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Standard XI

Accountancy

Adjustment for Outstanding Expenses

Outstanding e...

Question

Outstanding expenses as at the end of the financial year are Rs. 40,000 which are given in adjustments. The profit before taking this into consideration is Rs. 8,00,000. What is the correct profit?

Rs. 8,00,000

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Rs. 8,40,000

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Rs. 7,60,000

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Rs. 8,80,000

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Solution

The correct option is C Rs. 7,60,000
Rs. 8,00,000 - Rs. 40,000
= Rs. 7,60,000

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Outstanding expenses as at the end of the financial year are Rs. 40,000 which are given in adjustments. The profit before taking this into consideration is Rs. 8,00,000. What is the correct profit?

The correct option is C Rs. 7,60,000Rs. 8,00,000 - Rs. 40,000 = Rs. 7,60,000

The correct option is C Rs. 7,60,000
Rs. 8,00,000 - Rs. 40,000
= Rs. 7,60,000