A purchase of Rs 25,000 & a sale of Rs 50,000 has been omitted to be recorded in the books of accounts. What shall be the effect of these two transactions on the net profit of the organisation.

Profit shall increase by Rs 25,000

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Profit shall decrease by Rs 25,000

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Profit shall increase by Rs 50,000

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Profit shall decrease by Rs 50,000

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Solution

The correct option is A
Profit shall increase by Rs 25,000

Total profit shall increase by sales of Rs 50,000 & decrease by purchase of Rs 25,000. Hence total net effect will be an increase of Rs 25,000.

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A purchase of Rs 25,000 & a sale of Rs 50,000 has been omitted to be recorded in the books of accounts. What shall be the effect of these two transactions on the net profit of the organisation.

The correct option is A Profit shall increase by Rs 25,000 Total profit shall increase by sales of Rs 50,000 & decrease by purchase of Rs 25,000. Hence total net effect will be an increase of Rs 25,000.

The correct option is A
Profit shall increase by Rs 25,000

Total profit shall increase by sales of Rs 50,000 & decrease by purchase of Rs 25,000. Hence total net effect will be an increase of Rs 25,000.