Input Tax Credit under GST can be claimed on: MCQ with Answer and Explanation

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Input Tax Credit under GST can be claimed on:

A. Membership of club

B. Goods used for business furtherance

C. Motor vehicles for personal use

D. Food and beverages for employees

Answer: Option B

Solution (By JKSSB Mock Tests)

ITC is available only for inputs used in the course of business, subject to conditions in CGST Act.

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

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Question #1

Agricultural income in India is:

A. Fully taxable

B. Exempted under Section 10(1)

C. Taxable at a flat rate of 10%

D. Taxable only for corporate farmers

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Correct Answer: Option B

Explanation:
Section 10(1) of the Income Tax Act exempts agricultural income from Central Income Tax.

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

Question #2

Which voucher is used for recording cash sales?

A. Journal voucher

B. Cash voucher

C. Credit voucher

D. Debit voucher

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Correct Answer: Option B

Explanation:
Cash sales involve receipt of cash, so a cash voucher (receipt voucher) is prepared.

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

Question #3

In BRS, if the cash book shows a bank balance of ₹10,000 (Dr.) and there is an unpresented cheque of ₹2,000, the passbook balance will be:

A. ₹8,000

B. ₹10,000

C. ₹2,000

D. ₹12,000

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Correct Answer: Option D

Explanation:
Unpresented cheque has been deducted in cash book but not in passbook. So passbook balance = Cash book balance + Unpresented cheque = 10,000 + 2,000 = ₹12,000.

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

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