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Fundamentals of Accounting (CACPT)

Practice questions on inventory valuation, cost of goods sold, gross profit calculations, and inventory reconciliation for CA CPT accounting fundamentals.

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Questions

Question 1 Multiple Choice (Single Answer)

Cost of goods sold is Rs. 80,700
Opening inventory is Rs. 5,800
Closing inventory is Rs. 6,000

What is the amount spent on purchase?

  1. Rs. 80,500
  2. Rs. 74,900
  3. Rs. 74,700
  4. Rs. 80,900
  5. None of the above
Question 2 Multiple Choice (Single Answer)

The total cost of goods available for sale with a company during the current year is Rs. 12,00,000 and the total sale during the period is Rs. 13,00,000. The gross profit margin of the company is 33 1/3% on cost.

What is the value of closing inventory during the current year?

  1. Rs. 4,00,000
  2. Rs. 3,00,000
  3. Rs. 2,25,000
  4. Rs. 2,60,000
  5. Rs. 2,55,000
Question 3 Multiple Choice (Single Answer)

Average inventory is Rs. 12,000
Closing inventory is Rs. 3,000 more than opening inventory.

What is the value of closing inventory?

  1. Rs. 12,000
  2. Rs. 24,000
  3. Rs. 10,500
  4. Rs. 13,500
  5. None of these
Question 4 Multiple Choice (Single Answer)

Opening stock is Rs. 22,000
Closing stock is Rs. 25,000
Purchases less returns is Rs. 1,10,000
Gross profit margin (on sales) is 20%

What will be the amount of sales?

  1. Rs. 1,41,250
  2. Rs. 1,35,600
  3. Rs. 1,33,750
  4. Rs. 1,28,400
  5. None of the above
Question 5 Multiple Choice (Single Answer)

Consider the following for Q Co. for the year 2014-15:
Cost of goods available for sale is Rs. 1,00,000
Total sales are Rs. 80,000
Opening inventory of goods is Rs. 20,000
Gross profit margin is 25% on sales

Ascertain the value of the closing inventory for the year ending 2014-15.

  1. Rs. 80,000
  2. Rs. 60,000
  3. Rs. 40,000
  4. Rs. 36,000
  5. None of the above
Question 6 Multiple Choice (Single Answer)

The books of T Ltd. revealed the following information:
Opening inventory is Rs. 6,00,000
Purchases during the year 2014-15 are Rs. 34,00,000
Sales during the year 2014-15 are Rs. 48,00,000
On March 31, 2015, the value of inventory as per physical inventory taking was Rs. 3,25,000.
The company's gross profit on sales has remained constant at 25%.
The management of the company suspects that some inventory might have been pilfered by a new employee.

What is the estimated cost of missing inventory?

  1. Rs. 75,000
  2. Rs. 25,000
  3. Rs. 1,00,000
  4. Rs. 1,50,000
  5. Rs. 50,000
Question 7 Multiple Choice (Single Answer)

C Ltd. recorded the following information as on March 31, 2016:
Inventory as on April 1, 2015 is Rs. 80,000
Purchases are Rs. 1,60,000
Sales are Rs. 2,00,000
It is noticed that goods worth Rs. 30,000 were destroyed due to fire.
Against this, the insurance company accepted a claim of Rs. 20,000.
The company sells goods at cost plus 33 1/3%.

What will be the value of closing inventory for the year ended 31 March, 2016 after taking into account the given information?

  1. Rs. 10,000
  2. Rs. 30,000
  3. Rs. 1,00,000
  4. Rs. 60,000
  5. None of the above
Question 8 Multiple Choice (Single Answer)

E Ltd, a dealer in second hand cars, has the following five vehicles of different models and makes in their inventory at the end of the financial year 2015-2016

         
Car Fiat Ambassador Maruti Esteem Maruti 800 Zen
Cost 90,000 1,15,000 2,75,000 1,00,000 2,10,000
Net realisable value 95,000 1,55,000 2,65,000 1,25,000 2,00,000

What is the value of inventory to be included in the balance sheet of the company as on March 31, 2016?

  1. Rs. 7,62,500
  2. Rs. 7,70,000
  3. Rs. 7,90,000
  4. Rs. 8,70,000
  5. None of the above
Question 9 Multiple Choice (Single Answer)

Consider the following data pertaining to H Ltd. for March 2016:
Opening inventory is Rs. 1,80,000
Closing inventory is Rs. 90,000
The company made purchases amounting to Rs. 3,30,000 on credit during the month.
The company paid an amount of Rs. 3,50,000 to the suppliers during the month.
The goods are sold at 25% above cost.

What is the amount of sales for March 2016?

  1. Rs. 4,12,500
  2. Rs. 5,25,000
  3. Rs. 90,000
  4. Rs. 3,15,000
  5. Rs. 5,50,000
Question 10 Multiple Choice (Single Answer)

Consider the following data pertaining to R Ltd. for June 2015:
Opening inventory is Rs. 30,000
Closing inventory is Rs. 40,000
Purchases are Rs. 5,60,000
Returns outward is Rs. 15,000
Returns inward is Rs. 20,000
Carriage inward is Rs. 5,000

If the gross profit margin is 20% of net sales, what will be the amount of gross sales for June 2015?

  1. Rs. 6,95,000
  2. Rs. 6,75,000
  3. Rs. 5,40,000
  4. Rs. 6,68,750
  5. None of the above
Question 11 Multiple Choice (Single Answer)

On April 7, 2016, i.e. a week after the end of the accounting year 2010-11, a company undertook physical inventory verification. The value of inventory as per physical inventory verification was found to be Rs. 35,000. The following details pertaining to the period April 01, 2016, to April 07, 2016 are given as follows:1. Goods costing Rs. 5,000 were sold during the week.
2. Goods received from consignor amounting to Rs. 4,000 were included in the value of inventory.
3. Goods earlier purchased, but returned during the period amounted to Rs. 1,000.
4. Goods earlier purchased and accounted, but not received were for Rs. 6,000.

After considering the above, what will be the amount of inventories held as on March 31, 2016?

  1. Rs. 27,000
  2. Rs. 19,000
  3. Rs. 43,000
  4. Rs. 51,000
  5. None of the above
Question 12 Multiple Choice (Single Answer)

O Ltd. maintains the inventory records under perpetual system of inventory. Consider the following data pertaining to the inventory of O Ltd. held for March, 2016.

     
Date 
        </strong>|<strong>Particulars
        </strong>|<strong>Quantity
        </strong>|<strong>Cost per unit (Rs.)</strong>|

|March 1|Opening Inventory|15|400|
|March 4|Purchases|20|450|
|March 6|Purchases|10|460|

If the company sold 32 units on March 24, 2016, what will be the value of closing inventory under FIFO method for March 2016?

  1. Rs. 5,200
  2. Rs. 5,681
  3. Rs. 5,800
  4. Rs. 5,950
  5. None of the above
Question 13 Multiple Choice (Single Answer)

S Ltd. follows perpetual inventory system. On March 31 of every year, the company undertakes physical inventory verification. On March 31, 2016, the value of inventories as per the records differed from the values of the inventory as per physical inventory.

On scrutiny, the following differences were noticed:

  1. Goods purchased for Rs. 10,000 were received and included in the physical inventory, but no entry was made in the books.
  2. Goods costing Rs. 30,000 were sold and entered in the books, but the inventory was yet to be delivered.
  3. Goods worth Rs. 5,000 were returned to the suppliers, but were omitted from the record.

If the inventory is valued in the books at Rs. 1,50,000, what is the value of the physical inventory?

  1. Rs. 1,11,000
  2. Rs. 1,89,000
  3. Rs. 1,85,000
  4. Rs. 1,59,000
  5. None of the above
Question 14 Multiple Choice (Single Answer)

Consider the following information pertaining to G & Sons. as on March 31, 2016:
Opening inventory was Rs. 15,00,000.
Purchases during the year were Rs. 45,00,000.
Sales during the year were Rs. 50,00,000.
As per physical inventory taken on March 31, 2016, the closing inventory was Rs. 20,90,000.
Gross profit on sales has remained constant at 25%.
The management of the firm suspects that some inventory might have been taken away by a new employee.

What will be the estimated cost of missing inventory on the close of the financial year and the cost of goods sold during the year?

  1. Rs. 2,65,000 and Rs. 37,50,000
  2. Rs. 2,10,000 and Rs. 39,10,000
  3. Rs. 1,75,000 and Rs. 50,00,000
  4. Rs. 1,60,000 and Rs. 37,50,000
  5. None of the above
Question 15 Multiple Choice (Single Answer)

Consider the following data pertaining to credit purchases made by K Ltd, a dealer in electronic goods, for March 2016:

       
Date Particulars Number of units Rate per unit (Rs.) Trade discount
March 01 Black and white TVs 50 3,000 10%
Colour TVs 10 6,000 10%
March 09 Tape recorders 10 1,000 10%
Two-in-one 10 1,500 10%
March 19 Audio cassettes 100 30 5%

At the time of making payment on March 31, 2016, the suppliers allow a cash discount of 10% on the above purchases. What will be the amount of purchases for March 2016?

  1. Rs. 2,14,350
  2. Rs. 2,38,000
  3. Rs. 1,92,915
  4. Rs. 2,38,600
  5. None of these
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