Costing
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
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
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,2020
Profit/(Loss)
(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.)
Total Normal Profit 2,35,000
Average Profit = = Rs. 2,35,000/5 = Rs.
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:
2.
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
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
Hello Candidate,
Broadly speaking Feminism is often divided into three main traditions usually called - liberal, reformist or mainstream feminism, radical feminism and socialist/Marxist feminism.
Despite the progress made by Indian feminist movements, women living in modern India still face many issues of discrimination. India's patriarchal culture has made the
Hello aspirant,
Here is the answer to your question.
Marginal costing shows that the meaning of profit gets changed, but here profit means contribution.
Hence, Selling Price= 10 per unit-Variable Cost=6 per unit contribution which is equal to 4 per unit total contribution= 4 per unit * 100000 units= 4
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