Question

Himanshu maintains his books on single entry system. His position was as under on 1st January 2012

Cash in hand Rs 600; Cash at Bank Rs 11,000; Stock Rs 11,200; Debtors Rs 6,914; Furniture Rs 400; Sundry Creditors Rs 8,114.

The position of Himanshu on 31st December 2012 was as follows:

Cash in hand Rs 760; Cash at Bank Rs 4,800; Stock Rs 9,360; Debtors Rs 9,240; Furniture Rs 500; Creditors Rs 6,000.

He withdrew Rs 13,000 from the business on 2nd January 2012 out of which he spent Rs 11,200 for purchasing of a motor-car for business. Taking the above into consideration, find out the profit of Himanshu.

Answer 1

Books of Himanshu
Statement of Profit/Loss

$\begin{array}{cc}\text{Particulars}& \text{Amount(Rs.)}\\ \text{Closing capital as on 31 Dec., 2012}& 29,860\\ \text{Add: Drawings made (13,000-11,200)}& \underset{–}{1,800}\\ & 31,660\\ \text{Less: Additional Capital}& \underset{–}{\underset{–}{}}\\ & 31,660\\ \text{Less: Opening Capital}& 22,000\\ \text{Profit made during the year}& 9,660\end{array}$

Statement of Affairs
As on 31 Dec., 2012

$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{Sundry Creditors}& 8,114& \text{Cash in Hand}& 600\\ \text{Capital (Balancing Figure)}& 22,000& \text{Cash at Bank}& 11,000\\ & & \text{Stock}& 11,200\\ & & \text{Debtors}& 6,914\\ & & \text{Furtniture}& 400\\ & \overline{\underset{–}{\underset{–}{30,114}}}& & \overline{\underset{–}{\underset{–}{30,114}}}\end{array}$

Statement of Affairs
As on 31 Dec., 2012

$\begin{array}{cccc}\text{Liabilities}& \text{Amount}& \text{Assets}& \text{Amount}\\ & \text{(Rs)}& & \text{(Rs)}\\ \text{Sundry Creditors}& 6,000& \text{Cash in Hand}& 760\\ \text{Capital (Balancing Figure)}& 29,860& \text{Cash at Bank}& 4,800\\ & & \text{Stock}& 9,360\\ & & \text{Debtors}& 9,240\\ & & \text{Furtniture}& 500\\ & & \text{Motor Car}& 11,200\\ & \overline{\underset{–}{\underset{–}{35,860}}}& & \overline{\underset{–}{\underset{–}{35,860}}}\end{array}$