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Accountancy: CUET Mock Test - 1


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40 Questions MCQ Test CUET Mock Test Series | Accountancy: CUET Mock Test - 1

Accountancy: CUET Mock Test - 1 for Class 12 2023 is part of CUET Mock Test Series preparation. The Accountancy: CUET Mock Test - 1 questions and answers have been prepared according to the Class 12 exam syllabus.The Accountancy: CUET Mock Test - 1 MCQs are made for Class 12 2023 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Accountancy: CUET Mock Test - 1 below.
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Accountancy: CUET Mock Test - 1 - Question 1

In the absence of partnership deed or the partnership being silent, the Partnership Act, 1932 provides for no interest on

Accountancy: CUET Mock Test - 1 - Question 2

In absence of partnership deed, ______ partner gets more share of profit.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 2

Profits are shared equally.

Accountancy: CUET Mock Test - 1 - Question 3

Salary to a partner is _____ with respect to profit.

Accountancy: CUET Mock Test - 1 - Question 4

A partnership deed should provide ____.

Accountancy: CUET Mock Test - 1 - Question 5

Which of these is not a feature of partnership?

Accountancy: CUET Mock Test - 1 - Question 6

What is the average period in case the partner withdraws consistently at the end of each quarter for a year?

Accountancy: CUET Mock Test - 1 - Question 7

A partner withdraws ₹ ______ on 30th September, 2021. Deed provides interest on drawings @ 10%. The total interest charged was ₹ 1,000.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 7

X x 10/100 x 6/12 = 1,000
⇒ X = ₹ 20,000

Accountancy: CUET Mock Test - 1 - Question 8

Interest on partner’s loan will be ______ to ______ account.

Accountancy: CUET Mock Test - 1 - Question 9

No interest is to be charged on drawings from the partners in case of ______.

Accountancy: CUET Mock Test - 1 - Question 10

Which of these is charge against profit?

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 10

Rent is provided even in case of loss or insufficient profits and is charged to profit and loss account.

Accountancy: CUET Mock Test - 1 - Question 11

Which of these is not a duty of partners?

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 11

Duty is to act within authority.

Accountancy: CUET Mock Test - 1 - Question 12

Current account of a partner has    

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 12

Current account can have credit balance in case of profits and other items of appropriation of profits. However, it can also have debit balance in case of over withdrawn amount or too many debit items being charged to it.

Accountancy: CUET Mock Test - 1 - Question 13

Ram, Raghav and Raghu are partners in a firm sharing profits in the ratio of 5 : 3 : 2. As per partnership deed, Raghu is to get a minimum amount of ₹ 10,000 as profit. Net profit for the year is ₹ 40,000. Calculate deficiency (if any) to Raghu.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 13

Guaranteed Share of Raghu is = ₹ 10,000
Share in given Profit  40,000 x 2/10 = ₹ 8,000
∴ Deficiency in Rasrhu’s Share of Profit = 10,000 - 8,000 = ₹ 2,000

Accountancy: CUET Mock Test - 1 - Question 14

I f a partner withdraws equal am ount at end of each quarter, then _____ are to be considered for interest on total drawings.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 14

Time Period = Time left after first drawings + Time left after last drawings / 2
= 9 + 0 / 2
= 4.5 months

Accountancy: CUET Mock Test - 1 - Question 15

Moin and Azam are partners in a firm with capital ₹ 20,000 and ₹ 40,000 respectively. Profit for FY 21 are ₹ 60,000 . Who will get how much share?

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 15

Profits will be divided equally i.e. ₹ 30,000 each.

Accountancy: CUET Mock Test - 1 - Question 16

Goodwill helps firms bring ______ profits.

Accountancy: CUET Mock Test - 1 - Question 17

What is the nature of goodwill?

Accountancy: CUET Mock Test - 1 - Question 18

Goodwill of Indian bears, a partnership firm, is ₹ 10,00,000 calculated on 2.5 years’ purchase of average profits of last 3 years.
What is value of X?

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 18

Goodwill = 25 x Average Profits
10,00,000 = 2.5 x Average Profits
Average Profits = ₹ 4,00,000
Also, Average Profits
= 7,00,000 + X + 3,00,000 / 3
Now, comparing (i) and (ii)
7,00,000 + X + 3,00,000 / 3 = 4,00,000
10,00,000 + X = 12,00,000
X = ₹ 2,00,000

Accountancy: CUET Mock Test - 1 - Question 19

Goodwill can be _______

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 19

Goodwill is purchased when it is acquired by business for consideration in cash or in kind. Goodwill is self-generated when it is emerged as a result of better quality of products and services of a firm over a continuous period of time.

Accountancy: CUET Mock Test - 1 - Question 20

Competency of management does not affect goodwill.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 20

If management is capable, firm will get higher profits and then higher goodwill.

Accountancy: CUET Mock Test - 1 - Question 21

For valuation of goodwill, normal profit is calculated by ______ abnormal gains and ______ abnormal losses.

Accountancy: CUET Mock Test - 1 - Question 22

When is there no need to value the goodwill?

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 22

There is a need to value goodwill in all the cases given is the options. Goodwill valuation determines the goodwill adjustment to be made with respect to incoming/ outgoing/deceased partner.

Accountancy: CUET Mock Test - 1 - Question 23

Goodwill calculated by one method is equal to goodwill calculated by any other method.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 23

Goodwill calculated by one method may differ from goodwill calculated by another method.

Accountancy: CUET Mock Test - 1 - Question 24

As per AS-26, self-generated goodwill is recorded in the books.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 24

Self-generated goodwill is not recorded in the books because no consideration in money or money’s worth is paid for it.

Accountancy: CUET Mock Test - 1 - Question 25

Non-business incomes are added while calculating average profits.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 25

Non-business incomes are deducted since average profits are calculated to determine the earning capacity of business in normal course of routine business operations.

Accountancy: CUET Mock Test - 1 - Question 26

Assertion(A): The factors which affect profits, also affect goodwill.
Reason(R): Profits are directly related to goodwill.

Accountancy: CUET Mock Test - 1 - Question 27

Read the following case study and answer question on the basis of the same.
Tony and Rony started a partnership firm, TR CDs to manufacture music CDs way back in 1990. Now since the music CDs are out of business, they plan to sell the business to one of the major content production houses in Mumbai. For the purpose of selling business, they reached to their accountant to calculate the goodwill and other financial advice. He suggested that since the CDs are very less in demand, their goodwill value will be hampered. Nonetheless, the framework for goodwill calculation was decided as follows
‘The goodwill be valued at 4 years’ purchase of super profits.’ The following financial information was obtained at the end of this transaction

Assets

  • ₹ 8,000
  • Creditors ₹ 1,000
  • Normal rate of return 10%
  • Goodwill of the firm ₹ 1,000
Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 27

Goodwill = Super Profit x Number of Years’ Purchase
1,000 = Super Profit x 4 Super Profit = ₹250 

Accountancy: CUET Mock Test - 1 - Question 28

Which of these ways lead to reconstitution of partnership firm?

Accountancy: CUET Mock Test - 1 - Question 29

Sacrificing ratio is calculated as

Accountancy: CUET Mock Test - 1 - Question 30

Revaluation account is credited in case of

Accountancy: CUET Mock Test - 1 - Question 31

In case of depreciation provided on plant and machinery (at the time of change in profit sharing ratio), which account is debited?

Accountancy: CUET Mock Test - 1 - Question 32

Machinery replacement fund is transferred to patners’ capital account at the time of change in profit sharing ratio.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 32

Machinery replacement fund is not transferred because it is in the nature of accumulated depreciation and not in nature of accumulated profits.

Accountancy: CUET Mock Test - 1 - Question 33

If the claim on account of workmen’s compensation is more than the workmen compensation reserve, which account(s) is/are debited initially?

Accountancy: CUET Mock Test - 1 - Question 34

A and B are partners in a firm sharing profit and losses 2 : 3 with effect from 1st April, 2021, they decided to share profits and loss equally. What will be B’s gain/sacrifice?

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 34

B’s sacrifice/gain = Old ratio - New ratio
3/5 - 1/2 = 1/10

Accountancy: CUET Mock Test - 1 - Question 35

A, B and C are partners in a firm sharing profits in ratio of 2 : 1 : 3. They decided to share profits in ratio of 4:5:3. What was A’s gain/sacrifice?

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 35

A’s sacrifice/(gain) = Old ratio - New ratio
= 2/6 - 4/12 = 4 - 4/12
= 0/12

Accountancy: CUET Mock Test - 1 - Question 36

Revaluation account is prepared to _____ the assets and liabilities.

Accountancy: CUET Mock Test - 1 - Question 37

In case of increase in the amount of liability, revaluation account is _____ and liabilities account is ______   

Accountancy: CUET Mock Test - 1 - Question 38

In case the claim on account of workmen’s compensation is equal to workmen compensation reserve, there is no treatment in revaluation account.

Accountancy: CUET Mock Test - 1 - Question 39

Existing goodwill is not supposed to be treated in case of change in profit sharing ratio.

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 39

Existing goodwill is divided in old ratio and debited in partners’ capital account.

Accountancy: CUET Mock Test - 1 - Question 40

The firm of A, B and C received a commission of ₹ 50,000 during 2020-21 with effect from 1st April, 2021, the partners decided to change the profit sharing ratio. It was decided that out of total commission received ₹ 10,000 to be treated as advance commission. What will be the initial effect on revaluation account on account of this transaction?

Detailed Solution for Accountancy: CUET Mock Test - 1 - Question 40

Advance commission will be credited because it is a liability for the firm and revaluation account will be debited by ₹ 10,000.

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