Question
Rohan allocates his income in the following manner: he
spends 25% on rent, then 20% of the remaining amount on food. From what is left, he deposits 30% into his bank account and divides the rest between insurance and shares in the ratio of 9:5. If the difference between the amounts he invests in insurance and shares is Rs. 10,800, calculate the total amount deposited by Rohan in his bank account.Solution
Let the income of Rohan be Rs. '100x' So, income spent on rent = 100x X 0.25 = Rs. '25x' So, remaining income = 100x - 25x = Rs. '75x' Now, income spent on food = 75x X 0.2 = Rs. '15x' So, remaining income = 75x - 15x = Rs. '60x' So, sum deposited in bank = 60x X 0.3 = Rs. '18x' And remaining income = 60x - 18x = Rs. '42x' So, sum invested in insurance = 42x X (9/14) = Rs. '27x' And sum invested in shares = 42x - 27x = Rs. '15x' ATQ; 27x - 15x = 10800 Or, 12x = 10800 So, 'x' = 900 So, sum deposited in the bank = Rs. '18x' = Rs. (900 X 18) = Rs. 16,200
During an audit, the auditor notices that a single person in a company is responsible for authorizing transactions, maintaining records, and custody of ...
Which of the following provides the most reliable audit evidence?
Which of the following deductions is/are available as deduction from income under both the old and new tax regime of Income Tax?
During a statutory audit, the auditor discovers a pattern of journal entries posted near year-end reversing shortly after year-end that inflate reported...
An auditor identifies a material misstatement due to fraud in financial statements. What should be his immediate course of action?
Which principle requires that the financial affairs of the business must be kept separate from the personal affairs of the owner(s)?
 ………………. Is a kind of audit is conducted between two annual audits
Internal check is carried on by
Which of the following statements is true for cash basis accounting?
The internal audit report of XYZ Ltd. reveals irregularities in procurement. The statutory auditor plans to rely on internal audit work. Which standard ...
