Question

Yon 01.04.2016 the position of Rakesh was as under:
Loan from friend Rs. 20,000, Cash Rs. 24,000, Bank Rs. 50,000, Stock Rs. 8,000, Debtor
Rs. 36,000, Furniture Rs. 16,000, Creditors Rs. 16,000.
His position on 31.03.2017 was as under:
Cash Rs. 5,000, Bank Rs. 9,600, Stock Rs. 15,000, Debtors Rs. 38,400, Furniture
Rs. 19,200, Creditors Rs. 15,000.
During the year he repaid 50% of his friend's Loan and withdrew Rs. 2,400 per quarte
for domestic use. Find profit or Loss after providing 10% depreciation on furniture an
write off Rs. 1,200 and create a provision of 5% on debtors.​

Answer 1

Answer:

20380 loss

Explanation:

the difference between capital employed on two dates is taken as profit