it's a finance accounting question
I'm helping a friend (she's unable to solve due to health issues) in doing assignment and I'm not a commerce student ...
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que:
Gagan commenced business as a cloth merchant on 1.4.2019, with a capital of Rs 100000. On the same day, he purchased furniture and fitting for cash Rs 30000. From the following particulars obtained from his books kept by single entry, you are asked to prepare a trading and profit and loss account for the year ending on 3st March 2020 and a balance sheet as on that date.
Sales (inclusive of cash sales Rs 70000) -170000
Purchases (inclusive of cash purchases Rs 40000)-150000
Gagan's Drawings -12000
Salaries to staff -20000
Bad Debts written off -5000
Business Expenses -7000
Gagan took cloth worth Rs 5000 from shop for private use and paid Rs 2000 to his son, but omitted to record these transactions in his books. On 31" March, 2020, his Sundry Debtors were Rs 52000 and Sundry Creditors Rs 36000.Stock in hand on 31 March, 2020 was Rs 65000.
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Answer:
Statement of Profit or Loss
Particulars
Amount
(Rs)
Capital at the end
90,000
Add: Drawings
5,000
95,000
Less: Additional Capital Introduced
(10,000)
Adjusted Capital at the end
85,000
Less: Capital in the beginning
60,000
Net Profit for the year
25,000
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