Accounts question

Page no : 2

Mannat (Learner) (102 Points)
Replied 23 June 2012

Answer will be Rs. 56580 undoubtedly.. Explanation is given below :

Current Position as per the problem (what has been done)

	Gross Profit XXXXXX
Discount Received Rs 580	Discount Allowed Rs 665
Net Profit Rs 56750

Gross Profit = Rs.56665

Correct Position (what should have been done)

	Gross Profit Rs 56665
Discount Allowed Rs 665	Discount Received Rs 580
Net Profit Rs 56580

Sameer (EXPERT) (173 Points)
Replied 23 June 2012

& miss swati wht abt the earlier 580& 665,r u not going to nullify that

Mannat (Learner) (102 Points)
Replied 23 June 2012

Mr. Sameer first of all, you have interchanged the amounts of discount received and discount allowed. Correct Discount allowed is Rs. Rs.665 and discount received is Rs.580. Now solve the question, you''ll also get Rs.56580. And I've taken the required effect to nullify the error and hence reached at gross profit of Rs.56665.

Sameer (EXPERT) (173 Points)
Replied 23 June 2012

sori it is 56580

56750+580+580-665-665

Mannat (Learner) (102 Points)
Replied 23 June 2012

Yeah now you are correct..!!

CA.Karthikeyan G (M.Com) (201 Points)
Replied 23 June 2012

	Wrong Statement : (Given)
	Expenditure		Income
	Discount Received	580	Discount Allowed	665
	Profit	56750

	Correct Statement : (Answer)
	Profit Before Effect (Ref W.No)		56665
	Add : Discount Received		580
			57245
	Less : Discount Allowed		665
Profit After giving correct Effect			56580
	Workings :
	Profit		56750
	Added Back: Wrong Expenses		580
			57330
	Less : Wrong Income		665
Profit Before giving correct Effect			56665

CA.Shivam Aeran (Chartered Accountant) (48 Points)
Replied 24 June 2012

Answer is 56665

Rohit A Kadam (Chartered Accountant) (321 Points)
Replied 24 June 2012

Akash and Johan have given the correct replies. If you are still not clear, here is the tabular way of explaining it.

Reported Profit	56,750
Add: Wrong Discount Allowed	580
Less: Wrong Discount received	- 665
Net Profit before adjustment	56,665

Less: Correct discount allowed	- 665
Add: Correct discount received	580

Net Profit after adjustment	56,580

B. NITYA POOJA REDDY (Assistant Manager Accounts) (72 Points)
Replied 24 June 2012

ANSWER IS (A) RS. 56,580/- ADD TWO TIMES RS. 580/- I.E. ONE TIME FOR CANCELLATION AND ONE TIME FOR EFFECT AND LESS TWO TIMES RS. 665/- I.E. ONE TIME FOR CANCELLATION AND ONE TIME FOR EFFECT TO OLD NET PROFIT.

Gunjan Tulsyan (Article) (222 Points)
Replied 24 June 2012

The answer is very simple it would Rs.56,665 since from your question u can easily note that u have recorded ur income more by Rs. 85 or expense less by Rs. 85 so in oreder to rectify it just deduct the amount from profit amt i e 56,750-85=Rs.56,665....hope this was a quite easy and logical explanation....!!!!1

B. NITYA POOJA REDDY (Assistant Manager Accounts) (72 Points)
Replied 24 June 2012

ANSWER IS (A) RS.56,580/-

RS. 580/- ADD TWO TIMES TO OLD NET PROFIT i.e. one time for cancellation and one time for effect

RS. 665/- LESS TWO TIMES TO OLD NET PROFIT i.e. one time for cancellation and one time for effect.

B. NITYA POOJA REDDY (Assistant Manager Accounts) (72 Points)
Replied 24 June 2012

ANSWER IS (A) RS. 56,580/-

ADD TWO TIMES RS. 580/- I.E. ONE TIME FOR CANCELLATION AND ONE TIME FOR EFFECT

AND LESS TWO TIMES RS. 665/- I.E. ONE TIME FOR CANCELLATION AND ONE TIME FOR EFFECT

TO OLD NET PROFIT.

CA.Karthikeyan G (M.Com) (201 Points)
Replied 24 June 2012

How ya 56665 ? It is not profit increased by Rs.85.First of all effect itself wrong ya,Discount allowed has to be charged to P&L but credited to the same and discount received has to be credited to P&L but charged to P&L.So first reverse the profit by adding/Subtracting the wrong effect given and arrive the correct profit by giving coorect effect.Go by logic behind it.

Jatin Singh Negi (Country Analyst ) (505 Points)
Replied 24 June 2012

Buddy its being a simple question.

Dont confuse yourself and others.

the correct answer will be 56580 only.

Just make an adjustment of =85*2= 170 in the profit as arrived earlier.
i.e 56750-170 =56580

CA.Karthikeyan G (M.Com) (201 Points)
Replied 24 June 2012

29. A Trader has calculated a net profit of Rs.
56,750. Later he found that discounted
received of Rs. 580/- and discount allowed of
Rs. 665 have been recorded on the wrong
sides of these accounts. What would be the
correct profit?
a) Rs. 56,580 b) Rs. 56,665
c) Rs. 56,835 d) Rs. 56,920

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