Question
What is meant by Operating Profit?
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Answer
Operating Profit: Operating Profit is the profit earned through normal operating activities of the business. It is arrived at by deducting the operating expenses from gross profit. Expenses which are related to the main or normal activities of the business are called operating expenses. They include office and administrative expenses and selling and distribution expenses, discount, bad-debts etc. Operating Profit is also called 'Earning. Before Interest & Tax or EBIT'.
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Calculate Closing Capital:
Opening Capital ₹ 90,000; Profit for the year ₹ 25,000; Drawings ₹ 17,000. During the year proprietor sold ornaments of his wife for ₹ 40,000 and invested the same in business.
Opening Capital ₹ 90,000; Profit for the year ₹ 25,000; Drawings ₹ 17,000. During the year proprietor sold ornaments of his wife for ₹ 40,000 and invested the same in business.
Calulate closing stock and cost of goods sold:
Opening Stock ₹ 5,000; Sales ₹ 16,000; Carringe Inwards ₹ 1,000. Sales Return ₹ 1,000; Gross Profit ₹ 6,000; Purchases ₹ 10,000; Purchases Return ₹ 900.
Opening Stock ₹ 5,000; Sales ₹ 16,000; Carringe Inwards ₹ 1,000. Sales Return ₹ 1,000; Gross Profit ₹ 6,000; Purchases ₹ 10,000; Purchases Return ₹ 900.
Do you agree that a Sales Book is used to record invoices issued to customers in respect of goods sold on credit and not cash? Give reasons.
Calculate the value of Opening Stock from the following:
Explain how the following may be ascertained from incomplete records:
Credit sales and credit purchase.
Credit sales and credit purchase.
Calculate closing stock from the following details:
G.P is 30% on Cost.
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₹
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Opening Stock
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4,80,000
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Purchase
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13,60,000
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Sales
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19,50,000
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Give one difference between a Computer and a Calculator.
The Trial Balance of Manish gives the following information:
It is decided to create a Provision for Doubtful Debts @ 10% on debtors and a Provision for Discount @ 2% on debtors. Show how the adjustment will appear in the Final Accounts.
It is decided to create a Provision for Doubtful Debts @ 10% on debtors and a Provision for Discount @ 2% on debtors. Show how the adjustment will appear in the Final Accounts.
What is meant by a Sales Return Book? When is it opened?
Calculate operating profit from the following:
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₹
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Net Profit
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5,00,000
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Dividend Received
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6,000
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Loss on sale of Furniture
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12,000
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Loss by Fire
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50,000
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Salaries
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1,20,000
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Interest on Loan from Bank
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10,000
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Rent Received
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24,000
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Donation
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5,100
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