Commerce Accountancy · Economics

Journal Entries and Depreciation

650 Questions

Journal entries and depreciation are core accountancy topics involving the systematic recording of financial transactions and the calculation of asset value reduction over time. Students must solve problems related to bad debts, provision calculations, and error rectification. These questions are essential for candidates appearing in commerce and accounting competitive exams.

Bad debts provisionAsset depreciation calculationPurchase return errorsTrial balance rectificationDebenture issuance

Journal Entries and Depreciation Questions

Multiple choice

The Internal Rate of Return (IRR) is the discount rate that makes the:

  1. Net Present Value (NPV) of a project equal to zero

  2. Payback Period of a project equal to zero

  3. Average Rate of Return (ARR) of a project equal to zero

  4. Profitability Index (PI) of a project equal to zero
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

IRR is the discount rate that equates the present value of a project's cash inflows to the present value of its cash outflows, resulting in an NPV of zero.

Multiple choice

What is the processing fee for filing a refund claim?

  1. Rs. 100.

  2. Rs. 200.

  3. Rs. 300.

  4. Rs. 400.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The processing fee for filing a refund claim is Rs. 100.

Multiple choice

What is the penalty for late filing of TDS returns?

  1. ₹100 per day

  2. ₹200 per day

  3. ₹500 per day

  4. ₹1,000 per day
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A penalty of ₹200 per day is levied for late filing of TDS returns, subject to a maximum of the TDS amount.

Multiple choice

What is the penalty for late filing of GSTR-6 by an ISD?

  1. Late fee of Rs. 100 per day

  2. Late fee of Rs. 200 per day

  3. Late fee of Rs. 500 per day

  4. Late fee of Rs. 1,000 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The penalty for late filing of GSTR-6 by an ISD is a late fee of Rs. 100 per day.

Multiple choice

What is the penalty for late filing of GST returns?

  1. A fine of Rs. 100 per day

  2. A fine of Rs. 200 per day

  3. A fine of Rs. 300 per day

  4. A fine of Rs. 400 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The penalty for late filing of GST returns is a fine of Rs. 100 per day.

Multiple choice

What is the penalty for late filing of Service Tax Returns?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 300 per day

  4. Rs. 400 per day
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The penalty for late filing of Service Tax Returns is Rs. 200 per day, subject to a maximum of Rs. 10,000.

Multiple choice

What is the penalty for late filing of GST returns?

  1. A fine of Rs. 100 per day

  2. A fine of Rs. 200 per day

  3. A fine of Rs. 500 per day

  4. A fine of Rs. 1,000 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Businesses that fail to file their GST returns on time are liable to pay a penalty of Rs. 100 per day.

Multiple choice

What is the penalty for late filing of service tax returns?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 300 per day

  4. Rs. 400 per day
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The penalty for late filing of service tax returns is Rs. 200 per day.

Multiple choice

What is the penalty for late filing of GST Annual Return?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 500 per day

  4. Rs. 1,000 per day
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The penalty for late filing of GST Annual Return is Rs. 200 per day.

Multiple choice

What is the late filing fee for GSTR-1?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 500 per day

  4. Rs. 1,000 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The late filing fee for GSTR-1 is Rs. 100 per day.

Multiple choice

What is the penalty for late filing of GST returns for works contracts?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 500 per day

  4. Rs. 1,000 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The penalty for late filing of GST returns for works contracts is Rs. 100 per day.

Multiple choice

What is the formula for calculating the days sales outstanding (DSO)?

  1. Average Accounts Receivable / Net Sales * 365

  2. Net Sales / Average Accounts Receivable * 365

  3. Average Accounts Receivable / Cost of Goods Sold * 365

  4. Cost of Goods Sold / Average Accounts Receivable * 365
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Days Sales Outstanding (DSO) is calculated by dividing the average accounts receivable by net sales and multiplying by 365 to determine the average number of days it takes a company to collect its receivables.

Multiple choice

What is the late fee for filing GSTR-1 after the due date?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 300 per day

  4. Rs. 400 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The late fee for filing GSTR-1 after the due date is Rs. 100 per day, subject to a maximum of Rs. 5,000.

Multiple choice

What is the late fee for filing GSTR-3B after the due date?

  1. Rs. 50 per day

  2. Rs. 100 per day

  3. Rs. 200 per day

  4. Rs. 300 per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The late fee for filing GSTR-3B after the due date is Rs. 50 per day, subject to a maximum of Rs. 2,500.

Multiple choice

What is the GST late fee for filing GSTR-9 after the due date?

  1. Rs. 100 per day

  2. Rs. 200 per day

  3. Rs. 300 per day

  4. Rs. 400 per day
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The GST late fee for filing GSTR-9 after the due date is Rs. 200 per day, subject to a maximum of Rs. 10,000.