Final Accounts-Test 8

Goods costing Rs.4,000 having normal sales value of Rs.6,000 were destroyed by the fire. The scrap worth Rs.400 was taken over by insurance company. Insurance company accepted a final claim of Rs.2,700. What amount of loss by fire will be transferred to profit & Loss A/C?

Mr. A invest Rs.10,00,000 to start a cloth business on 1 St April ,2011. During the year he purchases goods of Rs.7,10,000 and his sales for the year was Rs.8,42,000. He pays shop rent for the financial year 2011-12 Rs.20,000 and other expenses Rs.75,000 and fins that he has goods worth Rs.45,000 in hand. What would be the gross profit for the year ended 31 st March 2012?

State which of the following statement is false:

Which of the following are current Assets?

1.Accounts receivable

2. Salary paid in advance

3.Bank Loan for three years

4.Preliminary expenses

The manager earns a commission of Rs.25,000 which is based on 10% of the net profit . If the sales is Rs.3,50,000 higher than purchases. Find out the direct+Indirect expenses incurred during the year. There is no opening or closing stock.

On March 31,2013, Prepaid expenses A/C(2012-13) shows a closing balance of Rs.5,000. It means ———–

Bill discounted Rs.10,000 above item will appear in ———–

Which of the following is not a “Miscellaneous expenditure” shown in assets side of balance sheet ?

In Profit and Loss Account , the selling and distribution expenses will not include:

A provision for depreciation is created by debiting ————–

From the following information, you are required to to calculate the amount which will be debited to the profit and loss Account for the period ending on 31.03.2014.

Provision for doubtful debts as on 01.04.2013 = Rs.800, Debtors as on 31.03.2014=Rs.40,000, Bad debts =Rs.2,000.Bad debts are to be written off and provision for doubtful debts

is to be created  @5% of the debtors.

By products are generally valued at ————- if their costs cannot be separately identifiable.

Loss on sale of Machinery is credited to ————Account.

In journal,the entries which pertain to outstanding expenses ,Prepaid expenses or depreciation are called:

Which of the following can’t be described as provision?

Cost of physical stock on 15.04.2014 was Rs.3,00,000. Sales amounting Rs.1,00,000 and purchases worth Rs.50,000 were held between 31.03.2014 and 15.04.2014. Goods are

sold at a profit of 20% on sales.Value of inventory as on 31.03.2014:

On 1st April,2013 Rakesh started cloth business with Rs.1,20,000 and took loan of Rs.50,000 from Ramesh for new business.During the year ,he earned a profit of Rs.20,000, introduced further capital of Rs.30,000 and withdrew Rs.10,000 for personal use. He repaid Rs.10,000 to Ramesh on 31 st October 2013. On 31 st March 2014, the total assets were Rs.2,30,000 and total outside liabilities were RS.———–

Which of the following statement is incorrect?

Compute Gross profit from the following particulars:

Opening stock = Rs.84,000,Purchase less returns = Rs.5,76,000, Wages = Rs.1,23,000, Freight inwards= Rs.57,000,Freight outwards= Rs.63,000, Salaries = Rs.1,52,000,

Commission on purchases = Rs.25,000, Sales = Rs.9,54,000 and closing stock = Rs.1,78,000.

In the books of Mohanlal & sons, On 1st April 2013 provision for doubtful debts existed at Rs.15,000. On 31 st March,2014 debtors were Rs.6,00,000 and bad debts Rs.20,000.

Provision for doubtful debts is to be created @ 8% on debtors. Compute the amount to be debited in profit and loss account.

From the following details calculate net sales to be shown n trading and profit and loss A/C. Total sales Rs.2,10,000 include the following

(I) Credit sales of Rs.65,000, (i) Goods sent to consignee Rs.25,000, (iii) Sale of old office equipment Rs.5,000, (iv) Goods sent on sale or return basis Rs.10,000.

A decrease in provision for doubtful debts would result in:

Mr. Y gives the following information for the year ended 31.03.2015.

Inventory as on 01.04.2014= Rs.1,60,500, Purchases= Rs.4,80,000, Manufacturing expenses= Rs.75,000, Selling expenses= Rs.33,000, Administration expenses= Rs.18,000,

Financial chargers= Rs.6,000, Sales= Rs.7,00,000. Gross profit is 20% on sales. Compute the net profit of Mr. Y for the year.

On 1st Jan,2014, provision for doubtful debts existed at Rs.17,500. Trade receivable on 31.12.2014 were Rs.3,50,000, Bad debts totalled Rs.20,000. It is required to write off bad debts

and create a provision equal to 5% of the trade receivables balance. compute the amount to be debited to the profit and loss account.

The capital of a sole trader would change as a result of :

Sales for the year ended 31 st March 2015 amounted to Rs.12,00,000. Sales included goods sold to X for Rs.1,00,000 at a profit of 20% on cost. Such goods are lying in the godown at the buyer’s risk. Therefor , such goods should be treated as part of :

As per Trial Balance:

01.03.2013 Provision for doubtful debts: Rs.1,000, 01.03.2014 Bad debts :Rs.2,000, 01.03.2014  Sundry debtors : Rs.30,600.

Additional information: (i) Further bad debts :Rs.600. (ii) Make  a provision for doubtful debts @ 5% on sundry debtors .(iii) Make a provision for discount on sundry debtors @ 2%.

Provision for discount on sundry debtors will be ————

Income Tax paid by the sole proprietor from business.Bank account is debited to ———–

Manufacturing account is prepared to —————

Interest is calculated on —————– of securities.