Question

Following information is given below. Prepare the statement of profit or loss

$\begin{array}{cc}\text{Items}& (Rs.)\\ \text{Capital at the end of the year}& 5,00,000\\ \text{Capital in the beginning of the year}& 7,50,000\\ \text{Drawings made during the period}& 3,75,000\\ \text{Additional Capital introduced}& 50,000\end{array}$

Answer 1

Statement of Profit or loss

for the year ended

$\begin{array}{cc}\text{Particulars}& \text{Amt.(Rs.)}\\ \text{Capital at the end of the year}& 5,00,000\\ (+)\text{Drawings during the year}& \underset{–}{3,75,000}\\ & 8,75,000\\ (-)\text{Additional Capital Introduced}& \underset{–}{50,000}\\ & 8,25,000\\ (-)\text{Capital at the Beginning of the year}& \underset{–}{7,50,000}\\ \text{Profit made during the year (b/f)}& \underset{–}{75,000}\end{array}$