Accounting - Study Mode

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[#1096] According to records of a firm which not keep its accounts on double entry systems, all sales were made on credit so as to realise a profit of $$33frac{1}{3}\% $$ xa0on sales proceeds. The stock of unsold goods at the beginning and at the end of the trading period were valued at Rs. 21,000 and Rs. 18,000 respectively. Goods worth Rs. 1,39,500 were purchased for resale during the period. The proprietor withdraw goods worth Rs. 1,500 during accounting period for personal use. What were the total sales during the period?

(A) Rs. 1,80,000

(B) Rs. 2,11,500

(C) Rs. 2,25,000

(D) Rs. 2,31,500

Correct Answer

(B) Rs. 2,11,500

[#1097] Liquidation expenses paid by the transferee company is debited to . . . . . . . .

(A) General reserve account

(B) P/L Account

(C) Goodwill account

(D) None of these

Correct Answer

(C) Goodwill account

[#1098] A bill drawn and accepted for providing funds to a friend in need is known as:

(A) cheque

(B) promissory note

(C) accommodation bill

(D) demand bill

Correct Answer

(C) accommodation bill

[#1099] At the time of the renewal of a bill, interest account is . . . . . . . . in the books of the drawee.

(A) Credited

(B) Totalled

(C) Debited

(D) Posted

Correct Answer

(C) Debited

[#1100] Which of the following is an equation?

(A) Assets = Equities

(B) Assets = Liabilities - Capital

(C) Assets = Liabilities - Equities

(D) Assets = Equities + Liabilities

Correct Answer

(D) Assets = Equities + Liabilities