Accounting basics

Goods costing ₹20,000 is sold at a profit of 20% on cost and trade discount is allowed @10% and cash discount is also allowed. Half the payment was received at the time of sale. What is the amount of cash received at the time of sale?

• ₹9,720

• ₹10,800

• ₹11,880

• ₹10,820

Goods worth ₹7,000 given away as charity would be credited to:

• Sales a/c

• Purchases a/c

• Charity a/c

• Trustee a/c

Payment of ₹6,000 as wages to workmen for installation of a machine should be debited to:

• Wages a/c

• Repairs a/c

• Machinery a/c

• Installation a/c

What shall be the amount of Capital if Cash is ₹5,000; Furniture ₹12,000; Stock ₹30,000 and Creditors ₹6,000

• ₹53,000

• ₹47,000

• ₹41,000

Gopal is our debtor for ₹10,000. He became insolvent and only 60 paise is received from him. The balance of ₹4,000 would be entered to the :

• Debit of Discount A/c

• Credit of Discount A/c

• Debit of Bad Debts A/c

• Credit of Bad Debts A/c

₹5,000 received from Mohan whose account was written off as bad in the previous year should be credited to:

• Mohan's a/c

• Bad debts a/c

• Bad debts recovered a/c

• None of these

Loss of goods by fire should be credited to:

• Sales a/c

• Loss a/c

• Profit and Loss a/c

• Purchase a/c

Goods costing ₹30,000 supplied to Mohan at a profit of 25% of sales price less Trade discount @5% will be credited to Sales a/c with:

• ₹35,625

• ₹38,000

• ₹37,500

• ₹34,200

Paid to Rahul on behalf of Sanjay ₹12,000 will be debited to

• Rahul a/c

• Sanjay a/c

• Drawings a/c

• Cash a/c

Sold goods worth list price of ₹8,000 at 10% trade discount and 2% cash discount. 25% received at the time of transaction only. The amount posted to discount account will be:

• ₹36 on Debit side

• ₹144 on Credit side

• ₹144 on Debit side

• ₹40 on Credit side