PRC-1 · Chapter 10 · Question 3 of 100
Salman has the following balances: Opening stock Rs. 28,700; Closing stock Rs. 21,400; Purchases Rs. 185,000; Carriage in Rs. 16,000; Depreciation Rs. 45,000 (80% related to cost of sales). What is the Cost of Sales?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 244,300
Explanation
Cost of Sales = Opening Stock (28,700) + Purchases (185,000) + Carriage in (16,000) + Factory Depreciation [45,000 x 80% = 36,000] - Closing Stock (21,400) = Rs. 244,300.
More Preparation of Financial Statements MCQs
- Q5Which of the following items is usually classified as a non-current liability in the statement of financial position?
- Q6How should 'Pre-received income' (unearned income) be treated in the Statement of Financial Position?
- Q7A business has a net profit before adjustments of Rs. 158,000. Adjustments are required for a prepaid expense of Rs. 11,200 and an accrued…
- Q8Non-current liabilities are Rs. 276,000. Total current liabilities are 2/3 of non-current liabilities. Trade payables are Rs. 125,000…
- Q9If an entity inadvertently understates its closing inventory by Rs. 200,000, what will be the effect on the financial statements if it…