22' Janith PLC hired a building on 1/1/2017 and paid Rs. 120,000 as the annual rent for the year ending31/12/2017 on that date. The rent paid on 01/01/2018 for the year ending 31/12/2018 is Rs. 180,000. Theaccounting year is ended on 31/3. The rent should be recorded in the income statement for the yearending 31/3/2018 and the rent paid in advance as at that date is,Rent in the income statement (Rs.) Pre-paid rent1' 120,000 135,0002' 120,000 180,0003' 135,000 45,0004' 135,000 135,0005 165,000 45,000 (…..)23' Following information relevant for Imalka's business.As at 31/3/2018 (Rs.) As at 1/4/2017 (Rs.)Debtors 80,000 50,000Stock 50,000 30,000Cash received by the debtors during the period Rs. 320000 and gross profit ratio is 20% on sales.The value of the purchases should be taken to income statement is,1. Rs. 250,000 2. Rs. 260,000 3. Rs. 271,0004. Rs. 300,000 5. Rs. 310,000 (…..)24' Following information provided relevant for Panduka's business for the year ending 31/3/2018Rs.Sales 500,000Purchases 380,000Return outward 10,000Stock as at 1.4.2017 60,000Stock as at 31.3.2018 70,000A stock worth of Rs. 20,000 totally damaged due to a fire. Gross profit for the year ending 31.3.2018 is,1. Rs. 100,000 2. Rs. 120,000 3. Rs. 140,0004. Rs. 150,000 5. Rs. 160,000 (…..)25' Employers and employees contribution for EPF are 15% and 10% respectively. The contribution for ETFis 3% . The balance of the salary expense account for the year ending 31/3/2018 is Rs. 720,000 and thepaid salary after deducting the contribution for EPF by the employee has been debited to salary expenseaccount and credited to cash control A/C. EPF and ETF are calculated on gross salary. The total expenserelevant for employees for the year ending 31/3/2018.1. Rs. 720,000 2. Rs. 800,000 3. Rs. 920,0004. Rs. 944,000 5. Rs. 964,000 (…..) Use following information to answer Q. No. 26 and 27(1) Salaries Rs.- Payable as at 31/3/2017 4000- Payable as at 31/3/2018 24000- paid in the year ending 31.3.2018 44,000(2) Rent incomeReceived a rent income on 1/10/17 of Rs. 90000 for 9 month ending 30.06.2018626' Salary expense and rent income should be recorded in the income statement for the year ending31/3/2018Salary (Rs.) Rent income (Rs)1' 24,000 30,0002' 28,000 30,0003' 44,000 60,0004' 64,000 60,0005 64,000 90,000 (…..)27' The total liability should be recognized in the statement of financial position as at 31.03.2018 for salary1. Rs. 24,000 2. Rs. 30,000 3. Rs. 54,0004. Rs. 60,000 5. Rs. 64,000 (…..)28' Following information is provide about rates and taxRs.Accrued rates and tax as at 1.4.2017 65,000payments within the period- Rates 150,000- Tax 80,000Payable tax as at 31.3.2018 20,000Pre-paid rates as at 31.3.2018 10,000The tax and rates expense should be recorded in the income statement is,1. Rs. 175,000 2. Rs. 230,000 3. Rs. 185,0004. Rs. 155,000 5. Rs. 240,000 (…..)29' Select the answer having only the current assets1. Good will, stock, trade receivables, pre - payments2. Trade receivables, pre- payments, stock, cash3. Trade receivables, stock, patent, cash4. Investments, Good will, stock, cash5. Copyright, Trade receivables, cash, prepayment (…..)30' Information of a business registered for VAT is given for you (for the year ending 31/3/18)(Rs. 000)Sales (including VAT) 920Purchases (Including VAT) 460cost of the stock as at 1.4.2017 120cost of the stock as at 31.3.2018 80VAT percentage is 15%The gross profit for the year ending 31.3.2018 is ,1. Rs. 360,000 2. Rs. 380,000 3. Rs. 400,0004. Rs. 420,000 5. Rs. 440,000 (…..)
Question
22' Janith PLC hired a building on 1/1/2017 and paid Rs. 120,000 as the annual rent for the year ending31/12/2017 on that date. The rent paid on 01/01/2018 for the year ending 31/12/2018 is Rs. 180,000. Theaccounting year is ended on 31/3. The rent should be recorded in the income statement for the yearending 31/3/2018 and the rent paid in advance as at that date is,Rent in the income statement (Rs.) Pre-paid rent1' 120,000 135,0002' 120,000 180,0003' 135,000 45,0004' 135,000 135,0005 165,000 45,000 (…..)23' Following information relevant for Imalka's business.As at 31/3/2018 (Rs.) As at 1/4/2017 (Rs.)Debtors 80,000 50,000Stock 50,000 30,000Cash received by the debtors during the period Rs. 320000 and gross profit ratio is 20% on sales.The value of the purchases should be taken to income statement is,1. Rs. 250,000 2. Rs. 260,000 3. Rs. 271,0004. Rs. 300,000 5. Rs. 310,000 (…..)24' Following information provided relevant for Panduka's business for the year ending 31/3/2018Rs.Sales 500,000Purchases 380,000Return outward 10,000Stock as at 1.4.2017 60,000Stock as at 31.3.2018 70,000A stock worth of Rs. 20,000 totally damaged due to a fire. Gross profit for the year ending 31.3.2018 is,1. Rs. 100,000 2. Rs. 120,000 3. Rs. 140,0004. Rs. 150,000 5. Rs. 160,000 (…..)25' Employers and employees contribution for EPF are 15% and 10% respectively. The contribution for ETFis 3% . The balance of the salary expense account for the year ending 31/3/2018 is Rs. 720,000 and thepaid salary after deducting the contribution for EPF by the employee has been debited to salary expenseaccount and credited to cash control A/C. EPF and ETF are calculated on gross salary. The total expenserelevant for employees for the year ending 31/3/2018.1. Rs. 720,000 2. Rs. 800,000 3. Rs. 920,0004. Rs. 944,000 5. Rs. 964,000 (…..) Use following information to answer Q. No. 26 and 27(1) Salaries Rs.- Payable as at 31/3/2017 4000- Payable as at 31/3/2018 24000- paid in the year ending 31.3.2018 44,000(2) Rent incomeReceived a rent income on 1/10/17 of Rs. 90000 for 9 month ending 30.06.2018626' Salary expense and rent income should be recorded in the income statement for the year ending31/3/2018Salary (Rs.) Rent income (Rs)1' 24,000 30,0002' 28,000 30,0003' 44,000 60,0004' 64,000 60,0005 64,000 90,000 (…..)27' The total liability should be recognized in the statement of financial position as at 31.03.2018 for salary1. Rs. 24,000 2. Rs. 30,000 3. Rs. 54,0004. Rs. 60,000 5. Rs. 64,000 (…..)28' Following information is provide about rates and taxRs.Accrued rates and tax as at 1.4.2017 65,000payments within the period- Rates 150,000- Tax 80,000Payable tax as at 31.3.2018 20,000Pre-paid rates as at 31.3.2018 10,000The tax and rates expense should be recorded in the income statement is,1. Rs. 175,000 2. Rs. 230,000 3. Rs. 185,0004. Rs. 155,000 5. Rs. 240,000 (…..)29' Select the answer having only the current assets1. Good will, stock, trade receivables, pre - payments2. Trade receivables, pre- payments, stock, cash3. Trade receivables, stock, patent, cash4. Investments, Good will, stock, cash5. Copyright, Trade receivables, cash, prepayment (…..)30' Information of a business registered for VAT is given for you (for the year ending 31/3/18)(Rs. 000)Sales (including VAT) 920Purchases (Including VAT) 460cost of the stock as at 1.4.2017 120cost of the stock as at 31.3.2018 80VAT percentage is 15%The gross profit for the year ending 31.3.2018 is ,1. Rs. 360,000 2. Rs. 380,000 3. Rs. 400,0004. Rs. 420,000 5. Rs. 440,000 (…..)
Solution
This is a long set of questions, so I'll break it down and answer each one step by step.
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The rent for the year ending 31/3/2018 would be calculated by taking 3/4th of the rent paid for the year 2017 (Rs. 120,000) and 1/4th of the rent paid for the year 2018 (Rs. 180,000). So, the rent in the income statement would be (120,0003/4) + (180,0001/4) = Rs. 135,000. The prepaid rent would be the remaining amount of the rent paid for the year 2018, which is (180,000*3/4) = Rs. 135,000. So, the answer is 4' 135,000 135,000.
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The total sales would be calculated by adding the opening debtors, cash received by the debtors, and subtracting the closing debtors. So, the total sales would be 50,000 + 320,000 - 80,000 = Rs. 290,000. Since the gross profit ratio is 20%, the cost of goods sold would be 80% of the total sales, which is 290,000*80% = Rs. 232,000. The purchases would be calculated by adding the cost of goods sold, the opening stock, and subtracting the closing stock. So, the purchases would be 232,000 + 30,000 - 50,000 = Rs. 212,000. So, none of the given options are correct.
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The cost of goods sold would be calculated by adding the opening stock, purchases, and subtracting the closing stock. So, the cost of goods sold would be 60,000 + 380,000 - 70,000 = Rs. 370,000. Since a stock worth of Rs. 20,000 was damaged due to a fire, the gross profit would be calculated by subtracting the cost of goods sold and the value of the damaged stock from the sales. So, the gross profit would be 500,000 - 370,000 - 20,000 = Rs. 110,000. So, none of the given options are correct.
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The total expense relevant for employees would be calculated by adding the balance of the salary expense account and the employer's contribution for EPF and ETF. The employer's contribution for EPF would be 15% of the gross salary, which is 720,00015% = Rs. 108,000. The employer's contribution for ETF would be 3% of the gross salary, which is 720,0003% = Rs. 21,600. So, the total expense would be 720,000 + 108,000 + 21,600 = Rs. 849,600. So, none of the given options are correct.
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The salary expense for the year ending 31/3/2018 would be the amount paid in the year, which is Rs. 44,000. The rent income would be calculated by taking 6/9th of the rent received for 9 months, which is 90,000*6/9 = Rs. 60,000. So, the answer is 3' 44,000 60,000.
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The total liability for salary as at 31/3/2018 would be the amount payable as at that date, which is Rs. 24,000. So, the answer is 1. Rs. 24,000.
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The tax and rates expense would be calculated by adding the accrued rates and tax as at 1/4/2017, payments within the period for rates and tax, and subtracting the payable tax and pre-paid rates as at 31/3/2018. So, the expense would be 65,000 + 150,000 + 80,000 - 20,000 - 10,000 = Rs. 265,000. So, none of the given options are correct.
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The current assets are assets that are expected to be converted to cash within one year. So, the answer is 2. Trade receivables, pre- payments, stock, cash.
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The sales excluding VAT would be 920,000/1.15 = Rs. 800,000. The purchases excluding VAT would be 460,000/1.15 = Rs. 400,000. The cost of goods sold would be calculated by adding the opening stock, purchases, and subtracting the closing stock. So, the cost of goods sold would be 120 + 400 - 80 = Rs. 440,000. The gross profit would be calculated by subtracting the cost of goods sold from the sales. So, the gross profit would be 800 - 440 = Rs. 360,000. So, the answer is 1. Rs. 360,000.
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