CUET UG Categorised PYQ Accountancy Unit 7 -

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CUET UG Categorised PYQ Accountancy Unit 7

Accountancy

⏱️ 30 Minutes

❓ 13 Questions

📅 2022, 2023, 2024 & 2025

✍️ Long Answers

📌 Answers are locked once submitted — results and explanations appear at the end.

CUET UG Categorised PYQ Accountancy Unit 7

1 / 13

QUESTION 1 OF 13

Match List I with List II:

LIST I	LIST II
A. Fixed assets	I. Short term provisions
B. Current Assets	II. Money received against share warrants
C. Current Liabilities	III. Non current investment
D. Shareholder's Funds	IV. Inventories

Answer Review

1 Match List I with List II:

LIST I	LIST II
A. Fixed assets	I. Short term provisions
B. Current Assets	II. Money received against share warrants
C. Current Liabilities	III. Non current investment
D. Shareholder's Funds	IV. Inventories

A A-IV, B-I, C-II, D-III

B A-III, B-IV, C-I, D-II

C A-I, B-IV, C-II, D-III

D A-II, B-I, C-IV, D-III

💡 Short Explanation

Fixed Assets (now Property, Plant & Equipment and Intangible Assets) are non-current. Inventories are part of current assets. Short term provisions fall under current liabilities. Money received against share warrants is a component of Shareholders' Funds.

✅ Correct Answer Explanation

(Detailed) According to Schedule III of the Companies Act, 2013: • A-III: Non-current investments are classified under the broader category of Non-current Assets (formerly under Fixed Assets heads in older formats/groupings). • B-IV: Inventories are assets intended to be sold or consumed within the operating cycle, hence Current Assets. • C-I: Provisions expected to be settled within 12 months are Current Liabilities. • D-II: Shareholders' Funds include Share Capital, Reserves & Surplus, and Money received against share warrants.

❓ Why Other Options Are Incorrect

A) A-IV, B-I, C-II, D-III
Incorrectly matches Fixed Assets with Inventories and Current Assets with Provisions.
C) A-I, B-IV, C-II, D-III
Incorrectly matches Fixed Assets with Short term provisions.
D) A-II, B-I, C-IV, D-III
Incorrectly matches Shareholders' Funds items with Fixed Assets.

🎯 Strategy

used

Option Grouping

Option A → A-IV is incorrect (Inventories are not Fixed).
Option B → All pairs align with Schedule III classification.
Option C → A-I is incorrect.

Final Answer → B

🧠 Memory Trick

C-I: Current assets = Inventories.

📚 Class XII, Accountancy Part II, Chapter 3: Analysis of Financial Statements, Section: Form and Content of Balance Sheet.

2 Match List I with List II

List I	List II
A. Revaluation Reserve	IV. Reserve and Surplus
B. Issued Capital	I. Share Capital
C. Discount on issue of debentures	II. Other Non-current Assets
D. Loose tool	III. Inventories

A A-I, B-II, C-III, D-IV

B A-II, B-III, C-IV, D-I

C A-III, B-IV, C-I, D-II

D A-IV, B-I, C-II, D-III

💡 Short Explanation

Revaluation Reserve → Reserve and Surplus. Issued Capital → Share Capital. Discount on Debentures → Other Non-current Assets. Loose Tools → Inventories.

✅ Correct Answer Explanation

(Detailed) Under Schedule III: Revaluation Reserve → Reserve and Surplus. Issued Capital → Share Capital. Discount on Issue of Debentures → Other Non-current Assets. Loose Tools → Inventories. Therefore: A-IV, B-I, C-II, D-III

❓ Why Other Options Are Incorrect

They incorrectly classify reserves, capital, inventories and non-current assets.

🎯 Strategy

used

Substitution (Matching)
A → IV
B → I
C → II
D → III

🧠 Memory Trick

L-I = Loose Tools = Inventory

📚 Class 12, Accountancy Part 2: Financial Statement Presentation.

3 Non current Assets includes -
A. Capital work-in-Progress
B. Deferred tax Assets (net)
C. Loose tools
D. Railway sidings
E. Inventory
Choose the correct answer from the options given below: (PYQ 2023)

A A, B and C only

B A, C and E only

C A, B and D only

D B, C and E only

💡 Short Explanation

Non-current assets are long-term assets. Inventory and Loose Tools are current assets. CWIP, Deferred Tax Assets and Railway Sidings are non-current.

✅ Correct Answer Explanation

(Detailed) Non-current assets include: Capital Work-in-Progress (A) Deferred Tax Assets (B) Railway Sidings (D) Inventory and Loose Tools are classified under Current Assets. Therefore: A, B and D only.

❓ Why Other Options Are Incorrect

A) Includes Loose Tools.
B) Includes Inventory and Loose Tools.
D) Includes current assets.

🎯 Strategy

used

Option Grouping
Current Assets → Inventory, Loose Tools
Non-current Assets → CWIP, Deferred Tax, Railway Sidings

🧠 Memory Trick

ILD = Current Inventory and Loose tools stay current.

📚 Class 12, Accountancy Part 2, Chapter 3: Financial Statement Analysis.

4 Match List I with List II

List I	List II
A. Capital Reserve	I. Current Assets
B. Inventories	II. Non-Current Liabilities
C. 8% Debentures	III. Current Liabilities
D. Provision for Tax	IV. Reserve and Surplus

A A-IV, B-I, C-II, D-III

B A-IV, B-II, C-III, D-I

C A-III, B-I, C-IV, D-II

D A-III, B-IV, C-II, D-I

💡 Short Explanation

Capital Reserve forms part of Reserves and Surplus. Inventories are Current Assets. Debentures are Non-Current Liabilities. Provision for Tax is a Current Liability.

✅ Correct Answer Explanation

(Detailed) → A-IV: Capital Reserve appears under Reserves and Surplus. → B-I: Inventories are expected to be sold within the operating cycle and are Current Assets. → C-II: Debentures are long-term borrowings and are classified as Non-Current Liabilities. → D-III: Provision for Tax is generally payable within the current period and is shown under Current Liabilities. Thus: A-IV, B-I, C-II, D-III.

❓ Why Other Options Are Incorrect

B) Places Inventories under Non-Current Liabilities.
C) Places Capital Reserve under Current Liabilities.
D) Misclassifies Capital Reserve and Provision for Tax.

🎯 Strategy

used

Option Grouping
Reserve → Reserve & Surplus.
Inventory → Current Asset.
Debenture → Long-Term Liability.

🧠 Memory Trick

Tax Provision → Current Liability

📚 Class XII, Accountancy Part II, Chapter 1: Financial Statements of a Company.

5 Which of the following items are part of Intangible Non-Current Assets?
A. Patents
B. Furniture
C. Statement of Profit & Loss A/c (Dr)
D. Goodwill
E. Trademark
Choose the correct answer from the options given below: (PYQ 2023)

A A, B and C only

B A, C and D only

C A, D and E only

D C, D and E only

💡 Short Explanation

Intangible assets have no physical existence. Goodwill, Patents and Trademarks are intangible. Furniture is tangible.

✅ Correct Answer Explanation

(Detailed) Intangible Non-Current Assets include: Patents (A) Goodwill (D) Trademark (E) These assets provide economic benefits without physical form. Furniture is a tangible asset and Statement of Profit & Loss (Dr) represents accumulated losses, not an asset. Hence: A, D and E only.

❓ Why Other Options Are Incorrect

A) Includes Furniture and P&L (Dr).
B) Includes P&L (Dr).
D) Includes P&L (Dr).

🎯 Strategy

used

Elimination
Remove:
Furniture = Tangible Asset.
P&L (Dr) = Loss.

🧠 Memory Trick

Goodwill – Patents – Trademark

📚 Class XII, Accountancy Part II, Chapter 1: Financial Statements of a Company.

6 The following are the items appearing in Equities and Liabilities side of Balance Sheet:
A. Deferred Tax Assets (Net)
B. Reserve and Surplus
C. Deferred Tax Liabilities (Net)
D. Long Term Borrowings
E. Long Term Loans and Advances
Choose the correct answer from the options given below: (PYQ 2023)

A A, B and C only

B B, C and D only

C B, C, D and E only

D A, D and E only

💡 Short Explanation

Reserve and Surplus belongs to Equity. Deferred Tax Liability and Long-Term Borrowings belong to Liabilities. Deferred Tax Asset and Long-Term Loans & Advances belong to Assets.

✅ Correct Answer Explanation

(Detailed) Items appearing under Equity and Liabilities side are: • Reserve and Surplus (B) • Deferred Tax Liabilities (C) • Long-Term Borrowings (D) Deferred Tax Assets and Long-Term Loans & Advances appear on the Asset side. Therefore: B, C and D only.

❓ Why Other Options Are Incorrect

A) Includes Deferred Tax Assets.
C) Includes Long-Term Loans & Advances.
D) Includes two Asset-side items.

🎯 Strategy

Used

Classification
Assets → A, E
Liabilities/Equity → B, C, D

🧠 Memory Trick

Borrowings & Liabilities stay together.

📚 Class XII, Accountancy Part II, Chapter 1: Presentation of Balance Sheet.

7 Arrange the following in the context of Statement of Profit and Loss.
A. Other Income
B. Expenses
C. Total Revenue
D. Revenue from Operations
E. Profit before Tax and Extraordinary Item
Choose the correct answer from the options given below: (PYQ 2023)

A A, D, C, B, E

B D, A, C, B, E

C C, B, E, D, A

D D, A, E, B, C

💡 Short Explanation

Revenue from Operations is recorded first. Other Income is added. Together they form Total Revenue. Expenses are deducted to arrive at Profit.

✅ Correct Answer Explanation

(Detailed) As per Schedule III format of Statement of Profit and Loss: • Revenue from Operations (D) • Other Income (A) • Total Revenue (C) • Expenses (B) • Profit before Tax and Extraordinary Items (E) Thus, the correct sequence is: D → A → C → B → E.

❓ Why Other Options Are Incorrect

A) A, D, C, B, E
Other Income cannot precede Revenue from Operations.
C) C, B, E, D, A
Begins with Total Revenue before calculating it.
D) D, A, E, B, C
Profit cannot be calculated before deducting expenses.

🎯 Strategy

Used

Chronological Sequencing
Revenue → Other Income → Total Revenue → Expenses → Profit

🧠 Memory Trick

Revenue → Other Income → Total Revenue → Expenses → Profit

📚 Class XII, Accountancy Part II, Chapter 1: Financial Statements of a Company.

8 Match List-I with List-II.

List-I	List-II
A. Capital Reserve	I. Cash and Cash Equivalent
B. Call in Advance	II. Intangible Fixed Assets
C. Licence and Franchise	III. Reserve and Surplus
D. Marketable Securities	IV. Other Current Liabilities

A (A)- (III), (B) - (IV), (C) - (II), (D) - (I)

B (A)-(I), (B) - (II), (C) - (III), (D) - (IV)

C (A)-(IV), (B) - (III), (C) - (II), (D) - (I)

D (A)-(I), (B) - (III), (C) - (IV), (D) - (II)

💡 Short Explanation

Capital Reserve is a part of shareholders' funds. Calls in Advance is money received but not yet due. Licences are intangible assets. Marketable Securities are highly liquid near-cash assets.

✅ Correct Answer Explanation

(Detailed) Under Schedule III of the Companies Act, 2013: • Capital Reserve → Reserves and Surplus. • Calls in Advance → Other Current Liabilities. • Licence and Franchise → Intangible Fixed Assets. • Marketable Securities → Cash and Cash Equivalents.

❓ Why Other Options Are Incorrect

B) Incorrectly matches Capital Reserve with Cash.
C) Incorrectly matches Capital Reserve with Current Liabilities.
D) Incorrectly matches Marketable Securities with Intangible Assets.

🎯 Strategy

Used

Elimination
Licence = Intangible Asset
Capital Reserve = Reserves & Surplus
Marketable Securities = Cash Equivalent

🧠 Memory Trick

Licence = Look but can't touch

📚 Class 12, Accountancy Part II, Chapter 3: Analysis of Financial Statements.

9 Balance Sheet provides information about financial position of the enterprise: (PYQ 2024)

A At a particular date

B Over a period of time

C For a period of time since its inception

D For last 5 years

💡 Short Explanation

A Balance Sheet is a snapshot. It shows assets, liabilities and equity on a specific date. It does not cover a period.

✅ Correct Answer Explanation

(Detailed) A Balance Sheet presents the financial position of a business as on a particular date. It reports Assets, Liabilities and Shareholders' Equity existing at that point in time. Unlike the Profit and Loss Account, which covers a period, the Balance Sheet reflects the position on a single date.

❓ Why Other Options Are Incorrect

B) Describes Profit and Loss Account or Cash Flow Statement.
C) Financial statements are prepared periodically, not since inception.
D) Refers to trend analysis, not a Balance Sheet.

🎯 Strategy

Used

Contextual/Tonal Matching
"As on" = Balance Sheet.
"For the year ended" = Profit and Loss Account.

🧠 Memory Trick

Balance Sheet = Snapshot; P&L = Movie

📚 Class 11, Accountancy Part II, Chapter 9: Financial Statements, Section: Balance Sheet.

10 Identify the correct order of showing following current assets in Balance Sheet of a company:
(A) Other Current Assets
(B) Inventories
(C) Current Investments
(D) Trade Receivables
(E) Cash and Cash Equivalents
Choose the correct answer from the options given below: (PYQ 2024)

A (A), (B), (C), (D), (E)

B (B), (C), (D), (E), (A)

C (C), (B), (D), (E), (A)

D (D), (E), (A), (B), (C)

💡 Short Explanation

Schedule III prescribes a specific order. Current Investments are shown first. Other Current Assets appear last.

✅ Correct Answer Explanation

(Detailed) According to Schedule III of the Companies Act, Current Assets are presented as: • (C) Current Investments • (B) Inventories • (D) Trade Receivables • (E) Cash and Cash Equivalents • (A) Other Current Assets Hence, the correct order is: (C), (B), (D), (E), (A)

❓ Why Other Options Are Incorrect

A) (A), (B), (C), (D), (E)
Starts with Other Current Assets, which are shown last.
B) (B), (C), (D), (E), (A)
Places Inventories before Current Investments.
D) (D), (E), (A), (B), (C)
Does not follow Schedule III format.

🎯 Strategy

Used

Option Grouping
Investments come before Inventories.
Other Current Assets come last.

🧠 Memory Trick

Investments → Inventories → Trade Receivables → Cash → Other Assets

📚 Class 12, Accountancy Part II, Chapter 3: Analysis of Financial Statements, Section: Format of Balance Sheet.

11 Which item is shown under "Long-term Borrowings" in the Balance Sheet? (PYQ 2025)

A Trade payables

B Public deposits

C Short-term loans

D Unpaid dividends

💡 Short Explanation

Long-term borrowings are non-current liabilities. Public deposits are usually taken for periods exceeding 12 months. Others are current liabilities.

✅ Correct Answer Explanation

(Detailed) Under Schedule III of the Companies Act, 2013, "Long-term Borrowings" are part of Non-Current Liabilities. Public Deposits are amounts raised from the public for long durations and are classified here. In contrast, Trade Payables, Short-term loans, and Unpaid dividends are all settled within 12 months (or the operating cycle) and are classified as Current Liabilities.

❓ Why Other Options Are Incorrect

A) Trade payables
Incorrect. These are Current Liabilities under the sub-head "Trade Payables".
C) Short-term loans
Incorrect. These are Current Liabilities under the sub-head "Short-term Borrowings".
D) Unpaid dividends
Incorrect. These are Current Liabilities under the sub-head "Other Current Liabilities".

🎯 Strategy

Used

Contextual Matching
Long-term vs. Short-term.
Public deposits are the only item here that typically lasts more than a year.
Final Answer → Option B.

🧠 Memory Trick

"Public = Plenty of time" (Long-term).

📚 Class 12, Accountancy Part-II, Chapter 1: Financial Statements of a Company (Section: Shareholder's Funds and Liabilities).

12 Arrange the following in correct sequence according to the form and content of Statement of Profit and Loss:
(A) Employee Benefit Expenses
(B) Tax provided
(C) Revenue from Operations
(D) Purchase of Stock in Trade
(E) Dividend Income
Choose the correct answer from the options given below: (PYQ 2025)

A (C), (E), (D), (A), (B)

B (C), (D), (E), (B), (A)

C (C), (D), (E), (A), (B)

D (C), (A), (B), (D), (E)

💡 Short Explanation

Format follows Schedule III of the Companies Act. Revenue/Income comes first. Expenses follow. Tax is the final deduction.

✅ Correct Answer Explanation

(Detailed) The Statement of Profit and Loss follows this standard order: I. Revenue from Operations (C) II. Other Income (E) • Dividend Income falls under Other Income. III. Total Revenue (I + II) IV. Expenses: • Purchase of Stock in Trade (D) • Employee Benefit Expenses (A) V. Profit before Tax VI. Tax Expense (B) • Tax is the final item in this list.

❓ Why Other Options Are Incorrect

B) (C), (D), (E), (B), (A)
Incorrect. Places purchases before Other Income.
C) (C), (D), (E), (A), (B)
Incorrect. Places Other Income after expenses.
D) (C), (A), (B), (D), (E)
Incorrect. Tax cannot be calculated before all revenues and expenses are considered.

🎯 Strategy

Used

Elimination
Revenue (C) must be first.
Tax (B) must be last.
Final Answer → Only Option A maintains the correct Schedule III flow.

🧠 Memory Trick

"Earn it (C, E), Spend it (D, A), Tax it (B)."

📚 Class 12, Accountancy Part-II, Chapter 1: Financial Statements of a Company.

13 Match List I with List II:

LIST - I	LIST - II
A. Prepaid insurance	I. Share Capital
B. Unclaimed Dividend	II. Intangible Assets
C. Patent	III. Other Current Assets
D. Calls in Arrears	IV. Other Current Liabilities

A A-II, B-III, C-IV, D-I

B A-III, B-II, C-IV, D-I

C A-IV, B-III, C-I, D-II

D A-III, B-IV, C-II, D-I

💡 Short Explanation

Prepaid items are current assets not yet consumed. Unclaimed dividends are debts the company must pay shortly. Patents are non-physical fixed assets. Calls in Arrears is a deduction from Share Capital.

✅ Correct Answer Explanation

(Detailed) (A) Prepaid Insurance → (III) • Classified under Other Current Assets. (B) Unclaimed Dividend → (IV) • Since the company owes this amount to shareholders, it is shown under Other Current Liabilities. (C) Patent → (II) • A non-physical asset and therefore classified as an Intangible Asset. (D) Calls in Arrears → (I) • Shown as a deduction from Subscribed Capital under Share Capital. Therefore: A-III, B-IV, C-II, D-I

❓ Why Other Options Are Incorrect

A) A-II, B-III, C-IV, D-I
Incorrect. Prepaid Insurance is not an Intangible Asset.
B) A-III, B-II, C-IV, D-I
Incorrect. Unclaimed Dividend is not an Intangible Asset.
C) A-IV, B-III, C-I, D-II
Incorrect. Prepaid Insurance is not a Liability.

🎯 Strategy

Used

Elimination
Patent = Intangible Asset → C-II.
Prepaid Insurance = Asset → A-III.
Calls in Arrears = Deduction from Share Capital → D-I.
Final Answer → Option D.

🧠 Memory Trick

"Patent = Intangible; Arrears = Capital Sub."

📚 Class 12, Accountancy Part-II, Chapter 1: Financial Statements of a Company.

CUET UG Categorised PYQ Accountancy Unit 7

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Answer Review