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On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550?
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On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 5...
Impact on Profit after Rectification:
Bad debts recovery wrongly credited:
- The bad debts recovery of Rs. 500 that was wrongly credited to debtors A/c should have been added to the profit.
- Therefore, the profit will increase by Rs. 500 after rectifying this error.
Bank charges entered twice:
- The bank charges of Rs. 50 that was wrongly entered twice in the Bank Book needs to be corrected.
- The profit will decrease by Rs. 50 once this error is rectified.
Purchase return omitted:
- The purchase return of Rs. 100 that was omitted to be entered in the books of accounts needs to be included.
- After rectifying this error, the profit will increase by Rs. 100.
Net Effect on Profit:
- Increase in profit due to bad debts recovery correction: Rs. 500
- Decrease in profit due to bank charges correction: Rs. 50
- Increase in profit due to purchase return correction: Rs. 100
Therefore, the net effect on profit after the above rectifications will be an increase of Rs. 550.
Bad debts recovery wrongly credited:
- The bad debts recovery of Rs. 500 that was wrongly credited to debtors A/c should have been added to the profit.
- Therefore, the profit will increase by Rs. 500 after rectifying this error.
Bank charges entered twice:
- The bank charges of Rs. 50 that was wrongly entered twice in the Bank Book needs to be corrected.
- The profit will decrease by Rs. 50 once this error is rectified.
Purchase return omitted:
- The purchase return of Rs. 100 that was omitted to be entered in the books of accounts needs to be included.
- After rectifying this error, the profit will increase by Rs. 100.
Net Effect on Profit:
- Increase in profit due to bad debts recovery correction: Rs. 500
- Decrease in profit due to bank charges correction: Rs. 50
- Increase in profit due to purchase return correction: Rs. 100
Therefore, the net effect on profit after the above rectifications will be an increase of Rs. 550.
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On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550?
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On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550?.
On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550?.
Solutions for On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550? in English & in Hindi are available as part of our courses for CA Foundation.
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On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550?, a detailed solution for On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550? has been provided alongside types of On scrutiny, an accountant found that- (i) Bad debts recovery of Rs. 500 was credited to debtors A/c wrongly (ii) Bank charges of Rs. 50 was wrongly entered twice in Bank Book (iii) Purchase return of Rs. 100 was omitted to be entered in the books of A/c What will be the net effect in profit after above rectification? (a) Increase Rs. 650 (b) Increase Rs. 350 (c) Decrease Rs. 650 (d) Increase Rs. 550? theory, EduRev gives you an
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