In a partnership, if a partner is guaranteed a minimum profit share, deficiency is borne by: MCQ with Answer and Explanation

Question
In a partnership, if a partner is guaranteed a minimum profit share, deficiency is borne by:
A. All partners equally
B. The firm
C. The partner giving guarantee
D. From reserves
Answer: Option C
Solution (By JKSSB Mock Tests)
If a partner guarantees a minimum profit to another, any shortfall is made good by the guaranteeing partner.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Advance tax must be paid in instalments during the financial year if the estimated tax liability exceeds:
A. Rs 1,00,000
B. Rs 10,000
C. Rs 50,000
D. Rs 5,000
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Correct Answer: Option B

Explanation:
Under Section 208, advance tax is mandatory if the estimated tax liability for the year is Rs 10,000 or more.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The main purpose of preparing a Trial Balance is:
A. To prepare final accounts
B. To detect frauds
C. To know the financial position
D. To check the arithmetical accuracy of ledger accounts
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Correct Answer: Option D

Explanation:
Trial balance ensures that total debits equal total credits, verifying posting and balancing accuracy.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'True and Fair View' is an overriding requirement of:
A. Financial statements
B. Tax returns
C. GST returns
D. Management accounts
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Correct Answer: Option A

Explanation:
Financial statements must present a true and fair view of the entity's financial position and performance.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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