Question

Ashu keep income record he started business on 1st April 2018 with capital of rupees 40000 is capital balance at 31st March 2019 was 150000 during the year he spend rupees 10,000 to buy mobile phone for his daughter and also under 2500 per month for his household expense he also introduced additional capital by selling his personal investment of rupees 50000 at the rate 20% of profit and total proceed were brought into the business calculate the profit and loss of the business for the year ended 31st March 2019

Answer 1

Statement of Profit and Loss as at 31.3.2019

Explanation:

                                              In the Books of Ashu

                                         Statement of Profit and Loss

                                                       as at 31.3.2019                                        

Particulars                                                                         Amount(Rs.)        

Capital as on 31.3.2019                                                       1,50,000

Add: Drawings during the year

            -Mobile Phone for daughter                                    10,000

            -Household expenses $[2500\times12]$                            30,000

Less: Additional Capital Introduced                                    (60,000)

            $[50,000+20\%]$

Less: Capital as on 1.4.2018                                                  (40,000)  

                                                                                                                       

Profit during the year 2018-2019                                        90,000

                                                                                                                         

Therefore,the amount of profits made during the year is Rs.90,000 for the year ended 2019.