A 'Ledger Account' is balanced at the end of the accounting period to find: MCQ with Answer and Explanation

Question
A 'Ledger Account' is balanced at the end of the accounting period to find:
A. Gross profit
B. Net profit
C. Net balance (debit or credit)
D. Total purchases
Answer: Option C
Solution (By JKSSB Mock Tests)
Balancing an account means finding the difference between debit and credit totals.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Securities Transaction Tax' (STT) is levied on:
A. Bank deposits
B. Purchase and sale of shares and derivatives on recognized stock exchanges
C. Property transactions
D. Commodity transactions
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Correct Answer: Option B

Explanation:
STT is a direct tax on transactions in securities listed on recognized stock exchanges.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The Income Tax Act, 1961 classifies income under how many heads?
A. Seven
B. Four
C. Six
D. Five
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Correct Answer: Option D

Explanation:
Heads of income: Salary, House property, Business/profession, Capital gains, Other sources. Total five heads.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Hidden goodwill at the time of admission of a partner is calculated by comparing:
A. Super profit and normal rate of return
B. Average profits of last 5 years
C. Total capital based on new partner's share and actual total capital of all partners
D. Assets and outside liabilities
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Correct Answer: Option C

Explanation:
Hidden goodwill is the excess of the firm's inferred total capital (based on the new partner's contribution and share) over the actual combined capital balances.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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