Question

1.Guji company had the following amounts of assets and liabilities at the beginning and end of last year: Assets Liabilities Beginning of the year………………Br.75,000 Br. 30,000 End of the year….……………………120,000 46,000 Determine the net income or net loss of Guji for the year under each of the following unrelated assumptions: a)Owner made no additional investment and withdrew no amount during the year b)Owner made no additional investment but withdrew Br.17,500 to pay for her personal expenses c)Owner withdrew no amount during the year but made additional investment of Br. 32,500 cash. d)Owner withdrew Br.17,500 and invested Br.25,000 cash during the year.

Answer 1

ANSWER:

The net profit of Guji is $Rs.36,500$.

Step-by-step explanation:

Given: The details regarding Guji's company.

To find The net income or net loss of Guji's company.

Solution:

                                                                    ASSETS                LIABILITIES

• Beginning of the year                         $75,000$                       $30,000$
• End of the year                                    $1,20,000$                    $46,000$
• Profit for the year
• $Assets - Liabilities = 45,000 - 16,000$

                                         $= Rs.29,000$

• Profit = Assets - Liabilities -  Withdrawl + Addition

                 $= 45,000 - 16,000 + 25,000 - 17,500$

                 $= Rs.36500$.

Therefore, the net profit of Guji is $Rs.36500$.

PROJECT CODE: #SPJ1