CUET Exam  >  CUET Tests  >  CUET Mock Test Series  >  Accountancy: CUET Mock Test - 8 - CUET MCQ

Accountancy: CUET Mock Test - 8 - CUET MCQ


Test Description

30 Questions MCQ Test CUET Mock Test Series - Accountancy: CUET Mock Test - 8

Accountancy: CUET Mock Test - 8 for CUET 2025 is part of CUET Mock Test Series preparation. The Accountancy: CUET Mock Test - 8 questions and answers have been prepared according to the CUET exam syllabus.The Accountancy: CUET Mock Test - 8 MCQs are made for CUET 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Accountancy: CUET Mock Test - 8 below.
Solutions of Accountancy: CUET Mock Test - 8 questions in English are available as part of our CUET Mock Test Series for CUET & Accountancy: CUET Mock Test - 8 solutions in Hindi for CUET Mock Test Series course. Download more important topics, notes, lectures and mock test series for CUET Exam by signing up for free. Attempt Accountancy: CUET Mock Test - 8 | 50 questions in 45 minutes | Mock test for CUET preparation | Free important questions MCQ to study CUET Mock Test Series for CUET Exam | Download free PDF with solutions
Accountancy: CUET Mock Test - 8 - Question 1

Following are the essential elements of a partnership firm except:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 1

The essential elements of partnership firm are at least two persons, there is an agreement between all partners and partnership agreement is for some business. But its not necessary to that the partners have equal share of profits. They may have any profit sharing ratio as agreed or in the deed. 

Accountancy: CUET Mock Test - 8 - Question 2

The data storage system that is hidden from the user and satisfies their requests to the extent that they are allowed access is referred to as .

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 2

The back-end database is the system for storing data that is concealed from users and answers to their requests to the extent that they are authorized to do so.

Key Points

  • The four basic prerequisites for computer use in database-oriented applications are as follows:
  • Front-end Interface: This is the means by which a user interacts with database-oriented software to communicate with the back-end database. For instance, a buy transaction involving the purchase of items might be handled with the accounting system using a purchase voucher, which shows up on the data entry operator's computer screen and is input into the system to be kept in the database.
  • The back-end database is the system for storing data that is concealed from users and answers to their requests to the extent that they are authorised to do so.
  • Data processing is a series of steps used to turn raw data into information that can be used to make decisions.
  • Reporting System: The reports are made up of an integrated group of objects.
Accountancy: CUET Mock Test - 8 - Question 3

The Computerized Accounting System should be

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 3

The correct answer is Simple and integrated, clear, precise, scalable, and reliable.

Key Points

Computerized Accounting System:

  • Accounting transactions are handled using a computer system in a computerized accounting system. CAS Transaction Processing that results in records and reports. Analysis of business transactions, recording of transactions, compilation of the trial balance, the balance sheet, and the profit and loss account.
  • Accounting software is used by CAS. Application software includes accounting software (like Tally).
  • Scalability, Reliability and Accuracy and Speed are these salient feature of Computerized Accounting System.

Important Points

  • Simple and integrated, clear, precise, scalable, and reliable: This Option is correct because Accounting transactions are handled using a computer system in a computerized accounting system. CAS Transaction Processing that results in records and reports. Analysis of business transactions, recording of transactions, compilation of the trial balance, the balance sheet, and the profit and loss account.
  • Complex, precise, transparent, and quicker to complete: This Option is incorrect because Accounting transactions are handled using a computer system in a computerized accounting system. CAS Transaction Processing that results in records and reports. Analysis of business transactions, recording of transactions, compilation of the trial balance, the balance sheet, and the profit and loss account.
  • Being able to go from a manual to a digital accounting system: This Option is incorrect because Accounting transactions are handled using a computer system in a computerized accounting system. CAS Transaction Processing that results in records and reports. Analysis of business transactions, recording of transactions, compilation of the trial balance, the balance sheet, and the profit and loss account.
  • None of the above: This option is incorrect because option ‘A’ is correct.
Accountancy: CUET Mock Test - 8 - Question 4
The Computerised Accounting System refers to :
Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 4

The correct answer is Processing of accounting transaction through computer and produce records and reports

Key Points

Computerised accounting System:

  • Computerised Accounting System refers to the processing of accounting transaction using a computer through the use of hardware and software in order to produce accounting records and reports.

Important Points Components of Computerised Accounting System:

  • Procedure: A logical sequence of actions to perform a task.
  • Data: The raw fact (as input) for any business application.
  • People: Users
  • Hardware: Computer, associated peripherals, and their network.
  • Software: System software and Application software.
Accountancy: CUET Mock Test - 8 - Question 5
What is the keyboard command to delete ledger created in tally?
Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 5

The correct answer is Alt + D.

Key Points

  • A ledger is the actual account head to identify your transactions and are used in all accounting vouchers.
  • Alt + D is the keyboard command used to delete the ledger created in tally.
    • Go to Gateway of Tally > Accounts Info. > Ledgers > Alter > Press Alt+D .
  • Users can delete any ledger in Tally if the balance does not exist in that particular ledger.

Additional Information

  • Alt+C is the short key to access Auto Value Calculator in the amount field during voucher entry.
  • Ctrl+C is the short key to create Cost Center from the Ledger creation screen.
  • Ctrl+B is the short key to create a Budget from the Ledger creation screen.
  • Ctrl+G is the short key to create an account Group from the Ledger creation screen.
Accountancy: CUET Mock Test - 8 - Question 6
Which of the following is NOT a software ?
Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 6

MotherBoard is NOT correct.

  • The motherBoard is a hardware part of computers.
    • The motherboard is also known as the Printed circuit board.
  • Hardware is the physical equipment and components of a computer that can be seen and touched.
    • Examples of hardware are Mouse, Printer, Scanner, Monitor, Keyboard, Motherboard, CPU.
  • Software is a set of instructions given to a computer to control and coordinate hardware.
    • The software can not be sensed by touch.
    • Examples of software are Linux, Firmware, Tally, Microsoft, Adobe, Media player.
  • Software that is available on hardware: Firmware.
  • Tally is financial accounting software.
  • Linux is free operating software.
Accountancy: CUET Mock Test - 8 - Question 7

Match List - I with List - II.

Choose the correct answer from the options given below :

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 7

The correct answer is A - II, B - IV, C - I, D - III.

Key Points

  • The Accounting basis for Cash Flow Statement is Cash Basis.
    • The cash flow statement is prepared based on cash basis accounting, not on accrual basis. This means it reflects cash inflows and outflows, rather than accounting for revenues and expenses when they are incurred.
  • Dividend paid on Equity and Preference capital comes under Cash outflow from Financing Activities.
    • Payments of dividends to shareholders are considered financing activities because they are related to the equity financing of the business. Thus, they are recorded as cash outflows in the financing section of the cash flow statement.
  • Investment in shares cannot be considered as cash and cash equivalents.
    • Investments in shares are considered as investing activities and not cash equivalents because they cannot be easily and immediately converted to cash without significant risk of changing in value.
  • Treasury bills can be classified as cash and cash equivalents.
    • Treasury bills are short-term government securities that are highly liquid and are considered cash equivalents because they have a maturity of less than three months and can be readily converted into a known amount of cash.

Therefore the correct pairing is:
A - II: The Accounting basis for Cash Flow Statement - Cash Basis
B - IV: Dividend paid on Equity and Preference capital - Cash outflow from Financing Activities
C - I: It can not be considered as cash and cash equivalents - Investment in shares
D - III: It can be classified as cash and cash equivalents - Treasury bills

Accountancy: CUET Mock Test - 8 - Question 8

According to Indian Partnership Act, 1932, when the firm is dissolved, cash received on sale of assets are applied in following order:

(A) Paying to each partner proportionately what is due to him/her on account of capital

(B) In paying the secured debts of the firm to the third parties

(C) In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital

(D) The residue, if any shall be divided among the partner's in their profit sharing ratio

(E) In paying unsecured debt of firm to third parties

Choose the correct answer from the options given below:

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

The correct answer is (B), (E), (C), (A), (D).

Key Points

  • In paying the secured debts of the firm to the third parties (B).
    • This is correct as per the Indian Partnership Act, 1932.
    • The first priority, upon dissolution, is to clear any secured debts to external parties to ensure that the firm's legal obligations are met.
  • In paying unsecured debt of the firm to third parties (E).
    • This is correct and follows the payment of secured debts.
    • Once secured debts are cleared, the next step involves settling any unsecured debts the firm owes to external entities.
  • In paying each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (C).
    • This is correct and is the next step after clearing all external debts.
    • Advances made by partners that are not part of the capital are reimbursed before distributing the remaining assets.
  • Paying to each partner proportionately what is due to him/her on account of capital (A).
    • This step comes after settling advances made by partners.
    • It ensures that partners receive back their contributions to the firm's capital before any profit distribution.
  • The residue, if any, shall be divided among the partners in their profit sharing ratio (D).
    • This is the final step of the dissolution process.
    • After all debts and advances are cleared, and capital amounts are returned, any remaining assets are divided among the partners according to their profit-sharing ratio.

Hence, the sequence (B), (E), (C), (A), (D) is correct according to the Indian Partnership Act, 1932.

Accountancy: CUET Mock Test - 8 - Question 9

Match List - I with List - II.

Choose the correct answer from the options given below :

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

The correct answer is (A) - (II), (B) - (I), (C) - (III), (D) - (IV).

Key Points

  • Authorised Capital (A) - (II) Maximum amount of share capital a company could raise during its life time.
    • This is the maximum limit of capital that a company can legally raise through the sale of its shares and is specified in the company's constitution.
    • It represents the potential for expansion and issuance of additional shares in the future.
  • Reserve Capital (B) - (I) A portion of uncalled share capital will be called at the time of winding up.
    • Reserve capital is not available for distribution as dividends but is held back to protect the company's creditors in the event of winding up.
    • It provides a financial cushion, ensuring that there are funds available to meet any remaining obligations.
  • Issued Capital (C) - (III) Capital issued to public for subscription.
    • This refers to the portion of the authorised capital which is offered to investors by way of public or private placement.
    • It represents the actual amount of capital that is being tapped into and utilized by the company from its authorized limit.
  • Subscribed but not fully paid capital (D) - (IV) Amount called up and received but not fully.
    • It indicates the portion of the issued capital that has been subscribed to by investors but has not yet been paid in full.
    • This scenario arises when shares are issued on a partly paid basis and further calls on the unpaid portion are pending.

Therefore, the correct pairing is:

A - II: Authorised Capital - Maximum amount of share capital a company could raise during its life time

B - I: Reserve Capital - A portion of uncalled share capital will be called at the time of winding up

C - III: Issued Capital - Capital issued to public for subscription

D - IV: Subscribed but not fully paid capital - Amount called up and received but not fully

Accountancy: CUET Mock Test - 8 - Question 10

On retirement, the retiring partner's capital account will be credited with :

(A) His/Her Capital Balance

(B) His/Her share of goodwill

(C) Share of goodwill of remaining partners

(D) his/her share of Reserve

(E) his/her drawings

Choose the correct answer from the options given below :

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 10

The correct answer is (A), (B) and (D) only .

Key Points

  • (A) His/Her Capital Balance
    • This is correct.
    • Upon retirement, the retiring partner's capital account is indeed credited with his/her capital balance.
    • This reflects the amount of capital the retiring partner initially invested in the partnership, adjusted for any subsequent capital transactions.
  • (B) His/Her share of goodwill
    • This is correct.
    • The retiring partner's capital account is also credited with his/her share of goodwill.
    • Goodwill is an intangible asset that represents the value of the name, reputation, or brand of the business. The retiring partner is entitled to a share of this value, recognizing his/her contribution to building this intangible asset.
  • (C) Share of goodwill of remaining partners
    • This is incorrect.
    • The retiring partner's capital account is not credited with the share of goodwill of the remaining partners.
    • Instead, it is the retiring partner's own share of goodwill that is credited to his/her account. The share of goodwill of the remaining partners remains in the partnership and is not directly relevant to the settling of accounts with the retiring partner.
  • (D) His/her share of Reserve
    • This is correct.
    • The retiring partner's capital account is credited with his/her share of any reserves.
    • Reserves are retained earnings that have been set aside to strengthen the partnership's financial position, for expansion, or to cover future liabilities. The retiring partner is entitled to a proportionate share of these reserves, recognizing his/her role in the partnership's operations and profitability up to the point of retirement.
  • (E) His/her drawings
    • This is incorrect.
    • Drawings refer to the amount of money or value of goods taken out of the business by the partner for personal use.
    • Upon retirement, a partner's capital account is not credited with his/her drawings; instead, drawings are deducted from the capital account throughout the partnership period.

Therefore, the statements (A) His/Her Capital Balance, (B) His/Her share of goodwill, and (D) His/her share of Reserve are correct, making Option 2 the correct answer. Hence, Statements A, B, and D are correct, while Statements C and E are incorrect.

Accountancy: CUET Mock Test - 8 - Question 11
Rohit a partner paid the realisation expenses of ₹10,000 and he was to get a remuneration of ₹12,000 for completing the dissolution process and realisation expenses were borne by Rohit. The amount transferred to his capital A/c will be:
Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 11

The correct answer is ₹12,000.

Key Points

  • Realisation Expenses borne and paid by Rohit ₹10,000, means this amount does not get accounted for as something that increases Rohit's Capital Account due to it being a non-reimbursable contribution or expense borne by him personally. In this case no journal entry is passed because this transaction is not related to firm.

  • Remuneration for Dissolution Process: ₹12,000 is the amount that Rohit is set to gain for his services during the dissolution process. Since this is the only amount that represents a gain or a benefit meant to be added to Rohit's Capital Account (as income/earnings from the dissolution process), this is the amount that is considered.

  • Therefore, the correct answer is ₹12,000 that is credited in the partner's capital account.

Accountancy: CUET Mock Test - 8 - Question 12

The relationship between persons who have agreed to share the profit of a business carried on by all or any of them acting for all is known as________.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 12

It is a definition given by Partnership act 1932 in sec 4
It contains 3 three parameters
1) Agreement
2) sharing of profit and losses
3) carried on by all any of them acting for all means mutual agency
above three things required to form a partnership.

Accountancy: CUET Mock Test - 8 - Question 13

Every partner is bound to attend diligently to his ______ in the conduct of the business.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 13

Every partner is bound to attend diligently to his duties in the conduct of the business. Every partner is an agent of the partnership firm. The business in the partnership firm can be carred on by all the partners or any one of them acting for all.

Accountancy: CUET Mock Test - 8 - Question 14

‘Salary Rs. 5,000 paid to partner’ The above item will appear in _________.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 14

Profit and loss appropriation account is an account where we record all transactions related to the partners like for example their salary, interest on capital, intrest on darawing etc so salary to partner will also appear on debit side of p & l appropriation account.

Accountancy: CUET Mock Test - 8 - Question 15

nterest on drawings is treated as:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 15

Interest on drawing is treated as revenue for the firm because interest is paid by the proprietor for withdrawal from the business and it will became revenue for the firm.

Accountancy: CUET Mock Test - 8 - Question 16

Three partners A , B , C start a business . B's Capital is four times C's capital and twice A's capital is equal to thrice B's capital . If the total profit is Rs 16500 at the end of a year ,Find out B's share in it.

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 16

Suppose C's capital = x then

B's capital = 4x (Since B's Capital is four times C's capital)

A's capital = 6x ( Since twice A's capital is equal to thrice B's capital)

A:B:C =6 x : 4x : x

= 6 : 4 : 1

B's share = 16500 * (4/11) = 1500*4 = 6000

Accountancy: CUET Mock Test - 8 - Question 17

What would be the profit sharing ratio if the partnership act is complied with?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 17

According to the partnership act the partners are to share profits equally unless anything else is agreed by the partners or is in the agreement.

Accountancy: CUET Mock Test - 8 - Question 18

 Is rent paid to a partner is appropriation of profits?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 18

The amount of rent would be seen as this partner's capital contribution instead of needing it paid from the venture.

Accountancy: CUET Mock Test - 8 - Question 19

Insurance Premium paid by the firm on the life Insurance policy of a partner is

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 19

When the partners decide to treat the premium on Joint Life Policy as an expense, then they debit the Premium A/c to the Profit and Loss A/c every year to close it. In this situation, the full amount of policy received from the Insurance Company becomes a gain.

Accountancy: CUET Mock Test - 8 - Question 20

 Following are the differences between Capital Account and Current Account except:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 20

The correct option is Option A.

Fixed capital system of accounting states that the capital of partners will remain the same as in the beginning.

To record any entry related to capital introduction or withdrawal, partners' capital account is prepared and to record any appropriation in the profit like interest on drawing, capital and salaries of partners, partners' current account is prepared so that there is no change in capitals of partners.

The account is debited with capital withdrawn, drawings, interest on drawings and share of loss of the partner. As a result, the balance in this account goes on fluctuating periodically. Under this method, the partner's capital account may show either credit balance or debit balance.

Accountancy: CUET Mock Test - 8 - Question 21

Which Section of the Partnership Act defines partnership as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 21

Section 4 of the Indian Partnership Act, 1932 defines partnership as the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

Accountancy: CUET Mock Test - 8 - Question 22

In the absence of partnership deed profit sharing ratio will be:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 22

When there is no partnership deed or partnership deed is prepared but it is silent on profit sharing ratio, in such a case rules of Partnership Act, 1932 will be applicable. According to which, profits or losses will be shared by the partners equally irrespective of their capitals.

Accountancy: CUET Mock Test - 8 - Question 23

It is better to have the agreement in writing to avoid any ___

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 23

Partnership deed plays important role in regulating the duties and responsibilities of each partner. A written partnership deed is useful to resolve disputes and misunderstanding among partners because every thing is in written form.

Accountancy: CUET Mock Test - 8 - Question 24

Partnership is established by ___________

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 24

The beginning of partnership is always because of an agreement. There should be an agreement among the partners to start a partnership business. Agreement can be written or oral that does not matter.

Accountancy: CUET Mock Test - 8 - Question 25

The persons who have entered into a partnership business with one another are individually called

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 25

A person who joins a partnership business, individually called a partner. The group of partners is called Firm and the name under which all business activities going on is known as firm’s name

Accountancy: CUET Mock Test - 8 - Question 26

Indian Partnership Act year is

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 26

In India, Partnership Act, 1932 is followed by all the partnership firms. Specially in the absence of partnership deed, all provisions of Partnership Act, 1932 will be applicable.

Accountancy: CUET Mock Test - 8 - Question 27

If partners are running a business without a partnership deed how much interest on their capitals will be given?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 27

Partners are entitled to interest on capital only if rate of interest is mentioned in the partnership deed. But in this case business is continued without partnership deed. As per the Partnership Act, 1932, partners are enttiled to interest on capital only when there is partnership deed and rate of interest is mentioned in it.

Accountancy: CUET Mock Test - 8 - Question 28

Partners collectively are called:

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 28

A person who joins a partnership business, individually called a partner. The group of partners is called Firm and the name under which all business activities going on is known as firm’s name.

Accountancy: CUET Mock Test - 8 - Question 29

Which of the following is not a content of partnership deed?

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 29

Interest on bank loan will be fixed by the bank and not by the partners or partnership deed. A partnership deed can show only those contents which are concerned with partners or firm. Interest on bank loan is a charge against the profit. It means it will be paid in all conditions whether there is profit or loss in the business.

Accountancy: CUET Mock Test - 8 - Question 30

Registration of partnership firm is _________

Detailed Solution for Accountancy: CUET Mock Test - 8 - Question 30

Registration of a partnership firm is optional. It means there is no need for the registration of a partnership firm. As per the Partnership Act, 1932, it is an option for a partnership firm to get registered or not. But it is always advisable to get registered.

View more questions
39 docs|148 tests
Information about Accountancy: CUET Mock Test - 8 Page
In this test you can find the Exam questions for Accountancy: CUET Mock Test - 8 solved & explained in the simplest way possible. Besides giving Questions and answers for Accountancy: CUET Mock Test - 8, EduRev gives you an ample number of Online tests for practice
Download as PDF