Final Accounts-Test 7

Which one is correct?

Work- in-progress is shown in the balance sheet under which head ?

units produced 5,000 @ 20. Direct expenses =Rs.5,000.4/5Th  of the units were sold @25 per unit. What will be the profit?

Sales = —————–+ Gross profit.

Bills payable is shown on the liability side of the balance sheet under the head:

The provision for discount on debtors is calculated on debtors

If depreciation is excess charged by Rs.500 and closing stock is under valued by Rs.500.The net profit will be ———- due to these errors.

Goods purchased Rs.90,000, Sales=Rs.80,000, Margin 20% on sales , Closing stock will be————

Goods worth Rs.5,000 were supplied to Mr. X at an invoice price of 20% above cost and allowed trade discount at 10% on invoice price. At what price were the goods sold to X?

Working capital means ———-

Prepaid expenses Rs.1000, Shown  in trial balance, will appear in ———-

Profit and Loss on sale of fixed assets in transferred to ———-

If opening stock is Rs.69,000.Closing stock is Rs.83,500, Sales less return is Rs.1,60,000 and Purchases is Rs.1,10,000. The gross profit margin on dales would be?

A sole trader has computed a net profit of Rs.56,750. After that he found the following mistakes in the books of accounts. Discount received of Rs.580 and Discount allowed of Rs.665 have been recorded on the wrong sides of the discount received and discount allowed accounts. What would be the actual bet profit of trade?

An item of furniture was destroyed by fire whose cost was Rs.18,000 against which a claim of Rs.12,000 was accepted by the insurance company. The depreciation provision up to datee of fire was 2,750. What amount to be recorded in account as loss by fire?

Rent paid on 1st  October 2010 for the period 01.10.2010 to 30.09.2011 was Rs.12,000 and rent paid on 1 st October 2011 for the period 01.10.2011 to 30.09.2012 was Rs.18,000. Amount of rent in the profit and Loss account for the year ended 310.03.2012 would be —————

X sold goods to Y at a profit of 10% on cost, and Y sold the goods to Z at a profit of 20% on sale value. If the cost of goods to X is Rs.50,000, then at what value Y has sold the goods to Z?

A trial balance shows sundry debtors as Rs.80,000. Information outside the trial balance (i) Bad debts Rs.2,000 (ii) Make a provision for doubtful debts on debtor @ 5%.

The amount of provision for doubtful debts will be ———–

On 31 st March ,2011, the books of Ajit showed a net profit of Rs.84,000. Later it was discovered that the closing stock was over valued, by Rs.4,000 and the discount received of Rs.1,500

was treated as an expense. What was the correct net profit of Ajit?

Mr. X forgot to record following transactions while preparing his final account for the year ended 31/03.2011.

Outstanding expenses = Rs.20,000, Prepaid insurance = Rs.2,000, Interest receivable on investment( Accrued)= Rs.3,000, Drawings =Rs.6,000

The total change in his profit for the year after recording the above would be ——–

From the following information, calculate the cost of raw material consumed :

Purchase of raw material = Rs.80,000,

Opening stock: Raw material= Rs.5,000, Work in progress= Rs.12,000, Finished goods= Rs.8,500

Closing stock: Raw materials= Rs.6,350, Work in progress= Rs.12,400, Finished goods= Rs.4,500

Return inwards are deducted from ————–

An increase in the provision for doubtful debts would result in ———— in working capital and ————- in net profit.

A company has paid salary amounting to Rs.50,000 to Mr. A on March 25,2011. Mr. A deposited in cheque of salary on April 03,2011 in his bank account.What adjustment should be made by company at the time of preparing final account.

The opening stock is understated by Rs.20,000 and closing stock is overstated by Rs.25,000. The net profit for the current year is ———-

The following details relate to a trading concern for the year 2010. Opening stock =Rs.4000, Purchases and Sales during the year Rs.36,000 and Rs.35,000 respectively. Profit on

sales is 20% uniformity throughout the year. 50% of the closing stock was found to be obsolete and estimated to fetch only 50% of cost. The value for the closing stock at the end of the year will be :

Proprietor used the rented building both for business purpose and as well for personal purpose equally. The rent paid during the year for the building was Rs.1,32,000 debited to Rent expenses. One month rent is still outstanding . Liability of the business for outstanding rent is ———–

From the following information ; Calculate the purchases made during the year 2012-13.

Opening stock= Rs.1,50,000, Cash sales =Rs.1,20,000, Credit sales =Rs.2,30,000, Closing stock = Nill . Selling price is 125% of cost price

Calculate amount of salary debited to profit and loss A/C for the year ending 31.03.2013

Salary outstanding as on 31.03.2012= Rs.25,000, Salary outstanding as on 31.03.2013 =Rs.10,000, Prepaid salary as on 31.03.2012=10,000, salary paid in cash  during the year=Rs.3,00,00.

At the end of the financial year 2011-12 the gross profit of Ram’s business is Rs.1,75,000. During the year carriage inward Rs.15,000, Ram’s personal expenses Rs.75,000 and

Carriage outward Rs.17,500 were paid by Ram. Bad debts for the year were Rs.12,000. the net profit earned by Ram for the year 2011-12 would be ———-