3.
Pavan keeps his books by single untry. He started business on 1st January 2005 with
Rs. 20,000. On 31st December, 2005 his position was as under:
Assets : Cash in band Rs. 500: Cash at bank Rs. 1000; furniture Rs. 2.500; Plant Rs. 10.000
Sundry debtors Rs. 5,000; Stock Rs. 9,000 and bills receivables Rs. 1,000;
Liabilities : Sundry creditors Rs. 4,000, Bills payable Rs. 600 and outstanding expenses
Rs. 500.
Ascertain the profit or loss.
Answers
Answer:
Explanation:
Balance Sheet of --------as on 31.12.2005
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LIABILITIES ASSETS
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Capital 20,000.00 Plant 10,000.00
Sundry creditors 4,000.00 Furniture 2,500.00
Bills Payable 600.00 Bills receivable 1,000.00
Outstanding Expenses 500.00 Debtors 5,000.00
Profits (difference ) 3,900.00
Stock 9,000.00
Cash at Bank 1,000.00
Cash in Hand 500.00
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Total 29,000.00 29,000.00
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