Shri amar started his business with a capital of ₹ 70000 on 1st april 2015. his financial position on 31st march, 2016 was as follows
Answers
Answer:
shri amar brought additional capital of 10000 on 30th sept 2015
Answer:
Shri Amar started his business with a capital of ` 70,000 on 1st April, 2015. His financial position on
31st March, 2016 was as follows: [8]
Particulars Amount (`)
Cash 4,720
Stock 5,125
Bills payable 7,400
Creditors 8,150
Debtors 20,000
Prepaid insurance 300
Bills receivable 15,150
Premises 42,400
Vehicles 20,100
Additional information:
1. Shri Amar brought additional capital of ` 10,000 on 30th September, 2015.
2. Interest on capital is to be allowed at 5% p.a.
3. Shri Amar withdrew ` 5,000 for his personal use.
4. Depreciate vehicles at 10% p.a. and premises at 10% p.a.
5. Reserve for bad and doubtful debts is to be provided at 3% after writing off bad debts
of ` 1,000.
6. Creditors of ` 3,180 be written off.
Prepare:
(a) Closing statement of affairs as on 31 – 03 – 2016.
(b) Statement of Profit or Loss for the year ended 31 – 03 – 2016.
OR
(A) Give the meaning and types of ‘comparative financial statement’ and explain the steps to
prepare it. (4)
(B) Give the meaning of ‘capital investment’ and explain return on investment.