If opening stock is ₹20,000, purchases are ₹80,000, and closing stock is ₹15,000, what is the cost of goods sold? MCQ with Answer and Explanation

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If opening stock is ₹20,000, purchases are ₹80,000, and closing stock is ₹15,000, what is the cost of goods sold?

A. ₹85,000

B. ₹1,15,000

C. ₹1,00,000

D. ₹95,000

Answer: Option A

Solution (By JKSSB Mock Tests)

COGS = Opening Stock + Purchases - Closing Stock = 20,000 + 80,000 - 15,000 = ₹85,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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A distributed ledger technology providing a secure and immutable record of transactions is:

A. ERP System

B. Cloud Accounting

C. Blockchain Accounting

D. Tally Prime

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Correct Answer: Option C

Explanation:
Blockchain creates decentralized, tamper-proof ledgers, significantly reducing the scope for fraud and simplifying the auditing process.

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Question #2

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Agricultural income in India is:

A. Taxable at a flat rate of 10%

B. Fully taxable

C. Exempted under Section 10(1)

D. Taxable only for corporate farmers

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Correct Answer: Option C

Explanation:
Section 10(1) of the Income Tax Act exempts agricultural income from Central Income Tax.

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Question #3

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S1: In the absence of a partnership deed, a partner is entitled to a salary for participating in management. S2: In the absence of a partnership deed, interest on partner's loan is allowed at 6% p.a. Which statement(s) is/are correct?

A. S2 only

B. Both S1 and S2

C. Neither S1 nor S2

D. S1 only

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Correct Answer: Option A

Explanation:
The Partnership Act 1932 does not allow any partner to claim a salary for management participation if the deed is silent. However, it does allow interest on a partner's loan at 6% p.a. S1 is incorrect, S2 is correct.

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