CUET 2024 Accountancy Question Paper with Answers & Solutions

Correct answer: B

Charitable trusts run libraries to serve members/society, not to earn profit; hence they are Not for Profit Organisations (NPOs).

Correct answer: C

NPOs are funded chiefly by subscriptions/membership fees, donations and grants; subscription from members is the main recurring revenue source.

Correct answer: D

Share capital = subscribed but not fully paid (III); Reserves and surplus = sinking fund (IV); Reserve capital = called only at winding up (I); Current liabilities = calls in advance (II). Hence (A)-III, (B)-IV, (C)-I, (D)-II.

Correct answer: A

Revaluation Account records changes in the value of assets and liabilities. Increase in assets is a revaluation gain credited to Revaluation A/c. The others are partner-related appropriations not affecting revaluation.

Correct answer: A

Final accounts order: Trading A/c -> Profit & Loss A/c -> Profit & Loss Appropriation A/c -> Balance Sheet, i.e. (C), (B), (A), (D).

Correct answer: A

Window dressing is manipulating/presenting accounts to show a more favourable financial position than the actual one.

Correct answer: C

Salary to partner -> credited to Partner's Current A/c (IV); Interest on partner's loan -> debited to P&L A/c (III, a charge against profit); Interest on drawings -> debited to Partner's Current A/c (II); Additional capital -> credited to Partner's Capital A/c (I). Hence (A)-IV, (B)-III, (C)-II, (D)-I.

Correct answer: C

Revaluation A/c is affected by increase in assets, recording of unrecorded assets and decrease in liabilities (all revaluation gains). Drawings against capital is not a revaluation item. Hence (A), (C) and (D).

Correct answer: D

Purchase of tangible assets = investing (III); Issue of shares = financing (IV); Increase in current assets = operating (I); Marketable securities = cash and cash equivalents (II). Hence (A)-III, (B)-IV, (C)-I, (D)-II.

Correct answer: C

Common size statement is a vertical analysis (C); in the income statement items are shown as % of revenue from operations (A), and in the balance sheet as % of total assets (D). It is not horizontal analysis. Hence (A), (C) and (D).

Correct answer: A

Purchase of machinery is an investing activity; payment by cheque is a cash outflow of ₹3,50,000.

Correct answer: B

First compute net profit before tax (working note) (D), then operating (A), then investing (C), then financing (B). Hence (D), (A), (C), (B).

Correct answer: B

Overvalued closing stock inflates the concerned year's profit, so it is reduced from that year's profit (A); the same overvalued closing stock becomes next year's opening stock which understates next year's profit, so it is added back to next year's profit (C). Hence (A) and (C).

Correct answer: B

Oversubscription means applications received are for more shares than the company offered/issued.

Correct answer: B

Amount received before forfeiture = ₹(50-10)=₹40 per share x 400 = ₹16,000 (forfeited a/c). Reissue at ₹45 (par ₹50) -> discount ₹5 x 400 = ₹2,000. Capital reserve = 16,000 - 2,000 = ₹14,000.

Correct answer: D

Issued at premium -> Securities Premium A/c credited (C). Redeemed at premium -> Loss on Issue of Debentures A/c debited (B) and Premium on Redemption of Debentures A/c credited (D). No discount arises. Hence (B), (C) and (D).

Correct answer: B

On forfeiture: Share Capital A/c debited with amount called up (IV); Share Forfeited A/c credited with amount already received towards capital (III); Calls-in-arrears A/c credited with amount not received (II); Securities Premium A/c debited with premium not received/amount not received (I). Hence (A)-IV, (B)-III, (C)-II, (D)-I.

Correct answer: D

Sequence: Issue of debentures (C) -> Creation of DRR (B) -> Redemption becomes due (D) -> Payment to debenture-holders (A). Hence (C), (B), (D), (A).

Correct answer: A

Under the Companies Act, if application money is not refunded within the prescribed period after failure to obtain minimum subscription, the company is liable to pay interest at 15% p.a.

Correct answer: C

Calls in advance can be accepted only if the Articles of Association of the company so authorise.

Correct answer: B

Profit ascertained on the date of death is distributed among partners; the share is appropriated through the Profit and Loss Appropriation Account, which is debited (with credit to partners' capital accounts).

Correct answer: B

Book value ₹45,000 is undervalued by 10%, i.e. it represents 90% of true value. True value = 45,000/0.90 = ₹50,000.

Correct answer: C

For a non-financial company, dividend received on investments is classified as an investing activity in the Cash Flow Statement.

Correct answer: D

The maximum number of partners (50) is prescribed by the Central Government through the rules under the Companies Act, 2013 (Rule 10 of Companies (Miscellaneous) Rules, 2014).

Correct answer: B

A sequential (block) code assigns a consecutive range of numbers to a group; “100-199” for dealers of small pumps is a sequential/block code. The others are mnemonic codes.

Correct answer: C

When there is no claim, the entire Workmen Compensation Reserve is a free reserve distributed among the old partners in their old profit-sharing ratio, i.e. credited to old partners' capital accounts.

Correct answer: A

New ratio = 1/3 each = 10/30. Old: A=3/10=9/30, B=9/30, C=4/10=12/30. A: 10/30-9/30 = gain 1/30; B: gain 1/30; C: 10/30-12/30 = sacrifice 2/30.

Correct answer: D

Average period for interest on drawings: end of each half year = 3 months (IV); beginning of each quarter = 7.5 months (III); beginning of each month = 6.5 months (II); end of each quarter = 4.5 months (I). Hence (A)-IV, (B)-III, (C)-II, (D)-I.

Correct answer: A

Mohan's actual share = 1/4 of ₹76,000 = ₹19,000. Guaranteed ₹25,000, so deficiency = ₹6,000, borne by Kavita and Lalita in 2:1. Kavita's share = 6,000 x 2/3 = ₹4,000.

Correct answer: A

Anshu = 3/5 - 2/10 = 6/10 - 2/10 = 4/10; Nitu = 2/5 - 1/10 = 4/10 - 1/10 = 3/10; Jyoti = 3/10. New ratio = 4 : 3 : 3.

Correct answer: B

Premium brought in cash -> Premium for Goodwill A/c debited when distributed (B); sacrificing partner is compensated -> Sacrificing Partner's Capital A/c credited (C); a gaining old partner must compensate -> Gaining Partner's Capital A/c debited (A). Hence (A), (B) and (C).

Correct answer: C

Goodwill is an intangible fixed asset; its purchase is an investing activity (cash outflow).

Correct answer: B

The components of a Computerised Accounting System are Data, People, Procedure, Hardware and Software.

Correct answer: A

The Sales and Accounts Receivable subsystem records sales transactions, maintains the sales ledger and manages receivables from debtors.

Correct answer: D

The common fields linking related tables in a database are key fields (primary/foreign keys).

Correct answer: B

On dissolution, bank overdraft is an external liability and is transferred to the Realisation Account.

Correct answer: D

Stages of company formation: Promotion (C) -> Incorporation (B) -> Floatation/Subscription (D) -> Commencement of Business (A). Hence (C), (B), (D), (A).

Correct answer: C

Descending order of magnitude: Authorised (C) > Issued (B) > Subscribed (A) > Called-up (E) > Paid-up (D). Hence (C), (B), (A), (E), (D).

Correct answer: B

The deceased partner's capital account is built up from opening capital (A), share of profit/loss to date of death (B), share of reserves like General Reserve (C) and reduced by his drawings (D). The amount paid to executors is transferred out via Executor's A/c, not an item within the capital account balance. Hence (A), (B), (C) and (D).

Correct answer: C

Goodwill amortised (E) is a non-cash item added back to get Operating profit before working capital changes (A); after working capital adjustments we get Cash generated from operations (B); then Income tax paid (C) is deducted to arrive at Net cash flow from operating activities (D). Hence (E), (A), (B), (C), (D).

Correct answer: A

Trade Receivables = Bills Receivable + Trade Debtors = 48,000 + 59,000 = 1,07,000. TRTO = Revenue from Operations / Trade Receivables = 8,75,000 / 1,07,000 = 8.18 times.

Correct answer: C

Average Collection Period = 365 / TRTO = 365 / 8.18 ≈ 44.6 ≈ 45 days.

Correct answer: B

Trade Payables = Creditors + Bills Payable = 90,000 + 52,000 = 1,42,000. TPTO = Net Purchases / Trade Payables = 4,20,000 / 1,42,000 = 2.96 times.

Correct answer: A

Average Payment Period = 365 / TPTO = 365 / 2.96 ≈ 123 days.

Correct answer: C

Turnover ratios such as Trade Receivables and Trade Payables Turnover Ratios measure efficiency of asset/liability usage and are classified as Activity (Turnover) Ratios.

Correct answer: A

All partners mutually decided to dissolve the firm; dissolution with the consent of all partners is dissolution by agreement.

Correct answer: B

Liabilities side = Capitals (4,00,000+3,00,000+2,00,000) + Liabilities 80,000 = ₹9,80,000. Assets side = Cash 40,000 + Sundry Assets 8,50,000 = ₹8,90,000. Balancing figure (debit balance of P&L, i.e. accumulated loss) = 9,80,000 - 8,90,000 = ₹90,000 (Dr.).

Correct answer: A

Sundry assets ₹8,50,000 realised at 80% = ₹6,80,000, loss = ₹1,70,000. Recorded liabilities ₹80,000 paid in full (no gain/loss). Unrecorded liability paid ₹40,000 and realisation expenses ₹30,000 are additional losses = ₹70,000. Total Realisation Loss = 1,70,000 + 40,000 + 30,000 = ₹2,40,000.

Correct answer: B

Realisation expenses ₹30,000 were paid by G on behalf of the firm, so the firm owes G. Entry: Realisation A/c Dr. To G's Capital A/c.

Correct answer: A

Accumulated/undistributed Profit and Loss (here a debit loss) is transferred to partners' capital accounts in their profit-sharing ratio, i.e. 5 : 3 : 2.