Question 9.
Shruti maintains her books of account from Incomplete Records. Her books provide the following information:
She with drew ₹ 500 per month for personal expenses. She sold her Investments of ₹ 16,000 at 5% premium and introduced the amount into business.
You are required to prepare a Statement of Profit or Loss for the year ending 31st March, 2016.
Answers
Statement of Profit or Loss
Closing Capital 51,000
+ Drawings 6,000
- Additional Capital 16,800
- Opening Capital 33,900
Profit earned during the year 6,300
Explanation:al
Additional Capital = Investment x rate of premium /100
16000x 5/100
= 16,800
Annual drawing = Drawing per month x 12
500 x 12 = 6000
Statement of Profit or Loss for the year ending 31.3.2016
Explanation:
In the Books of Shruti
Statement of Affairs
as on 1.4.2015
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 14900 Furniture 7500
Capital(bal.) 33000 Stock 22400
Debtors 16800
Cash 1200
47900 47900
Statement of Affairs
as on 31.3.2016
Liabilities Amount(Rs.) Assets Amount(Rs.)
Creditors 11600 Furniture 8000
Capital(bal.) 60000 Stock 24400
Debtors 27200
Investment 8000
Cash 1600
B/R 2400
Investments -
71600 71600
Statement of Profit/Loss
as on 31.3.2016
Particulars Amount(Rs.)
Capital as on 31.3.2016 60000
Add: Drawings 6000
Less: Sold Investments (16800)
Less: Capital as on 1.4.2015 (33000)
Profit made during the year 2015-16 16200