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Accounts Query

Souniya (IPCC) (110 Points)

19 April 2011

Hi,

Please help me with below query

Mr. Prakash sells goods at 20% above cost. His sales were Rs. 10,20,000 during the year. However, he sold damaged goods for Rs. 20,000 costing Rs. 30,000. This sale is included in Rs. 10,20,000. The amount of gross profit is :

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M. N. JHA (CA) (8316 Points)
Replied 19 April 2011

Normal Sales= 10,20,000-20,000= Rs. 10,00,000 Profit on Normal Sales- 10,00,000*20/120= Rs.1,66,667 Loss on Damaged Goods Sold= Rs. 10,000 Gross Profit= 1,66,667-10,000= Rs. 1,56,667

DIVYA PINCHA (ASSISTANT MANAGER:MERCHANT BANKING) (537 Points)
Replied 19 April 2011

CORRECT

Gross Profit= 1,66,667-10,000= Rs. 1,56,667

1 Like

Ashish Jain (.Net Developer) (641 Points)
Replied 20 April 2011

i am agree.....................

Souniya (IPCC) (110 Points)
Replied 29 April 2011

Hi .

Please help me with this Capital Reserve query

3000 shares of Rs.10 each of Krishnan were forfeited by crediting Rs.5000 to share forfeiture account. Out of these ., 1800 shares were re-issued to Radhe for Rs.9 per share. the amount to be transfered to capital reserve account will be?

Ashish Jain (.Net Developer) (641 Points)
Replied 29 April 2011

i think.............

the amount to be transfered to capital reserve account

5000/3000*1800-1800 = 1200

1 Like

shrikant (Accounts Manager) (44 Points)
Replied 30 April 2011

Originally posted by : G.N.JHA
	Normal Sales= 10,20,000-20,000= Rs. 10,00,000 Profit on Normal Sales- 10,00,000*20/120= Rs.1,66,667 Loss on Damaged Goods Sold= Rs. 10,000 Gross Profit= 1,66,667-10,000= Rs. 1,56,667