Question
From the following figures, calculate Operating Profit:
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Answer
Operating Profit = Net Profit - Rent Received - Gain on Sale of Machine + Interest on Donation
= ₹ 1,00,000 - ₹ 10,000 - ₹ 15,000 + ₹ 20,000 - ₹ 2,000 = ₹ 93,000.
= ₹ 1,00,000 - ₹ 10,000 - ₹ 15,000 + ₹ 20,000 - ₹ 2,000 = ₹ 93,000.
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Give any three reasons for keeping records under Single Entry System.
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A merchant has earned a Net Profit of ₹ 57,200 for the year ended 31st March, 2017. Other balances in his Ledger are as under: 
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|
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₹
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Opening Stock
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8,500
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Purchases
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30,700
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Direct Expenses
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4,800
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Indirect Expenses
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5,200
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Closing Stock
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Give four points of distinction between Trading Account & Profit and Loss Account.
From the following information ascertain the opening balance of sundry debtors and closing balance of sundry creditors
The rate of gross profit is 25% on selling price and out of the total sales ₹ 85,000 was for cash sales.
Total sales $=4,00,000=3,00,000\times\frac{100}{75}$
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| Opening stock, | 30,000 |
| Closing stock, | 25,000 |
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| Closing debtors, | 75,000 |
| Discount allowed by creditors, | 15,00 |
| Discount allowed to customers, | 2,500 |
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Draft the Journal entries in the books of all parties.
Draft the Journal entries in the books of all parties.
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- Sales Book is overcasted by ₹ 5,000.
- Sales Return Book is short casted by ₹ 500.
- Balance of Sales Book is carried forward in excess by ₹ 1,000.
- Balance of Sales Return Book is carried forward in excess by ₹ 100.
Ram draws a bill for ₹ 2,000 on Shyam on 15th September, 2018 for 3 months. On maturity, Shyam failed to honour the bill.
Pass the necessary Journal entries in the books of Ram and Shyam.
Pass the necessary Journal entries in the books of Ram and Shyam.
Calculate Closing Stock from the following details: