Krishna Kulkarni has not kept proper books of accounts prepare the statement of profit or loss for the year ending December 31, 2005 from the following information.
Items Jan 1, 2005 Dec 31, 2005
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 $30, 000$ .

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Solution

Answer :
Statement of Affairs
as on 1st January, 2005
Liabilities Amt.(Rs) Assets Amt.(Rs)
Creditors $10, 000$ Cash in hand $10, 000$
Bills Payable $4, 000$ Debtors $20, 000$
Capital (Balancing Figure) $2, 24, 000$ Bills Receivable $20, 000$
Car ---
Stock $40, 000$
Furniture $8, 000$
Investment $40,000

Cash at Bank $1, 00, 000$
$2, 38, 000$ $2, 38, 000$

Statement of Affairs
as on 31st December, 2005
Liabilities Amt. (Rs) Assets Amt. (Rs)
Creditors $46, 000$ Cash in Hand $36, 000$
Bills Payable $42, 000$ Debtors $80, 000$
Outstanding Expenses $6, 000$ Bills Receivable $24, 000$
Capital (Balancing Figure) $3, 35, 200$ Car $80, 000$
(-) Depreciation
@ $5 %$ $4, 0000$
$76, 000$
Furniture
(-)Depreciation
@ $10 %$ $48, 000$ $43, 200$
Investment $50, 000$

Cash at Bank $90, 000$
Stock $30, 000$
$4, 29, 200$ $4, 29, 200$

Statement Showing Profit or Loss for the Year 2005
Particulars Amt. (Rs)
Capital at the end of the year on 31st December 2005 $3, 35, 200$
(+) Drawings during the year $(5000 \times 12)$ $60, 000$
(-) Fresh Capital Introduced during the year $3, 95, 200$
$30, 000$
(-) Capital at the Beginning as on 1st Jan 2005 $3, 65, 200$
$2, 24, 200$
Profit earned during the year 2005 $1, 41, 200$

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Similar questions

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%.

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

Krishna Kulkarni has not kept proper books of accounts. Prepare the statement of profit or loss for the year ending December 31, 2005 from the following information:

$\begin{matrix} Items & Jan 1, 2005 (Rs.) & Dec 31, 2005 (Rs.) Cash in hand & 10, 000 & 36, 000 Debtors & 20, 000 & 80, 000 Creditors & 10, 000 & 46, 000 Bills receivable & 20, 000 & 24, 000 Bills payable & 4, 000 & 42, 000 Car & - - - & 80, 000 Stock & 40, 000 & 30, 000 Furniture & 8, 000 & 48, 000 Investment & 40, 000 & 50, 000 Bank Balance & 1, 00, 000 & 90, 000 \end{matrix}$

The following adjustements were made-

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

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

(d) Fresh capital introduced during the yaer Rs.30,000.

Q. Question : M/s Saniya Sports Equipment does not keep proper records. From the following information find out profit of loss and also prepare balance sheet for the year ended December 31, 2005.

Items	Jan 1, 2005 (Rs)	Dec 31, 2005 (Rs)
Cash in hand	$6, 000$	$24, 000$
Bank Overdraft	$30, 000$	----
Stock	$50, 000$	$80, 000$
Sundry Creditors	$26, 000$	$40, 000$
Sundry Debtors	$60, 000$	$1, 40, 000$
Bills Payable	$6, 000$	$12, 000$
Furniture	$40, 000$	$60, 000$
Bills Receivable	$8, 000$	$28, 000$
Machinery	$50, 000$	$1, 00, 000$
Investment	$30, 000$	$80, 000$

Drawing Rs

10, 000

p.m for personal use, fresh capital introduce during the year Rs

2, 00, 000

. A bad debts Rs.

2, 000

and a provision of

5 %

is to be made on debtors. Outstanding salary Rs

2, 400

, prepaid insurance Rs

700

depreciation charged on furniture and machine @

10 %

pa.

M/s Saniya Sports Equipment does not keep proper records. From the following information find out profit or loss and also prepare balance sheet for the year ended March 31, 2017

	April. 31, 2016		March. 31, 2017
		Rs		Rs
Cash in hand		6,000		24,000
Bank overdraft		30,000		–
Stock		50,000		80,000
Sundry creditors		26,000		40,000
Sundry debtors		60,000		1,40,000
Bills payable		6,000		12,000
Furniture		40,000		60,000
Bills receivable		8,000		28,000
Machinery		50,000		1,00,000
Investment		30,000		80,000

Drawing Rs 10,000 p.m. for personal use, fresh capital introduce during the year Rs 2,00,000. A bad debts of Rs 2,000 and a provision of 5% is to be made on debtors outstanding salary Rs 2,400, prepaid insurance Rs 700, depreciation charged on furniture and machine @ 10% p.a.

Q. Question : Gopal does not keep proper records in the books of account. Following information is given below.

Items	Jan 1, 2005	Dec 31, 2005
Cash in hand	$18, 000$	$12, 000$
Cash at bank	$1, 500$	$2, 000$
Stock in trade	$80, 000$	$90, 000$
Sundry Debtors	$36, 000$	$60, 000$
Sundry Creditors	$60, 000$	$40, 000$
Loan	$10, 000$	$8, 000$
Office equipments	$25, 000$	$30, 000$
Land and Buildings	$30, 000$	$20, 000$
Furniture	$10, 000$	$10, 000$

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.

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Liabilities	Amt.(Rs)	Assets	Amt.(Rs)
Creditors	$10, 000$	Cash in hand	$10, 000$
Bills Payable	$4, 000$	Debtors	$20, 000$
Capital (Balancing Figure)	$2, 24, 000$	Bills Receivable	$20, 000$
		Car	---
		Stock	$40, 000$
		Furniture	$8, 000$
		Investment	$40,000
		Cash at Bank	$1, 00, 000$
	$2, 38, 000$		$2, 38, 000$

Liabilities	Amt. (Rs)	Assets	Amt. (Rs)
Creditors	$46, 000$	Cash in Hand	$36, 000$
Bills Payable	$42, 000$	Debtors	$80, 000$
Outstanding Expenses	$6, 000$	Bills Receivable	$24, 000$
Capital (Balancing Figure)	$3, 35, 200$	Car $80, 000$ (-) Depreciation @ $5 %$ $4, 0000$	$76, 000$
		Furniture (-)Depreciation @ $10 %$ $48, 000$	$43, 200$
		Investment	$50, 000$
		Cash at Bank	$90, 000$
		Stock	$30, 000$
	$4, 29, 200$		$4, 29, 200$

Particulars	Amt. (Rs)
Capital at the end of the year on 31st December 2005	$3, 35, 200$
(+) Drawings during the year $(5000 \times 12)$	$60, 000$
(-) Fresh Capital Introduced during the year	$3, 95, 200$ $30, 000$
(-) Capital at the Beginning as on 1st Jan 2005	$3, 65, 200$ $2, 24, 200$
Profit earned during the year 2005	$1, 41, 200$