Mr.Sanjay started a firm on 1st April 2018 with a capital of Rs.10,000.On 1st
July 2018 he borrowed from his wife a sum of Rs.4,000@9% p.a (interest not yet
paid) for business and introduces a further capital of his own amounted to
Rs.1500. On 31st March, 2019 his position was:
Cash Rs.600, Stock Rs.9, 400, Debtors Rs.7, 000 and Creditors Rs.6, 000
Ascertain his Profit or Loss taking into account Rs.2, 000 for his drawings during
the year.
Answers
Answer:
Prashad keeps his books on Single Entry System Entry Systme. From the following information given by him, ascertain his profit or loss for the year ended 31st March, 2019: <br> On 31st March, 2018 his position was: <br> Plant and Machinery Rs. 30,000, Stock Rs. 5,000, Cash in Hand Rs. 100, Debtors Rs. 17,000, Loan from Anish Rs. 1,000 at 4% p.a interest, Bank Overdraft Rs. 1,100 and Creditors Rs. 12,120 <br> On 31st March, 2019 he owed to his creditors Rs. 9,170 and had paid to Anish Rs. 500 in lieu of his loan on 1st October, 2018 but had paid no interest. He had bought additional plant and Machineary which costed Rs. 13,000. Debtors were Rs. 23,000 out of which Rs. 900 he would not be able to collect. The Cash and Bank Balance was Rs. 4,100. Stock at the end was valued at Rs. 4,500. <br> Prashad withdrew Rs. 8,300 for domestic purposes. He introduced a further capital of Rs. 10,000 during the year.