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CUET Accountancy 2025 PYQs15 May Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 15 May Shift 2

Accounting

past year questions, Partnership, CUET Accountancy 2025 15 May Shift 2

Medium

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(B) Permanent capital withdrawn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 Account method, partners maintain two separate accounts:

  • Capital Account → Records only permanent changes in capital
  • Current Account → Records all other adjustments and periodic items

Analyzing each item:

(A) Fresh capital introduced → This represents a permanent addition to the capital. It increases the fixed capital permanently and is recorded in the Capital Account. ✓

(B) Permanent capital withdrawn → This represents a permanent reduction in capital. It decreases the fixed capital permanently and is recorded in the Capital Account. ✓

(C) Interest on capital → This is a periodic income/adjustment for the partner, not a permanent change in capital. Under the fixed capital method, it is recorded in the Current Account, not the Capital Account. ✗

(D) Amount of capital brought down from the previous year → This is the opening balance of capital and naturally appears in the Capital Account. ✓

The Capital Account under fixed capital method shows only permanent capital transactions (items A, B, D), while all periodic adjustments like interest on capital, drawings (except permanent withdrawals), and profit/loss are recorded in the Current Account.

Correct Answer: Option 2 (A), (B) and (D) only

Related questions:

2026: 6 June Shift 1

Out of the following statements, which are correct?

(A) In the absence of partnership deed, no partner is entitled to get salary or other remuneration.

(B) If a partner withdraws fixed amount at the end of each month, then interest on drawings will be calculated for an average period of 5.5 months.

(C) If the partnership deed provides for interest on capital but the firm does not have sufficient profit, then the interest will be paid to the extent of available profit in the ratio of interest on capital.

(D) If a partner is admitted into a firm with a guarantee of certain profit, then the deficiency of profit (if any) shall be borne by the old partners in their capital ratio.

2025: 29 May Shift 2

Himanshu withdrew Rs.2,500 at the end of each month. The partnership deed provides for charging of interest on drawings @ 12% p.a. Calculate interest on Himanshu's drawings for the year ended March 31, 2017.

2025: 2 June Shift 2

Match List-I with List-II

List-IList-II
(Different accounts. )(Related transaction.)
(A) profit and loss account.(I) dissolution of partnership.
(B) profit and loss appropriation account.(II) dissolution of firm.
(C) revaluation account(III) interest on loan to partner.
(D) realization account.(IV) transfer to reserve.

Choose the correct answer from the options given below:

2026: 13 May Shift 1

Consider the below given statements related to the partnership and select the correct statements :-

(A) Partners may contribute capital in proportion to profit-sharing ratio.

(B) Partners must not get any interest on the loan provided by him to the firm in the absence of partnership deed.

(C) A partner cannot transfer his share without consent of other partners.

(D) Partners must contribute capital only in cash.

Choose the correct combination of statements from the options given below:

2025: 15 May Shift 1

Arrange the following in a sequence, in which they will be utilize for the payment of losses:

(A) Out of capital of partners.

(B) Out of profits.

(C) By the partners individually in their profit sharing ratio.

Choose the correct answer from the options given below:

2025: 3 June Shift 2

Match List-I with List-II

List-IList-II
(A) Bank (fresh capital introduced)(I) Debit side of Partner's Current Account
(B) Interest on drawings(II) Debit side of Partner's Capital Account
(C) Bank (permanent withdrawal of capital)(III) Credit side of Partner's Current Account
(D) Commission(IV) Credit side of Partner's Capital Account

Choose the correct answer from the options given below:

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