@zaasmi said in MGT101 GDB 1 Solution and Discussion:
GDB Question:
Mr. Waseem is working as an accountant in a business organization under the name of ABC Brothers. He has recently prepared financial statements by using the data available in Trial Balance of ABC Brothers and he has presented the financial statements to the Manager accounts of the organization. Manager accounts observed the following errors in the income statement prepared by Mr. Waseem, which produce inaccurate financial affairs of business.
Carriage inwards of Rs. 35,000 wrongly reported under the head of selling expenses. Carriage outwards of Rs. 15,000 wrongly reported under the head cost of goods sold. Selling expenses of Rs. 20,000 wrongly reported under the head of administration expenses. Financial expenses of Rs. 13,000 wrongly reported under the head of selling expenses.
SOLUTION.
A. Carriage towards of Rs. 35,000 wrongly reported under the head of selling expenses. B. Carriage Outwards of Rs. 15,000 wrongly reported under the head cost of goods sold. C. Selling Expenses of Rs. 20,000 wrongly reported under the head of administration expenses. D. Financial Expenses of Rs. 13,000 wrongly reported under the head of selling expenses.
What will be correct amount of Gross profit, if Cross profit before correcting the given errors was Rs. 335,000?
Gross Profit 335,000
Less Carriage Inward 35,000
Gross Profit 300,000
Income Statement:
Sales XXX
Less CGS XXX
Gross Profit XXX
Less Selling Exp. XXX
Less Admin Exp. XXX
Net Profit XXX