On dissolution of a firm, the balance in the partners' capital accounts after all adjustments is transferred to: MCQ with Answer and Explanation

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On dissolution of a firm, the balance in the partners' capital accounts after all adjustments is transferred to:

A. Profit & Loss account

B. Realisation account

C. Cash/Bank account

D. Revaluation account

Answer: Option C

Solution (By JKSSB Mock Tests)

Finally, the capital account balances are paid off in cash or bank, and accounts are closed.

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

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Question #1

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The 'Vivad se Vishwas' scheme for direct taxes was enacted to:

A. Settle pending tax disputes by providing waiver of interest and penalty

B. Introduce new taxes

C. Increase tax rates

D. Simplify GST

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Correct Answer: Option A

Explanation:
The scheme offers a mechanism to resolve legacy direct tax disputes.

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

Question #2

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In the context of the Indian Financial System, the 'Securities and Exchange Board of India' (SEBI) was given statutory powers by which of the following Acts?

A. Companies Act, 2013

B. SEBI Act, 1992

C. Securities Contracts (Regulation) Act, 1956

D. RBI Act, 1934

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Correct Answer: Option B

Explanation:
SEBI was initially set up as a non-statutory body in 1988 but was granted statutory powers and authority through the SEBI Act, 1992.

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Question #3

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The 'Borrowing Costs' (Ind AS 23) that are directly attributable to acquisition, construction, or production of a qualifying asset are:

A. Expensed immediately

B. Ignored

C. Capitalised as part of the cost of that asset

D. Written off over 10 years

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Correct Answer: Option C

Explanation:
Borrowing costs on qualifying assets are capitalised.

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