Finding Credit Sales

What is the correct formula for calculating credit sales?

1. Opening debtors + Receipts from debtors - Closing debtors

2. Closing debtors + Receipts from debtors - Opening debtors

3. Closing debtors - Receipts + Opening debtors

4. None of the above

Net sales during the year 2016 is Rs. 3, 00, 000, gross profit is 25% on cost. Find out gross profit and cost of goods sold.

Are sales a debit or credit?

Sales are equal to:

1. Cost of goods sold - gross profit
2. Gross profit- Cost of goods sold
3. Cost of goods sold + gross profit
4. None of the above

Which of the following should not be called ‘Sales’?

1. Office fixtures sold
   

2. Sale of item previously included in purchases
   

3. Credit sales

4. Goods sold for cash

The sales day book is best described as:

1. Containing customer`s accounts

2. Containing real accounts
   

3. Part of double entry system
   

4. A list of credit sales

Opening debtors = Rs. 2, 00, 000, Closing debtors = Rs. 4, 40, 000, Receipts from debtors = Rs. 1, 20, 000. What is the amount of credit sales during the year?

1. Rs. 3, 60, 000

2. Rs. 4, 60, 000

3. Rs. 2, 40, 000

4. None of the above

Prepare Trading and Profit & Loss Account and Balance sheet from the following Trial Balance as on March 31, 2012.

Trial Balance

$\begin{array}{ccc}\text{Head of Accounts}& \text{Dr.Balance}& \text{Cr.Balance}\\ & \text{(Rs)}& \text{(Rs)}\\ \text{Purchase and Sales}& 3,20,000& 5,30,000\\ \text{Purchase Returns and Sales Returns}& 30,000& 20,000\\ \text{Opening Stock}& 40,000& -\\ \text{Wages}& 15,000& -\\ \text{Power Charges}& 30,000& -\\ \text{Salaries}& 28,000& -\\ \text{Apprenticeship Premium}& -& 15,000\\ \text{Rent}& 16,000& -\\ \text{Rent Outstanding}& -& 4,000\\ \text{October 1, 2011}& 82,000& -\\ \text{Bills Receivable}& 68,000& -\\ \text{Bills payable}& -& 16,000\\ \text{Plant and Machinery}& 1,60,000& -\\ \text{Debtors and Creditors}& 90,000& 50,000\\ \text{Cash in Hand}& 11,000& -\\ \text{Cash at Bank}& 70,000& -\\ \text{Capital}& -& 3,15,000\\ & \overline{\underset{–}{9,50,000}}& \overline{\underset{–}{9,50,000}}\end{array}$

Additional Information:

(a) Closing stock is valued at Rs 25, 000.
(b) Goods costing Rs 32, 000 purchased from Agra are still in transit.
(c) Apprenticeship premium is for two years. For one year, it is in advance.
(d) Depreciate Plant and Machinery @ 10% and Furniture @ 20%.
(e) Wages of Rs 5, 000 are outstanding.

Or

The following is the trial balance of Mr. Rajeev Gautam on 31st March, 2012.

$\begin{array}{ccc}\text{Particulars}& \text{Dr.Amount}& \text{Cr.Amount}\\ & \text{(Rs)}& \text{(Rs)}\\ \text{Cash in Hand}& 10,800& -\\ \text{Cash at Bank}& 52,600& -\\ \text{Purchases}& 8,13,500& -\\ \text{Sales}& -& 19,75,600\\ \text{Returns Outward}& -& 10,000\\ \text{Wages}& 2,09,600& -\\ \text{Fuel and Power}& 94,600& -\\ \text{Carriage Outwards}& 64,000& -\\ \text{Carriage Inwards}& 40,800& -\\ \text{Stock(1st April, 2011)}& 1,15,200& -\\ \text{Building}& 6,00,000& -\\ \text{Freehold Land}& 2,00,000& -\\ \text{Machinery}& 4,00,000& -\\ \text{Salaries}& 3,00,000& -\\ \text{Patents}& 1,50,000& -\\ \text{General Expenses}& 60,000& -\\ \text{Insurance}& 12,000& -\\ \text{Capital}& -& 14,20,000\\ \text{Drawings}& 1,04,900& -\\ \text{Sundry Debtors}& 2,90,000& -\\ \text{Sundry Creditors}& \underset{–}{-}& \underset{–}{1,26,000}\\ & \underset{–}{35,31,600}& \underset{–}{35,31,600}\end{array}$

Taking into account the following adjustments, prepare Trading and Profit & Loss Account and the Balance Sheet:

(a) Stock on hand on 31st March, 2011 is Rs 1, 36, 000.
(b) Machinery is to be depreciated @ 10% and patents @ 20%.
(c) Salary for the month of March, 2012 amounting to Rs 30, 000 were unpaid.
(d) Insurance includes a premium of Rs 1, 700 due in next year.
(e) Wages include a sum of Rs 40, 000 spent on the erection of cycle shed for employees and customers.
(f) A provision for bad debts is to be created to the extent of 5% on Sundry debtors.

Miss Priyanka runs a small bakery business. On 1st April, 2015 she had started the business with a capital of Rs. 78, 000. On 31st March, 2016 her incomplete records provide the following data

(i) Amount due to suppliers of raw materials Rs. 17, 500.

(ii) Stock of raw materials Rs. 2, 000 and finished products Rs. 2, 500.

(iii) Fixed assets Rs. 34, 000.

(iv) Amount due from customers Rs. 42, 000.

(v) She had withdrawn Rs. 2, 500 per month for meeting her personal expenses.

(vi) She had introduced Rs. 7, 000 as capital during the year.

(vii) She has cash at bank Rs. 21, 000 and cash in hand Rs. 1, 800.

(viii) Outstanding electricity bill Rs. 2, 250

Calculate the profit / loss of her business during the year using statement of affairs method.

1. purchases
2. debtors
3. creditors
4. sales

What do you Mean by the Cash Memo and Credit Memo?

Is sales book a part of the ledger?

A business has compiled the following information for the year ended 31st December, 2018:

The gross profit as a percentage of sales is always 40%. Based on these figures, what is the sales revenue for the year?

1. Rs. 23, 81, 250

2. Rs. 15, 87, 500

3. None of the above

4. Rs. 13, 33, 500

Following balances are extracted from the ledger of Shri. Ram as on 31^st March, 2012. Prepare Trial Balance as on that date.

The total amount of credit sales can be derived from _____ account.

1. Creditors

2. Cash

3. None of these

4. Debtors

Opening debtors = Rs. 1, 20, 000,
Closing debtors = Rs. 2, 40, 000,
Receipts from debtors = Rs. 52, 000.
What is the amount of credit sales during the year?

1. Rs. 2, 92, 000

2. Rs. 1, 20, 000

3. Rs. 1, 72, 000

4. None of the above

1. Rs. 4, 60, 000
2. Rs. 3, 60, 000
3. Rs. 2, 40, 000
4. Rs. 4, 00, 000

Find the gain or loss percent in the following case$:$

$S.P.$ $₹15\frac{1}{2}$ and Gain $₹2$

A machine is bought for Rs $3200$ and sold for Rs $3600$. Find the gain percent.

A shopkeeper bought a chain for $Rs375$ and sold it for $Rs400$.Find the gain percentage.

1. purchase book
2. bank account
3. debtors account
4. jounal

1. Rs. 2, 000
2. Rs. 28, 000
3. None of the above
4. Rs. 22, 000

1. Letter of credit
2. Consignment
3. Open Account
4. None of the above

1. 96300
2. 96000
3. 95000
4. 96500

1. True
2. False

1. Daily cash sales summary
2. Monthly statements sent to customers
3. Salesmen's summary
4. Bank statement

1. Production function analysis
2. Break-even analysis
3. Decision making analysis
4. Demand analysis

1. Closing Entry
2. Adjusting Entry
3. Transaction Entry
4. Opening Entry