Test: Sale Of Goods On Approval Or Return Basis - 2


15 Questions MCQ Test Principles and Practice of Accounting | Test: Sale Of Goods On Approval Or Return Basis - 2


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QUESTION: 1

 A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31-12-2011, it was found that 100 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of stock on approval will be amounting

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QUESTION: 2

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

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QUESTION: 3

 In the Sale or Return Ledger 

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QUESTION: 4

 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:

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QUESTION: 5

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

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QUESTION: 6

A sent some goods costing Rs. 3500 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: 

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QUESTION: 7

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?

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QUESTION: 8

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 :-

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QUESTION: 9

Memorandum records of sale on approval is a part of :

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QUESTION: 10

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. 

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QUESTION: 11

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, 2011, the remaining goods were neither returned nor were approved by him. The Inventories on approval will be shown in the balance sheet at Rs.

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QUESTION: 12

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 ton approval for Rs. 50,000 which has not been approved yet. Calculate the net sales:

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QUESTION: 13

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

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QUESTION: 14

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 (cost being Rs. 6,000) the period of approval did not expire on the closing date. Cost of goods lying with customers should be

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QUESTION: 15

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

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