Its (a), Rs. 56,580
Its very simple dude, U need not break your head for this type of simple questions but instead follow basics Anyways the answer is like this:
Uncorrected Profit --Rs.56750
+Discount Received--Rs.580 (Recorded on wrong side, by adding the effect is nullified)
+Discount Received--Rs.580 (Now Accounted)
-Discount Allowed --Rs.665 (Recorded on wrong side, by subracting the effect is nullified)
-Discount Allowed -- Rs.665 (Now Accounted)
So, Corrected Profit =Rs.56580
read the question dude.... its saying recorded on the wrong
Thats what dude,, wrong side means instead of crediting discount allowed, the trader debited it... So in order to rectify this you need to credit it twice (i.e add to the uncorrected profit) And the same applies to discount allowed..
Discount allowed is always debited as it is a loss and Discount received is credited as it is an income
disc allowed is dr nd the trader recorded as cr so in order 2 rectify it we need 2 give twice dr effect so it nullifies the cr effect......vice versa applies 4 disc recieved ........
Answer is 56665.
yes please................
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