Practice Test

Q1) Bank overdraft a per trial balance is Rs.1,60,000. Bank has allowed the customer to overdrew 80% of the hypothecated value of the stock. Hypothecation of stock has been the done of the Bank at 80% of the original stock value. The amount i the closing stock. Show Answer

Q2) The amount of purchase if , Cost of goods sold is Rs.80,700 ,Opening stock Rs.5,800 Closing stock Rs.6,000 Show Answer

Q3) Average stock =Rs.12,000. Closing stock is Rs.3,000 more than opening stock . The value of Closing stock= Show Answer

Q4) If the profit is 25% of the cost price then it is Show Answer

Q5) Goods purchased Rs.1,00,000.Sales Rs.90,000.Margin 20% on cost. Closing stock=? Show Answer

Q6) A company is following weighted average cost method for valuing its inventory. The details of its purchase and issue of raw material during the week are as follows :12.2005 opening stock 50 units value Rs.2,220, 12.2005 purchased 100 units @Rs.47.,12.2005 issued 50 units., 12.2005 purchased 200 units @Rs. 48. The value of inventory at the end of the week and the weighted average cost is Show Answer

Q7) The books of T.ltd. Revealed the following information :opening inventory Rs.6,00,000 , Purchase during the year 2003/2004 Rs.34,00,000 Sales during the Year 2003/2004 Rs.48,00,000 . On March 31, 2004 , the value of inventory as per physical stock -taking was Rs.3,25,000. The company's gross profit on Sales has remained constant at 25%. The management of the company suspects that some inventory might have been pilfered by a new employee. What is the estimated cost of missing inventory ? Show Answer

Q8) The books of B.ltd. Revealed the following information :opening inventory Rs.6,00,000 , Purchase during the year 2004/2005 Rs.34,00,000 Sales during the Year 2004/2005 Rs.48,00,000 . On March 31, 2005 , the value of inventory as per physical stock -taking was Rs.3,25,000. The company's gross profit on Sales has remained constant at 25%.The management of the company suspects that some inventory might have been pilfered by a new employee. What is the estimated cost of missing inventory ? Show Answer

Q9) C Ltd recorded the following information as on March 31,2005: Stock as on April 01,2004 Rs.80,000 , purchases Rs.1,60,000 , Sales Rs.2,00,000 It is noticed that goods worth Rs.30,000 were destroyed due to fire .Against this the insurance company accepted a claim of Rs.20,000. The company sells goods at cost plus 33.1/3 % .the value of closing stock , after taking into account the above transactions is , Show Answer

Q10) If the goods are in transit , then the journal entry at the end of the period will be Show Answer

Q11) D Company , a dealer in cosmetics , records its inventory under first-in-first-out method , so as to minimize accumulation of outdated stock . The opening stock as on September 01,2005 is 150 units at the rate of Rs.20 per unit . The purchase and Sales made during the month are: Purchases on 04-09-2005 , 200 units , cost price per unit Rs.25, on 14-09-2005 , 100 units cost price per unit Rs.22 ; Sales on 03-09-2005, No of units 100 , and , on 10-0--2005 No of units 150 With effect from September 01, 2005 , the company decided to change the method of inventory to LIFO consequent upon the change in the method of valuation is Show Answer

Q12) E Ltd ., a dealer in second -hand car's has the following five vehicles of different models and makes in their stock at the end of the financial years 2004-2005: Car- fiat ,Cost- 90,000 , Net realizable value Rs.95,000 ,Car-Ambassador , Cost-1,15,000 , Net realizable value Rs.1,55,000 , Car-Marti- Esteem , Cost-2,75,000 , Net realizable value Rs.2,65,000 , Car-Marti- 800 , Cost-1,00,000 , Net realizable value Rs.1,25,000 , Car-Zen , Cost-2,10,000 , Net realizable value Rs.2,00,000 . The value of Stock included in the balance sheet of the company as on March 31,2005 was Show Answer

Q13) On April 07 , 2005 , i.e,a week after the end of the accounting year 2004-05,a company undertook physical stock verification. The value of stock as per physical stock verification was found to be Rs.35,000. The following details pertaining to the period April 01,2005 to April 07, 2005 are given : I. Goods costing Rs.5,000 were sold during the week. , II. Goods received from consignor amounting to Rs.4,000 included in the value of stock. III . Goods earlier purchased but Returned during the period amounted to Rs.1,000 IV. Goods earlier purchased and accounted but not received Rs.6,000 . After considering the above , the value of stock held as on March 31 , 2005 was Show Answer

Q14) While finalizing the current year's profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year , closing stock was valued more by Rs.50,000. As a result Show Answer

Q15) A company follows weighted average cost method for the valuation of its inventory. The details of purchase and issue of raw material pertaining to the company during the week April 01, 2006 to April 07, 2006 are as follows :- Date : April 01, Particulars : Opening stock , Purchase units : 50 units , Issued units :-- Rate per unit (Rs.44 ; , Date : April 02, Particulars : - , Purchase units : 100 units , Issued units :-- Rate per unit (Rs.47 , Date : April 04, Particulars :- , Purchase units : -- , Issued units :50, Rate per unit (Rs):-- . The value of inventory at the end of the week under weighted average method is Show Answer

Q16) Consider the following information pertaining to G & sons as a March 31,2005: Particulars : Opening Stock Rs.15,00,000 , Purchases during the year 2004-05 Rs.45,00,000. Sales during the year 2004-05 Rs.50,00,000 As per the Physical inventory taken on March 31,2005 the closing inventory was Rs.20,90,000.gross profit on Sales has remained constant at 25%. The management of the firm suspects that some inventory might have been taken away by a new employee. The estimated cost of missing inventory on the close of the financial year and the cost of goods sold during the year , respectively are Show Answer

Q17) S Ltd. Follows perpetual Inventory system. On March 31 of every year , the company undertakes physical stock verification .On March 31,2004,the value of stock as per the records differed from the value as per the physical stock. On scrutiny , the following differences were noticed : Goods purchased for Rs.10,000 were received and included in the physical stock but no entry was made in the books . Goods costing Rs.30,000 were sold and entered in the books but the stock is not yet to be delivered. Goods worth Rs.5,000 are Returned to the suppliers but is omitted to be recorded. If the inventory is valued in the books at Rs.1,50,000,the value of the physical inventory is Show Answer

Q18) Consider the following information pertaining to H & sons as a March 2005: Particulars : Stock Rs.1,,80,000 as on March 01,2005 , Stock Rs.90,000 as on March 31,2005 .The company made purchases amounting Rs.3,30,000 on credit. During the month of March 2005 , the company paid a sum of Rs.3,50,000 to the suppliers. the goods are sold at 25% above the cost. The Sales for the month of March 2005 were Show Answer

Q19) Consider the following information pertaining to a company for the month of March 2005: Particulars :Opening Stock Rs.22,000 , Closing Stock Rs.25,000, Purchases less Returns Rs.1,10,000 , Gross profit margin (on Sales) 20% . Sales for the month of March 2005 are Show Answer

Q20) Consider the following information pertaining to N Ltd for the month of March 2005: Date :-01-03-2005 , Particulars :Quantity(kg) :- Nil, Rate :- Rs.0 ,Issues :- :,Quantity(kg) ;- 0 :, Balance:-Quantity(kg) :- 500 , Rate :- Rs.22.80 ,: Date :-02-03-2005 , Particulars :Quantity(kg) :- 400, Rate :- Rs.24 ,Issues :- nil:,Quantity(kg) ;- 0 :, Balance:-Quantity(kg) :- 0 , Rate :- -:,Date :-10-03-2005 , Particulars :Quantity(kg) :- 600, Rate :- Rs.25 ,Issues :- :,Quantity(kg) ;- 0 :, Balance:-Quantity(kg) :- 0 , Rate :-0 , Date :-25-03-2005 , Particulars :Quantity(kg) :- 0, Rate :- Rs.0 ,Issues :- :,Quantity(kg) ;-1, 000 :, Balance:-Quantity(kg) :- 0 , Rate :-0. If the company uses weighted average method for inventory valuation , the value of inventory as on March 31,2005 is Show Answer

Q21) O Ltd .maintains the inventory records under perpetual system of inventory. Considers the following data pertaining to inventory of O Ltd. Held for the month of March 2005 :Date :-Mar. 1 , Particulars ;- Opening inventory , Quantity :-15 , Cost per unit (Rs.):-400, Date :-Mar. 4 , Particulars ;- Purchase , Quantity :- 20 , Cost per unit (Rs.):- 450 ; Date :-Mar. 6 , Particulars ;- Purchase , Quantity :- 10 , Cost per unit (Rs.):- 460 ;. If the company sold 32 units on March 24,2005,Closing inventory under FIFO method is Show Answer

Q22) Consider the following information pertaining to R Ltd for the month of June 2004 :Particulars ; Opening stock Rs. 30,000 , Closing stock :-Rs.40,000 , Purchases Rs.5,60,000 , Returns outwards Rs.15,000 , Returns inwards ;- Rs.20,000 , carriage inward ;- Rs.5,000. If the gross profit is 205 of net Sales , the gross Sales for the month of June 2004 is Show Answer

Q23) Consider the following for Q company for the year 2005-06:; Cost of goods available for Sale :- Rs.1,00,000 , Total Sales ;- Rs.80,000 Opening stock Rs. 20,000 Gross profit margin ;- Rs.25%, Closing stock of goods for the year 2005-06 was , Show Answer

Q24) If the opening inventory is understated and closing inventory is overstated Show Answer

Q25) Inventory consists of Show Answer

Q26) Consider the following information pretaining to credit purchase made by K Ltd.,a dealer in electronic goods for the month of March 2005: Date :-March 01 , Particulars :- Black & White TV's , No.of units - 50 , Rate per unit :- 3,000 , Trade Discount ;-10% , Date :-March 01, Particulars :-colour TV's :- No.of units -: 10 , Rate per unit :- 6,000 , Trade Discount ;-10% , Date :-March 09, Particulars :- Tape Recorders No.of units -: 10 , Rate per unit :- 1,000 , Trade Discount ;-10%, Date :-March 09, Particulars :- Two-in-one , No.of units -: 10 , Rate per unit :- 1,500 , Trade Discount ;-10% ,Date :-March 19, Particulars :- Audio cassettes , No.of units -: 100 , Rate per unit :- 30 , Trade Discount ;- 5% . On March 22 , 2005 , the company purchased from LM Stationers on credit for office use 10 dozens of carbon papers at the rate of Rs.35 per dozen and 10 dozen of ball pens at the rate of Rs.25 per dozen. At the time of making payment on March 31,2005 ,the suppliers have allowed a cash discount of 10%on the above purchases. The total of purchases for the month of march 2005,was Show Answer

Q27) the inventory of finished goods is valued at Show Answer

Q28) As per As-2 ,the historical cost of inventories should normally be determined by using Show Answer

Q29) as per As-2 ,the historical cost of manufactured inventories should be arrived at on the basis of Show Answer

Q30) as per As-2 ,the historical cost may be compared with net realizable value by Show Answer

Q31) damage inventory is valued at Show Answer

Q32) where cost of by product can not be separately determined ,inventory of by products should be valued at Show Answer

Q33) when FIFO method is followed ,during period of rising prices Show Answer

Q34) which of the following is True ? Show Answer

Q35) under inflationary conditions ,which of the method will show higher value of closing stock ? Show Answer

Q36) under inflationary conditions ,which of the method will show lowest value of closing stock ? Show Answer

Q37) under inflationary conditions ,which of the method will show greatest value of cost of goods sold ? Show Answer

Q38) under inflationary conditions ,which of the method will show lowest value of cost of goods sold ? Show Answer

Q39) cost of Goods sold is equal to Show Answer

Q40) closing stock is equal Show Answer

Q41) if the opening inventory is understated Show Answer

Q42) if the opening inventory is overstated Show Answer

Q43) if the closing stock is understated Show Answer

Q44) if the closing stock is overstated Show Answer

Q45) in the previous year , closing stock was valued more by Rs.10,000 . As a result Show Answer

Q46) opening inventory Rs.1,00,000 . Purchases Rs.4,00,000 , sales Rs.3,00,000.Selling price -33 1/3 % on cost . Goods costing Rs.25,000 destroyed by fire The estimated cost of closing inventory is Show Answer

Q47) opening inventory Rs.1,00,000 . Purchases Rs.4,00,000 , sales Rs.3,00,000.Selling price -33 1/3 % on cost .The estimated cost of closing inventory is Show Answer

Q48) opening inventory Rs.1,00,000 . Purchases Rs.4,00,000 , sales Rs.3,00,000.Selling price -33 1/3 % on cost . Goods costing Rs.25,000 destroyed by fire Market value of closing inventory is 20% less than the cost. In the financial statements closing inventories will appear at Show Answer

Q49) CAS Ltd. Recorded the following information's on march 31,2007 : Stock as on April 01 ,2006 Rs.1,60,000 ; purchases Rs.3,20,000 ; sales Rs.4,00,000 , .it is noticed that goods worth Rs.60,000 were destroyed due to fire .against this the insurance company accepted a claim of Rs.40,000.The company sells goods at cost + 331/3 % .the value of closing stock ,after taking into a//c the above transaction is Show Answer

Q50) opening inventory Rs.1,00,000 . Purchases Rs.4,00,000 , sales Rs.3,00,000.Selling price -33 1/3 % on cost . Value of closing inventory as per physical verification Rs.2,00,000 The estimated cost of missing inventory is Show Answer

Q51) the books of CAS Ltd reveled the following information ; Opening inventory Rs.12,00,000 ; Purchase during the year 06-07 Rs.68,00,000 ; Sales Rs.96,00,000 . On march 31,2007 , the value of inventory as per physical stock-taking was Rs.6,50,000.The company gross profit on sales has remained constant at 25 %.the management of the company suspects that some inventory might have been pilfered by a new employee .What is the estimated cost of missing inventory ? Show Answer

Q52) the books of CAS Ltd reveled the following information ; Opening inventory Rs.30,00,000 ; Purchase during the year 06-07 Rs.90,00,000 ; Sales Rs.1,00,00,000 . On march 31,2007 , the value of inventory as per physical stock-taking was Rs.41,80,000.The company gross profit on sales has remained constant at 25 %.the management of the company suspects that some inventory might have been taken away by a new employee . the estimated cost of missing inventory on the close of the financial year & the cost of goods sold during the year respectively are Show Answer

Q53) opening inventory Rs.1,00,000 . Purchases Rs.4,00,000 , closing stock Rs.2,75,000 .Selling price 25 % on sales .The sales are Show Answer

Q54) the books of CAS Ltd reveled the following information for the month of march 2007 ; Opening inventory Rs.44,000 ;closing stock Rs.50,000 Purchase less return Rs.2,20,000 ;gross profit on sales 20 % .the sales are Show Answer

Q55) the books of CAS Ltd reveled the following information for the month of march 2007 ;as at March 01,2007, stock Rs.3,60,000 ;as at March 31,2007, stock Rs.1,80,000 ;The company made purchases amounting Rs.6,60,000 on credit .during the month of march 2007 , the company paid a sum of Rs.7,00,000 to the suppliers .the goods are sold at 25 % above the cost. the sale for the month of march 2007 were Show Answer

Q56) The books of CAS Ltd reveled the following information for the month of march 2007 ; Opening inventory Rs.60,000 ;closing stock Rs.80,000 Purchase Rs.11,20,000 return outward Rs.30,000 ; return inward Rs.40,000 ; carriage inward Rs.10,000 if the gross profit on sales 20 % of net sales the gross sales for the month of march 2007 is Show Answer

Q57) sales Rs.30,000 .selling price = 33 1/3 % on cost .Cost of goods available for sale Rs.5,00,000 . Closing inventory is Show Answer

Q58) The books of CAS Ltd reveled the following information for the year 2006-2007 ; cost of goods available for sale Rs.2,00,000 Opening inventory Rs.1,60,000 ;total sales Rs.1,60,000 ;gross profit on margin 25 % .the closing stock for the year 06-07 are Show Answer

Q59) cost of Goods sold available for sale Rs.5,00,000 . Selling price = 25% on sales .closing inventory Rs.2,75,000 .the sales are Show Answer

Q60) The total cost of Goods sold available for sale with the company during the current year is Rs.12,00,000 & the total sales during the period are Rs.13,00,000. if the gross profit margin of the company is 33 1/3 % on cost , the closing inventory during the current year is Show Answer

Q61) X Ltd purchased 100 units @ Rs. 10 for cash ,200 units @ Rs.20 subjects to 10% trade discount & 5 % cash discount against current dated cheque .the total amount of purchase is Show Answer

Q62) opening inventory Rs.1,00,000 .sales Rs.3,00,000 , closing stock Rs.2,75,000 .Selling price 33 1/3 % on cost .The Purchases are Show Answer

Q63) April 01 Opening stock 50 units @ Rs.44 per unit ; April 02 Purchases 100 units @ Rs.47 per unit ; April 07 Issued 50 units .The value of inventory at the end of the week Under Weighted Average Method is Show Answer

Q64) April 01 Opening stock 50 units @ Rs.44 per unit ; April 02 Purchases 100 units @ Rs.47 per unit ; April 07 Issued 50 units .The value of inventory at the end of the week Under FIFO Method is Show Answer

Q65) April 01 Opening stock 50 units @ Rs.44 per unit ; April 02 Purchases 100 units @ Rs.47 per unit ; April 07 Issued 50 units .The value of inventory at the end of the week Under LIFO Method is Show Answer

Q66) S company a dealer in cosmetics, recorded its inventory under FIFO method , so as to minimize accumulation of outdated stock . The opening stock as on January 01,2007 is 150 units at the rate of Rs.20 per unit. the purchases & sales made during the month are ; Date 05-01-2007 purchase 200 units @ Rs.25 ; Date 15-01-2007 purchase 100 units @ Rs.22 ; Date 04-01-2007 sold 100 .Date 11-01-2007 sold 150 .With effect from Jan 01,2007 , the company decided to change the method of inventory valuation from FIFO to LIFO method . the change in the value of the inventory consequent upon the change of method of valuation is Show Answer

Q67) Consider the following information pertaining to N Ltd for the month of March 2007: Date :-01-03-2007 , Particulars :Quantity(kg) :- Nil, Rate :- Rs.0 ,Issues :- :,Quantity(kg) ;- 0 :, Balance:-Quantity(kg) :- 500 , Rate :- Rs.45.60 ,: Date :-02-03-2007 , Particulars :Quantity(kg) :- 400, Rate :- Rs.48 ,Issues :- nil ;,Quantity(kg) ;- 0 :, Balance:-Quantity(kg) :- 0 , Rate :- -:,Date :-10-03-2007 , Particulars :Quantity(kg) :- 600, Rate :- Rs.50 ,Issues :- :,Quantity(kg) ;- 0 :, Balance:-Quantity(kg) :- 0 , Rate :-0 , Date :-25-03-2007 , Particulars :Quantity(kg) :- 0, Rate :- Rs.0 ,Issues :- :,Quantity(kg) ;-1, 000 :, Balance:-Quantity(kg) :- 0 , Rate :-0. If the company uses weighted average method for inventory valuation , the value of inventory as on March 31,2007 is Show Answer

Q68) The following details supplied to Cas Ltd in respect of its raw material for the month of December 2007 , Date :-01-12-2007 , Particulars :Receipts (units ) :- 2,000 opening, Rate :- Rs.10 ,Issues units) ;- 0 : Date :-07-12-2007 , Particulars :Receipts (units ) :- 1,000, Rate :- Rs.12 ,Issues :- nil ; Date :-10-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0 ,Issues (units ) ;-2,500 ; Date :-15-12-2007 , Particulars :Receipts (units ) :- 2,000, Rate :- Rs.13 ,Issues :- nil ; Date :-31-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0,Issues :- 2,200 ; ,On 31.12.2007 , a shortage of 100 units was found. Find the value of closing stock using LIFO method principle Show Answer

Q69) The following details supplied to Cas Ltd in respect of its raw material for the month of December 2007 , Date :-01-12-2007 , Particulars :Receipts (units ) :- 2,000 opening, Rate :- Rs.10 ,Issues units) ;- 0 : Date :-07-12-2007 , Particulars :Receipts (units ) :- 1,000, Rate :- Rs.12 ,Issues :- nil ; Date :-10-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0 ,Issues (units ) ;-2,500 ; Date :-15-12-2007 , Particulars :Receipts (units ) :- 2,000, Rate :- Rs.13 ,Issues :- nil ; Date :-31-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0,Issues :- 2,200 ; ,On 31.12.2007 , a shortage of 100 units was found. using the data given in the problem , the value of issue in the month of December 2007 using LIFO method principle Show Answer

Q70) The following details supplied to Cas Ltd in respect of its raw material for the month of December 2007 , Date :-01-12-2007 , Particulars :Receipts (units ) :- 2,000 opening, Rate :- Rs.10 ,Issues units) ;- 0 : Date :-07-12-2007 , Particulars :Receipts (units ) :- 1,000, Rate :- Rs.12 ,Issues :- nil ; Date :-10-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0 ,Issues (units ) ;-2,500 ; Date :-15-12-2007 , Particulars :Receipts (units ) :- 2,000, Rate :- Rs.13 ,Issues :- nil ; Date :-31-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0,Issues :- 2,200 ; ,On 31.12.2007 , a shortage of 100 units was found. using the data given in the problem , the value of closing stock in the month of December 2007 using FIFO method principle Show Answer

Q71) The following details supplied to Cas Ltd in respect of its raw material for the month of December 2007 , Date :-01-12-2007 , Particulars :Receipts (units ) :- 2,000 opening, Rate :- Rs.10 ,Issues units) ;- 0 : Date :-07-12-2007 , Particulars :Receipts (units ) :- 1,000, Rate :- Rs.12 ,Issues :- nil ; Date :-10-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0 ,Issues (units ) ;-2,500 ; Date :-15-12-2007 , Particulars :Receipts (units ) :- 2,000, Rate :- Rs.13 ,Issues :- nil ; Date :-31-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0,Issues :- 2,200 ; ,On 31.12.2007 , a shortage of 100 units was found. using the data given in the problem , the value of issue in the month of December 2007 using FIFO method principle Show Answer

Q72) The following details supplied to Cas Ltd in respect of its raw material for the month of December 2007 , Date :-01-12-2007 , Particulars :Receipts (units ) :- 2,000 opening, Rate :- Rs.10 ,Issues units) ;- 0 : Date :-07-12-2007 , Particulars :Receipts (units ) :- 1,000, Rate :- Rs.12 ,Issues :- nil ; Date :-10-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0 ,Issues (units ) ;-2,500 ; Date :-15-12-2007 , Particulars :Receipts (units ) :- 2,000, Rate :- Rs.13 ,Issues :- nil ; Date :-31-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0,Issues :- 2,200 ; ,On 31.12.2007 , a shortage of 100 units was found. using the data given in the problem , the value of closing stock in the month of December 2007 using simple average principle Show Answer

Q73) The following details supplied to Cas Ltd in respect of its raw material for the month of December 2007 , Date :-01-12-2007 , Particulars :Receipts (units ) :- 2,000 opening, Rate :- Rs.10 ,Issues units) ;- 0 : Date :-07-12-2007 , Particulars :Receipts (units ) :- 1,000, Rate :- Rs.12 ,Issues :- nil ; Date :-10-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0 ,Issues (units ) ;-2,500 ; Date :-15-12-2007 , Particulars :Receipts (units ) :- 2,000, Rate :- Rs.13 ,Issues :- nil ; Date :-31-12-2007 , Particulars :Receipts (units ) :- 0, Rate :- Rs.0,Issues :- 2,200 ; ,On 31.12.2007 , a shortage of 100 units was found. using the data given in the problem , the value of issue in the month of December 2007 using simple average principle Show Answer

Q74) PA' company furnished following details :- Date : April 01, Particulars : Opening stock : 100 units ,Rate (Rs.3.50 ; Date : April 02, Particulars : - , Purchase : 150 units , Rate (Rs.3.00 , Date : April 04, Particulars :- , Purchase units :300, Rate per unit (Rs.3.20 Date : April 08, Particulars :- , issued units :200, Rate per unit (Rs): 0 Date : April 12, Particulars :- , issued units :250, Rate per unit (Rs):0. What is the value of closing inventory under weighted average method is Show Answer

Q75) PA' company furnished following details :- Date : April 01, Particulars : Opening stock : 100 units ,Rate (Rs.3.50 ; Date : April 02, Particulars : - , Purchase : 150 units , Rate (Rs.3.00 , Date : April 04, Particulars :- , Purchase units :300, Rate per unit (Rs.3.20 Date : April 08, Particulars :- , issued units :200, Rate per unit (Rs): 0 Date : April 12, Particulars :- , issued units :250, Rate per unit (Rs):0. What is the value of closing inventory under FIFO ,method Show Answer

Q76) PA company furnished following details :- Date : April 01, Particulars : Opening stock : 100 units ,Rate (Rs.3.50 ; Date : April 02, Particulars : - , Purchase : 150 units , Rate (Rs.3.00 , Date : April 04, Particulars :- , Purchase units :300, Rate per unit (Rs.3.20 Date : April 08, Particulars :- , issued units :200, Rate per unit (Rs): 0 Date : April 12, Particulars :- , issued units :250, Rate per unit (Rs):0. What is the value of issue under FIFO ,method Show Answer

Q77) PA' company furnished following details :- Date : April 01, Particulars : Opening stock : 100 units ,Rate (Rs.3.50 ; Date : April 02, Particulars : - , Purchase : 150 units , Rate (Rs.3.00 , Date : April 04, Particulars :- , Purchase units :300, Rate per unit (Rs.3.20 Date : April 08, Particulars :- , issued units :200, Rate per unit (Rs): 0 Date : April 12, Particulars :- , issued units :250, Rate per unit (Rs):0. What is the value of closing inventory under LIFO ,method Show Answer

Q78) PA' company furnished following details :- Date : April 01, Particulars : Opening stock : 100 units ,Rate (Rs.3.50 ; Date : April 02, Particulars : - , Purchase : 150 units , Rate (Rs.3.00 , Date : April 04, Particulars :- , Purchase units :300, Rate per unit (Rs.3.20 Date : April 08, Particulars :- , issued units :200, Rate per unit (Rs): 0 Date : April 12, Particulars :- , issued units :250, Rate per unit (Rs):0. What is the value of issue under LIFO ,method Show Answer

Q79) PA' company furnished following details :- Date : April 01, Particulars : Opening stock : 100 units ,Rate (Rs.3.50 ; Date : April 02, Particulars : - , Purchase : 150 units , Rate (Rs.3.00 , Date : April 04, Particulars :- , Purchase units :300, Rate per unit (Rs.3.20 Date : April 08, Particulars :- , issued units :200, Rate per unit (Rs): 0 Date : April 12, Particulars :- , issued units :250, Rate per unit (Rs):0. What is the value of issue under weighted average method is Show Answer

Q80) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The value of inventory on June 30 using FIFO method of inventory costing is Show Answer

Q81) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The amount of cost of goods sold for June using FIFO method is Show Answer

Q82) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The profit & loss on June 30 using FIFO method of inventory costing is Show Answer

Q83) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The value of inventory on June 30 using weighted average method of inventory costing is Show Answer

Q84) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The amount of cost of goods sold for June using weighted average method of inventory costing is Show Answer

Q85) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The profit & loss on June 30 using weighted average method of inventory costing is Show Answer

Q86) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The value of inventory on June 30 using LIFO method of inventory costing is Show Answer

Q87) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The amount of cost of goods sold for June using LIFO method is Show Answer

Q88) Bharat Indian Oil is a bulk distributor of petrol .A periodic inventory of petrol on hand is taken when the books are closed at the end of each month .the following summary of information is available for the month : sales Rs.9,45,000 ; General administration cost Rs.25,000 ; Opening Stock : 1,00,000 litres @ Rs.3 per liter Rs.3,00,000 . ;Purchases (including freight inward) ;June 1- 2,00,000 litres @ Rs.2.85 per litre ; June 30 -1,00,000 litres @ Rs.3.03 per litre ;June 30- Closing stock 1,30,000 litres . The profit & loss on June 30 using LIFO method of inventory costing is Show Answer

Q89) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000:Between 24th March & 31st March the following transaction took place, Purchases Rs.2,00,000 out of which 20% goods were returned. Sales of Rs.2,00,000 out of which 20 % goods were returned .Goods are sold at a profit of 25% on cost. The cost of inventory as per books is Show Answer

Q90) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000:Between 24th March & 31st March the following transaction took place, Sales Rs.2,21,600 which includes sales of Rs.10,800 at 20% more than normal selling price .Sales of Rs.10,800 out of which 20 % less than normal selling price .Note: The normal selling price is 25 % on cost .The cost of inventory as per books is Show Answer

Q91) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 21st ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. The cost of inventory as per books is Show Answer

Q92) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 21st ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He returned 20% of the goods on 31st March The cost of inventory as per books is Show Answer

Q93) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 21st ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He approved 80% of the goods on 31st March The cost of inventory as per books is Show Answer

Q94) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 21st ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He returned 20% of the goods & approved the remaining on 31st March The cost of inventory as per books is Show Answer

Q95) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 21st ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He returned 20% of the goods & approval 80% of the remaining on 31st March The cost of inventory as per books is Show Answer

Q96) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000. Goods are sold at a profit of 25% on cost .On march 27th ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. The cost of inventory as per books is Show Answer

Q97) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 27th ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He returned 20% of the goods on 31st March The cost of inventory as per books is Show Answer

Q98) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 27th ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He approved 80% of the goods on 31st March The cost of inventory as per books is Show Answer

Q99) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 27th ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He returned 20% of the goods & approved the remaining on 31st March The cost of inventory as per books is Show Answer

Q100) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 27th ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. He returned 20% of the goods & approval 80% of the remaining on 31st March The cost of inventory as per books is Show Answer

Q101) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 27th ,Goods of the sale value of Rs.1,00,000 were sent on sale or return basis to a customer ,the period of approval being two weeks. But it was well known that he had pledge 80% of the goods with the bank on 31st March .The cost of inventory as per books is Show Answer

Q102) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 23rd ,Goods costing Rs.2,00,000 were received for sale on consignment basis 80% of the goods had been sold on 31st march .On march 23rd ,Goods of the sale value of Rs.2,00,000 were sent for sale on consignment basis 80% of the goods had been sold on 31st march. The cost of inventory as per books is Show Answer

Q103) The cost of inventory as per physical verification as on March 24,2007 was Rs.4,00,000 Goods are sold at a profit of 25% on cost .On march 27th ,Goods costing Rs.2,00,000 were received for sale on consignment basis 80% of the goods had been sold on 31st march .On march 27th ,Goods of the sale value of Rs.2,00,000 were sent for sale on consignment basis 80% of the goods had been sold on 31st march. The cost of inventory as per books is Show Answer

Q104) On April 07 , 2007 , i.e,a week after the end of the accounting year 2006-07,a company undertook physical stock verification. The value of stock as per physical stock verification was found to be Rs.70,000.The following details pertaining to the period April 01 , 2007 To April 07 , 2007 are given ; I. Goods costing Rs.10,000 were sold during the week ; II. Goods received from cosigner amounting to Rs.8,000 included in the value of stock ; III. Goods earlier purchased but returned during the period amounted to Rs.2,000; IV . Goods earlier purchased and accounted but not received Rs.12,000.After considering the above ,the value of stock held as on March 31 ,2007 was Show Answer

Q105) X who was closing his book on 31.03.2007 failed to take the actual stock which he did on 9th April , when it was ascertained by him to be worth Rs.50,000 . It was found that sales are entered in the sales day book on the same day of dispatch & the returns inward in the return book as & when the goods are received back .Purchase are entered in the purchase day book once the invoice are received .observation (I) Sales between 31st march & 9th April as per sales book are Rs.1,720 . Rate of gross profit is 33 1/3% on cost . (ii) Purchase during the same period as per purchase book are Rs.120. (iii) out of the above purchase ,goods amounting to Rs.50 were not received until after the stock was taken . (iv) Goods invoiced during the month . but goods received only on 4th April ,amounted to Rs.100 .The value of physical stock on 31st march is Show Answer

Q106) Cost of stock as per physical verification as on 24th march amounted to Rs.2,00,000.Purchases as per purchase book after stock taking till 31st march amounted to Rs.2,00,000 & including the following ; (I) Rs.10,000 for goods received till 23rd march ; (ii) Rs.20,000 for goods received on 1st April. sales as per sales book after taking ,till 31st march amounted to Rs.2,00,000 & included the following (I) Rs.10,000 for goods delivered till 23rd march ; (ii) Rs.20,000 for goods delivered on 1st April. Goods are sold by the trader at a profit of 25% on cost. the value of stock as per books is Show Answer

Q107) Cost of stock as per physical verification as on 24th march amounted to Rs.2,38,000.Purchases as per purchase book after stock taking till 31st march amounted to Rs.2,00,000 & including the following ; (I) Rs.10,000 for goods received till 23rd march ; (ii) Rs.20,000 for goods received on 1st April. sales as per sales book after taking ,till 31st march amounted to Rs.2,00,000 & included the following (I) Rs.10,000 for goods delivered till 23rd march ; (ii) Rs.20,000 for goods delivered on 1st April. Goods are sold by the trader at a profit of 25% on cost. the value of physical inventory is Show Answer

Q108) Cost of stock is Rs.2,38,000. Goods Purchases for Rs.10,000 received but omitted to be recorded; (ii)Goods costing Rs.20,000 were sold & delivered but omitted to be recorded (iii) Goods costing Rs.5,000 were returned by the customers but omitted to be recorded (iv) Goods costing Rs.3,000 were returned to the supplier but omitted to be recorded The value of physical inventory is Show Answer

Q109) Cost of stock is Rs.2,30,000. Goods Purchases for Rs.10,000 received but omitted to be recorded; (ii)Goods costing Rs.20,000 were sold & delivered but omitted to be recorded (iii) Goods costing Rs.5,000 were returned by the customers but omitted to be recorded (iv) Goods costing Rs.3,000 were returned to the supplier but omitted to be recorded The value of physical inventory is Show Answer

Q110) Cost of stock is Rs.2,38,000. Goods Purchases for Rs.10,000 & but are yet to be received; (ii)Goods costing Rs.20,000 sold & recorded but are yet to be delivered (iii) Goods costing Rs.5,000 were returned by the customers but omitted to be recorded (iv) Goods costing Rs.3,000 were returned to the supplier but omitted to be recorded . The value of physical inventory is Show Answer

Q111) CAS Ltd. follows perpetual Inventory system. On March 31 of every year , the company undertakes physical stock verification .On March 31,2007,the value of stock as per the records differed from the value as per the physical stock. On scrutiny , the following differences were noticed : Goods purchased for Rs.20,000 were received and included in the physical stock but no entry was made in the books . Goods costing Rs.60,000 were sold and entered in the books but the stock is yet to be delivered. Goods worth Rs.10,000 are Returned to the suppliers but is omitted to be recorded. If the inventory is valued in the books at Rs.3,00,000,the value of the physical inventory is Show Answer

Q112) CAS Ltd ., a dealer in second -hand car's has the following five vehicles of different models and makes in their stock at the end of the financial years 2006-2007: Car- Fiat ,Cost- 1,80,000 , Net realizable value Rs.1,90,000 ,Car-Ambassador , Cost-2,30,000 , Net realizable value Rs.3,10,000 , Car-Marti- Esteem , Cost-5,50,000 , Net realizable value Rs.5,30,000 , Car-Marti- 800 , Cost-2,00,000 , Net realizable value Rs.2,50,000 , Car-Zen , Cost-4,20,000 , Net realizable value Rs.4,00,000 . The value of Stock included in the balance sheet of the company as on March 31,2006-07 was Show Answer

Q113) In Stock Valuation, the principle at cost price or Market Price whichever is lower will result in the valuation of stock sometimes at cost price and at other times at Market Price. This is an application of the principle of Show Answer

Q114) By products are generally valued at_____ when the cost of by products is not directly traceable. Show Answer

Q115) Net realizable value is _____. Show Answer

Q116) Inventory valuation affect Show Answer

Q117) Which of the following are not taken into consideration while calculating Closing Stock? Show Answer

Q118) The following are the features of perpetual inventory system except _____. Show Answer

Q119) A businessman purchased goods for Rs. 25,00,000 and sold 70% of such goods during the accounting year ended 31st March, 2014. The market value of remaining goods was Rs. 5,00,000. He valued the Closing Stock at Rs.5,00,000 and not at Rs. 7,50,000 due to Show Answer

Q120) The cost of sales is equal to - Show Answer

Q121) The Cost of Goods Sold is equal to - Show Answer

Q122) If the closing inventory of a business is undercast, it will Show Answer

Q123) An undervaluation of previous year opening inventory will Show Answer

Q124) An overvaluation of previous years opening inventory will Show Answer

Q125) An overvaluation of current years opening inventory will Show Answer

Q126) An undervaluation of current years closing inventory will Show Answer

Q127) The Opening Stock is overstated by Rs. 10,000 and Closing Stock is understated by Rs. 15,000. The impact on the Net Profit of the current year is Show Answer

Q128) Using Adjusted selling price method. Find closing stock at historical cost: Purchase = 7,00,000 Opening Stock & Direct Exp. = Nil Sales = 8,00,000 Closing Stock at selling price = 200,000 Show Answer

Q129) Estimated selling price of a product in the ordinary course of business, less reasonably predictable costs of disposal Show Answer

Q130) Under inflationary conditions, which of the methods will not show lowest value of closing stock? (i) FIFO (ii) LIFO (iii) Weighted average (iv) All of the above. Show Answer

Q131) Under inflationary conditions, which of the methods will not show greatest value of cost of goods sold? (i) FIFO (ii) LIFO (iii) Weighted average (iv) All of the above. Show Answer

Q132) Goods purchased Rs.1,00,000. Sales Rs.90,000. Margin 20% on cost. Closing Inventory = ? Show Answer

Q133) The cost of sales is equal to Show Answer

Q134) Inventory is disclosed in financial statements under: Show Answer

Q135) Accounting Standards do not permit following method of inventory valuation Show Answer

Q136) Which inventory costing formula calculates value of closing inventory considering that inventory most recently purchased has not been sold? Show Answer

Q137) Valuing inventory at cost or net releasable value is based on which principle Show Answer

Q138) Which of the following methods does not consider historical cost of inventory? Show Answer