The 'HSN Code' requirement for invoices under GST for turnover above ₹5 crore: MCQ with Answer and Explanation

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The 'HSN Code' requirement for invoices under GST for turnover above ₹5 crore:

A. 6-digit HSN

B. 2-digit HSN

C. 8-digit HSN

D. 4-digit HSN

Answer: Option A

Solution (By JKSSB Mock Tests)

Taxpayers with turnover > ₹5 crore must mention 6-digit HSN on invoices.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

Which of the following is not a method of depreciation?

A. Straight-line

B. Sum of years' digits

C. Machine hour rate

D. Perpetual inventory method

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Correct Answer: Option D

Explanation:
Perpetual inventory method is a method of inventory valuation, not depreciation.

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

Question #2

The 'Depreciation' entry is:

A. Debit Depreciation A/c, Credit Asset A/c

B. Debit Depreciation A/c, Credit P&L A/c

C. Debit P&L A/c, Credit Depreciation A/c

D. Debit Asset A/c, Credit Depreciation A/c

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Correct Answer: Option A

Explanation:
Depreciation is an expense: Depreciation A/c Dr. To Asset A/c (or Accumulated Depreciation).

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

Question #3

A firm's assets ₹6,00,000, liabilities ₹1,00,000, normal rate 10%, average profit ₹75,000. Value of goodwill by capitalization of average profit method (total value less net assets) is:

A. ₹1,50,000

B. ₹75,000

C. ₹1,00,000

D. ₹2,50,000

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Correct Answer: Option D

Explanation:
Capitalized value of average profit = 75,000 / 10% = ₹7,50,000. Net assets = 6,00,000 - 1,00,000 = ₹5,00,000. Goodwill = 7,50,000 - 5,00,000 = ₹2,50,000.

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

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