Question

Gopal does not keep proper books of account. Following information is given below:

	April. 01, 2016		March. 31, 2017
		Rs		Rs
Cash in hand		18,000		12,000
Cash at bank		1,500		2,000
Stock in trade		80,000		90,000
Sundry debtors		36,000		60,000
Sundry creditors		60,000		40,000
Loan		10,000		8,000
Office equipments		25,000		30,000
Land and Building		30,000		20,000
Furniture		10,000		10,000

During the year he introduced Rs 20,000 and withdrew Rs 12,000 from the business. Prepare the statement of profit or loss on the basis of given information

Answer 1

Books of Gopal Statement of Affairs as on April 01, 2016
Liabilities	Amount Rs	Assets	Amount Rs
Sundry Creditors	60,000	Cash in hand	18,000
Loan	10,000	Cash at bank	1,500
		Stock in trade	80,000
		Sundry Debtors	36,000
		Office Equipments	25,000
Capital (Balancing figure)	1,30,500	Land and Buildings	30,000
		Furniture	10,000
	2,00,500		2,00,500

Statement of Affairs as on March 31, 2017
Liabilities	Amount Rs	Assets	Amount Rs
Sundry Creditors	40,000	Cash in Hand	12,000
Loan	8,000	Cash at Bank	2,000
		Stock in Trade	90,000
		Sundry Debtors	60,000
		Office Equipments	30,000
Capital (Balancing figure)	1,76,000	Land and Buildings	20,000
		Furniture	10,000
	2,24,000		2,24,000

Statement of Profit and Loss as on March 31, 2017
Particulars	Amount Rs
Capital on March 31, 2017	1,76,000
Add: Drawing made during 2017	12,000
Less: Capital on April 01, 2016	(1,30,500)
Less: Additional capital introduced	(20,000)
Profit during the year	37,500

Note: As per the solution, the profit during the year should be Rs 37,500; whereas, the profit given in the book is Rs 53,500.