31 October 2007
Case A: If repair cost of building is 15ooo, whitewash epenses are 10000 cost of extension of building is 5 lakh, and cost of improvement in electrical wiring system is 25000; the “amt. to be expense” is _______ a) 50k b)550,000 c) 25000 d) nil
Case B: X of Kolkata sends out goods worth 1 Lakh to Y of madras at cost +25%. Consignor’s expenses are rs 2000. 3/5 of the goods were sold by consignee at Rs 85000. Commission 2% on sale + 20% of “gross sales less all commission exceeds invoice value”? Amt commisoned is__ a)3083 b) 3000 c)2500 d)2000
Case C: Micro Ltd issued 15000, 15% debentures of Rs 100 each at a premium of 10%, which are redeemable after 10 years at premium of 20%. The amount of loss on redemption of debentures to “written off” every year is …. a) 15000 b) 30000 c) 45000 d)22500
31 October 2007
Case A- When they are asking for amt to be expense means they are asking for Revenue expense hence answer must be 25000 Case B - Let the total commision = X Invioce value =100000+25%OF 100000 = 125000 I V of goods sold = 125000*3/5 = 75000 Amount of commission- X =2%of 85000+20%(85000-X-75000) =1700+2000-0.20X 1.20X= 3700 X = 3700/1.20 = 3083 Case 3 Premium on redemption= 1500000*20% =300000 Premium at issue = 1500000*10% = 150000 Amount to be wriitten off = (300000-150000)/10 = 15000
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