Question
A man borrows Rs. 60,000 from the bank at 9% per annum.
He lends Rs. 25,000 at 16% per annum and the rest at 14% per annum to two different clients for a year. Calculate his net gain or loss after one year.Solution
ATQ, For the borrowed amount 
For the amount lent at 16%: 
For the amount lent at 14%: 
Total Return :- 29000 + 39900 = 68900 Net profit: Profit = 68900 − 65400 = 3500 The man makes a profit of Rs. 3500.
Which of the following is a primary objective of auditing?
An auditor's sample for test of controls is least likely to be designed to:
Which of the following is an example of an inherent limitation of an audit?
The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated is known as:
Why must auditors obtain an understanding of internal control even if they do not intend to rely on it?
An audit conducted between two annual audits is known as a:
Which balance is least suited to positive confirmation?
Which auditing standard outlines the auditor's responsibilities relating to fraud in an audit of financial statements?
‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. This is an example of:
Which of the following financial statements can be prepared using a receipt and payment account?
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