Practice Test 6
Previous Solution Next

A, B and C are partners sharing profits in the ratio 2:2:1. On retirement of B, goodwill was valued as Rs. 30,000. Contribution of A and C to compensate B will be

  • Solution

A company forfeited 1,000 shares of Rs. 20 each (which were issued at par) held by Mr. Mohan for non-payment of allotment money of Rs. 8 per share. The called-up value per share was Rs. 18. On forfeiture, the amount debited to share capital will be

  • Solution

    The amount to be debited to share capital account will be the called up value of the shares forfeited
    i.e. 1,000 × 18 = Rs. 18,000

Sunset Tours has Rs. 3,500 account receivable from Mohan. On January 20, the later makes a partial payment of Rs. 2,100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:

  • Solution

    The entry will be:
    Cash/bank ...Dr 2100
    To accounts receivable from Mohan 2100

If repair cost is Rs.25,000, whitewash expenses are Rs. 5,000, cost of extension of building is Rs.2,50,000 and cost of improvement in electrical wiring system is Rs. 19,000; the amount to be expensed is

  • Solution

    Amount to be capitalized = 2,50,000 + 19,000
    And amount to be expensed off = 25,000 + 5,000 = Rs. 30,000

If a purchase return of Rs.1,000 has been wrongly posted to the debit of the sales returns account, but has been correctly entered in the suppliers’ account, the total of the

  • Solution

    Purchase return account (cr) under casted by Rs. 1000 and sales return account (dr) over casted by Rs. 1000. Thus the debit side of the trial balance will be Rs 2000 more than the credit side.

Debit balance as per Cash Book of ABC Enterprises as on 31.3.2012 is Rs. 1,500. Cheques deposited but not cleared amounts to Rs.100 and Cheques issued but not presented of Rs. 150. The bank allowed interest amounting Rs.50 and collected dividend Rs. 50 on behalf of ABC Enterprises. Balance as per pass book should be

  • Solution

  • Solution

    Since the company is following FIFO method the closing stock i.e. (15 + 20 + 10 - 32) units = 13 units will be valued as follows: 10 units from the stock purchased on mark 6 and 3 units from the stock purchased on mark 4 i.e. 10 units @ 460 per unit + 3 units @ 450/unit = 4,600 + 1,350 = Rs. 5,950

If Average inventory = Rs. 12,000. Closing inventory is Rs. 3,000 more than opening inventory then the value of closing inventory will be

  • Solution

    Let the closing stock be x
    Then opening stock = x – 3,000
    Average stock = (opening stock + closing stock)/2 = (x + x – 3,000)/2 = x – 1,500 = Rs. 12,000
    Thus closing stock i.e. x = Rs. 13,500

H Ltd. purchased a machinery on April 01, 2005 for Rs.3,00,000. It is estimated that the machinery will have a useful life of 5 years after which it will have no salvage value. If the company follows sum-of-the-years’ digits method of depreciation, the amount of depreciation charged during the year 2009-2010 was

  • Solution

Rent paid on 1st October, 2008 for the year to 30th September, 2009 was Rs. 1,200 and rent paid on 1st October, 2009 for the year to 30th September, 2010 was Rs. 1,600. Rent paid, as shown in the profit and loss account for the year ended 31st December 2009, would be:

  • Solution

    Rent paid for 1-1-2009 to 30-9-2009 = 1200 × 9/12 = Rs. 900
    Rent paid for 1-10-2009 to 31-12-2009 = 1600 × 3/12 = Rs. 400
    Thus rent paid shown in profit & loss account for the year ended 31-12-2009 = 900 + 400 = Rs. 1300

UnAttempted

0

Attempted

0

Correct

0

Wrong

0

Complete
FUNDAMENTALS OF ACCOUNTING
Attempted     
Correct
UnAttempted
Wrong