NTA is conducting the CUET 2025 exam from 13th May to 3rd June. CUET Accountancy Question Paper 2025 with Answer Key and Solution PDF is available here for paper held on 13th May. Based on the previous analysis, CUET Accountancy was comparatively tough.
As per the exam pattern, the CUET Accountancy exam consists of 50 questions for 250 marks to be attempted in 60 minutes. 5 marks are awarded for each correct answer, and 1 mark is deducted for incorrect answer.
CUET Accountancy May 13 Question Paper 2025 with Answer Key
| CUET Accountancy Question Paper 2025 | Download PDF | Check Solutions |
Note: The CUET 2025 Accountancy paper will now include an option to the student (to choose between questions from 'Unit V' or 'optional to Unit V'). The rest of the question paper will continue to cover content from Units 1 to 4 as per the notified syllabus. Check details here
Question 1:
In the absence of a partnership deed, which of the following statements is correct?
Match List I with List II:
Choose the correct answer from the options given below:
A, B, C and D are partners in a firm sharing profits in the ratio of 3:2:1:4. A retired and his share is acquired by B and C in the ratio 3:2. Calculate the new profit sharing ratio of partners.
Match List – I with List – II:
Choose the correct answer from the options given below:
Balance of Share Forfeited Account on the forfeited share not yet re-issued is:
What is the correct sequence at the time of death of a partner?
(A) Amount paid to Executor
(B) Preparation of Revaluation account
(C) Calculation of Amount Payable to executor of Deceased partner
(D) Calculation of Revaluation Gain/Loss
(E) Balance of Executor’s loan A/c
Choose the correct answer from the options given below:
Match List I with List II:
Choose the correct answer from the options given below:
When realisation expenses are paid by a partner on behalf of the firm, what is the journal entry made?
Which item is shown under "Long-term Borrowings" in the Balance Sheet?
If debentures are issued to a vendor for assets purchased and the vendor’s account is credited by Rs.1,10,000, what is the journal entry if the debentures are issued at a premium of 10%?
Based on the following information of a company as at 31 March, 2017, what will be the Current Ratio of the company?
Calculate Liquid Assets and Quick Ratio of the Company.
Calculate Debt Equity Ratio of the company based on the given data:
Calculate the Interest Coverage Ratio of the company.
Calculate the Inventory Turnover Ratio of the company.
Which of the following is correct regarding difference between sacrificing and gaining ratio?
(A) Gaining Ratio is a more suitable parameter to measure new profit sharing ratio than Sacrificing Ratio.
(B) Sacrificing Ratio is calculated at the time of the admission of the partner while Gaining Ratio is calculated at the time of retirement or death of the partner.
(C) New partner’s share of goodwill is divided between the old partners in gaining ratio while Goodwill paid to retiring partner is paid by the remaining partners in their Sacrificing ratio.
(D) Sacrificing Ratio = Old Ratio – New Ratio and Gaining Ratio = New Ratio – Old Ratio.
Choose the correct answer from the following options:
View Solution
Arrange the following in the context of Cash Flow Statement:
(A) Calculation of cash flow from Operating Activities
(B) Calculation of cash flow from Financing Activities
(C) Calculation of net increase/decrease in cash and cash equivalent during the year
(D) Calculation of cash flow from Investing Activities
(E) Calculation of net profit before tax and extraordinary item
Choose the correct answer from the options given below:
Match List I with List II:
Choose the correct answer from the options given below:
At the time of admission of a partner, if goodwill exists in the books of accounts, it will be written off among:
If the capital employed in a business is Rs.5,00,000, the average profit is Rs.60,000, and the normal rate of return is 6%, the goodwill by the Capitalisation of Average Profit Method will be:
Arrange the following in a sequence in which amount realised from Assets will be utilized to pay:
A. Partner’s Loan
B. Partner’s Capital
C. Secured debts of the firm
D. Unsecured debts of the firm
E. Residue to partners
Choose the correct answer from the options given below:
Which of the following will not be shown in Realisation Account?
Arrange the following in correct sequence according to the form and content of statement of Profit and Loss:
(A) Employee Benefit Expenses
(B) Tax provided
(C) Revenue from operations
(D) Purchase of stock in Trade
(E) Dividend Income
Choose the correct answer from the options given below:
Securities Premium cannot be used:
Match List I with List II:
Choose the correct answer from the options given below:
During the financial year 2021-22, Surjeet withdrew Rs.30,000 quarterly at the beginning of every quarter. If interest to be charged is 8% p.a., calculate the amount of interest on drawings:
A, B, and C were partners in a partnership firm sharing profits in the ratio 5:3:2. B retires and the new profit-sharing ratio between A and C is 3:2. Calculate the gaining ratio of A and C.
Match List - I with List – II.
Choose the correct answer from the options given below:
Identify the other name by which Liquid ratio is known:
The Debentures that are payable on the expiry of the specific period either in lumpsum or in installments during life time of the company are called:
Aman and Riya share profits in the ratio 5:3. They admitted Kunal for \(\frac{1}{4}\) share, which he took equally from both. Calculate the new ratio.
View Solution
Step 1: Initial shares of Aman and Riya
The ratio of their profits is \(5:3\). Total parts = \(5 + 3 = 8\).
So, Aman’s share = \(\frac{5}{8}\), Riya’s share = \(\frac{3}{8}\).
Step 2: Kunal’s admitted share
Kunal is admitted for \(\frac{1}{4}\) share of the profits. So, the remaining share left for Aman and Riya together is:
\(1 - \frac{1}{4} = \frac{3}{4}\)
Step 3: Kunal’s share is taken equally from Aman and Riya
Kunal takes \(\frac{1}{4}\) share equally from both, so each gives: \(\frac{1}{2} \times \frac{1}{4} = \frac{1}{8}\).
Step 4: New shares of Aman, Riya, and Kunal
Aman’s new share = \(\frac{5}{8} - \frac{1}{8} = \frac{4}{8} = \frac{1}{2}\)
Riya’s new share = \(\frac{3}{8} - \frac{1}{8} = \frac{2}{8} = \frac{1}{4}\)
Kunal’s share = \(\frac{1}{4}\)
Step 5: Expressing the new shares in ratio form
New ratio \(= \frac{1}{2} : \frac{1}{4} : \frac{1}{4} = 2 : 1 : 1\). Quick Tip: When a new partner is admitted by taking equal shares from existing partners, subtract the shares equally and find the new ratio by expressing all shares as fractions of the total.
A machinery worth Rs.75,000 was undervalued by 10%. What will be its new value in the Balance Sheet?
View Solution
Step 1: Understand undervaluation
Undervaluation means the machinery's value recorded is less than its actual value. Here, undervaluation is 10% of Rs.75,000.
Step 2: Calculate undervaluation amount
Undervaluation = \(10% \times 75,000 = \frac{10}{100} \times 75,000 = Rs.7,500\).
Step 3: Calculate the new (corrected) value
New value = Original value - Undervaluation
= Rs.75,000 - Rs.7,500 = Rs.67,500. Quick Tip: To find the corrected value after undervaluation, subtract the percentage undervaluation from the original value.
A firm earned Rs.90,000 profit. Mohit is guaranteed Rs.40,000 for his \(\frac{1}{4}\) share. How much deficiency will others bear in 3:1 ratio?
View Solution
Step 1: Calculate Mohit's actual share from profit
Mohit’s share = \(\frac{1}{4} \times Rs.90,000 = Rs.22,500\).
Step 2: Guaranteed amount vs actual share
Mohit is guaranteed Rs.40,000 but actually earned Rs.22,500, so deficiency in Mohit's share = \(Rs.40,000 - Rs.22,500 = Rs.17,500\).
Step 3: Remaining profit for others
Total profit = Rs.90,000, Mohit gets Rs.40,000 guaranteed, so remaining profit for others = \(Rs.90,000 - Rs.40,000 = Rs.50,000\).
Step 4: Others' rightful share
Since Mohit's share is \(\frac{1}{4}\), others' share is \(\frac{3}{4}\)
Rightful share of others = \(\frac{3}{4} \times Rs.90,000 = Rs.67,500\).
Step 5: Deficiency borne by others
Deficiency = Rightful share - actual share = \(Rs.67,500 - Rs.50,000 = Rs.17,500\).
Step 6: Divide deficiency in ratio 3:1
Sum of ratio parts = \(3 + 1 = 4\)
Each part = \(\frac{Rs.17,500}{4} = Rs.4,375\)
So, the shares are:
- Partner 1 bears = \(3 \times Rs.4,375 = Rs.13,125\)
- Partner 2 bears = \(1 \times Rs.4,375 = Rs.4,375\)
Step 7: Answer for deficiency others bear
The question typically asks how much deficiency others bear in total or how much one of them bears. The total deficiency is Rs.17,500. However, sometimes, options correspond to a part. Checking options: none is Rs.17,500, so likely question expects difference in Mohit’s share \(Rs.17,500\) is split and the difference others bear in total = Rs.17,500. If the question wants deficiency one partner bears in 3:1 ratio, the smaller part is Rs.4,375 which does not match options, so possibly question options assume the difference Mohit has in share \(Rs.17,500\) and part of Rs.10,000 is the closest.
If the question strictly asks "how much deficiency will others bear in 3:1 ratio?" and answer options are given as in multiples of Rs.5,000, then the deficiency is the difference Mohit has, \(Rs.17,500\), split accordingly. Sometimes rounding or misinterpretation causes this. Based on standard calculation, total deficiency others bear = Rs.17,500. Quick Tip: When guaranteed amount is higher than actual share, deficiency is borne by other partners in their agreed ratio by subtracting the shortfall from their shares.
Question 34:
ABC & Co. had 3 partners: Alok, Bhavya, and Chirag, sharing profits in 4:3:3. The
firm dissolved on 31 March 2024. Assets worth Rs.9,00,000 were realized at 80%,
creditors of Rs.70,000 were paid, and an unrecorded liability of Rs.20,000 was settled for
Rs.15,000. Realization expenses of Rs.25,000 were borne by Alok.
(1). Find the amount realized from assets.
View Solution
Step 1: Calculate amount realized
Assets worth Rs.9,00,000 realized at 80%. \[ Amount realized = 9,00,000 \times 80% = 7,20,000 \] Quick Tip: Realized amount = Asset value × Realization percentage.
(2). What journal entry is made for realization expenses paid by Alok?
View Solution
(3). The unrecorded liability settled at a lesser value causes:
View Solution
Step 1: Understand effect of settling unrecorded liability at less
Unrecorded liability of Rs.20,000 was settled at Rs.15,000 (less than liability).
This difference of Rs.5,000 is a gain for the firm, recorded as profit on realization.
Step 2: Conclusion
Settling unrecorded liabilities at less causes profit on realization. Quick Tip: If liability is settled for less than amount, the difference is treated as profit on realization.
A firm has current assets Rs.2,50,000 and current liabilities Rs.1,00,000. Find the current ratio.
View Solution
The current ratio is calculated as:
\[ Current Ratio = \frac{Current Assets}{Current Liabilities} = \frac{2,50,000}{1,00,000} = 2.5 \]
Thus, the current ratio is 2.5:1. Quick Tip: The current ratio helps assess a firm's liquidity by comparing its current assets to current liabilities. A higher ratio indicates better short-term financial health.
If a partner is given salary and commission, how are these shown in the accounts?
View Solution
When a partner is given salary or commission, these are treated as part of the profit-sharing arrangement and are shown in the Profit and Loss Appropriation Account.
- The partner’s salary and commission are debited to the Profit and Loss Appropriation Account.
- The corresponding credit goes to the individual partner’s capital account.
The journal entry will be:
\[ Profit and Loss Appropriation Account \quad Dr. \]
\[ Salary and Commission to Partner \]
\[ To Partner’s Capital Account \] Quick Tip: Salary and commission given to a partner are treated as expenses for the firm and are shown in the Profit and Loss Appropriation Account. These amounts are credited to the partner's capital account.
P and Q are partners sharing profits in a 5:3 ratio. They allow interest on capital at 6% p.a. If P’s capital is Rs.1,20,000, what is the interest credited to his capital account?
View Solution
Interest on capital is calculated as a percentage of the partner's capital.
\[ Interest on P’s Capital = \frac{6}{100} \times 1,20,000 = Rs.7,200 \]
Thus, the interest credited to P’s capital account is Rs.7,200. Quick Tip: Interest on capital is calculated at the agreed rate on the partner’s capital. This interest is credited to the partner’s capital account.
R and S are partners in a 4:1 ratio. T is admitted and gets 1/5 share, equally from both. Find the new ratio.
View Solution
R and S are currently sharing profits in a 4:1 ratio. When T is admitted, he gets 1/5 of the total share, and this share will be equally distributed between R and S.
- T’s share = \( \frac{1}{5} \)
Thus, the remaining share is \( 1 - \frac{1}{5} = \frac{4}{5} \).
Since R and S share this remaining \( \frac{4}{5} \) in the ratio of 4:1, we need to split the remaining share between R and S.
The total parts of the ratio = \( 4 + 1 = 5 \).
Thus, the share for R is:
\[ \frac{4}{5} \times \frac{4}{5} = \frac{16}{25} \]
The share for S is:
\[ \frac{1}{5} \times \frac{4}{5} = \frac{4}{25} \]
Therefore, the new ratio of R, S, and T is: \[ R : S : T = \frac{16}{25} : \frac{4}{25} : \frac{1}{5} = 16 : 4 : 5 \]
Thus, the new profit-sharing ratio is 16:4:5. Quick Tip: When a new partner is admitted, the existing partners' shares are diluted to accommodate the new partner’s share. The shares are adjusted based on the existing profit-sharing ratio.
On the death of a partner, his capital account is credited with:
View Solution
On the death of a partner, the following amounts are credited to the deceased partner’s capital account:
1. The balance of the capital account at the time of death.
2. His share of the accumulated profits or losses.
3. His share of goodwill, if applicable.
4. Any outstanding loan amount due from the firm to the deceased partner.
The journal entry for the death of a partner is:
To Deceased Partner’s Capital Account Balance of capital and share of profits Quick Tip: The deceased partner’s capital account is credited with his share of capital, profits, goodwill, and any loans owed by the firm.
If unrecorded assets are taken over by a partner, the entry will be:
View Solution
If unrecorded assets are taken over by a partner, the journal entry is:
\[ Unrecorded Assets Account \quad Dr. \quad To Partner’s Capital Account \]
This entry reflects the transfer of unrecorded assets to the partner’s capital account. The value of the unrecorded assets is credited to the partner who takes them over. Quick Tip: When a partner takes over unrecorded assets, the value of those assets is credited to the partner’s capital account.
600 shares of Rs.10 each were issued at 20% premium. Final call of Rs.3 not received on 100 shares. What is the forfeiture amount?
View Solution
- Face value of each share = Rs.10
- Premium on each share = 20% of Rs.10 = Rs.2
- Total amount due per share = Rs.10 + Rs.2 + Rs.3 = Rs.15
For 100 shares, the final call of Rs.3 is not received, so the amount to be forfeited for each share is:
\[ Forfeited Amount per Share = Total Amount Due - Amount Received = Rs.15 - Rs.12 = Rs.3 \]
Thus, the total forfeiture amount for 100 shares is:
\[ Forfeiture Amount = 100 \times Rs.3 = Rs.300 \] Quick Tip: When shares are forfeited, the amount received is considered, and the difference is the forfeiture amount. Always remember to subtract the amount received from the total due.
Purchase of land using a cheque is classified as: (Cash Flow Statement question)
View Solution
The purchase of land is considered an investing activity. According to the cash flow statement classification, investing activities include the acquisition and disposal of long-term assets, such as land, buildings, and equipment. Since a cheque is being used, it is a cash outflow associated with an investment in long-term assets.
Thus, the purchase of land using a cheque is classified under Investing Activity. Quick Tip: Investing activities involve the purchase and sale of long-term assets. Any payment for acquiring assets such as land is classified as an investing activity in the cash flow statement.
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