Keshav Ltd., earned a net profit of ₹4,00,000 after considering the following items: Depreciation 80,000 Preliminary expenses 40,000 Provision for taxation 2,20,000 MD’s remuneration paid 60,000 Directors fees 20,000 Bonus paid 30,000 Profit on sale of fixed asset 30,000 (original cost ₹ 40,000; WDV ₹22,000) Compute the net profit for the purpose of managerial remuneration and calculate Managing Director’s remuneration at 5% of net profits.
Keshav Ltd., earned a net profit of ₹4,00,000 after considering the following items: Depreciation 80,000 Preliminary expenses 40,000 Provision for taxation 2,20,000 MD’s remuneration paid 60,000 Directors fees 20,000 Bonus paid 30,000 Profit on sale of fixed asset 30,000 (original cost ₹ 40,000; WDV ₹22,000) Compute the net profit for the purpose of managerial remuneration and calculate Managing Director’s remuneration at 5% of net profits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Keshav Ltd., earned a net profit of ₹4,00,000 after considering the following items:
Depreciation 80,000
Preliminary expenses 40,000
Provision for
MD’s remuneration paid 60,000
Directors fees 20,000
Bonus paid 30,000
Profit on sale of fixed asset 30,000
(original cost ₹ 40,000; WDV ₹22,000)
Compute the net profit for the purpose of managerial remuneration and calculate Managing Director’s remuneration at 5% of net profits.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education