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 profits

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

C. Only loans to partners

D. Only capital contributions

Answer: Option B

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

The 'Budget' is presented in Parliament by:

A. President

B. Finance Minister

C. Prime Minister

D. Speaker

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Correct Answer: Option B

Explanation:
The Union Budget is presented by the Finance Minister.

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Question #2

'Dividend' can be paid out of:

A. Capital

B. Borrowed funds

C. Current year's profits or accumulated profits

D. Securities premium

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Correct Answer: Option C

Explanation:
Dividend is paid only out of profits.

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Question #3

S1: Audit in depth involves detailed examination of all transactions. S2: Audit in depth is also known as detailed audit. Which statement(s) is/are correct?

A. S2 only

B. Neither S1 nor S2

C. S1 only

D. Both S1 and S2

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Correct Answer: Option D

Explanation:
Audit in depth (or detailed audit) involves examining every single transaction and voucher in the books. It is typically done for small organizations or when fraud is suspected. Both statements are correct.

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