In a partnership firm, a partner's current account is maintained to record: MCQ with Answer and Explanation

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In a partnership firm, a partner's current account is maintained to record:

A. Only loans to partners

B. Only capital contributions

C. Drawings, interest on capital, salary, share of profit, etc.

D. Only profits

Answer: Option C

Solution (By JKSSB Mock Tests)

Fixed capital method keeps capital account for initial capital and current account for all other adjustments.

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

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Question #1

PFMS is managed and implemented by:

A. NITI Aayog

B. Comptroller and Auditor General (CAG)

C. Reserve Bank of India (RBI)

D. Controller General of Accounts (CGA)

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Correct Answer: Option D

Explanation:
The Controller General of Accounts (CGA) under the Ministry of Finance administers the PFMS portal.

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Question #2

While preparing a bank reconciliation statement from the passbook overdraft balance, a cheque deposited but not yet collected by the bank should be:

A. Deducted

B. Added

C. Depends on amount

D. No effect

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Correct Answer: Option A

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.

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Question #3

The 'Gratuity' is a:

A. Defined benefit plan

B. Short-term benefit

C. Termination benefit

D. Defined contribution plan

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Correct Answer: Option A

Explanation:
Gratuity is a defined benefit plan as the employer's obligation is to provide a specific amount.

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

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