The 'Composition Scheme' under GST is optional for: MCQ with Answer and Explanation

The 'Composition Scheme' under GST is optional for:
A. Large taxpayers
B. All taxpayers
C. Importers
D. Small taxpayers with turnover up to specified limit
Answer: Option D
Solution (By JKSSB Mock Tests)
Small taxpayers can opt for composition levy to reduce compliance burden.

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Practice More Accountancy and Book Keeping Questions

Question #1
In a cash flow statement, interest paid on debentures is classified under:
A. Operating Activities
B. Investing Activities
C. Extraordinary Activities
D. Financing Activities

Correct Answer: Option D


Explanation:
Interest paid on debentures represents a return on capital provided by debentureholders, hence it is classified under Financing Activities.

Question #2
Which of the following is a nominal account?
A. Building Account
B. Ramesh Account
C. Capital Account
D. Rent Account

Correct Answer: Option D


Explanation:
Rent Account represents an expense, which is a nominal account. The rule is 'Debit all expenses and losses, credit all incomes and gains'.

Question #3
Purchase of furniture on credit is recorded in:
A. Journal proper
B. Cash book
C. Purchase book
D. Sales book

Correct Answer: Option A


Explanation:
Credit purchase of assets is recorded in journal proper, not purchase book (which is for goods).