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Home Questions P2RR7Q969T
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

Match List I with List II

 List - I

 List - II

 (A) Normal Rate of Return

 (I) Total Assets - Outside Liabilities

 (B) Number of years purchase 

 (II) Usual return on capital employed

 (C) Capital Employed

 (III) Return over and above usual return in similar business

 (D) Super Profit

 (IV) Expected period for which returns are anticipated to accrue 

 Choose the correct answer from the options given below:

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is Option (3) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III).

 List - I

 List - II

 (A) Normal Rate of Return

 (II) Usual return on capital employed

 (B) Number of years purchase 

 (IV) Expected period for which returns are anticipated to accrue

 (C) Capital Employed

 (I) Total Assets - Outside Liabilities

 (D) Super Profit

 (III) Return over and above usual return in similar business

 

* Normal rate of return = Usual return on capital employed. It is the usual return which is earned by all the similar business.

* No. of years purchase = Expected years for which returns are anticipated to accrue. This the no of years which is expected by the firm in which they are going to earn same amount of profit due to the past profits.

* Capital employed = Total Assets - Outside Liabilities. It is the capital that is invested by partners in the firm.

* Super profit = Return over and above usual return in similar business. The excess of actual profits over the normal profits is termed as super profits.

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