify any error or omission in subsequent editions.

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This book is published by Oswaal Books and Learning Pvt Ltd (“Publisher”) and is intended solely for educational use, to enable students to practice for examinations/tests and reference. The contents of this book primarily comprise a collection of questions that have been sourced from previous examination papers. Any practice questions and/or notes included by the Publisher are formulated by placing reliance on previous question papers and are in keeping with the format/pattern/ guidelines applicable to such papers. The Publisher expressly disclaims any liability for the use of, or references to, any terms or terminology in the book, which may not be considered appropriate or may be considered offensive, in light of societal changes. Further, the contents of this book, including references to any persons, corporations, brands, political parties, incidents, historical events and/or terminology within the book, if any, are not intended to be offensive, and/or to hurt, insult or defame any person (whether living or dead), entity, gender, caste, religion, race, etc. and any interpretation to this effect is unintended and purely incidental. While we try to keep our publications as updated and accurate as possible, human error may creep in. We expressly disclaim liability for errors and/or omissions in the content, if any, and further disclaim any liability for any loss or damages in connection with the use of the book and reference to its contents”.

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Preface National Testing Agency (NTA) has been established in November 2017 under the Societies Registration Act (1860) by the Ministry of Education as a premier, specialist, autonomous, and self-sustained testing organization to conduct entrance examinations for admission/fellowship in higher educational institutions. The Common University Entrance Test (CUET (UG) - 2022) is being introduced for admission into all UG Programmes in all Central Universities for the academic session 2023 under the Ministry of Education, (MoE). The Common University Entrance Test (CUET) will provide a common platform and equal opportunities to candidates across the country, especially those from rural and other remote areas, and help establish a better connection with the Universities. A single examination will enable the Candidates to cover a wide outreach and be part of the admissions process to various Central Universities. CUET – UG Computer Based Test (CBT) for the Central Universities is to be conducted by the National Testing Agency (NTA). The curriculum for CUET is based on the National Council of Educational Research and Training (NCERT) syllabus for class 12 only. CUET scores are mandatorily required while admitting students to undergraduate courses in 44 central universities. A merit list will be prepared by participating Universities/organizations. Universities may conduct their individual counselling on the basis of the scorecard of CUET (UG)-2023 provided by NTA.

A few benefits of studying from Oswaal Sample Question Papers • • • •

100% Exam Readiness With 10 Solved Sample Question Papers Extensive Practice With 650+ NCERT - based MCQs Concept Clarity With 450+ Explanations & Smart Answer Keys Valuable Exam Insights With Latest Solved Papers 2023

Our Heartfelt Gratitude! Finally, we would like to thank our authors, editors, and reviewers. Special thanks to our students who send us suggestions and constantly help improve our books. We promise to always strive towards ‘Making Learning Simple’ for all of you. Wish you all Happy Learning!

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-Team Oswaal Books

Oswaal Expert Tips toinCrack Oswaal Books ExpertBooks Tips to Crack CUET (UG) the First A empt CUET (UG) in the First Attempt Excited about your UG but unsure if you will get admission to your preferred university? In a major announcement by the chairman of the University Grants Commission, the Naonal Tesng Agency will be conducng the Common Universies Entrance Test (CUET (UG) 2022) for undergraduate programs in Central Universies for the upcoming academic session. However, the UGC Chairperson also stated that CUET (UG) will not just be limited to admissions to Central Universies. Many prominent private universies have indicated that they would also like to adopt a common entrance exam for undergraduate admissions and take admissions on the basis of CUET (UG) scores. This makes CUET (UG) a very important examinaon in itself and hence it becomes mandatory to be aware of the ps & tricks that could help you ace the exam on the first a† empt.

The first step is to understand The pa† ern of the examinaon. CUET includes three secons, secon 1 includes queson based on languages, secon 2 includes 27 domain-based subjects and secon 3 includes General Test. The syllabus of the upcoming Common University Entrance Test, CUET 2022, will be completely based on the syllabus of class 12 th . No queson will be asked from class 11th syllabus.

While preparing for the exam, it is i m p o r t a n t t o i d e n f y t h e important topics and pracce important quesons from those t o p i c s . P r a c c e i m p o r t a n t q u e s o n s t h r o u g h O s w a a l Q u e so n B a n k a n d S a m p l e Q u e s o n P a p e r s , L i s n g topics also helps in idenfying the weak areas that need special effort and me. The aspirants can start preparing to focus on the areas that they consider to be tough, followed by the ones that are their strengths.

Devote a sufficient amount of me to all the secons of the examinaons. This requires a wellmade plan and an honest adherence to the said plan. Priorize the most important topics or the topics that the aspirants are not familiar with to be able to master them in me.

Make a habit of preparing notes f ro m t h e b e g i n n i n g o f t h e preparaon. It will not only help in making the study systemac but also make the revision of the syllabus easy even when you might have limited me to revise.

Collecng and preparing from the appropriate study material cannot be ignored as irrelevant. The books chosen by the aspirants to study from should be on the lines of the current syllabus and the ones that could help you with swi• revision before the examinaon.

Make sure to revise as much as possible. The revision will help the aspirants in keeping the concepts fresh in their minds unl the day of the final examinaons. They may refer to a few good pracce quesons and concise revision notes to achieve their desired results.

With this said, an important queson that is gaining ground amongst students who will be appearing for this exam is if they should take coaching to get themselves ready for the exams. The answer is a simple no, the exam will simply not require any coaching as it is completely based on the Class 12th syllabus which will be quite fresh in students' minds as they will be just out of school. All they need is a good revision and pracce of quesons from Oswaal Queson Bank and Sample Queson Papers for CUET (UG) preparaons.

Contents l Oswaal Books Expert Tips to Crack CUET (UG) in the First Attempt l Latest Syllabus l CUET Solved Paper, 2023 (29th May 2023)



4 - 4

7 - 9

13 - 23

Sample Question Papers

1 - 4 5 - 8 9 - 12 13 - 16 17 - 20 21 - 24 25 - 29 30 - 33 34 - 37 38 - 41

l Sample Question Paper - 1 l Sample Question Paper - 2 l Sample Question Paper - 3 l Sample Question Paper - 4 l Sample Question Paper - 5 l Sample Question Paper - 6 l Sample Question Paper - 7 l Sample Question Paper - 8 l Sample Question Paper - 9 l Sample Question Paper - 10

Solutions 42 - 44 45 - 47 48 - 50 51 - 53 54 - 56 57 - 59 60 - 63 64 - 66 67 - 69 70 - 72

l Sample Question Paper - 1 l Sample Question Paper - 2 l Sample Question Paper - 3 l Sample Question Paper - 4 l Sample Question Paper - 5 l Sample Question Paper - 6 l Sample Question Paper - 7 l Sample Question Paper - 8 l Sample Question Paper - 9 l Sample Question Paper - 10 

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Positive Affirmations

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Latest Syllabus ACCOUNTANCY - 301 Note: There will be one Question Paper which will have 50 questions out of which 40 questions need to be attempted. Accounting for Not-for-Profit Organisations and Partnership Firms Unit I: Accounting Not-for-Profit Organisation • Not-for-profit organization: Meaning and Examples. • Receipts and Payments: Meaning and Concept of fund-based and non-fund-based accounting. • Preparation of Income and Expenditure Account and Balance sheet from receipt and payment account with additional information. Unit II: Accounting for Partnership • Nature of Partnership Firm: Partnership deed (meaning, importance). • Final Accounts of Partnership: Fixed v/s Fluctuating capital, Division of profit among partners, Profit, and Loss Appropriation account. Unit III: Reconstitution of Partnership Changes in profit sharing ratio among the existing partners – Sacrificing ratio and Gaining ratio. • Accounting for Revaluation of Assets and Liabilities and Distribution of reserves and accumulated profits. • Goodwill: Nature, Factors affecting and Methods of valuation: Average profit, Super profit, Multiplier, and Capitalisation methods. • Admission of a Partner: Effect of admission of a partner, Change in profit sharing ratio, the Accounting treatment for goodwill, Revaluation of assets and liabilities, Reserves (accumulated profits), and Adjustment of capitals. • Retirement/Death of a Partner: Change in profit sharing ratio, Accounting treatment of goodwill, Revaluation of assets and liabilities, Adjustment of accumulated profits (Reserves). Unit IV: Dissolution of Partnership Firm • Meaning, Settlement of accounts: Preparation of realization account and related accounts (excluding piecemeal distribution, sale to a company and insolvency of a Spartner) Company Accounts and Financial Statement Analysis Unit V: Accounting for Share and Debenture Capital • Share Capital: Meaning, Nature and Types. • Accounting for Share Capital: Issue and Allotment of Equity and Preference Shares; Over subscription and Under subscription; Issue at par, premium and at discount; Calls in advance, Calls in arrears, Issue of shares for consideration other than cash.

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Contd... • Forfeiture of Shares: Accounting treatment, Re-issue of forfeited shares. • Presentation of shares and Debentures Capital in the company’s balance sheet. • Issue of Debenture – At par, premium, and discount; Issue of debentures for consideration other than cash. • Redemption of the debenture. • Out of proceeds of fresh issue, accumulated profits, and sinking fund. Unit VI: Analysis of Financial Statements • Financial Statements of a Company: Preparation of simple financial statements of a company in the prescribed form with major headings only. • Financial Analysis: Meaning, Significance, Purpose, Limitations. • Tools for Financial Analysis: Comparative statements, Common size statements. • Accounting Ratios: Meaning and Objectives, Types of ratios:

Liquidity Ratios : Current ratio, Liquidity ratio.



Solvency Ratio : Debt to equity, Total assets to debt, Proprietary ratio.



Activity Ratio



Profitability Ratio: Gross profit, Operating ratio, Net profit ratio, Return on Investment, Earning per Share, Dividend per Share, Profit Earning ratio.

: Inventory turnover, Debtors turnover, Payables turnover, Working capital turnover, Fixed assets turnover, Current assets turnover.

Unit VII: Statement of Changes in Financial Position • Cash Flow Statement: Meaning and Objectives, Preparation, Adjustments related to depreciation, dividend and tax, sale and purchase of non-current assets (as per revised standard issued by ICAI). Computerized Accounting System Unit I: Overview of Computerised Accounting System • Concept and Types of Computerised Accounting System (CAS). • Features of a Computerised Accounting System. • Structure of a Computerised Accounting System. Unit II: Using Computerised Accounting System • Steps in the installation of CAS, Preparation of chart of accounts, Codification, and Hierarchy of account heads. • Data entry, Data validation, and Data verification. • Adjusting entries, Preparation of financial statements, Closing entries, and Opening entries. • Security of CAS and Security features are generally available in CAS (Students are expected to understand and practice the entire accounting process using an accounting package.)

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Contd... Unit III: Accounting Using Database Management System (DBMS) • Concepts of DBMS.Objects in DBMS: Tables, Queries, Forms, Reports. • Creating data tables for accounting. • Using queries, forms, and reports for generating accounting information. Applications of DBMS in generating accounting information such as shareholders’ records, sales reports, customers’ profiles, suppliers’ profiles payroll, employees’ profiles, and petty cash registers. Unit IV: Accounting Applications of Electronic Spreadsheet • Concept of an Electronic Spreadsheet (ES). • Features offered by Electronic Spreadsheet. • Applications of Electronic Spreadsheet in generating accounting information, preparing depreciation schedules, loan repayment schedules, payroll accounting, and other such company. 

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Be mindful. Be grateful. Be positive. Be true. Be kind Three things that make you special

Three people you are grateful for and why

Three simple things you are grateful for

A challenging experience that made you stronger

Three ways to inject gratitude into a current challenge

Describe the last time you did something nice for someone

A fear you have overcome

Three activities you enjoy most and why

What made you smile today?

Three things you love about your family

What is your favorite place, and why?

Three things you love most about yourself

The last time you were overcome with joy

A risk you are grateful you took and why

Three everyday items you are grateful for

Three songs that bring you joy

What skill do you have that you are grateful for and why?

One luxury you are thankful for

Describe a rejection you are grateful for

Three things about your body you are grateful for

What are you most grateful for in your daily life?

Three things you are grateful for about where you live

Three items in your home you are grateful for

Say thank you to someone

Something in nature you are grateful for

A person in your past you are grateful for

Something at school you’re grateful for

Describe the last time you laughed so hard you cried

What is your proudest accomplishment?

Three things you want to manifest

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Metro Books Corner, 9431647013, Alka Book Agency, 9835655005, Vikas Book Depot, 9504780402

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M/s Pragnya, 9437943777

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Kitab Ghar, 9425226528, Shri Ramdev Traders, 9981761797

PUNJAB JALANDHAR

Cheap Book Store, 9872223458, 9878258592

DELHI

RAJASTHAN

DELHI

Singhania Book & Stationer, 9212028238, Radhey Book depot, 9818314141, The KOTA Book Shop, 9310262701, Mittal Books, 9899037390, Lov Dev & Sons, 9999353491

Vardhman Book Depot, 9571365020, Raj Traders, 9309232829

NEW DELHI

Anupam Sales, 9560504617, A ONE BOOKS, 8800497047

JAIPUR

HARYANA AMBALA

BOKARO

Goyal Book Distributors, 9414782130

UTTAR PRADESH

Bharat Book Depot, 7988455354

AGRA

BHAGWATI BOOK STORE, 9149081912, Sparsh Book Agency, 9412257817, Sanjay Publication, 8126699922

JHARKHAND

ALIGARH

New Vimal Books, 9997398868

Bokaro Student Friends Pvt. Ltd, 7360021503

ALLAHABAD

Mehrotra Book Agency, (532) 2266865, 9415636890

MADHYA PRADESH

GORAKHPUR

Central Book House, 9935454590

INDORE

Bhaiya Industries, 9109120101

KANPUR

Raj Book Dist, 9235616506

CHHINDWARA

Pustak Bhawan, 9827255997

LUCKNOW

Azad Book Depot PVT LTD, 7317000250, Rama Book Depot(Retail), 7355078254 Ashirwad Book Depot , 9235501197, Book Sadan, 8318643277, Book.com , 7458922755, Sheetla Book Agency, 9235832418

MAHARASHTRA

PRAYAGRAJ

Format Center, 9335115561, Garg Brothers Trading & Services Pvt. Ltd., 7388100499

Laxmi Pustakalay and Stationers, (0712) 2727354

PUNE

Pragati Book Centre, 9850039311

MUMBAI

New Student Agencies LLP, 7045065799

ODISHA BARIPADA

UTTAR PRADESH DEHRADUN

Inder Book Agancies, 9634045280

WEST BENGAL KOLKATA

Trimurti Book World, 9437034735

( 12 )

Bijay Pustak Bhandar Pvt. Ltd., 8961260603, Saha Book House, 9674827254 United Book House, 9831344622, Techno World, 9830168159

0808

NAGPUR

CUET (UG) Exam Paper 2023 National Testing Agency Held on 29th May 2023

ACCOUNTANCY Solved

(This includes Questions pertaining to Domain Specific Subject only)

Max. Marks : 200

Time allowed : 45 Minutes

General Instructions:

(i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted . 1. On R’s retirement, the amount payable to him after all adjustments, work out to be ` 60,000 but the remaining partners P and Q agreed to pay him `  75,000 in full settlement of his claim. Identify the term which represent ` 15,000 extra, that is paid to R. (1) Share in Profits (2) Hidden Goodwill (3) Interest on his Capital (4) Compensation for Past work Ans. Option (2) is correct. Explanation: Hidden Goodwill is an intangible asset that is not recorded on the books of the partnership but is recognized when there is an agreement among the remaining partners to pay more than the calculated amount in full settlement of a retiring partner's claim. In this case, the extra ` 15,000 paid to R is over and above his calculated claim of ` 60,000, which indicates the presence of hidden goodwill in the partnership. 2. Identify the term that is used to show the amount received as per the will of a deceased person. (1) Specific Donations (2) Life membership fees (3) Subscription (4) Legacies Ans. Option (4) is correct. Explanation: Specific Donation is the donation received for a particular purpose like building, swimming pool, rest room etc. Life Membership Fees is the fees paid by the members in lump sum pertaining to their lifetime membership. Subscription is the amount paid by the members periodically so that their membership continues. Legacies is the amount received from the family of a deceased member as per the will. 3. Identify that account to which share of profit of a deceased partner is debited from the date of the last Balance Sheet to the date of his/her death. (1) His capital account (2) Profit and loss account

(3) Profit and Loss Suspense account (4) Trading account Ans. Option (3) is correct. Explanation: The share of profit of a deceased partner until the date of his/her death is debited to the Profit and Loss Suspense Account. This adjustment is made to keep the partner's share of profit separate until it is distributed among the legal heirs or beneficiaries according to the terms of the partnership agreement or the deceased partner's will. 4. Find out cash flow form financing Activities from the following information. Issue of Equity Shares Redemption of Preference Shares Interim Dividend Paid Interest on Debentures Issue of Debentures (1) Inflow ` 80,000 (3) Inflow ` 40,000 Ans. Option (3) is correct.

` 80,000 ` 30,000 ` 25,000 ` 15,000 ` 30,000

(2) Outflow ` 80,000 (4) Qutflow ` 40,000

Explanation: Cash Flow Statement (Extract) Particulars III. Cash flow from Financing Activities: Proceeds from the Issue of Shares Proceeds from the Issue of Debentures Redemption of Preference Shares Interim Dividend paid Interest on Debentures Cash Inflow from Financing Activities

Amount (`)

Amount (`)

80,000 30,000 (30,000) (25,000) (15,000) 40,000

14

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

5. A, B, and C are partners with equal profit sharing ratio. Their fixed capitals are ` 30,000, ` 25,000 and ` 30,000 respectively. C decided to take retirement. A and B decided to continue the partnership firm and change their profit sharing ratio into Capital Ratio. What is the gaining ratio of A and B? (1) 6 : 5 (2) 1 : 1 (3) 7 : 4 (4) 3 : 2 Ans. Option (3) is correct. Explanation: New Ratio of A : B = 30,000 : 25,000 = 6 : 5 Old Ratio of A : B : C = 1 : 1 : 1 Gaining Ratio = New Ratio – Old Ratio For A :

6 1 18 − 11 7 = − = 11 3 33 33

For B :

5 1 15 − 11 4 = − = 11 3 33 33

Gaining Ratio of A : B = 7 : 4 6. Out of the following when will the need for valuation of goodwill does not arise: (1) Admission of a partner (2) Retirement of a partner (3) Dissolution of partnership firm (4) Death of a partners Ans. Option (3) is correct. Explanation: In the event of dissolution, the need for valuation of goodwill does not arise because there is no business to carry forward and no goodwill to be transferred to any continuing entity. Goodwill is typically realized and distributed among the partners when a partnership is continuing, such as in the case of admission, retirement, or death of a partner. 7. Which command reverse the last action performed in the worksheet? (1) Ctrl + Z (2) Ctrl +P (3) Ctrl + Y (4) Ctrl +C Ans. Option (1) is correct. Explanation: Ctrl + Z is the shortcut key for undo, that is reversing the last performed action. Ctrl + P is the shortcut key for printing the sheet. Ctrl + Y is the shortcut key to copy the last written sentence. Ctrl + C is to copy the selected word or sentence. 8. In which of the following case, claim is valid if the partnership agreement is silent? (1) Sanjay is an active partner and wants a salary of ` 1,00,000 per year. (2) Monika had advanced a loan to the firm and claims interest @10% per annum. (3) Sanjay and Monika contributed `  2,00,000 and ` 5,00,000 as capital respectively and Monika wants equal share. (4) Monika wants interest on capital to be credited @ 10% per annum. Ans. Option (3) is correct.

Explanation: In the absence of partnership deed, the partner cannot claim salary, interest on loan is charged at 6%, and the interest on capital can also be not charged. In the absence of the deed, the partners need to share profits and losses equally irrespective of the capital contributed by them. 9. Read the following facts about admission of a partner. A. A new partner acquires his share from the old partners that reduces the old partners share in profits. B. The partnet's capital must be adjusted so as to be proportionate to their new profit sharing ratio. C. Assets and Liabilities may be revalued and reassessed on admission of a partner. D. Adjustment for Reserves and Accumulated profits/ loss is done. E. Profit sharing ratio of existing partners may change on admission of a new partner. Choose the correct answer from the options given below: (1) A, B, C and D only (2) B, C, D and E only (3) C, D and E only (4) A, C, D and E only Ans. Option (4) is correct. Explanation: Statement B is wrong as it is not necessary for the partners to adjust their capital in proportion to their new profit-sharing ratio. 10. Identify the ratio which is not computed for evaluating solvency of the business. (1) Debt-Equity Ratio (2) Proprietary Ratio (3) Operating Ratio (4) Interest Coverage Ratio Ans. Option (3) is correct. Explanation: Operating Ratio is a measure of operational efficiency and is used to assess the company's ability to manage its operating expenses in relation to its net sales. 11. A company can buy its own shares when: (1) The debt-equity ratio is not more than 1 : 1 after the buy back. (2) The amount of buy back shares in any financial year not exceeding 20% of the paid-up capital and free reserves. (3) Partly paid up shares are considered buy back. (4) Article of Association must authorise and special resolution has been passed for the buy back of shares. Ans. Option (4) is correct. Explanation: A company can buy its own shares only when it is authorized to do so by its Articles of Association. Additionally, a special resolution must be passed by the shareholders approving the buyback of shares. The other options listed (1, 2, and 3) are not directly related to the conditions required for a company to buy back its own shares.

CUET Board Paper 2023 12. From the following, identify the items which are payable to retiring partner, if mentioned in deed: A. Credit balance of his/her Capital/Current Account B. Share of goodwill C. Goodwill of the firm D. Share in revaluation gain/loss E. Share in accumulated profits (Reserves) Choose the correct answer from the options given below: (1) A, B only (2) A, B, D, E only (3) B, C, D, E only (4) A, C, D, E only Ans. Option (2) is correct. Explanation: The Goodwill of the firm is not payable to the retiring partner, only the share of the retiring partner as per his/her profit-sharing ratio is given to the partner. 13. W Ltd. has given you following information: Machinery (opening balance) ` 50,000 Machinery (closing balance) ` 60,000 Accumulated Depreciation (opening balance) ` 25,000 Accumulated Depreciation (closing balance) ` 15,000 During the year, a machine costing ` 25,000 with accumulated depreciation of ` 15,000 was sold for `  13,000. Calculate Cash Flow from Investing Activity: (1) 22,000 (2) (22,000) (3) (35,000) (4) 13,000 Ans. Option (2) is correct. Explanation: Dr. Date

In the books of W Ltd. Machinery Account

Particulars

J. Amount F. (`)

Date

Particulars

Cr. J. Amount F. (`)

To Balance b/d

50,000

By Bank A/c

13,000

To Profit on sale of Machinery A/c

3,000

By Accumulated Depreciation A/c

15,000

To Bank A/c (Balancing Figure)

35,000

By Balance c/d

60,000

88,000

88,000

Cash Flow from Investing Activities = ` 13,000 − ` 35,000 = − ` 22,000 14. Match List I with List II: (A) (B) (C)

(D)

List -I Loss on Revaluation Profit on Revaluation Premium brought by new partner On the death of a partner, profit till the date of death is ` 2,000

(I) (II) (III)

(IV)

List - II Credited to old partners in old ratio Debited to Profit and Loss Suspense A/c Credited to old partners in sacrificing ratio Debited to old partners in the old ratio

15

Choose the correct answer from the options given below: (1) (A)-(I), (B)-(IV), (C)-(III), (D)-(II) (2) (A)-(IV), (B)-(I), (C)-(III), (D)-(II) (3) (A)-(II), (B)-(II, (C)-(IV), (D)-(III) (4) (A)-(III), (B)-(II), (C)-(IV), (D)-(I) Ans. Option (2) is correct. Explanation: Loss of revaluation is debited to old partner’s capital account in the old profitsharing ratio. Profit on revaluation is credited to the old partner’s capital account in their old profit-sharing ratio. Premium for goodwill brought by the new partner is shared by the old partner in the sacrificing ratio and so is transferred to the old partner’s capital accounts by crediting it. On the death of a partner profit till the date of death is to be debited to the profit and loss suspense account. 15. Identify those debentures on which no interest will be paid/provided. (1) Debentures issued to underwriters (2) Debentures issued for cash (3) Debentures issued to vendor (4) Debentures issued as collateral security Ans. Option (4) is correct. Explanation: The term ‘collateral security’ implies additional security given for a loan. Where a company obtains a loan from a bank or insurance company and the security offered to the company is not sufficient, the company may issue its own debentures to the lender as collateral security against the loan. In such a case, the lender has the absolute right over the debentures until and unless the loan is repaid. On repayment of the loan, however, the lender is legally bound to release the debentures forthwith. But in case, the loan is not repaid by the company on the due date or in the event of any other breach of agreement, the lender has the right to retain these debentures and to realize them. The lender is entitled to interest only on the amount of loan, but not on the debentures issued as collateral security. 16. Complete the sequence where interest on capital has to be provided as per partnership deed, but available profits are not sufficient to provide full amount of interest on capital. A. If it is appropriation, calculate interest on capital for all partners at given rate B. Divide the available amount in the capital ratio among the partners C. Calculate ratio between capital of partners D. Consider the partnership deed and decide whether interest on capital is a charge or an appropriation E. Consider the available profit Choose the correct answer from the options given below: (1) A, B, C, D, E (2) B, C, D, E, A (3) D, A, E, C, B (4) C, D, A, B, E Ans. Option (3) is correct.

16

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY Explanation: The sequence where interest on capital has to be provided as per the partnership deed, but available profits are not sufficient to provide the full amount of interest on capital, is as follows: D. Consider the partnership deed and decide whether interest on capital is a charge or an appropriation. A. If it is an appropriation, calculate interest on capital for all partners at the given rate. E. Consider the available profit. C. Calculate the ratio between the capital of partners. B. Divide the available amount in the capital ratio among the partners.

17. Identify the key that allows the access to the system. (1) Security (2) Encryption (3) Software (4) Password Ans. Option (4) is correct. Explanation: Security protects the financial data from the access through an unauthorized source. Encryption helps to protect the data by coding the data and scrambling it. Software is the programme that is used for making computerized accounting. Password is the key that allows the access to the system to prevent it from being used by an unauthorized user. 18. Identify the correct sequence where new partner is to bring proportionate capital. A. Calculation of Capital Balance of old partners B. Preparation of Revaluation A/c C. Determination of Revaluation gain/loss D. Presentation of Treatment of Goodwill E. Calculation of Capital to be brought in by the new partner Choose the correct answer from the options given below: (1) C, B, D, A, E (2) D, B, C, E, A (3) D, C, B, A, E (4) B, C, D, A, E Ans. Option (4) is correct. Explanation: In the case of admission of a new partner, the first step is to check for any change in the valuation of assets and liabilities, or unrecorded assets or liabilities. That is the revaluation account needs to be prepared first. This helps in determining the loss or gain in revaluation, which is transferred to the old partners in the old profit-sharing ratio. Thereafter, the goodwill of the firm is treated or calculated. Finally, the capital of the old partners are ascertained and then the share of capital of the new partner is to be calculated. 19. Which of the following will be shown on the credit side of Deceased Partner A/c? A. Revaluation Gain Share B. Goodwill written off C. Share of profit till date of death D. Drawings till date of death E. Interest on capital till date of death

Choose the correct answer from the options given below: (1) A and C only (2) B, D and E only (3) A, B and D only (4) A, C and E only Ans. Option (4) is correct. Explanation: The following items are shown in the credit side of the deceased partner’s account: (1) Credit balance of capital and current account. (2) Salary, commission, interest, etc. up to the date of death. (3) Proportionate share in profit of firm till the date of death. (4) Proportionate share in goodwill of the firm. (5) Proportionate share in undistributed profits and reserves of the firm as shown in the balance sheet. (6) Proportionate share in the profit on revaluation of assets and liabilities. The following items will be shown on the debit side of the deceased partner’s account: (1) Debit capital balance of deceased partner. (2) Drawings of deceased partner and interest on drawings. (3) Share of Goodwill written off. (4) Share in the loss on revaluation of assets and liabilities. (5) Share in undistributed loss. 20. In a partnership firm, partners share profit and loss in the ratio of 3 : 2. If the firm incurred a loss of ` 10,000 during the year then calculate the amount of loss to be shared by partners. (1) Equally (2) According to profit sharing ratio. (3) According to gaining ratio. (4) According to sacrificing ratio. Ans. Option (2) is correct. Explanation: Whether it is profit or loss, it is shared as per the profit sharing ratio. Only in the absence of the partnership deed, it is shared equally. 21. Which of the following will be added to operating profit before working capital changes, while preparing Cash Flow statement from indirect method? (1) Increase in Trade Receivable by ` 80,000 (2) Decrease in Inventory by ` 50,000 (3) Increase in Prepaid Expenses by ` 30,000 (4) Decrease in Trade Payable by ` 20,000 Ans. Option (2) is correct. Explanation: Increase in trade receivables, increase in prepaid expenses and decrease in trade payables will be subtracted as all involves outflow of cash.

CUET Board Paper 2023 22. Match List I with List II: List -I

17

Ans. Option (4) is correct. List - II

(A)

Interest on capital

(I)

Admission of partner

(B)

Gaining Ratio

(II)

Profit and Loss in the old profit sharing ratio

(C)

Sacrificing ratio

(III)

Continuing partners

(D)

Revaluation of (IV) Assets and Liabilities

When partnership deed specifically provide for it

Choose the correct answer from the options given below: (1) (A)-(I), (B)-(II), (C)-(III), (D)-(IV) (2) (A)-(III), (B)-(IV), (C)-(I), (D)-(II) (3) (A)-(II), (B)-(III), (C)-(IV), (D)-(I) (4) (A)-(IV), (B)-(III), (C)-(I), (D)-(II) Ans. Option (4) is correct. Explanation: Only when the partnership deed provides for the interest on capital, it can be charged in the partnership firm. In case of retirement/death of a partner, the continuing or remaining partners share the goodwill share of the retiring or deceased partner in the gaining ratio. Sacrificing ratio is calculated during the admission of a partner as the old partners sacrifice a part of their share to the new partner. The profit or loss on the revaluation of assets and liabilities is shared by the old or remaining partners in the old profit-sharing ratio. 23. Identify the term that indicate excess of Expenditure over Income, in case of a Not-for-profit Organisation. (1) Payment (2) Expenditure (3) Deficit (4) Loss Ans. Option (3) is correct. Explanation: The excess of expenditure over income is called deficit and the excess of income over expenditure is called surplus in the case of Not-for-profit organization. 24. Identify the salient features of Income and Expenditure account from the following: A. It is prepared on accrual basis. B. It includes both revenue as well as capital items. C. It is prepared after taking into account the additional information regarding outstanding prepaid expenses and depreciation etc. D. Its result is surplus or deficit. E. It is prepared with the help of Receipts and Payments Account. Choose the correct answer from the options given below: (1) A, B, C and D only (2) A, B, C and E only (3) B, C, D and E only (4) A, C, D and E only

Explanation: The income and expenditure account only records the revenue item; the capital items are recorded in the balance sheet. Thus, statement B is incorrect. 25. C Ltd. made a profit of ` 10,000 after charging depreciation of ` 2,000 on Assets, transfer to General Reserve ` 3,000. Written off Goodwill ` 700, Profit on sale of Asset ` 300, increase in Debtors ` 300, increase in creditors ` 600, increase in prepaid expenses ` 20 and decrease in outstanding expenses ` 200. What will be the cash from operating activities? (1) ` 15,500 (2) ` 15,480 (3) ` 5,000 (4) ` 16,000 Ans. Option (2) is correct. Explanation: Cash from operating activity = ` 10,000 + ` 3,000 + ` 2,000 + ` 700 – ` 300 – ` 300 + ` 600 – ` 20 – ` 200 = ` 15,480 26. On 1st July' 22, Centaur Ltd. issued ` 25,00,000 8% debentures of ` 100 each as collateral security to First Level Bank against loan dues of ` 20,00,000, How much amount will be shown in the Balance sheet? (1) ` 25,00,000 (2) ` 45,00,000 (3) ` 20,00,000 (4) ` 70,00,000 Ans. Option (3) is correct. Explanation: As the debentures are issued as collateral security for the bank loans, the amount to be shown will be ` 20,00,000 as the debentures will be retained by the bank unless and until the loans are repaid back. 27. Arrange following in a sequence in which amount realised from assets will be utilised to pay. A. Partner's Loan B. Partner's Capital C. Secured debts of the firm D. Unsecured debts of the firm E. Residue to partners Choose the correct answer from the options given below: (1) C, D, E, A, B (2) C, D, E, A, B (3) C, D, A, B, E (4) C, D, A, E, B Ans. Option (3) is correct. Explanation: In the case of dissolution, firstly all the secured debts are paid and then the unsecured debts. When it comes to partners, the loan is paid first, then from the remaining amount capital due is paid and if anything is left after that, the residue to the partners is paid. 28. A part of fixed assets costing ` 2,00,000 (Book value 1,50,000) was sold at a gain of ` 10,000. How it will affect the cash flow statement?

18

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY (1) Inflow ` 1,60,000 in Investing Activities and Add ` 10,000 in Operating Activities (2) Inflow ` 1,60,000 in Investing Activities and less ` 10,000 in Operating Activities (3) Inflow ` 2,10,000 in Investing Activities Add ` 10,000 in Operating Activities (4) Inflow ` 2,10,000 in Investing Activities and Less ` 10,000 in Operating Activities

Ans. Option (2) is correct. Explanation: The asset is sold at a profit of `  10,000, so the sale of fixed asset is ` 1,60,000 (` 1,50,000 + ` 10,000). This amount will be an inflow of cash in the investing activities. Thereafter, ` 10,000 being a profit on sale of fixed asset is to be subtracted while finding the cash flow from operating activities. 29. Match List I with List II: List -I (A)

List - II Other Non-Current Liabilities

Ans. Option (3) is correct. Explanation: This order ensures that the Balance Sheet presents a systematic and organized view of the company's financial position, with the owner's equity and long-term liabilities first, followed by short-term liabilities and the company's long-term and short-term assets. 31. When a company issues shares in open market and the amount is payable in instalments. What is the sequence of amount demanded by the company? A. Money received on calls B. Money due on calls C. Allotment money received D. Application money transferred to Share Capital A/c E. Allotment money due Choose the correct answer from the options given below:

Current Maturities of long term Debt

(I)

(B)

Securities Premium

(II)

Short term Borrowing

(2) D, E, C, B, A

(C)

Outstanding salaries

(III)

Other Current Liability

(4) D, E, C, A, B

(D)

Premium on Redemption of Debentures

(IV)

Reserves and Surplus

Choose the correct answer from the options given below: (1) (A)-(III), (B)-(IV), (C)-(II), (D)-(I) (2) (A)-(II), (B)-(I), (C)-(III), (D)-(IV) (3) (A)-(II), (B)-(IV), (C)-(III), (D)-(I) (4) (A)-(III), (B)-(II), (C)-(I), (D)-(IV) Ans. Option (3) is correct. Explanation: Current Maturities of long term debt will be shown as a short term borrowings; Securities Premium will be shown in the Reserves and Surplus; Outstanding Salaries is shown in Other Current Liability and Premium on redemption of debentures will be shown under the Other Non-Current Liabilities. 30. What is the correct sequence to prepare company’s Balance Sheet as per the standard format given according to Schedule III of Companies Act 2013? A. Non Current Liability B. Non Current Assets C. Shareholder's Funds D. Current Assets E. Current Liability Choose the correct answer from the options given below: (1) C, A, B, E, D (2) A, B, C, D, E (3) C, A, E, B, D (4) A, C, E, B, D

(1) D, C, B, A, E (3) D, C, A, B, E

Ans. Option (2) is correct. Explanation: The sequence of amount demanded by the company is: 1. Application money received 2. Application money transferred to share capital 3. Allotment money due 4. Allotment money received 5. Money due on calls 6. Money received on calls 32. Trade payables to be settled beyond 12 months from the date of Balance sheet or beyond the operating cycle are classified under: (1) Long term provisions (2) Other long term liabilities (3) Deferred tax liabilities (4) Long term Borrowing Ans. Option (2) is correct. Explanation: Trade payables that are to be settled beyond 12 months from the date of the balance sheet or beyond the operating cycle are classified as other long-term liabilities in the financial statements of a company. These liabilities represent obligations that are not due for settlement in the short term and are typically considered as part of the long-term financing of the company. 33. Match List I with List II: (A)

List -I Transfer of accumulated profits

(I)

List - II Realisation Account

CUET Board Paper 2023 (B)

(C) (D)

Unrecorded asset sold on dissolution of firm Manager's commission

(II)

Profit and Loss Account

(III)

Partner's commission

(IV)

Profit and Loss Appropriation Account Partner's Capital Account

19

(4) It is useful in predicting claims on future cash flow by providers of funds to the enterprise. Ans. Option (4) is correct. Explanation: Financing activity will be helpful for the investors to see how the company uses the finances of the company, so that they can predict the future cash flows.

Choose the correct answer from the options given below: (1) (A)-(IV), (B)-(I), (C)-(III), (D)-(II)

36. How many blank worksheet(s) are shown, by default when a new workbook is created? (1) One (2) Two (3) Three (4) Four

(2) (A)-(IV), (B)-(I), (C)-(II), (D)-(III)

Ans. Option (3) is correct.

(3) (A)-(IV), (B)-(II), (C)-(III), (D)-(I) (4) (A)-(IV), (B)-(III), (C)-(II), (D)-(I) Ans. Option (2) is correct. Explanation: When accumulated profits are distributed among the partners, it increases their respective capital accounts. The unrecorded asset's sale during the dissolution of the firm is accounted for in the Realisation account, helping to determine the total gain or loss. The manager's commission is treated as an expense and debited to the Profit and Loss Account, reducing the firm's profit. Partner's commission is an appropriation of profit and is credited to the Profit and Loss Appropriation Account, showing its allocation among the partners. 34. Every company analyse its earning capacity of the business which is outcome of utilisation of resources employed in the business. To analyse profitability company can use: A. Dividend Payout Ratio B. Return on Net Worth C. Gross Profit Ratio D. Quick Ratio E. Inventory Turnover Ratio Choose the choose answer from the option given below: (1) C and E only

(2) C, D and E only

(3) A, B and C only

(4) A, C and E only

Ans. Option (3) is correct. Explanation: The profitability of the company is analyed with the help of the profitability ratios. In the list, only Dividend payout ratio, Return on Net Worth and Gross Profit Ratio are the profitability Ratio. Quick Ratio is a liquidity ratio and Inventory Turnover Ratio is a performance ratio. 35. Separate disclosure of cash flow arising from Financial Activities is important because (1) It helps in identifying the investment activities. (2) It helps in gaining in investing activities. (3) It helps in making investing decision.

Explanation: When a new worksheet is opened or created three blank worksheets are shown on the bottom right corner, that is the sheets tab. 37. Capital gain tax paid on sale of fixed assets should be classified as ...... (1) Cash inflow from Operating Activities (2) Cash outflow from Operating Activities (3) Cash inflow from Investing Activities (4) Cash outflow from Investing Activities Ans. Option (4) is correct. Explanation: As the sale of fixed assets forms a part of Investing activities, so the capital gains tax paid on the sale of fixed assets should be classified as the cash outflow from Investing Activities. 38. Match List I with List II: (A)

List -I Interest charges

(I)

(B) (C)

Sale of services Salary

(II) (III)

(D)

Dividend Income

(IV)

List - II Employees Benefit Expenses Other incomes Revenue from Operations Finance cost

Choose the correct answer from the options given below: (1) (A)-(IV), (B)-(III), (C)-(I), (D)-(II) (2) (A)-(IV), (B)-(II), (C)-(I), (D)-(III) (3) (A)-(II), (B)-(I), (C)-(III), (D)-(IV) (4) (A)-(II), (B)-(IV), (C)-(I), (D)-(III) Ans. Option (1) is correct. Explanation: Interest charged is a finance cost and so is shown as an expense in the statement of profit and loss. Sale of services is a type of revenue from operations as it is done as a normal day to day functioning of the business. Salary is a part of Employee benefit scheme as it is the remuneration paid to employees for the services that they have rendered. Dividend Income forms the part of other incomes, as it is not the actual way for a company to earn income.

20

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

39. Select out of the following that leads to the need of codification. (1) The Encryption of data (2) To secure various accounts (3) To keep proper records (4) All of the above Ans. Option (2) is correct. Explanation: Codification is essential to create a standardized and organized system for easy identification and reference of data, accounts, and records. It involves the use of codes or unique identifiers to manage and secure information. Encrypting data ensures data security, securing various accounts prevents unauthorized access, and maintaining proper records helps in efficient data management. All these aspects are interconnected and contribute to the need for codification in various organizational processes. 40. Select the sub-head under which loose tools will be shown in the Balance Sheet of a company (1) Current Assets (2) Trade Receivables (3) Inventories (4) Other current Assets Ans. Option (3) is correct. Explanation: Loose tools are considered part of the inventories category in the Balance Sheet of a company. Inventories include various items that a company holds for production, trading, or provision of services. Loose tools fall under this category as they are essential for day-to-day operations and are not intended for resale. 41. Based on following passage answer questions from 41-45. A Ltd. with an Authorised Capital of ` 10,00,000 is divided into shares of ` 10 each, issued 50,000 shares at a premium of ` 2 per share payable as follows: on Application ` 3 per share on Allotment ` 5 per share (including premium) on First and Final call Balance amount Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at ` 8 per share as fully paid up. Identify the number of shares with which A Ltd. is registered. (1) 1,00,000 Shares (2) 50,000 Shares (3) 60,000 Shares (4) 10,00,000 Shares Ans. Option (1) is correct.

Explanation: The Authorised Capital = ` 10,00,000 Value of each share = ` 10 Number of shares = (` 10,00,000)/10 = 1,00,000 42. Based on following passage answer questions from 41-45. A Ltd. with an Authorised Capital of ` 10,00,000 is divided into shares of ` 10 each, issued 50,000 shares at a premium of ` 2 per share payable as follows: on Application ` 3 per share on Allotment ` 5 per share (including premium) on First and Final call Balance amount Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at ` 8 per share as fully paid up. Select the amount received on Share Allotment Account: (1) ` 2,50,000 (2) ` 50,000 (3) ` 2,20,000 (4) ` 3,00,000 Ans. Option (3) is correct. Explanation: Money to be received on Share Allotment = 50,000 × ` 5 = ` 2,50,000 Money already received on application = 10,000 × ` 3 = ` 30,000 Money to be received = ` 2,50,000 - ` 30,000 = ` 2,20,000 43. Based on following passage answer questions from 41-45. A Ltd. with an Authorised Capital of ` 10,00,000 is divided into shares of ` 10 each, issued 50,000 shares at a premium of ` 2 per share payable as follows: on Application ` 3 per share on Allotment ` 5 per share (including premium) on First and Final call Balance amount Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at ` 8 per share as fully paid up. Select the amount that is received from Hari's reissued shares: (1) ` 4,800 (2) ` 4,000 (3) ` 8,000 (4) ` 9,600 Ans. Option (2) is correct.

CUET Board Paper 2023 Explanation: Shares allotted to Hari = 1,200 × 50,000/60,000 = 1,000 Number of shares reissued = 500 Amount received on the reissued shares = 500 × ` 8 = ` 4,000 44. Based on following passage answer questions from 41-45. A Ltd. with an Authorised Capital of ` 10,00,000 is divided into shares of ` 10 each, issued 50,000 shares at a premium of ` 2 per share payable as follows: on Application ` 3 per share on Allotment ` 5 per share (including premium) on First and Final call Balance amount Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at ` 8 per share as fully paid up. Identify the account to which the discount allowed on reissue of forfeited shares should be debited. (1) Bank Account (2) Forfeited Share Account (3) Capital Reserve Account (4) Securities Premium Reserve Account Ans. Option (2) is correct. Explanation: The discount allowed on the reissue of forfeited shares should be debited to the "Forfeited Share Account." This account is used to record the reissue of forfeited shares at a price lower than the original subscription price. The discount allowed is a reduction in the reissue price and is accounted for in the Forfeited Share Account. 45. Based on following passage answer questions from 41-45. A Ltd. with an Authorised Capital of ` 10,00,000 is divided into shares of ` 10 each, issued 50,000 shares at a premium of ` 2 per share payable as follows: on Application

` 3 per share

on Allotment

` 5 per share



(including premium)

on First and Final call

Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at ` 8 per share as fully paid up. The balance, if any, left in the share forfeited account relating to reissued shares, should be transferred to:

21

(1) Forfeited Share Account (2) Share Capital Account (3) Reserve Capital Account (4) Capital Reserve Account Ans. Option (4) is correct. Explanation: The balance amount of the forfeited shares is transferred to capital reserve account as it is a charge against capital. 46. Meena and Tina are partners in a firm and sharing profit as 3 : 2. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows: Balance Sheet Meena and Tina as on March 31, 2017 Liabilities

Amount (`)

Capital: Meena 90,000 Tina 80,000 Sundry creditors Bills payable

Assets

Amount (`)

Machinery Investments

70,000 50,000

1,70,000

Stock

60,000 20,000 2,50,000

Sundry Debtors Cash at bank

22,000 1,03,000 5,000 2,50,000

The assets and liabilities were disposed off as follows: a. Machinery were given to creditors in full settlement of their account and stock were given bills payable in full settlement. b. Investment were took over by Tina at book value. Sundry debtors of book value ` 50,000 took over by Meena at 10% less and remaining debtors realised ` 51,000. c. Realisation expenses amount to ` 2,000. When a creditor accepts an asset whose value is more than the amount due to him, he will ........ the excess amount which will be credited to ..... Account. (1) Pay, Bank (2) Not pay, Creditors (3) Pay, Realisation (4) Not pay, Realisation Ans. Option (3) is correct. Explanation: The excess amount of the creditors is transferred to the Realisation account and is paid by the creditor himself. 47. Meena and Tina are partners in a firm and sharing profit as 3 : 2. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows: Balance Sheet Meena and Tina as on March 31, 2017 Liabilities Capital: Meena 90,000

Amount (`)

Assets

Amount (`)

Machinery Investments

70,000 50,000

22

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

Tina 80,000 Sundry creditors Bills payable

1,70,000

Stock

22,000

60,000 20,000 2,50,000

Sundry Debtors Cash at bank

1,03,000 5,000 2,50,000

The assets and liabilities were disposed off as follows: a. Machinery were given to creditors in full settlement of their account and stock were given bills payable in full settlement. b. Investment were took over by Tina at book value. Sundry debtors of book value ` 50,000 took over by Meena at 10% less and remaining debtors realised ` 51,000. c. Realisation expenses amount to ` 2,000. Which mode of dissolution is highlighted in the above case? (1) Compulsory dissolution (2) Dissolution by agreement (3) Dissolution by court (4) Dissolution on happening of contingencies Ans. Option (2) is correct. Explanation: As it is clearly mentioned in the case study that Meena and Tina decided to dissolve the firm, it is a case of Dissolution by agreement. 48. Meena and Tina are partners in a firm and sharing profit as 3 : 2. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows: Balance Sheet Meena and Tina as on March 31, 2017 Liabilities

Amount (`)

Liabilities

Amount (`)

Assets

Amount (`)

Machinery Investments

70,000 50,000

1,70,000

Stock

22,000

60,000 20,000 2,50,000

Sundry Debtors Cash at bank

Capital: Meena 90,000 Tina 80,000 Sundry creditors Bills payable

a. Machinery were given to creditors in full settlement of their account and stock were given bills payable in full settlement. b. Investment were took over by Tina at book value. Sundry debtors of book value ` 50,000 took over by Meena at 10% less and remaining debtors realised ` 51,000. c. Realisation expenses amount to ` 2,000. State Journal entry for payment of realisation expenses. (1) Realisation Expenses A/c Dr. ` 2,000 (2) Realisation A/c

1,70,000

Stock

22,000

(3) Realisation A/c

60,000 20,000 2,50,000

Sundry Debtors Cash at bank

1,03,000 5,000 2,50,000

b. Investment were took over by Tina at book value. Sundry debtors of book value ` 50,000 took over by Meena at 10% less and remaining debtors realised ` 51,000. c. Realisation expenses amount to ` 2,000. Identify the amount realised in cash from Sundry Debtors. (2) ` 1,03,000 (4) ` 51,000

1,03,000 5,000 2,50,000

The assets and liabilities were disposed off as follows:

70,000 50,000

a. Machinery were given to creditors in full settlement of their account and stock were given bills payable in full settlement.

(3) ` 1,00,000

Balance Sheet Meena and Tina as on March 31, 2017

Machinery Investments

The assets and liabilities were disposed off as follows:



49. Meena and Tina are partners in a firm and sharing profit as 3 : 2. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows:

Amount (`)

Meena 90,000

(1) ` 96,000

Explanation: As Meena did not give cash for the debtors taken over by her, only ` 51,000 is realized in cash from Sundry Debtors.

Assets

Capital: Tina 80,000 Sundry creditors Bills payable

Ans. Option (4) is correct.



To Realisation A/c ` 2,000

Dr. ` 2,000

To Bank A/c ` 2,000

(4) Bank A/c

Dr. ` 2,000

To Realisation Expenses A/c ` 2,000

Dr. ` 2,000

To Realisation A/c ` 2,000

Ans. Option (3) is correct. Explanation: As realization expenses is paid, so Bank Account will be credited by debiting the Realisation Account. 50. Meena and Tina are partners in a firm and sharing profit as 3 : 2. They decided to dissolve their firm on March 31, 2017 when their Balance Sheet was as follows: Balance Sheet Meena and Tina as on March 31, 2017 Liabilities Capital: Meena 90,000

Amount (`)

Assets

Amount (`)

Machinery Investments

70,000 50,000

CUET Board Paper 2023 Tina 80,000 Sundry creditors Bills payable

1,70,000

Stock

60,000 20,000 2,50,000

Sundry Debtors Cash at bank

22,000 1,03,000 5,000 2,50,000

The assets and liabilities were disposed off as follows:

23

State Journal entry for realisation of investment. (1) Tina's Capital A/c

Dr. ` 50,000

To Realisation A/c ` 50,000

(2) Tina's Capital A/c

Dr. ` 30,000



Dr. ` 20.000

Meena's Capital A/c



To Realisation A/c ` 50,000

a. Machinery were given to creditors in full settlement of their account and stock were given bills payable in full settlement.

(3) Realisation A/c

b. Investment were took over by Tina at book value. Sundry debtors of book value ` 50,000 took over by Meena at 10% less and remaining debtors realised ` 51,000.



To Tina's Capital A/c ` 30,000



To Meena's Capital A'c ` 20,000

c. Realisation expenses amount to ` 2,000.



Dr. ` 50,000

To Tina's Capital A/c ` 50.000

(4) Realisation A/c

Dr. ` 50,000

Ans. Option (1) is correct. Explanation: As Tina took over the Investment, her capital account will be debited and realisation account will be credited with the amount of investment. 

24

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

SAMPLE

Question Paper Maximum Marks : 200

1

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Income and Expenditure Account records :

(2) Opening Balance of Match Fund ` 5,00,000 will be shown on the liabilities side of Balance Sheet as at 1.4.2018. (3) Negative balance of match fund ` 1,000 will be shown on the expenditure side of the Income and Expenditure Account for the year ended 31.3.2019. (4) Both (2) and (3).

(1) Receipts and Payments of Revenue and Capital nature both (2) Income and Expenditure of Revenue nature only (3) Expenditure of Capital nature only (4) Receipts of Revenue nature only

2. Jaipur Club has a prize fund of ` 6,00,000. It incurs expenses on prizes amounting to ` 5,20,000. The expenses should be : (1) debited to income and expenditure account. (B) presented on the assets side of the balance sheet. (3) debited to income and expenditure account and presented on the assets side of the balance sheet. (4) deducted from the prize fund on the liabilities side of the balance sheet.

3. The

following information has been extracted from the financial statements of a not-for-profit organization for the year ended 31st March, 2019 : Particulars Amount (`) Opening Balance of Match Fund 5,00,000 Sale of Match tickets 3,75,000 Donation for Match Fund received during the year 1,24,000 Match expenses 10,00,000

Which

of the following statements is correct for the presentation of the above items in the financial statements of the not-for-profit organization ?

(1) Negative Balance of Match fund ` 1,000 will be shown on the liabilities side of the Balance Sheet as at 31st March, 2019.

4. Subscription

received in advance during the current year is : (1) An income (2) An asset (3) A liability (4) None of the above

5. The following information below is related to an Dr.

NPO : Receipts and Payments A/c [An Extract]

Receipts

Amount (`)

To I nterest on Investments

Payments

Cr.

Amount (`)

By 8% InvestNil

ments [01-10-18]

60,000

If the

firm closes its accounts on 31st March every year, what amount of accrued interest on investments will be shown in the Balance Sheet of the firm on 31-03-19 ?

(1) ` 2,400 (3) ` 6,000

(2) ` 4,800 (4) None of these

6. Pick the odd one out : (1) Entrance fees (2) Subscription (3) Government grant (4) Life membership fees

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

2

7. The

mathematical operator is represented by asterisk (*) is: (1) Exponential (2) Addition (3) Substraction (4) Multiplication

8. Following

are the essential elements of a partnership firm except: (1) At least two persons (2) There is an agreement between all partners (3) Equal share of profits and losses (4) Partnership agreement is for some legal business



9. Pick the odd one out : (1) (2) (3) (4)

Interest on capital Interest on drawings Interest on partner’s loan Salary to partner

10. Identify the journal entry for transferring interest on

drawings to the Profit and Loss Appropriation A/c. (1) Partners’ Capital/Current A/cs  Dr. To Interest on drawings A/c (Being interest on drawings transferred to Profit & Loss Appropriation A/c) (2) Interest on Drawings A/c Dr. To Partners’ Capital/Current A/cs (Being interest on drawings transferred to Profit & Loss Appropriation A/c) (3) Interest on Drawings A/c Dr. To Profit and Loss Appropriation A/c (Being interest on drawings transferred to Profit & Loss Appropriation A/c) (3) Profit & Loss Appropriation A/c  Dr. To Interest on Drawings A/c (Being interest on drawings transferred to Profit & Loss Appropriation A/c)

11. Which of the following items is not dealt through Profit and Loss Appropriation Account ? (1) Interest on partner’s loan (2) Partner’s salary (3) Interest on partner’s drawings (4) Partner’s commission

12. Which

of the following does not result in the change in the profit sharing ratio? (1) When one or more partners acquire an interest in the business from another partner or partners (2) When a partner is admitted in the firm. (3) When a partner goes on a vacation. (4) When a partner dies.



admitted as a new partner. It was decided that the new profit sharing ratio of Bishan, Sudha and Alena will be 10 : 6 : 5. The sacrificing ratio of Bishan and Sudha will be : (1) 5 : 3 (b) 25 : 78 (c) 6 : 5 (4) 2 : 1 15. Which of the following best describes the computerised accounting system? (1) A  manual system of recording financial transactions. (2) A software-based system that automates accounting tasks. (3) A system that relies on calculators for financial calculations. (4) A system that uses typewriters for documentation. 16. Assertion (A): New Profit Sharing Ratio is the ratio in which old partners including the new partner, share the profits or losses of the firm.

Reason

(R): When a new partner is admitted to the firm it is necessary to calculate the new profit sharing ratio with the help of the share agreed to forgo by the old partners.

(1) B  oth Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

I. Analyse

the case given below and answer the questions that follow :

Alia,

Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at the value of ` 60,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ` 2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2 : 3. Give the answers to the questions given below:

17. How much will be transferred to Karan’s Capital Account of the existing goodwill? (1) `18,000 (2) `30,000 (3) `12,000 (4) `72,000

18. What is Alia’s gaining or sacrificing ratio: (1)

1 Gain 10

(2)

1 Sacrifice 10

(3)

4 Gain 10

(4)

4 Sacrifice 10

13. At

the time of change in profit sharing ratio, it is important to determine the _________ and ___________ of partners. (1) Sacrificing ratio, gaining ratio (2) Profit, loss (3) Goodwill, profit (4) Capital, Profit

14. Bishan and Sudha were partners in a firm sharing

profits and losses in the ratio of 5 : 3. Alena was

19. What is Shilpa’s gaining or sacrificing ratio: (1)

1 Gain 10

(2)

1 Sacrifice 10

(3)

4 Gain 10

(4)

4 Sacrifice 10

Sample Question Papers 20. What

amount of goodwill will be credited to Karan’s Capital account? (1) ` 96,000 (2) ` 72,000 (3) ` 24,000 (4) ` 18,000

21. Saurabh, Shirin and Somesh are partners in a firm

sharing profits and losses in the ratio of 3 : 2 : 1. Somesh retires and the new profit sharing ratio between Saurabh and Shirin in 3 : 2. The gaining ratio between Saurabh and Shirin will be : (1) 3 : 2 (2) 3 : 1 (3) 1 : 1 (4) 2 : 1

22. On

the basis of the following data, how much final payment will be made to a partner on firm’s dissolution?

3

29. The Journal Entry to acquire an asset from vendor will be :

Particulars (1)

Sundry Assets A/c

(2)

Vendor's A/c

Dr. Dr.

To Sundry Assets A/c

Sundry Assets A/c

(4)

Amount Amount Dr. (`) Cr. (`)

To Vendor's A/c

(3)

L.F.

Dr.

To Cash A/c

Cash A/c

Dr.

To Vendor's A/c

Credit

30. HR

23. The account which is prepared on dissolution of a

31. Which of the following is not a purpose for which

balance of capital account of the partner was ` 50,000. Share of loss on realisation amounted to ` 10,000. Firm’s liability taken over by him was for ` 8,000. (1) ` 32,000 (2) ` 48,000 (3) ` 40,000 (4) ` 52,000 partnership firm : (1) Revaluation Account (2) Realisation Account (3) P & L Appropriation Account (4) None of the above

24. On dissolution of a firm, a liability taken over by a partner is credited to : (1) Realisation Account (2) Profit and Loss Account (3) Partner’s Capital Account (4) None of the above

25. The first stage of incorporating a company is : (1) (2) (3) (4)

Registration  Promotion Commencement of business None of the above

26. Those

preference shares which do not carry the right to receive arrears of dividend : (1) Non-participating Preference Shares (2) Irredeemable Preference Shares (3) Non-convertible Preference Shares (4) Non-cumulative Preference Shares

27. Subscription

of shares should not be less than_________ % of the issued shares. (1) 85% (2) 90% (3) 95% (4) 100%

28. Balance

in Share Forfeiture Account is shown in the balance sheet under the head of : (1) Reserves and Surplus (2) Long-term Borrowings (3) Share Capital (4) Other Current Liabilities

Limited issued 10,000 equity shares @ ` 10 each at 10% premium. All shares were subscribed and amount was received. Identity the amount to be transferred to Securities Premium Reserve A/c. (1) ` 10,000 (2) ` 1,000 (3) ` 1,00,000 (4) ` 9,000 the Securities Premium amount can be used ? (1) Issuing fully paid bonus shares to shareholders (2) Issuing partly paid up bonus shares to shareholders (3) Writing off preliminary expenses of the company (4) In purchasing its own shares (buy back)

32. Debenture interest is paid as : (1) (2) (3) (4)

based on the net profit of company at a predetermined rate at variable rate none of the above

33. At

the time of issue of debentures, Debentures Account is : (1) Credited by the amount received (2) Credited by issued price of debentures (3) Credited by the nominal (face) value of the debentures (4) None of the above

34. Premium on Redemption of Debentures Account is a ________ Account. (1) Real Account (3) Personal Account

(2) Nominal Account (4) None of these

35. The loss on issue of Debentures is written–off from (as first priority) : (1) Capital Reserve (2) Secret Reserve (3) Reserve Capital (4) Share Premium Reserve Account

36. The

term `Field' as applied to database table means: (1) Vertical column of table (2) Size of the table (3) Horizontal row of table (4) Name of the table

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

4

37. What journal entry will be passed when purchase

consideration is equal to net assets while purchasing business from vendor : (1) Sundry Assets A/c Dr. Goodwill A/c Dr.    To Vendor’s A/c (2) Sundry Assets A/c Dr.    To Capital Reserve A/c    To Vendor’s A/c (3) Sundry Assets A/c Dr.    To Sundry Liabilities A/c    To Vendor’s A/c (4) Capital Reserve A/c Dr.    To Vendor’s A/c

38. Which of the following is not a part of Finance Cost (in Statement of Profit and Loss) ? (1) Bank Charges (2) Interest Paid on Debentures (3) Interest Paid on Public Deposits (4) Loss on Issue of Debentures

39. What

is the potential limitation of using a computerised accounting system? (1) Improved accuracy in financial calculations. (2) Enhanced data security and control. (3) Dependency on technology and potential system failures. (4) Reduction in time spent on manual tasks.

(1) (2) (3) (4)

Choose the correct option : Only (i) is correct. Only (ii) is correct. Only (i) and (iii) are correct. Only (ii) and (iii) are correct.

44. Which of the following is not an activity ratio ? (1) (2) (3) (4)

Inventory turnover ratio Interest coverage ratio Working capital turnover ratio Trade receivables turnover ratio

45. The

________ measures the activity of a firm’s inventory. (1) average collection period (2) inventory turnover (3) liquid ratio (4) current ratio

46. Pick the odd one out : (1) (2) (3) (4)

Cash in hand Cash at bank Marketable Securities Non-current Investments

47.

Balance Sheet (Extract) Liabilities

Fixed Assets

31-03-2018 (`)

31-03-2017 (`)

23,80,000

17,50,000

40. Which of the following is a limitation of financial Additional Information : analysis ? Depreciation on fixed assets was ` 2,00,000 for the (1) It is just a study of reports of the company. (2) It judges the ability of the firm to repay its debts. (3) It identifies the reasons for change in financial position. (4) It ascertains the relative importance of different components of the financial position of the firm.

41. Pick the odd one out : (1) (2) (3) (4)

Horizontal Analysis Comparative Statement of Profit and Loss Comparative Balance Sheet Common-Size Balance Sheet

42. The

may indicate that the firm is experiencing stock outs and lost sales. (1) Average payment period (2) Inventory turnover ratio (3) Average collection period (4) Quick ratio

43. Current ratio of Vidur Pvt. Ltd. is 3 : 2. Accountant

wants to maintain it at 2 : 1. Following options are available :

(i) He can repay bills payable (ii) He can purchase goods on credit (iii) He can take short-term loan

year. How much amount for ‘Purchase of fixed assets’ will be shown in investing activity for cash flow statement prepared on 31st March, 2018 ? (1) Outflow ` 8,30,000 (2) Inflow ` 42,600 (3) Outflow ` 6,30,000 (4) None of these

48. Payment of income tax is classified under : (1) (2) (3) (4)

Operating activity Financing activity Investing activity None of the above

49. Which of the following transactions will not result into flow of cash? (1) Issue of equity shares of ` 1,00,000 (2) Purchase of machinery of ` 1,75,000 (3) Redemption of 9% debentures ` 3,50,000 (4) Cash deposited into bank ` 15,000

50. Cash Flow Statement is based upon : (1) (2) (3) (4)

Accrual basis of accounting Cash basis of accounting Accounting equation None of the above

nnn

SAMPLE

Question Paper Maximum Marks : 200

2

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Which of the following is not a capital receipt ? (1) (2) (3) (4)

Donations for tournament Donations for building fund Life membership fee Entrance fees

2. Sports Star Charitable Club has income of ` 16,000

and ‘deficit’ debited to capital fund of ` 4,300 for the year 2019-20, then expenditure for 2019-20 is : (1) ` 11,700 (2) ` 4,300 (3) ` 20,300 (4) None of the above

3. Receipts and Payments Account is a summary of : (1) (2) (3) (4)

Debit and Credit balance of Ledger Account Cash Receipts and cash Payments Incomes and Expenses Balances of assets and liabilities

4. The nature of Receipts and Payments Account is : (1) Nominal Account (3) Personal Account

(2) Real Account (4) None of the above

5. Identity the type of fund stated below : ‘Himanshu Club has a fund which can

only be used for the distribution of prizes.’ (1) Prize fund (2) Endowment fund (3) Non-approved fund (4) Honorarium

6. What

is the benefit of using a computerised accounting system? (1) Increased manual errors (2) Reduced efficiency (3) Time-saving (4) Limited storage capacity

7. When is the Profit and Loss Appropriation Account

prepared? (1) When there are certain adjustments related to partnership.

(2) When the firm is dissolved. (3) When there is an audit to be done. (4) It is never prepared.

8. Pick the odd one out : (1) (2) (3) (4)

Rent to Partner Manager’s Commission Interest on Partner’s Loan Interest on Partner’s Capital

9. Identify

the key that allows the access to the system : (1) Security (2) Encryption (3) Software (4) Password

10. Rahul and Shubham are partners in a partnership.

Rahul withdraw ` 4,000 during the year as drawings. Interest on drawings is charged @ 15% p.a. The amount of interest on drawings at the end of the year will be : (1) ` 300 (2) ` 600 (3) ` 1,200 (4) ` 150

11. Ramesh and Suresh are partners in the ratio of 3 : 2.

Before profit distribution, ‘Ramesh is entitled to 5% commission of the net profit (after charging such commission). Before charging commission, firm’s profit was `84,000. Suresh’s share in profit will be : (1) ` 32,000 (2) `48,000 (3) ` 56,000 (4) ` 32,800

12. Which

of the following is not required to be adjusted at the time of change in the profit sharing ratio? (1) Determination of sacrificing ratio and gaining ratio (2) Accounting treatment of Goodwill

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

6

(3) Revaluation of assets and reassessment of liabilities (4) Determination of the capital of the partners

13. Which of the following statements is not true? (1) When the partner is admitted it leads to reconstitution of the firm. (2) When the partner dies it is considered as reconstitution of the firm. (3) When the partners change their profit sharing ratio it is said to be as the reconstitution of the firm. (4) When the partner buys an asset it is considered as the reconstruction of the firm.

14. When

the incoming partner brings his share of premium for goodwill in cash, it is adjusted by crediting to :

(1) His Capital Account (2) Premium for Goodwill Account (3) Sacrificing Partners’ Capital Accounts (4) None of the above

15. Z is admitted in a firm for 1/4th share in the profits

for which he brings ` 10,000 towards premium for goodwill. It will be taken by the old partners in :

(1) Old Profit Sharing Ratio (2) New Profit Sharing Ratio (3) Sacrificing Ratio (4) None of the above

16. If

the incoming partner is to bring Premium for Goodwill in cash and also a balance exists in Goodwill Account, then this Goodwill Account is written off among old partners in : (1) New Profit Sharing Ratio (2) Old Profit Sharing Ratio (3) Sacrificing Ratio (4) None of the above

17. According to the Partnership Act, 1932, the interest

prepare financial statement as on 18th December, 2019 and accordingly the share of profits of C (deceased partner) was calculated as ` 12,00,000. Which account will be debited to transfer C’s share of profit : (1) Profit and Loss Suspense Account (2) Profit and Loss Appropriation Account (3) Profit and Loss Account (4) None of the above

21. In case of retirement, if full or part of the amount

payable to the retiring partner still remains to be paid, and there is no agreement among the partners then retiring partner will get : (I) Interest @ 6% p.a. on the balance amount. (II) Share of profit earned proportionate to his amount outstanding to total capital of the firm. (III) Interest @ 9% p.a. on the balance amount. Which out of the following is correct ? (1) (I) (2) (II) (3) (III) (4) Have a choice to get either (I) or (II)

22. Pick the odd one out : (In reference to Dissolution partnership firm) (1) Debtors (2) Payment of liabilities (3) Provision for doubtful debts (4) Fixed assets

23. What Journal Entry will be passed on dissolution of partnership firm, when creditors of ` 40,000 accepted investments of ` 50,000 (Book value)? (1) Creditors A/c Dr. 40,000    To Realisation A/c 40,000 (2) Realisation A/c Dr. 40,000    To Creditors A/c 40,000 (3) Creditors A/c Dr. 50,000    To Investments A/c 50,000 (4) No Entry

24. What Journal Entry will be passed on dissolution

18. The old profit sharing ratio among Rajendra, Satish

of a partnership firm when a partner agreed to bear the dissolution expenses for ` 10,000? Actual expenses paid by partner were ` 15,000. (1) Realisation A/c Dr. 15,000    To Partner’s Capital A/c 15,000 (2) Realisation A/c Dr. 10,000    To Partner’s Capital A/c 10,000 (3) Realisation A/c Dr. 5,000 Dissolution Exp. A/c Dr. 10,000    To Bank A/c 15,000 (4) No Entry

19. Pick the odd one out :

25. ESOP offered by company will create / retain :

payable to the deceased partner on the amount left by him will be : (1) 6% p.a. (2) 10% p.a. (3) 12% p.a. (4) 16% p.a. and Tejpal were 2 : 2 : 1. The new profit sharing ratio after Satish’s retirement is 3 : 2. The gaining ratio is : (1) 3 : 2 (2) 2 : 1 (3) 1 : 1 (4) 2 : 2 (1) (2) (3) (4)

20. A,

Credit Balance of Capital A/c Credit Balance of Revaluation A/c Debit Balance of Statement of Profit & Loss Undistributed Reserve

B and C are partners. C expired on 18th December, 2019 and as per agreement surviving partners A and B directed the accountant to

(1) (2) (3) (4)

A sense of belongingness in employees High calibre High Productivity All of the above

26. Pick the odd one out : (1) Irredeemable preference share (2) Participating preference share

Sample Question Papers (3) Cumulative preference share (4) Open-ended preference share

27. A company forfeited 4,000 shares of ` 10 each on which application money of ` 3 has been paid. Out of these 2,000 shares were reissued as fully paid up and ` 4,000 has been transferred to capital reserve. Calculate the rate at which these shares were reissued : (1) ` 10 per share (2) ` 9 per share (3) ` 11 per share (4) ` 8 per share

28. Vanya

Ltd. forfeited 20,000 equity shares of ` 100 each for non-payment of first and final call of ` 40 per share. The maximum amount of discount at which these share can be re-issued will be : (1) ` 8,00,000 (2) ` 12,00,000 (3) ` 20,00,000 (4) ` 20,000

29. Steps to print non contiguous ranges in MS-Excel

are: A. Click the office Button and select print B. Select the first range to be printed C. In print what section, select selection D. Press [ctrl] + select second range to be printed and more, if required E. Click print Choose the correct answer from the options given below: 1. B → D → A → C → E 2. A → B → D → C → E 3. B → D → C → A →-E 4. A → B → C → D → E

30. Gama Chemicals Ltd. is a newly formed company.

How much discount per share can it allow for issuing its shares to the public ? (1) 6% (2) 10% (3) 5% (4) None of these

31. Share Allotment Account is a/an : (1) Personal Account (3) Nominal Account

(2) Real Account (4) None of these

32. When the debenture of face value of ` 100 is issued at ` 100 is called, issue off debenture at: (1) Par (2) Premium (3) Discount (4) None of the above

33. Debenture holders are : (1) (2) (3) (4)

Owners of the Company Lenders of the Company Vendors of the Company Customers of the Company

34. Debentures are considered as ____________ equity. (1) External (3) Both (1) and (2)

(2) Internal (4) Neither (1) nor (2)

35. Interest on Debentures is a charge against _______. (1) Profit (3) Dividend

(2) Share Capital (4) General Reserve

36. In Computerized Accounting, a DBMS can be used to: (1) Store and manage financial transactions

7

(2) Create invoices and purchase orders (3) Track inventory levels (4) Calculate employee salaries

37. Assertion (A): Debentures save income tax. Reason (R): Interest on debenture is tax deductible

expenditure. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

38. Carriage

Inwards is shown in the Statement of Profit and Loss under : (1) Cost of materials consumed (2) Other expenses (3) Employees benefit expenses (4) None of the above

39. Purchase

of goods for reselling is shown in the Statement of Profit and Loss under : (1) Changes in inventories (2) Cost of materials consumed (3) Purchase of stock-in-trade (4) None of the above

40. Consider the following statements given below : (I) In Common-size Balance Sheet, each item is converted into the percentage of share capital. (II) In Common-size Statement of Profit and Loss, each item is converted into the percentage of total expenses. (III) In Comparative Statement of Profit and Loss, absolute and percentage change in the items during two periods of time are calculated. Choose the correct option : (1) Only (I) is correct (2) Only (II) is correct (3) Only (III) is correct (4) All are correct

41. Financial

Statements Analysis helps in assessing future trends and thus, helps in forecasting and preparation of _________. (1) Accounts (2) Budgets (3) Reports (4) Statements

42. ________

are especially interested in the average payment period, since it provides them with a sense of the bill-paying patterns of the firm. (1) Customers (2) Stockholders (3) Lenders and suppliers (4) Borrowers and buyers

43. The

________ ratios provide the information critical to the long run operation to the firm. (1) liquidity (2) activity (3) solvency (4) profitability

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

8

44. X Ltd. has a Debt-Equity Ratio of 3 : 1. According

`

to the management, it should be maintained at 1 : 1. What are the choices in front of management to do so? (1) Increase equity (2) Reduce debt (3) Both, i.e, increase equity and reduce debt (4) All of the above

Depreciation on Fixed Tangible 50,000 Assets

(iv)



Provision for Doubtful Debts

Gain on Sale of Fixed Tangible Assets (Land) Additional information : Particulars Trade Receivables

Balance Sheet (Extract) Liabilities

31-03-2019 (`)

31-03-2020 (`)

12% debentures

2,00,000

1,60,000

Additional Information : Interest on debentures is paid on half yearly basis on 30th September and 31st March each year. Debentures were redeemed on 30th September, 2019. How much amount (related to above information) will be shown in Financing Activity for Cash Flow Statement prepared on 31st March, 2020? (1) Outflow ` 40,000 (2) Inflow ` 42,600 (3) Outflow ` 61,600 (4) Outflow ` 64,000

I. Read

the following information and answer the given questions:

X Ltd. made a profit of ` 5,00,000 after consideration of the following items :

(ii)

5,000

(v)

Debt to Equity Ratio Proprietary Ratio Interest Coverage Ratio Inventory Turnover ratio

46.

Goodwill written off

(iii) Loss on Sale of Fixed Tangible 20,000 Assets (Machinery)

45. Pick the odd one out : (1) (2) (3) (4)

(i)

Prepaid Expenses

10,000 7,500

31.3.2019 (`) 31.3.2018 (`) 78,800

52,000

3,000

2,000

Trade Payables

51,000

30,000

Expenses Payable

20,000

34,000

47. How will goodwill written off be adjusted in the cash flow statement? (1) Added to the Net Profit Before Tax (2) Subtracted the Net Profit before Tax (3) Not recorded in the Cash Flow (4) None of these

48. What will be the amount of Trade payables added to get the Cash flow from operations? (1) `51,000 (2) `30,000 (3) `21,000 (4) ` 31,000

49. What

amount of Trade Receivables will be subtracted from the Cash flow Statement to get Cash flow from operations? (1) `78,800 (2) `52,000 (3) `3,000 (4) `26,800

50. Which of the following items will be adjusted to Net Profit before Tax? (1) Trade Receivables (2) Prepaid Expenses (3) Loss on sale of Fixed Asset (4) Expenses Payable

nnn

SAMPLE

Question Paper Maximum Marks : 200

3

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Donation received for special purpose is a : (1) Liability (3) Capital Receipt

(2) Revenue Receipt (4) None of these

2. Reserve capital is not a part of : (1) (2) (3) (4)

Authorised Capital Subscribed Capital Unsubscribed Capital Issued Capital

3. .........

of spreadsheet makes easier to read and understand the information that are important : (1) Form (2) Cell (3) Pivot Table (4) Formatting

4. Which

step completes an entry and move the pointer to the cell to the right ? (1) Pressing [Enter] (2) Pressing [Tab] (3) Pressing [Shift]+[Tab] (4) Pressing [Shift]+ [Enter]

7. Pick the odd one out: (1) (2) (3) (4)

Preference Debentures Ordinary Debentures Convertible Debentures Redeemable Debentures

8. On the death of a partner, his share in the profits of the firm till the date of his death is transferred to the: (1) Debit of Profit & Loss Account (2) Credit of Profit & Loss Account (3) Debit of Profit & Loss Suspense Account (4) Credit of Profit & Loss Suspense Account

9. Donation received for a special purpose:

(1) Should be credited to Income and Expenditure Account. (2) Should be credited to separate account and shown in the Balance Sheet. (3) Should be shown on the assets side of Balance Sheet. (4) Should not be recorded at all.

5. Debentures

10. Discount on issue of debentures is a _____________

6. Change

11. The owners of the shares are called :

are shown in the Balance sheet of a company under the head of : (1) Non-current Liabilities (2) Current Liabilities (3) Share Capital (4) None of the above in profit sharing ratio among partners results in : (1) Sacrifice of share in profit by one or more partners (2) Gain of share in profit by one or more partners (3) Both (1) and (2) (4) None of the above

(1) revenue loss to be charged in the year of issue. (2) capital loss to be written off from capital reserve (3) capital loss to be written off over the tenure of the debentures. (4) capital loss to be shown as goodwill. (1) Share Capital (3) Creditors

12. The

(2) Shareholders (4) Debtors

key combination which collapses the ribbon is : (1) [Ctrl] +[F3] (2) [Ctrl] +[F1] (3) [Ctrl] +[F7] (4) [Ctrl] +[F5]

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

10

13. Where is the Interest on drawings recorded in the Current Account? (1) Debit side (2) Credit Side (3) Not recorded (4) Recorded as a foot note

14. Under

which of the following headings/subheadings, Calls-in-advance will be presented in the Balance Sheet of a Company as per Schedule III Part I of the Companies Act, 2013 ? (1) Current Liabilities (2) Share Capital (3) Share Application Money Pending Allotment (4) Reserves and Surplus

(3) b y debiting only Suman’s Capital Account with ` 30,000 (4)  by debiting Raman’s Capital account with ` 30,000

21. The primary concern of creditors when assessing the strength of a firm is the firm's _______. (1) Fixed assets (2) Leverage (3) Short-term liquidity (4) Share price

22. When shares are allotted, which of the following account is credited? (1) Share Capital A/c (2) Share Allotment A/c (3) Share Application A/c (4) Shareholders A/c

15. Y

23. The amount of 'Entrance Fees' received by a Not-

16. On

24. Pick the odd one out :

Ltd. invited applications for 10,000 shares of ` 10 each. Applications were received for 9,000 shares. Identify the kind of subscription. (1) Under Subscription (2) Over Subscription (3) Full Subscription (4) None of the above admission of a new partner, increase in the value of assets is debited to : (1) Profit and Loss Adjustment Account (2) Assets Account (3) Old Partners’ Capital Accounts (4) None of the above

17. Which

of the following is not a tool of financial analysis ? (1) Comparative Income Statement (2) Comparative Position Statement (3) Statement of Profit and Loss (4) Cash Flow Statement

18. A forfeited share can : (1) not be re-issued at discount (2) re-issued at a maximum discount of 10% (3) be re-issued at a maximum discount equal to the amount forfeited (4) None of the above

19. Pick the odd one out : (1) (2) (3) (4)

Gross Profit Ratio Return on Investment Net Profit Ratio Acid Test Ratio

20. Chaman, Raman and Suman are partners sharing

profits in the ratio of 5 : 3 : 2. Raman retires. The new profit sharing ratio between Chaman and Suman will be 1 : 1. The goodwill of the firm is valued at ` 1,00,000. Raman’s share of goodwill will be adjusted: (1)  by debiting Chaman’s Capital Account and Suman’s Capital Account with ` 15,000 each (2)  by debiting Chaman’s Capital account and Suman’s Capital Account with ` 21,429 and ` 8,571 respectively

for-profit organisation (if it is received regularly) is shown in which of the following? (1) Liabilities side of Balance Sheet (2) Assets side of Balance Sheet (3) Debit side of Income and Expenditure Account. (4) Credit side of Income and Expenditure Account. (1) (2) (3) (4)

Employees’ provident fund Partner’s loan Partner’s brother’s loan Creditors

25. Which database model mainly uses in accounting systems? (1) Hierarchical model (2) Relational model (3) Network model (4) Object-oriented model

26. Which

of the following is not readjusted at the time of admission of a new partner? (1) Capital Account (2) Profit Sharing Ratio (3) Profit and Loss Account (4) None of the above

27. When

debentures are issued at discount and redeemable at a premium, which one of the following account is debited at the time of issue ? (1) Debentures Account (2) Premium on Redemption of Debentures Account (3) Loss on Issue of Debentures Account (4) None of above

28. On the retirement of Hari from the firm of 'Hari,

Ram and Sharma' the Balance Sheet showed a debit balance ` 12,000 in the Profit and Loss Account. For calculating the amount payable to Hari this balance will be transferred : (1) to the credit of the Capital Accounts of Hari, Ram and Sharma equally (2) to the debit of the Capital Accounts of Hari, Ram and Sharma equally

Sample Question Papers (3) to the debit of the Capital Accounts of Ram and Sharma equally (4) to the credit of the Capital Accounts of Ram and Sharma equally

29. 100 − Operating Profit ratio is equal to___________. (1) (2) (3) (4)

Operating Ratio Operating Net Profit Ratio Gross Profit Ratio Current Ratio

30. Amount

received from sale of grass by a club should be treated as: (1) Capital receipt (2) Revenue receipt (3) Asset (4) Earned income

31. Which

of the following is not a limitation of analysis of financial statements ? (1) Window dressing (2) Price level changes ignored (3) Subjectivity (4) Intra firm comparison possible

32. Right issue of shares is issued to: (1) (2) (3) (4)

Directors Employees Existing shareholders Public

33. Which

of the following is the characteristic of a partnership firm? (1) Two or more persons are carrying common business under an agreement. (2) They are sharing profits and losses in the fixed ratio. (3) Business is carried by all or any of them acting for all as an agent. (4) All of the above

34. Assertion

(A): Depreciation is added to the net profit before tax.

Reason (R): Depreciation is a non-cash item which is an expense. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

35. Assertion

(A): Buy-back of equity shares comes under financing activities.

Reason

(R): Financing activities are the activities which result in change in size composition of owner's capital and borrow of the enterprise from other sources. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

11

(3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

36. Pick the odd one out: (1) (2) (3) (4)

Admission of Partner Death of a Partner Retirement of a Partner Dissolution of the Partnership firm

37. At the time of forfeiture, share Capital Account is debited with: (1) Market Value of Shares (2) Paid-up Value of Shares (3) Called-up Value of Shares (4) Nominal Value of Shares

38. An example of Cash Flows from Operating Activity is : (1) Land and Building Purchase for Real Estate Business (2) Land and Building sale for real Estate Business (3) Rent Received (4) All of the above

39. Out of following items, which one is shown in the Receipts and Payments Account? (1) Outstanding Salary (2) Depreciation (3) Life Membership Fees (4) Accrued Subscription

40. Which of the following is not a cash outflow? (1) (2) (3) (4)

Increase in Prepaid Expenses Increase in Debtors Increase in Stock Increase in Creditors

41. Which of the following statement is false? (1) Debenture is a form of public borrowing. (2) It is customary to prefix debentures with the agreed rate of interest (3) Debenture interest is a charge against profits. (4) The issue price and redemption value of debentures cannot differ.

42. Identify the journal entry for transferring salaries

paid to the Active Partner A to the Profit and loss Appropriation A/c. (1) Profit and Loss Appropriation A/c  Dr. To Salary A/c (Being Salary transferred to Profit and Loss Appropriation Account) (2) Profit and Loss Appropriation A/c  Dr. To A’s Capital A/c (Being Salary transferred to Profit and Loss Appropriation Account) (3) A’s Capital A/c Dr. To Profit and Loss Appropriation A/c (Being interest on drawings transferred to Profit & Loss Appropriation A/c) (4) Salary A/c Dr. To A’s Capital A/c (Being interest on drawings transferred to Profit & Loss Appropriation A/c)

12

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

43. Which of the following is not included in cash and cash equivalents? (1) Balances with banks

(2) Bank deposits with 100 days of maturity (3) Cheques and drafts in hand (4) Cash on hand

44. Mohit and Govind were partners in a firm in the ratio of 1 : 2. They admitted Ravi for 1/5th share in profits. He brought ` 2,50,000 for capital but could not bring goodwill. The goodwill of the firm was valued at ` 3,00,000. What Journal Entry will be passed for the treatment of goodwill ? (1) Asset A/c

Dr.

60,000

Dr. Dr.

20,000 40,000 60,000

Dr.

To Mohit’s Capital A/c To Govind’s Capital A/c

45. Govind,

46. Debentures that do not carry any charge or security on assets of the company are known as: (1) Secured Debentures (2) Unsecured Debentures (3) Convertible Debentures (4) Registered Debentures

47. If there is a 'Match Fund', then match expenses and

incomes are transferred to: (1) Income and Expenditure Account (2) Assets side of Balance Sheet (3) Liabilities side of Balance Sheet (4) Both Income and Expenditure Account and to Balance Sheet

48. Unrecorded liability when paid on dissolution of a 60,000

To Ravi’s Capital A/c

(4) Ravi’s Capital A/c

60,000

To Goodwill A/c

(3) Mohit’s Capital A/c Govind’s Capital A/c

60,000

To Ravi’s Capital A/c

(2) Cash A/c

Dr.

(3) b  y debiting retiring partners’ capital accounts from his share of goodwill (4) None of the above

firm is transferred to : (1) Realisation Account (2) Partners’ Capital Accounts (3) Liability Account (4) None of the above

49. Revenue

60,000 20,000 40,000

Hari and Pratap are partners. On retirement of Govind, the goodwill already appears in the Balance Sheet at ` 24,000. The goodwill will be written-off : (1)  by debiting all partners’ capital accounts in their old profit sharing ratio (2)  by debiting remaining partners’ capital accounts in their new profit sharing ratio

from sale of goods manufactured is shown in the Statement of Profit and Loss as : (1) Revenue from Operations (2) Other Income (3) Both (1) and (2) (4) None of the above

50. In

the absence of Partnership Deed, interest on loan of a partner is allowed : (1) at 8% per annum (2) at 6% per annum (3) at 12% per annum (4) no interest is allowed

nnn

SAMPLE

Question Paper Maximum Marks : 200

4

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Subscription

received by a school for organising annual function is treated as: (1) Capital Receipt (i.e., Liability) (2) Revenue Receipt (i.e., Income) (3) Asset (4) Earned Income

2. Assertion

(A): The equity shareholders are paid dividend on the shares held by them.

Reason

(R): As the equity shareholders are the owners and dividend form their earning. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

3. Assertion (A): On retirement, of a partner the old

partnership agreement comes to an end and a new partnership agreement comes into existence between the remaining partners.

Reason (R): Retirement of the partnership leads to the reconstitution of the firm. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

4. When only Partner‘s Capital Account is maintained all the adjustments are made in : (1) Partners’ Capital Accounts (2) Partners’ Current Accounts (3) Cash Account (4) None of the above

5. Loss on issue of debentures is treated as __________. (1) (2) (3) (4)

intangible asset current asset current liability miscellaneous expenditure

6. Legend can be repositioned on the chart : (1) (2) (3) (4)

anywhere on the corner only on the right side only on the bottom of X-axis

7. Which

of the following is false with respect to debentures ? (1) They can be issued for cash. (2) They can be issued for consideration other than cash (3) They can be issued as collateral security. (4) They can be issued in lieu of dividends.

8. Amla,

Bimal and Kavita were partners sharing profits and losses in the ratio of 4 : 3 : 1. Bimla retires and gives her share of profit to Amla for ` 3,600 and to Kavita for ` 3,000. The gaining ratio of Amla and Kavita will be : (1) 4 : 5 (2) 2 : 1 (3) 6 : 5 (4) 4 : 1

14

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

9. Source of income for a not-for-profit organisation a/an: (1) Subscription from members (2) Donation (3) Entrance Fees (4) All of these

10. Premium on Redemption of Debentures Account is a: (1) asset (3) liability

(2) expense (4) revenue

11. If 400 shares of ` 100 issued at a premium of ` 30

on which the full amount has been called and ` 80 (including premium) have been received are forfeited, the share forfeiture account should be credited with:

(1) ` 20,000 (3) ` 28,000

(2) ` 25,000 (4) ` 12,000

12. At the time of dissolution, all assets are transferred to Realisation Account at their: (1) Realised value (2) Market value (3) Book value (4) Cost or market price whichever is less.

(1) (2) (3) (4)

Calls-in-advance Calls-in-arrear Share Capital Suspense Account

19. Ideal Proprietary Ratio should be___________. (1) 25% (3) 75%

(2) 50% (4) 90%

20. In the event of death of a partner, the amount of General Reserve is transferred to Partners’ Capital Accounts in their: (1) New Profit Sharing Ratio (2) Old Profit Sharing Ratio (3) Capital Ratio (4) None of the above

21. Which command reverse the last action performed in the worksheet? (1) Ctrl+Z (3) Ctrl +Y

(2) Ctrl+P (4) Ctrl +C

22. The

difference between subscribed capital and called up capital is called : (a) Calls-in-arrear (b) Calls-in-advance (c) Uncalled capital (d) None of these

13. Which of the following will not be recorded in the 23. Which of the following represents capital receipt? Current Account? (1) Interest on capital (2) Interest on drawings (3) Partner’s Commission (4) Additional capital brought by a partner

14. Interest on Loans given by a financial company is shown in the Statement of Profit and Loss as : (1) Revenue from Operations (2) Other Income (3) Sundry Expenses (4) None of the above

15. Reserve share capital means : (1) Part of authorised capital to be called at the beginning (2) Portion of uncalled capital to be called only at liquidation (3) Over subscribed capital (4) Under subscribed capital

16. The

ratio which is computed to determine the sacrifice of the old partners made in favour of new partner which is admitted into partnership is : (1) Gaining Ratio (2) Old Profit Sharing Ratio (3) New Profit Sharing Ratio (4) Sacrificing Ratio

17. The

most commonly used tools for financial analysis are : (1) Horizontal analysis (2) Vertical analysis (3) Ratio analysis (4) All of these

18. When full amount is due on any call but it is not received, then the short fall is debited to :

(1) (2) (3) (4)

Life membership subscription Donation Subscription Interest on investments

24. Accumulated losses at the time of dissolution are transferred to: (1) Realisation Account (2) Partners' Capital Account (3) Cash Account (4) None of the above

25. Amount

from current assets is realised within ___________. (1) one month (2) one year (3) two years (4) three years

26. Which

of the following does not result into reconstitution of a partnership firm ? (1) Dissolution of partnership firm (2) Dissolution of partnership (3) Change in profit sharing ratio among existing partners (4) Death of a partner

27. When

debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to: (1) Statement Profit & Loss (2) Debenture Application and Allotment Account (3) Loss on Issue of Debentures Account (4) Premium on Redemption of Debentures Account

28. What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner?

Sample Question Papers (1) Retiring Partner's Capital A/c Dr.    To Goodwill A/c (2) All Partner's Capital A/c (including retiring) Dr. (in old ratio)    To Goodwill A/c (3) Remaining Partners' Capital A/c D r. (in gaining ratio)    To Goodwill A/c (4) Remaining Partners' Capital A/c D r. (in new ratio)    To Goodwill A/c

S. No.



Year

31-3-2009

31-3-2010

Outstanding Salary

6,500

6,000

Prepaid Salary

1,200

1,000

(1) `75,700 (3) `75,300

(2) `74,300 (4) `74,700

31. Financial analysis is significant because it: (1) ignores qualitative aspect (2) suffers from the weaknesses of financial statements (3) affected by personal ability and bias of the analyst (4) facilitates intra firm comparison

Krishika an alumni of IIM Ahemdabad initiated her startup Krishika Ltd. in 2018. The profits of Krishika Ltd. in the year 2019-20 after all appropriations was ` 31,25,000. This profit was arrived after taking into consideration the following items:

7,80,000

Transfer to General Reserve

8,75,000

4.

Provision for taxation

4.37,500

Additional information :

31.3.2020 (`)

31.3.2019 (`)

7,50,000

5,00,000

10,50,000

8,20,000

Trade Payable

4,50,000

3,50,000

Trade Receivables

6,20,000

5,90,000

(1) 22,50,000 (3) 39,67,500

(3) 35,62,500 (4) 44,37,500

35. Operating

profit before working capital changes will be ` _______ . (1) 52,17,500 (2) 64,67,500 (3) 39,67,500 (4) 39,69,500

36. Cash

from operating activities before tax will be `__________.

(1) 35,57,500 (3) 37,87,500

(2) 40,67,500 (4) 35,67,300

37. Cash

flow from Operating Activities will be ` ___________. (1) 39,95,000 (2) 31,20,000 (3) 40,67,500 (4) 31,00,000

38. Ram

and Shyam were equal partners in a 1 partnership. They admitted Mohan for th share. 4

33. In

the following information and answer the given questions:

Goodwill written off

3.

12,50,000

34. Net Profit before Tax will be ` ____________.

statement is issued before the issue of shares ? (1) Prospectus (2) Articles of Association (3) Memorandum of Association (4) All of these

I. Read

2.

Inventory

32. Which

Fluctuating Capital Method, the capital of a partner ___________. (1) Unchanged (2) Fluctuates from time to time (3) Fluctuates only at the beginning of the year but is fixed at the end (4) Maintained

Gain on sale of fixed tangible assets

Prepaid Expenses

30. Salary

paid for the year ended 31st March, 2010 amounted to `75,000. How much amount will be recorded in Income and Expenditure Account in the following case?

Amount (in `)

1.

Particulars

29. Which

type of accounting software offers a comprehensive integration of various business functions, including accounting? (1) Custom-built accounting software. (2) Commercial accounting software. (3) Online/cloud-based accounting software. (4) Enterprise resource planning (ERP) systems.

Particulars

15



He acquired his share equally from Ram and Shyam. Consider the statements below : (I) Ram and Shyam both will sacrifice equally to Mohan. (II) Ram's sacrificing ratio is more than that of Shyam. (III) The new profit sharing ratio of Ram, Shyam and Mohan will be 11 : 6 : 5. Choose the correction option : (1) Only (I) is correct. (2) Only (II) is correct. (3) Only (III) is correct. (4) All of the above

39. Prabhu

wants to know the main objective of Common Size Statement, help him to choose one: (1) To present the changes in various items (2) To provide for a common base for comparison (3) To establish relationship between various items (4) All of the above

40. _____

should be considered when comparing different computerised accounting software packages.

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

16

(1) (2) (3) (4)

User interface and ease of use. Functionality and modules available. Scalability and suitability for the business. All of the above.

41. A company issued 1,000,12% Debentures of `100 each at 10% premium. 12% stands for: (1) rate of dividend (2) rate of tax (3) rate of interest (4) none of these

42. Which account is prepared when past adjustments are to be made? (1) Profit and Loss Appropriation Account (2) Profit and Loss Adjustment Account (3) Both (1) and (2) (4) Neither (1) nor (2)

43. Which

of the following is not an investing cash

flow? (1) Purchase of marketable securities for ` 25,000 cash (2) Sale of land for ` 28,000 for cash (3) Sale of 2,500 shares (held as investment) for ` 15 each (4) Purchase of equipment for ` 500 cash

44. Which

account will be prepared to record the adjusting amount of assets and liabilities? (1) Profit and Loss Appropriation Account (2) Profit and Loss Adjustment Account (3) Realisation Account (4) Revaluation Account

45. At

the time of retirement of a partner, profit on revaluation will be credited to the capital accounts of : (1) Retiring Partner (2) All partners in their old profit sharing ratio (3) The remaining partners in their old profit sharing ratio (4) The remaining partners in their new profit sharing ratio

46. Own

debentures are those debentures of the company, which: (1) the company allots to its promoters. (2) the company allots to its directors. (3) the company purchases from the markets and hold them as investments. (4) none of these

47. The

amount received from sale of old sports

materials by an organisation will be shown in which of the following? (1) Debit side of Income and Expenditure Account (2) Liabilities side of Balance Sheet (3) Credit side of Income and Expenditure Account (4) Assets side of Balance Sheet

48. At

the time of dissolution of the firm, at which

stage the balance of the partner's capital accounts is paid? (1) After making the payment to third party's loans. (2) Before making the payment of partners in respect of their loans. (3) After making the payment to third party for their loans as well as partners in respect of their loans. (4) None of the above

49. Pick the odd one out : (1) (2) (3) (4)

Shareholders’ funds Reserves and Surplus Non-current liabilities Current Liabilities

50. Fluctuating capital account is credited with : (1) (2) (3) (4)

Interest on capital Profit of the year Remuneration of partners All of the above

nnn

SAMPLE

Question Paper Maximum Marks : 200

5

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Outstanding

expenses and the incomes received for next year will be shown under: (1) Assets and Liabilities side of the Balance Sheet (2) Liabilities and assets side of the Balance Sheet (3) Liabilities side of the Balance Sheet (4) Assets side of the Balance Sheet

2. Share Application Account is : (1) Personal Account (2) Real Account (3) Nominal/ Account (4) None of these

3. Pick the odd one out : (1) (2) (3) (4)

General Reserve Workman’s Compensation Reserve Debit balance of Statement of Profit & Loss Reserve fund

4. The

maximum number of partners allowed in a partnership firm are : (1) 50 (2) 100 (3) 200 (4) 400

5. Premium on redemption of debentures is generally provided at the time of: (1) issue of debentures (2) redemption of debentures (3) writing off . (4) after 10 years

Assets Machinery

(1) ` 44,000 (3) ` 32,000

(2) ` 48,000 (4) ` 50,000

7. Computerised Accounting System refers to: (1) Printing of Balance Sheet and Profit and Loss account using computer (2) Processing of accounting transaction through computer and producing records and reports (3) Processing of accounting related data and printing reports (4) Data, Report, Ledger, Hardware

8. Retiring partner’s share of goodwill is debited to remaining partners in their : (1) Capital Ratio (2) Gaining Ratio (3) New Profit Sharing Ratio (4) None of the above

9. The Receipts and Payments Account is a summary of: Debit and Credit balance of Ledger Accounts Cash Receipts and cash Payments Expenses and Incomes Assets and Liabilities

10. Debentures can be redeemed out of:

and Vijay are partners in a firm sharing profits and losses in the ratio of 5 : 1. Balance Sheet (Extract) Liabilities

of machinery in the balance sheet is undervalued by 20%, then at what value will machinery be shown in new balance sheet ?

(1) (2) (3) (4)

6. Arun

Amount (`)

If value

Amount (`) 40,000

(1) profit (3) Provision

(2) Capital (4) All of these

11. A joint stock company is : (1) (2) (3) (4)

An artificial legal person Natural person A general person None of these

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

18 12. At

the time of the firm's dissolution, the balance of General Reserve shown in the Balance Sheet is credited to: (1) Realisation Account (2) Creditor's Account (3) Partners' Capital Account (4) Profit & Loss Account

17. Which SQL statement is used to retrieve data from a database table? (1) INSERT (3) DELETE

(2) UPDATE (4) SELECT

18. Equity shareholders are : (1) Customers (3) Debtors

(2) Creditors (4) Owners

13. The Journal Entry to transfer interest on capital to I. Read Profit and Loss Appropriation Account would be : (1) (2) (3) (4)

Interest on Capital A/c Dr.    To Profit & Loss Appropriation A/c Profit & Loss Appropriation A/c Dr.    To Interest on Capital A/c Profit & Loss A/c Dr. Partner’s Current A/c Dr.    To Interest on Capital A/c None of the above

14. Assertion

(A): Financial statements are the end products of accounting process which reveal the financial results of a specified period and financial position as on a particular date.

Reason (R): The basic objective of these statements

is to provide information required for decision making by the management as well as other outsiders who are interested in the affairs of the undertaking, as per Section 129 Schedule III to the Companies Act, 2013 every year. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

15. Assertion

(A): A share is a fractional part of the share capital and forms the basis of ownership interest in a company.

Reason (R): Shares refer to the units into which the

total share capital of company is divided. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

16. How is goodwill treated when there is a change in

the profit sharing ratio? (1) The gaining partners give the amount of goodwill to the sacrificing partner. (2) The gaining partners give the proportionate amount of goodwill to the sacrificing partner. (3) The sacrificing partner gives the amount of goodwill to the gaining partner. (4) The sacrificing partner gives the proportionate amount of goodwill to the gaining partner.

the following information and answer the given questions: Year

2020

2019

2018

Amount

(In `)

(In `)

(In `)

Outstanding Expenses

50,000

40,000

25,000

3,00,000

2,50,000

3,50,000

Trade Payables

18,00,000 16,00,000

14,00,000

Inventory

12,00,000 10,00,000

11,00,000

Trade Receivables

11,00,000

8,00,000

10,00,000

Cash in hand

17,00,000 12,00,000

15,00,000

Revenue from operations

24,00,000 18,00,000

20,00,000

Prepaid Expenses

Gross Profit Ratio

12%

15%

18%

19. Current

Ratio for the year 2020 will be_____. (Choose the correct alternative) (1) 2 : 1 (2) 1.8 : 1 (3) 2.32 : 1 (4) 2.4 : 1

20. Quick Ratio for the year 2018 will be_____________. (Choose the correct alternative) (1) 1.75 : 1 (2) 1.8 : 1 (3) 0.94 : 1 (4) 1.25 : 1

21. Inventory

turnover ratio for the year 2020 will be______.(Choose the correct alternative) (1) 1.62 times (2) 1.82 times (3) 1.55 times (4) 1.92 times

22. Cost of Revenue from Operations for the year 2020 would be ______________. (1) ` 21,12,000 (2) ` 21,13,000 (3) ` 21,15,000 (4) ` 21,17,000

23. Donations

for specific purpose are always capitalised and it is transferred to______, irrespective of the fact whether the amount is big or small. (1) Assets side of the Balance Sheet (2) Liabilities side of the Balance Sheet (3) Income side of the Income and Expenditure Account (4) None of the above

24. In the event of dissolution of a partnership firm, the provision for doubtful debts is transferred to:

Sample Question Papers (1) (2) (3) (4)

Realisation Account Partner's Capital Accounts Sundry Debtors Account None of these

25. A

, B, and C were partners sharing profits and losses in the ratio of 4 : 3 :1. B retires and gives her share of profit to A for `7,200 and to C for `6,000. The gaining ratio of A and C will be: (1) 4 : 5 (2) 2 : 1 (3) 6 : 5 (4) 4 : 1

26. A, B and C are partners in a firm. If D is admitted as a new partner : (1) Old firm is dissolved. (2) Old firm and old partnership is dissolved. (3) Old partnership is reconstituted. (4) None of the above.

27. Debentures can be redeemed out of: (1) profit (3) Provision

(2) Capital (4) All of these

28. An account operated to ascertain the loss or gain at the time of death of a partner is called: (1) Realisation Account (2) Revaluation Account (3) Executor's Account (4) Deceased Partner's Account

29. Securities Premium is shown under which head in the Balance Sheet ? (1) Reserves and Surplus (2) Miscellaneous Expenditure (3) Current Liabilities (4) Share Capital

30. If a general donation of smaller amount is received by a school, that donation will be shown in: (1) Liability side (2) Asset side (3) Debit side of Receipts and Payments Account (4) Credit side of Receipts and Payments Account

31. Which of the following cannot be identified with

the help of Comparative Statement of Profit and Loss? (1) Rate of increase or decrease in revenue from operations (2) Rate of increase or decrease in Trade Receivables (3) Rate of increase or decrease in incomes and expenses (4) Rate of increase or decrease in net profit

32. Shares may be issued : (1) At par (3) At Discount

(2) At Premium (4) Both (1) and (2)

33. Pick the odd one out : (1) (2) (3) (4)

Interest on capital Salary to partner Commission to partner Interest on drawings

19

34. Dividend

received by other than financial enterprise is shown in cash flow statement under : (1) Operating activity (2) Financing activity (3) Investing activity (4) None of the above

35. If 12% Preference share capital of ` 20,00,000 were

redeemed at a premium of 5%, while preparing Cash Flow Statement, Cash Flow will be:

(1) (2) (3) (4)

Cash used is Financing Activities ` 22,40,000 Cash used in Financing Activities ` 23,40,000 Cash used in Financing Activities ` 20,00,000 Cash used in Financing Activities ` 21,00,000

36. Select out of the following that leads to the need of codification: (1) The encryption of data (2) To secure various accounts (3) To keep proper records (4) To allot codes

37. Capital included in the liabilities of a company is called : (1) Authorised Capital (2) Issued Capital (3) Subscribed Capital (4) Paid-up Capital

38. In

case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from: (1) Operating Activities (2) Financing Activities (3) Investing Activities (4) None of these

39. The

purpose of an audit trail in a computerised accounting system is: (1) To track user activities and monitor system performance. (2) To generate financial reports and statements. (3) To automate financial calculations. (4) To ensure data security and prevent unauthorised access.

40. Which of the following is not an inflow of cash? (1) (2) (3) (4)

Purchase of tangible asset Funds from operations Issue of Long-term Borrowings (Debentures) Sale of plant

41. In case of issue of debentures as collateral security for a loan from the bank, which account will be debited? (1) Bank Account (2) Bank Loan Account (3) Debentures Account (4) Debentures Suspense Account

42. Which of the following statements is not true? (1) All partners share profit and losses equally in the absence of a partnership deed. (2) A minor can be admitted as a partner, only into the benefits of the partnership.

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

20

(3) A sleeping partner is allowed to sleep during a meeting of the partners. (4) None of the above

43. Salary to staff is shown as _________ activity for

44.

Investment was `4,000. The closing balance of Prize Fund will be: (1) `56,500 (3) `39,900

(2) `64,500 (4) `31,900

finance company and _________ activity for nonfinance company. (1) Operating; Operating (2) Operating; Investing (3) Operating; Financing (4) Investing; Operating

48. On dissolution of the firm, ______ will be debited

Pick the odd one out : (1) Increase in assets (2) Increase in liabilities (3) Decrease in liabilities (4) Taking an unrecorded asset in books

49. In the Common Size Balance Sheet figure of ______

45. A, B and C are partners sharing profits in the ratio

of 4 : 3 : 2. B retires and his share was taken up by A and C in the ratio 3 : 2. New profit sharing ratio will be: (1) 16 : 29 (2) 29 :16 (3) 3 : 2 (4) 2 : 3

46. Debenture holders are the: (1) (2) (3) (4)

47. The

Customers of the Company Owners of the Company Creditors of the Company None of these

opening balance of Prize Fund was `32,800. 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

to the Realistion Account. (1) Realistion expenses paid by the partner (2) Balance of Reserve Fund (3) Amount of Unrecorded Asset (4) Creditor’s balance shown in the Balance Sheet is assumed to be 100. (1) fixed assets (3) share capital

(2) total assets (4) current liabilities

50. If the interest on capital is omitted, what will be the

journal entry during the situation? (1) Profit & Loss Adjustment A/c Dr. To Partners’ Capital/Current A/cs (Being adjustment made for interest on capital previously omitted, now carried out) (2) Profit & Loss A/c Dr. To Partners’ Capital/Current A/cs (Being adjustment made for interest on capital previously omitted, now carried out) (3) Partners’ Capital/Current A/cs Dr. To Profit and Loss Appropriation A/c (Being adjustment made for interest on capital previously omitted, now carried out) (4) Profit and Loss Appropriations A/c Dr. To Profit and Loss A/c (Being adjustment made for interest on capital previously omitted, now carried out)

nnn

SAMPLE

Question Paper Maximum Marks : 200

6

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Assertion

(A): The Subscription received during the year is recorded in the Receipts and Payments Account. Reason (R): Receipts and Payments Account records all the cash transactions whether pertaining to the current year or previous year. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

2. Assertion (A): Preference shareholders are given a

fixed rate of dividend even if the company earns no profit. Reason (R): The preference shares have preferential right of dividend to be paid as fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income tax. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

3. Retiring partner is compensated for parting with the firm's future profits in favour of remaining partners. The remaining partners contribute to such compensation amount in:

(1) Gaining Ratio (3) Capital Ratio

(2) Sacrificing Ratio (4) Profit Sharing Ratio

4. If

the interest on drawings is omitted to be recorded, what will be the journal entry? (1) Profit & Loss Adjustment A/c Dr. To Partners’ Capital/Current A/cs (Being adjustment made for interest on drawings previously omitted, now carried out) (2) Profit & Loss A/c Dr. To Partners’ Capital/Current A/cs (Being adjustment made for interest on drawings previously omitted, now carried out) (3) Partners’ Capital/Current A/cs Dr. To Profit and Loss Adjustment A/c (Being adjustment made for interest on drawings previously omitted, now carried out) (4) Profit and Loss Appropriation A/c Dr. To Profit and Loss A/c (Being adjustment made for interest on drawings previously omitted, now carried out)

5. No Debenture Redemption Reserve is required for debentures issued by : (1) (2) (3) (4)

Manufacturing companies Infrastructure companies Banking companies Trading companies

6. How

many blank worksheet(s) are shown, by default when a new workbook is created?

(1) One (3) Three

(2) Two (4) Four

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

22

7. Shashi

Ltd. decided to redeem its 8,000, 11% Debentures of ` 100 each at a premium of 10 %. The minimum amount transferred to Debenture Redemption Reserve will be: (assume that the company is not listed)

(1) ` 8,00,000

(2) ` 4,00,000

(3) ` 2,00,000

(4) ` 2,20,000

8. Anil, Bimal and Chetan are partners sharing their profits and losses in the ratio of 4 : 3 : 2. On 1.7.2019, Chetan retired and on that date the capitals of Anil, Bimal and Chetan after all necessary adjustment! stood at `75,000, `65,000 and `45,000 respectively. Anil and Bimal continued to carry the business for 6 months without settling Chetan's account. During the period of six months ending 31st December, 2019, a profit of `50,000 is earned by the firm. Keeping Chetan's interest in mind, the amount payable to Chetan will be: (1) `1,350

(2) `13,362

(3) `12,162

(4) `1,362

9. The need of codification is: (1) (2) (3) (4)

To secure the account, reports etc. Easy to process data, keeping proper records The encryption of data The generation of mnemonic code

10. A debenture is a: (1) loan certificate (3) credit certificate

(2) cash certificate (4) none of these

11. If a share of ` 10 on which ` 8 has been called and

` 6 has been paid is forfeited, the Share Capital Account should be debited with : (1) ` 8 (2) ` 10 (3) ` 6 (4) ` 2

12. A partnership firm is compulsorily dissolved: (1) When the business of the firm is declared illegal. (2) When a partner of the firm dies. (3) When a partner of the firm becomes insolvent. (4) When a partner transfers his share to some other person without the consent of other partners.

13. Guarantee of profit to a partner is given by : (1) (2) (3) (4)

14. The

Only one partner of the firm Only two partners of the firm All the partners of the firm Any of the above

Balance Sheet provides information about financial position of an enterprise: (1) over a period of time (2) during a period of time (3) for a period of time (4) at a point of time

15. When

shares are forfeited, the Share Capital Account is debited with the: (1) Nominal value of Shares (2) Market value of Shares (3) Called-up value of Shares (4) Paid-up value of Shares

16. If

goodwill is not brought in cash by the new partner, it should be debited to his _______ Account. (1) Current (2) Capital (3) Loan (4) Either (1) or (2)

17. Which

of the following is not a tool of financial statement analysis? (1) Comparative Income Statement (2) Comparative Position Statement (3) Statement of Profit and Loss (4) Cash Flow Statement

18. If the loss on reissue of shares is less than the amount forfeited, the ‘surplus’ or profit is transferred to : (1) Capital Reserve (2) Revenue Reserve (3) Profit & Loss A/c (4) None of these

I. Consider

the following data and answer the questions that follow: Particulars

`

Revenue From Operations Cost of Revenue from Operations

12,00,000 9,00,000

Operating Expenses

15,000

Inventory

20,000

Other Current Assets

2,00,000

Current Liabilities

75,000

Paid up Share Capital

4,00,000

Statement of Profit & Loss (Dr.) Total Debt

47,500 2,50,000

19. What is the Operating ratio? (1) 75.62% (3) 76.25%

(2) 75% (4) 76%

20. What is the quick ratio? (1) 2.67:1 (3) 2:1

(2) 2.17:1 (4) 3:1

21. What is the Debt to Equity Ratio? (1) 0.75:1 (3) 2:1

(2) 1:2 (4) 0.63:1

22. What is working capital turnover ratio? (1) 8 times (3) 7.28 times

23. Credit

(2) 8.28 times (4) 8.78 times

side balance in Income and Expenditure Account reveals: (1) Excess of cash receipts over payments (2) Excess of cash payments over receipts

Sample Question Papers (3) Excess of expenditure over income (4) Excess of income over expenditure

24. On dissolution of a firm, a partner paid `700 for the firm's realisation expenses. Which account will be debited? (1) Cash Account (2) Realisation Account (3) Capital Account of the Partner (4) Profit & Loss Account

25. As

per _______ of the Indian Partnership Act, a retiring partner becomes entitled to profits after retirement if his dues remain unpaid. (1) Section 73 (2) Section 26 (3) Section 4 (4) Section 37

26. The accumulated profit of the firm will be recorded in which of the following accounts at the time of admission of a new partner? (1) Revaluation Account (2) Old Partner’s Capital Account (3) Profit and Loss Account (4) All Partner’s Capital Account

27. Excess

value of Purchase Consideradon over Net Assets at the time of purchase of business is credited to: (1) General Reserve Account (2) Capital Reserve Account (3) Vendors' Account (4) Goodwill Account

28. On the retirement of Hari from the firm of 'Hari, Ram

and Sharma' the Balance Sheet showed a debit balance `12,000 in the Profit and Loss Account. For calculating the amount payable to Hari this balance will be transferred: (1) to the credit of the capital accounts' of Hari, Ram and Sharma equally. (2) to the debit of the capital accounts of Hari, Ram and Sharma equally. (3) to the debit of the capital accounts of Ram and Sharma equally. (4) to the credit of the capital accounts of Ram and Sharma equally.

29. Which

security measure is necessary to protect sensitive financial data in a computerised accounting system? (1) Using weak and easily guessable passwords. (2) Disabling data backups. (3) Implementing regular data backups. (4) Granting unrestricted access to financial data.

30. Subscription

received in advance during the current year is: (1) An income (2) An asset (3) A liability (4) None of these

31. Common Size Statements are prepared : (1) (2) (3) (4)

in the form of percentages in the form of ratios both option (1) and (2) neither option (1) nor option (2)

23

32. Z & Co. forfeited 100 shares of `

10 each for nonpayment of final call of ` 2 per share. All the forfeited shares were re-issued at `9 per share. What amount will be transferred to Capital Reserve A/c ? (1) ` 700 (2) ` 800 (3) ` 900 (4) ` 1,000

33. In the absence of Partnership Deed, the profits of a

firm are divided among the partners : (1) In the ratio of Capital (2) Equally (3) In the ratio of time devoted for the firm’s business (4) According to the managerial abilities of the partners

34. In cash flows, when a firm invests in Fixed Assets and Short-term Financial Investments results in: (1) Increased Equity (2) Increased Liabilities (3) Decreased cash (2) Increased cash

35. Cash flow example from a financing activity is: (1) (2) (3) (4)

Payment of Dividend Receipt of Dividend on Investment Cash Received from Customers Purchase of Fixed Asset

36. How

many blank worksheet(s) are shown, by default when a new workbook is created?

(1) One (3) Three

(2) Two (4) Four

37. Forfeiture of shares results in the reduction of: (1) (2) (3) (4)

Paid-up Capital Authorised Capital Fixed Assets Reserve Capital

38. Amongst the following 'Payment of bonus to the

employees' by an insurance company is which type of activity? (1) Operating Activity (2) Investing Activity (3) Financing Activity (4) Both Operating and Financing Activity

39. If there is no 'Match Fund', then match expenses

are transferred to: (1) Income and Expenditure Account (2) Assets side of Balance Sheet (3) Liabilities side of Balance Sheet (Deducted from Match Fund) (4) Debit side of Income and Expenditure Account

40. Which of the following transactions will result into

'Flow of Cash'? (1) Deposited ` 10,000 into bank (2) Withdrew cash from bank ` 14,500 (3) Sale of machinery of the book value of ` 74,000 at a loss of ` 9,000 (4) Converted ` 2,00,000 9% debentures into equity shares.

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

24

41. According

to SEBI guidelines, what percentage of the amount of debentures must be transferred to Debenture Redemption Reserve, before the commencement of redemption of debentures, in the case of convertible debentures? (1) 25% (2) 50% (3) 100% (4) Zero

42. Goodwill is a/an ___________ asset. (1) Tangible (3) Not an asset

(2) Intangible (4) None of the above

43. When debentures are issued at a discount and are redeemable at a premium, which of the following account is debited at the time of issue? (1) Debentures Account (2) Premium on Redemption Debentures Account (3) Loss on Issue of Debentures Account (4) Statement of Profit & Loss

44. A and B are partners sharing profit in the ratio of 3 : 2. They admit C as a partner by giving him 1/3rd share in future profits. The new ratio will be : (1) 12 : 8 : 5 (2) 8: 12 : 5 (3) 5 : 5 : 12 (4) None of these

45. At

the time of retirement, amount remaining in Investment Fluctuation Reserve after meeting the fall in value of Investments is: (1) Credited in Sacrificing Ratio (2) Credited in New Profit Sharing Ratio (3) Credited in Old Profit Sharing Ratio (4) Credited in Gaining Ratio

46. If

debentures purchased in the open market are

not immediately cancelled, they are treated as: (1) Current Assets (2) Current Liabilities (3) Investment (4) Capital

47. Amount

received from 'Special Contribution for Silver Jubilee' by a club should be treated as: (1) Capital Receipt (2) Revenue Receipt (3) Both (1) and (2) (4) Income

48. On

dissolution of the firm, loss calculated in Realisation Account is debited / credited to which account? (1) Cash Account (Credit) (2) Partners' Capital Account (Debit) (3) Partners'Capital Account (Credit) (4) Realisation Account (Debit)

49. Techniques

which are used to identify financial statements trends include: (1) Common Size Analysis (2) Percent Change Analysis (3) Returning Ratios Analysis (4) Both (1) and (2)

50. E, F and G are partners sharing profits in the ratio of 3 : 3 : 2. As per the partnership agreement, G is to get a minimum amount of ` 80,000 as his share of profits every year and any deficiency on this account is to be personally borne by E. The net profit for the year ended 31st March, 2020 amounted to ` 3,12,000. What will be the amount of deficiency to be borne by E ? (1) ` 1,000 (2) ` 4,000 (3) ` 8,000 (4) ` 2,000

nnn

SAMPLE

7

Question Paper Maximum Marks : 200

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted . (3) Real-time access to financial information. (4) Limited reporting capabilities

1. Assertion

(A): The Income and Expenditure Account is like the cash book. Reason (R): Income and Expenditure Account shows the surplus or deficit that is earned during the financial year by the non-profit organisation. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

4. Which of the following database operation is used

to combine rows from two or more tables, which are based on related columns? (1) UNION (2) JOIN (3) INTERSECT (4) DIFFERENCE

5. Debentures can be redeemed out of: (1) Profits (2) Capital (3) By converting them into shares or new debentures (4) All of the these

2. Assertion

(A): Authorised share capital is not issued to the public at once. Reason (R): Companies do not exhaust their authorised capital in the beginning but only a part of the authorised capital is issued for public subscription. Rest of the authorised capital is raised by the company in a phased manner depending on the need for funds. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

3. What

is the advantage of using a computerised accounting system over a manual system? (1) Reduced data security. (2) Higher chances of errors.

6. Avya,

Divya and Kavya were equal partners. They decided to change the profit sharing ratio to 4 : 3 : 2. For this purpose the goodwill of the firm was valued at ` 90,000. The journal entry for the treatment of goodwill on change in profit sharing ratio will be : Particulars (1)

Kavya’s Capital A/c Dr.

(2)

(4)

10,000 10,000

Dr.

10,000 90,000

To Kavya’s Capital A/c

Avya’s Capital A/c

Dr.

To Avya’s Capital A/c

Avya’s Capital A/c

Amount Amount Dr. (`) Cr. (`) 10,000

To Avya’s Capital A/c

Divya’s Capital A/c

(3)

L. F.

Dr.

To Kavya’s Capital A/c

90,000 10,000 10,000

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

26

7. Which of the following is not true about Debenture

Redemption Reserve (DRR)? (1) DDR is to be created @ 10% of the amount of debentures issued before commencement of redemption (for unlisted companies). (2) Withdrawal from DRR can be made only after 10% of debenture liability has been redeemed. (3) DRR is required in case of fully convertible debentures. (4) DRR is not required in case of debentures with a maturity period of 18 months or less.

8. In

the case of retirement, if full or part of the amount payable to the retiring partner still remains to be paid, and there is no agreement among the partners then retiring partner will get: (i) Interest @ 6% p.a. on the Balance amount. (ii) Share of profit earned proportionate to his amount outstanding to total capital of the firm. (iii) Interest @ 9% p.a. on the balance amount. Which out of the following is correct? (1) (i) (2) (ii) (3) (iii) (4) Have a choice to get either (i) or (ii)

(1) (2) (3) (4)

14. Gain on sale of fixed assets by a financial company is shown in the Statement of Profit and Loss as : (1) (2) (3) (4)

10. Loss on Issue of Debenture Account is shown: (1) (2) (3) (4)

on Assets side of Balance Sheet on Liabilities side of the Balance Sheet on Credit side of the Profit and Loss Account none of these

11. Discount allowed on reissue of forfeited shares is debited to: (1) Share Capital A/c (2) Share Forfeiture A/c (3) Profit & Loss A/c (4) General Reserve A/c

12. Which of the following functions in an electronic

spreadsheet mainly calculate the total sum of a range of cells? (1) IF (2) VLOOKUP (3) SUM (4) COUNT

13. Ram, Shyam and Balweer are partners. They share

profit and loss equally. Ram is guaranteed to get ` 30,000 profit. Any deficiency if arises, will be borne by Shyam. During the year, they earned a profit of ` 60,000. Which of the following statement/ statements is/are correct as per the above information :

Revenue from Operations Other Income Both (1) and (2) None of the above

15. A company has_______________ (1) (2) (3) (4)

Separate Legal Entity Perpetual Existence Limited Liability All the above

16. The

account which is prepared to adjust the increase or decrease in the value of assets at the time of admission of a partner is called : (1) Realisation Account (2) Revaluation Account (3) Profit & Loss Account (4)None of these

17. Vertical Analysis is also known as : (1) Static Analysis (2) Dynamic Analysis (3) Structural Analysis (4) None of these

9. Subscription

received in cash during the year amounted to `40,000; subscription outstanding at the end of previous year was `1,500 and outstanding at the end of current year was `2,000. Subscription received in advance for next year was `800. The amount credited to Income and Expenditure Account will be: (1) `38,700 (2) `39,700 (3) `40,300 (4) `41,300

Shyam will get ` 10,000 as profit. Balweer will get ` 20,000 as profit. Ram will get ` 30,000 as profit. All of the above

18. The liability of members in a company is : (1) Limited (3) Stable

(2) Unlimited (4) Fluctuating

III. Read

the following hypothetical extract of ABC Ltd. and answer the questions that follow:

The following information are given: Trade Receivables Turnover Ratio 4 times Current Liabilities ` 5,000 Average Debtors ` 1,80,000 Working Capital Turnover Ratio 8 times Cash Revenue from Operations 25% of Revenue



Gross Profit Ratio

from Operations

1 33 % 3



19. What is the revenue from operations? (1) `9,60,000

(2) `6,40,000

(3) `1,80,000

(4) `7,20,000

20. What is the Gross Profit? (1) `7,20,000

(2) `3,20,000

(3) `9,60,000

(4) `1,80,000

21. What is the working Capital? (1) `1,20,000

(2) `1,80,000

(3) `3,20,000

(4) `2,40,000

22. What will be the value of current assets? (1) ` 1,25,000 (3) ` 1,20,000

(2) ` 5,000 (4) ` 55,000

Sample Question Papers 23. Fund Based Accounting is classified under: (i) Unrestricted funds (iii) Restricted funds (1) (i),(ii),(iii) (3) (ii), (iii), (iv)

(ii) Fixed assets funds (iv) Annuity funds (2) (i), (iii), (iv) (4) (i), (ii), (iii), (iv)

24. On taking responsibility for payment of a liability of `50,000 by a partner, the account credited will be: (1) Realistion Account (2) Cash Account (3) Capital Account of the Partner (4) Liability Account

25. ______ is the purpose of data normalisation in a database. (1) To increase data redundancy (2) To simplify data storage (3) To improve data integrity (4) To limit data accessibility

or loss equally. With effect from 1st April 2021 they agreed to share profits in the ratio of 3 : 4.

Due to change in profit sharing ratio, Avi’s gain or

(3) Gain

4 7

1 (2) Sacrifice 14 (4) Sacrifice

3 7

27. Which of the following is true with regard to 10%

Debentures issued at a discount of 20%? (1) The carrying amount of debentures gets reduced each year at a rate of 20%. (2) Issue price and the carrying amount of debentures are equal. (3) At the time of redemption, the debenture holder will be paid at the issue price. (4) The face value and the carrying amount of debentures are equal.

28. The partnership may come to an end due to the: (1) (2) (3) (4)

Death of a partner Insolvency of partner By giving notice All of these

forfeited shares is transferred to : (1) Profit & Loss A/c (2) Capital Reserve Account (3) General Reserve Account (4) None of these

30. The

following is the extract of Receipts and Payments Account of the Rajasthan Society for the year ending 31st December, 2021. Amount (`)

of medicine purchased during the year amounting to `2,000 was outstanding. The amount debited to Income and Expenditure Account will be: (1) `18,000 (2) `20,000 (3) `16,000 (4) `2,000

31. The objective of Common Size Statement of Profit

and Loss is not to : (1) judge the cost items. (2) judge the relative financial soundness for different enterprises. (3) present changes in various items of incomes and expenses. (4) establish relationship between Revenue from Operations and other items of Statement of Profit and Loss. can issue: (1) Only equity shares (2) Only preference shares (3) Preference shares and equity shares (4) None of these

33. A, B and C are partners sharing profits in the ratio of

2:3:1. As per the partnership agreement, C is to get a minimum amount of `1,00,000 as her share of profits every year and any deficiency on this account is to be personally borne by B. The net profit for the year ended 31st March, 2021 amounted to `3,00,000. What will be the amount of deficiency to be borne by B? (1) ` 50,000 (2) ` 30,000 (3) ` 20,000 (4) Nil

34. Dividend

received by a financial enterprise is shown in cash flow statement under : (1) Operating activity (2) Financing activity (3) Investing activity (4) None of these

35. Pick the odd one out : (1) (2) (3) (4)

Issue of shares in cash Issue of debentures in cash Proceeds from long-term loans Cash received as royalty

36. Ravi and Gaurav are partners in a firm. They want

29. Balance of Forfeited Shares Account after reissue of

Receipts

A bill

32. Under the provisions of Companies Act, a company

26. Avi and Babi were partners in a firm sharing profit

sacrifice will be: 1 (1) Gain 14

27

Payments By medicine

Amount (`) 18,000

to admit Dhruv for

1 th share in profit. For this, 4

they revalued their machinery from ` 30,000 to ` 40,000 and creditors from ` 1,10,000 to ` 1,00,000. What journal entry will be passed : (1) Machinery A/c Dr. Creditors A/c Dr. To Revaluation A/c (2) Machinery A/c Dr. Revaluation A/c Dr. To Creditors A/c (3) Machinery A/c Dr. To Revaluation A/c To Creditors A/c (4) None of the above

28

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

37. Right shares are the shares, which :

Additional Information:

(1) Are issued to the Director of the company (2) Are issued to existing shareholders of the company (3) Are issued to promoters in consideration of their services (4) Are issued to the vendors for purchasing assets

38. Which of the following transactions will not result into flow of cash? (1) Issue of equity shares of ` 1,00,000 (2) Purchase of machinery of ` 1,75,000 (3) Redemption of 9% debentures ` 3,50,000 (4) Cash deposited into bank ` 15,000

39. Sports expenses `27,000 (excluding `7,000 unpaid expenses). The amount to be credited to Receipts and Payments Account will be: (1) `20,000 (2) `27,000 (3) `7,000 (4) `34,000

40. Which

item comes under Financial Activities in Cash Flow statement? (1) Redemption of Preference Shares (2) Issue of Preference Shares (3) Interest Paid (4) All of these

41. When debentures are issued as collateral security, the final entry for recording the transaction in the books is ___________ . (1) credit Debentures Account and debit Cash Account (2) debit Debenture Suspense Account and credit Cash Account (3) debit Debenture Suspense Account and credit Debentures Account (4) debit Cash Account and credit the Loan Account for which security is given

42. Rehana, Shakina and Jasmine are partners. They share profit and loss in the ratio 1:2:3. Shakina is guaranteed to get `50,000 profit. Any deficiency if arises, will be borne by Rehana and Jasmine equally. During the year, they earned a profit of `6,00,000. How much money has to be given to her by Rehana and Jasmine?

Depreciation for the year 2014-2015 is ` 80,000 During

the year Machinery was purchased for ` 2,50,000 and a part of asset was sold at a profit of ` 40,000.

(1) ` 1,20,000

(2) ` 1,00,000

(3) ` 80,000

(4) ` 40,000

44. Balance in the Investment Fluctuation Reserve, after meeting the loss on revaluation of Investments, at the time of admission of a partner will be transferred to : (1) Old Partners’ Capital Accounts (2) Revaluation Account (3) Sacrificing Ratio (4) None of the above

45. For

the following particulars, calculate the new profit sharing of the partners.

Shiv,

Mohan and Hari were partners in a firm, sharing profits in the ratio of 5 : 5 : 4. Finally, Mohan retired, and his share was divided equally between Shiv and Hari.

(1) 12 : 15

(2) 15 : 13

(3) 12 : 11

(4) 10 : 14

46. Which of the following statement is false? (1) At maturity, debenture holders get back their money as per the terms and conditions of redemption. (2) Debentures can be forfeited for non-payment of call money. (3) In company's Balance Sheet, debentures are shown under secured loans. (4) Interest on debentures is a charge against profits.

47. Subscription Outstanding at the Beginning of the current year will be:

(1) `2,000 by Rehana and Jasmine each

(1) Deducted from the amount of Subscription on the credit side of Income and Expenditure Account

(2) `2,500 by Rehana and Jasmine each

(2) Added to the amount of Subscription

(3) `3,000 by Rehana and Jasmine each

(3) Shown on Assets side of the opening Balance Sheet

(4) Nil

43. From

the following information, find out the inflow of cash: 31st March, 2015

31st March, 2014

Plant and Machinery Account

` 6,00,000

` 4,50,000

Accumulated Depreciation

` 1,60,000

` 1,00,000

(4) Both (1) and (2)

48. On

dissolution, the balance of 'Profit & Loss

Account' appearing on the Assets side of the Balance Sheet is transferred to: (1) Debit side of Realisation Account (2) Credit side of Realisation Account (3) Debit side of Partner's Capital Account

Sample Question Papers (4) Credit side of Partner's Capital Account

49. Securities

Premium Reserve is shown on the

liabilities side of the Balance Sheet under the head : (1) Reserves and Surplus

29

50. Partners’ Current Accounts are opened when their Capital Accounts are : (1) Fixed (3) Fluctuating

(2) Fixed and Fluctuating (4) None of these

(2) Current Liabilities (3) Share Capital (4) None of the above

nnn

SAMPLE

Question Paper Maximum Marks : 200

8

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Subscription

received in cash during the year amount to `50,000, the amount received in advance for the next year is `5,000, the amount outstanding for the current year was `5,000. The amount to be debited to the Income and Expenditure Account is: (1) `50,000 (2) `60,000 (3) `55,000 (4) None of these

2. Assertion

(A): A new partner can be admitted into a partnership firm with the consent of all the existing partners. Reason (R): According to Section 31 of the Indian Partnership Act, 1932, a new partner shall not be introduced into a firm without the consent of all the existing partners, unless it is agreed otherwise by the partners in the partnership deed. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

3. Assertion (A): Retirement of partner is legal when

done at will and with the consent of the other partners.

Reason

(R): According to Section 32 (1) of the Indian Partnership Act, 1932, “a partner may retire from the firm with the consent of all the partners or at his will, by giving written notice to all the other partners of his intention to retire.” (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

(2) B  oth Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

4. According

to the Partnership Act, the relation of partnership arises from ________ and not from status. (1) Business (2) Statute (3) Contract (4) Consideration

5. Debenture premium cannot be used to _________ . (1) Write off the discount on issue of shares or debentures (2) Write off the premium on redemption of shares or debentures. (3) Pay dividends. (4) Write off capital loss.

6. When a new partner enters into the partnership firm, old partners _________ some part of their old share. (1) Sacrifice (2) Gain (3) Retain (4) None of these

7. Which

of the following component of a computerised accounting system tracks customer transactions? (1) General ledger. (2) Accounts receivable module. (3) Payroll module. (4) Inventory management.

Sample Question Papers 8. At

the time of retirement of a partner ‘Loss on Revaluation’ is debited : (1) only to the capital account of the retiring partner (2) to the capital accounts of all the partners in their old profit sharing ratio (3) to the capital accounts of the remaining partners in their new profit sharing ratio (4) to the capital accounts of remaining partners in their old profit sharing ratio

9. From the following which item is not entered in Income and Expenditure Account? (1) Locker's Rent (2) National Certificates (3) Entrance Fees (4) Donations

10. Which of the following statement is true? (1) A debentureholder is an owner of the company (2) A debentureholder can get his money back only on the liquidation of the company (3) A debenture issued at a discount can be redeemed at a premium (4) A debentureholder receives interest only in the event of profits

11. Which ratios measure the firm's ability to meet its short-term obligations in time? (1) Profitability Ratios (2) Liquidity Ratios (3) Activity Ratios (4) None of the above

12. In the event of dissolution of the firm, the partner's assets are first used for payment of the following: (1) Firm's liabilities (2) Partner's personal liabilities (3) None of the two (4) Any of the two

13. The Agreement of Partnership may be : (1) Oral (3) Both (1) and (2)

(2) Written (4) None of these

14. Dividend is paid on : (1) (2) (3) (4)

Authorised Capital Subscribed Capital that is paid up Issued Capital None of the above

15. Ideal Current Ratio is: (1) 1 : 1 (3) 2 : 1

(2) 1 : 2 (4) 3 : 1

16. For which of the following situations, the old profit

sharing ratio of partners is used at the time of admission of a new partner ? (1) When new partner brings only a part of his share of goodwill. (2) When new partner is not able to bring his share of goodwill. (3) When at the time of admission, goodwill already appears in the balance sheet. (4) When new partner brings his share of goodwill in cash.

17. __________software

is commonly computerised accounting. (1) Microsoft Word (2) Adobe Photoshop (3) Microsoft Excel (4) Google Chrome

used

31 for

18. Ratios

provide a___________ measure of a company's performance and condition. (1) Definitive (2) Gross (3) Relative (4) Quantitative

I. Based on below information, you are required to answer the following questions:

Nidiya

Limited was incorporated on 1st April 2017 with registered office in Mumbai. The capital clause of memorandum of Association reflected a registered capital of 8,00,000 equity shares of `10 each and 1,00,000 preference shares of `50 each.

Since

some large investments were required for building and machinery the company in consultation with vendors, M/s VPS Enterprises, issued 1,00,000 equity shares and 20,000 preference shares at par to them in full consideration of assets acquired. Besides this the company issued 2,00,000 equity shares for cash at par payable as ` 3 on application, 2 on allotment, 3 on first call and 2 on second call.

Till date second call has not yet been made and all

the shareholders have paid except Mr. Ajay who did not pay allotment and calls on his 300 shares and Mr. Vipul who did not pay first call on his 200 shares. Shares of Mr. Ajay were then forfeited and out of them 100 shares were reissued at ` 12 per share.

19. Shares issue to vendors of building and machinery, Ms. VPS Enterprises, would be classified as: (1) Preferential Allotment (2) Employee Stock Option Plan (3) Issue for consideration other than cash (4) Right Issue of Shares

20. How

many equity shares of the company have been subscribed? (1) 3,00,000 (2) 2,99,500 (3) 2,99,800 (4) None of the above

21. What is the amount of securities premium reflected in the balance sheet at the end of the year? (1) `200 (2) `600 (3) `400 (4) `1,000

22. What amount of share forfeiture would be reflected in the balance sheet? (1) `600 (3) `200

(2) `900 (4) `300

23. In Receipts and Payments Account______ balance is carried forward to the same account of the next accounting period. (1) Opening (2) Closing (3) Debit (4) Credit

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

32

24. At the time of dissolution of partnership firm, the

amount of 'Bills Payable' shown in the Liabilities Side of the Balance Sheet is transferred to: (1) Capital Accounts of Partners (2) Realisation Account (3) Cash Account (4) Loan Account of Partners

25. x,

y and z were partners. On 30th June, 2019 y retired. The extract of their balance sheet is given below : Balance Sheet [An Extract]

Liabilities Investment Fluctuation Fund

Amount (`)

Assets Investments

10,000

Amount (`) 1,00,000

[Market value ` 80,000]

What Journal Entry will be passed for the above item on Y’s retirement ? (1) Investment Fluctuation Fund A/c Dr.    To X’s Capital A/c    To Y’s Capital A/c    To Z’s Capital A/c (2) Investment Fluctuation Fund A/c Dr. Investments A/c Dr.    To X’s Capital A/c    To Y’s Capital A/c    To Z’s Capital A/c (3) Investment Fluctuation Fund A/c Dr. Revaluation A/c Dr.    To Investments A/c (4) Investments A/c Dr.   To Investment    Fluctuation Fund A/c

29. A

company issues its shares at premium under which Section of Indian Companies Act, 2013 ? (1) 78 (2) 79 (3) 52 (4) 53

30. Receipts and Payments Account features include: (1) (2) (3) (4)

Cash based Ignorance of time period Real Account All of these

31. Main objective of Common Size Balance Sheet is : (1) to present changes in assets and liabilities. (2) to present changes in various items of income and expenses. (3) to establish relationship between Revenue from Operations and other items of Statement of Profit and Loss. (4) all of the above

32. Shares can be forfeited : 10,000

10,000 20,000

10,000 10,000 10,000

3333 3333 3334

(1) (2) (3) (4)

For failure to attend meetings For non-payment of call money For failure to repay the loan to the Bank For which shares are pledged as a security

33. The partner who provides capital and shares profit 10,000 10,000 10,000

and loss in partnership business but does not take active part in the management is known as : (1) Active Partner (2) Sleeping Partner (3) Secret Partner (4) Limited Partner

34. Statement of cash flows includes: 20,000 10,000

(1) (2) (3) (4)

Financing Activities Operating Activities Investing Activities All of these

26. Anita and Babita are partners sharing profits and 35. Which of the following shall be considered as an losses as 3 : 2. Chandani is admitted and profit sharing ratio becomes 4 : 3 : 2. Goodwill is valued at `94,500. Chandani brings required goodwill in cash. Goodwill amount that will be credited by Chandani is: (1) Anita `14,000 and Babita `7,000 (2) Anita `12,000 and Babita `9,000 (3) Anita `15,000 (4) Anita `21,000

27. Debenture interest: (1) Is payable only in case of profits (2) Accumulates in case of losses and inadequate profits (3) Is payable irrespective of profit or loss (4) None of the above

outflow of cash in the Cash Flow Statement? (1) Decrease in Public Deposits (2) Issue of Share Capital (3) Increase in Accounts Payable (4) Decrease in Accounts Receivables

36. The

role of a primary key in a database table is_______. (1) It ensures data redundancy (2) It establishes relationships between tables (3) It provides a unique identifier for each record (4) It limits data retrieval operations

37. Shareholders get: (1) Interest (3) Commission

(2) Dividend (4) Profit

28. A, B and C are partners sharing profit in the ratio 38. Cash flow example from an Investing activity is: of 2 : 2 : 1. C retired. The new Profit Sharing ratio between A and B will be : (1) 2 : 1 (2) 1 : 1 (3) 3 : 1 (4) 4 : 1

(1) (2) (3) (4)

Issue of Debenture Payment of Long-term Loan Purchase of Raw Materials for Cash Sale of Investment by Non-Financial Enterprise

Sample Question Papers 39. What

is the common accounting application of electronic spreadsheets? (1) Email management (2) Data encryption (3) Financial statement preparation (4) Network administration

40. __________

reconciles the opening cash balance

with the closing cash balance of a given period on the basis of net decrease or increase in cash during that period.' (1) Cash Flow Statement (2) Fund Flow Statement (3) Both (1) and (2) (4) None of these

41. Which

of the following is not a characteristic of

Bearer Debentures? (1) They are treated as negotiable instruments. (2) Their transfer requires a deed of transfer. (3) They are transferable by mere delivery. (4) The interest on it is paid to the holder irrespective of identity.

42. When there is no partnership deed, the partners

43. Cash flow example from an operating activity is: Purchase of Own Debenture Sale of Fixed Assets Interest Paid on Term Deposits by a Bank Issue of Equity Share Capital

44. Anita

and Babita were partners sharing profits

and losses in the ratio of 3 : 1. Savita was admitted for 1/5th share in the profits. Savita was unable to bring her share of goodwill premium in cash. The journal entry recorded for goodwill premium is given below: Date

Particulars Savita's Current A/c Dr. To Anita’s Capital A/c To Babita’s Capital A/c

L.F.

(Being adjustment of goodwill premium on Savita's Admission)

The new profit sharing ratio of Anita, Babita and Savita, will be : (1) 41 : 7 : 12 (3) 3 : 1 : 1

45. When

(2) 13 : 12 : 10 (4) 5 : 3 : 2

the Balance Sheet is prepared after

retirement of a partner (subsequent to preparation of Revaluation Account), _______values are shown in it. (1) Historical (2) Realisable (3) Market (4) Revalued

46. A

Ltd. took over the assets of ` 6,60,000 and

liabilities of ` 80,000 of B Ltd. for an agreed purchase consideration of ` 6,00,000 payable 10% in cash and the balance by issue of 15% debentures of ` 100 each at 10% discount. The number of debentures to be issued is: (1) 6,600 (2) 5,400 (3) 6,000 (4) 4,500

47. A

school purchased a furniture for `80,000 and

spent `1,200 for carriage. The furniture should be capitalised for: (1) `80,000 (2) `81,200 (3) `1,200 (4) `78,800

are entitled to which of the following? (1) Salary (2) Profit share in capital ratio (3) Interest on loan and advances (4) Commission (1) (2) (3) (4)

33

Amount Amount Dr. (`) Cr. (`) 24,000 8,000 16,000

48. On

dissolution of the firm, the amount received

from the sale of the unrecorded asset is credited to: (1) Partner's Capital Accounts (2) Profit and Loss Account (3) Realisation Account (4) Cash Account

49. Comparative Statement of Profit and Loss provides information about: (1) rate of increase or decrease in Net Profit. (2) rate of increase or decrease in Revenue from Operations. (3) rate of increase or decrease in Cost of Revenue from Operations. (4) all of the above

50. Pick the odd one out : (1) (2) (3) (4)

Rent to a partner Interest on partner’s loan Interest on capital Depreciation

nnn

SAMPLE

Question Paper Maximum Marks : 200

9

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Locker's rent amount received by a school is treated as: (1) (2) (3) (4)

Income Earned Revenue Receipt Capital Receipt Liability

2. Assertion

(A): Debt to Equity Ratio of 2 : 1 is considered satisfactory. Generally a Low Ratio is considered favourable.

Reason (R): This ratio indicates the proportionate claims of owners and outsiders on firm’s assets. High Ratio shows claims of outsiders are greater but Low Ratio shows outsiders claims are less. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

3. Assertion (A): Partnership comes to an end with the death of a partner but the firm may continue its business with new partnership agreement.

Reason

(R): Death of a partner leads to the restructuring of the firm and not to the dissolution of the partnership firm. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) B  oth Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).

(3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

4. Journal

Entry to be passed in case of loss on adjustment transferred to Partner’s Current Accounts is :

(1) Profit and Loss Appropriation A/c

To Partners’ Current A/cs

(2) Partners’ Current A/cs

Dr.

To Profit and Loss Adjustment A/c

(3) Partner’s Current A/c

Dr.

Dr.

To Partner’s Capital A/c

(4) None of the above

5. 10% Debenture issued at `105 is repayable at ` 110, the face value of debenture being ` 100. Calculate the amount of loss on redemption of debentures. (1) ` 10

(2) ` 5

(3) ` 15

(4) ` 25

6. Which security measure should be implemented in a computerised accounting system? (1) Sharing passwords with colleagues. (2) Disabling data backups. (3) Implementing firewall and antivirus software. (4) Allowing unrestricted access to financial data.

7. Collateral security means _____________ security. (1) primary

(2) secondary

(3) government

(4) valuable

Sample Question Papers 8. As

per Section 37 of the Indian Partnership Act, 1932, interest @______is payable to the retiring partner if full or part of his dues remain unpaid.

(1) 9% p.a. (3) 6% p.a.

(2) 12% p.a. (4) None of these

9. Mohit

and Rohit were partners in a firm with capitals of ` 80,000 and ` 40,000 respectively. The firm earned a profit of ` 30,000 during the year. Mohit’s share in the profit will be : (1) ` 20,000 (2) ` 10,000 (3) ` 15,000 (4) ` 18,000

10. Debentures

issued as collateral security will be _______________ to Debenture Suspense Account: (1) debited (2) credited (3) sometimes debited and sometimes credited (4) none of these

11. Which of the following is a profitability ratio? (1) (2) (3) (4)

Debt to Equity Ratio Return on Investment Proprietary Ratio Quick Ratio

12. At

the time of dissolution of the firm, "Loan of partners" (Loans given by partners to the firm) is paid out of the amount realised on the sale of assets: (1) After making the payment of loans given by a third party. (2) After making the payment of the balance of capital accounts of partners: (3) After making the payment of above (1) and (2). (4) Before the payment of loans given by the third party.

13. What

will be the interest on drawing @12.5% p.a. for Abhishek if he withdraws ` 5,000 once in month? (1) ` 3,500 (2) ` 7,500 (3) ` 3,750 (4) ` 3,000

14. In a Common Size Balance Sheet, Total Liabilities are assumed to be equal to : (1) 1 (2) 10 (3) 100 (4) 1,000

15. Liquid ratio is also known as ________. (1) (2) (3) (4)

Acid Test Ratio Quick Assets Ratio Both the above None of the above

16. General

Reserve at the time of admission of a partner is transferred to : (1) Revaluation Account (2) Old Partners’ Capital Accounts (3) Neither of the two (4) Both (1) and (2)

17. Payment of Income Tax is considered as : (1) operating expenses (2) direct expenses (3) indirect expenses (4) none of these

35

18. Liquid assets = ___________. (1) Current Assets + Inventory (2) Current Assets - Inventory (3) Current Assets - (Inventory + Prepaid expenses) (4) None of the above

I. Based on below information you are required to answer the following questions:

The directors of Bhagat and Company Ltd. issued 50,000 equity shares of ` 10 each at ` 12 per share, payable as ` 5 on application including the premium, ` 4 on allotment and the balance on final call. Applications were received for 70,000 shares out of which applications for 8,000 shares were rejected and their money was refunded. Money overpaid on application was applied towards sums due on allotment. All the money were duly received except from one shareholder holding 500 shares who failed to pay the final call money.

19. What

is the amount received on application of shares? (1) `3,50,000 (2) `2,80,000 (3) `1,50,000 (4) `60,000

20. What is the amount that will be transferred to the securities premium account? (1) `1,50,000 (2) `1,00,000 (3) `60,000 (4) `40,000

21. What is the amount to be received on the Allotment of share? (1) `2,00,000 (3) `1,50,000

(2) `1,40,000 (4) `1,00,000

22. How

much money is still not paid up on the allotted shares? (1) `1,500 (2) `2,000 (3) `3,000 (4) `500

23. Which financial statement is a nominal account in case of a not-profit earning entity? (1) Income and Expenditure Account (2) Receipts and Expenditure Account (3) Income and Payment Account (4) Receipts and Payments Account

24. How can electronic spreadsheets help in budgeting and forecasting processes? (1) By sending automated email notifications (2) By providing real-time stock market updates (3) By performing complex statistical analyses (4) By organising and analysing financial data

25. If

goodwill is already appearing in the books of accounts at the time of retirement of a partner, then it should be written off in ________. (1) New Ratio (2) Gaining Ratio

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

36

35. A decrease in Outstanding Expenses would result in:

(3) Sacrificing Ratio (4) Old Ratio

26. Arun

and Barun share profits in the ratio of 2 : 1. Charan is admitted with 1/5 share in profits. Charan acquires 2/3 of his share from Arun and 1/3 of his share from Barun. The new ratio will be: (1) 2 : 1 : 1 (2) 23 : 13 : 12 (3) 8 : 4 : 3 (4) 13 : 23 : 12

27. Interest on debentures is calculated on: (1) it's face value. (3) it's book value.

(2) it's issue price. (4) its cost price.

28. A and B were partners. They shared profits as A1 , B- 1 and carried to reserve 1 . B died. The 2 3 6 balance of reserve on the date of B's death was `30,000. B's share of reserve will be: (1) `10,000 (2) `8,000 (3) `12,000 (4) `9,000

29. Premium on issue of shares is a : (1) Capital Gain (3) General Profit

(2) Capital Loss (4) General Loss

30. Ledger Folio columns are shown by: (1) (2) (3) (4)

Receipts and Payments Account Cash Book Both (1) and (2) None of these

31. What

will be the amount of Profit after Tax of Simple Limited, if :

Revenue from Operations is ` 12,00,000 Cost of Revenue from Operations is

60% of

Revenue from Operations

Operating Expenses ` 90,000 Rate of income tax is 40% (1) ` 1,56,000 (3) ` 2,34,000

(2) ` 1,92,000 (4) ` 2,88,00

32. Premium on issue of shares is shown on which side of the Balance sheet? (1) Assets

(2) Liabilities

(3) Both

(4) None of these

33. Tangible

Assets of the firm are ` 14,00,000 and outside liabilities are ` 4,00,000. Profit of the firm is ` 1,50,000 and normal rate of return is 10%. The amount of capital employed will be :

(1) ` 10,00,000

(2) ` 1,00,000

(3) ` 50,000

(4) ` 20,000

34. Which of the following is the purpose of a foreign key in a database table? (1) It enforces data redundancy (2) It establishes relationships between tables (3) It provides a unique identifier for each record (4) It limits data manipulation operations

(1) (2) (3) (4)

Decrease in cash balance Increase in cash balance Unaltered Would change the Current Liabilities

36. If at the time of admission, there is some unrecorded liability, it will be: (1) Debited to Revaluation A/c (2) Credited to Revaluation A/c (3) Transferred to Old Partner's Capital A/cs (4) Transferred to All Partner's Capital A/cs

37. Share Allotment Account is : (1) Personal A/c (3) Nominal A/c

(2) Real A/c (4) None of these

38. From

the following information, find out Cash Outflow from Financing Activities. Proposed Dividend

Year I

Year II

` 1,20,000

` 1,50,000

12% debentures ` 4,00,000 ` 5,00,000 Additional Information: Additional Debentures were issued at the end of year. Interim Dividend paid ` 50,000 Preference Share Capital Issued ` 2,00,000 (1) ` 82,000 (2) ` 2,08,000 (3) ` 2,38,000 (4) ` 2,48,000

39. Income and expenditure account is prepared by: (1) (2) (3) (4)

Trading organisations Non-trading organisations Non-profit organisations Both (2) and (3)

40. What

is the purpose of a chart of accounts in a computerised accounting system? (1) To manage customer relationships (2) To track inventory levels (3) To categorise and organise financial transactions (4) To store backup copies of data

41. Maximum limit on premium on issue of debentures is: (1) 10% (3) 15%

(2) 20% (4) No limit

42. When the profits are guaranteed by the partners on

the old profit sharing ratio, which of the following is not true? (1) Amount guaranteed to a partner is transferred to Profit and Loss Appropriation A/c. (2) Then the remaining profits are distributed among old partners / remaining partners in remaining ratio. (3) Guaranteed amount is calculated according to his share. (4) All of the above

Sample Question Papers

37

43. How much amount will be added while computing 47. Sports Net Profit before Tax? Provision for Tax

01.04.2020

31.03.2021

` 54,000

` 72,900

Tax paid during the year ended 3st March, 2021 is ` 64,800. (1) ` 64,800 (3) ` 45,900

(2) ` 83,700 (4) None of these

44. X and Y are partners in a firm sharing profits and

losses in proportion of 2:1. They admit a new partner Z for l/6th share in profit. What is the new profit-sharing ratio of X, Y and Z? (1) 5 : 3 : 10 (2) 2 : 1 : 6 (3) 1 : 1 : 1 (4) 10 : 5 : 3

45. How deceased partner's executors account settled: (1) (2) (3) (4)

Paid off immediately Paid in instalments without interest Paid in instalments with interest All of these

46. Debenture is: (1) a written instrument acknowledging a debt written by its holder (2) an oral acknowledgement of debt by a company (3) a written instrument acknowledging a debt written by its company (4) none of these

expenses of Friends Club are `27,000 (including `7,000 prepaid expenses). The amount to be credited to Receipts and Payments account will be: (1) `20,000 (2) `27,000 (3) `7,000 (4) `34,000

48. On

dissolution of a firm, realisation account is debited with: (1) All assets to be realised (2) All outside liabilities of the firm (3) Cash received on sale of assets (4) Any asset to be taken over by one of the partners

49. Operating Expenses include : (1) (2) (3) (4)

Selling and Distribution Expenses Office and Administrative Expenses Provision for Doubtful Debts All of these

50. Identify the formula for calculating goodwill with

the help of Average Profit Method. (1) Goodwill = Average Profit × No. of Years’ Purchases (2) Goodwill = Total Profit × No. of Years’ Purchases (3) Goodwill = Total Profit × No. of Years the firm has been in operation (4) Goodwill = Average Profit × 5 years

nnn

SAMPLE

Question Paper Maximum Marks : 200

10

Time : 45 Minutes

General Instructions: (i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted .

1. Accounts generally prepared by all the Non-Profit

organisations are: (1) Cash Book, Members's register, Register of Assets (2) Receipts and Payments Account, Balance Sheet (3) Cash Book, Income and Expenditure Account, Balance Sheet (4) Receipts and Payments Account, Income and Expenditure Account, Balance Sheet

2. Which of the following measures the firm's ability to meet its long-term obligations? (1) Liquid Ratios (2) Activity Ratios (3) Profitability Ratios (4) Solvency Ratios

3. Which

characteristic of a database management system (DBMS) is given below: (1) Storing data in separate files (2) Redundant data storage (3) Centralized data management (4) Limited data security

4. What is the purpose of a formula in an electronic spreadsheet? (1) To apply formatting to cells (2) To insert images and graphics (3) To perform calculations on data (4) To protect cells from editing

5. Assertion

(A): Sarita Pvt. Ltd. issued 15% 10,000 debentures at par @ `100 per debenture. The company suffered a loss but still the directors of the company paid interest on debentures. Reason (R): Interest on debenture is a charge against profits and therefore, its payment is not subject to the earning of profit.

(1) B  oth Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

6. Assertion (A): At the time of admission of a partner

if there is any General Reserve, Reserve Fund or the balance of Profit & Loss Account appearing in the balance sheet, it should be transferred to old partners’ capital/current accounts in their old profit sharing ratio.

Reason

(R): The General reserve, Reserve Fund or the Balance of Profit and Loss Account are the result of the past profits when the new partner was not admitted. (1) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). (2) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A). (3) Assertion (A) is true, but Reason (R) is false. (4) Assertion (A) is false, but Reason (R) is true.

7. When

the number of debentures applied is less than number of debentures offered to public the issue is said to be : (1) Over subscribed (2) Under subscribed (3) Fully subscribed (4) None of the above

8. A, B and C are three partners sharing profit and loss in the ratio of 3:2:1. B retires from the firm.

Sample Question Papers Suppose A and C purchase the share of retiring partners equally. What is the new profit sharing ratio? (1) 2 : 2 (2) 2 : 5 (3) 1 : 5 (4) 2 :1

9. Final

Accounts which constitute the financial statements of a not-for-profit organisation at the end of the year: (1) Income and Expenditure Account, Balance Sheet (2) Receipts and Payments Account, Balance Sheet (3) Cash Book, Members Register, Register of Assets (4) Receipts and Payments Account, Income and Expenditure Account, Balance Sheet

10. What is the nature of Premium on Redemption of Debenture Account? (1) Real Account (3) Personal Account

(2) Nominal Account (4) None of the above

11. Average

Payment Period is particularly useful for___________ since it helps in knowing billpaying patterns of the firm. (1) suppliers and lenders (2) customers (3) debtors (4) shareholders

12. _________

is the purpose of data backup in a

DBMS. (1) To increase data redundancy (2) To optimise data retrieval speed (3) To protect against data loss (4) To limit data manipulation operations

13. Average profits of a firm during the last few years

are ` 50,000 and the normal rate of return in a similar business is 5%. If the goodwill of the firm is ` 1,00,000 at 5 years’ purchases of super profit, find the capital employed by the firm. (1) `6,00,000 (2) `5,00,000 (3) `3,00,000 (4) `2,50,000

14. Analysis of any financial statement comprises: (1) balance sheet (3) trading account

(2) profit & loss account (4) All of these

15. __________

analysis involves the comparison of different firm's financial ratios at the same point of time. (1) Time series (2) Cross-sectional (3) Marginal (4) Quantitative

16. A and B are partners sharing profits in the ratio 3:2.

C is admitted. C gets 3/20th share from A and l/20th share from B. calculate their sacrificing ratio. (1) 3 : 2 (2) 3 : 1 (3) 1 : 1 (4) 2 : 1

17. Main objective of Common Size Statement of Profit and Loss is : (1) to judge the financial soundness. ' (2) to present changes in assets and liabilities.

39

(3) to establish relationship between Revenue from Operations and other items of Statement of Profit and Loss. (4) all of the above.

18. _________ ratios are a measure of the speed with which various accounts are converted into sales : (1) Activity (2) Liquidity (3) Debt (4) Profitability

I. Based on below information you are required to answer the following questions:

Sangita Limited invited applications for issuing 60,000 shares of ` 10 each at par. The amount was payable as follows : On Application ` 2 per share On Allotment ` 3 per share On First and Final Call ` 5 per share Applications were received for 92,000 shares. Allotment was made on the following basis : (I) To applicants for 40,000 shares — Full (II) To applicants for 50,000 shares — 40% (III) To applicants for 2,000 shares — Nil

`1,08,000

was realised on account of allotment (excluding the amount carried from application money) and `2,50,000 on account of call.

The

directors decided to forfeit shares of those applicants to whom full allotment was made and on which allotment money was overdue.

19. The above case shows which of the following case of subscription? (1) Under subscription (2) Over subscription (3) Subscription at par (4) None of the above

20. How many shares will be issued for the applicants on 50,000 shares? (1) 50,000

(2) 40,000

(3) 30,000

(4) 20,000

21. How much allotment amount is already received during application? (1) `60,000 (3) `1,00,000

(2) `40,000 (4) `4,000

22. What amount is received at the time of first and final call? (1) `3,00,000 (3) `3,50,000

(2) `2,50,000 (4) `2,75,000

23. 'Non Recurring nature ', 'Lump-sum' and 'once and

for all' amount paid as membership fee, instead of paying regular periodic subscription is called: (1) Entrance Fees (2) Endowment Fund (3) Life Membership Fees (4) Revenue Receipt

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

40

24. The court can make an order to dissolve the firm when: (1) Some partners have become fully mad. (2) A partnership deed is fully followed. (3) Continued future profits are expected. (4) The firm is running a legal business.

25. How

does a computerised accounting system facilitate the generation of financial reports? (1) By manually calculating financial data. (2) By requiring extensive manual data entry. (3) By automating calculations and consolidating data. (4) By limiting the types of reports that can generate.

26. The

balance amount of Workmen Compensation Reserve, after meeting actual liability, at the time of admission of a new partner, will be transferred to: (1) Old Partner's Capital Accounts (2) New Partner's Capital Account (3) Revaluation Account (4) General Reserve

27. A company can issue debentures: (1) (2) (3) (4)

For cash As a collateral security For consideration other than cash Any of the above

28. Some adjustments are to be made at the time of retiring partner. (i) New profit sharing ratio of continuing partners (ii) Accounting treatment of Goodwill (iii) Sacrificing ratio of continuing partners (iv) Accounting treatment of joint life policy. Which of the above adjustments are to be done? (1) (i),(ii)and(iv) (2) (i), (iii), (ii) (3) (i), (ii), (iii), (iv) (4) (ii), (iii) and (iv)

29. Premium on issue of shares can be used for : (1) (2) (3) (4)

Issue of Bonus shares Distribution of Profit Transferring to General Reserve All of these

30. Features of Income and Expenditure are: (i) No opening or closing balance (ii) Prepared on accrual basis (iii) Records only Revenue Items (iv) Relevant only to the current year (1) (i), (ii), (iii) (2) (ii), (iii), (iv) (3) (i), (ii), (iii), (iv) (4) (ii), (iii)

31. A

Company's Current Liabilities decreased from ` 12,00,000 to ` 9,00,000. What is the percentage of change in Current Liabilities ? (1) 20% (2) 25% (3) 33.3% (4) 40%

32. If equity share of ` 10 each is issued at ` 12 each, it is called: (1) Issued at Par (2) Issued at Premium (3) Issued at Discount (4) None of these

33. Rani

and Sumi are partners in the ratio of 1 : 2. Before profit distribution, ‘Rani is entitled to 5% commission of the net profit (before charging such commission). Before charging commission, firm’s profit was ` 60,000. Sumi’s share in profit will be : (1) ` 38,000 (2) ` 19,000 (3) ` 20,000 (4) ` 40,000

34. Gain on sale of tangible current asset is a/an: (1) (2) (3) (4)

Operating Activity Investing Activity Financing Activity Cash and Cash Equivalents

35. Interest

collected by an automobile company selling a car on instalment basis will be classified as: (1) Investing Activity (2) Operating Activity (3) Financing Activity (4) Cash and Cash Equivalents

36. What will be the interest on capital for C @6%p.a for A, B and C who have invested `15,000, `25,000 and `30,000 and share profits in the ratio 1:2:3? (1) ` 900 (2) ` 1,500 (3) ` 1,800 (4) Nil

37. The

maximum capital beyond which a company is not allowed to raise funds, by issue of shares is called _______________ (1) Issued capital (2) Reserve capital (3) Authorised capital (4) Subscribed capital

38. From the following Information, find out the Cash Flow from Financing Activities.

Proposed Dividend 31st March, 2013

` 20,000

31st March, 2014

` 15,000

Additional Information: Equity Share Capital raised

` 3,00,000

10% Debentures Redeemed

` 1,00,000

Preference Share Capital Redeemed,

` 50,000

Interim Dividend paid during the ` 20,000 year (1) ` 1,25,000 (2) ` 1,00,000 (3) ` 1,50,000 (4) ` 1,30,000

39. Income

and Expenditure Account is generally prepared in: (1) T form (2) Vertical (3) Dual presentation (4) All of these

Sample Question Papers 40. Which of the following is not a source of cash? (1) (2) (3) (4)

Issue of Debentures Purchase of Machine Sale of Assets Dividend Received

utilised for writing off: (1) Premium allowed on redemption of debentures (2) Preliminary expenses (3) Discount allowed on issue of shares (4) All of the above

42. Which

of the following factors do not affect the goodwill of the firm? (1) Competent and capable management (2) Favourable location (3) Favourable contracts (4) None of the above

43. Maturity period for a Short-term Investment from the date of its purchase to be considered as cash equivalents should be: (1) 3 months (2) Less than 3 months (3) 6 months (4) 3 months or less than 3 months

44. Ram, Rahim and Robert entered into partnership in the profit sharing ratio of 2:3:5. Robert guaranteed Ram `90,000 of profit every year and if there is less he will be reimbursed the deficient amount by him and Rahim in the ratio of 2:3. The profit for the year ending March 2021 was `4,00,000. How much money does Rahim have to give to Ram? (1) `4,000 (2) `6,000 (3) `2,000 (4) Nil

45. How Goodwill is recorded on the retirement of a partner? Remaining Partner's Capital A/c To Retiring Partner's Capital A/c

Remaining Partner's Capital A/c To Retiring Partner's Capital A/c

41. Premium received on issue of debentures may be

(1)

(2)

Dr. (In Gaining Ratio) (with his Share of Goodwill)

(3)

Goodwill A/c To All Partner's Capital A/c

(4)

Goodwill A/c To Retiring Partner's Capital A/c

41

Dr. (In New Ratio) (with his Share of Goodwill) Dr. (In Old Ratio) Dr. (with his Share)

46. Excess

value of net assets over purchase consideration at the time of purchase of business is credited to: (1) General Reserve (2) Capital Reserve (3) Vendor's Account (4) Goodwill Account

47. Payment of Honorarium of Secretary is a: (1) (2) (3) (4)

Revenue Item Capital Item Revenue Expenditure Cash Expense

48. If in case of dissolution of partnership, there was

no Workmen Compensation Fund and firm had to pay `3,000 as compensation to workers where will be this `3,000 recorded in the books of accounts? (1) Debit side of Realisation Account (2) Credit side of Realisation Account (3) Debit side of Partner's Capital Account (4) Credit side of Partner's Capital Account.

49. If

Total Assets of Harbhajan Limited are of ` 60,00,000 and its Fixed Assets are of ` 24,00,000, what will be the percentage of Fixed Assets on Total Assets ? (1) 71% (2) 29% (3) 60% (4) 40%

50. How is Goodwill of the firm created? (1) (2) (3) (4)

Due to reputation of the firm Extra earning capacity of the firm Both (1) and (2) Neither (1) nor (2)

nnn

1

SOLUTIONS OF Question Paper 1. Option (2) is correct. Explanation: Income and Expenditure account records the income and expenditure of only revenue nature. Capital income and expenditure are recorded in the balance sheet.

2. Option (4) is correct. Explanation: The expenses incurred over the raised fund is deducted from the that fund.

3. Option (4) is correct. 4. Option (3) is correct. Explanation: Any income received in advance is a liability for the firm during the current year. Subscription received in advance is considered as liability because services are yet to be rendered.

5. Option (1) is correct. 60, 000 × 6 × 8 Explanation: Accrued Interest = 100 × 12 = ` 2, 400

6. Option (4) is correct. Explanation: Life Membership fees is the odd one as it is the capital receipt while all other are revenue receipts.

7. Option (4) is correct. 8. Option (3) is correct. Explanation: A partnership firm is an agreement between the two or more persons to carry on a business, but they not necessarily share equal profit or losses unless otherwise provided by the partnership deed or in the absence of one.

9. Option (3) is correct. Explanation: Interest on partner's loan is the only one allowed in the absence of the partnership deed.

10. Option (3) is correct. Explanation: When the interest on drawings is transferred to Profit and loss appropriation account, interest on drawings in debited and profit and loss appropriation account is credited.

11. Option (1) is correct. Explanation: Interest on partner's loan directly comes in the Profit and Loss Account. The partner's salary, interest on partner's drawings and partner's commission are dealt through the Profit and Loss Appropriation Account.

12. Option (3) is correct. Explanation: When a partner goes on a vacation, he is not retiring from the firm, so the profit sharing ratio will not change.

13. Option (1) is correct. Explanation: This may result in the gain to a few partners and loss to others. The partners who are in profit due to this change should compensate the sacrificing partner/partners in the profit sharing ratio.

14. Option (1) is correct. Explanation: Bishan's Sacrificing ratio 5 10 105 80 25 =   8 21 168 168 168 Sudha's Sacrificing Ratio 3 6  8 21

63 48 15  = 168 168 168

Sacrificing Ratio = 25:15 = 5:3

15. Option (2) is correct. Explanation: A computerized accounting system is a software-based system that automates and simplifies accounting tasks using computers and specialized accounting software.

16. Option (2) is correct. Explanation: New Profit Sharing Ratio is the ratio in which old partners including the new partner, share the profits or losses of the firm, calculated as agreed by the partners, as the future profit and loss need to be shared differently as a new partner is added to the firm.

17. Option (1) is correct. Explanation: Existing goodwill will be debited to all Partners' Capital Account in their old profit sharing ratio.

18. Option (2) is correct. Explanation: Alia =

19. Option (3) is correct.

5 2  10 5



1 (Sacrifice) 10

Solutions Explanation: Shilpa

3 2 4  = (gain ) 5 10 10

20. Option (2) is correct. Explanation: 1 24,000 × = ` 72,000 3 (To be credited to Karan's Capital A/c)

21. Option (1) is correct. Explanation:



Gaining ratio = New ratio – Old ratio Saurabh’s gain = 3/5 – 3/6 = 3/30

43

27. Option (2) is correct. 28. Option (3) is correct. Explanation: As the share forfeiture account forms the share capital it is shown in the share capital head of the Balance Sheet.

29. Option (1) is correct. Explanation: When the asset is acquired from the vendor, the sundry asset account is debited and vendor's account is credited with that amount.

30. Option (1) is correct.

Shirin’s gain = 2/5 – 2/6 = 2/30

Explanation: Total value of shares = 10,000 × ` 10 = ` 1,00,000

Gaining ratio = 3 : 2

Premium = 10% of 1,00,000 = ` 10,000

22. Option (2) is correct. Explanation: Final Payment made to Partner



= ` 50,000 (Capital) + ` 8,000 (Liabilities of firm taken over) – ` 10,000 (Share of loss on realisation)



= ` 48,000

23. Option (2) is correct. Explanation: When the firm is being dissolved, realisation account is prepared to know the profit made or loss incurred at the time of dissolution of a firm.

24. Option (3) is correct. Explanation: The liability taken over by a partner in case of dissolution is credited in his capital account. Realisation Account debits the transaction. Profit and loss account is not prepared during the dissolution of the firm.

25. Option (2) is correct. Explanation: The incorporation of a company as per the Companies Act, 2013 begins with its promotion.

26. Option (4) is correct. Explanation: The non-cumulative preference shares are the shares which do not carry the right to receive arrears of dividend. Non-participating Preference Shares are the shares which do not have a share in surplus profits and on which only a fixed rate of dividend is paid. Non-convertible Preference Shares are the preference shares which don’t have the right to be converted into equity shares. Preference shares which don't have any maturity date are called irredeemable preference shares.

Thus, `  10,000 will be transferred to the securities premium account.

31. Option (2) is correct. Explanation: The securities premium amount cannot be used to issue partly paid up bonus shares to shareholders, as the shares are partly paid up. It can only be used for: (i) To issue fully paid-up bonus shares to the shareholders. (ii) To write off preliminary expenses of the companies. (iii) To write off the commission paid or expenses on issue of shares/debentures. (iv) To pay premium on the redemption of preference shares or debentures of the company. (v) Buy-back of equity shares and other securities as per Section 68.

32. Option (2) is correct. Explanation: The interest rate of debentures is predetermined as it is mentioned in the debenture bond itself.

33. Option (3) is correct. 34. Option (3) is correct. 35. Option (4) is correct. 36. Option (1) is correct. 37. Option (3) is correct. Explanation: When the purchase consideration is equal to net assets while purchasing business from vender the Asset Account is debited and vender account are credited.

38. Option (1) is correct. Explanation: Bank charges is a part of other expenses in the statement of profit and loss statement.

44

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

39. Option (3) is correct. Explanation: One potential limitation of using a computerized accounting system is the dependency on technology, which can lead to system failures, data loss, or security breaches.

40. Option (1) is correct. Explanation: Financial analysis is just a study of reports of a company, ignores qualitative information, does not disclose current worth, etc.

41. Option (4) is correct. Explanation: Except common size balance sheet, all are part of comparative statements.

42. Option (2) is correct. Explanation: The inventory turnover ratio may indicate that the firm is experiencing stock outs and lost sales. Average Payment Period is the average number of days a business takes to pay its creditors Average Collection Period is the average number of days a firm takes to get its payment from the debtors. Quick Ratio is the ratio between the liquid assets and current liabilities.

43. Option (1) is correct. Explanation: In order to increase the Current ratio, the current liabilities needs to be decreased, thus, he can only replay Bills Payable. If he purchases goods on credit or takes short term loans it will increase the current liabilities.

44. Option (2) is correct.

45. Option (2) is correct. Explanation: The inventory turnover ratio measures the activity of a firm's inventory. Average collection period measures the time taken by the debtors to pay back. Liquid Ratio measures the amount of liquid assets the firm has for every current liability. Current Ratio is the ratio between current assets and liabilities.

46. Option (4) is correct. Explanation: Non-current investments is odd as it is the only one which is not a cash and cash equivalent.

47. Option (1) is correct. Explanation: Cash Outflow = Value of Fixed Assets on 31/3/2018 - Value of Fixed asset on 31/03/2017 + Depreciation = ` 23,80,000 - ` 17,50,000 + ` 2,00,000 = ` 8,30,000

48. Option (1) is correct. Explanation: Income tax is paid as a matter of operation of business, so it is classified under Operating Activity.

49. Option (4) is correct. Explanation: Cash deposited into bank is simply the movement between items of cash and cash equivalents.

50. Option (2) is correct. Explanation: Cash flow statement is based on the cash basis of accounting as it only shows the movement of cash.

Explanation: Interest coverage ratio is a solvency ratio. nnn

SOLUTIONS OF Question Paper 1. Option (4) is correct.

Explanation:

Explanation: Entrance fees is a revenue receipt as it is paid by the members when they become the members.

Explanation: The deficit of ` 4,300 will be added to the income of ` 16,000.

3. Option (2) is correct. Explanation: Receipts and Payments Account is a summary of Cash Receipts and Payments as it records all the cash transactions.

profit after charging 5 commission = 84,000 × 105       =84,000 - 4,000 = ` 80,000 2 5

           = ` 32,000

12. Option (4) is correct. Explanation: At the time of change in the profit sharing ratio, the sacrificing ratio and gaining ratio is to be calculated, goodwill is to be adjusted and assets and liabilities are to be adjusted but there is no necessity of determining the capital of the partners.

13. Option (4) is correct.

4. Option (2) is correct. Explanation: It is real account since it is a summary of cash receipts and cash payments including bank balance.

5. Option (1) is correct. 6. Option (3) is correct. Explanation: One of the key benefits of using a computerized accounting system is that it saves time. Tasks such as data entry, calculations, and report generation can be automated, reducing the time required for manual processing.

7. Option (1) is correct. Explanation: The profit and loss appropriation account is prepared when there are adjustments to be done with related to the partnership due to the changes that have occurred.

8. Option (4) is correct. Explanation: Interest on Partner's Capital is the only one that is written in the Capital or Current account.

9. Option (4) is correct. 10. Option (1) is correct.

11. Option (1) is correct.

Firms

Suresh's share in profit = ` 80,000 ×

2. Option (3) is correct.

Explanation: ` 4000 × 15% ×

2

6 = ` 300 12

Explanation: When the partner buys an asset it is considered as increase in the assets of the firm.

14. Option (3) is correct. Explanation: When the incoming partner brings his share of premium for goodwill in cash, it is adjusted by crediting to sacrificing partners' capital account. His capital account is debited and premium for Goodwill account is created when the new partner doesn't bring the goodwill in cash.

15. Option (3) is correct. Explanation: The amount of goodwill brought by the new partner is shared by the sacrificing partner in the sacrificing ratio. The old profit sharing ratio and new profit sharing ratio help in the calculation of the sacrificing ratio. The Accumulated profits and revaluation profit or loss are also shared in the old profit sharing ratio.

16. Option (2) is correct. Explanation: The goodwill shown in the balance sheet is shared among the partners in the old profit sharing ratio. Sacrificing ratio is used to share the goodwill to be brought in by the new partner. New profit sharing ratio is used to reconstitute the capital of the firm if it is decided by the partners to make it proportionate to their profit sharing ratio.

46

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

17. Option (1) is correct.

Explanation: As the amount in the forfeiture share account is ` 6,000 and ` 4,000 were transferred to the capital reserve account. Thus, ` 2,000 was the discount given, making the discount ` 1 per share. Thus the share was issued at ` 9 per share.

Explanation: The Partnership Act, 1932 states that the interest payable on the amount of the deceased partner needs to be 6% p.a.

18. Option (3) is correct. Explanation: Gaining Ratio = New Ratio Old Ratio 3 2 1 Rajendra's Gain  = 5 5 5 2 1 1  = Tejpal's Gain 5 5 5 Gaining Ratio = 1:1

19. Option (3) is correct. Explanation: Debit balance of statement of profit and loss is odd as it is the only item that will reduce the capital.

20. Option (2) is correct. Explanation: When a partner dies or retires, the profit is appropriated to them as well in the profit and loss appropriation account.

21. Option (4) is correct. Explanation: In case of no agreement the retiring partner will either get @ 6% p.a. interest rate on the remaining amount or share of profit earned proportionate to the amount outstanding to the total capital of the firm.

22. Option (3) is correct. Explanation: Provision for doubtful debts is an odd one as it is only one recorded in the credit side of the Realisation account.

23. Option (4) is correct. Explanation: When a liability is settled with the help of an asset, no entry is passed in the books during dissolution as nothing is recovered or paid in term of cash and bank.

24. Option (2) is correct. 25. Option (4) is correct. Explanation: The employee stock ownership plan is giving the shares to the employees in order to create a sense of belongingness in employees and creates high calibre and productivity of employees.

26. Option (4) is correct. Explanation: Open ended preference shares is not a type of preference share while rest all are the types of preference share.

27. Option (2) is correct.

28. Option (2) is correct. Explanation: Amount forfeited at the time of forfeiture of shares



= ` 20,000 × 60 = ` 12,00,000 [Maximum amount of

discount to be allowed]

29. Option (1) is correct. 30. Option (4) is correct. Explanation: A company cannot issue its shares at a discount as per the Companies Act, 2013.

31. Option (1) is correct. Explanation: Share Application or Share Allotment or Share Capital A/c, all are personal accounts as they represent money from the shareholders.

32. Option (1) is correct. Explanation: When debentures are issued at par they are issued at the face value itself. In discount they are issued at an amount less than the nominal value and debentures issued at premium are issued at a price more than the face value.

33. Option (2) is correct. Explanation: Debentures are like loans taken by the company from public, so debenture holders are lenders of the company.

34. Option (1) is correct. Explanation: As the debenture holders do not become the owners of the company when they purchase debentures, they are considered to be external equity.

35. Option (1) is correct. 36. Option (1) is correct. Explanation: : A DBMS can store and manage financial transactions in accounting. It provides a structured database where transaction data can be stored, organized, and easily retrieved for analysis and reporting.

37. Option (1) is correct. 38. Option (2) is correct.

Solutions Explanation: Charges incurred for freight and transportation while purchasing goods are known as carriage inwards. It is treated as any other direct expense.

39. Option (3) is correct. Explanation: Purchase of goods for re-selling is shown under the head 'Expenses' as Purchase of Stock-in-trade in Statement of Profit and Loss.

40. Option (3) is correct. Explanation: Comparative statements compare financial data at two points of time and help in driving meaningful conclusions regarding the changes in financial position and operating results.

41. Option (2) is correct. 42. Option (3) is correct. 43. Option (3) is correct. Explanation: Solvency Ratio is one of the various ratios used to measure the ability of a company to meet its long-term debts.

44. Option (4) is correct. Explanation: In order to equalize Debt-equity ratio, the company needs to either increase equity or reduce debt or do both.

45. Option (4) is correct.

47

Explanation: Only inventory turnover ratio is a turnover ratio rest all are solvency ratios.

46. Option (3) is correct. Explanation: Cash flow from financing activities : Redemption of debentures = ` 40,000 Interest on debentures = ` 21,600         

   

` 61,600

Interest on debentures 6 12 12 + 40,000 × × 12 100 100 = ` 19,200 + ` 2,400 = ` 21,600 = 1,60,000 ×

47. Option (1) is correct. Explanation: It is a non-cash item , in cash flow statement it shall be added back to net profit so as to come out at the cash flow from operating activities.

48. Option (3) is correct. Explanation: `51,000 − `30,000=`21,000

49. Option (4) is correct. Explanation: `78,800 − `52,000 = `26,800

50. Option (3) is correct. Explanation: It is a non-operating item. nnn

SOLUTIONS OF Question Paper 1. Option (3) is correct. Explanation: Donation received for specific purpose is a capital receipt as it can be used only for that specific purpose.



2. Option (4) is correct. 3. Option (4) is correct. 4. Option (2) is correct. 5. Option (1) is correct. Explanation: As debentures are long-term debt instruments they are shown in the non-current liabilities of the balance sheet.

6. Option (3) is correct. Explanation: This may result in the gain to a few partners and loss to others. The partners who are in profit due to this change should compensate the sacrificing partner/partners in the profit sharing ratio.

7. Option (1) is correct. Explanation: There is no debenture called preference debentures.

8. Option (3) is correct. Explanation: It is not possible for any firm to close its books of accounts at any time. Thus, the amount of profit or loss so ascertained is dispensed to the deceased partner through the Profit & Loss Suspense Account.

9. Option (2) is correct. Explanation: Donation received for a specific purpose it to be utilized for the specific activity. This kind of donations are capital receipt. It should be recorded in a separate account and expenses to be reduced from this account only. Balance of the account to be shown as liability in the Balance Sheet.

10. Option (3) is correct. Explanation: Discount on issue of debentures is a capital loss to be written off over the tenure of the debentures.

11. Option (2) is correct. Explanation: As the shareholders are the owners of the share capital, they are called the owners of the shares of the company.

12. Option (2) is correct. 13. Option (1) is correct. 14. Option (1) is correct.

3

Explanation: Calls in advance is an amount which is excess paid by the shareholders against which the calls are not yet due. Calls in advance is shown separately, in the Balance Sheet as liability of the company under the heading ‘Current Liabilities’ until the calls are made and the amount actually becomes payable by the shareholder.

15. Option (1) is correct. Explanation: As out of 10,000 shares, applications were received only for 9,000 shares. This is a case of under subscription of shares.

16. Option (2) is correct. Explanation: On admission of a new partner, increase in the value of assets is debited to Assets account and shown in the balance sheet and the Revaluation Account. It is credited to the Revaluation account and Profit and Loss Adjustment and Old Partners Capital Account are not used for revaluation of assets and liabilities.

17. Option (3) is correct. Explanation: Statement of Profit and Loss is the part of the financial statement used by the tools of financial analysis. Rest all help in financial analysis.

18. Option (3) is correct. Explanation: The discount on the reissue of forfeited shares cannot be more than the forfeited amount of the shares, so it can be issued at a discount and it can be more than 10% if the forfeited amount is more than 10%.

19. Option (4) is correct. Explanation: Only Acid Test Ratio is the liquidity ratio, rest all are profitability ratios.

20. Option (3) is correct. Explanation: The goodwill of the retiring partner is compensated by the gaining partner/s in the gaining ratio, which in this case is only Suman. Remaining partners share the profit of retiring partner in future, therefore at the time of retirement of partner, remaining partner/s has to compensate to the retiring partner.

21. Option (1) is correct.

Solutions 22. Option (1) is correct. 23. Option (4) is correct. Explanation: The amount of 'Entrance Fees' received by a Not-for-Profit organisation (if it is received regularly) is a revenue receipt. It is shown on the credit side of Income and Expenditure Account.

24. Option (2) is correct. Explanation: Partner's loan is the odd one as it can be settled last.

25. Option (2) is correct. Explanation: The relational model mainly uses in accounting systems. It organizes data into tables with rows (records) and columns (attributes) and establishes relationships between tables using primary and foreign keys.

26. Option (3) is correct. Explanation: The Profit and Loss Account is not readjusted at the time of admission of a new partner, only the capital account and profit sharing ratio is adjusted. Change in the value of assets and liabilities are done through the revaluation account.

27. Option (3) is correct. Explanation: When debentures are issued at discount and redeemable at premium, the loss on such issue is debited to loss on Issue of Debentures Account.

28. Option (2) is correct. 29. Option (1) is correct. 30. Option (2) is correct. Explanation: Amount received from sale of grass by a club should be treated as a revenue receipt.

31. Option (4) is correct. Explanation: Intra firm comparison is a strength of the financial statement as it allows to compare the financial position of the company not only with its past years but also with that of the competitors.

32. Option (3) is correct. 33. Option (4) is correct. 34. Option (1) is correct. 35. Option (1) is correct. 36. Option (4) is correct. Explanation: Dissolution of the Partnership firm is odd one as it leads to the closure of the firm altogether and rest result in the reconstitution of partnership.

37. Option (3) is correct.

49

38. Option (4) is correct. Explanation: Purchase and Sale of Land and Building for a Real Estate Business and rent received are all examples of Cash flow from operating activities.

39. Option (3) is correct. Explanation: In Receipts and Payments Account all the cash receipts and payments of both revenue and capital nature are recorded. Here, except in life Membership Fees there is no inflow or outflow of cash.

40. Option (4) is correct. Explanation: Increase in creditors is a cash inflow.

41. Option (4) is correct. Explanation: Debentures can be issued by the company at par, discount or premium and can be redeemed by the company at par or premium, so, the issue price and redemption value of debentures can differ.

42. Option (1) is correct. Explanation: When the salary is transferred to profit and loss appropriation account, salary account is credited and profit and loss appropriation account is debited.

43. Option (2) is correct. Explanation: Bank deposits with 100 days of maturity will include not be in Cash and Cash Equivalents but it will be considered under financing activities.

44. Option (4) is correct. Explanation: The goodwill share of Ravi will be shared among the sacrificing partners in the sacrificing ratio.

45. Option (1) is correct. Explanation: At the time of reconstitution of partnership, If Goodwill already appears in the books, it is written off by debiting all partners' capital Account and debiting Goodwill A/c.

46. Option (2) is correct. Explanation: Unsecured debentures are debentures that do not carry any charge or security on assets of the company. They are also known as Naked debentures.

47. Option (3) is correct. Explanation: If there is a 'Match Fund', then match expenses and incomes are transferred to the Liabilities side of the Balance Sheet.

48. Option (1) is correct.

50

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY Explanation: The unrecorded liabilities are not shown in the book, yet they still need to be discharged off at the time of dissolution and hence are debited to the Realisation A/c.

50. Option (2) is correct. Explanation: In the absence of partnership deed the interest on loan is charged at 6% p.a. as per the Partnership Act, 1932.

49. Option (1) is correct. Explanation: Sale of goods manufactured is an operating activity of the business and any revenue that arises from the same will be shown in revenue from operations. nnn

SOLUTIONS OF Question Paper 1. Option (1) is correct. Explanation: Subscription received by a school for organising annual function is treated as a capital receipt.

2. Option (1) is correct. Explanation: The equity shareholders are given dividend as per the shares hold by them from the profit earned by the company as they get the ownership of the company to the extent of shares hold by them.

3. Option (1) is correct. Explanation: Retirement of a partner leads to the reconstitution of the partnership which leads to ending the old agreement and the beginning of a new agreement.

4. Option (1) is correct. Explanation: When only Partner's Capital Account is maintained all the adjustments are made in the Capital account itself and no separate account is to be opened for such thing.

5. Option (4) is correct. Explanation: Loss on issue of debenture is treated as Miscellaneous expenditure.

6. Option (1) is correct. 7. Option (4) is correct. Explanation: Debentures are issued in lieu of interest.

8. Option (3) is correct. Explanation: Gaining ratio = 3,600/3,000 = 6:5

9. Option (4) is correct. Explanation: Sources of income for a Notfor-Profit organisation are subscription from member, donations, entrance fees, etc.

10. Option (3) is correct. Explanation: Premium on Redemption of Debentures Account is a liability.

11. Option (1) is correct. 12. Option (3) is correct. 13. Option (4) is correct. Explanation: Additional capital brought by a partner is recorded in the Capital Account of the partner even if Current Account is maintained.

4

14. Option (1) is correct. Explanation: As the interest on loan given by a financial company forms the operational revenue so it is shown in the Revenue from operations.

15. Option (2) is correct. 16. Option (4) is correct. Explanation: The ratio which is computed to determine the sacrifice of the old partners made in favour of new partner which is admitted into partnership is sacrificing ratio, calculated with the help of old profit sharing ratio and new profit sharing ratio. Gaining Ratio is the one when old partner retires or dies calculated with the help of old profit sharing ratio and new profit sharing ratio.

17. Option (4) is correct. 18. Option (2) is correct. 19. Option (2) is correct. 20. Option (2) is correct. Explanation: It is done to give the required amount of share in profits of the firm to the retried partner.

21. Option (1) is correct. 22. Option (3) is correct. 23. Option (1) is correct. Explanation: Life membership subscription is a capital receipt. Donation (if not specified), subscriptions and interest on investments are retiring receipts.

24. Option (2) is correct. 25. Option (2) is correct. 26. Option (1) is correct. Explanation: In case of dissolution of firm, the firm ceases to exist as in the dissolution, the relationship between the partners is terminated.

27. Option (3) is correct. Explanation: When debentures are issued at par and are redeemable at a premium, the loss on such an issue is debited to Loss on Issue of Debentures Account.

28. Option (2) is correct.

52

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY Explanation: At the time of retirement of a partner, to write off the goodwill already existing in Balance Sheet following journal entry is passed: All Partner's Capital A/c (including retiring)  Dr. (in old ratio)    To Goodwill A/c

29. Option (4) is correct. Explanation: Enterprise resource planning (ERP) systems offer comprehensive integration of various business functions, including accounting, into a single software solution.

30. Option (4) is correct.

Salary paid during the year Add: O/s Salary as at 31-3-2010 6,000 Prepaid Salary as at 31-3-2009 1,200 Less: O/s Salary as at 31-3-2009 6,500 Prepaid Salary as at 31-3-2010 1,000 Amount to be debited to Income and Expenditure Account

Amount (`) 75,000 7,200 82,200 7,500 74,700

31. Option (4) is correct. Explanation: Intra firm comparison is a strength of the financial statement as it allows to compare the financial position of the company not only with its past years but also with that of the competitors.

32. Option (4) is correct. 33. Option (2) is correct. Explanation: With every transaction relating to the capital of the partners, the capital keeps on fluctuating, in fluctuating capital account.

34. Option (4) is correct. Explanation: Net Profit before Tax = Profit after all Appropriations + Provision for Taxation + Transfer to General Reserve = ` 31,25,000 + ` 4,37,500 + ` 8,75,000 = ` 44,37,500

35. Option (3) is correct. Explanation: Operating profit before Working Capital changes = Net Profit before tax − Gain on sale of Fixed tangible assets + Goodwill written off    = ` 44,37,500 − ` 12,50,000 + ` 7,80,000    = ` 39,67,500

36. Option (1) is correct.

37. Option (2) is correct. Explanation: Cash flow from Operating Activities = Cash from Operating Activities before tax – Tax paid = ` 35,57,500 − ` 4,37,500 = ` 31,20,000

38. Option (1) is correct. Explanation: As Mohan acquires his

Explanation: Particulars

Explanation: Cash from Operating Activities before Tax = Operating Profit before Working Capital changes − Increase in Current Assets + Increase in Current liabilities = ` 39,67,500 − ` 2,50,000 − ` 2,30,000 − ` 30,000 + ` 1,00,000 = ` 35,57,500

1 4

th

share

equally from Ram and Shyam, the sacrificing ratio is equal for both, hence statement (i) is only true.

39. Option (4) is correct. Explanation: Main objectives of common size statements are to present changes in various items, to provide for a common base of comparison and to establish relationship between various items.

40. Option (4) is correct. Explanation: When comparing different computerized accounting software packages, it is crucial to consider factors such as user interface, ease of use, functionality, modules available, scalability, and suitability for the business.

41. Option (3) is correct. Explanation: A company issued 1,000, 12% Debentures of `100 each at 10% premium. 12% stands for the rate of interest.

42. Option (2) is correct. Explanation: Profit and Loss Adjustment Account is prepared when the past adjustments are to be done. Profit and Loss Appropriation Account is made to make any transactions of the partners that affect the profit to be shared.

43. Option (1) is correct. Explanation: Purchase of marketable securities is considered as cash and cash equivalents and so does not form the part of investing cash flow.

44. Option (4) is correct. Explanation: At the time of change in profit sharing ratio, the value of assets and reassessment of liabilities are revalued and the difference between the existing value and revalued amount is transferred to Revaluation Account.

Solutions 45. Option (2) is correct. 46. Option (3) is correct. Explanation: Own debentures are those debentures of the company which purchases from the market and hold them as an investment.

47. Option (3) is correct. Explanation: The amount received from sale of old sports materials by an organisation shown on the credit side of Income and Expenditure Account.

48. Option (3) is correct.

53

Explanation: At the time of dissolution of the firm, after making the payment to third party for their loans and to partners for loan advanced to the firm, the balance of the partner's capital accounts is paid.

49. Option (2) is correct. Explanation: Reserves and Surplus is odd one as it is a sub-head of the balance sheet of the company while all others are motor heads.

50. Option (4) is correct. Explanation: In case of fluctuating capital account, the capital account is credited with all the transactions which give rise to due capita of a partner. nnn

SOLUTIONS OF Question Paper 1. Option (3) is correct. Explanation: Outstanding expenses and the incomes received for next year are liabilities for the organisation, it will be shown under liabilities side of the Balance Sheet.

2. Option (1) is correct. 3. Option (3) is correct. Explanation: Debit Balance of Statement of Profit and Loss account is an odd one as the rest are shown on the credit side and it is shown on the debit side of the Capital Account, though all are shared among all the partners in the old profit sharing ratio.

4. Option (1) is correct. 5. Option (2) is correct. Explanation: Premium on redemption of debentures is generally provided at the time of redemption of debentures.

6. Option (4) is correct. Explanation: x – 20% of x = ` 40,000 1 = x – x = ` 40,000 5 4 x = ` 40,000 5

x = ` 40,000 ×

5 4

x = ` 50,000 therefore, the value of machinery is ` 50,000

7. Option (2) is correct. 8. Option (2) is correct. Explanation: Retiring partner's share of goodwill is debited to the remaining partners in their gaining ratio. Capital Ratio is not considered in partnership. New Profit Sharing Ratio only helps in the calculation of the gaining or sacrificing ratio.

9. Option (2) is correct. Explanation: Receipts and Payments Account is a summary of cash receipts and payment. It records cash receipts and cash payments of both revenue and capital nature.

11. Option (1) is correct. 12. Option (3) is correct. Explanation: At the time of the firm's dissolution, the balance of the General Reserve shown in the Balance Sheet is credited to the Partners' Capital Accounts in their profit sharing ratio.

13. Option (2) is correct. 14. Option (2) is correct. Explanation: Financial statements are the end products of accounting process which reveal the financial results of a specified period and financial position as on a particular date, so that the financial position of the company can be ascertained and analysed.

15. Option (2) is correct. Explanation: Shares are the fractional part or the unit of share capital forming the basis of ownership of company because buying a share by a person makes him/her a shareholder and thus the owner to the extent of the shares purchased.

16. Option (2) is correct. 17. Option (4) is correct. Explanation: The SELECT statement retrieves data from a database table in SQL. It allows users to specify the columns and conditions to retrieve specific data or generate reports.

18. Option (4) is correct. 19. Option (3) is correct. Explanation: Current Assets = Prepaid Expenses + Inventory + Trade Receivables + Cash in Hand = `3,00,000 + `12,00,000 + `11,00,000 + `17,00,000 = `43,00,000 Current Liabilities = Outstanding Expenses + Trade Payables = `50,000 + `18,00,000 = `18,50,000 Current Assets Current Ratio= Current Liabilities

10. Option (4) is correct. Explanation: Debentures can be redeemed out of profit, capital and provision.

5

=       

` 43,00,000 = 2.32 : 1 `18,50,000

20. Option (1) is correct.

Solutions Explanation: Quick Assets = Trade receivables + Cash in hand = ` 10,00,000 + ` 15,00,000 = ` 25,00,000 Current Liabilities = Outstanding Expenses + Trade Payables = `25,000 + `14,00,000 = ` 14,25,000 Liquid Assets Quick Ratio= Current Liabilities `10, 00, 000 +`15, 00, 000 = `14, 25, 000 ` 25, 00, 000 = = 1.75 : 1 `14,25,000  

21. Option (4) is correct. Explanation: Inventory Turnover Ratio Cost of revenue from operations = Average Inventory `24 , 00 , 000  ` 2 , 88 , 000 = 11, 00 , 000 ` 21, 12 , 000 = = 1.92 times       `11, 00 , 000 Gross Profit Ratio =

Gross Profit Revenue from Operations

Gross Profit = 12% of `24,00,000 = `2,88,000

22. Option (1) is correct. 23. Option (2) is correct. Explanation: Donation received for specific purpose are always capitalised and it is transferred to the liabilities side of the Balance Sheet, irrespective of the fact whether the amount is big or small.

24. Option (1) is correct. Explanation: In the event of the dissolution of a partnership firm, the provision for doubtful debts is transferred to the Realisation Account.

25. Option (3) is correct. Explanation: 7,200 and 6,000 (find ratio of this amount) ∴ Gaining Ratio = 6:5

26. Option (3) is correct. Explanation: On Admission of a new partner, the old partnership is reconstituted. Old firm is dissolved in case of dissolution of the partnership firm.

27. Option (4) is correct. Explanation: Debentures can be redeemed out of profit, capital and provision.

28. Option (2) is correct. Explanation: An account operated to ascertain the loss or gain at the time of death of a partner is called Revaluation Account.

55

29. Option (1) is correct. 30. Option (3) is correct. Explanation: If a general donation of smaller amount is received by a school, that donation will be shown on debit side of Receipts and Payments Account.

31. Option (2) is correct. Explanation: Rate of increase or decrease in trade receivable can be identified by comparative balance sheet.

32. Option (4) is correct. 33. Option (4) is correct. Explanation: Interest on drawings is the only item which comes on the debit side of Aartner's Capital A/c.

34. Option (3) is correct. Explanation: Dividend is received as a part of investment done, thus it is shown on the investing activity in the cash flow statement.

35. Option (4) is correct. Explanation: Issue and Redemption of Shares is a financing activity. Redemption of shares is outflow of cash from financing activity. Cash used in Financing Activity = 12% Preference Share Capital + Premium on Redemption of Debentures   = ` 20,00,000 + (5% of ` 20,00,000)   = ` 20,00,000 + ` 1,00,000   = ` 21,00,000

36. Option (3) is correct. Explanation: Amount of Reserve to be transferred to Shyam's Capital 1 = 30,000 × = ` 15,000 2

37. Option (4) is correct. 38. Option (1) is correct. Explanation: In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid form the principal revenue generating activities. So should be classified as cash flow from operating activities.

39. Option (1) is correct. Explanation: An audit trail in a computerized accounting system is used to track user activities and monitor system performance, enabling the detection of any suspicious or unauthorized actions.

40. Option (1) is correct. 41. Option (4) is correct.

56

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY Explanation: In case of issue of debentures as collateral security for a loan from the bank, Debentures Suspense Account will be debited.

42. Option (3) is correct. 43. Option (1) is correct. Explanation: Salary to staff is shown as operating activity for finance company as well as non-finance company.

44. Option (2) is correct. Explanation: Increase in liabilities is the only item which will appear in the credit side of the revaluation account.

45. Option (2) is correct. Explanation: Old Profit Sharing Ratio of A, B and C = 4 : 3 : 2 Gaining Ratio = 3 : 2 3 3 9 A's Gain = × = 9 5 45 3 2 6 C's Gain = × = 9 5 45 A’s New Share =

4 9 20 + 9 29 + = = 9 45 45 45

2 6 10 + 6 16 B’s New share = + = = 9 45 45 45 New Profit Sharing Ratio of A and C = 29 : 16

46. Option (3) is correct. Explanation: Debenture creditors of the company.

holders

are

the

47. Option (3) is correct. Explanation: Particulars

Amount (`)

Opening Balance of Prize Fund

32,800

Add: Donations Received towards Prize Fund

15,400 48,200

Less: Amount spend on prizes

12,300 35,900

Add: Interest Received on Prize Fund Investment Closing balance of Prize Fund

4,000 39,900

48. Option (1) is correct. Explanation: On dissolution of the firm, realistion expenses paid by the partner is debited to the realistion account.

49. Option (2) is correct. Explanation: In Common Size Balance Sheet, figure of total assets and total liabilities are assumed to be 100.

50. Option (1) is correct. nnn

SOLUTIONS OF Question Paper 1. Option (1) is correct. 2. Option (4) is correct. Explanation: If the company does not earn profit, the preference shareholders are not given dividend as dividend cannot be declared in case of no profit even if they have preferential rights.

3. Option (1) is correct. Explanation: Retiring partner is compensated by remaining partners in gaining ratio for parting with the firm's future profits in favour of remaining partner.

4. Option (3) is correct. 5. Option (3) is correct. Explanation: No Debenture Redemption Reserve (DRR) is required for the debentures issued by banking companies.

6. Option (3) is correct. 7. Option (3) is correct. Explanation: Nominal value of Debentures =8,000 × ` 100 = ` 8,00,000 = 25% of Nominal Value of Debentures = 25% of ` 8,00,000 = ` 2,00,000

8. Option (3) is correct. Explanation: Chetan's Capital = `45,000 Total Capital of Firm = `75,000 + `65,000 + `45,000 = `1,85,000 45, 000 Chetan's share in Profit = `50,000 × 1, 85, 000            = `12,162 (approx)

9. Option (3) is correct. 10. Option (1) is correct.

Explanation: Guarantee of profit to a partner is given by one or more partner to one or more partner or the firm. The guaranteed amount is even paid in case of loss.

14. Option (4) is correct. Explanation: The Balance Sheet of a business firm provides information about financial position of the firm at a point of time.

15. Option (3) is correct. 16. Option (4) is correct. Explanation: If goodwill is not brought in cash by the new partner, it should be debited to his either capital or current account. The amount is transferred to the loan account only during retirement or death of the partner and the remaining partner cannot pay the amount at the moment.

17. Option (3) is correct. Explanation: Statement of Profit and Loss is not a tool of financial analysis, it is a part of financial statements prepared by a business firm.

18. Option (1) is correct. 19. Option (3) is correct. Explanation: Operating Ratio Cost of Revenue Operating from Operations + Expenses = × 100 Revenue from Operations =

` 9,00,000+` 15,000 ×100 = 76.25% `12,00,000

20. Option (1) is correct. Explanation: Quick Ratio =

Liquid Assets Current Liabilities

=

` 2,00,000 = 2.67 : 1 ` 75,000

Explanation: A debenture is a loan certificate.

11. Option (1) is correct. 12. Option (1) is correct. Explanation: A partnership firm is compulsorily dissolved when the business of the firm is declared illegal.

13. Option (4) is correct.

6

21. Option (4) is correct. Explanation: Debt to equity Ratio = =

Total Debt Shareholders' Fund ` 2,50,000 = 0.63 : 1 ` 4,00,000

58

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

22. Option (2) is correct. Explanation: Working Capital Turnover Ratio Revenue from Operations = Working Capital `12,00,000 = = 8.28 times `1,45,000

23. Option (4) is correct. Explanation: Credit side balance in Income and Expenditure Account reveals excess of income over expenditure, i.e., surplus.

24. Option (2) is correct. Explanation: Realisation Account will be debited and Partner's Capital Account will be credited, when a partner paid for the firm's realisation expenses.

25. Option (4) is correct. Explanation: As per Section 37 of the Indian Partnership Act, a retiring partner becomes entitled to profits after retirement if his dues remain unpaid.

26. Option (2) is correct. 27. Option (4) is correct. Explanation: Excess value of purchase consideraton over Net Assets at the time of purchase of business is credited to Goodwill Account.

28. Option (2) is correct. Explanation: At the time of retirement of Hari, debit balance in the Profit and Loss Account is transferred to debit of capital account of Hari Ram and Sharma equally.

29. Option (3) is correct. Explanation: Implementing regular data backups is a necessary security measure in a computerized accounting system to ensure data recovery in case of system failures or data loss.

30. Option (3) is correct. Explanation: Subscription received in advance during the year is a liability for the Not-for Profit Organisation.

31. Option (1) is correct. Explanation: Common Size Statements are prepared in the form of percentages.

32. Option (1) is correct. 33. Option (2) is correct.

Explanation: If there is no partnership deed the partners share the profit and losses equally irrespective of the capital invested by them.

34. Option (3) is correct. Explanation: In cash flows, when a firms invest in Fixed Assets and Short-term Financial Investments results in decreased cash.

35. Option (1) is correct. Explanation: Payment of dividend is considered under financing activities.

36. Option (3) is correct. 37. Option (1) is correct. 38. Option (1) is correct. Explanation: Payment of bonus to the employees by an insurance company will be considered under operating activities.

39. Option (4) is correct. Explanation: If these is no Match Fund, then Match expenses are transferred to debit side of Income and Expenditure Account.

40. Option (3) is correct. Explanation: Deposits of cash into bank, withdrew of cash from bank and conversion of debentures into equity shares will not result into flow of cash as there is no inflow or outflow of cash in these transactions.

41. Option (4) is correct. Explanation: According to SEBI guidelines, no need to keep the amount of debentures must be transferred to Debenture Redemption Reserve before the redemption of debentures, in case of convertible debentures.

42. Option (2) is correct. Explanation: Goodwill is an intangible asset as we cannot touch it.

43. Option (3) is correct. Explanation: When debentures are issued at a discount and redeemable at a premium, then Loss on Issue of Debentures Account is debited at the time of issue.

44. Option (4) is correct. Explanation: A’s New share    

3 2 6 × = 5 3 15

2 2 B’s New share = × 5 3

      C’s Share =

1 5 = 3 15

4 15

Solutions \       A : B : C = 6 : 4 : 5 Thus, none of the mentioned ratios is correct.

45. Option (3) is correct. Explanation: At the time of retirement of a partner, amount remaining in Investment Fluctuation Reserve after meeting the fall in value of Investments in credited to All Partners' capital Account is old profit sharing ratio.

46. Option (3) is correct. Explanation: If debentures purchased in the open market are not immediately cancelled, they are treated as investments.

47. Option (1) is correct.

59

48. Option (2) is correct. Explanation: On dissolution of the firm, loss calculated in Realisation Account is debited to Partner's Capital Account.

49. Option (4) is correct. Explanation: Common Size Analysis and Percent Change Analysis can be used to identify the trend of financial statements.

50. Option (4) is correct. Explanation: G's Share =

2 × `3,12,000 = `78,000 8

Deficiency to be borne by E = `80,000 – `78,000 = `2,000

Explanation: It is a capital receipt and will be shown under liabilities side of Balance Sheet. nnn

SOLUTIONS OF Question Paper 1. Option (4) is correct. Explanation: The Income and Expenditure Account is like the Profit and loss Account of the Business or Profit Making Firms.

2. Option (1) is correct. 3. Option (3) is correct. Explanation: One of the advantages of using a computerized accounting system is real-time access to financial information, which enables faster decision-making.

4. Option (2) is correct. Explanation: JOIN is the database operation that combines rows from two or more tables based on related columns. It simultaneously allows data retrieval from multiple tables, using the specified relationship between them.

5. Option (4) is correct. Explanation: Debentures can be redeemed out of profits, out of capital and by converting them into shares or new debentures.

6. Option (4) is correct. 4 1 4 3 1   = 9 3 9 9 9 1 2 3 2 1   = Kavya's Sacrifice 3 9 9 9 9 1 Thus the sacrificing value of goodwill is × 9 ` 90,000 = ` 10,000 which will be transferred from Avya (Gaining Partner) to kavya (Sacrificing Partner) The sacrificing value of goodwill is ` 10,000. Explanation: Avya's Gain

7. Option (3) is correct. Explanation: Debenture Redemption Reserve (DRR) is required in case of non-convertible debentures issued whether they are fully or partly paid.

8. Option (4) is correct. Explanation: As per Section 37 of Partnership Act, 1932 in this case there are two options available (i) Interest on his balance @ 6% p.a. (ii) His share of profit.

9. Option (2) is correct.

7

Explanation: Amount to be credited to Income and Expenditure A/c 40,000 (received during the year) - 1,500 (subscription outstanding for provide year) + 2,000 (subscription outstanding for current year) - 800 (subscription received in in advance) =40,000 - 1500+2,000-800=` 39,700

10. Option (1) is correct. Explanation: Loss on Issue of Debenture Account is shown on the Assets side of the Balance Sheet.

11. Option (2) is correct. 12. Option (3) is correct. Explanation: The SUM function in an electronic spreadsheet mainly calculates the total sum of a range of cells. It adds up the values in the specified range and provides the total.

13. Option (4) is correct. 1 × ` 60,000 3             = ` 20,000 Deficient to be borne by Shyam            = ` 30,000 – ` 20,000            = ` 10,000 Ram's Share = ` 30,000 Explanation: Ram's Share =

14. Option (2) is correct. 15. Option (4) is correct. 16. Option (2) is correct. Explanation: Revaluation Account is prepared to adjust the increase or decrease in the values of assets and liabilities at the time of admission of a partner. Realisation Account is prepared at the time of dissolution of the firm. P & L Account is prepared while making the final accounts irrespective of reconstitution of the firm.

17. Option (1) is correct. Explanation: Vertical Analysis is also known as Static Analysis. Common Size Statements are also known as Vertical Analysis.

18. Option (1) is correct. 19. Option (1) is correct.

Solutions Explanation: Trade Receivables Turnover ratio Credit Revenue from Operations = Average Trade Receivables 4=

Credit Revenue from Operations 1,80,000

Credit Revenue from Operations = `1,80,000 × 4 = ` 7,20,000 Credit Revenue from Operations = 75% of Revenue from Operations `7,20,000 = 75% of Revenue from Operations Revenue from Operations = `9,60,000

20. Option (2) is correct. Explanation: Gross Profit =  Gross Profit Ratio × Revenue from Operations 1 = 33 % of `9,60,000 = `3,20,000 3    

21. Option (1) is correct. Explanation: Working Capital Turnover Ratio Revenue from Operations = Working Capital 8=

9,60,000 Working Capital

9,60,000 Working Capital = = ` 1,20,000 8

22. Option (1) is correct. Explanation: Working Capital = Current Assets – Current Liabilities Current Assets = Working Capital + Current Liabilities = `1,20,000 + `5,000 = `1,25,000

23. Option (4) is correct. Explanation: In case of Not-for-Profit Organisations, funds may be classified as: (i) Unrestricted Fund (ii) Restricted Fund (a) Government Grant (b) Endowment Fund (c) Annuity Fund (d) Loan Fund (e) Fixed Assets Fund (f) Prize Fund

24. Option (3) is correct. Explanation: On taking responsibility for payment of a liability by a partner, the account credited will be Capital Account of the Partner.

25. Option (3) is correct.

61

Explanation: Data normalization is a process in database design that aims to eliminate data redundancy and improve data integrity. It ensures that data organize efficiently, reduces inconsistencies, and improves the accuracy and reliability of the data.

26. Option (2) is correct. Explanation:

1 3  2 7

7 6  14 14

1 (Sacrifice) 14

27. Option (4) is correct. Explanation: The face value and the carrying amount of 10% debentures issued at a discount of 20% are equal.

28. Option (4) is correct. Explanation: The partnership may come to an end due to death of a partner, insolvency of partner, by giving notice, etc.

29. Option (2) is correct. 30. Option (2) is correct. Explanation: When no closing stock of medicines given under adjustment, then, the full amount `20,000 (`18,000 + `2,000) is treated as consumed and hence is shown on debit side of Income and Expenditure Account.

31. Option (4) is correct. Explanation: The main objective of Common Size Statement of Profit and Loss is to establish relationship between Revenue from Operations and other items of Statement of Profit and Loss, present changes in various items of incomes and expenses, judge the cost items, etc.

32. Option (3) is correct. 33. Option (1) is correct. Explanation: C’s Share

= `3,00,000 ×

1 6

            = `50,000 Deficiency to be borne by B  = ` 1,00,000 – `50,000 = `50,000

34. Option (1) is correct. Explanation: As purchase and sale of securities giving out of loans and advances is a principle business activity of the financial enterprises, it is shown under the Operating Activity in the cash flow statement.

35. Option (4) is correct. Explanation: Cash received as royalty comes under the head of operating activities and rest are shown in financing activities.

36. Option (1) is correct.

62

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY Explanation: Increase in assets and decrease in liabilities is debited and the revaluation account is credited.

37. Option (2) is correct. 38. Option (4) is correct.

Explanation: Issue and redemption of share and interest paid are considered under financing activities in Cash Flow Statement.

41. Option (3) is correct.

Explanation: Cash deposited into bank will not result into flow of cash, as bank balance is also included into cash and cash equivalents.

39. Option (2) is correct. Explanation: Transactions and events which have been received or paid in cash are shown in Receipts and Payments Account.

40. Option (4) is correct.

Explanation: When debentures are issued as collateral security, the final entry of recording the transaction in the books is: Debenture suspense A/c Dr.    To Debentures A/c

42. Option (4) is correct. 2 6 = `2,00,000, as she gets the share more than the guaranteed, she will not be reimbursed. Explanation: Shakina’s share = `6,00,000 ×

43. Option (1) is correct. Explanation: Dr.

Plant and Machinery Account Particulars

Amount (`)

Cr..

Particulars

Amount (`)

To Balance b/d

4,50,000 By Bank A/c (Sale) (Bal. Fig.)

To Bank A/c (Purchases)

2,50,000 By Accumulated Depreciation A/c

To Statement of Profit and Loss (Profit on Sale)

1,20,000 20,000

By Balance c/d

6,00,000

40,000 7,40,000

Dr.

7,40,000

Accumulated Depreciation Account Particulars

Amount (`)

To Plant and Machinery A/c

By Balance b/d

(Depreciation on Plant & Machine sold)

By Depreciation A/c (Statement of Profit & Loss)

(Profit on Sale)

20,000

To Balance c/d

1,60,000

Cr..

Particulars

Amount (`) 1,00,000 80,000

1,80,000

44. Option (1) is correct. Explanation: Any accumulated reserves and surplus is transferred to the old partners' capital accounts and not to the revaluation account in the old profit sharing ratio and not in sacrificing ratio.

45. Option (2) is correct. Explanation: Old Ratio (Shiv, Mohan and Hari) = 5 : 5 : 4 5       Mohan's profit share = 14 His share is divided between Shiv and Hari equally, i.e. in the ratio of 1 : 1

1,80,000

Share of Mohan taken by Shiv 

5 1 5   14 2 28

Share of Mohan taken by Hari 

5 1 5   14 2 28

New Profit Share'= Old profit share + share taken from Mohan 5 5 10 5 15     Shiv's new share  14 28 28 28 28 Hari's new share 

4 5 8 5 13     14 28 28 28 28

New Profit Share (Shiv and Hari)= 15 : 13

46. Option (2) is correct.

Solutions Explanation: Debentures cannot be forfeited for non-payment of call money, shares can be forfeited by the company for non-payment of call money by the shareholders.

47. Option (4) is correct. Explanation: Subscription outstanding at the beginning of the current year will be deducted from the amount of subscription on the credit side of Income and Expenditure Account and will be added to the amount of subscription.

48. Option (3) is correct. Explanation: On dissolution, the balance of 'Profit & Loss Account appearing on the Assets side of a Balance Sheet is transferred to the debit side of the Partner's Capital Account.

63

49. Option (1) is correct. Explanation: As securities premium reserve is a type of reserve, it is shown in the Reserves and surplus head on the liabilities side of the Balance Sheet.

50. Option (1) is correct. Explanation: Partners' Current Account are opened when their capital accounts are fixed, so that all the items and transactions such as interest on capital, drawings, etc. are adjusted through the Current Account and the capital remains fixed.

nnn

SOLUTIONS OF Question Paper 1. Option (1) is correct. Explanation: Subscriptions received for the year is credited to Income and Expenditure Account.

2. Option (1) is correct. 3. Option (1) is correct. 4. Option (3) is correct. Explanation: There is a contractual relation between the partners of the partnership firm under the consideration of earning profit and carrying out a business.

5. Option (3) is correct. Explanation: Debentures premium cannot be used to pay dividends. It may be utilised for writing off premium allowed on redemption of preference shares or debentures, writing off preliminary expenses, writing off expenses or the commission paid or discount allowed on any issue of share or debentures, etc.

6. Option (1) is correct. 7. Option (2) is correct. Explanation: The accounts receivable module tracks and manages customer transactions in a computerized accounting system.

8. Option (2) is correct. Explanation: Loss on revaluation is a loss for the firm, i.e., there is an increase in the liabilities or a decrease in the assets.

9. Option (2) is correct. Explanation: National Certificates are shown in Balance Sheet.

10. Option (3) is correct. Explanation: A debentureholder is a creditor of the company. A debentureholder gets his money back after a specified period or at intervals or at the options of the company. A debentureholder receives interest irrespective of the profit or loss.

11. Option (2) is correct. 12. Option (2) is correct. Explanation: In the event of dissolution of the firm, the partner's assets are first used for payment of his personal liabilities.

13. Option (3) is correct.

8

14. Option (2) is correct. Explanation: A dividend is a payment to shareholders that is drawn from a company's paid-in-capital or shareholders' equity.

15. Option (3) is correct. 16. Option (3) is correct. Explanation: The old profit sharing ratio of the partners is used at the time of admission of a new partner when the goodwill already exists in the balance Sheet. In other cases the new partner just needs to compensate as per the gaining ratio.

17. Option (3) is correct. Explanation: Microsoft Excel is a widely used software for computerized accounting. It provides features for data entry, calculations, and creating spreadsheets that can use for various accounting tasks

18. Option (3) is correct. 19. Option (3) is correct. 20. Option (3) is correct. 21. Option (3) is correct. Explanation: Called-up amount = `8 per share Re-issue amount = `12 per share Premium = `4 per share Number of shares re-issued = 100 Security premium reflected in the balance sheet at the end of the year = 100 × `4 = `400

22. Option (1) is correct. Explanation: No. of shares forfeited at the end of the year: 200 Amount of share forfeiture to be reflected in the balance sheet: 200 × `3 = `600

23. Option (2) is correct. Explanation: Closing balance of Receipts and Payments account is carried forward to next accounting period's Receipts and Payments Account.

24. Option (2) is correct. Explanation: At the time of dissolution of partnership firm, the amount of 'Bills Payable' shown in the Liabilities side of Balance Sheet is transferred to credit side of realisation account.

Solutions 25. Option (3) is correct.

39. Option (3) is correct.

Explanation: In the case of a fund created for the investments, the fluctuation amount is written by the margin of loss, but in this case as there is profit, the revaluation amount will be debited with the difference amount.

26. Option (3) is correct. Explanation: Only Anita is the partner that is sacrificing her share and both Babita and Chandani are gaining, so they need to give the proportionate goodwill to Anita.

27. Option (3) is correct. Explanation: Interest is paid on debentures irrespective of profit or loss.

Explanation: Electronic spreadsheets mainly use in accounting for financial statement preparation tasks. They provide tools for organizing and manipulating financial data, performing calculations, and generating reports.

40. Option (1) is correct. Explanation: Cash Flow Statement reconciles the opening cash balance with the closing cash balance of a given period on the basis of net decrease or increase in cash during that period.

41. Option (2) is correct. Explanation: Bearer debentures transfer do not require deed of transfer. These debenture can be transferred by mere delivery.

28. Option (2) is correct. Explanation: As C is retiring, the ratio between A and B will remain 2:2 which is 1:1.

42. Option (3) is correct. Explanation: The salaries, profit sharing ratio, commission, etc. are in accordance with the partnership deed, but if there is no partnership deed the partner needs to pay the interest on loan taken by him @ 6%.

29. Option (3) is correct. 30. Option (4) is correct. Explanation: Receipts and Payments Account is a real account, it is cash based and ignores time period.

31. Option (1) is correct. Explanation: Main objective of Common Size Balance Sheet is to present changes in assets and liabilities. The main objective of Comparative Statement of Profit and Loss is to establish relationship between Revenue from Operations and other items of Statement of Profit and Loss.

32. Option (2) is correct. 33. Option (2) is correct. 34. Option (4) is correct.

43. Option (3) is correct. Explanation: Interest paid on Term deposits by a Bank is considered as operating activity, while preparing Cash Flow Statement.

44. Option (1) is correct. Explanation: New share = Old share – Sacrificing share 3  1 1  3 1 41  Anita’s new share        4  5 3  4 15 60 Babita’s new share 

Explanation: Statement of cash flow includes operating activities, investing activities and financing activities.

35. Option (1) is correct.

Sarita’s share 

Explanation: A primary key in a database table refers to a column or set of columns uniquely identifying each record. It ensures the uniqueness of records and facilitates efficient data retrieval and management.

37. Option (2) is correct. 38. Option (4) is correct. Explanation: Sale of Investment by Nonfinancial Enterprise is considered under investing activities.

1 1 2 1 2 7       4  5 3  4 15 60 1 12 12   5 12 60

45. Option (4) is correct. Explanation: When the Balance Sheet is prepared after retirement of a partner (subsequent to preparation of Revaluation Account), revalued values are shown in it.

Explanation: Decrease in Public Deposits shall be considered as an outflow of cash in the Cash Flow Statement.

36. Option (3) is correct.

65

46. Option (3) is correct. Explanation: Purchase Consideration= ` 6,00,000  

Amount paid in cash =10% of ` 6,00,000

           = ` 60,000 Amount of Debentures issued = ` 6,00,000 - ` 60,000 = ` 5,40,000 Issue Price of Debenture = ` 100 - (10% of `100)            = ` 100 - ` 10 = ` 90

66

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY Number of Debentures issued =

5, 40, 000 90

              = 6,000

47. Option (2) is correct. Explanation: Capitalised Value of Furniture = `80,000 + `1,200 = `81,200

48. Option (3) is correct. Explanation: On dissolution of the firm, the amount received from the sale of the unrecorded asset is credited to the Realisation Account and when an unrecorded liability is paid, it is debited to Realisation Account.

49. Option (1) is correct. Explanation: The main objective of Comparative Statement of Profit and Loss is to establish relationship between Revenue from Operations and other items of Statement of Profit and Loss.

50. Option (4) is correct. Explanation: Depreciation is the only item that does not come in the Partner's Capital or Current Account.

nnn

SOLUTIONS OF Question Paper 1. Option (2) is correct. Explanation: Locker's rent amount received by a school is treated as revenue receipt and will be shown on the credit side of Income and Expenditure Account.

2. Option (1) is correct. 3. Option (1) is correct.

4. Option (2) is correct. 5. Option (1) is correct.

6. Option (3) is correct. Explanation: Implementing a firewall and antivirus software is a security measure that helps protect a computerized accounting system from malware and unauthorized access.

7. Option (2) is correct. security

means

8. Option (3) is correct. Explanation: As per section 37 of the Indian Partnership Act, 1932, interest @ 6% p.a. is payable to the retiring partner if full or part of his dues remain unpaid.

9. Option (3) is correct. Explanation: In the absence of partnership deed. Profits or losses are shared equally among partners.

10. Option (1) is correct. Explanation: Debentures issued as collateral security will be debited to Debenture Suspense Account.

11. Option (2) is correct. 12. Option (1) is correct.

13. Option (3) is correct. 5, 000  12  12.5  6 = ` 3,750 100  12

14. Option (3) is correct. Explanation: In a Common Size Balance Sheet, the amount of total liabilities and total assets are assumed to be equal to 100.

15. Option (1) is correct. 16. Option (2) is correct.

Explanation: Amount of premium on redemption of debentures will be the loss on redemption of debentures. Amount of loss on redemption of debentures = ` 110 - ` 100 = ` 10

Explanation: Collateral secondary security.

Explanation: At the time of dissolution of the firm, "Loan of partners" (Loans given by partners to the firm) is paid out of the amount realised on the sale of assets after making the payment of loans given by the third party.

Explanation:

Explanation: Partners need to make a new agreement when there is a death of a partner as the partnership ceases to exist but the firm still goes on and can continue with a new agreement.

9

Explanation: The reserve and surplus that are there during the reconstitution of the firm is to be shared by the old partners in old partners' capital or current account in the old profit sharing ratio.

17. Option (3) is correct. Explanation: Payment of Income Tax is considered as an indirect expense.

18. Option (3) is correct. 19. Option (1) is correct. Explanation: Application for 70,000 shares were received at the rate of `5 inclusive of the premium of `2 . 70,000 × ` 5 = ` 3,50,000

20. Option (2) is correct. Explanation: As only 50,000 shares were issued. 50,000 × `2 = `1,00,000

21. Option (2) is correct. Explanation: As `60,000 out of `2,00,000 is already received so only `1,40,000 is to be received.

22. Option (1) is correct. Explanation: The first and final call amount (`3) is not received on 500 shares. 500 × `3 = `1,500

23. Option (1) is correct. Explanation: Receipts and Payments Account is a real account and Income and Expenditure Account is a nominal Account.

68

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY

24. Option (4) is correct. Explanation: Electronic spreadsheets can help budget and forecast by organizing and analyzing financial data. They allow for creating budget templates, data entry, calculation of budgeted amounts, and variance analysis to aid in budgeting and forecasting.

25. Option (4) is correct. Explanation: It goodwill is already appearing in the books of the account at the time of retirement of a partner, then it should be written off in old profit sharing ratio.

26. Option (3) is correct. Explanation: Arun’s New Share

2 4 8  = 3 5 15

1 4 4  = 3 5 15 1 3 Charan’s Share = = 5 15 \ Arun : Barun : Charan = 8:4:3

Barun’s Share

27. Option (1) is correct. Explanation: Interest on debenture is calculated on the face value of the debentures.

28. Option (3) is correct. Explanation: Profit Sharing Ratio of A and B =

1 1 : = 3: 2 2 3

B's share of Reserve = `30,000 ×

2 = `12,000 5

29. Option (1) is correct. 30. Option (2) is correct. Explanation: Ledger Folio columns are shown by Cash Book.

31. Option (3) is correct. Explanation: Particulars

Amount (`)

Revenue from Operations Less : Cost of Revenue from Operations      7,20,000 Operating Expenses          90,000

12,00,000 8,10,000

Profit before Tax Less : Income Tax @ 40%

3,90,000 1,56,000

Profit after Tax

2,34,000

32. Option (2) is correct. 33. Option (1) is correct. Explanation: Capital Employed = Tangible Assets – Outside Liabilities         = `14,00,000 – `4,00,000         = `10,00,000

34. Option (2) is correct. Explanation: A foreign key in a database table establishes a relationship between two tables. It links a column in one table to the primary key of another table, enabling data retrieval and maintaining data integrity across related tables.

35. Option (4) is correct. Explanation: A decrease in outstanding expenses would result in the change in the Current Liabilities.

36. Option (1) is correct. 37. Option (1) is correct. 38. Option (1) is correct. Explanation: Calculation of Net Cash Flow from Financing Activities: ` Proposed Dividend Paid (1,20,000) 12% Debentures Issued 1,00,000 Interest Paid on Debentures (48,000) Interim Dividend Paid (50,000) Preference Share Capital Issued 2,00,000 Net Cash Used in Financing Activities

82,000

39. Option (4) is correct. Explanation: Income and Expenditure Account is prepared by Non-trading Organisations and Non-Profit Organisations.

40. Option (3) is correct.

Solutions Explanation: The chart of accounts in a computerized accounting system is used to categorize and organize financial transactions. It provides a structure for classifying different types of transactions, such as assets, liabilities, income, and expenses.

69

41. Option (4) is correct. Explanation: There is no maximum limit for premium on issue of debentures by the company.

42. Option (3) is correct.

43. Option (2) is correct. Explanation: Dr.

Provision for Tax Account Particulars

To Bank A/c (Tax Paid) To Balance c/d

Amount (`)

Particulars

64,800 By Balance b/d 72,900 By Statement of Profit and Loss (Provision for tax) (Balance Fig.) 1,37,700

44. Option (4) is correct. 45. Option (4) is correct. Explanation: Deceased partner's executors account are settled: • Paid off immediately • Paid in instalments without interest • Paid in instalments with interest

46. Option (3) is correct. Explanation: Debentures is a written instrument acknowledging a debt written by its company.

47. Option (2) is correct.

Cr. Amount (`) 54,000 83,700 1,37,700

48. Option (1) is correct. Explanation: On the dissolution of a firm, the realisation account is debited with all assets to be realised and credited with all outside liabilities of the firm.

49. Option (4) is correct. Explanation: Operating Expenses include Selling and Distribution Expenses, Office and Administrative Expenses. Provision for Doubtful Debts, etc.

50. Option (1) is correct.

nnn

SOLUTIONS OF Question Paper 1. Option (4) is correct. Explanation: Accounts generally prepared by all Non-Profit Organisations are: • Receipts and Payments Account • Income and Expenditure Account • Balance Sheet

2. Option (4) is correct. 3. Option (3) is correct.

4. Option (3) is correct.

5. Option (1) is correct. Explanation: Interest on debenture is to be paid even if the company suffers a loss.

6. Option (1) is correct. Explanation: All accumulated profits, reserves need to be written off as they are the result of the past profits of the firm.

7. Option (2) is correct. Explanation: When the number of debentures applied is less than the number of debenture offered to public, the issue is said to be under subscribed.

1 2 4 + = 6 12 12

New Profit Sharing Ratio of A and C

9. Option (4) is correct. Explanation: Financial Statements prepared by Not-for-Profit Organisations at the end of the year include: (i) Receipts and Payments Account. (iii) Balance Sheet

10. Option (3) is correct. Explanation: Premium on Redemption of Debentures Account is a Personal Account and it is a liability of the company which is payable on redemption.

11. Option (1) is correct. 12. Option (3) is correct. Explanation: Data backup in a DBMS perform to protect against data loss. Regular backups create copies of the database, ensuring that the data can be restored in case of hardware failures, system crashes, or accidental deletions, preventing data loss.

13. Option (1) is correct. Explanation: 1, 00 , 000 = `20,000 5 Normal Profit = Average Profit – Super Profit Super Profit =

8. Option (4) is correct. 2 6

A and C take this share in 1:1 2 1 2       A will get    6 2 12 A's new share =

C's new share =

(ii) Income and Expenditure Account.

Explanation: Formulas in electronic spreadsheets use to perform calculations on data. They can include mathematical operators, functions, and cell references to perform various calculations, such as addition, subtraction, multiplication, and division.

   

   

2 1 2   6 2 12

8 4 = = : 2 :1            12 12

Explanation: A DBMS provides centralized data management by storing data in a structured manner within a single system. It eliminates the need for separate files and allows efficient data access and manipulation.

Explanation: B’s ratio =

      C will get 

10

3 2 8 + = 6 12 12

       = `50,000 – `20,000 = `30,000

Normal Profit  100 Capital Employed = Normal Profit  100 = NRR 30 , 000 NRR 100 = 30 , 000  100 = 5 5          = `6,00,000

Solutions 14. Option (4) is correct. Explanation: Financial Statement analysis is the process of reviewing and analysing a company's financial statements to make better economic decisions to earn income in future. Analysis of any financial statement comprises Trading Account, Profit & Loss Account and Balance Sheet.

15. Option (2) is correct. 16. Option (2) is correct. 17. Option (3) is correct. Explanation: Objective of Common Size Statement of Profit and Loss are to establish relationship between Revenue from Operations and other items of Statement of Profit and Loss, to present the changes in various items of Statement of Profit and Loss and to provide for a common base for comparison.

18. Option (1) is correct. 19. Option (2) is correct. 20. Option (4) is correct. Explanation: 40% of 50,000 = 20,000

21. Option (1) is correct. Explanation: 30,000 × `2 = `60,000 received extra from the group of 50,000 shares is to be adjusted in the share allotment.

22. Option (2) is correct. 23. Option (3) is correct. Explanation: 'Non-recurring nature', 'Lumpsum' and 'once and for all' amount paid as membership fee, instead of paying regular periodic subscription is called Life Membership Fees.

24. Option (1) is correct. Explanation: Court can make an order to dissolve the firm on many grounds, like when some partner have become fully mad, when a partner becomes permanently incapable of performing his duties as partner, when a partner is guilty of misconduct which will affect the business of the firm, etc.

25. Option (3) is correct. Explanation: A computerized accounting system automates calculations and consolidates financial data, making generating accurate and detailed financial reports easier.

26. Option (1) is correct. 27. Option (4) is correct.

71

Explanation: A company can issue debentures: (i) For cash. (ii) For consideration other than cash (iii) As a collateral security

28. Option (1) is correct. Explanation: Some adjustments with are to be done at the time of retiring partner are: • New profit sharing ratio of continuing partners • Accounting treatment of Goodwill • Accounting treatment of joint life policy

29. Option (1) is correct. 30. Option (3) is correct. Explanation: Some salient features of Income and Expenditure Account are: (i) No opening or closing balance. (ii) Prepared on accrual basis. (iii) Records only revenue items. (iv) Relevant only to the current year.

31. Option (2) is correct. Explanation: Percentage of Change in Current 12, 00, 000  9, 00, 000  100 Liabilities = 12, 00, 000      =

3, 00, 000  100  25% 12, 00, 000

32. Option (2) is correct. 33. Option (1) is correct. 5 = ` 3,000 100 Profit after commission = ` 60,000 – ` 3,000            = ` 57,000 Explanation: ` 60,000 ×

2 Sumi’s Share of profit   = `57,000 × 3            =`38,000

34. Option (1) is correct. Explanation: While preparing Cash Flow Statement, gain on sale of tangible current asset is considered under operating activities.

35. Option (2) is correct. Explanation: Interest collected by an automobile company selling a car on instalment basis will be classified as operating activity.

36. Option (3) is correct. Explanation: 6% of 30,000 = ` 1,800

37. Option (2) is correct. 38. Option (2) is correct.

72

OSWAAL CUET (UG) Sample Question Papers, ACCOUNTANCY Explanation: Calculation of Net Cash Flow from Financing Activities: ` Equity Share Capital raised

3,00,000

10% Debentures Redeemed

(1,00,000)

Preference Share Capital Redeemed

(50,000)

Interim Dividend paid

(20,000)

Proposed Dividend paid

(20,000)

Interest Paid on Debentures

(10,000)

Cash Flow from Financing Activities

1,00,000

39. Option (4) is correct. Explanation: Income and Expenditure Account is generally prepared in T form, vertically and dual presentation.

40. Option (2) is correct. Explanation: Purchase of machine is not a source of cash but an application of cash resources.

41. Option (2) is correct. Explanation: Premium received on issue of debentures may be utilised for writing off premium allowed on redemption of debentures, writing off preliminary expenses. Writing off discount allowed on issue of share or debentures, writing off expenses or the commission paid or discount allowed on any issue of share or debentures, etc.

42. Option (4) is correct. 43. Option (4) is correct. Explanation: Maturity period for a short term Investment from the date of its purchase to be considered as cash equivalents should be 3 months or less than 3 months.

Explanation: Ram’s Share = `4,00,000 ×

2 10

            = `80,000      Deficiency = `90,000 – `80,000             = `10,000 3 Rahim’s share in deficiency = `10,000 × 5              = `6,000

45. Option (1) is correct. Explanation: Goodwill is recorded on the retirement of a partner as: Remaining Partner's Capital A/c  Dr. (In Gaining Ratio) To Retiring Partner's Capital A/c  (with his Share of Goodwill)

46. Option (2) is correct. Explanation: Excess value of net assets over purchase consideration at the time of purchase of business is credited to capital Reserve Account.

47. Option (3) is correct. Explanation: Payment of Honorarium of Secretary is a revenue expenditure.

48. Option (1) is correct. Explanation: `3,000 paid to workers will be recorded on the debit side of Realisation Account.

49. Option (4) is correct. Explanation: Percentage of Fixed Assets on Fixed Assets × 100 Total Assets= Total Assets      =

24, 00, 000  100  40% 60, 00, 000

50. Option (3) is correct.

44. Option (2) is correct. nnn

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