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Introduction to Debentures

Which of the ...

Question

Which of the following should not be called as sales?

A

Good sold on credit

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B

Office fixtures sold

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C

Sale of item previously included in purchase

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D

Good sold for cash

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Solution

The correct option is B Office fixtures sold
The term sales is used for the normal trading activity of the business. The goods in which the firms deals are the trading goods and sale of this is considered as sales account.

Selling of an office fixture is not the trading activity of the business hence not to be recorded as sales. Any profit or loss on account of such transaction to be recorded in profit & loss account.

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Similar questions

Q. Which of the following should be entered in the Journal?
(i) Payment for purchases
(ii) Fixtures bought on credit
(iii) Credit sale of goods
(iv) Sale of surplus machinery.

Q. Rectify the following errors:-
(i) Goods for ₹ 5,500 were purchased from Modern Traders on credit, but no entry has yet been passed.
(ii) Purchase Return for ₹ 1,500 not recorded in the books.
(iii) Goods for ₹ 2,000 sold to 'Geeta Traders' on Credit were entered in the sales book as ₹ 200 only.
(iv) Goods of the value of ₹ 1,800 returned by Sunil & Co. were included in stock, but no entry was passed in the books.
(v) Goods purchased for ₹ 900, entered in the purchases book as ₹ 9,000.
(vi) An invoice for goods sold to X was overcast by ₹ 100.

Q. If goods be purchase for Rs.

380

\frac{2}{3}

rd be sold at loss of 15%, at what gain percent should the remainder be sold so as to gain

10

% on the whole transaction

Q. Three items are purchased at Rs.450 each. One of them is sold at a loss of 10%. The other two be sold so as to gain 20% on the whole transaction. What is the gain % on these two items ?

Q. From the following information, calculate value of Opening Inventory:

Closing Inventory	=	₹ 68,000
Total Sales	=	₹ 4,80,000 (including Cash Sales ₹ 1,20,000)
Total Purchases	=	₹ 3,60,000 (including Credit Purchases ₹ 2,39,200)

Goods are sold at a profit of 25% on cost.

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