Question

Q.27
Mr. Mehta started his readymade garments business on April 1, 2016 with a capital of Rs.
50,000. He did not maintain his books according to double entry system. During the year he
introduced fresh capital of Rs. 15,000. He withdrew Rs. 10,000 for personal use. On March
31, 2017, his assets and liabilities were as follows:
Total creditors Rs. 90,000; Total debtors Rs. 1,25,600; Stock Rs. 24,750; Cash at bank Rs.
24,980.
Calculate profit or loss made by Mr. Mehta during the first year of his business using the
statement of affairs method.​

Answer 1

Answer:

closing capital

creditors. 90000. debtors 125600

capital 85330 cash at bank 24980

stock. 24750

175330 175330

statement of p and l account

capital at the end. 85330

add drawings. 10000

95330

less additional capital. 15000

adjusted capital 80330

less capital at beginning. 50000

profit for the year. 30330

Explanation:

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