Question

necessary Iluger dccounts the book) Ol Yogendi
10. Radha agencies keeping its books under single entry system.
From the following prepare "statement of affairs" and find out
profit/loss for the year ending 31-03-2018,
Particulars
31-03-2017 31-03-2018
Fixed Assets
40,000 68,000
Current Assets
15,000 27,000
Current Liabilities
20,000 14,000
Additional information :
(1) Additional capital introduced during the year was 12,000,
(2) Personal drawings from the business were Rs. 3,300.
(3) Depreciate 10% on fixed assets.
(4) 5% discount reserve on current liabilities.​

Answer 1

Explanation:

capital at beginning [(40,000+15,000) - 20,000] = 35,000

change in fixed asset:

68,000-10%(Depri.) = 61,200....(1)

change in Liabilities:

14,000-5%(discount reserve)= 13,300....(2)

capital at the end.

fixed asset = 61,200 ...(1)

+current assets = 27000

- current liabilities= (13,300)..(2)

Total 74,900.

change is capital during the year.

capital at end = 74,900

+borrowing. =. 3,300

- Additional cap. =. (12,000)

Total = 66,200

Profit;

capital at the end (w/o change) - capital at beginning.

66,200 - 35000.

PROFIT = 31,200

THANK YOU.