Final Accounts-Test 6

At the end of the Trial balance, the following adjustments are given .Stock destroyed :Rs.20,000, Insurance claim received :Rs.16,000, The effect of the above Adjustments will be shown in

A surplus of revenue over its cost is known as ———— of business.

Net profit before the following adjustments = Rs.1,80,000. Outstanding Salary = Rs.10,000, Prepaid Insurance = Rs.13,000, Calculate profit after adjustments.

Find out the corrected net profit :Profit before taking into account following adjustments was Rs.7,00,000

(i) Rs.1,00,000 spent on purchase of motor car for business purpose.,treated  as expense in profit & Loss A/C

(ii) Rs.15,000 p.m rent outstanding for the month of February and March not taken into account.

Sales = Rs.11,000, G.P = 1/10 th on cost closing stock before these adjustments Rs.1,00,000. Closing stock after adjustment of sales will be ———–

Bad debts recovered of Rs.2,000 which were previously written off as bad bed will be credited to —————

Selling and distribution expenses does not comprise of ————

The was a stock of Rs.5,500 out of which stock of Rs.500 was burnt due to fire and was disposed off for Rs.200. Remaining goods were sold at 25% above cost price. Find net profit :

It profit is 25% as cost price then the profit on sale price will be ———–

If purchases account is not credited in case of goods lost in transit then which account can be credited ?

Opening stock = Rs.50,000, Purchases = Rs.1,00,000, Purchase return = Rs.29,000, Sales = Rs.2,00,000, Find the gross profit.

Postal expenses account is shown in ———-

Prepaid expense of financial year relate with :

Opening capital = Rs.5,00,000, Profit during the year = Rs.1,00,000. calculate the average capital of the year

Goods in transit but not taken in closing stock will be credited to :

The manager of a firm is entitled to a commission of 10% on net profit after his commission. It the net profit of the firm before charging commission is Rs.4,40,000. the amount of manager’s

commission will be ————–

At the end of the year 2008-09. the ledger of a firm shows following balances. Prepare their balance sheet. Capital= Rs.2,00,000.Net profit for the year 2008-09 = 1,50,000, Provision for

Taxes = Rs.75,000, Liabilities= Rs.1,00,000, Advance Tax paid = Rs.60,000, Sundry Assets = Rs.4,65,000. The total of the balance sheet would be ———-

On 31 St March,2009 Ram has loan of Rs.50,000 and trade creditors of Rs.80,000, Fixed Assets of Rs.72,000, Stock Rs.90,000 and cash in hand Rs.60,000.If he had started business on

April 1,2008 with capital of Rs.50,000. compute profit earned by Ram for year 2008-09.

The gross profit for the year ending 31.03.2009 is Rs.1750, Carriage inward is Rs.150, Bad debts is Rs.120, Proprietors personal expenses is Rs.750, Carriage outward is Rs.175.

The amount of net profit will be ———

Calculate the value of closing stock from the following :Opening stock = Rs.60,000, Purchases = Rs.90,000, Sales = Rs.1,20,000. Gross profit on cost 33 1/3. Due to fire.

Stock costing= Rs.15,000 destroyed and insurance claim was accepted for Rs.5000.

Salaries paid in cash Rs.2,00,000. It includes previous year’s outstanding Rs.10,000 and salary paid in advance for the next year Rs.20,000. Salary of ———- shall be

debited in the profit and loss account.

The fixed asset of a company is double of the current assets and half of capital.If the current assets are Rs.3,00,000 and investment Rs.4,00,000. Calculate the current

liabilities assuming that there are no other items in the balance sheet.

Total Debtors on 31.12.2009 were Rs.48,000 before writing off bad debts but after allowing discounts. During the year bad debts amounted to Rs.2,000 and discount allowed were Rs.100.

It is the firms policy to maintain a provision of 5% against bad and doubtful debts. Find out the amount of provision for bad and doubtful debts as on 31.12.09.

What will be the treatment of “Accrued income”. If appearing in the trial balance:

Transactions of Aruna limited for the period 01.04.2009 to 10.04.2009 are as follows:

Direct Expenses = Rs.80,000, Sales = Rs.7,50,000, Purchases = Rs.Stock as on 10.04.2009 = Rs.3,60,000.

Rate of Gross profit on sales 12%. The value of stock as on 01.04.2009 was ————

which of the following statement is not true————

What will be the treatment of prepaid expenses  if adjustment of it is appearing outside the Trial balance ?

At the end of the financial year accounts receivable has a balance of Rs.1,00,000 and provision for the bad & Doubtful debts provided amounting to Rs.7,000.

Net realizable value of the accounts receivable is ———–

Baba’s balance sheet as at 31 st March,2008 shows Rs.6,800 as rent payable . His cash book shows total payment towards rent Rs.50,000 during the year ending 31 st March, 2009.

Rent payable as at 31 st March ,2009 is Rs.5,000. which of the following amount should go to his  profit and loss account as rent.

For calculation of current ration ,which of the following is relevant :