In the absence of any agreement, partners share profits: MCQ with Answer and Explanation

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In the absence of any agreement, partners share profits:

A. In capital ratio

B. Based on age

C. Equally

D. Based on experience

Answer: Option C

Solution (By JKSSB Mock Tests)

Indian Partnership Act mandates equal sharing.

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

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Question #1

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S1: Under Ind AS 19, actuarial gains and losses on defined benefit plans are recognized in Other Comprehensive Income (OCI). S2: These actuarial gains and losses recognized in OCI are subsequently reclassified to the Profit and Loss account in future periods. Which statement(s) is/are correct?

A. Both S1 and S2

B. S2 only

C. S1 only

D. Neither S1 nor S2

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Correct Answer: Option C

Explanation:
Ind AS 19 requires remeasurements (actuarial gains/losses) of defined benefit plans to be recognized in OCI. S2 is incorrect because these amounts are recognized directly in retained earnings and are NOT reclassified (recycled) to P&L in subsequent periods.

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