Question

Charu do not keep proper books of accounts. Prepare the statement of profit or loss for the year ending 31-3-2017 from the following information:

			1-4-2016	31-3-2017
			₹	₹
Cash in hand			10,000	36,000
Debtors			20,000	80,000
Creditors			10,000	46,000
Bills Receivable			20,000	24,000
Bills Payable			4,000	42,000
Car			–	80,000
Stock			40,000	30,000
Furniture			8,000	48,000
Investment			40,000	50,000
Bank balance			1,00,000	90,000

The following adjustments are to be made:
(a) Proprietor withdrew cash ₹ 5,000 per month for private use.
(b) Depreciation @ 5% on Car and @ 10% on furniture.
(c) Outstanding Rent ₹ 6,000.
(d) Fresh Capital introduced during the year ₹ 30,000.

Answer 1

Statement of Affairs as on March 31, 2016
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	10,000	Cash in Hand	10,000
Bills Payable	4,000	Cash at Bank	1,00,000
Capital (Balancing Figure)	2,24,000	Stock	40,000
		Debtors	20,000
		Bills Receivable	20,000
		Furniture	8,000
		Investment	40,000
	2,38,000		2,38,000

Statement of Affairs as on March 31, 2017
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	46,000	Cash in Hand	36,000
Bills Payable	42,000	Cash at Bank	90,000
Capital (Balancing Figure)	3,50,000	Stock	30,000
		Debtors	80,000
		Bills Receivable	24,000
		Furniture	48,000
		Investment	50,000
		Car	80,000
	4,38,000		4,38,000

Statement of Profit or Loss for the year ended March 31, 2017
Particulars		Amount (Rs)
Capital at the end of the year		3,50,000
	Add: Drawings made during the year (5,000 12)	60,000
	Less: Additional capital introduced during the year	30,000
Adjusted capital at the end of the year		3,80,000
	Less: Capital in the beginning of the year	2,24,000
Profit Before Adjustment		1,56,000
	Less: Depreciation on Car	4,000
	Less: Depreciation on Furniture	4,800
	Less: Outstanding Rent	6,000
Profit made during the year		1,41,200

Final Statement of Affairs as on March 31, 2017
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Opening Capital	2,24,000		Cash in Hand		36,000
Add: Net Profit	1,41,200		Cash at Bank		90,000
Add: Fresh Capital	30,000		Stock		30,000
Less: Drawings	60,000	3,35,200	Debtors		80,000
Creditors		46,000	Bills Receivable		24,000
Bills Payable		42,000	Investment		50,000
Outstanding Rent		6,000	Furniture	48,000
			Less: Depreciation	4,800	43,200
			Car	80,000
			Less: Depreciation	4,000	76,000
		4,29,200			4,29,200