alleryStart learning →Cost of goods sold is Rs 6,50,000 and net sales Rs 6,20,000. The result is
ANet profit of Rs 30,000
BGross profit of Rs 30,000
CGross profit of Rs 6,35,000
DGross loss of Rs 30,000
Answer & Solution
Correct answer: D. Gross loss of Rs 30,000
Cost exceeds net sales by Rs 30,000, so the trading account shows a gross loss.
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Net income is also calledCharging depreciation on fixed assets has what effect on net profit?Rs 36,000 rent for 12 months is received on 1 January. At the 31 March year end, unearned Investment interest of Rs 12,000 a year is received for nine months only. Accrued income aMachine costing Rs 2,00,000 is bought on 1 October; depreciation 15% a year on cost, year Current assets are Rs 4,80,000 and current liabilities Rs 3,10,000. Net current assets arePurchases Rs 4,00,000, purchase returns Rs 25,000, carriage inwards Rs 5,000. Net cost of Gross sales Rs 6,40,000 and sales returns Rs 15,000. Net sales are