Mr. Sanjeev started a business with a capital of 4,50.000
At the end of the year his position was:
Amount (3)
Cash in hand
15.000
Cash at bank
75.000
Sundry Debtors
1.10.000
Stock
2.30.000
Furniture
55.000
Building
1.75.000
Sundry creditors at this date totaled 80.000
During the year he introduced a fresh capital of 1.80.000
and withdraw for household expenses 90,000. You are
required to calculate profit or loss during the year
Answers
Answer:
Mr. Joshi started a business with a capital of ₹ 5,00,000. At the end of the year his position was:
(₹)
Cash in hand 15,000
Cash at bank 70,000
Sundry Debtors 1,20,000
Stock 2,40,000
Furniture 75,000
Machinery 2,00,000
Sundry creditors at this date totalled ₹ 80,000. During the year he introduced a further capital of ₹ 1,50,000 and withdrew for household expenses ₹ 90,000.
You are required to calculate profit or loss during the year.
ANSWER:
Statement of Affairs
as on March …
Liabilities Amount (Rs) Assets Amount (Rs)
Sundry Creditors 80,000 Cash in Hand 15,000
Capital (Balancing Figure) 6,40,000 Cash at Bank 70,000
Sundry Debtors 1,20,000
Stock 2,40,000
Furniture 75,000
Machinery 2,00,000
7,20,000 7,20,000
Statement of Profit or Loss
for the year ended ….
Particulars Amount
(Rs)
Capital at the end of the year 6,40,000
Add: Drawings made during the year 90,000
Less: Additional capital introduced during the year 1,50,000
Adjusted capital at the end of the year 5,80,000
Less: Capital in the beginning of the year 5,00,000
Profit made during the year 80,000