Ind AS 116 deals with: MCQ with Answer and Explanation
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Question #1
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A firm has an average profit of ₹50,000, normal rate of return 10%, capital employed ₹4,00,000. Goodwill by capitalization of super profit method (if capitalized at 10%) will be:
Correct Answer: Option A
Explanation:
Normal profit = 10% of 4,00,000 = 40,000. Super profit = 50,000 - 40,000 = 10,000. Goodwill by capitalization of super profit = 10,000 / 10% = ₹1,00,000.
Normal profit = 10% of 4,00,000 = 40,000. Super profit = 50,000 - 40,000 = 10,000. Goodwill by capitalization of super profit = 10,000 / 10% = ₹1,00,000.
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Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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The 'GST on Affordable Housing' under the new regime is:
Correct Answer: Option B
Explanation:
GST for affordable housing is 1% without input tax credit.
GST for affordable housing is 1% without input tax credit.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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S1: In the absence of a partnership deed, interest on partner's loan is allowed at 6% per annum. S2: In the absence of a partnership deed, interest on partner's capital is not allowed. Which statement(s) is/are correct?
Correct Answer: Option C
Explanation:
The Partnership Act 1932 mandates that if the deed is silent, interest on a partner's loan is allowed at 6% p.a., but no interest on capital is allowed. Both statements are correct.
The Partnership Act 1932 mandates that if the deed is silent, interest on a partner's loan is allowed at 6% p.a., but no interest on capital is allowed. Both statements are correct.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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