Question

1) Opening balance of Profit & Loss A/c was ₹7500, dividend Paid ₹1500 ending Balance Of Profit and loss A/C was 5000
Net income/Net Loss was_______

Answer:- -1000 loss

Explanation:-
I) Opening Balance is 7500
2) Dividend is 1500
3) Closing Balance is 5000

"Remeber Closing Balance is always Greater then Opening Balance"

1)7500-1500 (Opening- Dividend)
=6000
2) 5000 - 6000(Closing- Opening)
= 1000 losss
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Answer 1

Answer:

B is the correct answer

Explanation:

I) Opening Balance is 7500

2) Dividend is 1500

3) Closing Balance is 5000

"Remember Closing Balance is always Greater then Opening Balance"

1)7500-1500 (Opening- Dividend)

=6000

2) 5000 - 6000(Closing- Opening)

= 1000 loss

Answer 2

Answer:

There will be a net loss of Rs. 1000.

Explanation:

Assuming that the Opening balance of P and L is positive, and the balance was posted on the credit side of P and L account.

Given, Opening Balance              = Rs 7,500

           Dividend Paid                   = Rs 1,500

            Ending Balance                = Rs  5,000

1) Dividend Paid is an indirect expense and hence, must be subtracted from opening Balance.

   So Opening Balance - Dividend Paid = 7, 500 - 1500 = 6,000

2) We can see that the ending balance is less than 6,000 And hence we will have a net loss.

    Net loss = 6,000 - 5,000 = 1,000

Hence, Net loss was Rs 1,000.

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