The term 'Revaluation Account' is prepared during: MCQ with Answer and Explanation

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The term 'Revaluation Account' is prepared during:

A. Dissolution of a firm

B. Admission of a new partner

C. Death of a partner

D. Insolvency of a partner

Answer: Option B

Solution (By JKExamLibrary)

A Revaluation Account is prepared to record the changes in the values of assets and liabilities at the time of admission, retirement, or death of a partner.

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

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Question #1 Report Error

The 'Special Economic Zone' (SEZ) units are considered:

A. Partially inside

B. Within the customs territory of India

C. Outside the customs territory of India

D. Like DTA

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Correct Answer: Option C

Explanation:
SEZ is treated as foreign territory for customs purposes.

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

Question #2 Report Error

A petty cashier is given Rs 2,000 as float. He spends Rs 1,750 during the month. Under the imprest system, how much will he receive at the start of the next month?

A. Rs 250

B. Rs 1,750

C. Rs 2,000

D. Rs 3,750

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Correct Answer: Option B

Explanation:
Reimbursement equals the exact amount spent (Rs 1,750) so the float is restored back to the imprest limit of Rs 2,000.

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

Question #3 Report Error

S1: In a partnership, if a partner retires, his loan to the firm is transferred to his loan account, which is a liability for the firm. S2: If the retiring partner's loan is not settled immediately, it is treated as a loan and interest is allowed as per the deed or at 6% p.a. if the deed is silent. Which statement(s) is/are correct?

A. S1 only

B. Both S1 and S2

C. S2 only

D. Neither S1 nor S2

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Correct Answer: Option B

Explanation:
Both statements are correct. Upon retirement, the partner's capital balance is transferred to his loan account if not paid immediately. This becomes a liability, and interest is charged to the P&L Account at the agreed rate or 6% p.a. if silent.

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

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