In partnership, the 'Gaining Ratio' is calculated during: MCQ with Answer and Explanation

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In partnership, the 'Gaining Ratio' is calculated during:

A. Dissolution of the firm

B. Retirement or death of a partner

C. Change in profit sharing ratio

D. Admission of a partner

Answer: Option B

Solution (By JKSSB Mock Tests)

The gaining ratio is the ratio in which the continuing partners acquire the share of the retiring or deceased partner.

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

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Question #1

The 'Related Party Disclosures' (Ind AS 24) requires disclosure of:

A. Only borrowing

B. Only parent-subsidiary

C. Key management compensation, related party relationships, and transactions

D. Only sales transactions

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Correct Answer: Option C

Explanation:
Ind AS 24 requires comprehensive disclosures.

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Question #2

The 'Updated Return' (ITR-U) can be filed within:

A. 36 months

B. 12 months from the end of the relevant assessment year

C. 24 months from the end of the relevant assessment year

D. No time limit

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Correct Answer: Option C

Explanation:
Section 139(8A) allows filing updated return within 24 months from end of assessment year, with additional tax.

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Question #3

S1: In the Single Entry System, a Statement of Affairs is prepared instead of a Balance Sheet. S2: The Statement of Affairs is prepared to ascertain the profit or loss. Which statement(s) is/are correct?

A. S1 only

B. S2 only

C. Both S1 and S2

D. Neither S1 nor S2

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Correct Answer: Option A

Explanation:
The Single Entry System is incomplete, so a Statement of Affairs (similar to a Balance Sheet) is prepared to find the capital at a given date. Profit or loss is ascertained by comparing opening and closing capital, not directly from the Statement of Affairs. S1 is correct, S2 is incorrect.

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