Question

Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or loss for the year ending December 31, 2011 from the following information:

	April. 01, 2016		March. 31, 2017
		Rs		Rs
Cash in hand		10,000		36,000
Debtors		20,000		80,000
Creditors		10,000		46,000
Bills receivable		20,000		24,000
Bills payable		4,000		42,000
Car		–		80,000
Stock		40,000		30,000
Furniture		8,000		48,000
Investment		40,000		50,000
Bank balance		1,00,000		90,000

The following adjustments were made:

(a) Krishna withdrew cash Rs 5,000 per month for private use.

(b) Depreciation @ 5% on car and furniture @10%.

(c) Outstanding Rent Rs 6,000.

(d) Fresh Capital introduced during the year Rs 30,000.

Answer 1

Books of Krishna Kulkarni Statement of Affairs as on April 01, 2016
Liabilities	Amount Rs	Assets	Amount Rs
Creditors	10,000	Cash in Hand	10,000
Bills Payable	4,000	Debtors	20,000
		Bills Receivable	20,000
		Stock	40,000
		Furniture	8,000
		Investment	40,000
Capital (Balancing figure)	2,24,000	Cast at Bank	1,00,000
	2,38,000		2,38,000

Statement of Affairs as on March 31, 2017
Liabilities			Amount Rs	Assets			Amount Rs
Creditors			46,000	Cash in Hand			36,000
Bills Payable			42,000	Debtors			80,000
Outstanding Expenses			6,000	Bills Receivable			24,000
				Car		80,000
					Less: Depreciation 5%	(4,000)	76,000
				Stock			30,000
				Furniture		48,000
					Less: Depreciation 10%	4,800	43,200
Capital (Balancing figure)			3,35,200	Investment			50,000
				Cast at Bank			90,000
			4,29,200				4,29,200

Statement of Profit and Loss
Particulars	Amount Rs
Capital on March 31, 2017	3,35,200
Add: Drawings made during the year (Rs 5,000 × 12 months)	60,000
Less: Capital on April 01, 2016	(2,24,000)
Less: Fresh capital introduced during the year	(30,000)
Profit earned during the year 2017	1,41,200