Question

Opening balance of Profit & Loss Alc
was 7,500. dividend paid 1,500 ending
balance of Profit & Loss A/c was 5000.
Net income / net loss was
loss 1,000
O O O
net loss 2,000
O net income 1,000
O net income 6,500​

Answer 1

Answer:

it should be net income rs 1000

Answer 2

Answer:

The correct answer is Option A i.e. Net loss Rs 1000.

Explanation:

i) Given,

Opening balance of Profit & Loss A/c = Rs 7500

ii) Dividend paid = Rs 1500

iii) Ending balance of Profit & Loss A/c = Rs 5000

iv) To calculate the net income/net loss:

Ending balance = Opening balance - Dividend paid + net income/net loss

v) Substituting the values:

5000 = 7500 - 1500 + net income/loss

Net income/net loss = 6500 - 7500 = Rs -1000

vi) Since the answer is negative, it is a net loss.

vii) Hence, the correct answer is Option A i.e. Net loss Rs 1000.

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