Guys can u pls explain the following CPT problems to me, i m not able to understand them.. also mention the reasons how the answers have been concluded..
- A proprietor Mr.A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:
1. the cost of an asset of Rs. 25,000 has been taken as an expense.
2. Mr.A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.
3. salary of Rs.7000 payable in the financial year has not been taken into account
4. Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was 85,000. Mr. A recorded the valur of asset in his books by 85,000.
Ans- 1,33,000. HOW?
- A purchased a car for Rs. 5,00,000 making a down payment of Rs. 1,00,000 and signing a Rs.4,00,000 bill payable due in 60 days. as a result of this transaction,
1. total assets increased by 5,00,000
2. total liabilities increased by 4,00,000
3. total assets increased by 4,00,000
4. total assets increased by 4,00,000 with corresponding increase in liabilities by 4,00,000