Practicing Success
Profit of a partnership firm for the year ended 2018 and 2019 is ₹300000 & ₹350000 respectively. Closing stock as on 31st March,2018 was undervalued by ₹20000. Calculate the exact normal profit of the firm for both year? |
₹280000, ₹330000 ₹320000,₹350000 ₹320000,₹330000 ₹280000, ₹350000 |
₹320000,₹330000 |
Profit of 2018 = 300000 + 20000 (undervaluation of closing stock is added back because it decreases profit) |