Multiple Choice Questions on According to Profit and Loss Account the net profit for the year is rs1 50 000 The total interest on........... for Commerce 12th Preparation

Back to Main Page

Multiple Choice Questions

According to Profit and Loss Account the net profit for the year is rs1 50 000 The total interest on...........

    Download Solution PDF

    According to Profit and Loss Account, the net profit for the year is rs1,50,000. The total interest on partner’s capital is rs18,000 and interest on partner’s drawings is rs2,000. The net profit as per Profit and Loss Appropriation Account will be :

    rs1,66,000

    Incorrect Answer

    rs1,70,000

    Incorrect Answer

    rs1,30,000

    Incorrect Answer

    rs1,34,000

    Correct Answer
    छोटे Courses बड़े Results
    Master
    Prepare through Micro-courses
    Try Now
    Explanation:

    - The net profit according to the Profit and Loss Account is Rs 1,50,000.

    - Interest on partner’s capital, amounting to Rs 18,000, should be deducted from this profit.

    - Interest on partner’s drawings, Rs 2,000, should be added to the profit.

    - These adjustments affect the net profit figure in the Profit and Loss Appropriation Account.

    Calculation:

    - Starting Net Profit: Rs 1,50,000

    - Subtract Interest on Capital: Rs 18,000

    - Add Interest on Drawings: Rs 2,000

    Final Calculation:

    - Rs 1,50,000 - Rs 18,000 + Rs 2,000 = Rs 1,34,000

    Therefore, the correct option is:

    Option 4 - Rs 1,34,000

    By: santosh
    ProfileResources

    Let's Discuss

    Master
    With abhipedia
    Micro Courses
    Try Now
    What our students have to say
    Review on us
    Download Abhipedia Android App

    Access to prime resources

    Downlod from playstore
    download android app download android app for free