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CBSE Questions for Class 11 Commerce Accountancy Financial Statements 1 Quiz 12 - MCQExams.com
CBSE
Class 11 Commerce Accountancy
Financial Statements 1
Quiz 12
Opening Inventory Rs.1,00,000, Purchase Rs.4,00,000 , Sales Rs.3,00,000, Selling Price -1/3rd on cost. Goods costing Rs.25,000 destroyed by fire. The estimated cost of closing inventory is ______________.
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0%
Rs.1,75,000
0%
Rs.2,75,000
0%
Rs.2,50,000
0%
Rs.2,00,000
The total cost of goods available for sale with a company during the current year is Rs.12,00,000 and the total sales during the period are Rs.13,00,If the gross profit margin of the company is 1/3rd on cost , the closing inventory during the current year is ____________.
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0%
Rs.4,00,000
0%
Rs.3,00,000
0%
Rs.2,25,000
0%
2,60,000
Opening stock Rs.1,00,000 ; Closing stock Rs.2,75,000, Purchases Rs.4,00,000,Selling price -25% on sales. The sales are ____________.
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0%
Rs.2,81,250
0%
Rs.2,70,000
0%
Rs.3,00,000
0%
Rs.7,56,475
Opening inventory Rs 12,00,000 ,Purchases Rs 68,00,000 ,Sales Rs 96,00,The value of closing inventory as per physical stock was Rs 6,50,The company's gross profit on sales has remained constant at 25%. The management of the company suspects that some inventories might have been pilfered by a new employee . What is the estimated cost of missing inventory ?
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0%
Rs.1,50,000
0%
Rs.50,000
0%
Rs.2,00,000
0%
Rs.3,00,000
Explanation
Particular
Amt
Particular
Amt
To Opening Inventory A/c
1200000
By Sales A/c
9600000
To Purchase A/c
6800000
By Missing Inventories A/c
(balancing figures)
150000
To Gross Profit A/c
9600000*25%
2400000
By Closing A/c
650000
The missing inventory value can be found out by deducting Dr. Column with Cr. Column.The balancing figure in the above table shows the value of missing inventory i.e. Rs.150000
Opening Stock Rs.44,000;Closing stock Rs.50,000; Purchases less returns Rs.2,20,000;Gross profit margin (on sales ) 20%. The sales of the company are ______________.
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0%
Rs.2,82,500
0%
Rs.2,71,200
0%
Rs.2,67,500
0%
Rs.2,56,800
Opening stock Rs.60,000; Closing stock Rs.80,000; Purchase Rs.11,20,000; Return outward Rs.30,000; Return inward Rs.40,000 Carriage inward Rs.10,000; If the gross profit is 20% of net sales the gross sales are _____________.
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0%
Rs.13,90,000
0%
Rs.13,50,000
0%
Rs.13,80,000
0%
Rs.13,37,500
Cost of goods available for sales Rs.5,00,000, selling price =25% on sales ,Closing Inventory Rs.2,75,The sales are _____________.
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0%
Rs.2,00,000
0%
Rs.2,81,250
0%
Rs.3,00,000
0%
None of these
The cost of inventory as per physical verification as on 24th March was Rs.4,00,Goods are sold at a profit of 25% on cost .
On, 27th January goods of the sale value of Rs.1,00,000 were sent on sale or return basis to customer, the period of approval being two weeks.He returned 20% of the goods on 31st March.
The cost of inventory as per book will be ?
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0%
Rs.4,00,000
0%
Rs.3,36,000
0%
Rs.4,48,000
0%
None of these
Explanation
Cost of inventory as on 24th march in the books of accounts will be 4,00,000 because the transactions have taken place on 27th January , which will have no affect on the stock on 24th March.
CAS Ltd. follows perpetual inventory system. On March 31 of every year, the company undertakes physical stock verification. On March 31, the value of stock as per the records differed from the value as per the physical stock. On scrutiny, the following differences were noticed: Goods purchased for Rs.20,000 were received and included in the physical stock but no entry was made in the books. Goods costing Rs.60,000 were sold and entered in the books but the stock is yet to be delivered. Goods worth Rs.10,000 are returned to the suppliers but is omitted to be recorded. If the inventory is valued in the books at Rs.3,00,000, the value of the physical inventory is ________________.
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0%
Rs.2,22,000
0%
Rs.3,78,000
0%
Rs.3,70,000
0%
Rs.3,18,000
Explanation
Value of inventory as per books = 3,00,000
Add:- Goods purchased but omitted to be recorded = 20,000
Goods sold not yet delivered = 60,000
Less:- Goods returned to supplies not accounted in books = (10,000)
-----------------
Value of physical inventory = 3,70,000
Trading Account is closed by transferring its balance to the _______________.
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0%
Capital A/c
0%
Profit & Loss A/c
0%
Manufacturing A/c
0%
None of these
Explanation
Trading account is closed by arriving at a figure called gross profit. Gross profit is calculated deducting cost of goods sold from sales. Gross profit is then transferred to the profit and loss account from which all the non operating expenses are deducted and non operating incomes are added to arrive at net profit.
Operating Cost is equal to _________________.
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0%
Cost of Goods Sold + Operating Cost
0%
Cost of Goods - Operating Expenses
0%
Sales - Gross Profit
0%
Sales - Operating Profit
Explanation
Operating cost = sales - operating profit
Operating cost include all the costs that are related to the business directly. By deducting operating profit from sales we will get the operating cost of the business.
X who was closing his book 31st march failed to take the actual stock which he did on 9th April, when it was ascertained by him to be worth Rs.50,000
It was found that sales are entered in the Sales Day Book on the same day of dispatch and the returns inward in the return book as and when goods are received back . Purchases are entered in the Purchase Day Book once the invoices are received .Observations-
(i) Sales between 31st March and 9th April as Sales Book are Rs.1,720.Rate of gross profit is 1/3rd on cost.
(ii) Purchases during the same period as per Purchases Book are Rs.120.
(iii) Out of above purchases , goods amounting to Rs.50 were not received until after the stock was taken.
(iv) Goods invoiced during the month of March , but goods received only on 4th April , amounted to Rs.100.
The Value of physical stock on 31st March is ________________.
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0%
Rs.51,320
0%
Rs.51,120
0%
Rs,31,190
0%
Rs.48,530
Explanation
Stock as on 9th April = 50,000
Add:-cost of sales during 31st march to 9th April = 1,290
( 1790 x 100/133.33)
Less:- Purchases during the period (120 - 50) = ( 70)
Goods not received until 31st march = (100)
------------------
= 51,120
Cost of stock as per books is Rs.2,38,000
Goods purchases for Rs.10,000 received but omitted to be recorded
Goods costing Rs.20,000 were sold & delivered but omitted to be recorded
Goods costing Rs.5,000 were returned by customers but omitted to be recorded.
Goods costing Rs.3,000 were returned to suppliers but omitted to be recorded.
The value of physical inventory is ___________.
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0%
Rs.2,26,000
0%
Rs.2,30,000
0%
Rs.2,46,000
0%
None of these
Explanation
Cost of stock as per books 2,38,000
Add:- purchases recorded but omitted to be recorded 10,000
Less;- Goods sold, not recorded (20,000)
Add:- Goods returned by customers 5,000
less:- Goods returned to suppliers (3,000)
---------------
Cost of physical inventory 2,30,000
The debit balance in the Profit & Loss Account is ___________.
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0%
Surplus
0%
Real Asset
0%
Gain
0%
Loss
Explanation
The debit balance of a profit and loss account denoted loss. Debit balance of the profit and loss account shows that the expenses were more than the incomes.
The credit balance in the Profit & Loss Account is ___________.
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0%
Loss
0%
Real Asset
0%
Liability
0%
Profit
Explanation
A profit and loss account records all the incomes and expenses that have taken place in the year. All the expenses are recorded on the debit side whereas all the incomes are recorded on the credit side. When the credit side is more than the debit
side
it denotes profit. Hence, Credit balance of Profit and loss account is profit.
Physical verification of stock was done on 23rd June the value of stock was Rs.5,00,000 following transactions took place between 23rd June and 30th June-
(i) Out of goods sent on consignment , goods costing rs.24,000 were unsold.
(ii) Purchased of Rs.40,000 were made , out of which goods worth Rs.16,000 were delivered on 5th July.
(iii) Sales were Rs.1,36,000 Which include goods worth Rs.32,000 sent on approval . Half of these goods were returned before 30th June nut no intimation is available regarding the remaining goods. Goods are sold at cost plus 25% . However, goods costing Rs.24,000 had been sold for Rs.12,000.
The value of stock as per book on 30th June is _______________.
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0%
Rs.5,00,000
0%
Rs.5,64,000
0%
Rs.4,56,000
0%
Rs.4,66,000
Trading Account is prepared to ascertain _________________.
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0%
Operating profit
0%
Net profit
0%
Cost of Goods Manufactured
0%
Gross profit
Explanation
Trading account is prepared to calculate gross profit or gross loss. Trading account takes into account purchases, sales and all the direct expenses. Hence, gross profit is calculated by deducting cost of goods sold from sales.
In books of manufacturing concern, Opening Stock consists of _______.
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0%
Raw Materials
0%
Work in Progress
0%
Finished goods
0%
All of the above
Explanation
Opening stock includes raw material, work in progress and finished goods. Raw material are the products purchased to convert into finished goods. Work in progress are the raw materials which are in the process of getting converted into finished goods. Finished goods is the output that is converted from the raw material. All these are a part of the inventory.
The gross profit ratio is the ratio of gross profit to ______________.
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0%
Capital employed
0%
Net credit sales
0%
Net cash sales
0%
Net total sales
Opening Stock Rs. 40,000, Purchases Rs. 3,36,000, Closing Stock Rs. 1,30,000, Sales Rs. 3,80,000, Carriage inward Rs. 6,000, Freight inward Rs. 4,000, Wages and salaries Rs. 50,000, Returns inward Rs. 20,000, Returns outward Rs. 40,The market value of closing stock was Rs. 1,20,000.
The Gross Profit for the year is __________.
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0%
Rs. 60,000
0%
Rs. 70,000
0%
Rs. 90,000
0%
None
Opening Stock Rs. 1,00,000, Sales Rs. 5,00,000, Gross Profit @ 25% on sales, Purchases Rs. 5,00,000, Closing stock is ___________.
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0%
Rs. 1,25,000
0%
Rs. 2,25,000
0%
Rs. 3,00,000
0%
Rs. 3,25,000
Explanation
Closing stock = (Opening stock + purchases + gross profit) - sales
= (1,00,000 + 5,00,000 + 1,25,000) - 5,00,000
= 2,25,000
Working notes : -
Calculation of gross profit
= 25% of 5,00,000
= 1,25,000
General reserve account and dividend equalization fund account are ______________.
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0%
Personal A/C
0%
Real A/C
0%
Nominal A/C
0%
None
Explanation
When the business retain some amount aside from the profits achieved then it is known as the general reserve.
Dividend Equalization Fund
is maintained by companies to equalize the dividends on year to year basis. it helps in maintaining the reputation of the business.
Opening Stock = Rs.50,000
Purchases = Rs. 1,00,000
Purchase return = Rs. 29,000
Sales = Rs. 2,00,000
Find the Gross Profit.
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0%
Rs. $$1,21,000$$
0%
Rs. $$79,000$$
0%
Rs. $$21,000$$
0%
None of the above
Explanation
Gross profit = Sales - cost of goods sold (Working note 1)
= 2,00,000 - 1,21,000
= 79,000
Working note
1) Calculation of cost of goods sold
= Opening + purchases - purchase return
= 50,000 + 1,00,000 - 29,000
= 1,21,000
In which method depreciation is charged according to hours used ________________.
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0%
Fixed installment method
0%
Annuity method
0%
Machine hour rate method
0%
Sum of years method
An asset with a useful life of five years is to be depreciated by the sum of year's digits method. What will be the denominator of the depreciation fraction for the second year?
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0%
5
0%
10
0%
12
0%
15
Explanation
Sum of years= 5+4+3+2+1= 15.
So, 15 will be the denominator for every year.
Therefore, D is the correct option.
Opening Stock Rs. 1,00,000, Sales Rs. 5,00,000, Gross profit @ 25% on cost, Purchase Rs. 6,00,Closing Stock is ___________.
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0%
Rs. 1,25,000
0%
Rs. 2,25,000
0%
Rs. 3,00,000
0%
Rs. 3,25,000
Explanation
Closing stock = (Opening stock + purchases + gross profit) - sales
= (1,00,000 + 6,00,000 + 1,00,000)- 5,00,000
= 8,20,000 - 5,00,000
= 3,00,000
Working note:- Calculation of gross profit
(Gross profit is 25% of cost because we don't have cost we will calculate it with the help of sales)
If cost is 100 gross profit is 25% of cost then sale will be Gross profit + cost
Hence 100 +25 = 125
therefore,
gross profit = 25/125 x 5,00,000
= 1,00,000
At the end of the year $$2008-09$$, the ledger of a firm shows following balances prepare their balance sheet.
Capital
Rs. $$2,00,000$$
Net Profit for the year $$2008-09$$
Rs. $$1,50,000$$
Provision for Taxes
Rs. $$75,000$$
Liabilities
Rs. $$1,00,000$$
Advance Tax Paid
Rs. $$60,000$$
Sundry Assets
Rs. $$4,65,000$$
The total of the balance sheet would be.
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0%
Rs. $$4,65,000$$
0%
Rs. $$5,25,000$$
0%
Rs. $$5,65,000$$
0%
Rs. $$5,10,000$$
Explanation
Total liabilities = Capital + Net profit + Provision for taxes + Liabilities
= 2,00,000 + 1,50,000 + 75,000 + 1,00,000
= RS-5,25,000.
Total assets = Advance tax paid + sundry assets
= 60,000 + 4,65,000
= RS-5,25,000.
Total balance sheet = RS-5,25,000.
On 1st October, 2011, a municipal tax of Rs. 1,000 may be paid for one year. If accounts are made up-to 31st March, 2012, taxes for six months (from 1st April, 2012 to 30th September, 2012), Rs. 500 will be treated as prepaid.
What is the journal entry to record the effect of above transaction ?
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0%
Municipal Taxes A/c...........Dr 500
To Profit and Loss A/c 500
0%
Municipal Taxes A/c...........Dr 500
To Trading A/c 500
0%
Municipal Taxes A/c...........Dr 500
To Prepaid Municipal taxes A/c 500
0%
Prepaid Municipal Taxes A/c...........Dr 500
To Municipal Taxes A/c 500
Explanation
Prepaid amount is an asset for the firm because that will be proven as a benefit in future. Since prepaid expenses are just like any normal expense, nominal account rule will be applied to it. Debit all the expenses and credit all incomes is the nominal account rule
Thus journal entry for prepaid municipal tax iss
$$Prepaid\quad Municipal\quad tax\quad a/c\quad Dr\quad Rs500\\ \quad To\quad Municipal\quad tax\quad a/c\quad Rs500$$
A machinery which cost Rs. 2,00,000 is depreciation at 25% per year using the Written Down Value method. At the end of three years, it will have a net book value of ___________.
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0%
Rs. 1,50,000
0%
Rs. 84,375
0%
Rs. 1,12,500
0%
Rs. 1,12,000
Carriage Inwards is shown in the statement of profit and loss under ___________ .
Report Question
0%
cost of materials consumed
0%
other expenses
0%
employees benefit expenses
0%
any of the above
Explanation
Carriage is the expense that is incurred when the goods are transported. Carriage inwards are the costs that are incurred by the buyer at the time of purchase of goods, These are the direct expenses related to procuring of goods and hence would be included in the cost of material consumed or say in the cost of the inventory.
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