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Standard XII

Accountancy

Hidden Goodwill

On 31st Mar...

Question

On $31^{s t}$ March, $2009$ Ram has loan of Rs. $50, 000$ and creditors of Rs. $80, 000$ Fixed assets of Rs. $72, 000$ , stock Rs. $90, 000$ and cash in hand Rs. $60, 000$ . If he had started business on April $1$ $2008$ with capital of Rs. $50, 000$ . Compute Profit earned by Ram for year $2008 - 09$ .

Rs.

92, 000

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Rs.

42, 000

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Rs.

1, 72, 000

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Rs.

52, 000

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Solution

The correct option is B Rs. $42, 000$
Assets on 31st March 2009 = Fixed assets + Stock + Cash in Hand
= 72000+90000+60000
= 2,22,000
Liabilities on 31st March 2009 = Loan + Creditors
= 50,000+ 80,000
= 1,30,000
Capital on 31st March, 2009 = Assets - Liabilities
= 222,000 - 1,30,000
= 92,000
Profit = Closing Capital - Opening Capital
= 92000- 50000
= 42000

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On 31st March, 2009 Ram has loan of Rs. 50,000 and creditors of Rs. 80,000 Fixed assets of Rs. 72,000, stock Rs. 90,000 and cash in hand Rs. 60,000. If he had started business on April 1 2008 with capital of Rs. 50,000. Compute Profit earned by Ram for year 2008−09.