A discount received from creditors is recorded in: MCQ with Answer and Explanation

Question Report Error

A discount received from creditors is recorded in:

A. Sales Book

B. Journal Proper

C. Cash Book

D. Purchases Book

Answer: Option C

Solution (By JKExamLibrary)

Discount received is a cash/bank related item and is recorded in the Discount Received column of the Cash Book.

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

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Question #1 Report Error

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

A. Date of payment

B. Due date of payment

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

D. Date of completion of service

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Correct Answer: Option C

Explanation:
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

Question #2 Report Error

The 'Goods and Services Tax' on healthcare services is:

A. Exempt

B. 12%

C. 5%

D. 18%

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Correct Answer: Option A

Explanation:
Healthcare services are generally exempt from GST.

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

Question #3 Report Error

Depreciation is provided on:

A. Fixed assets (tangible)

B. Fictitious assets

C. Current assets

D. Intangible assets only

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Correct Answer: Option A

Explanation:
Depreciation is charged on tangible fixed assets like machinery, buildings to reflect wear and tear.

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

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