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Financial Forensics · Quiz 1 · 26 Feb 2023 · January 2023 term · Set QPE3

Question 13: Goods worth ₹ 1,20,000 sold to Mr. Steve at a mark-up of…

Question 13

+1 markOne correct option

Goods worth ₹ 1,20,000 sold to Mr. Steve at a mark-up of ₹ 45,000. Steve made half of the payment immediately in cash and requested for 45 days of time to repay the remaining amount. How will transaction reflect in the income statement and balance sheet on the date of sale?

  1. A

    Revenue will increase by ₹ 1,65,000 and expenditure will increase ₹ 1,20,000.

  2. B

    Revenue will increase by ₹ 1,65,000, expenditure will increase by ₹ 1,20,000and Cash/bank will increase by ₹ 82,500

  3. C

    Revenue will increase by ₹ 1,65,000; expenditure will increase by ₹ 1,20,000,Cash/bank will increase by ₹ 82,500 and receivables will increase by ₹ 82,500

  4. D

    Revenue will increase by ₹ 1,65,000, expenditure will increase by ₹ 1,20,000,Cash/bank will increase by ₹ 82,500, receivables will increase by ₹ 82,500, and stock will decreaseby ₹ 1,20,000

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Correct answer

  • D

    Revenue will increase by ₹ 1,65,000, expenditure will increase by ₹ 1,20,000,Cash/bank will increase by ₹ 82,500, receivables will increase by ₹ 82,500, and stock will decreaseby ₹ 1,20,000

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Question 13 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 26 Feb 2023, in the January 2023 term (IIT M DEGREE AN4 EXAM QPE4 26 Feb 2023). It carries 1 mark.

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