accounting , cpt – chapter 6 ca prathap ss opening stock 60,000 to purchases 90,000 to gross...
TRANSCRIPT
![Page 1: Accounting , CPT – Chapter 6 CA PRATHAP SS Opening Stock 60,000 To Purchases 90,000 To Gross Profit (33 1/3% on cost =1/4 on Sales =1/4*Rs.1,20,000) 30,000 By Closing Stock Less:](https://reader031.vdocuments.site/reader031/viewer/2022013006/5abc84487f8b9a24028de8f3/html5/thumbnails/1.jpg)
Accounting , CPT – Chapter 6 CA PRATHAP SS
![Page 2: Accounting , CPT – Chapter 6 CA PRATHAP SS Opening Stock 60,000 To Purchases 90,000 To Gross Profit (33 1/3% on cost =1/4 on Sales =1/4*Rs.1,20,000) 30,000 By Closing Stock Less:](https://reader031.vdocuments.site/reader031/viewer/2022013006/5abc84487f8b9a24028de8f3/html5/thumbnails/2.jpg)
A. Previous Financial Year
B. Following Financial Year
C. Current Financial Year
D. None
Answer:
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Solution
Prepaid expense is expense paid in advance but which has not yet been incurred. Expense must be recorded in the accounting period in which it is incurred. Therefore, prepaid expense must be not be shown as expense in the accounting period in which it is paid but instead it must be presented as such in the subsequent accounting periods in which the services in respect of the prepaid expense have been performed.
Therefore, the Answer is Option B: The Following Financial Year
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A. Purchase A/c or Trading A/c
B. Supplier A/c
C. Goods In Transit A/c
D. Cash A/c
Answer:
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Solution
The normal journal entry of Goods in Transit is
Goods In Transit A/c Dr To Purchases A/c
Answer is Option A – Purchases A/c or Trading A/c
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A. Rs.55,000/-
B. Rs.3,00,000/-
C. Rs.9,167/-
D. Rs.5,50,000/-
Answer:
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Solution
Average Capital = Opening Capital + Closing Capital
2
Formula Used
Opening Capital + Profit for the year = Closing Capital
Closing Capital = Rs.5,00,000+Rs.1,00,000
= Rs.6,00,000/-
Average Capital = Rs.5,00,000+ Rs.6,00,000
2
Average Capital = Rs.5,50,000
Computation of Closing Capital
Computation of Average Capital
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A. Rs.44,000/-
B. Rs.40,000/-
C. Rs.37,000/-
D. Rs.33,000/-
Answer:
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Solution
Net Profit before charging such commission
Rs.4,40,000
Amount of Manager’s commission
Rs.4,40,000 X 10/110 =Rs.40,000/-
Answer is Option B – Rs.40,000/-
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A. Rs.4,65,000/-
B. Rs.5,25,000/-
C. Rs.5,65,000/-
D. Rs.5,10,000/-
Answer:
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Solution Balance Sheet
Capital 2,00,000
Net Profit 1,50,000
Provision For Taxes 75,000 Sundry Assets 4,65,000
Advance Tax Paid 60,000
5,25,000 5,25,000
Liabilities 1,00,000
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A. Rs.92,000/-
B. Rs.42,000/-
C. Rs.1,72,000/-
D. Rs.52,000/-
Answer:
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Solution
Balance Sheet
Loan 50,000
Trade Creditors 80,000
Capital 50,000 Stock 90,000
Fixed Assets 72,000
2,22,000 2,22,000
Profit For The Year (balancing figure)
Profit will be the balancing figure on the Liabilities Side
Cash In Hand 60,000 42,000
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A. Rs. 1,455/-
B. Rs.1,305/-
C. Rs.555/-
D. Rs.705/-
Answer :
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Solution
Profit & Loss A/c
To Bad Debts 120
To Carriage Outwards 175
To Net Profit (balancing figure)
1,455
By Gross Profit b/d
1,750
1,750 1,750
Carriage Inward is a direct expense which is already taken into account to arrive at the Gross Profit.
Proprietors Personal Expenses will not be included as only amounts relating to the business is entered.
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A. Rs.40,000/-
B. Rs.45,000/-
C. Rs.55,000/-
D. Rs.60,000/-
Answer :
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Solution
To Opening Stock 60,000
To Purchases 90,000
To Gross Profit (33 1/3% on cost =1/4 on Sales =1/4*Rs.1,20,000)
30,000 By Closing Stock Less: Damaged Goods
60,000
By Sales 1,20,000
1,80,000 1,80,000
15,000 45,000
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A. Rs.2,25,000/-
B. Rs.1,85,000/-
C. Rs.2,05,000/-
D. Rs.1,75,000/-
Answer:
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Solution Move from
cash outflow to
amount debited to
P/L following accrual
accounting Salaries Paid for the year Rs.2,00,000
Last Year Outstanding Rs.10,000 - Rs.1,90,000
Prepaid Salaries For Next Year Rs.20,000 - Rs.1,70,000
Current Year Outstanding Salary Rs.15,000 + Rs.1,85,000
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A. Rs.2,00,000/-
B. Rs. 1,00,000/-
C. Rs. 3,00,000/-
D. Rs. 4,00,000/-
Answer:
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Solution As per the question, Current Asssets = Rs.3,00,000 Fixed Assets = Rs.6,00,000 Capital = Rs.12,00,000 Balance Sheet
Capital 12,00,000
Current Assets 3,00,000
Fixed Assets 6,00,000
13,00,000 13,00,000
Current Liabilities (balancing figure)
Investments 4,00,000
1,00,000
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A. Rs.2,400/-
B. Rs. 2,305/-
C. Rs. 2,300/-
D. Rs. 2,000/-
Answer:
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Solution
Sundry Debtors 48,000 -
=
Bad Debts 2,000 46,000
- Provision For Doubtful Debts =5/100* 46,000 2,300
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A. Rs. 5,70,000/-
B. Rs. 4,90,000/-
C. Rs. 5,30,000/-
D. None of the above
Answer:
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Solution
To Opening Stock (balancing figure)
4,90,000
To Purchases 4,50,000
To Gross Profit (12% on Sales)
90,000
By Closing Stock
3,60,000
By Sales 7,50,000
11,10,000 11,10,000
To Direct Expenses 80,000
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A. Provision for Bad Debts is shown as a liability in the Balance Sheet or may be deducted from the debtors in the balance sheet.
B. Bad Debts could be more than Provision for Bad Debts.
C. Bad Debts could be less than Provision for Bad Debts.
D. Actual bad debts are not adjusted against the provision for bad debts A/c
Answer: D
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A. Prepaid Expenses A/c will be debited and the respective expenses A/c will be credited
B. Respective Expenses A/c will be debited and Prepaid Expenses A/c will be credited.
C. Prepaid Expenses A/c will be debited and Profit & Loss A/c will be credited.
D. Profit & Loss A/c will be debited and Prepaid Expenses A/c is credited.
Answer: A
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A. Rs. 7,000/-
B. Rs.1,07,000/-
C. Rs.93,000/-
D. Rs. 1,00,000/-
Answer:
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Solution
Formula Used Net Realisable value of account receivable =
Account receivable – Provision for bad and doubtful debts
NRV = A/c receivable – Provision for doubtful debts = 1,00,000 – 7,000 = 93,000
Net realizable value of the accounts receivable is Rs.93,000
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A. Rs.61,800/-
B. Rs.48,200/-
C. Rs.55,000/-
D. Rs. 6,800/-
Answer:
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Solution
Formula Used Rent of the year = Total rent + Current year
outstanding – Previous year outstanding
= 50,000 + 5,000 – 6,800 = 48,200
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A. Current Assets : Fixed Liabilities
B. Current Assets : Current Liabilities
C. Fixed Assets : Fixed Liabilities
D. Fixed Liabilities : Current Liabilities
Answer : B
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A. Goodwill is a fictitious Asset
B. Closing Stock is a wasting asset.
C. Preliminary Expense is a current asset.
D. Patent is an intangible asset.
Answer : D
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A. Rs.20,000/-
B. Rs.16,000/-
C. Nil
D. None of these
Answer:
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Solution
Profit = Sales - Cost of Goods Sold Formula Used
Sales = 4,000 * 25 = 1,00,000
COGS = 1,05,000 * (4/5) = 84,000
Profit = Rs.16,000
Profit = 1,00,000 - 84,000 = 16,000
Cost of Production = 1,00,000 + Direct expenses = 5,000 1,05,000
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A. Prepaid Insurance A/c Dr Rs.1,800 To Insurance A/c Rs.1,800
B. Insurance A/c Dr Rs. 1,800 To Prepaid Insurance A/c Rs. 1,800
C. Prepaid Insurance A/c Dr Rs.600 To Insurance A/c Rs.600
D. Insurance A/c Dr Rs. 600 To Prepaid Insurance A/c Rs. 600
Answer:
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Solution
Annual Insurance premium = 2,400 Monthly insurance premium = 2,400 / 12 = 200
Since the premium for the whole year was paid on 1st January , hence three months premium ( 200 * 3 = 600 ) has been used
up. So, on 31st March, Prepaid Insurance will be for 9 months ie.,
200x9 = Rs,1,800/-
The Journal Entry on 31st March will be Prepaid Insurance A/c Dr Rs.1,800 To Insurance A/c Rs.1,800 On 1st April 2013, the above entry will be reversed.
Answer is Insurance A/c Dr 1,800 To Prepaid Insurance A/c 1,800