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 A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will be 

  • a)
    Rs. 10,000

  • b)
    Rs. 10,500

  • c)
    Rs. 11,500

  • d)
    Rs. 12,700

Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 ...
's name and Rs. 2,000 is spent on its insurance. If the owner wishes to earn 10% profit on his investment, what should be the selling price of the car?

Cost price of the car = Rs. 10,000
Expenses incurred = Rs. 1,000 + Rs. 500 + Rs. 2,000 = Rs. 3,500
Total cost price = Rs. 10,000 + Rs. 3,500 = Rs. 13,500

Profit required = 10% of Rs. 13,500 = Rs. 1,350

Selling price of the car = Cost price + Expenses + Profit
= Rs. 10,000 + Rs. 3,500 + Rs. 1,350
= Rs. 14,850

Therefore, the selling price of the car should be Rs. 14,850 to earn a 10% profit on the investment.
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Community Answer
A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 ...
Yes beacuse when we purchase the asset(car) in this case ,we capitalise the expenditure incurrred ,in future when we will make repairs or anything else we will debit it to profit and loss because we treat it as a revenue expenditure
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A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will bea)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct answer is option 'D'. Can you explain this answer?
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A second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will bea)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct 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 second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will bea)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct 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 second hand car is purchased for Rs. 10,000 the amount of Rs. 1,000 is spent on its repairs, Rs. 500 is incurred to get the car registered in owner’s name and Rs. 1,200 is paid as dealer’s commission. The amount debited to car account will bea)Rs. 10,000b)Rs. 10,500c)Rs. 11,500d)Rs. 12,700Correct answer is option 'D'. Can you explain this answer?.
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