Under the General Financial Rules (GFR) 2017, the 'Contingent Expenditure' includes: MCQ with Answer and Explanation

Under the General Financial Rules (GFR) 2017, the 'Contingent Expenditure' includes:

A. Expenditure on routine maintenance

B. Expenditure on unforeseen events like natural calamities or legal claims

C. Salary and wages of regular staff

D. Expenditure on capital assets

Answer: Option B

Solution (By JKExamLibrary)

Contingent expenditure under GFR refers to expenditure that is not certain and depends on the occurrence of unforeseen events, such as natural disasters, accidents, or legal claims against the government.

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

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Question #1 Report Error

The 'Petty Cash Book' is maintained on the imprest system. If the imprest amount is ₹2,000 and petty expenses are ₹1,400, the reimbursement required is:

A. ₹3,400

B. ₹2,000

C. ₹1,400

D. ₹600

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Correct Answer: Option C

Explanation:
Reimbursement should equal the amount spent, i.e., ₹1,400, to restore the imprest amount.

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

Question #2 Report Error

The 'Tax on Virtual Digital Assets' (VDAs) allows deduction of:

A. Full cost with indexation

B. All expenses

C. No deduction

D. Only cost of acquisition; no other deduction

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Correct Answer: Option D

Explanation:
Only cost of acquisition is allowed as deduction; no other expenses or indexation. Loss from VDA cannot be set off against other income.

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