Solve please........

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

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

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

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) ..

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..

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..

 

 

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

 

For 1st Question answer should be 65400

For 2nd question answer should be 112000

for 1st question answer should be 53400

for 2nd question answer should be 112000

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.......??

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