The 'Time of Supply' for services under forward charge, if invoice issued within prescribed period, is: MCQ with Answer and Explanation

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The 'Time of Supply' for services under forward charge, if invoice issued within prescribed period, is:

A. Date of payment

B. Date of completion of service

C. Date of invoice or date of provision of service, whichever is earlier

D. Due date of payment

Answer: Option C

Solution (By JKSSB Mock Tests)

Time of supply is earliest of date of invoice or date of payment (if invoice not issued within period, date of provision).

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

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Pradhan Mantri Jan Dhan Yojana' (PMJDY) aims at:

A. Only insurance

B. Only pension

C. Tax exemption

D. Financial inclusion by providing bank accounts to unbanked

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Correct Answer: Option D

Explanation:
PMJDY is a national mission for financial inclusion.

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

Question #2

If ending inventory is overstated, what is the effect on the Net Profit of that year?

A. Cannot be determined

B. Understated

C. No effect

D. Overstated

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Correct Answer: Option D

Explanation:
Closing stock is credited to the Trading A/c. An overstatement of closing stock reduces Cost of Goods Sold, thereby inflating (overstating) the Gross and Net Profit.

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

Question #3

A bill of exchange for ₹20,000 discounted with bank for ₹19,500. The discount charged is:

A. ₹500

B. ₹1,000

C. ₹20,000

D. ₹19,500

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Correct Answer: Option A

Explanation:
Discount = Face value - Amount received = 20,000 - 19,500 = ₹500.

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

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