Question

- From the following details, prepare a statement of Profit or Loss for the year ended
December 31, 1989.
Balance as on
1-1-89 Rs. 31-12-89 Rs.
20,000
15,000
Machinery
2,000 2,000
Furniture
70,000
Debtors
90,000
2,700 4,800
Cash
500
Prepaid Expenses
800
Accrued Income
3,000 5,300
Outstanding Income
Provide 10% depreciation on Machinery and furniture and 5% for bad debts on sundry
debtors. Interest on capital is to be provided at 6% per annum. After three months from the
beginning of the year the proprietor had to bring in Rs.5000 by way of additional capital. He
drew salary at Rs.500 p.m. In addition, he drew Rs. 3,000 in anticipation of profits. Rs. 2,000
income-tax was paid.​

Answer 1

Answer:

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From the following details, prepare a statement of Profit or Loss ...