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Solve please........

Harish Kumar (IPCC) (475 Points)

24 July 2012

Q.1 Find out the credit sales.........

opening Debtors 12,000

Closing Debtors 14,000

B/R accepted by Debtors 13,000

Cash received from debtors Rs 38,400

a) 39,400 b)27,000

c) 65,400 d) 53,400

Q. 2 Opening Capital 1,00,000

Intrest on capital 10,000

drawings 20,000

Intrest on drawings 2,000

Closing Capital 2,00,000

Find Net Profit ??

a) 1,00,000 b) 1,20,000

c) 1,22,000 d) 1,12,000

Explain in detail.....

Thank you

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11 Replies

STUDENT (student) (267 Points)
Replied 24 July 2012

2)112000 (20000+2000+200000-100000-10000)

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Sravanthi (CA Final ICWA Final & M.B.A) (737 Points)
Replied 24 July 2012

Formulae for CREDIT SALE:

Credit Sale=Cl.Debtors+B/R+Cash recd-Op.debtors

=14000+13000+38400-12000

=53400

Net Profit= Cl.capital+Drawings+Int.on drawings-Aditional capital-Int.on capital-op.capital

=200000+20000+2000-0-10000-100000

= 112000

STUDENT (student) (267 Points)
Replied 24 July 2012

1)53400(14000+38400+13000-12000)

Dev (Article Trainee.) (608 Points)
Replied 24 July 2012

Opening bal. Of debtor is 12000.. received cash and B/R worth 51400.. And closing bal. Of debtor is 14000 means increased by 2000 at the end.. Thats it total sale during year is 53400(51400+2000) ..

Dev (Article Trainee.) (608 Points)
Replied 24 July 2012

Assume that u have a bal in capital account 100000 u received interest on capital 10000.. Now u have 110000 in account.. Later U withdrew 20000 for personal use.. Now u have bal left in account is 90000.. Now again u paid int on drawing 2000 .. its a loss for you and profit for firm.. Thats why deducted from ur capital.. now u have 88000 in capital account.. int on capital is a gain for you thats why increased ur capital balance and int on drawing is a loss for u that why reduced ur capital bal.. Now u have 88000 in account. but as per question at the end of the period u have 200000 in ur account.. Means u gained more.. U had 88000 n now u have 200000.. Means u gained 112000 more during period.. 200000-88000=112000..

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shibu (Accountant) (325 Points)
Replied 24 July 2012

Originally posted by : Devesh
	A. Now again u paid int on drawing 2000 .. its a loss for you and profit for firm.. Thats why deducted from ur capital..

CA Ramnandhan Ravikumar (Executive - Audit) (199 Points)
Replied 24 July 2012

Sundry Debtors A/c
Particulars	Amount (Dr)	Particulars	Amount (Cr)

To Balance b/d	12000	By Cash	38400
To Credit Sales	53400	By B/R	13000
(Bal. Fig)		By Balance c/d	14000
	65400		65400

Parthamesh P Askar (article) (53 Points)
Replied 25 July 2012

For 1st Question answer should be 65400

For 2nd question answer should be 112000

pallavi jain (student) (123 Points)
Replied 25 July 2012

for 1st question answer should be 53400

for 2nd question answer should be 112000

Harish Kumar (IPCC) (475 Points)
Replied 25 July 2012

Originally posted by : Sravanthi
	Formulae for CREDIT SALE: Credit Sale=Cl.Debtors+B/R+Cash recd-Op.debtors =14000+13000+38400-12000 =53400 Net Profit= Cl.capital+Drawings+Int.on drawings-Aditional capital-Int.on capital-op.capital =200000+20000+2000-0-10000-100000 = 112000

why we done this for calculation of Net profit

Net profit is basically calculated through Trading & profit & Loss A/C

So please can you clarify this question to me.......??

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Roshan (Student) (123 Points)
Replied 26 July 2012

yes, you are right net profit is calculated through trading and p/l A/C.

But it is also true capital(owners equity) increases due to additional capital, Interest on capital, net profit (net result calculated via p/l A/C & transfered(added) to capital A/C) etc. and decreases due to interest on drawings.withdrawls...

So, conclusion

opening capital+Interest on capital+net profit-(drawings+interest on drawings)=closing capital

100000+10000+Net profit-(20000+2000)=200000

112000