Site navigation

Opening balance of profit and loss Account was ₹ 7,500, dividend paid ₹ 1,500, closing balance of…

Using the Profit & Loss Appropriation relation: \(\text{Closing Balance} = \text{Opening Balance} + \text{Net Income} - \text{Dividends Paid}\). Substituting values: \(5,000…

Choose your answer

Opening balance of profit and loss Account was ₹ 7,500, dividend paid ₹ 1,500, closing balance of Profit and Loss Account was ₹ 5,000. Net income/Net loss was :

Select one answer
Answer and explanation

Correct answer A

Using the Profit & Loss Appropriation relation: Closing Balance=Opening Balance+Net Income−Dividends Paid\text{Closing Balance} = \text{Opening Balance} + \text{Net Income} - \text{Dividends Paid}. Substituting values: 5,000=7,500+Net Income−1,500  ⟹  5,000=6,000+Net Income  ⟹  Net Income=−Rs. 1,0005,000 = 7,500 + \text{Net Income} - 1,500 \implies 5,000 = 6,000 + \text{Net Income} \implies \text{Net Income} = -\text{Rs. }1,000 (i.e., Net Loss of ₹ 1,000).

Figure

Practice for these exams

  • RPSC School Lecturer (School Education)

Related question papers

Related exam syllabi

Related questions in this topic