25 October 2011
.The manger of firm is entitled to a Commission of 10% on Net profit After his commission. if NP of the firm before charging comm is RS 440000 the amt of maneger s comm will be? 2.goods purchased for RS 20000 & sold were for RS 160000 margin 20% on sales closing stock is..? 3.goods costing RS 20000 was sold @ the invoice price of 20% above cost with trad discount 10% amt of sales will be? 4.the opening stock is overstated by 10000 & cl.stock is under stated by 15000 the impect on these on NP for current year is?
30 October 2011
Hi saurabh,the answer to ur question is : 1. if manager is entitled to 10% commission on profits after such commission then profit before commission must be 110% which is4,40,000. therefore, Commission = 4,40,000 / 110 x 10 = 40,000 2. I assume that goods purchased r of2,00,000. given, margin on sales is 20% i.e.Rs. 32,000 (1,60,000 x 20%, it means cost of goods sold will be 1,60,000 - 32,000 = 1,28,000. therefore closing stock is2,00,000 - 1,28,000 =72,000 3.since goods are sold 20% above cost, the catalogue price will 20,000 + 20% = 24,000 selling price = 24,000 - 10% TD = 21,600 4. profit will reduce by 25,000 Regards, CA Shakuntala Chhangani
02 November 2011
1.Credit balance of sales account is 1,06,000 and returns inwards is 6000/-. A goods costing 10,000 were sent to a customer for 12,000/- on sale or return basis. The goods were not approved. What is the net sale amount?
2.A company forfeited A’s 1000 shares10 each @ 10% discount. But A failed to pay first call of2 and final call of4 and all the shares were re issued for 8 per share as fully paid up. The loss on re issue is ____ to forfeited account will be
3.Purchased the asset for2,00,000 with available discount 20% then what amount should be credited to debentures A/c, when the purchase consideration is discharged by the issue of debentures
03 November 2011
Hi Again, the answer to ur question is: 1.I presume that transactions for sale on approval are few and these are passed through sales book. Sales as per sales account 1,06,000 (-) return inwards 6,000 (-) Sale on approval 12,000 Net sales 88,000 2. It is given that co. issued shares @10% discount and collected Rs.9 per share from shareholders. A's shares position is as follows : Called up amount Rs. 9 per share (-) unpaid (2 + 4) Rs. 6 per share paid up Rs. 3 per share the paid up amount, since will not be refunded to A upon forfeiture, can be taken as initial profit for the co. Further, for the shares which were initially issued at discount, discount will be recorded at the time of reissue which is Rs. 1. The co. reissued shares at Rs. 8 per share it means discount is Rs. 2 per share out of which Rs. 1 is initial discount and balance is additional discount which will be allowed out of initial profit of the co. Initial profit per share Rs. 3 further discount upon reissue Rs. 1 Capital profit per share Rs. 2 which will be transferred to capital reserve and as such there is no loss on reisssue. 3. Debentures always appear in books at face value which is calculated as under : Debentures = 2,00,000/80 x 100 = 2,50,000 Regards, CA Shakuntala Chhangani Initial profit
1.C Ltd. recorded the following information as on March 31, 2010:
Stock as on April 01, 2009 80,000 Purchases 1,60,000 Sales 2,00,000
It is noticed that goods worth30,000 were destroyed due to fire. Against this, the insurance company accepted a claim of20,000.
The company sells goods at cost + 33 1/3 % The value of closing inventory, after taking into account the above transactions is,..........
2.P Ltd. issued 5,000, 12% debentures of 100 each at a premium of 10%, which are redeemable after 10 years at a premium of 20%. The amount of loss on redemption of debentures to be written off every year is
3.A company sends its cars to dealers on ‘sale or return’ basis. All such transactions are however treated like actual sales and are passed through the sales day book. Just before the end of the financial year, two cars which had cost 55,000 each have been sent on ‘sale or return’ and have been debited to customers at 75,000 each, cost of goods lying with the customers will be
4.A second hand machinery is purchased for10,000, the amount of1,500 is spent on its transportation and1,200 is paid for installation. The amount debited to machinery account will be
04 November 2011
Hi, answer to ur question is : 1. given GP is 1/3 on cost that is 1/4 i.e. 25% on sales opening stock 80,000 (+) Purchases 1,60,000 cost of goods available for sale 2,40,000 (-) Cost of goods sold 1,50,000 (2,00,000 - 25%) (-) Cost of Goods lost by fire 30,000 Closing stock 60,000 2.Face value of debentures 5,00,000 Premium on red. @ 20% 1,00,000 life of deb. 10 years amt. to be w/off every year 10,000 3. Cost of goods lying with customers = 55,000 x 2 = Rs. 1,10,000 4. purchase price 10,000 + transportation cost 1,500 + Installation cost 1,200 Dr. to Machinery A/c 12,700 My dear friend out of these 2 questions are from ur module for which answers are given. Ask 1 question in one query so that the experts can give answer to that as per their time convenience as because of shortage of time, we may hesitate to give answer to long/many questions. Further, if it is a new question, start a new query so that others can also get benefited by it. Regards, CA Shakuntala Chhangani
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