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Question
Question : Following information is given below calculate the closing capital
Items Jan 1, 2011
(Rs)
Dec 31, 2011
(Rs)
Creditors 5,000 30,000 Bills Payable 10,000 ---- Loan ----- 50,000 Bills receivable 30,000 50,000 Stock 5,000 30,000 Cash 2,000 20,000
Calculation of profit or loss and ascertainment of statement of affairs at the end of the year (Opening Balance is given)
Note : In the above question, opening and closing balances of capital are not given, so first of all we have to prepare statement of affairs at the beginning and at the end of the year. Then only we will be able to get the profit figure of the year.
Statement of Affairs
as on 1st January 2011
Liabilities Amt. (Rs) Assets Amt. (Rs) Creditors 5,000 Bills receivable 30,000 Bills Payable 10,000 Stock 5,000 Capital (Balancing Figure) 22,000 Cash 2,000 37,000 37,000
Statement of Affairs
as on 31st December, 2011
Liabilities Amt. (Rs) Assets Amt. (Rs) Creditors 30,000 Bills Receivable 50,000 Loan 50,000 Stock 30,000 Capital (Balancing Figure) 20,000 Cash 20,000
1,00,000 1,00,000
Statement of Profit or Loss
for the year ended as on 31st December, 2011
Particulars Amt. (Rs) Capital at the end of the year i.e., December 2011 20,000 (-) Capital at the beginning of the year i.e., January 2011 22,000 Loss during the year 2011 2,000
| Items | Jan 1, 2011 (Rs) | Dec 31, 2011 (Rs) |
| Creditors | 5,000 | 30,000 |
| Bills Payable | 10,000 | ---- |
| Loan | ----- | 50,000 |
| Bills receivable | 30,000 | 50,000 |
| Stock | 5,000 | 30,000 |
| Cash | 2,000 | 20,000 |
Calculation of profit or loss and ascertainment of statement of affairs at the end of the year (Opening Balance is given)
Note : In the above question, opening and closing balances of capital are not given, so first of all we have to prepare statement of affairs at the beginning and at the end of the year. Then only we will be able to get the profit figure of the year.
Statement of Affairs
as on 1st January 2011
| Liabilities | Amt. (Rs) | Assets | Amt. (Rs) |
| Creditors | 5,000 | Bills receivable | 30,000 |
| Bills Payable | 10,000 | Stock | 5,000 |
| Capital (Balancing Figure) | 22,000 | Cash | 2,000 |
| 37,000 | 37,000 |
Statement of Affairs
as on 31st December, 2011
| Liabilities | Amt. (Rs) | Assets | Amt. (Rs) |
| Creditors | 30,000 | Bills Receivable | 50,000 |
| Loan | 50,000 | Stock | 30,000 |
| Capital (Balancing Figure) | 20,000 | Cash | 20,000 |
| 1,00,000 | 1,00,000 |
Statement of Profit or Loss
for the year ended as on 31st December, 2011
| Particulars | Amt. (Rs) |
| Capital at the end of the year i.e., December 2011 | 20,000 |
| (-) Capital at the beginning of the year i.e., January 2011 | 22,000 |
| Loss during the year 2011 | 2,000 |
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Solution
Answer :
Statement of Affairs
as on 31st December, 2011
Liabilities Amt.(Rs) Assets Amt. (Rs) Creditors 3,00,000 Cash 30,000 Loan from friends 1,00,000 Stock 4,70,000 Capital (b/f) 4,50,000 Debtors 3,50,000 8,50,000 8,50,000
Statement of Profit or Loss Account
as on 31st December 2011
Particulars Amt. (Rs) Capital at the end of the year i.e., 31st December 2011 4,50,000 (+) Drawings made during the year (8000 x 6 month) 48,000
4,98,000 (-) Additional Capital introduced 75,000 4,23,000 (-) Capital at the beginning of the year i.e., 1 July 2008 4,00,000 Profit made during the year 2011 23,000
Statement of Affairs
as on 31st December, 2011
| Liabilities | Amt.(Rs) | Assets | Amt. (Rs) |
| Creditors | 3,00,000 | Cash | 30,000 |
| Loan from friends | 1,00,000 | Stock | 4,70,000 |
| Capital (b/f) | 4,50,000 | Debtors | 3,50,000 |
| 8,50,000 | 8,50,000 |
Statement of Profit or Loss Account
as on 31st December 2011
| Particulars | Amt. (Rs) |
| Capital at the end of the year i.e., 31st December 2011 | 4,50,000 |
| (+) Drawings made during the year (8000 x 6 month) | 48,000 |
| 4,98,000 | |
| (-) Additional Capital introduced | 75,000 |
| 4,23,000 | |
| (-) Capital at the beginning of the year i.e., 1 July 2008 | 4,00,000 |
| Profit made during the year 2011 | 23,000 |
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