Financial Accounting II

Opening debtors Rs. 24000, Closing Debtors Rs. 27000, Bad debts Rs. 400, Discount Allowed Rs. 450, Bills Receivable Rs.9000 Cash collection Rs. 68000, Sales Return Rs. 1000, Discount Received Rs. 800. Calculate Credit Sales.

Answer explanation

Opening Creditors Rs. 15000, Cash paid Rs. 40000, Discount Received Rs. 300, Purchase Return Rs. 1500, Closing Creditors Rs. 12500, Bills Payable Rs. 10000, Discount Allowed Rs. 800, Calculate Credit purchase.

Answer explanation

Details of statement of affairs as follows - Cash Rs. 5280, Building Rs. 20800 Stock Rs. 10480, Creditors Rs. 9200, Outstanding Advertisement Rs. 200, Debtors Rs. 13000, Prepaid Rent Rs. 600 Find out opening capital?

Answer explanation

50 Tea powder boxes are sent on consignment at a cost of Rs. 1000 per box. The Consignor spent Rs. 2000 on Freight. The Consignee spent Rs. 3000 for Octrai duty and Rs. 2000 for insurance of Godown. Presuming that 30 Tea power boxes are sold out, how the stock will be valued?

Answer explanation

Consigned 25 Printers costing Rs. 10000 per printer. The Printers are consigned at invoice price of Rs. 12000 per printer. 15 Printers for cash & 5 Printers on credit at Rs. 15000 per printer Surplus commission of 10% on surplus price realised above invoice price. Calculate surplus commission.

Answer explanation

Loading is a difference between __________.

• Selling price and market price

• Cost price and Selling price

• Invoice price and Cost price

• Inovice price and Selling price

Which of the following statement is true?

• Collection from Customers can be ascertained from creditors account.

• Consignee is a buyer of goods.

• Invoice price is always higher than cost price.

• Consignor always sends goods to the consignee at cost only.

Which of the following statement is false?

• Single Entry system is suitable to small orgnisation.

• Account sale is send by consignee to consigner

• Consignment is a sale between the consignor and the consignee.

• Goods sent on consinment are the property of the consignor.

Which of the following statement is true?

• Any stock remaining unsold with the consignee belongs to the consignor.

• Del credere commission is calculated at a certain percentage on cash sales.

• Credit sales should be ascertained from creditors account.

• Credit purchases should be ascertained from debtors account.

Which of the following statement is false?

• Invoice price always equal to selling price.

• If del credere commission is allowed, bad debt loss is borne by the consignee.

• Surplus commission is calculated on surplus price realised.

• Cash sales are ascertained from Cash Journal.