Sale of goods on Approval or Return Basis-Test 1

When a large number of articles are sent on a sale or return basis, it is necessary to maintain :

Sale or Return day book is a :

A sent some goods costing Rs.3,500 at a profit of 25% on sale to B on sale or return basis. B returned goods costing Rs.800. At the end of year, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in balance sheet at :

In case of sale of goods on approval basis, the sale will take place under which of the following cases ?

At what price goods lying with customer’s are valued at year ending under sale of approval basis :

Which method is used for “Sale on Approval” basis when the transactions are few in nature ?

What is the objective behind selling goods on approval basis :

Memorandum records of sale on approval is a part of :

Sales = Rs.1,06,000

Sales Return = Rs.6,000

Out of Rs.1,06,000 goods costing Rs.10,000 were sent on approval for Rs.12,000 which have not been approved yet.

Calculate Net Sales.

Total sales of Star Limited for the year ended 31st March 2008 was Rs.5,00,000, which includes goods sold to R for Rs.5,500 at a profit of 10% on cost. Such goods are still lying in the Godown of Star Limited at the buyer’s riks. In the books of Star Limited sales would be shown as :

Mr. X sends the goods costing Rs.55,000 on approval basis. Goods of Rs.5,000 were damaged in transit and claim of Rs.3,000 was received. The amount of goods sent on approval to Mr.Y is :

A sent some goods costing Rs.3,500 at a profit of 25% on sale or return basis. B returned goods amounting to Rs.800 at Invoice value. At the end of the accounting period on March 31st 2009, the remaining goods were neither returned nor approved by B. The stock on approval will be shown in B/S as :

Goods sold on “Sale or Return basis” as on 31st March 2011 amounted to Rs.1,50,000 for which no confirmation was yet received. How much amount shall be added to closing stock, if goods are sold at cost plus 33 1/3% ?

A trader sends out goods is customer on approval and credits them to sales amount. On 31st March, 2011, sundry debtors include an amount of Rs.5,000 for goods sent on approval basis for which no confirmation was received till year end. These goods were sent out at a cost +25%. Physical stock taken on 31st March, 2011 amounted to Rs.50,000. The amount of stock appearing is Balance Sheet would be :

Cash Sale of Rs.50,000, Credit Sale of Rs.3,50,000, Sales Return Rs.25,000 out of Sales of Rs.3,50,000, goods costing Rs.40,000 were sent on approval for Rs.50,000 which has not been approved yet. Calculate the net sales :

Goods costing Rs.1,00,000 sent to customer on sales or return basis at a price of cost plus 30%. During the year 50% of the good have been accepted. 30% of the goods returned and the balance goods were lying with customer at year end and the specified time limit for approval is yet to expire. Amount of total stock to be shown in the balance sheet would be :

A company sells motor bikes on “Sale or return basis”. All such transactions are however treated like actual sales and are passed through the sales book. Just before the end of the financial year, two motor bikes costing Rs.55,000 each have been sent on “Sale or Return basis” and have been debited to customers at Rs.75,000 each, cost of goods lying with the customers will be :

X sent some goods costing Rs.3,500 at a profit 20% on sales or approval basis. Y returned goods costing Rs.800. At the end of the year 2013 the remaining goods were neither returned nor approved. The closing stock to be shown in Balance Sheet will be :

During the month of June 2014, sales were Rs.1,36,000, which include goods worth Rs.32,000 sent on approval.

Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs.24,000 had been sold for Rs.12,000. Calculate cost of normal sales.

When goods are frequently sold on approval or return basis, _______ is prepared.

A trader has credited certain items of sales on approval aggregating Rs.60,000 to Sales Account of these goods of the value of Rs.16,000 have been returned and taken into inventories at cost Rs.8,000 though the record of return was omitted in the accounts. In respect of another parcel of Rs.12,000 the period of approval did not expire on the closing date. Cost of goods lying with customers should be :

Elle Ltd. sends out punching machine costing Rs.200 each to their customer on sales or return basis. All such transactions are however treated as actual sales and are passed through sales book. Just before the end of the financial year i.e. on December 27,2014 300 such punching machines were sent out at an invoice price of Rs.280 each, out of which only 90 such machines are accepted by the customers at Rs.250 each, and as to the rest no report is forthcoming. What will be the total effect on sales ?

On 31st March, 2015 goods at a sale price of Rs.60,000 were lying with customer whom these goods were sold on “sale or return basis” and goods sold recorded as actual sales. Since no consent has been received from customer, what will be the amount of inventories with customer sent on approval at a profit of cost plus 20% and present market value is 10% less than cost price ?

Under sale or return on approval basis, when transactions are few, the seller, while sending the goods, treats them as :

A sent some goods costing Rs.35,000 at a profit of 25% on sales to B on sale or return basis. B returned goods costing Rs.8,000. At the end of the accounting period i.e. on 31st  December, 2015, the remaining goods were neither returned nor were approved by him. The inventories on approval will be shown in the Balance Sheet at what value ?

A dealer send his goods on sale or return basis the sends goods for Rs.10,000 to record as normal sales. The profit on sale is 20%. The value of physical stock taken is Rs.50,000, then the value of closing stock appearing in the balance sheet will be :

Goods of Rs.800 sent on approval basis, were included in the Sales Book but approval has not been received. The profit included in the sales was at 25% on cost. At the time of year end while closing the books stock will increase by :

At the end of the year, the balance of trade debtors was Rs.1,20,000 which included Rs.8,000 goods sent on approval. The specified time limit for approval was yet to expire. Goods were sent on sale or return basis at cost + 25 %. What would be the value of inventories with customers on sale or return to be shown in Trading Account ?

When a large number of articles are sent on a sale or return basis, it is necessary to maintain.

Sale or Return Day book and Sale or Return Ledger are known as :