Taxation - Income TaxMCQQuestion 5610 of 146
All Questions A` 10,000 and ` 18,900
BNIL and ` 28,900
C` 8,900 and ` 20,000
D` 28,900 and NIL
(2 Marks)
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Correct Answer
✅ Option A — ` 10,000 and ` 18,900
All Options:
- A` 10,000 and ` 18,900 ✓
- BNIL and ` 28,900
- C` 8,900 and ` 20,000
- D` 28,900 and NIL (2 Marks)
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Detailed Solution & Explanation
Correct Answer: Option **A**
**Explanation:**
Let us compute the remaining balances in the Electronic Credit Ledger and Electronic Cash Ledger after filing the return for April 2024:
1. **Electronic Credit Ledger Balance:** - Opening Balance = ₹ 2,60,000. - Output Tax Liability for April 2024 = ₹ 2,50,000. - The output tax liability can be fully paid using the balance in the Electronic Credit Ledger. - Remaining Credit Ledger Balance = Opening Balance - Output Tax Paid - Remaining Credit Ledger Balance = ₹ 2,60,000 - ₹ 2,50,000 = ₹ 10,000.
2. **Electronic Cash Ledger Balance:** - Opening Balance = ₹ 70,000 (which includes the erroneously credited refund of ₹ 50,000). - The erroneously sanctioned refund of ₹ 50,000 credited to the cash ledger needs to be paid back (recovered by the department). This results in a debit of ₹ 50,000 from the cash ledger. - The interest of ₹ 1,100 payable owing to the late payment of GST for previous tax periods must be paid in cash (interest cannot be paid through the credit ledger). - Remaining Cash Ledger Balance = Opening Cash Balance - Refund Repayment - Interest Payment - Remaining Cash Ledger Balance = ₹ 70,000 - ₹ 50,000 - ₹ 1,100 = ₹ 18,900.
3. **Summary:** The remaining balance of the Electronic Credit Ledger is **₹ 10,000** and the Electronic Cash Ledger is **₹ 18,900**. Hence, **Option A** is the correct answer.
1. **Electronic Credit Ledger Balance:** - Opening Balance = ₹ 2,60,000. - Output Tax Liability for April 2024 = ₹ 2,50,000. - The output tax liability can be fully paid using the balance in the Electronic Credit Ledger. - Remaining Credit Ledger Balance = Opening Balance - Output Tax Paid - Remaining Credit Ledger Balance = ₹ 2,60,000 - ₹ 2,50,000 = ₹ 10,000.
2. **Electronic Cash Ledger Balance:** - Opening Balance = ₹ 70,000 (which includes the erroneously credited refund of ₹ 50,000). - The erroneously sanctioned refund of ₹ 50,000 credited to the cash ledger needs to be paid back (recovered by the department). This results in a debit of ₹ 50,000 from the cash ledger. - The interest of ₹ 1,100 payable owing to the late payment of GST for previous tax periods must be paid in cash (interest cannot be paid through the credit ledger). - Remaining Cash Ledger Balance = Opening Cash Balance - Refund Repayment - Interest Payment - Remaining Cash Ledger Balance = ₹ 70,000 - ₹ 50,000 - ₹ 1,100 = ₹ 18,900.
3. **Summary:** The remaining balance of the Electronic Credit Ledger is **₹ 10,000** and the Electronic Cash Ledger is **₹ 18,900**. Hence, **Option A** is the correct answer.
Key Concepts to Understand
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