CUET 2026 May 11 Shift 1 Accountancy Question Paper- Download Answer Key and Solution PDF

Concept:
The Indian Partnership Act, 1932 defines various aspects related to partnership firms, including formation, rights, duties, and dissolution.
According to Section 39 of the Partnership Act:  “The dissolution of partnership between all the partners of a firm is called the dissolution of the firm.” 
This means that when the relationship among all partners comes to an end and the business is completely closed, it is known as dissolution of the firm.
Step 1: Understand the meaning of dissolution of firm.
Dissolution of a firm occurs when:
Partnership among all partners ends.
Business activities are discontinued.
Assets and liabilities are settled.
Thus, complete termination of partnership is called: \[
\boxed{\mathrm{Dissolution\ of\ firm}}
\]
Step 2: Analyze the remaining options.
Admission of partner:

Admission means a new partner joins the existing partnership.

\[ \Rightarrow Incorrect \]

Reconstitution of firm:

Reconstitution occurs when partners change but the firm continues.

\[ \Rightarrow Incorrect \]

Settlement of accounts:

Settlement of accounts is only a process carried out after dissolution.

\[ \Rightarrow Incorrect \]
Step 3: Identify the correct option.

\[
\boxed{\mathrm{Dissolution\ of\ firm}}
\]

Hence, the correct answer is:

\[
\boxed{\mathrm{(C)}}
\]
The option matching the definition under Section 39 is: Quick Tip: According to Section 39 of the Indian Partnership Act, 1932: Dissolution of partnership among all partners = Dissolution of firm 

Concept:
Section 464 of the Companies Act, 2013 places a restriction on the maximum number of persons who can form a partnership without registering as a company.
According to the Act:  The maximum number of partners allowed in a partnership firm is 20. 
If the number exceeds this limit, the association must generally be registered under the Companies Act.
Step 1: Understand the legal provision.
Section 464 provides that:
A partnership firm cannot have more than 20 partners.
Beyond this limit, registration as a company becomes necessary.
Thus: \[ \boxed{20} \]
Step 2: Analyze the remaining options.
50
This exceeds the prescribed legal limit:  \[ \Rightarrow Incorrect \]
100
Not permitted for an ordinary partnership firm: \[ \Rightarrow Incorrect \]
200
Far beyond the maximum prescribed number: \[ \Rightarrow Incorrect \]
Step 3: Identify the correct option.
The correct maximum prescribed number is: \[ \boxed{20} \]
Hence, the correct answer is: \[ \boxed{(A)} \]

Quick Tip: Under Section 464 of the Companies Act, 2013: \[
\mathrm{Maximum\ partners\ in\ a\ firm} = 20
\]  (Except certain professional associations governed separately.)

Concept:
The Companies Act, 2013 provides definitions of important corporate and financial terms under Section 2.
The term Debenture is specifically defined under: \[ Section 2(30) \]
A debenture generally refers to an instrument acknowledging debt issued by a company.
Step 1: Understand the definition of Debenture.
According to Section 2(30) of the Companies Act, 2013:

Debenture includes debenture stock, bonds, or any other instrument of a company evidencing a debt. 
Thus: \[ \boxed{Section 2(30)} \]
Step 2: Analyze the remaining options.
Section 2(68)
Defines a private company: \[ \Rightarrow Incorrect \]
Section 2(71)
Defines a public company: \[ \Rightarrow Incorrect \]
Section 2(62)
Defines one person company: \[ \Rightarrow Incorrect \]
Step 3: Identify the correct option.

The section covering the meaning of debentures is:

\[
\boxed{\mathrm{Section\ 2(30)}}
\]

Hence, the correct answer is:

\[
\boxed{\mathrm{(A)}}
\]

Quick Tip:

Remember:
\[
\mathrm{Debenture} \rightarrow \mathrm{Section\ 2(30)}
\]

Important nearby sections:
\[
\mathrm{2(62)} \rightarrow \mathrm{One\ Person\ Company}
\]

\[
\mathrm{2(68)} \rightarrow \mathrm{Private\ Company}
\]

\[
\mathrm{2(71)} \rightarrow \mathrm{Public\ Company}
\]

Concept:
In the absence of a Partnership Deed, the provisions of the Indian Partnership Act, 1932 apply.
According to the Act:
No interest is allowed on partners' capital.
Interest on partner's loan is allowed at \(6%\) per annum.
Step 1: Calculate interest on additional capital.

Additional capital introduced:
\[
\mathrm{Rs.\ 1,00,000}
\]

Since there is no Partnership Deed:
\[
\mathrm{Interest\ on\ capital} = 0
\]

Thus:
\[
\boxed{\mathrm{Rs.\ 0}}
\]
Step 2: Calculate interest on loan advanced.

Loan advanced on:
\[
1^{\mathrm{st}}\ \mathrm{October,\ 2024}
\]

Loan amount:
\[
\mathrm{Rs.\ 1,00,000}
\]

Interest rate under Partnership Act:
\[
6\%\ \mathrm{per\ annum}
\]

Period from October 1 to March 31:
\[
6\ \mathrm{months}
\]

Interest:
\[
=
\frac{1,00,000 \times 6 \times 6}{100 \times 12}
\]

\[
=
\mathrm{Rs.\ 3,000}
\]

Step 3: Compute total interest payable.

\[
\mathrm{Interest\ on\ capital}
+
\mathrm{Interest\ on\ loan}
\]

\[
=
0 + 3,000
\]

\[
=
\mathrm{Rs.\ 3,000}
\]
Step 4: Identify the correct option.

Thus, the interest payable to Nisha is:
\[
\boxed{\mathrm{Rs.\ 3,000}}
\]

Hence, the correct answer is:
\[
\boxed{\mathrm{(C)}}
\]

Quick Tip:

Without a Partnership Deed:
\[
\mathrm{Interest\ on\ Capital} = 0
\]

\[
\mathrm{Interest\ on\ Partner's\ Loan} = 6\%\ \mathrm{p.a.}
\]

under the Indian Partnership Act, 1932.

Concept:
At the time of admission of a new partner:
Revaluation profit or loss is distributed among old partners only.
The new partner does not get any share in past profits or losses.
Hence, C will not receive any share of revaluation profit.

Step 1: Calculate decrease in value of machinery.

Book value of machinery:
\[
\mathrm{Rs.\ 1,00,000}
\]

Depreciation:
\[
20\%
\]

Loss on revaluation:
\[
=
1,00,000 \times \frac{20}{100}
\]

\[
=
\mathrm{Rs.\ 20,000}
\]
Step 2: Calculate increase in value of building.

Book value of building:
\[
\mathrm{Rs.\ 80,000}
\]

Appreciation:
\[
10\%
\]

Gain on revaluation:
\[
=
80,000 \times \frac{10}{100}
\]

\[
=
\mathrm{Rs.\ 8,000}
\]
Step 3: Record unrecorded debtors.

Unrecorded debtors brought into books:
\[
\mathrm{Rs.\ 2,000}
\]

This increases assets, therefore:
\[
\mathrm{Gain = Rs.\ 2,000}
\]

Step 4: Calculate net revaluation profit/loss.

Total gains:
\[
8,000 + 2,000 = \mathrm{Rs.\ 10,000}
\]

Total losses:
\[
\mathrm{Rs.\ 20,000}
\]

Net result:
\[
10,000 - 20,000 = -\mathrm{Rs.\ 10,000}
\]

Thus, there is a net revaluation loss of:
\[
\mathrm{Rs.\ 10,000}
\]
Step 5: Distribute revaluation loss among old partners.

Old profit-sharing ratio:
\[
A : B = 1 : 3
\]

Total ratio:
\[
1+3=4
\]

B's share:
\[
=
10,000 \times \frac{3}{4}
\]

\[
=
\mathrm{Rs.\ 7,500}
\]

C's share:
\[
=
\mathrm{Rs.\ 0}
\]

because C is admitted after revaluation adjustments.
Step 6: Identify the correct option.

Thus:
\[
\boxed{\mathrm{B's\ share = Rs.\ 7,500,\ C's\ share = Rs.\ 0}}
\]

Hence, the correct answer is:
\[
\boxed{\mathrm{(C)}}
\]

Quick Tip:

At the time of admission of a new partner:
\[
\mathrm{Revaluation\ Profit/Loss}
\]

is shared only by the old partners in their old profit-sharing ratio.

Concept:
When a partner dies, his share of profit up to the date of death is calculated according to the partnership agreement.

Here, profit is to be determined on the basis of:
\[
\mathrm{Average\ profit\ of\ the\ last\ five\ years}
\]

Step 1: Calculate total profits for five years.

\[
2013 = \mathrm{Rs.\ 14,000}
\]

\[
2014 = \mathrm{Rs.\ 18,000}
\]

\[
2015 = \mathrm{Rs.\ 16,000}
\]

\[
2016 = -\mathrm{Rs.\ 10,000}
\]

\[
2017 = \mathrm{Rs.\ 16,000}
\]

Total:
\[
14,000 + 18,000 + 16,000 - 10,000 + 16,000
\]

\[
=
\mathrm{Rs.\ 54,000}
\]

Step 2: Calculate average profit.

\[
\mathrm{Average\ Profit}
=
\frac{54,000}{5}
\]

\[
=
\mathrm{Rs.\ 10,800}
\]

Step 3: Calculate profit up to date of death.

A died on:
\[
30^{\mathrm{th}}\ \mathrm{June,\ 2017}
\]

That means profit is required for:
\[
3\ \mathrm{months}
\]

Thus:
\[
10,800 \times \frac{3}{12}
\]

\[
=
\mathrm{Rs.\ 2,700}
\]

Step 4: Compare with given options.

The calculated amount:
\[
\mathrm{Rs.\ 2,700}
\]

is not among the given options.

Therefore:
\[
\boxed{\mathrm{None\ of\ the\ above}}
\]

Step 5: Identify the correct option.

Hence, the correct answer is:
\[
\boxed{\mathrm{(D)}}
\]

Quick Tip: For deceased partner's profit: \[
\mathrm{Average\ Profit}
\times
\frac{\mathrm{Period}}{12}
\]Remember to treat losses as negative while calculating average profit.

Concept:
Bearer debentures are debentures payable to the bearer (holder) of the certificate. Ownership is determined simply by possession of the instrument.
Important characteristics of bearer debentures include:
They are negotiable instruments.
They are transferable by mere delivery.
Interest is paid to the holder without verification of identity.
No formal deed of transfer is required.
Step 1: Analyze option (A).

Bearer debentures are treated as negotiable instruments.

\[
\Rightarrow \mathrm{Correct\ characteristic}
\]
Step 2: Analyze option (B).

A deed of transfer is generally required for registered debentures, not bearer debentures.

Bearer debentures are transferred simply by delivery.

\[
\Rightarrow \mathrm{Not\ a\ characteristic}
\]
Step 3: Analyze option (C).

Bearer debentures can be transferred by:
\[
\mathrm{Mere\ delivery}
\]

\[
\Rightarrow \mathrm{Correct\ characteristic}
\]
Step 4: Analyze option (D).

Interest is paid to the person holding the debenture certificate regardless of identity.

\[
\Rightarrow \mathrm{Correct\ characteristic}
\]
Step 5: Identify the correct option.

The statement that is not a characteristic of bearer debentures is:
\[
\boxed{\mathrm{Their\ transfer\ requires\ a\ deed\ of\ transfer}}
\]

Hence, the correct answer is:
\[
\boxed{\mathrm{(B)}}
\]

Quick Tip: Bearer Debentures:

\[
\mathrm{Transfer} \rightarrow \mathrm{By\ mere\ delivery}
\]

\[
\mathrm{Ownership} \rightarrow \mathrm{By\ possession}
\]

No transfer deed is required.

Concept:
When a new partner is admitted, the total capital of the firm can be determined on the basis of the capital introduced by the new partner and his share in profits.
The old partners' adjusted capitals are then calculated according to their profit-sharing ratio.
Step 1: Calculate total capital of the firm.
Z brings: \[ Rs.20,000 \]

for:
\[
\frac{1}{4}\ \mathrm{share\ of\ profit}
\]

Therefore, total capital of the firm:
\[
=
\frac{20,000}{1/4}
\]

\[
=
\mathrm{Rs.\ 80,000}
\]
Step 2: Calculate old partners' combined capital.

After admission, Z's capital:
\[
\mathrm{Rs.\ 20,000}
\]

Thus, combined capital of X and Y:
\[
80,000 - 20,000
\]

\[
=
\mathrm{Rs.\ 60,000}
\]
Step 3: Distribute capital between X and Y.

Old profit-sharing ratio:
\[
2:1
\]

Total ratio:
\[
2+1=3
\]

Capital of X:
\[
60,000 \times \frac{2}{3}
\]

\[
=
\mathrm{Rs.\ 40,000}
\]

Capital of Y:
\[
60,000 \times \frac{1}{3}
\]

\[
=
\mathrm{Rs.\ 20,000}
\]
Step 4: Identify the correct option.

Thus, adjusted capitals are:
\[
\boxed{\mathrm{Rs.\ 40,000\ and\ Rs.\ 20,000}}
\]

Hence, the correct answer is:
\[
\boxed{\mathrm{(A)}}
\]
Quick Tip: To find total capital: 

\[
\mathrm{Total\ Capital}
=
\frac{\mathrm{Capital\ brought\ by\ new\ partner}}
{\mathrm{Share\ acquired}}
\]

Then distribute remaining capital among old partners in their profit-sharing ratio.

Concept:
Trade Payables Turnover Ratio is calculated as: \[
\mathrm{Trade\ Payables\ Turnover\ Ratio}
=
\frac{\mathrm{Credit\ Purchases}}
{\mathrm{Average\ Trade\ Payables}}
\]
where: \[
\mathrm{Average\ Trade\ Payables}
=
\frac{\mathrm{Opening\ Creditors}+\mathrm{Closing\ Creditors}}{2}
\]
Step 1: Calculate Average Trade Payables.
Given: \[
\mathrm{Credit\ Purchases} = \mathrm{Rs.\ 6,00,000}
\]

\[
\mathrm{Trade\ Payables\ Turnover\ Ratio} = 5
\]
Thus: 

\[
5 =
\frac{6,00,000}{\mathrm{Average\ Creditors}}
\]

\[
\mathrm{Average\ Creditors}
=
\frac{6,00,000}{5}
\]

\[
= \mathrm{Rs.\ 1,20,000}
\]
Step 2: Form equation using opening and closing creditors.
Let Closing Creditors: x

Given:
\[
\mathrm{Closing\ Creditors\ are\ Rs.\ 10,000\ less\ than\ Opening\ Creditors}
\]

Therefore:
\[
\mathrm{Opening\ Creditors} = x + 10,000
\]

Average creditors:
\[
\frac{x + (x+10,000)}{2}
=
1,20,000
\]
Step 3: Solve the equation.

\[
\frac{2x+10,000}{2}
=
1,20,000
\]

\[
2x+10,000
=
2,40,000
\]

\[
2x
=
2,30,000
\]

\[
x
=
\mathrm{Rs.\ 1,15,000}
\]

Step 4: Identify the correct option.

Thus, Closing Creditors:
\[
\boxed{\mathrm{Rs.\ 1,15,000}}
\]

Hence, the correct answer is:
\[
\boxed{\mathrm{(A)}}
\]
Quick Tip: Formula: 

\[
\mathrm{Trade\ Payables\ Turnover\ Ratio}
=
\frac{\mathrm{Credit\ Purchases}}
{\mathrm{Average\ Trade\ Payables}}
\]

and

\[
\mathrm{Average\ Trade\ Payables}
=
\frac{\mathrm{Opening}+\mathrm{Closing}}{2}
\]

Concept:
Comparative financial statements are used to compare financial data of different accounting periods. They help in identifying:
Trend of financial performance
Direction of changes
Growth or decline in financial position
Changes in operating results over time
Thus, comparative statements are an important tool of financial statement analysis.
Step 1: Understand Comparative Statements.
Comparative statements present: \[
\mathrm{Current\ Year\ Data} \quad \mathrm{vs} \quad \mathrm{Previous\ Year\ Data}
\]
This comparison helps determine: \[
\mathrm{Trend\ and\ Direction}
\]
of financial performance and financial position.
Thus: \[
\boxed{\mathrm{Comparative\ Statement}}
\]
Step 2: Analyze the remaining options.
Common Size Statements
Used mainly for percentage analysis and structural comparison.
\[
\Rightarrow \mathrm{Not\ mainly\ used\ for\ trend\ direction}
\]
Cash Flow Analysis
Shows inflow and outflow of cash.
\[
\Rightarrow \mathrm{Not\ specifically\ used\ for\ trend\ analysis}
\]
Ratio Analysis

Measures financial efficiency and performance relationships.

\[
\Rightarrow \mathrm{Does\ not\ directly\ indicate\ overall\ trend\ or\ direction}
\]
Step 3: Identify the correct option.
The tool indicating trend and direction of financial position and operating results is: \[
\boxed{\mathrm{Comparative\ Statement}}
\]
Hence, the correct answer is: \[
\boxed{\mathrm{(A)}}
\]

Quick Tip: Comparative Statements help in: \[
\mathrm{Trend\ Analysis}
\] by comparing financial data across multiple years.