If a partner is guaranteed a minimum profit of ₹50,000 and his share of profit is ₹40,000, the deficiency of ₹10,000 will be borne by: MCQ with Answer and Explanation
Explanation:
Starting with overdraft as per passbook, a deposit in transit increases the overdraft in passbook (makes it less negative). To reconcile to cash book overdraft, we deduct it because the cash book already recorded it and shows a lower overdraft. So deduct.
Assertion (A): Under Ind AS 41, biological assets are measured at fair value less costs to sell. Reason (R): This is because biological transformation makes historical cost accounting less relevant for these assets. Choose the correct option.
A.A is false but R is true
B.A is true but R is false
C.Both A and R are true and R is the correct explanation of A
D.Both A and R are true but R is NOT the correct explanation of A
Explanation:
Ind AS 41 requires biological assets to be measured at fair value less costs to sell. This is because biological growth, degeneration, and production (transformation) make historical cost less meaningful. R correctly explains A.
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