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CA Foundation Final Accounts of Sole Proprietors — practice questions — page 3

Explore 80 free Final Accounts of Sole Proprietors questions in CA Foundation Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Final Accounts of Sole Proprietors questions and exercises with answers

Showing questions 61–80 of 80.

Customs duty paid on imported goods bought for resale isRead the answer and worked solution →Which may lead to an adjustment of cost of goods sold?Read the answer and worked solution →The profits of a sole proprietorship belong toRead the answer and worked solution →If business assets fall short, creditors of a sole proprietor can recover fromRead the answer and worked solution →A sole proprietor mayRead the answer and worked solution →A sole trader canRead the answer and worked solution →The two forms in which a balance sheet may be presented areRead the answer and worked solution →Contingent liabilities such as warranties in a small business balance sheet areRead the answer and worked solution →Annual subscription of Rs 1,200 is received in advance, service given evenly. After 3 months, unearned revenue isRead the answer and worked solution →Annual fee of Rs 2,400 is received in advance for a service given evenly. Revenue recognised after 5 months isRead the answer and worked solution →Salary is Rs 15,000 a month and the year ends on 31 March. Salary charged for the year isRead the answer and worked solution →Cost of goods sold is Rs 6,50,000 and net sales Rs 6,20,000. The result isRead the answer and worked solution →Gross sales Rs 6,40,000 and sales returns Rs 15,000. Net sales areRead the answer and worked solution →Purchases Rs 4,00,000, purchase returns Rs 25,000, carriage inwards Rs 5,000. Net cost of purchases isRead the answer and worked solution →Current assets are Rs 4,80,000 and current liabilities Rs 3,10,000. Net current assets areRead the answer and worked solution →Machine costing Rs 2,00,000 is bought on 1 October; depreciation 15% a year on cost, year ends 31 March. Charge isRead the answer and worked solution →Investment interest of Rs 12,000 a year is received for nine months only. Accrued income at year end isRead the answer and worked solution →Rs 36,000 rent for 12 months is received on 1 January. At the 31 March year end, unearned rent isRead the answer and worked solution →Charging depreciation on fixed assets has what effect on net profit?Read the answer and worked solution →Net income is also calledRead the answer and worked solution →

Worked practice questions

Customs duty paid on imported goods bought for resale is

  1. Owner's drawings
  2. Part of purchase cost
  3. An office expense
  4. A selling expense
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Correct answer: B. Part of purchase cost

Duty is incurred to acquire the goods, so it is included in their cost.

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Which may lead to an adjustment of cost of goods sold?

  1. Capital introduced
  2. Damage to goods
  3. Rent paid by owner
  4. Owner's drawings
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Correct answer: B. Damage to goods

Decline in value, obsolescence or damage of stock can require adjusting cost of goods sold.

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The profits of a sole proprietorship belong to

  1. Its employees
  2. The sole trader
  3. The government
  4. Its shareholders
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Correct answer: B. The sole trader

The sole trader receives all profits, subject to the tax on the business.

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More Accounting topics

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