Sale of goods on Approval or Return Basis-Test 2

When there is general practice to sale goods on sale or return basis

What entry would be customer pass when he rejects the goods purchased on approval basis?

Under Sale on Approval, basis, At the end of the accounting year stock with the customer A/c is debited and _______ is credited with value of such goods.

_______ contains all personal real and nominal accounts.

_________ has separate columns for “goods sold” and “goods returned”.

________ is on the patterns of sales book.

Sales becomes only when the goods are accepted or the time period has expired

Sold and Returned Day Book and Sale or Return Day Book have synonymous functions

When goods sent on approval are returned an entry is made in the Sales Return Book

At the year end, our goods lying with the customer on approval will be included in our closing stock

A delivered a dog to Mr.X on the condition ‘sale or return within 10 days’. The dog died within 10 days. The loss will be borne by Mr. X.

The risk as to damage to the goods is that of the buyer as soon as the goods are sold on sale or return basis

Sales and Debtor A/c needs adjust for the goods lying with the customer for approval or return

Mr. X sent goods worth Rs.1,50,000 on 18th March on reject or approval basis. Out of which goods worth Rs.50,000 were accepted by the customers till 31st March and the remaining were still pending with the customers as on 31st March. How would you deal with the goods lying with the customer as on 31st March ?

Mr. X sent goods worth Rs. 1,50,000 on 21st March on reject or approval basis to Mr. Y goods worth Rs.75,000 was still pending with Mr.Y 31st March and the remaining was accepted by him. How would you deal with the goods lying with the customer as 31st March. Assuming that the goods were invoiced at 25% above the cost price

Out of the goods sent on approval basis amounting to Rs.12,500, goods worth Rs.4,000 were retained by the customer as on the due date. What would be the entry in the Supplier’s books of accounts ?

Under sales on return or approval basis, the ownership of goods is passed only

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

Under sales on returned or approval basis, when transactions are few, the seller, while sending the goods, treats them as

When Sale or Return Day Book and Sale or Return Ledger are maintained and the goods are approved by the customers, these are recorded:

Under Sales on Return or approval basis when the transactions are few and the seller sends the goods on approval or return basis, the accounting treatment will be–

When the goods are returned by the customers within the specified time, they are recorded

Under Sales or Return or approval basis when the transactions are moderate and the seller sends the goods on approval or return basis, the accounting treatment will be

Sale or Return Day Book and Sale or Return Ledger are known as

Under Sales on Return or approval basis when the transaction are large and the seller sends the goods on approval or return basis, the accounting treatment will be–

When Sales or Return Journal is maintained, a journal entry is passed for :

Under Sales on Return or approval basis when the transaction are few and the customer accepts the goods, the accounting treatment will be ______

Under sales on return or approval basis, when transactions are few and the seller at the end of the accounting year reverse the sale entry, then what will be the accounting treatment for the goods returned by the customers on a subsequent date ?

Which of the following is not a main column of sales or return journal ?

A company sends its cars to dealers on ‘sale or return’ basis. All such transactions are however treated like actual sales and are passed through the sales day book. Just before the end of the financial year. Two cars which has cost Rs.50,000 each have been sent on ‘sale or return’ and have been debited to customers at Rs.60,000 each, cost of goods lying with the customers will be :