The 'Sale and Leaseback' transaction: If the transfer qualifies as a sale under Ind AS 115, the seller-lessee: MCQ with Answer and Explanation

The 'Sale and Leaseback' transaction: If the transfer qualifies as a sale under Ind AS 115, the seller-lessee:
A. Keeps the asset
B. Treats as operating lease
C. Derecognises the asset and recognises a right-of-use asset at the proportion of the previous carrying amount related to the right retained
D. No entry
Answer: Option C
Solution (By JKSSB Mock Tests)
Under Ind AS 116, the seller-lessee only recognises a right-of-use asset for the part retained.

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Practice More Accountancy and Book Keeping Questions

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The 'Goods and Services Tax' on healthcare services is:
A. 5%
B. 12%
C. Exempt
D. 18%

Correct Answer: Option C


Explanation:
Healthcare services are generally exempt from GST.

Question #2
A social audit report is:
A. Legally mandatory for all companies
B. Part of tax audit
C. Conducted by the Comptroller and Auditor General only
D. Voluntary or mandated by specific statutes like Mahatma Gandhi NREGA

Correct Answer: Option D


Explanation:
Social audit is mandated for certain government schemes (e.g., MGNREGA) and may be voluntary for others. It is not universally mandatory for all companies.

Question #3
All revenues received, loans raised, and money received in repayment of loans by the Government of India form part of the:
A. Prime Minister's Relief Fund
B. Contingency Fund of India
C. Public Account of India
D. Consolidated Fund of India

Correct Answer: Option D


Explanation:
As per Article 266(1), all these inflows form the Consolidated Fund of India, from which no money can be spent without parliamentary approval.