Goodwill brought in cash by a new partner is distributed among old partners in their: MCQ with Answer and Explanation

Question
Goodwill brought in cash by a new partner is distributed among old partners in their:
A. Capital ratio
B. Old profit sharing ratio
C. New profit sharing ratio
D. Sacrificing ratio
Answer: Option D
Solution (By JKSSB Mock Tests)
Premium for goodwill compensates the old partners for the share of profit they sacrifice in favor of the new partner.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Under single entry, closing capital is ₹2,00,000; opening capital ₹1,50,000; drawings ₹20,000; additional capital ₹10,000. Profit for the year is:
A. ₹50,000
B. ₹60,000
C. ₹40,000
D. ₹70,000
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Correct Answer: Option B

Explanation:
Profit = Closing capital + Drawings - Opening capital - Additional capital = 2,00,000 + 20,000 - 1,50,000 - 10,000 = ₹60,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
A 'Cost Audit' is mandated for certain companies under:
A. SEBI regulations
B. Companies Act, 2013
C. Income Tax Act
D. GST Act
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Correct Answer: Option B

Explanation:
Cost audit is required for specified companies as per Section 148 of Companies Act, 2013.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'GST Refund' for zero-rated supplies without payment of tax (under bond/LUT) can be claimed for:
A. Unutilised input tax credit
B. Both output tax and input tax credit
C. No refund
D. Output tax only
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Correct Answer: Option A

Explanation:
When export is under bond/LUT without payment of IGST, refund of accumulated input tax credit can be claimed.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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