In the absence of an agreement, what is the profit-sharing ratio among partners? MCQ with Answer and Explanation

Question
In the absence of an agreement, what is the profit-sharing ratio among partners?
A. Time devoted to business
B. Equal
C. As decided by the senior partner
D. Capital Ratio
Answer: Option B
Solution (By JKSSB Mock Tests)
Under the Indian Partnership Act, 1932, if the deed is silent, all partners share profits and losses equally.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'Analytical Procedures' are required:
A. At planning, as substantive procedures, and at final review stage
B. Never
C. Only at planning stage
D. Only as substantive
Discuss
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Correct Answer: Option A

Explanation:
SA 520 mandates analytical procedures at these stages.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Interest on capital allowed to a partner is debited to:
A. Profit & Loss Appropriation Account
B. Suspense Account
C. Interest Account
D. Partner's Capital Account
Discuss
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Correct Answer: Option A

Explanation:
Interest on capital is an appropriation of profit, thus debited to the P&L Appropriation Account and credited to the Partner's Capital Account.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Revenue Recognition' under Ind AS 115 is based on:
A. Invoice issuance
B. Receipt of cash
C. Transfer of risks and rewards
D. Transfer of control of goods or services to the customer
Discuss
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Correct Answer: Option D

Explanation:
Ind AS 115 uses a five-step model based on transfer of control.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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