Question

Suresh started business with Rs.25,000 as capital on 1-1-94. During the year he has

withdrawn at the rate of Rs.600 per month. He has sold his wife's jewel for Rs.4,000 and

introduced the same as additional capital to the business. His position on 31-12-94 was as

follows:

Rs. Rs.

Bank balance 2,000 Cash in hand 500

Stock 20,000 Sundry creditors 6,000

Debtors 12,100 Expenses outstanding 400

Furniture 500

He keeps his books under single entry method. Determine his profit or loss for the year.
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Answer 1

Answer:

Given

capital as on 31-3-11 (closing capital) = 120000

Capital as on 1-4-10 ( opening capital) = 200000

Fresh capital introduced during the year = 10000

Loss during the year = 20000

The amount withdrawn by suresh = closing capital - opening capital - fresh capital introduced + loss during the year

= 120000-200000-10000+20000

=70000

Given Liabilities

Bills payable= 10000

Bank overdraft= 6000

Bank loan= 8000

Closing capital = 120000

Then Total liabilities will be

= 120000+10000+8000+6000

=144000

We know that total liabilities (inclusive of capital) will be equal to total assets.. Therefore Total assets will be 144000..

Explanation:

Answer 2

Answer:

i have full explanation for this sum