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CUET Accountancy 2025 PYQs2 June Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 2 June Shift 2

Accounting

past year questions, Partnership, CUET Accountancy 2025 2 June Shift 2

Medium

common

Identify the correct statement from the given below :-

Solution

✅ Correct Option: 2

Partners' Current Account can have either a credit balance or a debit balance depending on the transactions recorded in it.

The current account records:

  • Credit side: Share of profit, Interest on capital, Salary, Commission
  • Debit side: Drawings, Interest on drawings, Share of loss

When Credit balance exists:

The account shows that the firm owes money to the partner. This is a liability for the firm.

→ Shown on Liabilities side of Balance Sheet

When Debit balance exists:

The account shows that the partner owes money to the firm. This is an asset for the firm.

→ Shown on Assets side of Balance Sheet

This commonly happens when a partner's drawings exceed their share of profits and other credits.

Therefore, Partners' Current Account will either be shown in Assets side or Liabilities side of the Balance Sheet depending on whether it has a debit balance or credit balance respectively.

Option 2 is the correct statement as it accounts for both possible scenarios.

Related questions:

2025: 26 May Shift 2

The Profit and Loss Appropriation Account is merely an extension of the Profit and Loss Account of the firm, which, among the following, is not shown in the Profit and Loss Appropriation Account?

2026: 24 May Shift 1

By virtue of section ___________, the Central Government is empowered to prescribe a maximum number of partners in a firm.

2025: 31 May Shift 1

Contents of the Partnership Deed does not include

2025: 22 May Shift 1

Yadu, Madhu and Vidu are partners, sharing profit and losses in the ratio of 2:2:1. Their fixed capitals on April 01, 2018 were:

Yadu Rs. 5,00,000, Madhu Rs. 4,00,000 and Vidu is 3,50,000.

As per the partnership deed, partners are entitled to interest on capital @5% p.a. and Yadu has to be paid a salary of Rs. 2000 per month. The net loss of the firm as per profit and loss account for the year ending March 31, 2019, amounted to Rs. 75,000. On the basis of the profit and loss appropriation account, Partners' distribution of loss would be:

2025: 30 May Shift 2

Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. What will be the amount of interest if the amount is withdrawn at the beginning of each month and rate of interest on drawings is 8% per annum?

2025: 3 June Shift 2

Neha contributed Rs. 30,000 and Solani Rs. 90,000 as capital. What will be Saloni's share in profits if the partnership agreement is silent?

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