If a partner retires, the balance in his capital account is either paid off or transferred to his: MCQ with Answer and Explanation

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If a partner retires, the balance in his capital account is either paid off or transferred to his:

A. Drawings Account

B. Suspense Account

C. Loan Account

D. Current Account

Answer: Option C

Solution (By JKSSB Mock Tests)

If the firm cannot pay cash immediately, the retiring partner's dues are transferred to a Loan Account, carrying an interest of 6% p.a.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Internal Financial Controls' reporting is required under:

A. Section 143(3)(i) of Companies Act, 2013

B. GST Act

C. Income Tax Act

D. CARO 2020

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Correct Answer: Option A

Explanation:
Auditor's report must state whether the company has adequate internal financial controls system.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'Safeguards' against threats to independence may be:

A. Created by the profession, legislation, or within the client's organisation

B. Only regulatory

C. Only internal

D. None

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Correct Answer: Option A

Explanation:
Safeguards are measures that eliminate or reduce threats to an acceptable level.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

A sales book is meant to record:

A. Cash sales of goods

B. Sales of assets

C. All sales of goods

D. Credit sales of goods

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Correct Answer: Option D

Explanation:
Sales book records only credit sales of goods in which the trader deals.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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