Study the following hypothetical case study and answer the given questions: Rohit, the accountant of M/s Ravi Kanth Emporium who keep their books by Single Entry System, has accumulated the following information:He also knows the following information that has been in the company:(i) A provision of ₹1,450 is required for bad and doubtful debts.(ii) Depreciation @5% is to be written off on Building and Furniture.(iii) Wages outstanding ₹3,000; salaries outstanding ₹1,200.(iv) Insurance has been prepaid to the extent of ₹250(v) Legal Expenses outstanding ₹700 (f) Drawings of ₹7,520 were made.Q. The amount of Profit after adjustment that needs to be added to the capital shown in the final statement of affairs is _____________.a)₹6,090b)₹5,840c)₹5,550d)₹6,980Correct answer is option 'A'. Can you explain this answer?

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He also knows the following information that has been in the company:

(i) A provision of ₹1,450 is required for bad and doubtful debts.

(ii) Depreciation @5% is to be written off on Building and Furniture.

(iii) Wages outstanding ₹3,000; salaries outstanding ₹1,200.

(iv) Insurance has been prepaid to the extent of ₹250

(v) Legal Expenses outstanding ₹700 (f) Drawings of ₹7,520 were made.

Q. The amount of Profit after adjustment that needs to be added to the capital shown in the final statement of affairs is _____________.

a)
₹6,090
b)
₹5,840
c)
₹5,550
d)
₹6,980

Correct answer is option 'A'. Can you explain this answer?

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Study the following hypothetical case study and answer the given ques...

The amount of Profit after adjustment that needs to be added to the capital shown in the final statement of affairs is ₹6,980.

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Study the following hypothetical case study and answer the given questions: Rohit, the accountant of M/s Ravi Kanth Emporium who keep their books by Single Entry System, has accumulated the following information:He also knows the following information that has been in the company:(i) A provision of ₹1,450 is required for bad and doubtful debts.(ii) Depreciation @5% is to be written off on Building and Furniture.(iii) Wages outstanding ₹3,000; salaries outstanding ₹1,200.(iv) Insurance has been prepaid to the extent of ₹250(v) Legal Expenses outstanding ₹700 (f) Drawings of ₹7,520 were made.Q. What will be the treatment of outstanding wages and salaries?

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Study the following hypothetical case study and answer the given questions: Rohit, the accountant of M/s Ravi Kanth Emporium who keep their books by Single Entry System, has accumulated the following information:He also knows the following information that has been in the company:(i) A provision of ₹1,450 is required for bad and doubtful debts.(ii) Depreciation @5% is to be written off on Building and Furniture.(iii) Wages outstanding ₹3,000; salaries outstanding ₹1,200.(iv) Insurance has been prepaid to the extent of ₹250(v) Legal Expenses outstanding ₹700 (f) Drawings of ₹7,520 were made.Q. The amount of Profit after adjustment that needs to be added to the capital shown in the final statement of affairs is _____________.a)₹6,090b)₹5,840c)₹5,550d)₹6,980Correct answer is option 'A'. Can you explain this answer?

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