Fundamentals of Accounting 6

Rs. 1,500 spent on repairs before using a second hand car purchased recently is a

Commission received in advance is a

100 articles at the sale price of Rs. 200 each sent to a customer on approval basis
were recorded as actual sales on that price. The sale price was made cost plus 25%. The
amount of inventory on approval will be

A and B are partners, sharing profits in the ratio of 5:3. They admit C with 1/5 share in
profits, which he acquires equally from both 1/10 from A and 1/10 from B. New profit sharing
ratio between A and B will be

On 1st Sept. 2016 goods costing Rs. 33,000 were consigned by X to his agent Y at a
proforma price which was cost plus one – sixth profit on invoice price. Invoice price of
goods will be

A second hand car is purchased for Rs. 15000, the amount of Rs. 1000 is spent on its
repairs, Rs. 500 is incurred to get the car registered in owners name and Rs. 1200 is paid
as dealers commission. The amount debited to car account will be

Ras started business on 01.01.2016 with a capital of Rs. 20,000 and he borrowed
Rs. 3,000 from a friend. He earned a profit of Rs. 10,000 during the year and withdrew
cash Rs. 5,000 for private use. What is his capital at the end of the year?

Mohan paid Rs. 500 towards a debit of Rs. 2,500, which was written off as bad debt in the previous year. Mohan’s account will be credited with

Total sales during the year amounted to Rs. 70,000; Cash sales Rs. 10,000; Balance of
trade receivables at the end of the year Rs. 25,000. Cash received from customers
during the year will be

A trader purchased furniture on Jan 1, 2015 for Rs. 5,200. Its scrap value is 200 and life
10 years. Depreciate furniture according to fixed instalment method. Balance of furniture
a/c at the end of third year will be

The total of debit and credit side of Mr. Raja Ram’s Trial balance as on 31st March, 2016
were Rs. 20,000 and Rs. 10,000 respectively. The difference was transferred to
suspense A/c. On 4th April 2016, it was found that the total of sales book was carried
forward as 5,000 instead of 4,000. The balance of suspense A/c after rectification of this
error will be

Goodwill is to be calculated at one year’s purchase of the average of the last 3 years
profit. The profit of the first year was Rs. 6,000, second year twice the profit of the first
year and the third year one and half times of the profit of the second year goodwill
amount will be

Huge Ltd. issued 25,000 equity shares of Rs.100 each at a premium of Rs. 15 each
payable as Rs. 25 on application, Rs. 40 on allotment and balance in the first call. The
applications were received for 75,000 equity shares but the company issued to them only
25,000 shares. Excess money was refunded to them after adjustment for further calls.
Last call on 500 shares were not received and were forfeited after due notice. The above
is the case of

When balance as per cash book is the starting point, and cheques issued for payment
Rs. 400 was wrongly credited by Bank as Rs.900 then in the bank reconciliation
statement cash balance will be

There was difference in the bank column of cash book and passbook by Rs. 2,500. On
scrutiny it was found that interest of Rs. 500 charged directly by the bank was not
entered in the cash book. The same was adjusted in the cashbook before reconciliation
statement. Now, in the bank reconciliation statement, this interest of Rs. 500 is to be

1,000 kg of oranges are consigned to a wholesaler, the cost being Rs. 8 per kg, plus
Rs. 925 of freight. It is concluded that a loss of 15% is unavoidable. The cost per kg of
orange will be

If cost of goods sold is Rs. 80,700, Opening stock Rs. 5,800 and Closing stock Rs. 6,000. Then the amount of purchase will be

Writing of transaction in the ledger is called———-

Prakash Ltd. issued 15,000, 15% debentures of Rs.100 each at a premium of 10%, which
are redeemable after 10 years at a premium of 20%. The amount of loss on redemption
of debentures to be written off every year is

Tista Ltd. has issued 14% Debentures of Rs. 10,00,000 on April 01, 2014 and the
company pays interest half-yearly on June 30, and December 31, every year. On
March 31, 2016, the amount shown as “interest accrued but not due” in the Balance
Sheet will be:

Debentures which are not secured by any charge upon any assets of the company are called——

Change in accounting estimate means—

Ram Ltd. re-issued 200 equity shares of Rs.9 each @ Rs. 7 per share. These shares
were issued originally at par. Amount debited to discount on re-issue of shares will be

The plant and machinery account of a firm had a debit balance of Rs. 1,47,390 (before
charging depreciation for the year) as on 31st December, 2016. On 1st Jan., 2013 Co. started
business and has been following the practice of charging full year’s depreciation every year
on Diminishing balance method @ 15%. Cost of machinery on 01.01.2013 will be

Fluctuating capital account is credited with—-

All of the following have debit balance except—-

Double column cash book records—-

A bill has been drawn on August 10, 2016 payable after 3 months. The maturity date of
the bill will be—

Salary and wages is debited to

If sales revenue is Rs. 5,00,000, cost of goods sold is Rs.3,10,000. The gross profit is—–

Goods of Rs. 600 (sales price) sent on sale on approval basis were included in sales
book. The profit included in the sales was at 20% on cost. Closing stock will increase by

A manager gets 5% commission on net profit after charging such commission. Gross
profit Rs. 48,000 and expenses of indirect nature other than manager’s commission are
Rs. 6,000. Commission amount will be

Ramesh drew a 45 days bill on Komal on 25th Jan., 2015. The bill will mature on—-

Birbal drew a three month bill on Satyapal for Rs. 5,000. On due date Satyapal
approached Birbal to renew the bill for another month @ 12% p.a. Amount of the new bill
will be

Preet accepted a 90 days bill of Rs. 10,000 drawn by Jeet on 05.02.2016. On
13.03.2016, Preet wished to retire the bill. Jeet offered rebate @ 12% p.a. Considering
the year of 360 days, rebate amount will be—–

A company issued Rs. 2,00,000 15% debentures at a discount of 5% redeemable after
10 years at a premium of 10%. Loss on issue of debentures will be

A limited company forfeited 100 equity shares of the face value of Rs. 10 each, for non-payment of first call of Rs. 2 per share. The forfeited shares were subsequently reissued as fully paid @ 7 each. Amount transferred to capital reserve will be

Interest on capital at 6% p.a. is to be allowed. Capital in the beginning was Rs. 3,00,000. Interest amount will be—-

Net salary paid to employees Rs. 45,000 in cash after deducting income tax Rs. 1,000,
professional tax Rs. 200, employees provident fund Rs. 2,000, staff welfare fund Rs. 100
and recovery of loan Rs. 1,700. Salary A/c will be debited with –

Depreciation on motor car, whose cost is Rs. 58,000 with an accumulated depreciation
reserve of Rs. 11,600, at 20% p.a. on diminishing balance will be

X sells goods at cost plus 60%. Total sales were of Rs. 16,000. Cost price of goods will be—-

A trader sells goods at a profit of 25% on sale. In a particular month, he sold goods
costing Rs. 34,200. Rate of profit on cost will be –

A manager gets 5% commission on sales. Cost price of goods sold is Rs. 40,000 which
he sells at a margin of 20% on sale. Commission will be—–

Selection of accounting policies is based on:

Which of the followings is a valuation principal?

Profit or loss on revaluation is shared among the partners in——

In case of admission of a partner, the first account prepared is——

After the death of a partner, amount payable is received by—-

Rings and pistons of an engine were changed at a cost of Rs. 5,000 to increase fuel efficiency is:

Which of the following is nominal account———-

Unexpired portion of Capital expenditure is shown in——

On 01.09.2016, A draws a bill on B “for 30 days after sight”. The date of acceptance is 08.09.2016. The maturity date of the bill will be—-

If the firm pays Income Tax on behalf of partners, such payment of personal income tax should be treated as——

Issued 2,000, 12% Debentures of Rs. 100 each at a discount of 2% redeemable at a premium of 5%. Loss on issue of debentures will be—-

(i) 1,00,000 Equity shares of 10 each fully called up. (ii) Calls in arrears Rs. 10,000
(iii) Calls in advance Rs. 5,000. (iv) Proposed dividend 15%

Dividend payable will be—–

Compensation paid to retrenched employee is:

Petty expenses paid in cash are recorded in:

On April 1, 2016, a bill was drawn for two months. The maturity date of payment will fall on:

Current assets does not include:

Rs. 5,000 spent on maintenance of plant and machinery is: