In the absence of a partnership deed, interest on drawings is: MCQ with Answer and Explanation

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In the absence of a partnership deed, interest on drawings is:

A. Not charged

B. Charged at 6% p.a.

C. Charged at bank rate

D. Charged at 10% p.a.

Answer: Option A

Solution (By JKSSB Mock Tests)

According to Partnership Act, no interest is charged on drawings unless agreed upon.

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

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Question #1

In government accounting, the 'Appropriation Audit' is conducted by:

A. Internal auditor

B. CAG

C. Tax auditor

D. Chartered accountant

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Correct Answer: Option B

Explanation:
CAG audits appropriation accounts to ensure expenditure is within the grants authorized by Parliament.

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Question #2

The 'Green Accounting' is also known as:

A. Inflation accounting

B. Environmental accounting

C. Social accounting

D. Human resource accounting

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Correct Answer: Option B

Explanation:
Green accounting incorporates environmental costs and benefits.

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Question #3

Overhead absorption rate is calculated as:

A. Actual overheads / Actual base

B. Budgeted overheads / Actual base

C. None

D. Budgeted overheads / Budgeted base

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Correct Answer: Option D

Explanation:
Overhead absorption rate is usually predetermined based on budgeted figures to absorb overheads into products.

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