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Mr PQ has a small trading business for which the following procedures are followed first all collections are deposited with the bank each day all payment except petty expenses are made by check curd to meet fatty expenses a check of rupees 500 is withdrawn from the bank on first day of each month Mr Q makes personal drawing from the bank the Assets and liabilities are as follows P to the credit payment is a creditor during your 20000 sales meet during the year 30000 MRP used when?
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Mr PQ has a small trading business for which the following procedures ...
Assets:
- Cash in hand
- Cash at bank
- Debtors
- Stock
- Furniture

Liabilities:
- Creditors
- Mr. PQ's personal drawings

Calculation of MRP:
- Net Credit Purchases = Credit Purchases - Purchase Returns
- Cost of Goods Available for Sale = Opening Stock + Net Purchases
- Cost of Goods Sold = Cost of Goods Available for Sale - Closing Stock
- Gross Profit = Net Sales - Cost of Goods Sold
- MRP = Cost of Goods Sold + Gross Profit

Calculation Example:
- Credit Purchases = Rs. 20,000
- Purchase Returns = Rs. 0
- Opening Stock = Rs. 5,000
- Closing Stock = Rs. 3,000
- Net Sales = Rs. 30,000

Calculation:
- Net Credit Purchases = Rs. 20,000 - 0 = Rs. 20,000
- Cost of Goods Available for Sale = Rs. 5,000 + Rs. 20,000 = Rs. 25,000
- Cost of Goods Sold = Rs. 25,000 - Rs. 3,000 = Rs. 22,000
- Gross Profit = Rs. 30,000 - Rs. 22,000 = Rs. 8,000
- MRP = Rs. 22,000 + Rs. 8,000 = Rs. 30,000
Therefore, the MRP used when the given data is Rs. 30,000.
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Mr PQ has a small trading business for which the following procedures are followed first all collections are deposited with the bank each day all payment except petty expenses are made by check curd to meet fatty expenses a check of rupees 500 is withdrawn from the bank on first day of each month Mr Q makes personal drawing from the bank the Assets and liabilities are as follows P to the credit payment is a creditor during your 20000 sales meet during the year 30000 MRP used when?
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Mr PQ has a small trading business for which the following procedures are followed first all collections are deposited with the bank each day all payment except petty expenses are made by check curd to meet fatty expenses a check of rupees 500 is withdrawn from the bank on first day of each month Mr Q makes personal drawing from the bank the Assets and liabilities are as follows P to the credit payment is a creditor during your 20000 sales meet during the year 30000 MRP used when? 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 Mr PQ has a small trading business for which the following procedures are followed first all collections are deposited with the bank each day all payment except petty expenses are made by check curd to meet fatty expenses a check of rupees 500 is withdrawn from the bank on first day of each month Mr Q makes personal drawing from the bank the Assets and liabilities are as follows P to the credit payment is a creditor during your 20000 sales meet during the year 30000 MRP used when? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr PQ has a small trading business for which the following procedures are followed first all collections are deposited with the bank each day all payment except petty expenses are made by check curd to meet fatty expenses a check of rupees 500 is withdrawn from the bank on first day of each month Mr Q makes personal drawing from the bank the Assets and liabilities are as follows P to the credit payment is a creditor during your 20000 sales meet during the year 30000 MRP used when?.
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