CUET 2023 Accountancy Question Paper with Answers & Solutions

Correct answer: D

A partnership deed is a legal document and must be drafted and prepared as per the provisions of the Indian Stamp Act, i.e., on appropriately stamped paper.

Correct answer: B

Normal profit = 9,00,000 × 20% = 1,80,000. Super profit = 2,80,000 − 1,80,000 = 1,00,000. Goodwill = Super profit × 100/Normal rate = 1,00,000 × 100/20 = ₹ 5,00,000.

Correct answer: D

On retirement/death, gaining partners compensate the retiring partner for his/her share of goodwill, and also any continuing partner who has sacrificed a share. Hence compensation goes to remaining partners who sacrificed as well as the retiring partner.

Correct answer: B

Monika's share = 2/5. Capital 50,000 + reserve share (15,000×2/5=6,000) + goodwill share (30,000×2/5=12,000) + revaluation profit (7,050×2/5=2,820) = 50,000+6,000+12,000+2,820 = ₹ 70,820.

Correct answer: D

Shaniya's dues 4,50,000 are settled by furniture (25% of value F) + BoE 52,000 + loan 2,75,000. So 0.25F + 52,000 + 2,75,000 = 4,50,000 → 0.25F = 1,23,000 → F = ₹ 4,92,000.

Correct answer: A

On dissolution, all assets including goodwill (appearing in the books) are transferred to the debit side of the Realisation Account at book value.

Correct answer: D

Good debtors = 2,50,000 − 10,000 = 2,40,000. Realised 70% = 2,40,000 × 70% = ₹ 1,68,000, which is debited to Bank A/c.

Correct answer: A

Expenses (₹10,000) are to be borne by Rohit himself, so the firm does not reimburse them. Only his agreed remuneration of ₹ 12,000 is credited to his capital account.

Correct answer: B

Receipts and Payments Account records actual cash received. The actual sale proceeds of ₹ 7,000 are shown on the receipts side (book value/loss is irrelevant for this cash statement).

Correct answer: D

When a specific (matching) Tournament Fund exists, related expenses are deducted from the fund on the liabilities side of the Balance Sheet, not charged to Income and Expenditure Account.

Correct answer: A

Purchases = Payments 3,70,000 − opening creditors 25,000 + closing creditors 17,000 + opening advance 11,000 − closing advance 18,000 = 3,55,000. Medicine consumed = Purchases 3,55,000 + opening stock 62,000 − closing stock 54,000 = ₹ 3,63,000.

Correct answer: A

Issue price per debenture = 100 − 4% = ₹ 96. Number of debentures = 28,80,000 / 96 = 30,000.

Correct answer: B

Codification assigns codes to accounts/items so that data can be processed easily and proper, systematic records can be maintained.

Correct answer: B

In Microsoft Excel/Office, the shortcut Ctrl + F1 collapses (minimises) or expands the ribbon.

Correct answer: A

A chart legend can be moved and placed anywhere on the chart (top, bottom, left, right, or dragged to any position).

Correct answer: D

Tables are linked through common key fields (primary key and foreign key) that establish the relationship between them.

Correct answer: A

As per Schedule III, Securities Premium is shown under Shareholders' Funds, in the sub-head 'Reserves and Surplus'.

Correct answer: C

A company prepares and furnishes its annual report (financial statements) primarily to its shareholders/members.

Correct answer: C

Common size statements express items as a percentage of a common base of the same year, hence they are a form of vertical analysis.

Correct answer: B

Debt Equity Ratio = Long-term Debt / Equity. Payment to creditors (a current liability) affects neither long-term debt nor equity, so the ratio is unaffected.

Correct answer: B

Revenue from operations = 5,00,000/25% = 20,00,000. Employee benefit exp = 30% × 20,00,000 = 6,00,000. Profit before tax = 20,00,000 + 5,00,000 − 6,00,000 = 19,00,000. Net profit after tax = 19,00,000 × (1−0.40) = ₹ 11,40,000.

Correct answer: D

Issue of shares, repayment of bank loan and redemption of debentures are financing activities. Rent received is an operating (or investing) item, so it is the odd one out.

Correct answer: D

Options A, B and C are non-cash transactions. Purchase of land by taking a loan involves an actual cash flow (the loan amount/payment), hence it is a cash transaction.

Correct answer: D

Only the cash portion (50% of 5,00,000 = 2,50,000) paid by cheque is a cash flow. Purchase of machinery is an investing activity, so it is an outflow of ₹ (2,50,000). The bond portion is a non-cash transaction.

Correct answer: C

Old ratio 3:2:1 (18:12:6 of 36); new equal (12:12:12 of 36). A sacrifices 6/36=1/6, C gains 6/36=1/6, B no change. Net adjustment of goodwill+reserve = 1,20,000+60,000 = 1,80,000. Gaining partner C is debited 1,80,000×1/6 = 30,000 and sacrificing partner A credited 30,000.

Correct answer: B

As per Section 48, order is: pay outside debts to third parties (secured (B) then unsecured (E)), then partners' advances/loans (C), then partners' capital (A), and finally distribute the residue in profit sharing ratio (D): (B),(E),(C),(A),(D).

Correct answer: B

Sequence: Average profit (D) → Capital employed (B) → Normal profit (C) [normal rate × capital employed] → Super profit (A) [average − normal] → Goodwill (E): (D),(B),(C),(A),(E).

Correct answer: B

Sequence: Gaining/Sacrificing ratio (C) → Revaluation Account (E) → Partners' Capital Account (D) → Transfer balance to retiring partner's Loan A/c (B) → New Balance Sheet (A): (C),(E),(D),(B),(A).

Correct answer: B

Sequence: Ascertain net profit after charges (C) → Transfer it to credit side (A) → Debit appropriations like salary (D) → Credit interest on drawings/deficiency (E) → Divide remaining profit among partners (B): (C),(A),(D),(E),(B).

Correct answer: B

Sequence: Issue prospectus (B) → Receive applications (A) → Allotment (C) → Make call due (D) → Receive call money (E): (B),(A),(C),(D),(E).

Correct answer: B

Capital employed = Total assets − Current liabilities = Non-current assets + Current assets − Current liabilities (B); it also equals Shareholders' funds + Long-term debt = Equity + Debt (D). Hence (B) and (D).

Correct answer: B

Retiring partner's capital account is credited with his existing capital balance (A), his share of goodwill (B) and his share of reserves/accumulated profits (D). Drawings are debited; remaining partners' goodwill is not credited to him.

Correct answer: B

Debentures issued for consideration other than cash are those issued to a vendor (B) or creditor (D) for assets/goods, and those issued to a bank as additional/collateral security (A). Issue to public (C) and for cash (E) are for cash consideration.

Correct answer: B

Unclaimed dividend (B), interest accrued but not due on loan (C) and acceptances/bills payable (D) are current liabilities. Trade receivables (A) is an asset; debentures redeemable after 4 years (E) is a non-current liability.

Correct answer: A

Cash equivalents are short-term highly liquid investments: demand deposits with bank (A), treasury bills (C), commercial paper (D) and marketable securities (E). Bills receivable (B) is not a cash equivalent.

Correct answer: A

Application money at least 5% (IV); call should not exceed 25% (I); minimum subscription cannot be less than 90% of issued amount (II); interest on calls-in-arrears @10% p.a. (III). So A-IV, B-I, C-II, D-III.

Correct answer: A

Authorised capital = maximum amount raisable in lifetime (II); Reserve capital = portion of uncalled capital to be called only at winding up (I); Issued capital = capital issued to public for subscription (III); Subscribed but not fully paid = amount called up and received but not fully (IV). A-II, B-I, C-III, D-IV.

Correct answer: C

Current Ratio = Liquidity (II); Inventory Turnover Ratio = Activity (IV); Return on Investment = Profitability (III); Proprietary Ratio = Solvency (I). A-II, B-IV, C-III, D-I.

Correct answer: B

Cash Flow Statement is prepared on Cash Basis (II); Dividend paid is a cash outflow from financing activities (IV); Investment in shares cannot be treated as cash equivalent (I); Treasury bills are classified as cash equivalents (III). A-II, B-IV, C-I, D-III.

Correct answer: B

Over subscription = applications more than shares issued (II); Minimum subscription = minimum amount that must be raised (I); Under subscription = applications less than shares issued (IV); Private placement = allotment without issue of prospectus (III). A-II, B-I, C-IV, D-III.

Correct answer: C

Suraj's goodwill ₹ 90,000 is shared by Amrita and Kalyani in their sacrificing ratio 1:4. Amrita = 90,000×1/5 = 18,000; Kalyani = 90,000×4/5 = 72,000. So ₹ 18,000 ; ₹ 72,000.

Correct answer: A

Revaluation: Machinery +2,00,000, Land +40,00,000, Computers −2,00,000 → net profit = 40,00,000. Shared in old ratio 3:2: Amrita = 40,00,000×3/5 = 24,00,000; Kalyani = 40,00,000×2/5 = 16,00,000.

Correct answer: B

Surplus of Workmen Compensation Fund = 5,00,000 − claim 2,00,000 = 3,00,000, distributed in old ratio 3:2. Amrita's share = 3,00,000 × 3/5 = ₹ 1,80,000.

Correct answer: B

Existing goodwill of ₹ 60,000 in the books must be written off among old partners in their old ratio 3:2 before admission. Amrita = 36,000, Kalyani = 24,000 debited; Goodwill A/c credited ₹ 60,000.

Correct answer: A

As per Section 31 of the Indian Partnership Act, 1932, a new partner can be admitted only with the consent of all the existing partners (unless the deed provides otherwise).

Correct answer: B

Since these debentures carry a coupon (10%) and are repayable after a fixed period (6 years), they are Redeemable Debentures.

Correct answer: A

Perpetual debentures (which are not repayable during the lifetime of the company) are called Irredeemable Debentures.

Correct answer: C

Discount on issue = 10% of ₹ 12,00,000 = ₹ 1,20,000, transferred to Discount on Issue of Debentures A/c.

Correct answer: A

Securities Premium = 15% of ₹ 8,00,000 = ₹ 1,20,000, credited to Securities Premium Reserve A/c. (Note 25+50+40=115 confirms the ₹15 premium per ₹100 debenture × 8,000 debentures = 1,20,000.)

Correct answer: C

When debentures are issued as collateral security and recorded in the books, the Debentures Suspense A/c is debited with the nominal (face) value of debentures issued, i.e., ₹ 8,00,000.