Interest on partners' capital is: MCQ with Answer and Explanation

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Interest on partners' capital is:

A. An appropriation of profit

B. A charge against profit

C. Always 6%

D. Not allowed

Answer: Option A

Solution (By JKSSB Mock Tests)

Interest on capital, when deed provides, is an appropriation of profit, not a charge.

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

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Question #1

The 'HSN Code' under GST is used for:

A. Both A and C

B. Identifying the buyer

C. Identifying the type of goods

D. Tax rate determination

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Correct Answer: Option A

Explanation:
HSN (Harmonized System of Nomenclature) code classifies goods for tax rates.

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

Question #2

An audit that is conducted between two annual audits is called:

A. Final audit

B. Interim audit

C. Statutory audit

D. Continuous audit

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Correct Answer: Option B

Explanation:
Interim audit is performed in between the year, often for dividend declaration or half-yearly results.

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

Question #3

A petty cash book kept on the Imprest system has an imprest amount of Rs 5,000. If total expenses were Rs 4,200, the reimbursement amount is:

A. Rs 9,200

B. Rs 800

C. Rs 5,000

D. Rs 4,200

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Correct Answer: Option D

Explanation:
The cashier is reimbursed exactly the amount spent (Rs 4,200) so the balance returns to the imprest figure of Rs 5,000.

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

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