Sale of goods on Approval or Return Basis -Test 3

When goods are sold on ‘sale of Return basis’ the book (s) or account (s) as is/are kept by the firm are

(i) Sale or return day book

(ii) Sold and returned day book

(iii) Sale or return Ledger

(iv) Main Ledger

When goods of sale or return basis, transactions are only casual, on Sale of goods on approval

When goods are sold on approval basis, the ownership in the goods is transferred to the buyer when

Which of these statements is true ?

Which of these statements is not true ?

The goods lying with the customer pending approval are valued at

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

At what price goods pending approval or return as on the last day of accounting year are valued

Which among the following is not a method to Account for ‘Sale on Approval’ basis ?

In a sale on approval basis, what entry would the supplier pass when the customer accepts goods ?

_______ is the real ledger of the business.

________ may also be known as a “kacha ledger”.

As soon as the goods are sold on ‘Sale or return’ basis, they are recorded is ______ .

Sales on return or approval basis is not a sale

Sale and Return Day Book may be maintained as a memorandum records

Goods sent on approval are treated as sale on dispatch of goods

In case of goods sent on Sale or return basis, the buyer has a right to return the goods any time he likes

Sales or Return Account in the Sale or Return ledger represents the value of goods still lying with the customers for approval

Mr. X delivered some goods to Mr.Y on sale or return Mr. Y pledged it with Mr.C, Mr. Y is deemed to have accepted the goods.

Goods lying with the customer needs to be included in the closing stock at cost price.

Out of the goods sent on approval basis amounting to Rs.10,500, the customer retained goods worth Rs. 4,500 and they returned goods worth Rs. 4,000 on the due date. What would be the Journal entry in the Supplier’s books of accounts ?

Mr. X sent goods worth Rs. 75,000 on 18th march 2006 on sale or return basis, Goods worth Rs. 25,000 were still pending with the customers as on 31st march and the remaining were accepted by the customer. How would you deal with the goods lying with the customer as on 31st March. Assuming that the goods were invoiced at 25% above the cost price

Mr. X sent goods worth Rs. 1,50,000 on 18th March on reject or approval basis. Out of which goods worth Rs. 30,000 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. Assuming that the goods were invoiced 20% profit on sales

Which types of account is sale or return day book

What account is credited for goods lying with the customer as on the last day of the accounting year ?

When goods are sold on approval basis, the ownership in the goods is deemed to be transferred to the buyer if the buyer fails to

When goods are sold on approval basis, the buyer has an option to either accept the

Goods sent on sale of return basis would be recognized sales only when

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

When number of transactions of sales on “Sale or return” basis are more, sale or return day book may be maintained as