Multiple choice

On 31st March, 2011, the books of Ajit showed a net profit of Rs. 84,000. Later it was discovered that the closing stock was over valued by 4,000 and the discount received of Rs. 1,500 was treated as an expense. What was the correct net profit of Ajit?

  1. Rs. 81,500

  2. Rs. 83,000

  3. Rs. 89,500

  4. Rs. 91,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

84,000 - 4,000 + 1,500 (Not recorded as profit) + 1500 (because it was rated as an expense). Therefore, the amount of 1,500 discount will be added two times = Rs. 83,000

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