Closing stock appearing in the Trial Balance is shown in:

Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?A. 1,600
B. 1,500
C. 1,000
D. 1,800Total Sales value =2000

Gross Profit =25 % of Sales
= 25/100×2000
= 500 Gross Profit
Cost of Goods = Total Sales – Gross Profit
=2000-500 = 1500

 

Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.

A. 50,000
B. 55,000
C. 60,000
D. 65,000

Prepaid expenses are valued on the Balance Sheet at

A. Replacement cost
B. Current cost
C. Cost to acquire less accumulated amortization
D. Cost less expired portion
Prepaid expenses are the expenses which relate to the unexpired portion of the benefit
of the expense. Hence, these are valued on the Balance Sheet at the cost less expired portion

SALE of old furniture” will be recorded in which of the following specialised journals?

A. Purchase journal
B. Sales journal
C. General journal
D. Cash receipt journal

Capital of a business decreases if there is an increase in___________?

A. Drawings
B. Income
C. Gains
D. Fresh capital