Ram earned a profit of Rs. 1,40,000 for the year 2008-09. But at the time of audit, the auditor found that Ram purchased a scooter on 1.4.08 for Rs. 20,000 and charged it as revenue expenses. The auditor advised him to rectify the error now and to charge depreciation @ 15% on scooter. The correct profit after rectification will be: 
  • a)
    Rs. 1,57,000
  • b)
    Rs. 1,60,000
  • c)
    Rs. 1,40,000
  • d)
    Rs. 1,17,000.
Correct answer is option 'A'. Can you explain this answer?

CA Foundation Question

Neha Sindal
Dec 05, 2020
As there is revenue expense more we have already less that amount of rs 20000 thus 20000 should be added to the profit nd depreciation of rs 3000 should be subtracted from net profit
that is
140000
+20000
- 3000
= 157000 rs

This discussion on Ram earned a profit of Rs. 1,40,000 for the year 2008-09. But at the time of audit, the auditor found that Ram purchased a scooter on 1.4.08 for Rs. 20,000 and charged it as revenue expenses. The auditor advised him to rectify the error now and to charge depreciation @ 15% on scooter. The correct profit after rectification will be:a)Rs. 1,57,000b)Rs. 1,60,000c)Rs. 1,40,000d)Rs. 1,17,000.Correct answer is option 'A'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of Ram earned a profit of Rs. 1,40,000 for the year 2008-09. But at the time of audit, the auditor found that Ram purchased a scooter on 1.4.08 for Rs. 20,000 and charged it as revenue expenses. The auditor advised him to rectify the error now and to charge depreciation @ 15% on scooter. The correct profit after rectification will be:a)Rs. 1,57,000b)Rs. 1,60,000c)Rs. 1,40,000d)Rs. 1,17,000.Correct answer is option 'A'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like Ram earned a profit of Rs. 1,40,000 for the year 2008-09. But at the time of audit, the auditor found that Ram purchased a scooter on 1.4.08 for Rs. 20,000 and charged it as revenue expenses. The auditor advised him to rectify the error now and to charge depreciation @ 15% on scooter. The correct profit after rectification will be:a)Rs. 1,57,000b)Rs. 1,60,000c)Rs. 1,40,000d)Rs. 1,17,000.Correct answer is option 'A'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.

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This discussion on Ram earned a profit of Rs. 1,40,000 for the year 2008-09. But at the time of audit, the auditor found that Ram purchased a scooter on 1.4.08 for Rs. 20,000 and charged it as revenue expenses. The auditor advised him to rectify the error now and to charge depreciation @ 15% on scooter. The correct profit after rectification will be:a)Rs. 1,57,000b)Rs. 1,60,000c)Rs. 1,40,000d)Rs. 1,17,000.Correct answer is option 'A'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of Ram earned a profit of Rs. 1,40,000 for the year 2008-09. But at the time of audit, the auditor found that Ram purchased a scooter on 1.4.08 for Rs. 20,000 and charged it as revenue expenses. The auditor advised him to rectify the error now and to charge depreciation @ 15% on scooter. The correct profit after rectification will be:a)Rs. 1,57,000b)Rs. 1,60,000c)Rs. 1,40,000d)Rs. 1,17,000.Correct answer is option 'A'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like Ram earned a profit of Rs. 1,40,000 for the year 2008-09. But at the time of audit, the auditor found that Ram purchased a scooter on 1.4.08 for Rs. 20,000 and charged it as revenue expenses. The auditor advised him to rectify the error now and to charge depreciation @ 15% on scooter. The correct profit after rectification will be:a)Rs. 1,57,000b)Rs. 1,60,000c)Rs. 1,40,000d)Rs. 1,17,000.Correct answer is option 'A'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.