Question

Mr. Akshat keeps his books on incomplete records following information is given below:

	April 01, 2016		March 31, 2017
		Rs		Rs
Cash in hand		1,000		1,500
Cash at bank		15,000		10,000
Stock		1,00,000		95,000
Debtors		42,500		70,000
Business premises		75,000		1,35,000
Furniture		9,000		7,500
Creditors		66,000		87,000
Bills payable		44,000		58,000

During the year he withdrew Rs 45,000 and introduced Rs 25,000 as further capital in the business compute the profit or loss of the business.

Answer 1

Books of Mr. Akshat Statement of Affairs as on April 01, 2016
Liabilities	Amount Rs	Assets	Amount Rs
Creditors	66,000	Cash in Hand	1,000
Bills Payable	44,000	Cash at Bank	15,000
Capital (Balancing figure)	1,32,500	Stock	1,00,000
		Debtors	42,500
		Business Premises	75,000
		Furniture	9,000
	2,42,500		2,42,500

Statement of Affairs as on March 31, 2017
Liabilities	Amount Rs	Assets	Amount Rs
Creditors	87,000	Cash in Hand	1,500
Bills Payable	58,000	Cash at Bank	10,000
Capital (Balancing figure)	1,74,000	Stock	95,000
		Debtors	70,000
		Business Premises	1,35,000
		Furniture	7,500
	3,19,000		3,19,000

Statement of Profit and Loss as on March 31, 2017
Particulars	Amount Rs
Capital on March 31, 2017	1,74,000
Add: Drawings made during the year	45,000
Less: Capital on April 01, 2016	(1,32,500)
Less: Additional capital introduced	(25,000)
Profit earned by Mr. Akshat during the year 2016–2017	61,500