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Guys can u pls explain the following CA Foundation | CA CPT problems to me, i m not able to understand them.. also mention the reasons how the answers have been concluded.. A proprietor Mr.A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount: 1. the cost of an asset of Rs. 25,000 has been taken as an expense. 2. Mr.A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books. 3. salary of Rs.7000 payable in the financial year has not been taken into account 4. Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was 85,000. Mr. A recorded the valur of asset in his books by 85,000. Ans- 1,33,000. HOW? A purchased a car for Rs. 5,00,000 making a down payment of Rs. 1,00,000 and signing a Rs.4,00,000 bill payable due in 60 days. as a result of this transaction, 1. total assets increased by 5,00,000 2. total liabilities increased by 4,00,000 3. total assets increased by 4,00,000 4. total assets increased by 4,00,000 with corresponding increase in liabilities by 4,00,000

10153151 616441875107752 6844265409377433766 n CAKART asked over 1 year ago

Guys can u pls explain the following CA Foundation | CA CPT problems to me, i m not able to understand them.. also mention the reasons how the answers have been concluded.. A proprietor Mr.A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount: 1. the cost of an asset of Rs. 25,000 has been taken as an expense. 2. Mr.A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books. 3. salary of Rs.7000 payable in the financial year has not been taken into account 4. Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was 85,000. Mr. A recorded the valur of asset in his books by 85,000. Ans- 1,33,000. HOW? A purchased a car for Rs. 5,00,000 making a down payment of Rs. 1,00,000 and signing a Rs.4,00,000 bill payable due in 60 days. as a result of this transaction, 1. total assets increased by 5,00,000 2. total liabilities increased by 4,00,000 3. total assets increased by 4,00,000 4. total assets increased by 4,00,000 with corresponding increase in liabilities by 4,00,000

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9 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 ambika answered over 1 year ago

sol. q.1- profit-125000 +25000 as asset purchased is to be shown in B/S and here he shows in p&l hence profit got reduce by 25000 so add it - 10000 any anticipating profit should not be shown until it is realised so deduct 10000 from profit. - 7000 as salary is an expense,show it in P&L. in 4th point no treatment in P&L as it is B/S item,so no effect in P&L . correct profit =133000.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 niraj answered over 1 year ago

In q.2 Ans. is total assets increased by 400000 with liability 400000. Because As in Asset side- Car comes-500000 and cash decreases by 100000,so total 400000 increase in asset side. similarly in liability side Bills payable comes 400000.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 shweta answered over 1 year ago

Thank you

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 sumanta answered over 1 year ago

Agree

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 rakshita answered over 1 year ago

Agree

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 shweta answered over 1 year ago

Agree

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Subhasis Giri answered over 1 year ago

Thank you alot

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 sumanta answered over 1 year ago

how to calculate written down value method by using the formula...thanks in advance..

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 niraj answered over 1 year ago

Sol.q.1-125000+25000-7000-10000 (85000-75000)=133000

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Similar Articles like Guys can u pls explain the following CA Foundation | CA CPT problems to me, i m not able to understand them.. also mention the reasons how the answers have been concluded.. A proprietor Mr.A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount: 1. the cost of an asset of Rs. 25,000 has been taken as an expense. 2. Mr.A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books. 3. salary of Rs.7000 payable in the financial year has not been taken into account 4. Mr. A purchased an asset for Rs. 75,000 but its fair value on the date of purchase was 85,000. Mr. A recorded the valur of asset in his books by 85,000. Ans- 1,33,000. HOW? A purchased a car for Rs. 5,00,000 making a down payment of Rs. 1,00,000 and signing a Rs.4,00,000 bill payable due in 60 days. as a result of this transaction, 1. total assets increased by 5,00,000 2. total liabilities increased by 4,00,000 3. total assets increased by 4,00,000 4. total assets increased by 4,00,000 with corresponding increase in liabilities by 4,00,000

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