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A trader purchased goods for Rs.4,000 at a trade discount of 5%. As he paid the amount immediately, a cash discount of Rs.100 was also allowed. In this case, Purchases A/c is debited by
Only Trade Discount must be reduced. Hence Purchases to be debited is Rs 4,000 - 5%*4,000 = Rs 3,800
Some of the goods purchased for trading are used for the construction of business premises. The account to be credited is___________
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
Starting with the Debit balance as per Cash Book, cheques deposited but not cleared will be
Increase in the value of Assets Rs.1,00,000 Decrease in the value of Liabilities Rs.50,000.Then owner's equity will
Net profit before charging manager's commission is Rs.49,500 and the manager is to be allowed a commission of 10% on the profit after charging such commission. Commission amount will be___
Goods costing Rs.8,000 were destroyed by fire. Insurance company accepted a claim of Rs.5,000. The amount to be credited to Purchases / Trading A/c will be___
Capital introduced at the beginning by ram rs. 13,000 further capital introduced during the year rs 3,000. Drawings rs 4,000 and closing is rs 20,000. The amount of net pro it will be
Rent paid on 1st October, 2016 for the year to 30th September, 2017 was Rs.1,50,000 and rent paid on 1st October, 2017 for the year to 30th September, 2018 was Rs.1,80,000. Rent paid, as shown in the Profit and Loss account for the year ended 31st December 2017, would be:
The purpose of accommodation bill is:
These bills are discounted by the bank and the proceeds are either retained by the drawer or shared by the two-drawer and drawee.
On 15.02.17 X draws a bill on Y for 30 days. Y accepted the bill on 18.02.17. The maturity date of the bill will be:
Since the nature of the bill is not given it is assumed to be a bill drawn at sight. Hence, 30 days will start from 18/2/17. Therefore the due date is 20/3/17 + 3 days = 23/3/17
For mutual accommodation of Mita and Rita, Rita accepted a bill drawn on her by Mita for Rs.7,500. The said bill is discounted by Mita at Rs.7,400 and remitted l/3rd of the proceeds to Rita. To honour the bill, the amount to be paid by Mita to Rita on the due date will be
Ram draws a bill on Rahim for Rs.15,000. The bill was discounted with Bank at Rs.14,900. On the due date the bill was dishonoured and the noting charges amounted to Rs.50. What is the amount to be debited by Bank to Ram's account?
G draws a bill on R. G endorses the bill to S. On the due date the bill is dishonoured. On dishonour, which account is credited in the books of G?
600 boxes of goods are consigned at a cost of Rs.250 each. Consignor's expenses amounted A o to Rs.3,000. l/6th of the boxes are still in transit. 3/5th of the boxes received consignee are sold at Rs.300 each. The value goods in transit will be
MN of Mumbai sent out goods costing Rs.4,00,000 to QR of Delhi on consignment basis. Consignee is paid an ordinary commission of 2% and a delcredere commission of 3% on sales. The entire goods were sold by consignee for Rs.5,00,000. However, the consignee could recover Rs.4,92,000 from the trade receivables. In the books of consignee, the commission to be transferred to Profit & Loss A/c will be____
Mr. Mehta sent 1,000 shirts costing Rs.400 each to Mr. Kehta on consignment basis. Mehta paid Rs.20,000 as expenses. Kehta sold 900 shirts at Rs.500 each. His selling expenses amounted to Rs.15,000. Find the value of closing inventory.
P & Q entered into a joint venture. P purchased 5,000 units of goods at Rs.30 each. Q sold Rs.4,800 units at Rs.50 each. The remaining goods were taken over by Q at a value of Rs.5,000. P is allowed a commission of 2% on purchases and Q is allowed a commission of 1% on sales. Find the share of Q in the profit of joint venture.
Mukesh and Vimal entered into a Joint Venture. Mukesh purchased goods for Rs.36,000 and paid Rs.3,900 as expenses. Vimal purchased goods for Rs.17,000 and paid Rs.3,000 as expenses. Entire goods were sold for Rs.65,000. They share profits and losses in the ratio of 2:1. The final remittance to Mukesh will be_______
Which of the following expenses is not included in the acquisition cost of a plant and equipment?
A machinery was purchased for Rs.6,00,000 on 1.04.2012 and paid Rs.30,000 on its installation. It is estimated that the useful life of the machinery is 10 years and its scrap value is Rs.20,000. The amount of depreciation to be charged for the year ending 31.03.2017 will be____
The book value of a machinery on 1.04.16 was Rs.70,000. Depreciation is charged at 10% p.a. under W.D.V Method on 31st March every year. The machine was sold for Rs.60,000 on 1.08.17. Calculate the Profit / Loss on sale of machinery
The objectives of providing depreciation on an asset are
A machine is purchased for Rs.3,00,000. Its estimated working life is 28,000 hours, the Scrap value is Rs.20,000. Anticipated pattern of working hours are as follows:
Depreciation for the 8th year is_
A sales return of Rs.2,000 has been wrongly posted to the credit of Purchase Returns account, but has been correctly posted to the customer's account. The effect on the tri balance will be
While finalizing the current year's profit, the company realized that there was an error in the valuation of closing inventory of the previous year. In the previous year, closing inventory was valued more by Rs.50,000. As a result.
An amount of Rs.500 received from a customer has been debited to his account. This error is classified a s ________ .
Under sales on return or approval basis, the ownership of goods is passed only
Goods were sent to a customer on Sale or Return basis at cost +30%. The invoice price is Rs.6,500. At the end of the year market value of the goods is 5% less than the cost. Closing inventory is valued at
A trader has an opening inventory of Rs.70,000 on 1.1.2016, which consists of a slow moving item costing Rs.10,000 and was written off by 2,000. This item was sold for Rs.9,000 during the year. Barring this transaction, the gross profit on sales for the year 2016-17 remained at 20%.The sales and purchases during the year amounted to Rs.5,09,000 & Rs.3,78,000 respectively. Find the value of closing inventory on 31.03.2017.
During a year the sales and purchases of a firm amounted to Rs.4,00,000 and Rs.4,00,000 respectively. Opening inventory was Nil. Closing inventory at selling price was Rs.1,00,000. Find out the cost of closing inventory using Adjusted Selling Price Method.
E Ltd, a dealer in second-hand cars has the following four vehicles of different models and makes in their inventory at the end of the financial year 2009-2010.
The value of inventory included in the balance sheet of the company as on March 31, 2010 was:
Guarantees given in respect of third parties will be considered as
In the absence of any provision in the partnership agreement, profit and losses are shared
R, S and T are partners sharing profits and losses in the proportion of 3:2:1. S retired and the new profit sharing ratio between R and T is 3:1 and the Reserve of Rs.15,000 is divided among the partners in the ratio of_____
Calculate the value of goodwill of a firm under Capitalization Method.Capital Employed in the firm Rs.6,00,000 Reasonable Rate of Return 14%
Average Profit Rs.1,12,000
At the time of retirement of a partner, firm gets ______ from the insurance company against the Joint Life Policy taken jointly for all the partners,
Goodwill brought in by incoming partner in cash for joining in a partnership firm is taken away by the old partners in their____________ratio
Jain and Deepak are partners in a firm with no partnership agreement. The profit for the year was Rs.14,200. Deepak claimed interest @ 12% p.a. on the loan of Rs.70,000 given to the firm. Calculate the share of Jain and Deepak in the profit of the firm.
Interest to be given to Deepak = 6%*70,000 = Rs 4,200 Balance Profits = Rs 10,000 to be shared equally Hence, Jain will get Rs 5,000
Deepak will get Rs 5,000 + 4,200 = Rs 9,200
The part of share capital which can be called up only on the liquidation of a company is called
On admission of a partner unrecorded investments worth Rs.5,000 and unrecorded liability towards suppliers for Rs.1,500 will be recorded in
A company issued 30,000 shares of Rs.10 each, payable as Rs.3 on application, Rs.3 on allotment and Rs.4 on call. Applications were received for 50,000 shares. Allotment was made on pro-rata basis. Excess application money was refunded. Mr. X, a holder of 100 shares failed to pay the call money. His shares were forfeited. The above transactions are related to
Bajaj ltd . Issued 4,000 shares of Rs.10 each at a premium of 20%, payable as Rs.5 on application, Rs.3 on allotment and Rs.4 n call. Mr.Q, a holder of 100 shares failed to pay the allotment and call money. His shares were forfeited. The amount to be credited to Forfeited Shares A/c will be _____
Explanation:The answer is 300
share capital ac dr 1000
To share forfeiture ac 300
To share allotment ac300
To share first call ac400
A company issued 15,000 shares of Rs.10 each.Called up value per share is Rs.8. A holder of 250 shares paid Rs.2 per share only. On forfeiture of his shares, Share Capital A/c is debited by_____
A company forfeited 100 shares of Rs.10 each, on which Rs.5 per share was already paid up. Out of them 70 shares are reissued at Rs.7 per share as fully paid up. The amount to be transferred to the Capital Reserve A/c will be______
Discount on issue of debentures is a __
Preference shares amounting to Rs.3,00,000 are redeemed at a premium of 5%, by issue of equity shares amounting to Rs.2,00,000 at a premium of 3%. The amount to be transferred to Capital Redemption Reserve = ?
LT Ltd. purchased land and building from AB Ltd. for a book value of Rs.22,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a premium of 10%. The Debentures A/C is credited by_____.
Which of the followings statements is false?
Which of the following is not a fundame accounting assumption?
A change in accounting policy is justified
Cost of inventory Rs. 1,00,000; Market Value Rs.80,000. If the inventory is valued at Rs.1,00,000, which of the following accounting concepts is violated?
Economic life of an enterprise is split into some periodic intervals as per__concept.
According to _____concept, the same method of accounting is to be followed year after year.
Benefits of Accounting Standards are
Purposes of an accounting system include all the following except
Average inventory = Rs.30,000. Closing Inventory is Rs. 5,000 more than opening inventory. Then the value of closing inventory will be
General Manager gets 6% commission on net profit after charging such commission. Gross profit Rs.60,000 and other indirect expenses other than manager's commission are Rs.7,000. Commission amount will be
Executory contract is__________
The offer can be lapsed in case of ___
An offer open for acceptance over a period of time is _______
A specific proposal is___________
A contract formed out of love and affection is valid, if it is___
Where both the parties to an agreement under a mistake as to a matter of fact, which is essential to the agreement, the agreement is _
If a consent of a party is not free, then the contract is_________
Mere silence as to facts likely to affect the desire of the party does not amount t o ____
Contingent contract is always_____
'A' delivered goods to B's warehouse by mistake. 'B' uses the goods. 'A' asks 'B' for the price of the goods. This is_____
The contract is discharged under mutual agreement through_____
'X' owes Rs.15, 000 to Y . Y pays Rs. 12,000 in full and final settlement of account. This is___
'X' agrees Y to work from 1-4-17. On 27-3-17, he writes a letter to 'y' that no need to join in work. It is____type of breach.
Supervening impossibility is an
Which of the following statements is false regarding rescission?
Every partner is liable in the firm____
Where there is no provision for the duration of partnership, then it is known as_______
Sanju and Manju are tailors. Manju takes all the profits and gives wages to Sanju. The relationship between Sanju and Manju is__
The partnership will be compulsorily dissolved in case of ____________
A minor joined for benefits of partnership has a right to ______
In the absence of any agreement, partners will share the profits in ____
A, B, C are active partners in the firj retires without giving public notice retirement. 'B' and 'C' carries on the business of the firm, and incurs liability. In this case___
A retiring partner who was an active partner is liable for all acts of the firm until the date of public notice.
The partner of a firm agrees to share profits with an outsider but not the rights of firm. Such outsider is called_______
Sub-partner: When a partner agrees to share his share of profits in a partnership firm with an outsider, such an outsider is called a sub-partner. Such a sub-partner has no rights against the firm nor he is liable for the debts of the firm.
In unregistered firm, a partner can sue for ___
Which of the following statements is false?
Which of the following is not a mode of delivery?
An unpaid seller has rights against
Bill of lading is issued by_______
Under the sale of goods Act, 1930 property means
Breach of Warranty gives rise t o _____
It there is a contract for sale of specific goods under deliverable state, the ownership will passes______
Risk follows from seller to buyer when _____
'P' sold 100 refrigerators to 'Q'. They are kept in the warehouse. The seller (P) told to the warehouse keeper to keep the goods on behalf of 'Q '. This is _________ delivery.
When goods are delivered to the buyer on approval or on sale or return basis, the property in the goods transferred to the buyer when ____
'P' for sale of a property appoints 'Q' as a mediator with a commission of Rs.20,000. 'Q' found the customer 'R' who paid Rs. 50,000 as an advance to 'Q'. Later 'P' refuses to sell the property. Can 'R' claim advance back from' Q'?
Which of the following is not a type of document of title to goods?
A sent wheat to B and B sent the same to mill. Here it is said that