The Trading Account shows a gross profit of Rs 50,000. Indirect expenses are Rs 20,000 and indirect income is Rs 5,000. What is the Net Profit? MCQ with Answer and Explanation

Question

The Trading Account shows a gross profit of Rs 50,000. Indirect expenses are Rs 20,000 and indirect income is Rs 5,000. What is the Net Profit?

A. Rs 35,000

B. Rs 75,000

C. Rs 25,000

D. Rs 30,000

Answer: Option A

Solution (By JKSSB Mock Tests)

Net Profit = Gross Profit (50,000) + Indirect Income (5,000) - Indirect Expenses (20,000) = Rs 35,000.

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

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Question #1

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The 'Place of Supply' rules under GST determine:

A. Whether supply is intra-state or inter-state

B. The value of supply

C. The tax rate

D. Exemption

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Correct Answer: Option A

Explanation:
Place of supply determines whether IGST or CGST+SGST applies.

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

Question #2

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If a bill is discounted with the bank, the account debited in the books of the drawer is:

A. Bank Account

B. Discounting Charges Account

C. Bills Receivable Account

D. Drawee Account

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Correct Answer: Option A

Explanation:
When a bill is discounted, the bank gives cash (or credits the bank account) before the due date, so the Bank Account is debited.

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Question #3

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Under GST, the 'Composition Scheme' is available to small taxpayers with aggregate turnover up to:

A. ₹20 lakh

B. ₹1.5 crore

C. ₹50 lakh

D. ₹10 crore

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Correct Answer: Option B

Explanation:
For goods, composition scheme limit is ₹1.5 crore (₹75 lakh for some states). For services, separate limit. The general limit for goods is ₹1.5 crore.

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