CA Foundation Exam > CA Foundation Questions > Discount received = Rs. 1,000 Provision for d...
Start Learning for Free
Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/c
- a)Rs. 500
- b)Rs. 3,500
- c)Rs. 1,000
- d)Rs. 1,500
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Discount received = Rs. 1,000 Provision for discount on creditors = Rs...
Balance Provision after discount received = 1,600 - 1,000 = 600
Provision to be created = 1,100 - 600 = Rs 500 (amount to be transferred to Profit & Loss A/c)
Most Upvoted Answer
Discount received = Rs. 1,000 Provision for discount on creditors = Rs...
As per the formula of discount received;
discount received
+ new RFDC
- OLD RFDC
So, here discount received is ₹1000, new provision (RFDC) ₹ 1100 and old provision (RFDC) ₹1600.
by applying formula we get,
₹500
discount received
+ new RFDC
- OLD RFDC
So, here discount received is ₹1000, new provision (RFDC) ₹ 1100 and old provision (RFDC) ₹1600.
by applying formula we get,
₹500
Free Test
FREE
| Start Free Test |
Community Answer
Discount received = Rs. 1,000 Provision for discount on creditors = Rs...
To find out the amount to be transferred to Profit and Loss Account, we need to calculate the excess provision for discount on creditors.
Given information:
Discount received = Rs. 1,000
Provision for discount on creditors = Rs. 1,600
Desired provision for discount on creditors = Rs. 1,100
Calculations:
1. Excess provision for discount on creditors:
Excess Provision = Provision - Desired Provision
Excess Provision = Rs. 1,600 - Rs. 1,100
Excess Provision = Rs. 500
2. Amount to be transferred to Profit and Loss Account:
Amount = Excess Provision - Discount Received
Amount = Rs. 500 - Rs. 1,000
Amount = Rs. -500
Explanation:
The calculation shows that the amount to be transferred to Profit and Loss Account is Rs. -500. However, this result is not possible as it indicates a negative amount. Therefore, it must be a mistake in the calculation or the given information.
The correct amount to be transferred to Profit and Loss Account cannot be determined with the given data. We cannot have a negative amount to be transferred.
Hence, option 'A' (Rs. 500) cannot be the correct answer.
Given information:
Discount received = Rs. 1,000
Provision for discount on creditors = Rs. 1,600
Desired provision for discount on creditors = Rs. 1,100
Calculations:
1. Excess provision for discount on creditors:
Excess Provision = Provision - Desired Provision
Excess Provision = Rs. 1,600 - Rs. 1,100
Excess Provision = Rs. 500
2. Amount to be transferred to Profit and Loss Account:
Amount = Excess Provision - Discount Received
Amount = Rs. 500 - Rs. 1,000
Amount = Rs. -500
Explanation:
The calculation shows that the amount to be transferred to Profit and Loss Account is Rs. -500. However, this result is not possible as it indicates a negative amount. Therefore, it must be a mistake in the calculation or the given information.
The correct amount to be transferred to Profit and Loss Account cannot be determined with the given data. We cannot have a negative amount to be transferred.
Hence, option 'A' (Rs. 500) cannot be the correct answer.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer?
Question Description
Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? 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 Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer?.
Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? 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 Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer?.
Solutions for Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Discount received = Rs. 1,000 Provision for discount on creditors = Rs. 1,600 It is desired to make a provision of Rs. 1,100 on creditors. Find out the amount to be transferred to Profit & Loss A/ca)Rs. 500b)Rs. 3,500c)Rs. 1,000d)Rs. 1,500Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup