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Accountancy: CUET Mock Test - 9 - CUET MCQ


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30 Questions MCQ Test CUET Mock Test Series - Accountancy: CUET Mock Test - 9

Accountancy: CUET Mock Test - 9 for CUET 2025 is part of CUET Mock Test Series preparation. The Accountancy: CUET Mock Test - 9 questions and answers have been prepared according to the CUET exam syllabus.The Accountancy: CUET Mock Test - 9 MCQs are made for CUET 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Accountancy: CUET Mock Test - 9 below.
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Accountancy: CUET Mock Test - 9 - Question 1

Premium brought by the new partner will be shared by the existing partners in:

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 1

When a new partner is admitted into the partnership firm, he brings some amount of premium for goodwill which will be shared/distributed by the sacrificing partners in their sacrificing ratio

Accountancy: CUET Mock Test - 9 - Question 2

Smart Art is the feature of:

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 2

The correct answer is MS Word 2007.

Key Points

  • Smart Art is the feature of MS Word 2007.
  • To quickly and easily create a visual representation of your data, create a SmartArt graphic.
  • To successfully communicate your message or thoughts, you can choose from a variety of layouts. SmartArt visuals can be made and utilized in Excel, Outlook, PowerPoint, and Word.
  • A SmartArt Style is a collection of effects, such as line style, bevel, and 3-D, that you may apply to your SmartArt image's forms to give it a unique and professional appearance.
  • Colour variants created from the theme colors can be applied to the shapes in your SmartArt graphic.

Important Points

  • Adobe Photoshop is a raster graphics editor developed and marketed by Adobe Inc. for Windows and macOS.
  • Tally Solutions Pvt. Ltd. is a multinational firm based in India that specializes in enterprise resource planning software.
  • CorelDRAW is a vector graphics editor developed by Corel Corporation and distributed under the Corel brand.
Accountancy: CUET Mock Test - 9 - Question 3

Which of the following is utility software?

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 3

The Utility Software is system software that helps to maintain the proper and smooth functioning of a Computer System. It assists the Operating System to manage, organizing, maintaining, and optimizing the functioning of the computer system.

Utility Software performs certain tasks like virus detection, installation, and uninstallation, data backup, deletion of unwanted files, etc. Some examples are antivirus software, file management tools, compression tools, disk management tools, etc.

WinRAR: WinRAR is a proprietary file compression and archiving utility developed and distributed by RARLAB. It is not built on an open-source digital platform and is a commercial software product

Accountancy: CUET Mock Test - 9 - Question 4
Which one of the following is an impact printer and is commonly used for printing in applications like payroll and accounting?
Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 4

The correct answer is the "Dot-matrix printer".

Key Points

  • Plotter: The plotter is a kind of printer which is used for printing vector lines. It uses a simple pen and paper.
  • Laser printer: The laser printer is an example of a non-impact printer. It uses laser technology to print the content. This kind of printer is used mostly in large companies.
  • Inkjet printer: The inkjet printer is an example of a non-impact printer. This kind of printer is used mostly in homes, businesses and so on. It uses a different pattern of ink droplets to print the content.
  • Dot-matrix printer: The dot-matrix printer is an example of an impact printer. It has 9-24 pins which are situated at the printer head. It is commonly used for printing in applications like payroll and accounting.

The correct answer is the Dot-matrix printer.

Additional Information

  • Printer is referred to as an output device. The printer is divided into two parts. These are impact printers and non-impact printers.
  • Impact printers use a kind of pin and hammer system to print a document. It is less costly than the non-impact printer.
  • Non-impact printers use ink in any form to print a document. It is the best for printing photographs.
Accountancy: CUET Mock Test - 9 - Question 5

Consider the following statement regarding MS Excel:

  1. It is used for analyzing, sharing, and managing information for accounting purposes performing mathematical calculations, budgeting, billing, etc.
  2. it is a matrix of rows and columns similar to an accounting ledger.
  3. It is a Relational Database Management System (RDBMS).

Which of the above statements is/are incorrect?

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 5

The correct answer is 3 Only.

Key Points

  • An electronic spreadsheet is used for analyzing, sharing, and managing information for accounting purposes performing mathematical calculations, budgeting, billing, etc.
  • A spreadsheet is a matrix of rows and columns similar to an accounting ledger.
  • The spreadsheet program also provides tools for reading graphs, inserting pictures and charts, analyzing the data, etc.
  • Microsoft Access is based on Relational Database Management System (RDBMS), not on MS Excel. Hence, Statement 3 is incorrect.

Additional Information

  • Relational Database Management System:
    • The software used to store, manage, query, and retrieve data stored in a relational database is called Relational Database Management System.
    • It provides an interface between users and applications and the database, as well as administrative functions for managing data storage, access, and performance.
Accountancy: CUET Mock Test - 9 - Question 6
What is AAA in networking?
Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 6

The correct option is 1 i.e., Authentication, Authorization, and Accounting.

Additional Information

  • AAA in networking is Authentication, Authorization, and Accounting.
  • AAA is a system for tracking user activities on an IP-based network.
  • It also controls their access to network resources.
  • AAA is implemented as a dedicated server.
  • AAA is also referred to as the AAA Protocol.
Accountancy: CUET Mock Test - 9 - Question 7

Goodwill brought by Suraj will be distributed as :

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 7

The correct answer is ₹18,000; ₹72,000.

Key Points

  • Given that Suraj compensates Amrita and Kalyani in the ratio of 1:4 for his share of goodwill:
  • Total ratio parts = 1 + 4 = 5 parts
  • Amount compensated to Amrita = (1/5) * ₹90,000 = ₹18,000 Amount compensated to Kalyani = (4/5) * ₹90,000 = ₹72,000

So, the correct answer is: 3) ₹18,000; ₹72,000

Accountancy: CUET Mock Test - 9 - Question 8

Share of revaluation profit of Amrita and Kalyani is :

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 8

The correct answer is 24,00,000 and 16,00,000.

Key Points

First, calculate the total revaluation profit:

  • Machinery: ₹27,00,000 - ₹25,00,000 = ₹2,00,000 increase
  • Land: ₹50,00,000 - ₹10,00,000 = ₹40,00,000 increase
  • Computers: ₹50,000 - ₹2,50,000 = -₹2,00,000 decrease
  • Net revaluation profit = ₹2,00,000 + ₹40,00,000 - ₹2,00,000 = ₹40,00,000
  • Amrita and Kalyani share the revaluation profit in their original profit-sharing ratio, which is 3:2.

So, the total profit of ₹40,00,000 shared will be:

  • Amrita's share = (3/5) * ₹40,00,000 = ₹24,00,000
  • Kalyani's share = (2/5) * ₹40,00,000 = ₹16,00,000

So, the correct answer is: ₹24,00,000 and ₹16,00,000

Accountancy: CUET Mock Test - 9 - Question 9

What is Amrita's share in workmen compensation fund?

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 9

The correct answer is 1,80,000.

Key Points

Adjust the Workmen Compensation Fund first for the claim:

  • Remaining fund = ₹5,00,000 - ₹2,00,000 = ₹3,00,000
  • This fund is distributed in the old profit-sharing ratio, which is 3:2 between Amrita and Kalyani. Amrita’s share:
  • = (3/5) * ₹3,00,000 = ₹1,80,000

So, the correct answer is: 2) ₹1,80,000

Accountancy: CUET Mock Test - 9 - Question 10

What journal entry will be passed for goodwill appearing in the books?

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 10

The correct answer is

Key Points

Writing Off Existing Goodwill

  • If there is already goodwill recorded in the books, it may be written off against the existing partners' capital accounts in their old profit-sharing ratio.
  • This is because the value of goodwill is assumed to be realized by the new partner's entrance, meaning the 'purchased' goodwill no longer exists as an identifiable asset.
  • The accounting entries would decrease the goodwill account and decrease the existing partners' capital accounts proportionately.
  • Journal entry will be:

Accountancy: CUET Mock Test - 9 - Question 11

A new partner can be admitted:

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 11

The correct answer is If all the existing partners agree.

Key Points

When a new partner is admitted, it results in the reconstitution of the partnership. Here’s a general overview of conditions and considerations involved in this process:

  • Consent of Existing Partners: Typically, the admission of a new partner requires the unanimous consent of all existing partners unless the partnership agreement specifies otherwise. This is crucial because the addition of a new partner changes the dynamics, responsibilities, and profit-sharing ratios within the partnership.

  • Valuation of the Partnership: Before a new partner is admitted, there often is a need to accurately value the partnership's assets and liabilities. This helps in determining the amount the incoming partner should contribute as capital to the partnership for acquiring a certain ownership interest or stake in the partnership.

  • Capital Contribution: The new partner usually needs to bring in capital or assets as part of their admission into the partnership. This contribution could be in the form of cash, property, or other valuable assets. The amount or value of the contribution often corresponds to the share of the profits and losses the new partner will be entitled to.

  • Amending the Partnership Agreement: The admission of a new partner requires the existing partnership agreement to be amended or a new agreement to be drafted to include terms that cater for the new partner. This revised agreement should outline the new profit-sharing ratios, responsibilities, capital contributions, and any other rights and obligations specific to the new partner.

  • Revaluation of Assets: In many cases, the admission of a new partner triggers a revaluation of the partnership's assets and liabilities to their current market values. This ensures that the existing partners are not unfairly advantaged or disadvantaged by the entry of the new partner based on outdated valuations.

  • Goodwill: The issue of goodwill often arises when a new partner is admitted. If the partnership has goodwill, the new partner might be required to pay for their share of it. Goodwill represents the value of the partnership's reputation, location, client base, and other intangible assets. The treatment of goodwill varies and needs to be agreed upon by all partners.

  • Adjustments to Existing Capital Accounts: The admission of a new partner usually leads to adjustments in the capital accounts of the existing partners, either because of the revaluation of assets or because of the specifics of how the new partner's investment is structured.

  • Legal Requirements and Documentation: Depending on the jurisdiction, there may be legal requirements to fulfill, such as registering the change in partnership composition with relevant authorities or publishing a notice of the partnership's reconstitution. All necessary legal documents must be prepared, signed, and, where necessary, registered.

Accountancy: CUET Mock Test - 9 - Question 12

According to section 31(1) of _____ new partner can be admitted only with consent of all existing partners

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 12

When there is no proper guidelines or when there is no partnership deed or when partnership deed is silent on the issue of admission of a new partner. In such a case all provisions of the Partnership Act, 1932 will be applicable according to which a new partner can be admitted into the partnership only with the consent of all existing partners.

Accountancy: CUET Mock Test - 9 - Question 13

Ways in which incoming partner may acquire his share except:

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 13

A new partner can acquired his share from one partner or two partners or from all partners in an agreed ratio. He may acquire his share in old ratio of the partners or in an agreed ratio for sacrifice but not in the new ratio of all the partners because new ratio will be fixed after adjusting his share.

Accountancy: CUET Mock Test - 9 - Question 14

How will you calculate sacrificing ratio

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 14

Sacrificing ratio refers to that ratio in which old partners will sacrifice their share in the favour of a new partner. To calculate the sacrificing ratio new share should be deducted from the old share of the existing partners’ i.e. old ratio – new ratio.

Accountancy: CUET Mock Test - 9 - Question 15

Sacrifice ratio is used only for

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 15

At the time of admission of a new partner, the main use of sacrificing ratio is to adjust the premium for goodwill brought by a new partner.

Accountancy: CUET Mock Test - 9 - Question 16

Incoming partner may acquire his share from the old partners 
(i) In their old profit sharing ratio
(ii) In a particular ratio
(iii) In particular fraction from some of the partners
In which of the above mentioned alternatives

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 16

A newly admitted partner may acquire his share of profit from one partner or two partners or from all partners in an agreed ratio. He may acquire his share in old ratio of the partners or in an agreed ratio for sacrifice but not in the new ratio of all the partners because new ratio will be fixed after adjusting his share.

Accountancy: CUET Mock Test - 9 - Question 17

X and Y are partners sharing profits in the ratio of 3:2. Z is admitted for 1/5 share. All partners have decided to share future profits equally. The profit of new partnership firm was Rs.30,000. This profit will be shared by all the partners in _______

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 17

Distribution of profit is to be done in new profit sharing ratio:
X = 30,000 × 1/3 = 10,000
Y = 30,000 × 1/3 = 10,000
Z = 30,000 × 1/3 = 10,000

Accountancy: CUET Mock Test - 9 - Question 18

Why new profit ratio is determine even for old partners?

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 18

New profit sharing ratio will be calculated for all the partners because of change in profit sharing ratio agreement among the partners.

Accountancy: CUET Mock Test - 9 - Question 19

When a new partner is admitted he acquires his share of profits , this will ____ the old partner’s shares in profits:

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 19

Old partners will sacrifice some share in favor of a new partner. In simple words, when a new partner is admitted he acquires his share of profits , this will reduce the old partner’s shares in profits

Accountancy: CUET Mock Test - 9 - Question 20

__________ means good name, good product or reputation earned by a firm through the hard work and honesty of its owners

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 20

Goodwill means good name, good product or reputation earned by a firm through the hard work and honesty of its owners.

Accountancy: CUET Mock Test - 9 - Question 21

Sometimes the value of goodwill is not given at the time of admission of a new partner. In such a situation it has to be inferred from the arrangement of the capital and profit sharing ratio. This concept is called

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 21

It is known as hidden goodwill. Following formula should be used to calculate the value of hidden goodwill: Total Capital of the firm – Combined capital of partners = Hidden Goodwill

Accountancy: CUET Mock Test - 9 - Question 22

 Which of the following is not an example of Reconstitution of partnership firm?

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 22

Reconstitution on a partnership means change in the number of partners through Admission, Retirement or Death of the partners or change in the ratio of partners. Puchase of Assets will not change the constitution of the partnership.

Accountancy: CUET Mock Test - 9 - Question 23

Amount brought by a new partner for his share in goodwill is known as _____

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 23

When a new partners is admitted into the partnership he brings some amount in cash as his capital and some amount for his share in goodwill. The amount he brings for the share of goodwill is known as premium for goodwill.

Accountancy: CUET Mock Test - 9 - Question 24

New profit sharing ratio means

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 24

New profit sharing ratio refers to that ratio in which all the partners (old partners + new partner) will share future profits. It is not compulsory to share future profits equally. If there is no partnership deed or partnership deed is silent on the distribution of future profits, only in that case they will share future profits equally.

Accountancy: CUET Mock Test - 9 - Question 25

At the time of admission of a new partner, new profit sharing ratio is calculated. The new partner acquires his share from the old partners and as a result profit shares of old partners is reduced. What is it known

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 25

When a new partner is admitted, old partners will sacrifice some share in favor of new partner, the share they sacrifice in favor of new partner is known as sacrifice share or sacrificing ratio of the old partners.

Accountancy: CUET Mock Test - 9 - Question 26

Section ____ of the Indian Partnership Act provides that a new partner shall not be inducted into a firm without the consent of all existing partners

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 26

Section 31of the Indian Partnership Act provides that a new partner shall not be inducted into a firm without the consent of all existing partners.

Accountancy: CUET Mock Test - 9 - Question 27

The amount of goodwill brought in by the new partner is shared by the ____ partners in their ____ ratio

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 27

The amount of premium for goodwill brought in by the new partner will be shared by the only sacrificing partners in their sacrificing ratio.

Accountancy: CUET Mock Test - 9 - Question 28

What adjustments are mainly done at the time of admission of a new partner?
(i) Adjustment in Profit sharing ratio
(ii) Goodwill 
(iii) Accumulated profits, Reserves and losses

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 28

Adjustments to be done at the time of admission of a partner are:
1.Change in profit sharing ratio
2.Adjustment for premium for goodwill
3.Adjustment of old goodwill (given in balance sheet)
4.Revaluation account (revaluation of assets and re-assessment of liabilities)
5.Accumulated profits and reserves
6.Adjustment of capital

Accountancy: CUET Mock Test - 9 - Question 29

Is admission of a new partner is a reconstitution of partnership firm:

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 29

Admission of a new partner will reconstitute the partnership firm. It means it is the end of old partnership and beginning of a new partnership among the partners. It does not mean the end of the firm.

Accountancy: CUET Mock Test - 9 - Question 30

Sacrificing ratio is differ from new profit sharing ratio

Detailed Solution for Accountancy: CUET Mock Test - 9 - Question 30

Sacrificing ratio is concerned with the old partners who are sacrificing their share in favor of a new partner. New ratio means, new ratio of all the partners (including new and old partners).

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