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Composition and Manufacture and Uses of Cement

Deepti wants ...

Question

Deepti wants to buy a building for her business today.Which of the following is the relevant data for his decision ?

A

Similar business acquired the required building in 2,000 for Rs. 10,00,000

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B

Building cost details 2003

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C

Building cost details 1998

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D

Similar building cost in August,2005 Rs. 25,00,000

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Solution

The correct option is B Similar business acquired the required building in 2,000 for Rs. 10,00,000
This is the information which in identifying the historical cost of the building and now the price can be compared in present context.

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Similar questions

Q. Mr. John has acquired a floor of a building having 3 halls for Rs 1,500 per month. He uses two halls for his business and one for personal purpose. According to the business entity concept how much rent shall be recorded in the books?

Q. Neha, a partner, owns a building in which the firm carries its business. The firm pays her

R s . 10, 000

as rent of the building. To which account rent will be debited?

Q. Question : Mrs Bhavana keeps his books by Single Entry System. You're required to prepare final accounts of her business for the year ended December 31, 2005. Her records relating to cash receipts and cash payments for the above period showed the following particulars.
Summary of Cash

Receipts	Amt. (Rs)	Payments	Amt. (Rs)
Opening balance of cash	$12, 000$	Paid to creditors	$53, 000$
Further capital	$20, 000$	Business expenses	$12, 000$
Received from debtors	$1, 20, 000$	Wage paid	$30, 000$
		Bhavana's drawings	$15, 000$
		Balance at bank on Dec 31 2005	$35, 000$
		Cash in hand	$7, 000$
	$1, 52, 000$		$1, 52, 000$

The following information is also available

Items	Jan 1, 2005 (Rs)	Dec 31, 2005 (Rs)
Debtors	$55, 000$	$85, 000$
Creditors	$22, 000$	$29, 000$
Stock	$35, 000$	$70, 000$
Plant	$1, 00, 000$	$1, 00, 000$
Machinery	$50, 000$	$50, 000$
Land and Building	$2, 50, 000$	$2, 50, 000$
Investment	$20, 000$	$20, 000$

All her sales and purchases were on credit. Provide depreciation on plant and building by

10 %

and machinery by

5 %

. Make a provision for bad debts by

5 %

.

Q. Question : Mr Ashok does not keep his book properly. Following information is available from his books.

Items	Jan 1, 2005 (Rs)	Dec 31, 2005 (Rs)
Sundry Creditors	$45, 000$	$93, 000$
Loan from wife	$60, 000$	$57, 000$
Sundry Debtors	$22, 500$	------
Land and Building	$89, 600$	$90, 000$
Cash in hand	$7, 500$	$8, 700$
Bank overdraft	$25, 000$	-----
Furniture	$1, 300$	$1, 300$
Stock	$34, 000$	$25, 000$

During the year Mr. Ashok sold his private car for Rs

50, 000

and invested this amount into the business. He withdrew from the business Rs

1, 500

per month upto july 31, 2005 and thereafter Rs

4, 500

per month as drawings. You are required to prepare the statement of affairs as on December 31, 2005.

Q. Manveer started his business on January 01, 2005 with a capital of Rs

4, 50, 000

. On December 31, 2005, his position was as under

Items	(Rs)
Cash	$99, 000$
Bills receivable	$75, 000$
Plant	$48, 000$
Land and Building	$1, 80, 000$
Furniture	$50, 000$

45, 000

from his friend Susheel on that date. He withdrew Rs

8, 000

per month for his household purposes. Ascertain his profit or loss for this year ended December 31, 2005.

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