Multiple choice

Ludhiana Club has a bar inside the club. Purchases on the account of bar during the previous month were Rs. 15,000. Opening stock was Rs. 1000 and closing stock was Rs. 500 more than the opening stock. There was an outstanding credit at the end of the month of Rs. 3500. Total bar takings during the period was Rs. 22,000 cash with Rs. 3000 accrued at the end. Calculate the profit or loss of the bar.

  1. Profit Rs. 7000

  2. Loss Rs. 7000

  3. Profit Rs. 4000

  4. Profit Rs. 10,500

  5. Profit Rs. 8000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total bar takings = 22,000 + 3000 = Rs. 25,000. Bar expenses = purchases + opening stock - closing stock + outstanding at the end = 15,000 + 1000 - 1500 + 3500 = Rs. 18,000 Thus, profit = Rs. (25,000 - 18,000) = Rs. 7000

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