P of Faridabad sent out goods costing Rs. 45,000 to Y of Delhi at cost + 331/3%. 1/10th of goods were lost in transit. 2/3rd of the goods received are sold at 20% above invoice price. The amount of sale value will be:
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Solution
Cost of the goods sold = 45,000 × 2/3 × 9/10 = Rs. 27,000
Invoice value of the goods sold = 27,000 + 33.33% of 27,000 = 27,000 + 100/300 × 27,000 = 27,000 + 9,000 = Rs. 36,000
Sale price = 36,000 × 120/100 = Rs. 43,200
A and B enter into a joint venture for purchase and sale of Type-writer. A purchased Typewriter costing Rs. 1,00,000. Repairing expenses Rs. 10,000, printing expenses Rs. 10,000. B sold it at 20% margin on selling price. The sales value will be:
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Solution
Cost of the typewriter = Rs. 1,00,000
Let the sale price be × then profit is 20% of x
Thus cost = x – 20% of x = 1,00,000 or 80/100 x = 1,00,000 or x = 1,00,000 × 10/8 or x = Rs.1,25,000
A draws a bill on B for Rs 30,000. A wants to endorse it to C in settlement of Rs 35,000 at 2% discount with the help of B’s acceptance and balance in cash. How much cash A will pay to B?
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Solution
Amount to be paid to C = 35,000 × 98/100 = Rs. 34,300
Amount of the bill endorsed = Rs. 30,000
Hence amount to be settled in cash = Rs. 4,300
A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31-12-2009, it was found that 100 articles at a sale price of 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The value of inventory on approval will be amounting
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Solution
Let the cost price be x. Then sale price will be 125% of x
Or 125% of × = Rs. 20,000
Thus × = 20,000 × 100/125 = Rs.16,000
X, Y and Z are partners in a firm. At the time of division of profit for the year there was dispute between the partners. Profits before interest on partner’s loan was Rs. 6,000 and Y determined interest @ 24% p.a. on his loan of Rs. 80,000. There was no agreement on this point. Calculate the amount payable to X, Y and Z respectively.
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Solution
There is no partnership deed. Thus The Indian Partnership Act is to be applied for settling the dispute. Interest on loan will be payable at 6% p.a.
Thus 6% on Rs. 80,000 will be the interest on loan = Rs. 4,800
The remaining profit 6,000 – 4,800 i.e. Rs. 1,200 will be distributed among the three partners equally
Thus Rs. 400 for X, 4,800 + 400 = Rs. 5,200 for Y, and Rs. 400 for Z
A and B are partners with the capital Rs. 50,000 and Rs. 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was brought against goodwill. Goodwill valued as Rs. 35,000 which was adjusted through the Capital accounts of the partners. What will be value of goodwill in the books after the admission of C?
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Solution
When the incoming partner is not bringing goodwill and the goodwill is adjusted through the capital accounts of the partners then NO goodwill will be shown in the balance sheet after admission. Thus the value will be nil.
A and B are partners sharing profits and losses in the ratio of 3:2 (A’s Capital is Rs.30,000 and B’s Capital is Rs.15,000). They admitted C and agreed to give 1/5th share of profits to him. How much C should bring in towards his capital?
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Solution
Now if the total capital after admission is × then
1/5 of x = x – 30,000 – 15,000 Or 4/5x = Rs. 45,000 Or x = Rs. 56,250
thus the share of C will be 1/5 of Rs. 56,250 = Rs. 11,250
A, B and C are partners sharing profits and losses in the ratio 9:4:3. The firm took separate life policy of Rs. 25,000 for A, Rs. 20,000 for B and Rs. 51,000 for C. What is the share of C in the policy amount?
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Solution
Share of C in policy amount = 3/16 × total amount of policy i.e. 3/16 × (25,000 + 20,000 + 51,000) = Rs. 18,000
B Ltd. issued shares of Rs.10 each at par. Mr. C purchased 30 shares and paid Rs.2 on application but did not pay the allotment money of Rs.3. If the company forfeits his entire shares, the forfeiture account will be credited by
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Solution
Forfeiture account will be credited with the amount already received in respect of the shares forfeited, here it will be 30 × 2 = Rs. 60
T Ltd. purchased land and building from U Ltd. for a book value of Rs.2,00,000. The consideration was paid by issue of 12% Debentures of Rs.100 each at a discount of 20%. The debentures account will be credited with
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Solution
Amount of consideration = Rs. 2,00,000
Total amount to be received on issue of debentures at 20% discount = Rs. 2,00, 000
So the actual amount of debentures issued = 200000 × 100/80 = Rs. 2,50,000