Practice Test

X purchased merchandise worth Rs.1,00,000 & sold 60% for Rs.90,000 & 40% of the remaining sold for Rs.60,000. The market value of the remaining merchandise was Rs.20,000 .He valued the closing stock at Rs.24,000.He has violated the

Revenue from Sale of products, is generally , realized in the period in which

A proprietor X has a reported a profit of Rs.1,00,000 at the end of the financial year after taking into consideration the following amount (I) the cost of an asset of Rs.10,000 has been taken as an expenses (ii) 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.200 payable in the financial year has not been taken into account (iv) X purchased an asset for Rs.50,000 but its fair value on the date of purchase was Rs.60,000.X recorded the value of asset in his book at Rs.60,000.On the basis of the above facts answers the following question from the given choice ? 1. what is the correct amount of profit to be reported in the books