Practice Test

Q1) On 31st dec.,2005 goods sold at a Sale price of Rs.30,000 were lying with the customers ,M to whom these goods were sold on 'Sale or Return basis ' and recorded as actual Sales.Since no consent was received from M,the adjustment entry was made presuming goods were sent on approval at a profit of cost + 20%.in the balance sheet,the stock with customers account will be shown at rs. Show Answer

Q2) A sent some goods costing Rs.3,500 at a profit of 25% on Sale to B on Sale or Return basis .B Returned goods costing RS.800.At the end of the accounting period i.e.on 31st december,2005 the remaining goods were neither Returned nor were approved by him the stock on approval will be shown in the balance sheet at Rs. Show Answer

Q3) Under Sales or Return or approval basis, the ownership of goods is passed only Show Answer

Q4) A merchant sends out his goods casually to his dealers on approval basis .All such transactions are, however recorded as actual Sales and passed through the Sales book On 31-12-2005,it was found that 100 articles at a Sale price of 200 each sent on approval basis were recorded as actual Sales at that price .The Sale price was made at cost + 25 % . The amount of stock on approval will be amounting. to Rs. Show Answer

Q5) A company sends its cars to dealers on 'Sale or Return' basis .All such transactions are, however recorded as actual Sales and passed through the Sales book. Just before the end of financial year , two cars which had cost RS.55,000 each have been sent on Sale or Return basis and have been debited to customers account at Rs.75,000 each, cost of goods lying with the customers will be Show Answer

Q6) A trader has credited certain items of Sale on approval aggregating Rs.60,000 to Sales account .Of these ,goods of the value of Rs.16,000 have been Returned and taken into stock at cost Rs.8,000 though the records of Return was omitted in the accounts .In respect of another parcel of Rs.12,000 (cost being Rs.6,000) the period of the approval did not expire on closing date . Cost of goods lying with the customers should be Show Answer

Q7) Under Sales or Return or approval basis, when transactions are few ,the seller, while sending the goods ,treats them as Show Answer

Q8) Under Sales or Return or approval basis, when transactions are few &,the seller, at the end of the accounting year reverse the Sale entry , then what will be the accounting treatment for the goods Returned by the customers on a subsequent date Show Answer

Q9) which of the following is not a main column of Sales or Return journal ? Show Answer

Q10) Sales or Return day book and Sale or Return ledger are known as Show Answer

Q11) In Sale or Return ledger Show Answer

Q12) When the goods are returns by the customers within the specified time ,they are recorded Show Answer

Q13) Under Sales or Return or approval basis, when transactions are few , & the seller, sends the goods on approval or return basis,the accounting treatment will be Show Answer

Q14) Under Sales or Return or approval basis, when transactions are moderate , & the seller, sends the goods on approval or return basis,the accounting treatment will be Show Answer

Q15) Under Sales or Return or approval basis, when transactions are large , & the seller, sends the goods on approval or return basis,the accounting treatment will be Show Answer

Q16) Under Sales or Return or approval basis, when transactions are few , & the customer accepts the goods , the accounting treatment will be Show Answer

Q17) when Sales or return journal is maintained ,a journal entry is passed for ? Show Answer

Q18) when Sales or return day book & sales or return ledgers are maintained & the goods are sent to the customers on sale or return basis ,these are recorded Show Answer

Q19) when Sales or return day book & sales or return ledgers are maintained & the goods are approved by the customers ,these are recorded Show Answer

Q20) What is the objective behind selling goods on approval basic : Show Answer

Q21) In case of sale of goods on approval basic, the sale will take place under which of the following case (s) ? Show Answer

Q22) When the goods are sent on sale of the return basic, the sale of the accounted for Show Answer

Q23) Under sales on return or approval basic (when transaction are few) the seller, sends goods by treating these as Show Answer

Q24) In case business sends goods casually, If customers returns the goods on a subsequent date, which entry has to be passed : Show Answer

Q25) At what price goods pending approval or return, as on the last day accounting year are valued Show Answer

Q26) What account is created for goods lying with the customer as on the last day of the accounting year? Show Answer

Q27) Which of these statement is true ?

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Q28) A company sends its cars to dealers on 'sale or return' basis. All such transaction are, however treated like actual. sales and are passed through the sales day book. Just before and end pf the financial year, two cars which had cost Rs.50,000 each have been sent on 'sale or return' and have been debited to customers at Rs.80,000 each, cost of goods lying with the customers will be

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Q29) A merchant sends out his goods casually to his dealers on approval basis. All such transaction are, however, recorded as actual sales and are passed through the sales book. On 31.12.2008, it was found that 200 article at a sale price of 200 each sent on approval basic were recorded as actual sales at that price. The sale price was made at cost plus 25% . The amount of stock on approval will be

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Q30) On 31st December, 2008 goods sold at a sale price of Rs.15,000 were lying with a customer, to whom these goods were sold on 'sale or return basis' and received from him 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.

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Q31) Goods of Rs.600 (sales price) sent on sale in approval basis were includes in the sale of book.The profit included in the sales was 20% on cost. Stock with the party will increase closing stock by --

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Q32) A trader has credited certain items of sales on approval aggregating Rs.50,000 to sales Account. of these, goods of the value of Rs.20,000 have been returned and takes into stock at cost Rs.10,000 though the record of return was omitted in the accounts. In respect of another parcel of Rs.12,000 (cost being Rs.6,000) the period of approval did not expire on the closing date. Cost of goods lying with customers should be

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Q33) A sent Some goods costing Rs.3600 at a profit of 25% on sales to B on sale or return basis. B returned goods costing Rs.900. At the end of the accounting period i.e. on 31st December,2008, the remaining goods were neither returned nor were approved by him. The stock on approval will be shown in the balance sheet at Rs.

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Q34) Mr.Z sent goods worth Rs.50,000 on 1st march on reject or approval basis. Goods worth Rs.25,000 were still pending with the customer on 31st March and the remaining goods were accepted by the customer.How Would you deal with the goods lying with the customers as 31st March . Assuming that the goods were invoiced at 25% above the cost price

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Q35) Mr. P sent goods worth Rs.50,000 on 11th March on reject or approval basis. Out of which goods worth Rs.30,000 were accepted by the customers till 31st March and the remaining were still pending with the customers as on 31st March. How would you deal with the goods lying with the customer as on 31st March. Assumption 25% profit on cost --

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Q36) A trader has credited certain items of sales on approval aggregating Rs.60,000 to Sales Account. Of these, goods of the value of Rs.16,000 have been returned and takes into stock at cost Rs.8,000 though respect of another parcel of Rs.12,000 (cost being Rs.6,000) The period of approval did not expire on the closing date. Cost of goods lying with customers should be

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Q37) ABC Ltd. sells goods to its approval customers on sale or return basis at a profit of 20% on sales, treating as actual sales. On 26th March, 2006 goods costing Rs. 10,000 were sent to Annu Ltd. No confirmation has been received from Annu Ltd. till 31st March, 2006. The stock with customers to be shown as closing stock in the balance sheet of ABC Ltd. as on Show Answer

Q38) Varun Ltd. sends goods to his customers on sales or Return recording it was a sale at the time of sending it for approval. During 2006, Varun Ltd. send goods to cost plus 33.33%. On September 2006. a letter of approval was received from a customer for Rs.40,000. In this respect, entry will be Show Answer

Q39) There was no communication from the customer Show Answer

Q40) The customer returned 20% of the goods on 31st March 2006 Show Answer

Q41) The customer approved 80% of the goods on 31st March,2006 Show Answer

Q42) The customer returned 20% of the goods an approved the balance on 31st March, 2006 Show Answer

Q43) The customer returned 20% of the goods approval 80% of the remaining goods on 31st march, 2006 Show Answer

Q44) When a large number of articles of are sent on a sale or return basis, it is necessary to maintain Show Answer

Q45) Sale or Return Day Book and Sale or return Ledger is known as - Show Answer

Q46) Which types of account is sale or return day book Show Answer

Q47) When the goods are returned by the customers within the specified time, they are recorded Show Answer

Q48) Under sales on return or approval basis, when transactions are numerous the seller while sending the goods treats then as : Show Answer

Q49) Which of these statements is not true? Show Answer

Q50) The total shown under Goods sent out column of the memorandum sale or return book is - Show Answer

Q51) The total shown under goods sold column of the Memorandum sale or return book is Show Answer

Q52) The total shown under goods returned column of the memorandum sale or return book Show Answer

Q53) The total shown under Balance goods column of the memorandum Sale or return book is Show Answer

Q54) Total of the Goods sent on approval day book on 31 March is Show Answer

Q55) The balance of Goods on approval A/c in the Approval ledger Show Answer

Q56) The balance in Z's A/c in the Approval Ledger will Show Answer

Q57) The balance of Sales A/c in general ledger will be - Show Answer

Q58) Under sales on return or approval basis, the ownership of goods is passed only Show Answer