From the following details calculate net profit on accrual basis.
Particulars Rs.
Goods sold for cash $5, 00, 000$
Credit sales $25, 000$
Cash purchases $4, 00, 000$
Credit purchases $50, 000$
Wages paid $20, 000$
Outstanding expenses $10, 000$
Rent paid $5, 000$
Rent outstanding $2, 000$
Depreciation on building $10, 000$
Loss on sales of fixed assets $1, 000$

Rs.

75, 000

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Rs.

27, 000

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Rs.

32, 000

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Rs.

40, 000

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Solution

The correct option is B Rs. $27, 000$
Net Profit for the year Ended..

Particular

Amount

Particular

Amount

To Purchase a/c

Cash -400000

Credit-50000

450000

By Sales a/c

Cash-500000

Credit-25000

525000

To Wages Paid A/c

20000

To O/s Expenses A/c

10000

To Rent Paid A/c

5000

+ O/s 2000

7000

To Depreciation on building A/c

10000

To loss on sale of fixed assets A/c

1000

To Net profit transferred A/c

27000

525000

525000

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Similar questions

Calculate the gross profit /loss if:

Sales Rs. 60,000; Cost of sales Rs. 50,000; Opening stock Rs. 10,000; Purchases Rs.40,000; Wages Rs. 20,000 and Office rent Rs. 10,000.

Prepare accounting equation from the following
(i) Started business with cash Rs. 1,00,000 and machinery Rs. 80,000.
(ii) Purchased goods for cash Rs. 20,000 and on credit Rs. 30,000.
(iii) Sold goods for cash costing Rs. 10,000 and on credit costing Rs. 15,000 both at a profit of 20%
(iv) Cash withdrawn for personal use Rs. 10,000.
(v) Accrud interest Rs. 2,000.
(vi) Rent received in advance Rs. 1,000.
(vii) Interest on capital @ 10% (only on cash introduced as capital).
(viii) Interest on drawings charged @ 5% (Total drawings till now is Rs. 10,000).
(ix) Depreciation on machinery provided @ 10%.
(x) Rent paid in cash Rs. 1,000 and rent outstanding Rs. 500.
(xi) Prepaid insurance Rs. 1,000.
(xii) Bad debts written off Rs. 1,000.

Q. What will be the effect of the following on the accounting equation?
(i) Harish started business with cash Rs.18,000.
(ii) Purchased goods for cash Rs.5,000 and on credit Rs.2000.
(iii) Sold goods for cash Rs. 4,000 (costing Rs.2,400)
(iv) Rent paid Rs.1,000 and rent outstanding Rs.200

Calculate closing stock from the following details opening stock Rs. 20,000; cash sales Rs. 60,000; credit sales Rs. 40,000; purchases Rs. 70,000. Rate of gross profit on cost $33 \frac{1}{3} %$ .

Prepare Comparative Income Statement from the following information:

Particulars	2015-16 Rs.	2016-17 Rs.
Manufacturing expenses	35,000	80,000
Opening stock	30,000	60% of closing stock
Sales	9,60,000	4,50,000
Returns outward	4,000 (out of credit purchase)	6,000 (out of cash purchase)
Closing stock	150% of opening stock	1,00,000
Credit purchases	1,50,000	150% of cash purchase
Cash purchases	80% of credit purchases	40,000
Carriage outward	10,000	30,000
Building	1,00,000	2,00,000
Depreciation on building	20%	10%
Interest on bank overdraft	5,000	-
10% debentures	2,00,000	20,00,000*
Profit on sale of copyright	10,000	20,000
Loss on sale of personal car	10,000	20,000
Other operating expenses	20,000	10,000
Tax rate	50%	40%

*There is a misprint in the book, this should be 2,00,000

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Particulars	Rs.
Goods sold for cash	$5, 00, 000$
Credit sales	$25, 000$
Cash purchases	$4, 00, 000$
Credit purchases	$50, 000$
Wages paid	$20, 000$
Outstanding expenses	$10, 000$
Rent paid	$5, 000$
Rent outstanding	$2, 000$
Depreciation on building	$10, 000$
Loss on sales of fixed assets	$1, 000$

Particular	Amount	Particular	Amount
To Purchase a/c Cash -400000 Credit-50000	450000	By Sales a/c Cash-500000 Credit-25000	525000
To Wages Paid A/c	20000
To O/s Expenses A/c	10000
To Rent Paid A/c 5000 + O/s 2000	7000
To Depreciation on building A/c	10000
To loss on sale of fixed assets A/c	1000
To Net profit transferred A/c	27000
	525000		525000