Question

Ankur keeps his books on single entry system. From the following information,
you are required to ascertain the profit or loss for the year ended 31st Dec.
2017 and also to prepare a Balance sheet on that date.
1st Jan. 31st Dec.
2017
2017
₹
₹
Stock
16,000
18,000
Cash in hand
500
1,000
Debtors
11,000
10,500
Bills Receivable
15,000
14,000
Furniture
1,500
1,500
Motor van
2,000
2.000
Creditors
15,000
14,000
Bank overdraft
20,000
19,000
The drawings during the year amounted to 2500. Depreciate furniture by
10% and write off 300 from Motor van. As regards Debtors, it is ascertained
that 500 are irrecoverable and a further reserve of 5% should be made for
doubtful debts. Also reserve 700 in respect of Bills Receivable.​

Answer 1

Explanation:

profit during the year is 3300