Question

Mahesh who keeps his books on Single Entry System sells goods at Cost plus 50%. On 1st
April, 2018 his Capital was * 4,00,000 and on 31st March, 2019 it was 3,50,000. He had
withdrawn 20,000 per month besides goods of the sale value of 60,000. How much did
he earn in 2018-19?
[Profit- 2,30,000.]​

Answer 1

He earn in 2018-19 is $230,000

Explanation:

As we know that,

Ending capital balance = Opening balance of capital + profits made during the year - drawings

where,

Ending capital balance is $350,000

Opening capital balance is $350,000

Since the goods are sold at cost plus 50%

which means

Cost price = 100

Gross profit = 50

And, selling price = 150

And sales = $60,000

So, the gross profit would be = $60,000 × 50 ÷ 150 = $20,000

So, the cost of goods sold = $40,000

Now the drawing would be

= Cash for 12 months + cost of goods sold

= $240,000 + $40,000

= $280,000

Now the profit would be

= $350,000 - $400,000 + $280,000

= $230,000

Learn more

Single entry system?​

https://brainly.in/question/11550324

Answer 2

Answer:

how can u explain plsa

Explanation:

I couldn't understand