Question

Transcribed image text: 8 Calculate the funds from operations from the following profit and loss account. Rs. 2,00,000 20,000 Profit and Loss Account Particulars Rs. Particulars To Expenses paid 1,00,000 By Gross Profit To Depreciation 40,000 By Gain on sale To Loss on sale of of Machinery building 15,500 To Discount 500 To Good will 12,000 To Net Profit 52,000 2,20,000 2,20,000

Answer 1

8 Calculate the funds from operations from the following profit and loss account. Rs. 2,00,000 20,000 Profit and Loss Account Particulars Rs. Particulars To Expenses paid 1,00,000 By Gross Profit To Depreciation 40,000 By Gain on sale To Loss on sale of of Machinery building 15,500 To Discount 500 To Good will 12,000 To Net Profit 52,000 2,20,000 2,20,000

3. Find out, inu (a) Net Purchases (b) Creditors Turnover Ratio. Gross Profit on Sales is 20% and value of gross profit is Rs. 6,00,000. Stock turnover ratio is 6 times and opening stock is Rs. 8,000 less than the closing stock. Opening sundry creditor Rs.40,000 and closing sundry creditors are Rs.50,000.