Question

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

$\begin{array}{ccc}\text{Items}& \text{Jan1, 2005}& \text{Dec 31, 2005}\\ \text{Cash in hand}& 18,000& 12,000\\ \text{Cash at bank}& 1,500& 2,000\\ \text{Stock in trade}& 80,000& 90,000\\ \text{Sundry Debtors}& 36,000& 60,000\\ \text{Sundry Creditors}& 60,000& 40,000\\ \text{Loan}& 10,000& 8,000\\ \text{Office equipments}& 25,000& 30,000\\ \text{Lands and Building}& 30,000& 20,000\\ \text{Furniture}& 10,000& 10,000\end{array}$

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

Statement of Affairs

as on 1st January, 2005

$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Sundry Creditors}& 60,000& \text{Cash in Hand}& 18,000\\ \text{Loan}& 10,000& \text{Cash at Bank}& 1,500\\ \text{Capital (Balancing Figure)}& 1,30,500& \text{Stock in trade}& 80,000\\ & & \text{Sundry Debtors}& 36,000\\ & & \text{Office Equipments}& 25,000\\ & & \text{Land and Buildings}& 30,000\\ & & \text{Furniture}& 10,000\\ & \overline{\underset{–}{\underset{–}{2,00,500}}}& & \overline{\underset{–}{\underset{–}{2,00,500}}}\end{array}$

Statement of Affairs

as on 31st December, 2005

$\begin{array}{cccc}\text{Capital and Liabilities}& \text{Amt. (Rs.)}& \text{Assets}& \text{Amt. (Rs.)}\\ \text{Sundry Creditors}& 40,000& \text{Cash in Hand}& 12,000\\ \text{Loan}& 8,000& \text{Cash at Bank}& 2,000\\ \text{Capital(Balancing Figure)}& 1,76,000& \text{Stock in trade}& 90,000\\ & & \text{Sundry Debtors}& 60,000\\ & & \text{Office Equipments}& 30,000\\ & & \text{Land and Buildings}& 20,000\\ & & \text{Furniture}& 10,000\\ & \overline{\underset{–}{\underset{–}{2,24,000}}}& & \overline{\underset{–}{\underset{–}{2,24,000}}}\end{array}$

Statement Showing Profit or Loss for the Year $\begin{array}{cc}\text{Particulars}& \text{Amt. (Rs.)}\\ \text{Capital at the end of the year on 31st Dec, 2005}& 1,76,000\\ (+)\text{Drawings during the year}& \underset{–}{12,000}\\ & 1,88,000\\ (-)\text{Capital introduced during the year}& \underset{–}{(20,000)}\\ & 1,68,000\\ (-)\text{Capital at the Beginning of the year 1st January,2005}& \underset{–}{(1,30,500)}\\ \text{Profit during the year 2005}& \underset{–}{\underset{–}{37,500}}\end{array}$