Question :
| Sundry Creditors | 28,000 | Debtors 6,000 Less: Prov. for doubtful debts (400) |
5,600 |
| Bills Payable | 12,000 | Stock | 22,000 |
| Outstanding Salary | 2,200 |
Furniture |
41,000 |
| Provision for Legal Damages | 6,000 | Premises | 30,000 |
Premises are undervalued by 20%, stock is overvalued by 10% and provision for doubtful debts was to be made 5% on debtors. Further provision for legal damages is to be made for Rs.4,100 and furniture is to be brought up to Rs.45,000. Profit and loss on revaluation is ---------------
Option 1: Loss Rs 18,000
Option 2: Profit Rs 18,000
Option 3: Neither profit nor loss
Option 4: Profit Rs 10,000
Correct Answer: Profit Rs 10,000
Solution : Answer = None of the above
Revaluation A/C
| Stock | 2000 | By Premises | 6000 |
| Profit on Revaluation | 10000 | By Pror. for Bad Debt | 100 |
| Furniture | 4000 | ||
| Prov. for legal damages | 1900 | ||
| 12000 | 12000 |
Let Actual value of premises = Rs.100
Undervaluation of 20% = Rs.100 X 20% = Rs.20
Undervalued value is given in the Balance Sheet= Rs.100 - Rs.20 = Rs.80
100/80 * 24000 = 30000. Increase in premises = 30000 - 24000 = 6000.
Hence, the correct option is 4.
Related Questions
Question :
| Debtors | 16,000 | |
| Less: Provision for Doubtful Debts | 800 | 15,200 |
1. Debtors of Rs. 1,000 be written off as it is no longer receivable.
2. Provision for Doubtful Debts be maintained at the existing rate.
Revaluation account will be
Option 1: Debited by Rs 750
Option 2: Debited by Rs 550
Option 3: Debited by Rs 950
Option 4: None of the above
Question : At the time of dissolution of partnership firm, balance sheet of XY is as follows:
Balance Sheet as on March 31, 2021
Balance Sheet as on March 31, 2021
| Liabilities | Rs. | Assets | Rs. |
| Debtors 1,48,000 (-) Provision for debts (18,000) |
1,30,000 |
While preparing Realisation A/c "Debtors" should be written by _________.
Option 1: Rs.1,48,000
Option 2: Rs.18,000
Option 3: Rs.1,30,000
Option 4: None of the above
Question : Calculate change in stock.
| Particulars | Rs. in crore |
| Closing stock | 5426 |
| Opening stock | 3456 |
Option 1: 1970
Option 2: 3456
Option 3: 5426
Option 4: 8882
Question : From the following information,
| Particulars | 31 st March, 2020(Rs) | 31 st March, 2019(Rs) |
| General Reserve | 1,50,000 | 1,00,000 |
| Surplus, i.e, Balance in Statement of Profit and Loss | 70,000 | (60,000) |
| Goodwill | 80,000 | 1,00,000 |
| 10% Non-current Investments | 1,60,000 | 60,000 |
| inventories | 2,45,000 | 60,000 |
| Provision for Doubtful Debts | 1,50,000 | 1,00,000 |
| 10% Debentures | 2,10,000 | 1,00,000 |
| Discount on Issue of Debentures | ......... | 10,000 |
Question:
Interest on Investment if new investment was made on 1 October 2019 _______.
Option 1: Rs 16,000
Option 2: Rs 6,000
Option 3: Rs 11,000
Option 4: None of the above
Question : From the following information,
| Particulars | 31 st March, 2020(Rs) | 31 st March, 2019(Rs) |
| General Reserve | 1,50,000 | 1,00,000 |
| Surplus, i.e, Balance in Statement of Profit and Loss | 70,000 | (60,000) |
| Goodwill | 80,000 | 1,00,000 |
| 10% Non-current Investments | 1,60,000 | 60,000 |
| inventories | 2,45,000 | 60,000 |
| Provision for Doubtful Debts | 1,50,000 | 1,00,000 |
| 10% Debentures | 2,10,000 | 1,00,000 |
| Discount on Issue of Debentures | ......... | 10,000 |
Question:
Interest on Investment if new investment was made on 1 October 2019 _______.
Option 1: Rs 16,000
Option 2: Rs 6,000
Option 3: Rs 11,000
Option 4: None of the above
