Question

Raghav, who keeps his books on single entry system, tells you that his capital on 31st march,2013
is Rs.3,74,000 and his capital on 1st April,2012 was Rs. 3,84,000.He further informs you that during
the year, he withdrew for his household purpose Rs.1,68,000.He sold his personal investment of
Rs.40,000 at 2% premium and brought that money into the business.
You are required to prepare statement of profit or loss.

Answer 1

statement of profit and loss

closing capital. = 374000

(+) drawings = 168000

(-) additional capital. =40800

(40000+40000×2%)

(-). opening capital. =. 384000

profit. = 117200