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A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:
(i). The cost of an assets Rs. 25,000 has been taken as en expense.
(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.
(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.
(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.
Q. What is the correct amount of profit to be reported in the books?
(i). The cost of an assets Rs. 25,000 has been taken as en expense.
(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.
(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.
(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.
Q. What is the correct amount of profit to be reported in the books?
- a)Rs. 1,25,000
- b)Rs. 1,35,000
- c)Rs. 1,50,000
- d)Rs. 1,33,000
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end o...
profit-125000
+25000 as asset purchased is to be shown in B/S and here he shows in p&l hence profit got reduce by 25000 so add it
- 10000 any anticipating profit should not be shown until it is realised so deduct 10000 from profit.
- 7000 as salary is an expense,show it in P&L.
in 4th point no treatment in P&L as it is B/S item,so no effect in P&L .
correct profit =133000.
Most Upvoted Answer
A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end o...
Explanation:
To calculate the correct amount of profit to be reported in the books, we need to adjust the given amounts to arrive at the accurate figure.
Adjustments:
1. Cost of an asset taken as an expense: The cost of the asset amounting to Rs. 25,000 should not be considered as an expense. This amount needs to be added back to the profit. Therefore, the profit increases by Rs. 25,000.
2. Anticipated profit on the future sale of a car: The anticipated profit on the future sale of a car should not be considered as actual profit until the sale is realized. Therefore, the profit should not include this amount. It does not affect the profit figure.
3. Salary payable not taken into account: The salary payable of Rs. 7,000 needs to be considered as an expense since it relates to the financial year. Therefore, the profit decreases by Rs. 7,000.
4. Purchase of an asset at a higher value: The asset purchased for Rs. 75,000 was recorded in the books at Rs. 85,000, which is higher than its fair value. This overstatement of asset value results in an overstatement of the profit. Therefore, the profit needs to be adjusted by the difference in value, i.e., Rs. 10,000. The profit decreases by Rs. 10,000.
Calculation:
Profit reported in the books = Rs. 1,25,000 (given)
Add: Cost of asset taken as an expense = Rs. 25,000
Less: Salary payable = Rs. 7,000
Less: Overstatement of asset value = Rs. 10,000
Correct amount of profit = Rs. 1,25,000 + Rs. 25,000 - Rs. 7,000 - Rs. 10,000 = Rs. 1,33,000
Therefore, the correct amount of profit to be reported in the books is Rs. 1,33,000, which is option 'D'.
To calculate the correct amount of profit to be reported in the books, we need to adjust the given amounts to arrive at the accurate figure.
Adjustments:
1. Cost of an asset taken as an expense: The cost of the asset amounting to Rs. 25,000 should not be considered as an expense. This amount needs to be added back to the profit. Therefore, the profit increases by Rs. 25,000.
2. Anticipated profit on the future sale of a car: The anticipated profit on the future sale of a car should not be considered as actual profit until the sale is realized. Therefore, the profit should not include this amount. It does not affect the profit figure.
3. Salary payable not taken into account: The salary payable of Rs. 7,000 needs to be considered as an expense since it relates to the financial year. Therefore, the profit decreases by Rs. 7,000.
4. Purchase of an asset at a higher value: The asset purchased for Rs. 75,000 was recorded in the books at Rs. 85,000, which is higher than its fair value. This overstatement of asset value results in an overstatement of the profit. Therefore, the profit needs to be adjusted by the difference in value, i.e., Rs. 10,000. The profit decreases by Rs. 10,000.
Calculation:
Profit reported in the books = Rs. 1,25,000 (given)
Add: Cost of asset taken as an expense = Rs. 25,000
Less: Salary payable = Rs. 7,000
Less: Overstatement of asset value = Rs. 10,000
Correct amount of profit = Rs. 1,25,000 + Rs. 25,000 - Rs. 7,000 - Rs. 10,000 = Rs. 1,33,000
Therefore, the correct amount of profit to be reported in the books is Rs. 1,33,000, which is option 'D'.
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A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer?
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A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. 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 A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. 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 A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer?.
A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. 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 A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. 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 A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer?.
Solutions for A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:(i). The cost of an assets Rs. 25,000 has been taken as en expense.(ii). Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.(iii). Salary of Rs. 7,000 payable in the financial year has not been taken into account.(iv). Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.Q. What is the correct amount of profit to be reported in the books?a)Rs. 1,25,000b)Rs. 1,35,000c)Rs. 1,50,000d)Rs. 1,33,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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