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. Change in profit sharing ratio

B. Dissolution of the firm

C. Retirement or death of a partner

D. Admission of a partner

Answer: Option C

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

Which of the following is NOT a method of calculating depreciation?

A. LIFO Method

B. Sum of the Years' Digits Method

C. Straight Line Method

D. Diminishing Balance Method

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Correct Answer: Option A

Explanation:
LIFO (Last In, First Out) is an inventory valuation method, not a method for calculating depreciation.

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

Question #2

The 'Time of Supply' for goods under GST is earliest of:

A. Date of contract

B. Date of invoice or date of payment

C. Date of delivery only

D. Date of order

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Correct Answer: Option B

Explanation:
Time of supply is the earlier of invoice date or receipt of payment.

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

Question #3

Carriage inwards is shown on the:

A. Credit side of P&L Account

B. Asset side of Balance Sheet

C. Debit side of P&L Account

D. Debit side of Trading Account

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Correct Answer: Option D

Explanation:
Carriage inwards is the transportation cost of bringing raw materials/purchases to the factory, hence it's a direct expense charged to the Trading Account.

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