Question

From the following information relating to the business of Mr. X who keeps books by single entry ascertain the profit or loss for the year ended 31st March, 2017:

			1-4-2016	31-3-2017
			₹	₹
Machinery			16,000	16,000
Furniture			4,000	4,000
Stock			14,000	10,000
Sundry Debtors			8,000	9,000
Bank Balance			400	3,600
Sundry Creditors			10,000	7,000

Mr. X withdrew ₹ 4,100 during the year to meet his household expenses. He introduced ₹ 600 as fresh capital. Machinery and furniture to be depreciated by 10% and 5% per annum respectively.

Answer 1

Statement of Affairs as on April 01, 2016
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	10,000	Cash at Bank	400
Capital (Balancing Figure)	32,400	Machinery	16,000
		Stock	14,000
		Debtors	8,000
		Furniture	4,000
	42,400		42,400

Statement of Affairs as on March 31, 2017
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	7,000	Cash at Bank	3,600
Capital (Balancing Figure)	35,600	Machinery	16,000
		Stock	10,000
		Debtors	9,000
		Furniture	4,000
	42,600		42,600

Statement of Profit or Loss for the year ended March 31, 2017
Particulars		Amount (Rs)
Capital at the end of the year		35,600
	Add: Drawings made during the year	4,100
	Less: Additional capital introduced during the year	600
Adjusted capital at the end of the year		39,100
	Less: Capital in the beginning of the year	32,400
Profit Before Adjustment		6,700
	Less: Depreciation on Machinery	1,600
	Less: Depreciation on Furniture	200
Profit made during the year		4,900