Following information is supplied to you by a shopkeeper:

1st April, 2018
(₹)
31st March, 2019
(₹)

Cash
6,000
7,000

Sundry Debtors
68,000

64,000

Stock
59,000

87,000

Furniture
15,000

13,500

Sundry Creditors
20,000

18,000

Bills Payable
15,000

11,000

During the year, he withdrew ₹ 2,500 per month for domestic purposes. He also borrowed from a friend at 9% a sum of ₹ 20,000 on 1st October, 2018. He has not yet paid the interest. A provision of 5% on debtors for doubtful debts is to be made.
Ascertain the profit or loss made by him during the period.

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Solution

Statement of Affairs

as on April 01, 2018

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Sundry Creditors

20,000

Cash

6,000

Bills Payable

15,000

Sundry Debtors

68,000

Stock

59,000

Capital (Balancing Figure)

1,13,000

Furniture

15,000

1,48,000

1,48,000

Statement of Affairs

as on March 31, 2019

Liabilities

Amount

(₹)

Assets

Amount

(₹)

Sundry Creditors

18,000

Cash

7,000

Bills Payable

11,000

Stock

87,000

9% Loan from Friend

20,000

Furniture

13,500

Add: Interest Outstanding (2,000 × 9% × 6/12)

900

20,900

Capital (Balancing Figure)

1,18,400

Sundry Debtors

64,000

Less: 5% Provision for Doubtful Debts

(3,200)

60,800

1,68,300

1,68,300

Statement of Profit or Loss

for the year ended March 31, 2019

Particulars

Amount

(₹)

Capital as on March 31, 2019

1,18,400

Add: Drawings (Rs 250 × 12)

30,000

1,48,400

Less: Capital as on April 01, 2018

(1,13,000)

Profit made during the year 2018-19

35,400

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Similar questions

	₹		₹
Goodwill	20,000	Bank	20,000
Capital	1,80,000	Sundry Creditors	63,000
Liabilities for Expenses	1,200	Bills Receivable	13,000
Cash in Hand	1,000	Plant and Machinery	40,000
Investment	20,000	Provision for Doubtful Debts	2,500
Bills Payable	10,700	Closing Stock	80,000
Net Profit	92,600	Furniture	16,000
Sundry Debtors	50,000	Drawing	30,000
Land and Building	60,000


Particulars	Dr. (₹)	Cr. (₹)
Capital		40,000
Plant and Machinery	50,000
Office Furniture and Fittings	2,600
Stock on 1st April, 2017	48,000
Accrued Commission	12,000
Sundry Debtors	45,700
Cash in Hand	400
Cash at Bank	6,500
Wages	1,50,000
Salaries	14,000
Purchases	2,13,500
Sales		4,80,000
Bills Receivable	7,200
Bills Payable		5,600
Sundry Creditors		52,000
Returns Inward	9,300
Provision for Doubtful Debts		2,500
Drawings	7,000
Returns Outward		5,500
Rent	6,000
Factory Lighting and Heating	800
Insurance	6,300
General Expenses	1,000
Bad Debts	2,500
Discount	6,500	3,700
Total	5,89,300	5,89,300

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Statement of Affairs as on April 01, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	20,000	Cash	6,000
Bills Payable	15,000	Sundry Debtors	68,000
		Stock	59,000
Capital (Balancing Figure)	1,13,000	Furniture	15,000

	1,48,000		1,48,000

Statement of Affairs as on March 31, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Sundry Creditors		18,000	Cash		7,000
Bills Payable		11,000	Stock		87,000
9% Loan from Friend	20,000		Furniture		13,500
Add: Interest Outstanding (2,000 × 9% × 6/12)	900	20,900
Capital (Balancing Figure)		1,18,400
			Sundry Debtors	64,000
			Less: 5% Provision for Doubtful Debts	(3,200)	60,800

		1,68,300			1,68,300

Statement of Profit or Loss for the year ended March 31, 2019
Particulars	Amount (₹)
Capital as on March 31, 2019	1,18,400
Add: Drawings (Rs 250 × 12)	30,000
	1,48,400
Less: Capital as on April 01, 2018	(1,13,000)
Profit made during the year 2018-19	35,400