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

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

A. Admission of a partner

B. Dissolution of the firm

C. Retirement of a partner

D. Death of a partner

Answer: Option A

Solution (By JKSSB Mock Tests)

The sacrificing ratio is the ratio in which existing partners give up their share of profit in favor of the new partner upon admission.

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Question #1

The 'Dividend' is paid on:

A. Paid-up capital

B. Issued capital

C. Called-up capital

D. Authorised capital

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Correct Answer: Option A

Explanation:
Dividend is paid on the paid-up share capital, i.e., the amount actually received from shareholders.

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Question #2

A 'Provision' is recognized when:

A. There is a present obligation, probable outflow, reliable estimate

B. For all future losses

C. Management decides

D. It is certain

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Correct Answer: Option A

Explanation:
As per AS 29, provision is recognized when these three conditions are met.

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Question #3

Tax Deduction at Source (TDS) on salary is governed by:

A. Section 194C

B. Section 80C

C. Section 192 of Income Tax Act

D. Section 10

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Correct Answer: Option C

Explanation:
TDS on salary is covered under Section 192.

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

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