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E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:
- a)18,600
- b)19,600
- c)15,000
- d)13,600
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
E’s Trial Balance contains the following information: Discount r...
Explanation:
To determine the amount to be credited to the Profit and Loss Account, we need to consider the following information:
1. Discount received: Rs.15,000
2. Provision for discount on Trade Payables: Rs.21,000
3. Desired provision for discount on Trade Payables: Rs.19,600
Step 1: Calculate the adjustment amount
The adjustment amount is the difference between the desired provision and the current provision.
Adjustment amount = Desired provision - Current provision
Adjustment amount = Rs.19,600 - Rs.21,000
Adjustment amount = -Rs.1,400
Step 2: Determine the amount to be credited to the Profit and Loss Account
Since the adjustment amount is negative, it means that we need to reduce the provision. Therefore, we need to credit the Profit and Loss Account with the absolute value of the adjustment amount.
Amount to be credited to the Profit and Loss Account = Absolute value of adjustment amount
Amount to be credited to the Profit and Loss Account = |-Rs.1,400|
Amount to be credited to the Profit and Loss Account = Rs.1,400
Step 3: Final Answer
The amount to be credited to the Profit and Loss Account is Rs.1,400.
Therefore, the correct answer is option 'D' - Rs.13,600.
To determine the amount to be credited to the Profit and Loss Account, we need to consider the following information:
1. Discount received: Rs.15,000
2. Provision for discount on Trade Payables: Rs.21,000
3. Desired provision for discount on Trade Payables: Rs.19,600
Step 1: Calculate the adjustment amount
The adjustment amount is the difference between the desired provision and the current provision.
Adjustment amount = Desired provision - Current provision
Adjustment amount = Rs.19,600 - Rs.21,000
Adjustment amount = -Rs.1,400
Step 2: Determine the amount to be credited to the Profit and Loss Account
Since the adjustment amount is negative, it means that we need to reduce the provision. Therefore, we need to credit the Profit and Loss Account with the absolute value of the adjustment amount.
Amount to be credited to the Profit and Loss Account = Absolute value of adjustment amount
Amount to be credited to the Profit and Loss Account = |-Rs.1,400|
Amount to be credited to the Profit and Loss Account = Rs.1,400
Step 3: Final Answer
The amount to be credited to the Profit and Loss Account is Rs.1,400.
Therefore, the correct answer is option 'D' - Rs.13,600.
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Community Answer
E’s Trial Balance contains the following information: Discount r...
As per the formula of discount received;
discount received
+ new RFDC
- OLD RFDC
So, here discount received is ₹15000, new provision (RFDC) ₹ 19600 and old provision (RFDC) ₹21000.
by applying formula we get,
₹13600
discount received
+ new RFDC
- OLD RFDC
So, here discount received is ₹15000, new provision (RFDC) ₹ 19600 and old provision (RFDC) ₹21000.
by applying formula we get,
₹13600
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E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct answer is option 'D'. Can you explain this answer?
Question Description
E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct 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 E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct 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 E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct answer is option 'D'. Can you explain this answer?.
E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct 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 E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct 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 E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct answer is option 'D'. Can you explain this answer?.
Solutions for E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct 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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E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct answer is option 'D'. Can you explain this answer?, a detailed solution for E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice E’s Trial Balance contains the following information: Discount received Rs.15,000, Provision for discount on Trade Payables Rs.21,000. It is desired to maintain a provision for discount Trade Payables at Rs.19,600. The amount to be credited to the Profit & Loss Account is:a)18,600b)19,600c)15,000d)13,600Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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