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On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:
- a)Rs. 92,000
- b)Rs. 42,000
- c)Rs. 1,72,000
- d)Rs. 52,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of ...
By making a format of balance sheet
assest total= 72000 + 90000 +60000= 222000
liability total=50000 (opening capital)+50000 (loan)+80000(creditors)=180000
hence profit = 222000-180000 = 42000
assest total= 72000 + 90000 +60000= 222000
liability total=50000 (opening capital)+50000 (loan)+80000(creditors)=180000
hence profit = 222000-180000 = 42000
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On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of ...
To calculate the profit earned by Ram for the year 2008-09, we need to determine the capital at the beginning and end of the year, and then calculate the difference. Let's break down the information given:
1. Capital at the beginning of the year (April 1, 2008): Rs. 50,000
2. Capital at the end of the year (March 31, 2009): ?
3. Loan: Rs. 50,000
4. Trade creditors: Rs. 80,000
5. Fixed assets: Rs. 72,000
6. Stock: Rs. 90,000
7. Cash in hand: Rs. 60,000
Now, let's calculate the capital at the end of the year:
Capital at the end of the year = Capital at the beginning of the year + Profit - Drawings
Since no information is given about drawings, we can assume that there were no drawings made by Ram during the year. Therefore, the equation becomes:
Capital at the end of the year = Capital at the beginning of the year + Profit
Since the capital at the beginning of the year is given as Rs. 50,000, we need to calculate the profit earned by Ram during the year to determine the capital at the end of the year.
To calculate the profit, we need to consider all the assets and liabilities and their changes during the year. Here's a breakdown:
1. Assets:
- Fixed assets: Rs. 72,000
- Stock: Rs. 90,000
- Cash in hand: Rs. 60,000
2. Liabilities:
- Loan: Rs. 50,000
- Trade creditors: Rs. 80,000
Now, let's calculate the total assets and liabilities:
Total assets = Fixed assets + Stock + Cash in hand = Rs. 72,000 + Rs. 90,000 + Rs. 60,000 = Rs. 2,22,000
Total liabilities = Loan + Trade creditors = Rs. 50,000 + Rs. 80,000 = Rs. 1,30,000
Now, we can calculate the profit earned by Ram:
Profit = Total assets - Total liabilities = Rs. 2,22,000 - Rs. 1,30,000 = Rs. 92,000
Therefore, the correct answer is option B) Rs. 42,000.
1. Capital at the beginning of the year (April 1, 2008): Rs. 50,000
2. Capital at the end of the year (March 31, 2009): ?
3. Loan: Rs. 50,000
4. Trade creditors: Rs. 80,000
5. Fixed assets: Rs. 72,000
6. Stock: Rs. 90,000
7. Cash in hand: Rs. 60,000
Now, let's calculate the capital at the end of the year:
Capital at the end of the year = Capital at the beginning of the year + Profit - Drawings
Since no information is given about drawings, we can assume that there were no drawings made by Ram during the year. Therefore, the equation becomes:
Capital at the end of the year = Capital at the beginning of the year + Profit
Since the capital at the beginning of the year is given as Rs. 50,000, we need to calculate the profit earned by Ram during the year to determine the capital at the end of the year.
To calculate the profit, we need to consider all the assets and liabilities and their changes during the year. Here's a breakdown:
1. Assets:
- Fixed assets: Rs. 72,000
- Stock: Rs. 90,000
- Cash in hand: Rs. 60,000
2. Liabilities:
- Loan: Rs. 50,000
- Trade creditors: Rs. 80,000
Now, let's calculate the total assets and liabilities:
Total assets = Fixed assets + Stock + Cash in hand = Rs. 72,000 + Rs. 90,000 + Rs. 60,000 = Rs. 2,22,000
Total liabilities = Loan + Trade creditors = Rs. 50,000 + Rs. 80,000 = Rs. 1,30,000
Now, we can calculate the profit earned by Ram:
Profit = Total assets - Total liabilities = Rs. 2,22,000 - Rs. 1,30,000 = Rs. 92,000
Therefore, the correct answer is option B) Rs. 42,000.
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On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer?
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On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer?.
On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice On 31st March, 2009 Ram has loan of Rs. 50,000 and trade creditors of Rs. 80,000, Fixed assets of Rs. 72,000, Stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1, 2008 with capital of Rs. 50,000 compute profit earned by Ram for year 2008-09:a)Rs. 92,000b)Rs. 42,000c)Rs. 1,72,000d)Rs. 52,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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