CA Foundation · Accounting & Mercantile Law

Final Accounts of Sole Proprietorship and Manufacturing Accounts

10 practice questions, each with the answer and an explanation.

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Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 10 questions

  1. A firm net profit before charging manager commission is ₹1,32,000. The manager is entitled to a commission of 10% on net profit after charging such commission. What is the commission?
  2. Sundry Debtors on 31 March stand at ₹2,05,000. Further bad debts to be written off are ₹5,000. A provision for doubtful debts of 5% is to be created. What is the required provision?
  3. Raw materials consumed are ₹3,50,000, direct wages are ₹1,20,000, and direct expenses are ₹30,000. Factory overheads are 40% of prime cost. What is the total factory cost?
  4. A machinery bought for ₹2,00,000 on 1 July is depreciated at 10% per annum on original cost. Accounts close on 31 December. What is the depreciation for the first year?
  5. Which of the following expenditures is classified as capital expenditure in accounting?
  6. Opening stock of raw materials is ₹40,000, purchases are ₹2,80,000, carriage inward is ₹15,000, and closing stock is ₹55,000. What is the raw material consumed?
  7. Heavy expenditure of ₹5,00,000 incurred on launching a nationwide advertising campaign for a new product line is best classified as which of the following?
  8. Where does Provision for Discount on Debtors appear in the financial statements?
  9. If closing inventory appears inside the Trial Balance, what is its proper accounting treatment?
  10. Cost of goods sold is ₹6,00,000 and the firm maintains a gross profit margin of 25% on sales. What is the total sales figure?

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