Multiple choice

A proprietor, Mr. X has reported a profit of Rs. 1, 00, 000 at the end of the financial year after taking into consideration the following amounts.

(i) The cost of an asset of Rs. 10, 000 has been taken as an expense. (ii) Mr. X is anticipating a profit of Rs. 5, 000 on the future sale of a car shown as an asset in his books. (iii) Salary of Rs. 2000 payable in the financial year has not been taken into account. (iv) Mr. X purchased an asset for Rs. 50, 000 but its fair value on the date of purchases was Rs. 60, 000. Mr. X recorded the value of asset in his books at Rs. 60, 000

On the basis of the above facts answer the following question from the given choices: What is the correct amount of profit to be reported in the books?

  1. Rs. 1, 10, 000

  2. Rs. 1, 08, 000

  3. Rs. 1, 03, 000

  4. Rs. 93, 000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

  Correct Income = 100000 - (5000 + 2000 + 10000) + 10000                          = 93000 Answer.

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