Read the following information to answer. On the basis of case study given below, answer the question which follows: "Mikku on alumni of IIT Delhi initiated his start-up "Gajanan Lid.," in the year 2016. His profit in the year 2020-21 after all appropriation was ₹625000. This profit was arrived after taking the following items into consideration:
Loss on Sale of fixed Assets |
₹500000 |
Goodwill written off |
₹380000 |
Transfer to reserve |
₹355000 |
Provision for tax |
₹270000 |
Interest on Debentures paid |
₹165000 |
Particulars |
2020(₹) |
2021(₹)
|
Prepaid Expenses |
25000 |
10000 |
Accrued interest |
40000 |
68000 |
Trade payables |
700000 |
400000 |
Inventories |
650000 |
550000 |
|