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Mohan’s trial balance contains the following information:
Discount received Rs. 1,000
Provision for discount on trade payables Rs. 1, 600
Discount received Rs. 1,000
Provision for discount on trade payables Rs. 1, 600
It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P & L Account is :
- a)Rs.1,500
- b)Rs.3,500.
- c)Rs.1,000.
- d)Rs.500.
Correct answer is option 'D'. Can you explain this answer?
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Mohans trial balance contains the following information:Discount recei...
Mohans trial balance information:
- Discount received: Rs. 1,000
- Provision for discount on trade payables: Rs. 1,600
Desired provision for discount on trade payables:
- Rs. 1,100
The amount to be credited to P&L Account:
- Option 'D' - Rs. 500
Explanation:
1. Understanding the trial balance:
- A trial balance is a statement that lists all the ledger accounts and their respective balances at a given point in time.
- In this case, Mohan's trial balance mentions the discount received and the provision for discount on trade payables.
2. Discount received:
- The discount received is an income for the business.
- It is a reduction in the amount payable by a customer for goods or services purchased.
- In this case, the discount received is Rs. 1,000.
3. Provision for discount on trade payables:
- The provision for discount on trade payables is a liability for the business.
- It represents the estimated amount of discounts that will be given to trade payables in the future.
- In this case, the provision for discount on trade payables is Rs. 1,600.
4. Desired provision for discount on trade payables:
- The question mentions that the desired provision for discount on trade payables should be Rs. 1,100.
- This means that the current provision of Rs. 1,600 needs to be reduced to Rs. 1,100.
5. Calculation of the adjustment entry:
- To decrease the provision for discount on trade payables from Rs. 1,600 to Rs. 1,100, an adjustment entry needs to be made.
- The adjustment entry would be a debit to the provision for discount on trade payables account and a credit to the P&L Account.
- The debit amount would be Rs. (1,600 - 1,100) = Rs. 500.
- Therefore, the amount to be credited to the P&L Account is Rs. 500.
6. Selection of the correct answer:
- Among the given options, option 'D' - Rs. 500 is the correct answer as it represents the amount to be credited to the P&L Account for the adjustment entry.
Therefore, the correct answer is option 'D' - Rs. 500.
- Discount received: Rs. 1,000
- Provision for discount on trade payables: Rs. 1,600
Desired provision for discount on trade payables:
- Rs. 1,100
The amount to be credited to P&L Account:
- Option 'D' - Rs. 500
Explanation:
1. Understanding the trial balance:
- A trial balance is a statement that lists all the ledger accounts and their respective balances at a given point in time.
- In this case, Mohan's trial balance mentions the discount received and the provision for discount on trade payables.
2. Discount received:
- The discount received is an income for the business.
- It is a reduction in the amount payable by a customer for goods or services purchased.
- In this case, the discount received is Rs. 1,000.
3. Provision for discount on trade payables:
- The provision for discount on trade payables is a liability for the business.
- It represents the estimated amount of discounts that will be given to trade payables in the future.
- In this case, the provision for discount on trade payables is Rs. 1,600.
4. Desired provision for discount on trade payables:
- The question mentions that the desired provision for discount on trade payables should be Rs. 1,100.
- This means that the current provision of Rs. 1,600 needs to be reduced to Rs. 1,100.
5. Calculation of the adjustment entry:
- To decrease the provision for discount on trade payables from Rs. 1,600 to Rs. 1,100, an adjustment entry needs to be made.
- The adjustment entry would be a debit to the provision for discount on trade payables account and a credit to the P&L Account.
- The debit amount would be Rs. (1,600 - 1,100) = Rs. 500.
- Therefore, the amount to be credited to the P&L Account is Rs. 500.
6. Selection of the correct answer:
- Among the given options, option 'D' - Rs. 500 is the correct answer as it represents the amount to be credited to the P&L Account for the adjustment entry.
Therefore, the correct answer is option 'D' - Rs. 500.
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Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer?
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Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer?.
Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer?.
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Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Mohans trial balance contains the following information:Discount received Rs. 1,000Provision for discount on trade payables Rs. 1, 600It is desired to maintain a provision for discount on trade payables at Rs.1,100. The amount to be credited to P L Account is :a)Rs.1,500b)Rs.3,500.c)Rs.1,000.d)Rs.500.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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