S1: A Journal Voucher is used for non-cash transactions. S2: A Contra Voucher is used for cash and bank transactions. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: A Journal Voucher is used for non-cash transactions. S2: A Contra Voucher is used for cash and bank transactions. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. Both S1 and S2
C. S2 only
D. S1 only
Answer: Option B
Solution (By JKSSB Mock Tests)
A Journal Voucher (or Transfer Voucher) is used for internal adjustments and non-cash transactions like depreciation. A Contra Voucher is used for transactions involving both cash and bank, like depositing cash into the bank. Both are correct.
S1: The sacrificing ratio is always in the old profit-sharing ratio. S2: The gaining ratio is always in the new profit-sharing ratio. Which statement(s) is/are correct?
Explanation:
The sacrificing ratio is calculated as Old Ratio - New Ratio. The gaining ratio is calculated as New Ratio - Old Ratio. They are not necessarily the same as the old or new ratios unless specifically stated. Both are incorrect.
Explanation:
Deferred tax asset is recognized when accounting profit is lower than taxable profit due to timing differences, resulting in future tax savings.
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