Question

For the financial year 20011-12, the gross profit was Rs.1,75,000. During the year Carriage inward Rs.15,000, Personal expenses of proprietor Rs.75,000 and Carriage outward Rs.17,500. Bad debts for the year were Rs.12,000. The net profit earned for the year 2011-12 would be: a) Rs.85,000 b) Rs.1,45,500 c) Rs.64,500 d) none of the above

Answer 1

Answer:

b. 1,45,500

Explanation:

we wll right gross profit b/d on credit side and carriage outward and bad debts on debit side bcz they are loss and expense ... and we wll subract the debit amount from credit amount..

drawing will go in balance sheet

prepaid expense in banlance sheet

carriage inward in trading a/c