CUET UG 2025 Accountancy Previous Year Solved Paper

CUET UG 2025 Accountancy previous year paper with easy solutions. This page keeps the original questions and presents student-friendly explanations in a clean table format for quick revision, practice, and topic-wise mock preparation.

Subject: Accountancy
Year: 2025
Questions extracted: 50
Source format: previous year paper PDF with solution section

Student-Friendly Solutions Table

Each question is shown with its original wording from the source paper and an easier explanation designed for quick understanding.

Q.No. Question Easy Solution
1Q.1. Which of the following indicate limitation of Financial analysis:
1. They focus on the facts and relationships related to managerial
performance, corporate efficiency etc.
2. Thex does pot copsider price level changes
3. They indicate the ability of the company to meet its obligations.
4. They provide vital information to different stakeholders.

wer: (2) They do not consider price level changes.
Financial analysis is based on historical cost data and does not adjust figures
for changes in price levels or inflation. Therefore, the real value of assets,
liabilities, and profits may be distorted over time. This makes “They do not
consider price level changes” a limitation of financial analysis.

2Q.2. G.S. Rai company Itd. purchased assets of the book value of Rs. 98,000 from
another firm. It was agreed that purchase consideration be paid by issuing 11%
debentures of Rs. 100 each. Assume debentures have been issued at discount of
20%
Identify the number of debentures issued by the company to the vendor
1. 1100 debentures
2. 12oo debentures
3. 1225 debentures
4. 1960 debentures

wer: (3) 1225 debentures
Book value of assets purchased = ₹98,000
Debentures issued at 20% discount → Issue price per debenture = ₹100 −
20% of ₹100 = ₹80
Company will issue debentures worth ₹98,000 at ₹80 each.
Number of debentures = ₹98,000 ÷ ₹80 = 1,225 debentures
Hence, the company issued 1,225 debentures to the vendor.

3Q.3. X Ltd., has a current ratio of 3:1 and quick ratio of 2:1. If excess of current
assets over quick assets, represented by inventories is Rs. 5,000, calculate
current assets and quick assets.
1. Rs. 15000; Rs. 10000
2. Rs. 15000: Rs. 14000
3. Rs. 10,000; Rs. 15000
Previous Years' Paper
Common University Entrance Test for UG Programmes
Entrance Exam, 2025
CUET-UG - Accountancy
(After the list of questions, the solution will Start.)

4. Rs. 15000; Rs. 18000

wer: (1) ₹15,000; ₹10,000
Let current liabilities = ₹x
Then,
Current ratio = 3 : 1 ⇒ Current Assets = 3x
Quick ratio = 2 : 1 ⇒ Quick Assets = 2x
Excess of current assets over quick assets = Inventories = ₹5,000
⇒ (3x − 2x) = ₹5,000
⇒ x = ₹5,000

Therefore,
Current Assets = 3x = ₹15,000
Quick Assets = 2x = ₹10,000

4Q.4. A, B and C are partners in a firm. If D is admitted as a new partner, what
will be its affect?
1. Old firm is dissolved
2. Old firm and old partnership is dissolved
3. Old partnership is reconstituted
4. Firm will lose its existence

wer: (3) Old partnership is reconstituted
When a new partner (D) is admitted into a firm, the old partnership
agreement comes to an end, and a new partnership agreement is formed
among all partners (A, B, C, and D). However, the firm continues to exist —
only its constitution (ownership structure) changes.
Thus, the old partnership is reconstituted, not dissolved.

5Q.5. The director of Priya polymer Limited resolved that 200 equity shares of Rs.
100 each be forfeited for non-payment of the second and final call of Rs. 30 per
share. Out of these, 150 shares were re-issued at Rs. 60 per share to Monit. The
amount of capital reserve will be:
1. Rs. 4000
2. Rs. 4500
3. Rs. 5500
4. Rs. 5000

wer: (1) ₹4,000
Face value of each share = ₹100
Unpaid amount (Second & Final Call) = ₹30 → Amount received per forfeited
share = ₹70
Total shares forfeited = 200 → Forfeited amount = 200 × ₹70 = ₹14,000
150 shares reissued at ₹60 → Reissue amount = 150 × ₹60 = ₹9,000
Nominal value = 150 × ₹100 = ₹15,000 → Loss on reissue = ₹15,000 −
₹9,000 = ₹6,000
Forfeited amount for 150 shares = 150 × ₹70 = ₹10,500
Capital Reserve = ₹10,500 − ₹6,000 = ₹4,500

6Q.6. A business has earned average profits of Rs. 1,00,000 during the last few
years and the normal rate of return in a similar business is 25%. Ascertain the
value of goodwill by capitalisation of average profits method, given that the
value of net assets of the business is Rs. 3.20.000.
1. Rs. 80,000
2. Rs. 2,40,000
3. Rs. 4,00,000
4. Rs. 2,60,000

wer: (1) ₹80,000
Average Profit = ₹1,00,000
Normal Rate of Return = 25%
Net Assets = ₹3,20,000

Capitalised Value of Business = (Average Profit × 100) / Normal Rate of
Return
= (₹1,00,000 × 100) / 25 = ₹4,00,000
Goodwill = Capitalised Value − Net Assets
= ₹4,00,000 − ₹3,20,000 = ₹80,000

7Q.7. Rana, Sana and Kamana are partners, sharing profits in the ratio 4:3:2. Rana
retires; Sana and Kamana decided to share profits in the future in the ratio of
5:3. The Gaining Ratio of Sana and Kamana will be
1. 21:11

2. 11:21
3. 11:22
4. 12:21

wer: (1) 21 : 11
Old ratio (Rana, Sana, Kamana) = 4 : 3 : 2 → Sana = 3/9, Kamana = 2/9
New ratio (Sana : Kamana) = 5 : 3 → Sana = 5/8, Kamana = 3/8
Gaining Ratio = New Share − Old Share
Sana = 5/8 − 3/9 = 21/72
Kamana = 3/8 − 2/9 = 11/72
Gaining Ratio = 21 : 11

8Q.8. The following journal entry appears in the books of X Co. Ltd.
Bank A/c Dr. 4,75,000
Loss on issue of debenture A/c 75,000
To 12% Debentures A/c Dr. 5,00,000
To Premium on Redemption of Debenture A/с 50,000
In this case the debentures have been issued at a discount of 5%. What is the
rate of premium on redemption of debentures ?
1. 5%
2. 15%
3. 20%
4. 10%

wer: (4) 10%
Face value of debentures = ₹100 each
Issued at 5% discount → Issue price = ₹95 per debenture
Premium on redemption = ₹50,000 on ₹5,00,000 debentures
Rate of premium = (50,000 ÷ 5,00,000) × 100 = 10%
Therefore, the rate of premium on redemption = 10%

9Q.9. Stock at the time of dissolution was appearing in books at Rs 50,000. Half of
the stock was sold at a discount of 20% and the remaining was taken over by
one of the partners at a 10% discount. What amount was received in cash at the
time of realization of stock.
1. Rs. 25,000
2. Rs. 42,500
3. Rs. 20,000
4. Rs. 45000

wer: (3) ₹20,000.
Total stock = ₹50,000 → Half of it = ₹25,000 sold at 20% discount → Cash
received = ₹25,000 − ₹5,000 = ₹20,000.
Remaining half = ₹25,000 taken over by partner at 10% discount → Value =
₹25,000 − ₹2,500 = ₹22,500.
Hence, cash received at the time of realization of stock = ₹20,000.

10Q.10. Hemant and Naman are partners in a firm sharing profits in the ratio of
3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted
Samrat on Jan. 1, 2025 as a new partner for 1/5 share in the future profits.

Samrat brought Rs. 60.000 as his capital. Calculate the yalue of goodwill of the
firm ?
1. Rs. 1,20,000
2. Rs. 1,10,000
3. Rs. 1,30,000
4. Rs. 1,40,000

wer: (2) ₹1,10,000
Explanation (concise format):
Hemant and Naman’s capitals = ₹80,000 + ₹50,000 = ₹1,30,000
Samrat’s capital = ₹60,000 for a 1/5 share in profits
👉 Implied Total Capital = Samrat’s capital ÷ Samrat’s share
= ₹60,000 ÷ (1/5) = ₹3,00,000
👉 Actual Total Capital after Admission = ₹80,000 + ₹50,000 + ₹60,000 =
₹1,90,000
Therefore,
Goodwill of the Firm = ₹3,00,000 − ₹1,90,000 = ₹1,10,000

11Q.11. The common size statements are useful, both, in intra-firm comparisons
over different years and also in making interfirm comparisons for several years.
This analysis is also known as
1. 'Vertical analysis'
2. 'Ratio analysis
3. 'Trend analysis'
4. 'Horizontal analysis'

wer: (1) Vertical Analysis
Common-size statements show each item of a financial statement (like
Balance Sheet or Profit & Loss Account) as a percentage of a common base
item —
• For Balance Sheet → total assets or total liabilities = 100%
• For Income Statement → net sales = 100%
This helps compare the proportion of each item:
• Within the same firm over different years (intra-firm comparison)
• Between different firms in the same industry (inter-firm comparison)
Since this analysis studies the relative size (vertical proportion) of items in a
single statement, it is called Vertical Analysis.

12Q.12. The need for Codification is :
1. The Encryption of data
2. The Generation of mnemonic code
3. To secure the accounts, reports etc
4. Easy to process data, keeping proper records

wer: 4. Easy to process data, keeping proper records

Codification in accounting means assigning codes or symbols to different
accounts or items to make recording, classification, and retrieval of data
easier.
It helps in systematic record-keeping, quick data processing, and avoiding
confusion in large organizations.
Hence, the need for codification is for easy data processing and maintaining
proper records — Option 4.

13Q.13. Which analysis is a judgemental process which aims to estimate current
and past financial positions and the results of the operation of an enterprise,
with primary objective of determining the best possible estimates and
predictions about the future conditions?
1. Cash flow Analysis
2. Trend Analysis
3. Ratio Analysis
4. Financial statement analysis

wer: 4. Financial Statement Analysis
Financial statement analysis is a judgemental and interpretative process used
to study and evaluate the financial position, performance, and profitability of a
business using its financial statements.
The main aim is to make estimates and predictions about future financial
conditions, based on past and present data.
Hence, the correct answer is Financial Statement Analysis.

14Q.14. Where is the address of the active cell displayed?
1. Row heading
2. Status bar
3. Name Box
4. Formula bar

wer: 3. Name Box
In spreadsheet software like MS Excel, the address of the active cell (for
example, A1, B3, C5) is displayed in the Name Box, which is located on the left
side of the formula bar.
Hence, the correct answer is Name Box.

15Q.15. From the following details, calculate net profit before tax:
Net Profit after tax is Rs. 50,000;
15% Long-term debt 12,00,000;
Tax rate 20%.
1. 1,80,000
2. 1,50,000
3. 62,500
4. 72,500

wer: 3. ₹62,500
Given:
• Net Profit after tax = ₹50,000
• Tax rate = 20%
Formula:

Net Profit after tax=Net Profit before tax×(1−Tax rate)Net Profit after tax=Ne
t Profit before tax×(1−Tax rate)
Substitute the values:

Net Profit before tax = ₹62,500 (Option 3)

16Q.16. A trader carries an average inventory of Rs. 40,000. His inventory
turnover ratio is 8 times. If he sells goods ata profit of 20% on Revenue from
operations, find out the gross profit.
1. Rs. 60.000
2. Rs. 70,000
3. Rs. 90,000
4. Rs. 80,000

wer: 4. — ₹80,000
Average inventory = ₹40,000, Inventory turnover ratio = 8
→ Cost of goods sold = 8 × 40,000 = ₹3,20,000
Profit = 20% on sales ⇒ COGS = 80% of sales
→ Sales = ₹3,20,000 ÷ 0.8 = ₹4,00,000
→ Gross Profit = ₹4,00,000 − ₹3,20,000 = ₹80,000

17Q.17. Gross profit ratio of a company was 25%. Its credit revenue from
operations was Rs. 20,00,000 and its cash revenue from operations was 20% of
the total revenue from operations. If the indirect expenses of the company were
Rs. 50.000, Calculate its net profit.

1. 5,00,000
2. 6,25,000
3. 6,00,000
4. 5,75,000

wer: 4. ₹5,75,000
Total Revenue = Credit Revenue + Cash Revenue
Credit Revenue = ₹20,00,000 (which is 80% of total)
→ Total Revenue = ₹20,00,000 ÷ 0.8 = ₹25,00,000
Gross Profit = 25% of ₹25,00,000 = ₹6,25,000
Indirect Expenses = ₹50,000
→ Net Profit = ₹6,25,000 − ₹50,000 = ₹5,75,000

18Q.18. Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of
3:2: 1. Deepa retires. After making all adjustments relating to revaluation,
goodwill, Payment to Deepa and accumulated profit etc., the capital accounts of
Asha and Lata showed a credit balance of Rs. 1.60.000 and Rs. 80.000
respectively. It was decided to adiust the capitals of Asha and Lata in their new
profit sharing ratio. You are required to calculate the new capitals of the
partners i.e Asha and Lata.
1. Rs.1,80,000 & Rs.1,70,000
2. Rs.1,80,000 & Rs.60,000
3. Rs. 60,000 & Rs.1,60,000
4. Rs.1,60,000 & Rs. 80,000

wer: 2. ₹1,80,000 & ₹60,000

Old profit-sharing ratio (Asha : Deepa : Lata) = 3 : 2 : 1
Deepa retires → New ratio of Asha and Lata = 3 : 1
After all adjustments:
Asha’s capital = ₹1,60,000
Lata’s capital = ₹80,000
Total capital = ₹2,40,000
To adjust in new ratio 3 : 1
→ Total capital = ₹2,40,000
→ Asha’s new capital = 3/4 × 2,40,000 = ₹1,80,000
→ Lata’s new capital = 1/4 × 2,40,000 = ₹60,000
New Capitals:
Asha = ₹1,80,000
Lata = ₹60,000

19Q.19. A and B are partners sharing profits in the ratio of 2:1. C is admitted into
the firm for 1/4 share of profits. C brings in Rs. 20,000 in respect of his capital.
The capitals of old partners A and B, after all adjustments relating to goodwill,
revaluation of assets and liabilities, etc, are Rs. 45.000 and Rs, 15.000
respectively, It is agreed that partners' capitals should be according to the new
profit sharing ratio. Determine the new profit sharing ratio
1. 6:3:2
2. 2:1:1
3. 2:1:2
4. 1:2:1

wer: 1. 6 : 3 : 2
Old profit-sharing ratio (A : B) = 2 : 1
C is admitted for 1/4 share, so remaining share for A and B = 1 − 1/4 = 3/4.
A and B will share this 3/4 in their old ratio of 2 : 1.
→ A’s new share = (2/3) × (3/4) = 6/12
→ B’s new share = (1/3) × (3/4) = 3/12
→ C’s share = 1/4 = 3/12
Now the new ratio (A: B: C) = 6: 3: 3 → simplify by dividing by 1.5 gives 6: 3: 2
New Profit-Sharing Ratio = 6: 3: 2

20Q.20. According to which section of the partnership Act 1932, the dissolution of
a partnership between all the partners of a firm is called the dissolution of the
firm?

1. Section 32
2. Section 35
3. Section 37
4. Section 39

wer: 4. Section 39
According to Section 39 of the Indian Partnership Act, 1932,
“The dissolution of partnership between all the partners of a firm is called the
dissolution of the firm.”

Hence, the correct answer is Section 39.

21Q.21. Which of the following is correct? The important provision affecting
partnership accounting, in the absence of a partnership deed is:
1. Profit Sharing Ratio: If the partnership deed is silent about the profit
sharing ratio, the profits and losses of the firm are to be shared by partners in
their capital ratio.
2. Interest on Capital: Partner is entitled to claim higher interest on the
amount of capital contributed by him in the firm as a matter of riigh.
3. Interest on Drawings: No interest is to be charged on the drawings made by
the partners, if there is no mention in the Deed.
4. Interest on Loan: If any partner has advanced loan to the firm for the
purpose of business, he/she shall be entitled to get ap interest on the loan
amount at the rate of 16 per cept per annum

wer: 3. No interest is to be charged on the drawings made by the partners,
if there is no mention in the Deed.
According to the Indian Partnership Act, 1932, in the absence of a partnership
deed:
• Profit sharing ratio: Equal among partners, not in capital ratio.
• Interest on capital: Not allowed unless agreed upon.
• Interest on drawings: Not charged unless agreed upon.
• Interest on loan by a partner: Allowed at 6% per annum, not 16%.

22Q.22. If a company issue Rs. 1,00,000, 9% debentures of Rs. 100 each at
discount of 5% but redeemable at premium of 5% then what amount will be
debited to Loss on Issue of Debentures Account?
1. Rs.5,000
2. Rs.10,000
3. Rs.15,000
4. Rs.20,000

wer: 2. ₹10,000
Face Value of Debentures = ₹1,00,000
Discount on Issue (5%) = ₹5,000
Premium on Redemption (5%) = ₹5,000
Total Loss on Issue of Debentures
= Discount on Issue + Premium on Redemption
= ₹5,000 + ₹5,000 = ₹10,000

23Q.23. Debenture Application & Allotment A/c Dr. 95,000
Loss on Issue of Debentures A/c Dr. 10,000
To 9% Debenture A/c 1,00,000
To Premium on Redemption of Debentures A/c 5,000

On the basis of the above entry, determine the rate of discount at which Rs.
1,00,000, 9% debentures of Rs. 100 each were issued if they were to be
redeemed at a premium of 5%.
1. 5%
2. 10%
3. 15%
4. 20%

wer: 1 — 5%
From the entry, Loss on Issue of Debentures = ₹10,000 includes Discount on
Issue + Premium on Redemption.
Given Premium on Redemption = ₹5,000, so Discount on Issue = ₹10,000 −
₹5,000 = ₹5,000.
On face value ₹1,00,000, discount ₹5,000 ⇒ 5%.

24Q.24. Which of the following is not the main factors affecting the value of
Goodwill?
1. Nature of Business
2. Location
3. Market situation
4. Efficiency of Management of non-competitive firms

wer: 4. Efficiency of Management of non-competitive firms

The main factors affecting the value of goodwill include —
• Nature of business (stable demand, high profit = higher goodwill)
• Location (better location = more customers = higher goodwill)
• Market situation (favourable market conditions increase goodwill)
But efficiency of management of non-competitive firms is not a factor that
affects a company’s goodwill directly.

25Q.25. Dividend paid by a company to its shareholder is classified as which type
of activity under cash flow statment?
1. Cash flow from operating activities
2. Casn flow from investing activities
3. Cash flow from financing activities
4. Cash flow from extraordinary activities

wer: 3. Cash flow from financing activities
Dividend paid represents a return to shareholders for the capital they have
invested in the company.
According to AS-3 (Revised) — Cash Flow Statement, such payments are
treated as cash outflows from financing activities, since they relate to the
company’s capital structure.

26Q.26. The sum due to the retiring partner includes:
(A) His share of profits up to the date of retirement.
(B) His share of goodwill;
(C) His share of accumulated profits;
(D) His share in the gain of revaluation of assets and liabilities;
Choose the correct answer from the options given below:

1. (A), (B) and (D) only
2. (A), (B) and (C) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

wer: 3. (A), (B), (C) and (D)
The amount due to a retiring partner includes all sums that represent his
rights and interests in the firm up to the date of retirement, such as:
• (A) His share of profits till the retirement date,
• (B) His share of goodwill,
• (C) His share of accumulated profits/reserves,
• (D) His share in revaluation gains or losses on assets and liabilities.

27Q.27. Various accounting aspects involved on death of a partner are as follows:
(A) Adjustment in respect of unrecorded assets and liabilities
(B) Treatment of goodwill
(C) Preparation of Realization A/C
(D) Preparation of Executor's loan A/c
Choose the correct answer from the options given below:
1. (A), (B) and (C) only
2. (A), (B) and (D) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

wer: 2. (A), (B) and (D) only
On the death of a partner, the firm continues (it is not dissolved), so
a Realisation Account is not prepared.
The important accounting aspects include:

• (A) Adjustment of unrecorded assets and liabilities
• (B) Treatment of goodwill
• (D) Preparation of the Executor’s Loan Account to settle the amount due
to the deceased partner’s estate

28Q.28. Minimum subscription is the minimum amount that, in the opinion of
directors, must be raised to meet the needs of business operations of the
company relating to:
(A) The price of any property purchased, or to be purchased, which has to be
met wholly or partly out of the proceeds of issue;
(B) Preliminary expenses payable by the company and any commission
payable in connection with the issue of shares;
(C) Working capital;
(D) Any other expenditure required for the usual conduct of business
operations
Choose the correct answer from the options given below:

1. (A), (B) and (D) only
2. (A), (B) and (C) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

wer: 3. (A), (B), (C) and (D)
Minimum Subscription is the minimum amount that must be raised from the
issue of shares to meet the essential financial requirements of a company
before it can commence business.
It includes funds required for:
• (A) Purchase of property or assets,
• (B) Payment of preliminary expenses and commission,
• (C) Working capital needs, and
• (D) Other necessary business expenditures.

29Q.29. While issuing the share capital for public subscription where there is no
articles of association of its own, the following provisions of Table A will apply:
(A) A period of one month must elapse between two calls.
(B) The amount of call should not exceed 25% of the face value of the share.
(C) A minimum of 7 days' notice is qiven to the shareholders to pay the
amount.
(D) Calls must be made on a uniform basis on all shares within the same class.
Choose the correct answer from the options given below:
1. (A), (B) and (C) only
2. (A), (B) and (D) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

wer: 3. (A), (B), (C) and (D)
According to the provisions of Table A of the Companies Act, when a
company does not have its own Articles of Association, the following rules
apply regarding calls on shares:
• (A) At least one month must elapse between two calls.
• (B) Each call must not exceed 25% of the nominal (face) value of the
share.
• (C) A minimum of 7 days’ notice must be given to shareholders to pay
the call amount.
• (D) Calls must be made on a uniform basis for all shares of the same
class.

30Q.30. Securities Premium Account can be used only for the following purposes:
(A) To issue partly paid bonus shares to the extent not exceeding unissued
share capital of the company;
(B). Buy back of own shares.
(C). To write-off the expenses of, or commission paid, or discount allowed on
any securities of the company;
(D). To pay premium on the redemption of preference shares or debentures of
the company.
Choose the correct answer from the options given below:

1. (A), (B) and (D) only
2. (A), (B) and (C) only
3. (A), (B), (C) and (D)
4. (B), (C) and (D) only

wer: 3. (A), (B), (C) and (D)
As per Section 52(2) of the Companies Act, 2013, the Securities Premium
Account can be utilized only for the following purposes:
(A) Issuing fully paid bonus shares to shareholders.
(B) Buy-back of own shares as per Section 68.
(C) Writing off expenses or commission or discount on issue of shares or
debentures.
(D) Paying premium on redemption of preference shares or debentures.

31Q.31. Match List-I with List-II

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

wer: 1. (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
Correct Matching:
• (A) Current Ratio → (I) Liquidity Ratio
• (B) Stock Turnover Ratio → (II) Activity Ratio
• (C) Debt-Equity Ratio → (III) Solvency Ratio
• (D) Operating Ratio → (IV) Profitability Ratio

32Q.32. Match List-I with List-II

Choose the correct answer from the options given below:

1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
3. (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

wer: 1. — (A)-(I), (B)-(II), (C)-(III), (D)-(IV)
Correct Matching:
• (A) Reserves and Surplus → (I) Share Options Outstanding Account
• (B) Non-current Liabilities → (II) Long-term Provisions
• (C) Current Liabilities → (III) Short-term Borrowing
• (D) Shareholder’s Fund → (IV) Calls in Arrear

33Q.33. Match List-I with List-II

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

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

• (A) Cash outflows from financing → Redemption of debentures (I)
• (B) Cash inflows from operating → Royalties/fees/commissions (III)
• (C) Cash & cash equivalents → Current investments (II) (short-term,
highly liquid)
• (D) Cash inflows from investing → Sale of fixed/intangible assets (IV)

34Q.34. Match List-I with List-II

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

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

wer: 4. (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
• (A) Compulsory Dissolution → (III) Business becomes illegal
• (B) Dissolution by Notice → (IV) Partnership at will
• (C) Dissolution by Court → (I) Partner becomes insane
• (D) Dissolution on Certain Contingencies → (II) Death of a partner

35Q.35. Match List-I with List-II

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

wer: 1. (A)-(IV), (B)-(III), (C)-(II), (D)-(I)
• (A) Payment of loans due to partners → (IV) Partner’s Loan A/c Dr. To
Bank A/c
• (B) Settlement of partners’ accounts (debit balance) → (III) Bank A/c
Dr. To Partner’s Capital A/c
• (C) Settlement of loan by firm to a partner → (II) Bank A/c Dr. To Loan
to Partners A/c
• (D) Settlement of any unrecorded liability → (I) Realisation A/c Dr. To
Bank A/c

36Q.36. Arrange the following in the sequence in which they shall be applied in
payment at the time of dissolution of a firm:
(A) The debts of the firm to the third parties.
(B) Partner proportionately what is due to him/her from the firm for advances
as distinguished from capital (i.e. partner's loan).
(C) Each partner proportionately what is due to him on account of capital.
(D) Divided among the partners in their profit sharing ratio.
Choose the correct answer from the options given below:

1. (A), (B), (C), (D)
2. (B), (C), (D), (A)
3. (A), (D), (C), (B)
4. (D), (B), (C), (A)

wer: 1. (A), (B), (C), (D)
Correct Sequence (as per Section 48 of the Indian Partnership Act, 1932):
1. (A) Debts of the firm to third parties are paid first.

2. (B) Then pay partners’ loans or advances to the firm.
3. (C) Next, settle partners’ capital accounts.
4. (D) Finally, distribute any remaining surplus among partners in
their profit-sharing ratio.

37Q.37. Arrange the following regarding admission procedure in the correct
sequence.
(A) Giving share to the new partner.
(B) Treatment of Goodwill
(C) Calculating new profit sharing ratio & sacrificing ratio
(D) Preparation of Revaluation A/c
(E) Preparing Partner's Capital A/c and Balance Sheet
Choose the correct answer from the options given below:
1. (A), (B), (C), (D), (E)
2. (A), (C), (B), (D), (E)
3. (A), (D), (C), (B), (E)
4. (A), (B), (C), (E), (D)

wer: 2. (A), (C), (B), (D), (E)
Correct Sequence (Admission of a New Partner):
1. (A) Giving share to the new partner (deciding the share of profit to be
admitted).
2. (C) Calculating the new profit-sharing ratio and sacrificing ratio of old
partners.
3. (B) Treatment of goodwill (adjustment among old and new partners).
4. (D) Preparation of Revaluation Account (to adjust assets and liabilities).
5. (E) Preparing Partners’ Capital Accounts and the new Balance Sheet of
the reconstituted firm.

38Q.38. Arrange the following in a sequence, in which they will be utilize for the
payment of losses:
(A) Out of capital of partners.
(B) Out of profits.
(C) By the partners individually in their profit sharing ratio.
Choose the correct answer from the options given below:
1. (A), (B), (C)
2. (A), (C), (B)

3. (B), (A), (C)
4. (B), (C), (A)

wer: 3. (B), (A), (C)
As per Section 48 of the Indian Partnership Act, 1932, losses of the
firm (including deficiencies of capital) are to be paid in the following order:
1. (B) First, out of profits (if any).
2. (A) Then, out of the capital of partners.
3. (C) Lastly, if still unpaid, by the partners individually in their profit-
sharing ratio.

39Q.39. The important steps in the procedure of share issue are:
(A) The company issues the prospectus to the public.
(B) The company has to get minimum subscription within 120 days from the
date of the issue of the prospectus.
(C) The prospective investors intending to subscribe the share capital of the
company would make an application along with the application money
(D) Letters of allotment are sent to those whom the shares have been alloted,
and letters of regret to those to whom no allotment has been made.
Choose the correct sequence of steps from the options given below:
1. (A), (B), (C), (D)
2. (A), (C), (B), (D)
3. (B), (A), (D), (C)
4. (C), (B), (D), (A)

wer: 2. (A), (C), (B), (D)
Correct Sequence of Steps in Issue of Shares:

1. (A) The company first issues a prospectus to invite the public to
subscribe for shares.
2. (C) Interested investors apply for shares by submitting applications
with application money.
3. (B) The company must receive the minimum subscription within 120
days of issuing the prospectus.
4. (D) After receiving applications, letters of allotment are sent to
successful applicants and letters of regret to those not allotted shares.

40Q.40. The steps involved in calculation of Goodwill under Super Profit method
are:
(A) Calculate the super profits by deducting normal profit from the average
profits,
(B) Calculate the normal profit on the firm's capital on the basis of the normal
rate of return,
(C) Calculate the average profit,
(D) Calculate goodwill by multiplying the super profits by the given number of
years' purchase.
Choose the correct sequence of steps from the options given below:
1. (A), (B), (C), (D)

2. (A), (C), (B), (D)
3. (C), (B), (A), (D)
4. (C), (B), (D), (A)
Read the following passage and answer the questions
A Solid Partnership
A, V and T were partners of a law firm sharing profits in the ratio of 5:3:2.
Their partnership deed provided the following:
(i) Interest on partners' capital @ 5% p.a.
(ii) A guaranteed that he would earn a minimum annual fee of Rs. 6,00,000 for
the firm.
(iii) T was guaranteed a profit of Rs. 2,50,000 (excluding interest on capital)
and any deficiency on account of this was to be borne by A and V in the ratio of
2:3.
During the year ending March 31, 2019, A earned a fee of Rs. 3,20,000 and net
profits earned by the firm were Rs. 8,60,000. Partner's capital on April 01,
2018 were A - Rs. 3,00,000; V - Rs. 3,00,000 and T- Rs. 2,00,000.

wer: 3. (C), (B), (A), (D)
Correct Sequence (Super Profit Method):
1. (C) Calculate the average profit of the firm (based on past years).
2. (B) Calculate the normal profit using the firm’s capital × normal rate of
return.
3. (A) Find the super profit = Average Profit − Normal Profit.
4. (D) Calculate Goodwill = Super Profit × Number of Years’ Purchase.

41Q.41. What is the amount of A's deficiency of annual fee?
1. Rs. 2,80,000
2. Rs. 1,80,000
3. Rs. 3,80,000
4. Rs. 4,80,000

wer: 1: ₹2,80,000
A guaranteed fee ₹6,00,000; earned ₹3,20,000 → deficiency = 6,00,000 −
3,20,000 = ₹2,80,000.

42Q.42. What is the amount of T's deficiency in profits?
1. Rs. 20,000
2. Rs. 30,000
3. Rs. 40,000
4. Rs. 57,000

wer: 2: ₹30,000
Solution (concise): Adjusted firm profit = ₹8,60,000 + A’s deficiency
₹2,80,000 = ₹11,40,000.
Interest on capital (5%): A ₹15,000, V ₹15,000, T ₹10,000 → total ₹40,000.
Profit for distribution = 11,40,000 − 40,000 = ₹11,00,000.

Share in 5:3:2 → A ₹5,50,000; V ₹3,30,000; T ₹2,20,000.
T guaranteed ₹2,50,000 (excluding IOC) → deficiency = 30,000.

43Q.43. In which ratio the deficiency of T will be borne by A & V.
1. 5:3
2. 2:3
3. 2:4
4. 2:1

wer: (2) 2 : 3

44Q.44. What is the amount of profit to be credited to A's Capital account?
1. Rs.5,28,000
2. Rs.5,30,000
3. Rs.5,35,000
4. Rs.5,38,000

wer: 4: ₹5,38,000
A’s share before guarantee = ₹5,50,000.
A bears 2/5 of T’s deficiency (₹30,000) = ₹12,000.
Profit credited to A = 5,50,000 − 12,000 = ₹5,38,000.

45Q.45. What is the amount of profit to be credited to V's Capital account?
1. Rs.3,10,000
2. Rs.3,11,000
3. Rs.3,12,000
4. Rs.3,13,000
Read the following passage and answer the questions
On January 1, 2024, the Director of X Ltd. issued for public subscription
50,000 equity shares of Rs. 10 each at Rs. 12 per share payable, Rs. 5 on
application (including premium), Rs. 4 on allotment and the balance on call on
May 01, 2024. The issue was closed on February 10, 2024 by which date
applications for 70,000 shares were received. Of the cash received Rs. 40,000
was returned and Rs.60,000 was applied to the amount due on allotment, the
balance of which was paid on February 16, 2024. All the shareholders paid the
call due on May 01, 2024 with the exception of an allottee of 500 shares. These
shares were forfeited on September 29, 2024 and reissued as fully paid at Rs.
8 per share on November 01, 2024. The company, as a matter of policy, does
not maintain a calls-in-arrears account.

wer: 3: ₹3,12,000
V’s share before guarantee = ₹3,30,000.
V bears 3/5 of ₹30,000 = ₹18,000.
Profit credited to V = 3,30,000 − 18,000 = ₹3,12,000.

46Q.46. What amount will be credited to Equity Share Application Account on
February 10, 2024?
1. Rs. 2,50,000
2. Rs. 3,00,000
3. Rs. 3,50,000
4. Rs. 450000

wer: 3: ₹3,50,000
Applications received for 70,000 shares @ ₹5 each → 70,000 × 5 =
₹3,50,000 credited to Share Application A/c.

47Q.47. What is the amount of excess application money credited to share
allotment and money refunded on rejected
application in totality?
1. Rs. 40,000
2. Rs. 60,000
3. Rs. 1,00,000
4. Rs. 1,20,000

wer: 3: ₹1,00,000
Excess application money: ₹40,000 refunded + ₹60,000 adjusted to allotment
= ₹1,00,000.

48Q.48. On Forfieture of 500 shares for non-payment of call money, what amount
will be credited to Shares Forfeiture Account ?
1. Rs. 2500
2. Rs. 3500
3. Rs. 4500
4. Rs. 1500

wer: 2: ₹3,500
500 shares forfeited for non-payment of call (₹3); amounts received earlier
per share = ₹3 (application to capital) + ₹4 (allotment) = ₹7.
Share Forfeiture = ₹7 × 500 = ₹3,500.

49Q.49. On Forfieture of 500 shares for non-payment of call money, what amount
will be credited to Shares Forfeiture Account ?
1. Rs. 2500
2. Rs. 3500
3. Rs. 4500
4. Rs. 1500

wer: 2: ₹3,500

50Q.50. What is the amount of Profit on reissue of Forfeited Shares Accounts
transferred to capital reserve?
1. Rs. 500
2. Rs. 1000
3. Rs. 2000
4. Rs. 2500

wer: 4: ₹2,500
Reissued 500 shares @ ₹8 (face ₹10) → discount = ₹2 × 500 =
₹1,000 (debited from forfeiture).
Balance in forfeiture = ₹3,500 − ₹1,000 = ₹2,500 → transferred to Capital
Reserve.

FAQs

Publishing note: This page was generated from the uploaded CUET UG 2025 Accountancy paper. A few questions in some source PDFs may contain OCR or scan artefacts; in such cases the original source PDF should be treated as the final reference.