Question

The following informations of Mr. x of an accounting year are given : Opening capital. 58000 Drawing@Rs 500 per month. Fresh capital introduced during the year. 10000 Closing Capital. 60000 Calculate profits or loss for the year. {Ans. Loss Rs 2000}

Answer 1

Answer:

As per the fluctuating capital method,  profit and loss for the year is Rs.2000/-

Explanation:

       Opening balance                                          -   58000

Add: Fresh capital introduced during the year       -     10000

Less: Drawings ( 500 x 12 months)                         -      6000

       Closing balance                                             -   60000

                                                                            -----------------

    Loss transferred to P& L Account                           (2000)

Note: Capital account is prepared & Kept in the attachment

cb339b63639a5e2f1dcac8150da46054.docx

Answer 2

There will be a loss of Rs.2000

GIVEN: Accounting Information of Mr.X :Opening capital. 58000 Drawing@Rs 500 per month. Fresh capital introduced during the year. 10000 Closing Capital. 60000
TO FIND: Profit or Loss for the financial year
SOLUTION:
As we are given:

Opening capital = 58000

Drawings = Rs 500 per month = 500*12 = 6000

Fresh capital introduced during the year = 10000

Closing Capital = 60000

                         STATEMENT OF PROFIT AND LOSS                                       Opening balance                                                                            -   58000

Add: Fresh capital introduced during the year                             -   10000

Less: Drawings ( 500 x 12 months)                                                -   (6000)

Closing balance                                                                              -   60000        

Loss transferred to P& L Account                                                      (2000)

Therefore,

Mr.X incurred loss of Rs.2,000.

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