Overhead is defined as the total cost of direct material, direct wages and direct expenses. [June 2023, 2 Marks]
Options
A
B
C
D
For any discrepancies in this question, email contact@cadada.in
Preparation of Final Accounts of Sole ProprietorsQ-3 | Final Accounts of Sole ProprietorsQuestion 5112 of 40
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
False: Overhead is defined as the total of indirect material, indirect wages and indirect
expenses.
More Questions from Preparation of Final Accounts of Sole Proprietors
Mr. A accepts two bills of exchange on June 1, 2024 for ₹ 1,50,000 and 60,000 drawn on him by Mr. B. The bill of exchange for ₹ 1,50,000 is for two months while the bill of exchange for 60,000 is for three months. Mr. B got the first bill discounted with the bank for ₹ 1,49,000 on June 3, 2024. On August 2, 2024 Mr. A requested Mr. B. to cancel both the bills and drew a new bill on him with the combined amount of both the bills along with interest @ 12% per annum for a period of two months. Before the due date of the renewed bill on September 3, 2024, Mr. A becomes insolvent and only 40 paise in a rupee could be recovered from his estate. You are required to give the journal entries in the books of Mr. B. [Jan. 2025, 5 Marks]
Discuss the limitations which must be kept in mind while evaluating the Financial Statements. [Nov. 2018, 4 Marks]
Trading account
Profit and loss account
Balance sheet
Manufacturing A/c
Ready to Master Preparation of Final Accounts of Sole Proprietors?
Practice all 40 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free