Question

From the information given below ascertain the profit for the year

$\begin{array}{cc}\text{Items}& (Rs.)\\ \text{Capital at the beginning of the year}& 70,000\\ \text{Additional capital introduced during the year}& 17,500\\ \text{Stock}& 59,500\\ \text{Sundry Debtors}& 25,900\\ \text{Business permises}& 8,600\\ \text{Machinery}& 2,100\\ \text{Sundry Creditors}& 33,400\\ \text{Drawing made during the year}& 26,400\end{array}$

Answer 1

Statement of Affairs

as on ....

$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Sundry Creditors}& 33,400& \text{Stock}& 59,500\\ \text{Capital (b/f)}& 62,700& \text{Sundry Debtors}& 25,900\\ & & \text{Business Premises}& 8,600\\ & & \text{Machinery}& 2,100\\ & \underset{–}{\underset{–}{\overline{96,100}}}& & \underset{–}{\underset{–}{\overline{96,100}}}\end{array}$

Statement Showing Profit or Loss

for the year ended ......

$\begin{array}{cc}\text{Particulars}& \text{Amt. (Rs.)}\\ \text{Capital at the end of the year}& 62,700\\ (+)\text{Drawings during the year}& \underset{–}{26,400}\\ & 89,100\\ (-)\text{Additional Capital introduced during the year}& \underset{–}{(17,500)}\\ & 71,600\\ \text{Capital at the Beginning of the year}& \underset{–}{(70,000)}\\ \text{Profit made during the year}& \underset{–}{\underset{–}{1,600}}\end{array}$