X and Y share profits in ratio 3:2. Z is admitted with 1/5th share. Sacrificing ratio of X and Y is: MCQ with Answer and Explanation

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X and Y share profits in ratio 3:2. Z is admitted with 1/5th share. Sacrificing ratio of X and Y is:

A. 2:3

B. 3:2

C. 1:1

D. Equal to new ratio

Answer: Option B

Solution (By JKSSB Mock Tests)

If new partner's share is given without specifying sacrifice, old partners sacrifice in their old ratio. So 3:2.

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

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Which of the following decisions relates to 'Capital Structure' in financial management?

A. Mix of debt and equity financing

B. Working capital management

C. Dividend payment

D. Selection of fixed assets

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Correct Answer: Option A

Explanation:
Capital structure decision determines the proportion of debt and equity.

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Question #2

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The journal entry for goods withdrawn by the proprietor for personal use is:

A. Capital A/c Dr. To Purchases A/c

B. Purchases A/c Dr. To Drawings A/c

C. Drawings A/c Dr. To Sales A/c

D. Drawings A/c Dr. To Purchases A/c

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Correct Answer: Option D

Explanation:
Goods taken for personal use reduce drawings and reduce purchases (or stock). Correct entry: Drawings A/c Dr. To Purchases A/c.

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Question #3

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When a firm adopts 'Lean Accounting', it primarily tries to:

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D. Reduce the number of accountants

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Correct Answer: Option A

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Lean accounting supports lean manufacturing by eliminating complex, non-value-adding accounting transactions and focusing on value stream costing.

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