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

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In the absence of an agreement, what is the profit-sharing ratio among partners?

A. Capital Ratio

B. Equal

C. Time devoted to business

D. As decided by the senior partner

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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The 'Taxpayer's Charter' in India is a part of:

A. Income Tax Act

B. Companies Act

C. Finance Act, 2020

D. GST Act

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Correct Answer: Option C

Explanation:
Taxpayer's Charter was introduced as part of the Finance Act, 2020, outlining rights and obligations of taxpayers.

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Question #2

The 'Prudence Concept' is also known as:

A. Accrual

B. Consistency

C. Conservatism

D. Materiality

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Correct Answer: Option C

Explanation:
Prudence (conservatism) means anticipating no profits but providing for all possible losses.

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Question #3

Capital loss can be carried forward for:

A. 4 years

B. Indefinitely

C. 16 years

D. 8 years

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Correct Answer: Option D

Explanation:
Capital losses (short-term and long-term) can be carried forward for 8 years.

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