CUET Accountancy Sample Paper Set 04

Question: Who are accountable to all the stakeholders in case of a NPO?
a) Partners
b) Government
c) Trustees
d) Investors

Answer: c

Question: Which of the following acts are applicable to the partnership concern?
a) Indian Partnership Act, 1932
b) Limited Liability Partnership Act, 2008
c) Companies Act, 2013
d) A & B

Answer: d

Question: A and B are partners in a firm in ratio 3:2. They admitted C for 20% share in profits and losses. What shall be the new PSR?
a) 3:2:2
b) 6:5:3
c) 12:8:5
d) 5:3:2

Answer: c

Question: Which of the following amount is not due to retiring partner?
a) His share in assets
b) His credit balance of capital
c) His share of goodwill
d) His remuneration

Answer: a

Question: In how many days the company has to get minimum subscription from the date of the issue of the prospectus?
a) 60 days
b) 90 days
c) 120 days
d) 180 days

Answer: c

Question: Ramesh paid Rs. 120 for a Rs. 100 share. What is the difference called?
a) Reserve capital
b) Share premium
c) Premium for goodwill
d) Market value

Answer: b

Question: What is the situation called while the existing partnership is dissolved, the firm may continue under the same name if the partners so decide?
a) Retirement of partner
b) Dissolution of firm
c) Dissolution of partnership
d) Death of partner

Answer: c

Question: In which of the following, can securities premium is utilized for?
a) Writing off expenses on issue of debentures
b) Payment of dividend distribution tax
c) Payment of fees to Registrar of Companies
d) For increasing the authorized share capital of the company

Answer: a

Question: After which of the following event, no business can be transacted?
a) Admission of a partner
b) Retirement of a partner
c) Death of a partner
d) Dissolution of partnership firm

Answer: d

Question: ABC limited is registered with share capital of Rs. 100000 divided into equity shares of Rs. 10 each. It issued 9000 shares to public at par at Rs. 3 on application, Rs. 3 on allotment and balance on 2 calls. The public subscribed for 7500 shares. Till 31st March 2021, only first call is made. All the shareholders had paid up except Mr. Ramesh who holds 500 shares who did not pay the call money. What is ABC Ltd.’s issued share capital?
a) Rs. 100000
b) Rs. 30000
c) Rs. 90000
d) Rs. 78000

Answer: c

Question: Which of the following activities cannot be transacted after dissolution of firm?
a) Selling firm’s assets
b) Paying liabilities
c) Discharging claims of the partners
d) Admission of partner

Answer: d

Question: ABC limited is registered with share capital of Rs. 100000 divided into equity shares of Rs.
10 each. It issued 9000 shares to public at par at Rs. 3 on application, Rs. 3 on allotment and balance on 2 calls. The public subscribed for 7500 shares. Till 31st March 2021, only first call is made. All the shareholders had paid up except Mr. Ramesh who holds 500 shares who did not pay the call money. What is ABC Ltd.’s called up share capital?
a) Rs. 100000
b) Rs. 60000
c) Rs. 75000
d) Rs. 78000

Answer: b

Question: ABC & Co. dissolved on 24/12/2020 in accordance with contract between the partners. What is this type of dissolution called?
a) Dissolution by agreement
b) Compulsory Dissolution
c) Dissolution by court
d) On happening of a certain event

Answer: a

Question: What is the amount received on application?
a) 6000000
b) 4000000
c) 4800000
d) 4600000

Answer: a

Question: ABC & Co. dissolved on 24/12/2020 because Mr. A, partner of the firm was declared insolvent. What is this type of dissolution called?
a) Dissolution by agreement
b) Compulsory Dissolution
c) Dissolution by court
d) On happening of a certain event

Answer: b

Question: What is the amount refunded to the shareholders?
a) 10 lac
b) 12 lac
c) 15 lac
d) 20 lac

Answer: b

Question: ABC & Co. dissolved on 24/12/2020 because Mr. A (partner) who is the citizen of China, which becomes an alien enemy of India. What is this type of dissolution called?
a) Dissolution by agreement
b) Compulsory Dissolution
c) Dissolution by court
d) On happening of a certain event

Answer: b

Question: What is the total amount paid by Sohan?
a) 420000
b) 504000
c) 500000
d) 496000

Answer: a

Question: ABC & Co. dissolved on 24/12/2020 because the firm’s venture has been completed. What is this type of dissolution called?
a) Dissolution by agreement
b) Compulsory Dissolution
c) Dissolution by court
d) On happening of a certain event

Answer: d

Question: What is the amount transferred to share forfeiture account for Mohan’s shares?
a) 96000
b) 104000
c) 108000
d) 120000

Answer: a

Question: ABC & Co. dissolved on 24/12/2020 because Mr. A, the partner of the firm, died and remaining partners are no longer interested to run the firm. What is this type of dissolution called?
a) Dissolution by agreement
b) Compulsory Dissolution
c) Dissolution by court
d) On happening of a certain event

Answer: d

Question: What is the net balance in share capital account?
a) 2 cr
b) 1.5 cr
c) 1.98 cr
d) 2.05 cr

Answer: c

Question: ABC & Co. dissolved on 24/12/2020 because Mr. A, the partner of the firm, gave his intentions of seeking dissolution to other partners in writing. What is this type of dissolution called?
a) Dissolution by agreement
b) Compulsory Dissolution
c) Dissolution by notice
d) On happening of a certain event

Answer: c

Question: By what amount is the share capital debited at the time of forfeiture of shares?
a) Paid up share capital
b) Called up share capital
c) Share premium money
d) Profit on share forfeiture

Answer: b

Question: What is the situation called when the assets are sold and liabilities are paid off?
a) Retirement of partner
b) Dissolution of firm
c) Dissolution of partnership
d) Death of partner

Answer: b

Question: What is the situation called the economic relationship between the partners come to an end?
a) Retirement of partner
b) Dissolution of firm
c) Dissolution of partnership
d) Death of partner

Answer: b

Question: Under which head of balance sheet “Securities Premium Account? is shown as per Schedule III of Companies Act 2013?
a) Reserve and Surplus
b) Non current Liabilities
c) Deferred Liabilities
d) Share capital

Answer: a

Question: How should be the proceeds from the assets be utilised firstly as per section 48 of Partnership Act 1932?
a) For paying debts to third parties
b) For paying debts advanced through unsecured loans
c) For paying advances lent by partners
d) For paying partner’s capital

Answer: a

Question: What are preliminary expenses?
a) Expenses incurred before incorporation of the company
b) Expenses incurred before issue of debentures
c) Expenses relating to equity share capital incurred till 1 year from the date of incorporation
d) Expenses relating to equity share capital incurred till 3 years from the date of incorporation

Answer: a

Question: How are dissolution expenses of the firm recorded at the time of dissolution of the firm?
a) Realisation a/c – dr
        To bank account
b) Dissolution expenses – dr
        To bank account
c) P&L suspense a/c – dr
        To bank account
d) Such expenses are directly borne by partners in individual capacities

Answer: a

Question: Who has usually the authority to forfeit the shares of defaulting shareholders after serving proper notice as per AOA?
a) Majority shareholder
b) Directors
c) Registrar of Companies
d) Creditors

Answer: b

Question: The debtors were having balance of Rs. 25000 on the date of dissolution. Debtors realised 90% only and Rs.1,200 were recovered for bad debts written-off last year. What amount shall be taken in the realisation account?
a) 22500
b) 25000
c) 26200
d) 23700

Answer: d

Question: Whom of the following is generally treated as creditor of the company?
a) Directors
b) Preference Shareholders
c) Equity Shareholders
d) Debenture holders

Answer: d

Question: What amount is taken to realisation account when assets are sold in open market?
a) Market value
b) Realisable value
c) Net book value
d) Purchase value

Answer: b

Question: Which type of company allows that if a member has paid the full amount of the shares, there is no liability on his part whatsoever may be for the debts of the company?
a) Company limited by guarantee
b) Company limited by shares
c) Unlimited company
d) Either a or b

Answer: b

Question: How much is the premium amount if Ramesh paid Rs. 150 for a Rs. 100 share?
a) Rs. 50
b) Rs. 100
c) Rs. 150
d) Rs. 250

Answer: a

Question: What entry is passed when a creditor accepts an asset whose value is more than the due amount, he/she pay cash to the firm for the difference?
a) Bank a/c – dr
      To creditor account
b) Bank a/c – dr
      To revaluation account
c) Bank account – dr
      To realisation account
d) Bank account – dr
      To Partner’s capital account

Answer: c

Question: Which of the following is a feature of company form of business?
a) Same legal entity
b) Unlimited liability
c) Body corporate
d) Non transferability of shares

Answer: c

Question: Anubha looked after the dissolution work for remuneration of Rs. 8,500 and agreed to bear dissolution expenses upto Rs. 6,000. Actual expenses paid by her were Rs. 7,600. What amount shall be taken to realisation account?
a) 6000
b) 14500
c) 7600
d) 10100

Answer: d

Question: Which of the following feature of company allows that members may come and go but the company continues?
a) Separate Legal entity
b) Perpetual succession
c) Transferability of Shares
d) Body Corporate

Answer: b

Question: There was an unrecorded asset of Rs. 2500, which was taken over by Rita at Rs. 2000. Which account shall be taken to realisation account for above transaction?
a) Asset account
b) Unrecorded asset account
c) Partner’s capital account
d) Goodwill account

Answer: c

Question: ABC Limited wants to drag EFG Technologies to the court for breach of contract. Which feature of company form of business allows ABC Limited to pursue such an event?
a) Common seal
b) Perpetual succession
c) Separate legal entity
d) Sue or be sued

Answer: d

Question: There was an unrecorded asset of Rs. 2500, which was taken over by Rita at Rs. 2000. What amount shall be taken to realisation account?
a) Rs. 500
b) Rs. 2000
c) Rs. 2500
d) Rs. 4500

Answer: b

Question: The paid up share capital should not be more than in case of OPC?
a) 25 lac
b) 50 lac
c) 1 crore
d) 5 crore

Answer: b

Question: Vibha was appointed to look after the dissolution work for which she was allowed a remuneration of Rs. 14,000. She agreed to take over investment of the book value of Rs. 13,000 towards payment of her remuneration. Investments have already been transferred to realisation Account. For what amount the entry shall be posted to realisation account?
a) 14000
b) 13000
c) 1000
d) No entry

Answer: d

Question: The average turnover of 3 years should not be more than crores in case of OPC?
a) 1 crore
b) 2 crore
c) 5 crore
d) 10 crore

Answer: b

Question: Which of the following account is transferred to realisation account?
a) Cash account
b) Debit balance of partner’s current account
c) Fictitious assets account
d) Fixed assets account

Answer: d

Question: The average turnover of years should not be more than 2 crores in case of OPC?
a) 2 years
b) 3 years
c) 5 years
d) 10 years

Answer: b

Question: What are shareholders of the company regarded as?
a) Management of the company
b) Creditors of the company
c) Employees of the company
d) Owners of the company 

Answer: d

Question: How can partners desire to disclose the assets and liabilities at old value without opening a revaluation account?
a) Adjusting through partner’s capital accounts directly
b) Taking the charge through P&L account
c) It cannot be done without opening a revaluation account
d) By taking special permission from Registrar of Firms

Answer: a