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A bill drawn and accepted for mutual help is known as ____ bill
Financial position of a business concern is ascertained on the basis of _____
Inventory is valued either at cost or market price whichever is lower, according to the principle of ____
Debentures can be _________.
I. Mortgage Debentures or Simple Debentures
II. Registered Debentures or Bearer Debentures.
III. Redeemable Debentures or Irredeemable Debentures.
IV. Convertible Debentures or Non-convertible Debentures.
Total assets = Rs. 3,06,000
Secured loans = Rs. 1,00,000
Unsecured loans = Rs. 60,000
Contingent Liabilities = Rs. 1,46,000
Capital = ?
Insurance claim received on machinery destroyed by fire is a ____
The asset itself will be modified, its value should be accounted for depreciation and totaled, the claim should be added to the net value make it net/ loss.
The income of the banking interest comes from
In Journal & ledger transactions are recorded in ______ order respectively
The minimum application money should be _________ of nominal value as per SEBI guidelines
A decrease in the provision for doubtful debts would result in _____
On 05-01-16, Mr. A draws a bill on Mr. B for 30 days after sight. The bill was accepted on 08- 01-16. Then the date of maturity of the bill will be ____
Purchases = Rs. 25,00,000
70% of the goods are sold
Closing inventory is valued at Rs. 5,00,000 instead of at Rs. 7,50,000.
Which concept has been followed?
When Del-credere commission is paid, bad debts will be debited to ____ A/c in the books of consignee
Credit balance of bank pass book will be ___ to the account holder.
P & Q are partners in a firm sharing profits and losses in the ratio of 5 : 3. R is admitted as a new partner for 1/5th share. Then the sacrificing ratio will be ____
A & B are partners in a firm with capitals of Rs.5,00,000 each. C joined as a new partner for 1/4th share in profits with a capital of Rs.8,00,000. The credit balance of Profit & Loss a/c is Rs.4,00,000. Find the value of hidden goodwill.
The subscribed share capital of S Ltd. is Rs.80,00,000 divided into shares of Rs.100 each. There were no calls in arrears till the final call was made. The final call made was paid on 77,500 shares. The calls in arrears amounted to Rs.67,500. The final call per share=?
If repair cost is Rs.30,000, whitewash expenses are Rs.6,000, cost of extension of building is Rs.3,00,000 and cost of improvement in electrical wiring system is Rs.22,800; the amount to be expensed is
Goods sent on consignment = Rs. 2,00,000
Consignor’s expenses = Rs. 5,000
Consignee’s expenses = Rs. 2,000
Cash sales = Rs. 1,00,000
Credit sales = Rs. 1,10,000
Closing Inventory = Rs. 40,000
Ordinary Commission = Rs. 3,000
Del-credere commission = Rs. 2,000
Bad Debts = Rs. 2,000
Find the profit on consignment.
On March 31, 2015 after sale of goods worth Rs.50,000, he is left with the closing inventory of Rs.20,000. This is
A plant was purchased on 01-04-2010 for Rs.3,50,000. The useful life was estimated to be 5 years and scrap value as Rs.50,000. Calculate the rate of depreciation under Straight line method.
Opening inventory = Rs. 23,200 Cost of goods sold = Rs. 3,22,800 Closing inventory = Rs. 24,000 Purchases =?
Stock worth Rs. 50,000 was destroyed by fire. The claim was fully accepted by the insurance company. The journal entry is
WYE ltd redeemed 1,000, 10% preference shares of Rs.100 each at a premium of Rs.10 per share. The company had a balance of Rs.50,000 in general reserve and Rs.27,000 in Profit & Loss a/c. For the purpose of redemption the company issued 5,000 equity shares of Rs. 10 each at a premium of 20%. The amount to be transferred to Capital Redemption Reserve will be
Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/c
Mr. Sobby draws a two months bill of Rs. 50,000 on Mr. Dobby. Dobby accepts it on 01- 02-16. Sobby discounts it on 15-02-16 at 18% per annum. On the due date of bill Dobby became insolvent and 50 paise in a rupee could only be recovered from his estate. Calculate the amount of bad debt
Opening capital = Rs. 45,000
Interest on capital = Rs. 2,000
Interest on drawings = Rs. 5,000
Drawings = Rs. 14,000
Profit = Rs. 15,000
Closing Capital = ?
Sales for the year ended 31st March, 2010 amounted to Rs.10,00,000. Sales included goods sold to Mr. A for Rs.50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer’s risk. Therefore, such goods should be treated as part of
Profit of the year = Rs. 6,00,000 Capital employed = Rs. 4,00,000 Normal rate of return = 15% Calculate the value of goodwill under capitalization method
A & B are partners in a firm sharing profits and losses in the ratio of 5 : 3 with capitals of Rs.2,50,000 and Rs.2,00,000 respectively. C is admitted as a new partner who brings Rs.50,000 as capital and Rs.16,000 as goodwill for his 1/5th share. The closing capitals of all the partners will be
If preference shares are redeemed out of divisible profits, the nominal value of preference shares should be transferred to ___
Which of the following statements is not true?
Which of the following statements is/are false? I. The terms ‘depreciation’, ‘depletion’ and ‘amortization’ convey the same meaning. II. Provision for depreciation A/c is debited when provision for depreciation A/c is created. III. The main purpose of charging the profit and loss A/c with the amount of depreciation is to spread the cost of an asset over its useful life for the purpose of income determination.
What is the value of inventory at the end of the year as per conservatism principle?
Sunset Tours has a Rs.70,000 account receivable from Mohan. On January 20, the latter makes a partial payment of Rs.50,000 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:
Which of the following can be utilized for redemption of preference shares?
Mr. X consigned goods costing Rs. 1,50,000 to Mr. Y at cost + 25%. 1/10 of the goods were lost in transit. Mr. Y sold 3/5th of the remaining goods at 10% above the invoice price. Calculate the amount of sales.
If goods are sent on sale or return basis, it will be treated as _____
Amount recovered from debtor, which was earlier written off as bad debt is debited to Cash A/c and credited to ___ A/c
From the following balances find out the total of trial balance.
Capital Rs. 4,00,000
Computer Rs. 25,000
AC & Furniture Rs. 1,00,000
Fixed deposits Rs. 2,00,000
Salaries Rs. 8,00,000
Fees Received Rs. 12,00,000
Traveling expenses Rs. 1,50,000
Rent & office expenses Rs. 2,40,000
Cash Rs. 1,80,000
Bank O.D Rs. 95,000
Sohan purchased goods for Rs.18,00,000 and sold 4/5th of the goods for Rs.21,60,000 and met expenses amounting to Rs.3,00,000 during the year, 2015. He counted net profit as Rs.4,20,000. Which of the accounting concepts was followed by him?
Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?
Rent received from a tenant Rs. 18,000 was correctly entered in the cash book and posted to the debit of Rent a/c. The effect of this error on the trial balance will be
Oye Ltd. Issued 10,000 equity shares of Rs. 100 each at a premium of 20%. The money is payable as Rs.30 (including premium) on application, Rs.50 on allotment, Rs.20 on First call & Rs.20 on Final call. The company received applications for 15,000 shares and allotment was made on prorata. H, the holder of 400 shares failed to pay allotment money and on his subsequent failure to pay the 1st call money, the company forfeited his shares. The amount to be transferred to Share Forfeiture A/c at the time of forfeiting his shares will be
On March 31, 2015, the value of inventory as per physical Inventory-taking was Rs. 10,45,000. The company’s gross profit on sales has remained constant at 25%. The management of the company suspects that some inventory might have been pilfered by a new employee. What is the cost of goods sold & estimated cost of missing inventory?
A holder of 100 shares of Rs. 10 each, failed to pay the final call money of Rs. 4 per share. These shares were forfeited and reissued at Rs. 7 per share as fully paid up. The entry on reissue will be
Can a minor be admitted into a joint venture?
Overdraft balance as per Cash book Rs. 4,500 Cheques issued, but not presented Rs. 300, Rs. 150, Rs. 375 Cheques paid into bank account, but not cleared Rs. 1,200 Find the balance as per Pass Book
From the following data, find out the gross profit on the inventory sold under weighted average price method
1st Jan – opening inventory – 1000 units @ Rs. 4 per unit
15th Jan – Purchases – 1100 units @ Rs. 5 per unit
30th Jan – Purchases – 1300 units @ Rs. 6 per unit
Sales during the month – 3000 units @ Rs. 10 per unit
X sends out goods costing Rs.2,00,000 to Y. 3/5th of the goods were sold by consignee for Rs.1,40,000.Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of commission will be:
Study the following table and answer
If gross profit is 20% of sales, the gross sales will be:
Rohit, Suman and Rohan are partners sharing profits & losses in the ratio of 2 : 1 : 1. They took a JLP for Rs. 1,00,000. Besides they took policies severally amounting to Rs.50,000 each. Rohit died on 30th September, 2015. The surrender values of the policies will be 30% of the policy values. What is the share of Rohit in the life policies?
The net profit of X & Co. was Rs.7,02,000, before charging Mehta’s (Manager) salary and commission. Mehta was entitled to a salary of Rs. 6,000 per month plus a commission of 5% on net profit after charging his salary and commission. Calculate the amount payable to Mehta.
A machine was purchased on 01-04-2012 for Rs.15,00,000. The scrap value is estimated at Rs.50,000. Depreciation is charged at 15% p.a. under WDV method. The machine was sold on 01-07-2015 for Rs.9,04,115. Calculate the profit.
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 the accounting period i.e. on 31st December, 2014, the remaining goods were neither returned nor were approved by him. The Inventories on approval will be shown in the balance sheet at Rs.
On 09-01-2016, the physical inventory of a business concern is taken at Rs.70,000. The following transaction took place between 01-01-2016 and 09-01-2016. Goods sold Rs.48,000, at a profit of 25% on cost which includes goods of the sale value of is Rs.5,000 not delivered to customer and of Rs.3,000 delivered on 29-12-2015. Calculate the value of physical inventory as on 31-12-2015.
A telegraphed to B “will you sell me your house? Let me know the lowest price” B replied “Lowest price is Rs.900.” A agreed to buy and asked for title deeds. There is no reply from B. Is B under obligation to sell?
A and B entered into a contract where first part is legal and the second is illegal. Here former part is ____ and later part is ______
An agreement in which consideration is unlawful becomes ____
Doctrine of privity of contract means:
Which is false regarding consideration?
In case of misrepresentation, parties have option to
A buys a lottery ticket of Rs. 500/-. It comes under ____ agreement/contract.
An agreement in restraint of marriage is _____
In case of wagering agreement, the event is __
Wagering agreement is of _______ nature
If a creditor does not file a suit against buyer for recovery of price with is 3 years, the debt becomes
_______ of contract can take place without consideration
The subsequent change in law leads to ____
On which of the following grounds, a partner need not apply to the court for dissolution of the firm:
Some persons formed a group to collect money for the purpose of giving financial assistance to widows. Here is:
In case of no agreement among partners insolvency of partner leads to:
Which of the following is/ are partnership/s?
Right of a partner to open a bank account on behalf of the firm in his own name is not with in the scope of ____ authority.
Non registration of the firm will not effect the following:
Which of the following is incorrect?
The partner who gets share its profits:
In case of partnership, dissolution can be done by notice in case of
A,B and C are partners in a financial firm. X a customer of firm deposits certain securities with the firm for safe custody. A & B sell away the securities without the knowledge of C. who will be liable for damages?
A Contracts with B to sell a new Car. But A delivers an old Car. Here is:
In an agreement to sell, transfer of property takes pace in _____
In a contract of Sale, Condition is ____ to main purpose of contract.
Auctioneer is ____ of owner of goods
In which of the following cases, the seller can exercise right of stoppage of goods in transit:
X agrees to deliver 100 kgs. Of wheat in exchange of 10 liters of milk. It is:
In an agreement to sell where goods are under the possession of seller and buyer breaches the contract, the remedy available to seller is :
In a contract of sale, consideration can be :
A document becomes document of title to goods if _______ undertaking to deliver the goods to holder exists
A horse is sold on sale or return basis where trial period is 3 days. Horse dies on second day with out fault of either party. Who has to bear the loss?
The buyer of goods gets good title, if the seller had acquired goods under
When agent sells goods on behalf of principal, the buyer gets good title where the agent is