CUET 2026 Accountancy MCQs Practice - CUET Accountancy

Accountancy MCQ Practice and Key Concepts

Partnership Fundamentals A partnership is a business arrangement where two or more individuals share profits and losses according to an agreed ratio. Essential features include mutual agency, sharing of profits and losses, and unlimited liability of partners. The partnership deed outlines specific...

Assertion (A): Shares that have been forfeited and reissued, gain (profit) if any, is shown under Reserve Capital.
Reason (R): Gain (profit) on the reissue of forfeited shares is transferred to Capital Reserve and shown under Reserves and Surplus in the Balance Sheet.

Assertion is False but Reason is True.

Ashima, Bhim and Chetan were partners sharing profit or loss in the ratio of 7 : 3 : 2. From Jan. 1,2019 they decided to share profit or loss in the ratio of 8 : 4 : 3. Due to change in the profit-loss sharing ratio, Bhim’s gain or sacrifice will be :

Gain <span id="MathJax-Element-13-Frame" class="MathJax" tabindex="0"><nobr><span id="MathJax-Span-61" class="math"><span id="MathJax-Span-62" class="mrow"><span id="MathJax-Span-63" class="mfrac"><span id="MathJax-Span-64" class="mn">1/</span><span id="MathJax-Span-65" class="mn">60</span></span></span></span></nobr></span>

A company may issue the shares

All of these

Interest on capital will be paid to the partners if provided for in the partnership deed but only out of:

Profits

What is a Sleeping Partner?

A sleeping partner provides capital and shares profits and losses but does not actively participate in business operations. They have unlimited liability.

How is self-generated goodwill treated in accounting as per AS 26?

As per Accounting Standard AS 26, self-generated goodwill is not accounted for as an asset. Goodwill should only be recorded in the books if it has been purchased and money or money's worth has been paid for it.