Question

Question 14.
Vikas is keeping his accounts according to Single Entry System. His capital on 31st December, 2015 was ₹ 2,50,000 and his capital on 31st December, 2016 was ₹ 4,25,000. He further informs you that during the year he gave a loan of ₹ 30,000 to his brother on private account and withdrew ₹ 1,000 per month for personal purposes. He used a flat for his personal purpose, the rent of which @ ₹ 1,800 per month and electricity charges at an average of 10% of rent per month were paid from the business account. During the year he sold his 7% Government Bonds of ₹ 50,000 at 1% premium and brought that money into the business.
Prepare a Statement of Profit or Loss for the year ended 31st December, 2016.

Answer 1

Statement of Profit/Loss for the year ended 31.12.2016

Explanation:

                                             Statement of Profit/Loss

                                                      as at 31.12.2016                                          

Particulars                                                         Amount(Rs.)                          

Capital as on 31.12.2016                                     425000

Add:Drawings                                                       12000

Add:Bank loan                                                      30000

Add:Rent Paid                                                       21600

Add:Electricity charges paid                                 2160

Less:Sold 7% Govt. bonds                                  (50500)

Less:Capital as on 31.12.2015                             (250000)

                                                                                                             

Profit made during the year 2015-16                190260

                                                                                                                 

Answer 2

Answer:

Profit is 1,90,260

Explanation:

Full solution is in the images