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CUET Accountancy 2025 PYQs29 May Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 29 May Shift 2

Accounting

past year questions, Partnership, CUET Accountancy 2025 29 May Shift 2

Easy

common

Which of the following are shown under capital account in case capital of partner's are fixed?

(A) Fresh capital introduced

(B) Permanent capital withdrawn

(C) Interest on capital

(D) Amount of capital brought down from the previous year

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

Under the Fixed Capital Method, partners maintain two separate accounts:

  • Capital Account (remains fixed, shows only permanent changes)
  • Current Account (records all routine transactions)

Let me examine each item:

(A) Fresh capital introduced - This represents a permanent increase in capital. When a partner brings in additional capital, it changes the capital base permanently → Recorded in Capital Account ✓

(B) Permanent capital withdrawn - When capital is withdrawn permanently (not a temporary drawing), it reduces the fixed capital → Recorded in Capital Account ✓

(C) Interest on capital - This is a periodic adjustment/profit distribution item. Under fixed capital method, all adjustments like interest on capital, interest on drawings, salary, commission, share of profit/loss are recorded in Current Account, not Capital Account ✗

(D) Amount of capital brought down from the previous year - This is the opening balance of fixed capital that continues from the previous period → Appears in Capital Account ✓

The Capital Account under fixed capital method only records:

  • Initial capital introduced
  • Fresh capital introduced
  • Permanent withdrawals of capital
  • Opening and closing balances

All other adjustments (interest, salary, drawings, profit/loss share) go to the Current Account.

Therefore, items (A), (B) and (D) only appear in the Capital Account.

Correct Answer: Option 2

Related questions:

2025: 26 May Shift 2

Which of the following statements results in the reconstitution of a partnership firm :-

(A) Change in profit sharing ratio among partners.

(B) Admission of a new partner.

(C) Dissolution of a partnership firm.

(D) Dissolution of a partnership.

Choose the correct answer from the options given below:

2026: 19 May Shift 1

Which of the following is not a feature of partnership as per Partnership Act 1932 ?

2025: 27 May Shift 2

Identify the true statement in respect of a partnership Firm-

2022: 20 July Shift 1

From the following information, identify when goodwill is required to be calculated.

(a) Admission of a Partner

(b) Amalgamation of partnership firms

(c) Dissolution of partnership firm

(d) Retirement and Death of any partner

(e) Preparation of Balance sheet

Choose the correct answer from the options given below :

2025: 3 June Shift 1

Which of the following will lead to the Reconstitution of a partnership Firm?

(A) Admission of a new partner

(B) Change in the profit sharing ratio among the existing partners

(C) Retirement of an existing partner

(D) Death of a partner

Choose the correct answer from the options given below:

2025: 29 May Shift 2

The steps followed for calculating interest on drawing in the product method are.

(A) Calculate number of month for which interest is due on each drawing

(B) List down amount of drawing in decending order in a table..

(C) find the total of product and apply the formula to calculate interest on drawing.

(D) Calculate product for each drawing by multiplying amount and number of month.

Choose the correct answer from the options given below:

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