In partnership, the guarantee of profit to a partner is given by: MCQ with Answer and Explanation

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In partnership, the guarantee of profit to a partner is given by:

A. The government

B. The auditor

C. The firm

D. The other partners

Answer: Option D

Solution (By JKSSB Mock Tests)

A guarantee of minimum profit to a partner is given by the other partners or the firm as a whole, and any deficiency is borne by the guarantor(s).

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

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Practice More Accountancy and Book Keeping Questions

Question #1

What is the golden rule for Personal Accounts?

A. Debit all expenses and losses, Credit all incomes and gains

B. Debit what comes in, Credit what goes out

C. Debit the owner, Credit the bank

D. Debit the receiver, Credit the giver

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Correct Answer: Option D

Explanation:
Personal accounts represent individuals, firms, or companies. The rule dictates debiting the person receiving the benefit and crediting the provider.

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

Question #2

S1: The sacrificing ratio is used during the admission of a new partner. S2: The gaining ratio is used during the retirement of a partner. Which statement(s) is/are correct?

A. Neither S1 nor S2

B. Both S1 and S2

C. S2 only

D. S1 only

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Correct Answer: Option B

Explanation:
The sacrificing ratio determines how much share existing partners give up to the new partner. The gaining ratio determines how much share continuing partners acquire from the retiring partner. Both are correct.

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Question #3

The 'Share Based Payments' (Ind AS 102) require equity-settled transactions to be measured at:

A. Nominal value

B. Fair value of goods/services received, or if not reliably determinable, fair value of equity instruments granted

C. Market price on grant date only

D. Intrinsic value

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Correct Answer: Option B

Explanation:
Equity-settled share-based payments are measured at fair value.

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

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