Accounting - Study Mode

[#2616] Prepaid insurance account is:
Correct Answer

(C) an asset

[#2617] In an organization, provision for Bad debts is Rs. 5,000 in the beginning. At the end total sales is Rs. 6,00,000 out of which Rs. 1,00,000 is cash sales. 1% provision is to be created on remaining debtors. The amount to be debited to profit and loss account in respect of provision is.
Correct Answer

(D) Zero

[#2618] Opening Stock = Rs. 10,000 Purchases = Rs. 90,000 Closing stock = Rs. 28,000 Gross Profit = 10% of sales The amount of sales will be
Correct Answer

(C) Rs.80,000

[#2619] Find gross profit/gross loss if, Cost of goods sold Rs. 7,900 Sales Rs. 11,000 Purchase Rs. 3,000
Correct Answer

(C) Rs. 3,100

[#2620] Bank overdraft should be categorized as
Correct Answer

(B) Current liability