An entity made a profit of Rs. 480,000 for the year 2018 based on historical cost...

 

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An entity made a profit of Rs. 480,000 for the year 2018 based on historical cost accounting principles. It had opening capital of Rs. 1,100,000. During 2018, specific price indices increased by 15% while general price indices increased by 12%. How much profit should be recorded for 2018 under real financial capital maintenance concept? (a) Rs. 480,000 (c) Rs. 348,000 (b) Rs. 315,000 (d) Rs. 645,000 Morning Football Club has a monthly subscription fee of Rs. 800 per member. The club has 240 members on 31 December 2018. No fresh members were admitted during 2018 but 30 members left the club on 1 July 2018. As at 31 December 2018, the club has received subscription in advance amounting to Rs. 60,000. The club's subscription income for 2018 would be: (a) Rs. 2,448,000 (c) Rs. 2,160,000 (b) Rs. 2,388,000 (d) Rs. 2,100,000 An entity made a profit of Rs. 480,000 for the year 2018 based on historical cost accounting principles. It had opening capital of Rs. 1,100,000. During 2018, specific price indices increased by 15% while general price indices increased by 12%. How much profit should be recorded for 2018 under real financial capital maintenance concept? (a) Rs. 480,000 (c) Rs. 348,000 (b) Rs. 315,000 (d) Rs. 645,000 Morning Football Club has a monthly subscription fee of Rs. 800 per member. The club has 240 members on 31 December 2018. No fresh members were admitted during 2018 but 30 members left the club on 1 July 2018. As at 31 December 2018, the club has received subscription in advance amounting to Rs. 60,000. The club's subscription income for 2018 would be: (a) Rs. 2,448,000 (c) Rs. 2,160,000 (b) Rs. 2,388,000 (d) Rs. 2,100,000

Answer rating: 100% (QA)

a The answer is d Rs 645000 To calculate the profit for 2018 under the real financial capital mainte... View the full answer