A credit balance in the Income and Expenditure Account of an NPO indicates: MCQ with Answer and Explanation

Question
A credit balance in the Income and Expenditure Account of an NPO indicates:
A. Capital Fund
B. Surplus (Excess of Income over Expenditure)
C. Deficit (Excess of Expenditure over Income)
D. Cash in hand
Answer: Option B
Solution (By JKSSB Mock Tests)
An Income & Expenditure Account is a nominal account. A credit balance means incomes exceed expenses, resulting in a Surplus.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
All revenues received, loans raised, and money received in repayment of loans by the Government of India form part of the:
A. Contingency Fund of India
B. Consolidated Fund of India
C. Public Account of India
D. Prime Minister's Relief Fund
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Correct Answer: Option B

Explanation:
As per Article 266(1), all these inflows form the Consolidated Fund of India, from which no money can be spent without parliamentary approval.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Tax deduction at source (TDS) is a mechanism under:
A. Both direct and indirect tax
B. Direct tax
C. Local body tax
D. Indirect tax
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Correct Answer: Option B

Explanation:
TDS is part of the Income Tax Act, a direct tax, requiring the payer to deduct tax at source on certain payments.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Input Tax Credit' under GST is not available for:
A. Works contract services for construction of immovable property
B. Motor vehicles for transportation of goods
C. Inputs used for taxable supplies
D. Inputs used for zero-rated supplies
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Correct Answer: Option A

Explanation:
ITC on works contract for immovable property is blocked under Section 17(5) of CGST Act.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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