Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer?

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Direction: Read the following case study and answer the question on the basis of the same.
XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to ₹4,00,000 and fees received for arranging loans amounted to ₹ 1,00,000. Its miscellaneous income amounted to ₹ 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of ₹ 70,000. Moreover, it earned a profit of ₹ 75,000 on the sale of investments during the year.
Profit on sale of investments will be shown as in the statement of profit and loss.

a)
Other Income
b)
Revenue from Operations
c)
Finance Cost
d)
None of these

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

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Direction: Read the following case study and answer the question on th...

Explanation:

Statement of Profit and Loss:
The statement of profit and loss, also known as the income statement, is a financial statement that shows the company's revenues, expenses, and net profit or loss for a specific period of time. It is one of the primary financial statements used by companies to assess their financial performance.

Profit on Sale of Investments:
Profit on the sale of investments refers to the amount earned by a company when it sells its investments at a higher price than its cost. In this case study, XYZ Ltd. earned a profit of 75,000 on the sale of investments during the year 2020-21.

Classification of Profit on Sale of Investments:
The profit on the sale of investments is classified as revenue from operations in the statement of profit and loss. This is because the sale of investments is considered as part of the company's normal business activities. It represents the income generated from the sale of goods or services, which is the primary source of revenue for the company.

Reason for Classification:
The profit on the sale of investments is classified as revenue from operations because it is an integral part of the company's core business activities. It is not considered as other income because it is not derived from incidental or non-operating activities of the company.

Other Income:
Other income refers to the income that is not generated from the company's core business activities. It includes income from sources such as interest on loans, fees received for arranging loans, and miscellaneous income. In this case study, XYZ Ltd. earned 4,00,000 as interest on loans, 1,00,000 as fees received for arranging loans, and 50,000 as miscellaneous income for the year 2020-21.

Conclusion:
In conclusion, the profit on the sale of investments will be shown as revenue from operations in the statement of profit and loss. This is because it is considered as part of the company's normal business activities and is not classified as other income.

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Direction: Read the following case study and answer the question on th...

Revenue from operations as it is a financial company.

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Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer?

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Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer?.

Solutions for Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12. Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.

Here you can find the meaning of Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the following case study and answer the question on the basis of the same.XYZ Ltd. is a financial company. For the year 2020-21 interest on loans given amounted to 4,00,000 and fees received for arranging loans amounted to 1,00,000. Its miscellaneous income amounted to 50,000. Further, a building was sold during the year on which XYZ Ltd. earned a profit of 70,000. Moreover, it earned a profit of 75,000 on the sale of investments during the year.Profit on sale of investments will be shown as in the statement of profit and loss.a)Other Incomeb)Revenue from Operationsc)Finance Costd)None of theseCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Class 12 tests.

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