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

Question
The 'Sale and Leaseback' transaction: If the transfer qualifies as a sale under Ind AS 115, the seller-lessee:
A. Treats as operating lease
B. Derecognises the asset and recognises a right-of-use asset at the proportion of the previous carrying amount related to the right retained
C. No entry
D. Keeps the asset
Answer: Option B
Solution (By JKSSB Mock Tests)
Under Ind AS 116, the seller-lessee only recognises a right-of-use asset for the part retained.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'Tax Residency' of an individual in India is determined based on:
A. Citizenship
B. Age
C. Place of birth
D. Number of days of stay in India
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Correct Answer: Option D

Explanation:
Residential status under Income Tax Act is based on physical presence in India.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
If total assets increase by Rs 40,000 and total liabilities increase by Rs 10,000, what is the effect on the owner's equity?
A. Increases by Rs 30,000
B. Decreases by Rs 40,000
C. Increases by Rs 50,000
D. Decreases by Rs 30,000
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Correct Answer: Option A

Explanation:
Since Assets = Liabilities + Equity, 40,000 (Increase) = 10,000 (Increase) + Equity (Increase). Equity must increase by Rs 30,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Component Accounting' is required under:
A. Ind AS 16 / AS 10
B. AS 13
C. AS 15
D. AS 2
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Correct Answer: Option A

Explanation:
Ind AS 16 requires significant parts of an asset to be depreciated separately.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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