If the Trial Balance totals do not match, the difference is temporarily transferred to:
A. Capital Account
B. Suspense Account
C. Profit and Loss Account
D. Trading Account
Answer: Option B
Solution (By JKSSB Mock Tests)
When the Trial Balance disagrees, the difference is placed in a Suspense Account to allow the preparation of final accounts. The suspense account is cleared once the errors are located and rectified.
Explanation:
Under Ind AS 116, there is no classification for lessees; all leases are treated as finance leases (right-of-use asset and lease liability). For lessors, classification remains.
S1: In the absence of a partnership deed, a partner is entitled to a salary for participating in management. S2: In the absence of a partnership deed, interest on partner's loan is allowed at 6% p.a. Which statement(s) is/are correct?
Explanation:
The Partnership Act 1932 does not allow any partner to claim a salary for management participation if the deed is silent. However, it does allow interest on a partner's loan at 6% p.a. S1 is incorrect, S2 is correct.
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