Taxation - Income TaxMCQQuestion 5610 of 146
All Questions

14. Remaining Balance of Electronic Credit ledger and Electronic Cash ledger after filing return of April, 2024 will be

Options

A` 10,000 and ` 18,900
BNIL and ` 28,900
C` 8,900 and ` 20,000
D` 28,900 and NIL (2 Marks)
For any discrepancies in this question, email contact@cadada.in

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)

Ad

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.

Key Concepts to Understand

More Questions from Taxation - Income Tax

Ready to Master Taxation - Income Tax?

Practice all 146 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free