Question : While purchasing an item costing Rs. 600, Rashi had to pay sales tax at 5%. What amount did Rashi have to pay as sales tax?
Option 1: Rs. 30
Option 2: Rs. 60
Option 3: Rs. 45
Option 4: Rs. 15
Correct Answer: Rs. 30
Solution : Tax = Cost of item × Tax rate
Given:
Cost of item = INR 600
Tax rate = 5% = 0.05
Substituting these values into the formula,
Sales Tax = 600 × 0.05 = Rs. 30
Hence, the correct answer is Rs. 30.
Question : Furniture as on 31st March, 2019—Rs. 4,40,000; Furniture (having book value as
on 1st April, 2019—Rs. 40,000) sold at a loss of 20% on 31st December, 2019. Furniture is to be depreciated @ 10% p.a. Furniture costing Rs. 3,00,000 was also purchased on 1st October, 2019. Calculate the amount of Depreciation and loss on the sale of furniture to be transferred to the Income and Expenditure Account.
Option 1: Loss on sale of furniture Rs 74,000
Depreciation Rs 55,000
Option 2: Loss on sale of furniture Rs 7,400
Depreciation Rs 3,000
Option 3: Loss on sale of furniture Rs 7,400
Depreciation Rs 58,000
Option 4: Depreciation Rs 50,000
Loss on sale of furniture Rs 3,700
Correct Answer: Loss on sale of furniture Rs 7,400
Depreciation Rs 58,000
Solution : FURNITURE ACCOUNT
Date | Particulars | Amount | Date | Particulars | Amount |
1/1/19 | To Balance c/d 1 = 40,000 2 = 4,00,000 |
4,40,000 | 31/12/19 | By Depreciation A/c 1 =40,000x10%x 9/12 |
3,000 |
1/10/19 | To Bank A/c (3) | 3,00,000 | 31/12/19 | By I&E A/c (WN1) | 7,400 |
31/12/19 | By Bank A/c (WN1) | 29,600 | |||
31/3/20 | By Depreciation A/c 2 =4,00,000x10% 3 =3,00,000x10%x6/12 |
55,000 | |||
31/12/20 | By Balance c/d 2=4,00,000-40,000 3=3,00,000-15,000 |
6,45,000 | |||
7,40,000 | 7,40,000 |
Working Note:
1. Book Value as on 1/4/19 = 40,000
(-) Depreciation @10% = (3,000) [For 9 months]
Book Value as on 31/12/19 = 37,000
(-) Loss (20% x 37,000) = (5,400)
Sale = 29,600
2. Total depreciation on all 3 furniture = Rs.3,000 + Rs.55,000 = Rs.58,000.
Hence, the correct option is 3.
Question : The Gross Profit Ratio of a Company is 20%. Which of the following transactions will not change in gross profit ratio?
Option 1: Goods costing Rs. 1,50,000 sold for Rs. 2,00,000.
Option 2: Goods costing Rs. 3,40,000 sold for Rs. 4,00,000.
Option 3: Revenue from Operations Rs. 2,00,000.
Option 4: None of the above
Correct Answer: Revenue from Operations Rs. 2,00,000.
Solution : Answer = Revenue from Operations Rs. 2,00,000.
Revenue from the operation will increase but the Closing stock will decrease by the same percentage, not by the same amount. As a Result Cost of Revenue from operation will increase by the same percentage as the Revenue from operation increases.
Hence, the correct option is 3.
Question : O, M and R are partners sharing profits and losses equally. They agree to admit Dev for equal share. For this purpose, goodwill is to be valued at four years purchase of average profit of last five years. Profits for the past five years were:
31st March,2016 | 31st March,2017 | 31st March,2018 | 31st March,2019 |
31st March,2020 |
Profit/(Loss) |
||||
(Rs.) 30,000 | 70,000 | 1,00,000 | 1,40,000 |
(1,20,000) |
On 1st April, 2019, 5 cycles costing Rs. 20,000 were purchased and were wrongly debited to travelling expenses. Depreciation on cycles was to be charged @ 25% p.a. value of goodwill will be
Option 1: 1,88,000
Option 2: 1,08,000
Option 3: 2,00,000
Option 4: 3,20,000
Correct Answer: 1,88,000
Solution : Answer = 1,88,000
Calculation of Normal Profit: Year-Ended Normal Profit/(Loss) (Rs.) |
|
31st March, 2016 | 30,000 |
31st March, 2017 | 70,000 |
31st March, 2018 | 1,00,000 |
31st March, 2019 | 1,40,000 |
31st March, 2020 | (1,05,000) (Loss) (Note) |
Total Normal Profit 2,35,000
Average Profit = = Rs. 2,35,000/5 = Rs. 47,000
Goodwill = Average Profit × Number of Year Purchase = Rs. 47,000 × 4 = Rs. 1,88,000.
Calculation of Adjusted Loss for the year ended 31st March 2020: Rs.
Loss for the year ended 31st March 2020 = 1,20,000
Less: Cost of Cycles wrongly debited to Profit and Loss A/c = (20,000)
= 1,00,000
Add: Depreciation @ 25% p.a. on Rs. 20,000 (cycles) = 5,000
Loss for the year = 1,05,000
Hence, the correct option is 1.
Question : The Gross Profit Ratio of a Company is 20%. Which of the following transactions will not change in gross profit ratio?
Option 1: Goods costing Rs. 1,50,000 sold for Rs. 2,00,000.
Option 2: Goods costing Rs. 3,40,000 sold for Rs. 4,00,000.
Option 3: Revenue from Operations Rs. 2,00,000.
Option 4: None of the above
Correct Answer: Revenue from Operations Rs. 2,00,000.
Solution : Answer = Revenue from Operations Rs. 2,00,000.
Revenue from the operation will increase but the Closing stock will decrease by the same percentage, not by the same amount. As a Result Cost of Revenue from operation will increase by the same percentage as the Revenue from operation increases.
Hence, the correct option is 3.
Question : In what ratio must water be mixed with milk costing 32 per litre to get a mixture costing 28 per litre?
Option 1: 8 : 1
Option 2: 1 : 7
Option 3: 1 : 8
Option 4: 7 : 1
Correct Answer: 1 : 7
Solution :
By using alligation,
Water : Milk = 4 : 28 = 1 : 7
Hence, the correct answer is 1 : 7.
i have gotten admission in VIT Vellore CSE core in category 3 and i have also been allotted computer engineering in PDPU, Gandhinagar, Gujarat. PDPU is nearby my house and it is costing me almost half as much as VIT. My JEE percentile is 92 and rank is 68k. which college should i choose?
Hello,
Congrats on getting seats in two very good colleges. I will help you out here with the plus points of both colleges so you can make a better decision:
- VIT Vellore
- Startup Ecosystem
- NIRF rank #12
- Research and industry based course structure
- Placements in level with NITs, GFTIs
2. PDEU, Gandhinagar
- INTERNATIONAL COLLABORATIONS
- NIRF Rank #68
- More accessible location
- Better exposure to energy sector
- Continuously updated curriculum
If fees is something you are considering as a doubt I would suggest that PDEU is a very good option and you have a very decent rank in JEE too so you will be able to accelerate your career growth very well.
Good luck, Hope it helps!!
study cost in B pharm in Indira gandhi college bhuweneshar
Greetings dear aspirant
For pursuing Bachelor of Pharmacy in Indira Gandhi College, Bhubaneswar, there is a tution fees of 89,000 per year. The eligibility criteria is passing 10+2 with a minimum of 45% and writing OJEE Examination. The eligibility for lateral entry students is passing D. Pharma with a minimum of 45% aggregate and writing OJEE Examination.
Hope I've cleared all your doubts!!
All the best for your future career
hi i am diploma in mechanical engineering and having 14 years experience in purchase,vendor development, costing department...now I want to know the which higher study is best for my career growth please suggest...
The experiences you have is great which you can properly channelize via Management course like MBA. But for MBA you need to have any Bachelors Degree. So you have to do a Btech/any degree as you wish in order to pursue MBA.
Apart from this nowadays Data Science is a new craze and it is used in every sector. IIT MADRAS offers a online BSc Program in Data Science. You can do this course. The course will give you a proper exposure as well as a IIT tag which will help you upgrade your job profile. Now as this is a online degree this will help you to work alongside. And after completion of these you may appear for MBA (if you want else you have plenty of jobs in this field).
TO know more about the IIT MADRAS program you may visit the link below:
https://onlinedegree.iitm.ac.in/
I hope my answer helps. All the very best for your future endeavors!