Which account is opened for adjusting asset and liability values at the time of admission of a new partner? MCQ with Answer and Explanation

Question
Which account is opened for adjusting asset and liability values at the time of admission of a new partner?
A. Goodwill Account
B. Suspense Account
C. Realisation Account
D. Revaluation Account
Answer: Option D
Solution (By JKSSB Mock Tests)
A Revaluation Account (or Profit & Loss Adjustment A/c) is opened to record gains and losses arising from the revaluation of assets and reassessment of liabilities.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Retention Period' for audit working papers is generally:
A. No requirement
B. 1 year
C. 7 years (or as per SQC 1)
D. 10 years
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Correct Answer: Option C

Explanation:
As per ICAI's Standard on Quality Control, retention period is at least 7 years.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Cost of Control' (Goodwill) arises on consolidation when:
A. Parent company pays less
B. Purchase consideration is more than net assets acquired
C. Net assets are more than purchase consideration
D. Subsidiary makes loss
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Correct Answer: Option B

Explanation:
Goodwill on consolidation arises when cost of investment exceeds the fair value of net assets of subsidiary.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
In the context of taxation, TDS stands for:
A. Tax Direct System
B. Tax Deducted at Source
C. Total Deducted Source
D. Total Direct Source
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Correct Answer: Option B

Explanation:
TDS stands for Tax Deducted at Source, a mechanism where tax is collected at the very source of income generation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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