Preparation of Final Accounts of Sole Proprietors – Final Accounts of Non-Manufacturing Entities 0 Preparation of Final Accounts of Sole Proprietors - Final Accounts of Non-Manufacturing Entities 1 / 30 Q.30 the gain from sale of capital asset is added to revenue to ascertain the gross profit of a business overall profit of a business operating profit of a business None of these 2 / 30 Q.29 the gain from sale of capital asset need not be added to revenue to ascertain the gross profit of a business net profit of a business operating profit of a business all the above 3 / 30 Q.28 Which of the following is correct ? trail balance can be prepared before passing transfer entries No Lecture Business Communication Directly Meet at 06:00pm Announcement trail balance can be prepared before passing adjusting entries all the above 4 / 30 Q.27 Advance salaries appearing in the trail balance are shown in on debit side of trading account on debit side of profit & loss account on the liabilities side of balance sheet on the asset side of balance sheet 5 / 30 Q.26 Carriage outwards appearing in trial balance are shown on debit side of trading account on debit side of profit & loss account on the liabilities side of balance sheet on the asset side of balance sheet 6 / 30 Q.25 Fixed asset are disclosed in the balance sheet at original cost market value cost or market value whichever is lower cost less depreciation till date 7 / 30 Q.24 Sales Rs.1,40,700 , Opening stock Rs.20,000 , Purchases Rs.85,800 , Closing stock Rs.18,000 , Carriage on Purchases Rs.2,300 , Carriage on Sales Rs.3,000, Rent of office Rs.5,000 , The Gross profit will be Rs.42,600 Rs.50,600 Rs.50,000 Rs.47,600 8 / 30 Q.23 From the following figures ascertain the gross profit :Opening stock (1.1.2006) Rs.25,000 , Goods purchased during 2006 Rs.1,30,000 , Freight and packing on above Rs.5,000 , Closing stock (31.12.2006) Rs.15,000 , Sales Rs.1,90,000 , Selling expenses on Sales Rs.9,000 Rs.36,000 Rs.45,000 Rs.50,000 Rs.59,000 9 / 30 Q.22 The capital of a sole trader would change as a result of: A creditor being paid his account by cheque. Raw materials being purchased on credit. Fixed assets being purchased on credit. Wages being paid in cash. 10 / 30 Q.21 Sales Rs.1,00,000 cost of goods sold Rs.80,000 , closing stock Rs.10,000, freight inwards Rs.1,000 ,freight outward Rs.3,000 , operating expenses Rs.5,000 .. the operating profit is Rs.15,000 Rs.25,000 Rs.24,000 None of these 11 / 30 Q.20 Adjusted purchase Rs.6,63,600, sales Rs.7,44,000, closing stock Rs.50,400, freight & cartage inward Rs.3,600, wages Rs.2,400, ,freight & cartage outward Rs.1,800,the gross profit for the year ended 31.3.2002 is Rs.76,200 Rs.74,400 Rs.1,24,800 None of these 12 / 30 Q.19 H's Trail balance contains the following info.Bad debts Rs.3,000 , Discount allowed Rs.3,000 , Provision for discount on debtors Rs.3,200 , Provision for bad debts Rs.3,500. Sundry debtor Rs.50,000.At the end of the year , it is desired to maintain a provision for bad debts at Rs.4,000 & provision for discount on debtor at Rs.2,000.sundry debtor will appear in the balance sheet at Rs.44,000 Rs.38,000 Rs.44,700 Rs.32,300 13 / 30 Q.18 E's trial balance contains the following information :Discount received Rs.1,000 provision for discount on creditor Rs.1,600. It is desired to maintain a provision for discount on creditors at Rs.1,100. The amount to be credited to the profit & loss account is Rs.1,500 Rs.3,500 Rs.1,000 Rs.500 14 / 30 Q.17 which of the following is True ? outstanding expenses is credited to the respective expenses account prepaid expenses is debited to the respective income account accrued income is debited to the respective income account None of these 15 / 30 Q.16 The debit balance in the profit & loss account is surplus real asset gain loss 16 / 30 Q.15 capital work - in -progress a current asset intangible fixed assets tangible fixed assets fictitious asset 17 / 30 Q.14 the effect of opening entries is the opening of personal account & real account real account & nominal account personal account & nominal account personal account , real account , nominal account 18 / 30 Q.13 Trading & profit & loss account is based on personal account real account nominal account All of the above 19 / 30 Q.12 The Zed Company , a whole seller estimates the following Sales for the indicated months: June 2006 : Opening stock Rs.4,08,000, Credit Sales Rs.15,00,000 , Cash Sales Rs.2,00,000 , Total Sales Rs.17,00,000 , July 2006 :Opening stock Rs.4,34,400, Credit Sales Rs.16,00,000 , Cash Sales Rs.2,10,000 , Total Sales Rs.18,10,000 , August 2006 :Opening stock Rs.4,60,800, Credit Sales Rs.17,00,000 , Cash Sales Rs.2,20,000 , Total Sales Rs.19,20,000 . Selling price is 125% of the purchase price. The cost of goods sold for the month of June ,2006 is: Rs.15,20,000 Rs.14,02,500 Rs.12,75,000 Rs.13,60,000 20 / 30 Q.11 Sales Rs.15,000 , Opening stock Rs.6,000 , Purchases Rs.10,000 , Closing stock Rs.? , Cost of goods sold Rs.9,000 , Gross profit Rs.? , Trading Expenses Rs.4,000 , Net profit Rs.? ; The Net profit will be Rs.6,000 Rs.5,000 Rs.2,000 Rs.7,000 21 / 30 Q.10 Sales Rs.15,000 , Opening stock Rs.6,000 , Purchases Rs.10,000 , Closing stock Rs.? , Cost of goods sold Rs.9,000 , Rs.9,000 Rs.4,000 Rs.8,000 Rs.7,000 22 / 30 Q.9 A company wishes to earn a 20%profit margin on selling price .Which of the following is the profit mark up on cost , which will achieve the required profit margin 33% 25% 20% None of these 23 / 30 Q.8 Fixed assets are Kept in the business for use over a long time for earning income Meant for resale Meant for conversion into cash as quickly as possible All of the above 24 / 30 Q.7 Prepaid expenses are shown by the way of addition in the income statement as a current asset as a fixed asset as a current liability 25 / 30 Q.6 Drawings are deducted from sales purchases return outward capital 26 / 30 Q.5 trade mark is a current asset intangible fixed assets tangible fixed assets fictitious asset 27 / 30 Q.4 Patents is a current asset intangible fixed assets tangible fixed assets fictitious asset 28 / 30 Q.3 provision is an unknown liability but its amount & due date are determinate an unknown liability & its amount & due date are determinate a known liability & its amount & due date are determinate a known liability but its amount & due date are determinate 29 / 30 Q.2 Gross profit is equal to cost of good sold -sales cost of good sold + operating profit sales - operating cost sales - cost of goods sold 30 / 30 Q.1 The Zed Company , a whole seller estimates the following Sales for the indicated months: June 2006 : Opening stock Rs.4,08,000, Credit Sales Rs.15,00,000 , Cash Sales Rs.2,00,000 , Total Sales Rs.17,00,000 , July 2006 :Opening stock Rs.4,34,400, Credit Sales Rs.16,00,000 , Cash Sales Rs.2,10,000 , Total Sales Rs.18,10,000 , August 2006 :Opening stock Rs.4,60,800, Credit Sales Rs.17,00,000 , Cash Sales Rs.2,20,000 , Total Sales Rs.19,20,000 . Selling price is 125% of the purchase price. Stock purchased in July ,2006 is: Rs.16,05,000 Rs.14,74,400 Rs.14,40,000 Rs.13,82,500 Your score is LinkedIn Facebook Twitter VKontakte