CUET UG Accountancy / Book-Keeping Syllabus

Accountancy / Book-Keeping syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Accountancy / Book-Keeping in CUET UG, not a summary of it.

1. 1

   Accounting for Partnership Firms

   4 topics

   • Fundamentals of Partnership
     • Partnership deed and Profit & Loss Appropriation Account
     • Fixed and fluctuating capital accounts
     • Interest on capital and drawings
   • Reconstitution: Admission of a Partner
     • New profit-sharing ratio and sacrificing ratio
     • Goodwill valuation and treatment
     • Revaluation of assets and liabilities
   • Retirement and Death of a Partner
     • Gaining ratio and adjustment of goodwill
     • Settlement of retiring partner's account
   • Dissolution of Partnership Firm
     • Realisation account
     • Settlement of accounts
2. 2

   Accounting for Companies

   3 topics

   • Accounting for Share Capital
     • Issue of shares at par and premium
     • Forfeiture and reissue of shares
   • Accounting for Debentures
     • Issue of debentures
     • Redemption of debentures
   • Company Final Accounts Basics
     • Provisions and reserves
     • Bonus and rights issue concepts
3. 3

   Analysis of Financial Statements

   3 topics

   • Financial Statements of a Company
     • Balance sheet as per Schedule III
     • Statement of Profit and Loss
   • Tools of Analysis
     • Comparative and common-size statements
     • Accounting ratios
   • Cash Flow Statement
     • Operating, investing and financing activities
4. 4

   Computerised Accounting

   3 topics

   • Overview of Computerised Accounting System
     • Components and features
     • Manual vs computerised accounting
   • Accounting using Database and Spreadsheet
     • Database management essentials
     • Spreadsheet for payroll and reports
   • Accounting Software and Reports
     • Using tally and accounting packages
     • Generating accounting reports

Accountancy / Book-Keeping flashcards for CUET UG

23 of 51 cards from the Accountancy / Book-Keeping deck — real questions with worked answers.

1. In the absence of a partnership deed, at what rate is interest on a partner's loan to the firm allowed?

   6% per annum. It is a charge against profits and is payable even if the firm incurs a loss.

2. In the absence of a partnership deed, how are profits and losses shared among partners?

   Equally, irrespective of capital contribution. No interest on capital, no salary, and no interest on drawings are allowed.

3. What is the formula for interest on drawings when an equal amount is withdrawn at the beginning of each month for the whole year?

   Interest = Total Drawings x Rate x 6.5/12 (average period of 6.5 months).

4. What is the formula for interest on drawings when an equal amount is withdrawn at the end of each month for the whole year?

   Interest = Total Drawings x Rate x 5.5/12 (average period of 5.5 months).

5. What is the average period used for interest on drawings when an equal amount is withdrawn in the middle of each month?

   6 months, so Interest = Total Drawings x Rate x 6/12.

6. Distinguish between a fixed capital account and a fluctuating capital account in a partnership.

   Under the fixed method, capital stays unchanged and adjustments (interest, salary, drawings, profit) go to a separate Current Account. Under the fluctuating method, all adjustments are recorded in the single Capital Account, so its balance keeps changing.

7. What is the Profit and Loss Appropriation Account used for?

   To distribute net profit among partners by recording appropriations such as interest on capital, partners' salary/commission, transfer to reserve, and the share of divisible profit.

8. How is a guarantee of minimum profit to a partner treated, and who bears the deficiency?

   The guaranteed partner gets the higher of his actual share or the guaranteed amount. Any deficiency is borne by the guaranteeing partner(s) in their agreed ratio (or profit-sharing ratio if not specified).

9. What is the formula for the goodwill of a firm under the average profit method?

   Goodwill = Average Profit x Number of years' purchase. Average Profit = Total adjusted profits / Number of years.

10. What is the formula for goodwill under the super profit method?

    Super Profit = Average Profit - Normal Profit (Normal Profit = Capital Employed x Normal Rate of Return). Goodwill = Super Profit x Number of years' purchase.

11. What is the formula for goodwill under the capitalisation of super profit method?

    Goodwill = Super Profit x (100 / Normal Rate of Return).

12. What is the sacrificing ratio and how is it calculated?

    It is the proportion in which existing partners give up their share of profit for a new partner. Sacrificing Ratio = Old Ratio - New Ratio.

13. On the admission of a partner, how is the new partner's premium for goodwill (brought in cash) shared among old partners?

    It is credited to the old partners' capital accounts in their sacrificing ratio.

14. Why is a Revaluation Account prepared at the time of admission of a partner?

    To record changes in the value of assets and liabilities so that the resulting profit or loss on revaluation is shared by the OLD partners in their old profit-sharing ratio before the new partner joins.

15. How is the profit on a Revaluation Account treated?

    A profit (gain) on revaluation is credited to the old partners' capital accounts in their old profit-sharing ratio; a loss is debited to them in the same ratio.

16. How are accumulated reserves and undistributed profits treated on the admission of a partner?

    They are distributed among the old partners in their old profit-sharing ratio before admission, because they belong to the old partners.

17. What is the gaining ratio and when is it computed?

    It is the proportion in which the remaining partners acquire the outgoing partner's share. Gaining Ratio = New Ratio - Old Ratio. It is computed on retirement or death of a partner.

18. On a partner's retirement, in what ratio do the remaining partners compensate for goodwill?

    The remaining (gaining) partners' capital accounts are debited in their gaining ratio, and the retiring partner's capital account is credited with his share of goodwill.

19. How is a deceased partner's share of profit up to the date of death usually calculated?

    On the basis of time or sales/turnover, using either last year's profit or average profit, proportionate to the period from the start of the year to the date of death.

20. Where is the amount due to a deceased partner transferred?

    To the Executor's Account (Deceased Partner's Executor's Account), which is then paid in cash or in installments with interest.

21. What is the difference between dissolution of partnership and dissolution of a firm?

    Dissolution of partnership changes the existing relationship (e.g., admission/retirement) while the firm continues. Dissolution of the firm means the business closes completely, with assets realised and liabilities paid.

22. What account is prepared to close the books on dissolution of a firm, and what is its purpose?

    The Realisation Account. It records the sale of assets and payment of liabilities to determine the profit or loss on realisation.

23. State the order of payment of liabilities on dissolution of a firm under the Indian Partnership Act.

    1) Pay outside creditors first; 2) repay partners' loans/advances; 3) repay partners' capital; 4) distribute any surplus among partners in their profit-sharing ratio.

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