Question

Following information is supplied to you by a shopkeeper:

Particulars		1st April, 2017 (₹)	31st March, 2018 (₹)
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 dometstic purposes. He also borrowed from a friend at 9% a sum of ₹ 20,000 on 1st October, 2017. He has not yet paid the interest. A provision of 5% on debotrs for doubtful debts is to be made.
Ascertain the profit or loss made by him during the period.

Answer 1

Statement of Affairs as on April 01, 2017
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, 2018
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, 2018
Particulars	Amount (₹)
Capital as on March 31, 2017	1,18,400
Add: Drawings (Rs 250 × 12)	30,000
	1,48,400
Less: Capital as on April 01, 2016	(1,13,000)
Profit made during the year 2016-17	35,400