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Financial Statements of NPO

'Good sent on...

Question

'Good sent on approval basis' have been recorded as 'Credit sales'. This is an example of

A

Error of principle

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B

Error of commission

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C

Error of omission

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D

Error of duplication

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Solution

The correct option is A Error of principle

'Good sent on approval basis' has been recorded as 'Credit sales'. This is an example of the Error of principle.
If the accounting entries are not recorded as per the generally accepted accounting principles then it is known as the Error of Principle.

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Q. 'Goods sent on approval basis' have been recorded as 'Credit sales'. This is an example of ______________.

31 s t M a r c h

, goods sold at a sale price of

R s . 30, 000

were lying with customer, Mohan to whom these goods were sold on 'sale or return basis' and recorded as actual sales. Since no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus

20

%. In the balance sheet, the stock with customers account will be shown at _________.

Q. On 31st March, goods sold at a sale price of Rs. 30,000 were lying with customer, Mohan to whom these goods were sold on 'sale or return basis' and recorded as actual sales. Since no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the stock with customers account will be shown at Rs_________.

Q. In cases of goods sent on approval basis, the goods are at the __________, if they perish in an inevitable accident.

Q. The cost of inventory as per physical verification as on 24th March was Rs.4,00,000. Goods are sold at a profit of 25%on cost.
On 21st March, goods on the sales value of Rs.1,00,000 were sent on sale on return basis to a customer , the period of approval being two week .He returned 20% of the goods on 31st March.
The cost of inventory as per books on 31st march is ______________.

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