CUET UG Accountancy · Paper 4

Which of the following is NOT true of the fixed capital method?

The capital employed in a firm is ₹5,00,000 and the normal rate of return is 10%. The average profit of the firm is ₹80,000. The goodwill of the firm at 4 years' purchase of super profit is:

On 31 March 2025, ₹3,00,000 was due to Dev, a retiring partner. It was agreed to pay him in three equal annual instalments together with interest, but the partners did not agree on any rate of interest. The first instalment, along with interest, is paid on 31 March 2026. The amount of the first payment is:

A and B share profits in the ratio 3 : 2. They admit C for $\frac{1}{4}$ share, and C brings ₹1,50,000 as his capital. After all adjustments, the capitals of A and B are ₹2,80,000 and ₹2,00,000. A and B will continue to share between themselves in the ratio 3 : 2, and their capitals are to be adjusted on the basis of C's capital by opening current accounts. The adjustment for B is:

Consider the following statements about the accounts on dissolution of a firm:

I. A partner's loan to the firm is transferred to the Realisation Account.

II. Provision for doubtful debts is transferred to the credit of the Realisation Account.

III. Accumulated profits and reserves are transferred to the partners' capital accounts in their profit-sharing ratio.

IV. Cash and bank balances are not transferred to the Realisation Account.

Which of the statements are correct?

Assertion: When existing partners change their profit-sharing ratio, a partner who gains must compensate the partner who sacrifices, for the sacrificed share of goodwill.

Reason: Goodwill may be valued by the average profit method, the super profit method or the capitalisation method.

Bala and Lala were partners in a firm with capitals of ₹24,00,000 and ₹16,00,000. They admitted Mala as a new partner for $\frac{1}{3}$ share, for which Mala brings ₹20,00,000 as capital. There were Investments and an Investment Fluctuation Reserve appearing in the books of ₹2,50,000 and ₹50,000 respectively. Bala took over 40% of the Investments at ₹80,000, and the remaining Investments were valued at ₹1,10,000. By what amount will the Revaluation Account be affected by the above information?

Joey, Sam and Tex were partners sharing profits and losses in the ratio 5 : 3 : 2. With effect from 01 April, 2024, they decided to share future profits and losses in the ratio 2 : 1 : 1. For which of the following balances will Tex be credited at the time of reconstitution of the firm, if the firm decided to continue with the available accumulated profits and losses balances?

Under Section 52 of the Companies Act, 2013, Securities Premium can NOT be used for:

Alexa Ltd. purchased a building from Siri Ltd. for ₹8,00,000. The consideration was paid by issue of 6% Debentures of ₹100 each at a discount of 20%. The 6% Debentures Account is credited with:

Lotus Ltd. made the first and final call of ₹3 per share on 50,000 shares. A holder of 1,000 shares did not pay the call. Another shareholder, holding 500 shares, had already paid the call money along with the allotment money. The amount received in the bank on the first and final call is:

A company took a bank loan of ₹5,00,000 and issued 6,000, 10% Debentures of ₹100 each as collateral security, recording them through a Debenture Suspense Account. In the Balance Sheet, the Debenture Suspense Account is:

500 shares of ₹10 each, on which ₹6 per share had been paid, were forfeited. All of them were reissued at ₹11 per share as fully paid. The amounts credited to Capital Reserve and Securities Premium respectively are:

Mohit had applied for 900 shares and was allotted shares in the ratio 3 : 2. He had paid application money of ₹3 per share and could not pay the allotment money of ₹5 per share. The first and final call of ₹2 per share was not yet made by the company. His shares were forfeited. The following entry will be passed:

Here X, Y and Z are:

As per AS 3, which of the following is a cash equivalent?

The total assets of a company are ₹20,00,000 and its inventories are ₹3,00,000. In a common-size Balance Sheet, inventories will appear as:

Assertion: Gross Profit Ratio is always higher than Net Profit Ratio.

Reason: To calculate Net Profit, indirect expenses are subtracted from Gross Profit and indirect incomes are added to Gross Profit.

Provision for Tax for the years ended 31 March 2025 and 31 March 2024 was ₹3,00,000 and ₹2,80,000 respectively. During the year, tax paid was ₹2,50,000. Determine the amount of tax provided during the year.

A company's profit after tax is ₹3,00,000 and the tax rate is 25%. Its only borrowing is 10% Debentures of ₹10,00,000. The Interest Coverage Ratio is:

From the following information, calculate the Return on Investment (Return on Capital Employed):