The term 'Marshalling' in the context of a Balance Sheet means: MCQ with Answer and Explanation

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The term 'Marshalling' in the context of a Balance Sheet means:

A. Transferring net profit to capital

B. Totaling the assets and liabilities

C. Writing off bad debts

D. Arranging assets and liabilities in a specific order of liquidity or permanence

Answer: Option D

Solution (By JKSSB Mock Tests)

Marshalling refers to the logical sequencing of assets and liabilities to make the balance sheet easily readable and analytical.

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

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The 'Advance Ruling' under GST provides:

A. Penalty imposition

B. Clarity on tax liability on proposed transactions

C. Audit report

D. Registration

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Correct Answer: Option B

Explanation:
Advance ruling helps businesses determine GST implications before undertaking a transaction.

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

Question #2

When preparing BRS from Cash Book balance (Dr.), a cheque issued but not yet presented should be:

A. Deducted

B. Adjusted in capital

C. Added

D. Ignored

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Correct Answer: Option A

Explanation:
To reconcile to Pass Book, we deduct unpresented cheques because they have already reduced cash book balance but not passbook.

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Question #3

A firm's assets ₹6,00,000, liabilities ₹1,00,000, normal rate 10%, average profit ₹75,000. Value of goodwill by capitalization of average profit method (total value less net assets) is:

A. ₹75,000

B. ₹1,00,000

C. ₹1,50,000

D. ₹2,50,000

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Correct Answer: Option D

Explanation:
Capitalized value of average profit = 75,000 / 10% = ₹7,50,000. Net assets = 6,00,000 - 1,00,000 = ₹5,00,000. Goodwill = 7,50,000 - 5,00,000 = ₹2,50,000.

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

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