Question

Mr. Muneesh maintains his books of accounts from incomplete records. His books provide the information:

	April. 01, 2016		March. 31, 2017
		Rs		Rs
Cash		1,200		1,600
Bills receivable		–		2,400
Debtors		16,800		27,200
Stock		22,400		24,400
Investment		–		8,000
Furniture		7,500		8,000
Creditors		14,000		15,200

He withdrew Rs 300 per month for personal expenses. He sold his investment of Rs 16,000 at 2% premium and introduced that amount into business.

Answer 1

Statement of Affairs as on April 01, 2016
Liabilities	Amount Rs	Assets	Amount Rs
Creditors	14,000	Cash	1,200
		Debtors	16,800
		Stock	22,400
		Furniture	7,500
Capital (Balancing figure)	33,900
	47,900		47,900

Statement of Affairs as on March 31, 2017
Liabilities	Amount Rs	Assets	Amount Rs
Creditors	15,200	Cash	1,600
		Bills Receivable	2,400
		Debtors	27,200
		Stock	24,400
Capital (Balancing figure)	56,400	Investment	8,000
		Furniture	8,000
	71,600		71,600

Statement of Profit and Loss as on March 31, 2017
Particulars	Amount Rs
Capital on March 31, 2017	56,400
Add: Drawing made during the year (Rs 300 × 12)	3,600
Less: Capital on April 01, 2016	(33,900)
Less: Additional Capital Introduced	(16,320)
Profit earned during the year 2017	9,780

Working Note:

Additional Capital Introduced	=	16,000 ×	102
			100
	=	16,320