CUET (UG) entrance exam Question Bank Solutions

The document which contains the terms of the agreement of partnership is called ______.

What are the contents of the partnership deed?

If the partnership deed is silent about the profit-sharing ratio, the profits and losses of the firm are to be shared in which ratio?

Consider the following statement.

Statement 1: "Partner is entitled to claim any interest on the amount of capital contributed by him in the firm as a matter of right".

Statement 2: "Interest can be allowed when it is expressly agreed to by the partners".

Mohan and Sham are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

"Mohan is an active partner. He wants a salary of Rs. 10,000 per year".

Mohan and Sham are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

"Sham had advanced a loan to the firm. He claims interest @10% per annum".

Mohan and Sham are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

"Mohan has contributed Rs. 20.000 and Shyam Rs. 50.000 as capital. Mohan wants an equal share in profits."

When Profit and loss account shows the losses. It is shown under which side of balance sheet?

In the absence of Partnership Deed, the profits of a firm are divided among the partners:

Assertion (A): A new partner can be admitted into a partnership firm with the consent of all the existing partners.

Reason (R): According to Section 31 of the Indian Partnership Act, 1932, a new partner shall not be introduced into a firm without the consent of all the existing partners, unless it is agreed otherwise by the partners in the partnership deed.

According to the Partnership Act, the relation of partnership arises from ______ and not from status.

The partner who provides capital and shares profit and loss in the partnership business but does not take an active part in the management is known as ______.

In the absence of a Partnership Deed, interest on a loan of a partner is allowed ______

When there is no partnership deed, the partners are entitled to which of the following?

Salary to staff is shown as ______ activity for finance company and ______ activity for non- finance company.

What is the nature of the Receipt and payment Account?

Life membership fees are treated as which type of receipt and is directly credited to the capital fund?

Write the steps in ascending order of Conversion of a Receipt and Payment Account into an Income and Expenditure Account:

(i) Adjusting the revenue receipts on the debit side to include outstanding incomes and incomes relating to the current year received earlier and to exclude amounts received in arrears or in advance.

(ii) identifying and showing non-cash expenses and losses on the debit side of the Income and Expenditure Account.

(iii) computing and showing profits/losses from trading and/or social activities on the credit/debit side of the Income and Expenditure Account.

(iv) Ascertaining the surplus or deficit as the dosing balance of the Income and Expenditure Account.

(v) adjusting revenue payments on the credit side.

How would you treat the following item in the case of a 'not-for-profit' organization?

"Tournament Fund Rs.40.000. Tournament Expenses Rs.14.000. Receipts from Tournament Rs.16.000."

How would you treat the following item in the case of a 'not-for-profit' organization?

"Prize Fund Rs.22.000. Interest on Prize fund Investments Rs.3.000. Prizes are given Rs.5.000. Prize fund Investments Rs.18.000.