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Q. 2 When the Gross profit is more than the total business expenses, the difference is
called:
(a) net loss (b) net Profit (c) cost of goods sold (d) none of these.
Q. 3 At the end of the year, the net profit should be credited in the
(a) drawings a/c (b) profit and loss a/c (c) balance sheet (d) capital a/c
Q.6 The cost of putting goods into a saleable condition should be charged to the
(a) trading a/c (b) profit & loss a/c (c) balance sheet
(d) manufacturing a/c
Q. 11 The transportation cost for bringing the goods into the business is:
(a) travelling expenses (b) carriage inwards
(c) carriage outwards (d) motor expenses
Q. 14 A trader’s Turnover for the year were $ 3, 56,000, and his purchases were $
2,68,000. The stock at the beginning of the year was $ 31,400 and the stock at the end
was $ 34,600. He had returned goods to his suppliers for $ 2,600
What is his gross profit for the year?
(a) $ 86,200 (b)$ 90,600 ($ ) 91,200 ($) 93,800
18. Closing stock of $ 1550 was recorded at 31st December 2004. What is the
opening stock of 2005?
A $ 500B. $ 1000 C. $ 1550D. None of the above
19. A business has the following assets and liabilities at 31st December 2005
$
Premises 80000
stock 15000
debtors 28000
creditors 19000
20. The following trial balance had been taken from the books of a sole trader for
the year ended 31st Dec 2003:-
Account balances Debit $ Credit $
Purchases & sales 70 000 1 46 000
Returns in & out 1 500 1 600
Carriage inwards 6 000
Carriage outwards 3 000
Discount received 6 100
Telephone charges 2 000
Rent paid 700
Advertisement 1 100
Debtors & Creditors 7 700 2 000
Bank loan 10 000
Cash in hand 3 250
Bad debts 500
Power charges 1 000
Salaries & wages 12 000
Premises at cost 40 000
Plant at cost 35 000
Machinery at cost 15 000
Provision for depreciation-Machinery 2250
Motor car at cost 38 000
Capital 73 550
Drawings 1 250
Stock on 1-1-2013 3 500
Total 2 41 500 2 41 500
Additional information:-
1. The stock on 31st Dec 2003 was valued at $ 4 750
2. Depreciate Machinery 10% as reducing balance method
3. Telephone charge prepaid $200
4. Rent due but not paid 300
5. Advertisement paid in advance 100
6. Bad debts written off 600
7. Goods drawings by the owner $400