A GST registered person purchased goods worth ₹1,18,000 (inclusive of GST @ 18%) and sold the same for ₹1,77,000 (inclusive of GST @ 18%). The net GST payable (output - input credit) is: MCQ with Answer and Explanation
A GST registered person purchased goods worth ₹1,18,000 (inclusive of GST @ 18%) and sold the same for ₹1,77,000 (inclusive of GST @ 18%). The net GST payable (output - input credit) is:
Explanation:
Personal accounts represent individuals, firms, or companies. The rule dictates debiting the person receiving the benefit and crediting the provider.
A government department incurs an expenditure of ₹5,00,000 on the repair of a building. Under the General Financial Rules (GFR), this expenditure should be classified as:
A.Revenue expenditure, as it maintains the existing condition
B.Contingent expenditure
C.Deferred revenue expenditure, to be written off over 5 years
D.Capital expenditure, as it improves the building
Explanation:
Under standard accounting and GFR principles, routine repairs and maintenance that do not increase the capacity or useful life of an asset are classified as revenue expenditure, not capital.
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