Mr. A does not keep proper records of his business. Following information is available from records kept by him:

1-4-2016 31-3-2017

₹ ₹

Cash 20,000 18,000

Bank 30,000 33,000

Debtors 17,000 25,000

Stock 40,000 60,000

Fixed Assets 29,000 29,000

Creditors 52,000 32,000

Loan 10,000 25,000

Mr. A withdrew from the business ₹ 3,000 per month upto 30th September 2016 and thereafter ₹ 4,000 per month as drawings. ₹ 50,000 realised by the proprietor as maturity value of National Saving Certificates was invested in the business.
Prepare a statement showing net profit (or net loss) for the year.

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Solution

Statement of Affairs

as on April 01, 2016

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Creditors

52,000

Cash in Hand

20,000

Loan

10,000

Cash at Bank

30,000

Capital

74,000

Debtors

17,000

(Balancing Figure)

Stock

40,000

Fixed Assets

29,000

1,36,000

1,36,000

Statement of Affairs

as on March 31, 2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Creditors

32,000

Cash in Hand

18,000

Loan

25,000

Cash at Bank

33,000

Capital

1,08,000

Debtors

25,000

(Balancing Figure)

Stock

60,000

Fixed Assets

29,000

1,65,000

1,65,000

Statement of Profit or Loss

for the year ended March 31, 2017

Particulars

Amount

(Rs)

Capital at the end of the year

1,08,000

Add: Drawings made during the year

(3,000 × 6 + 4,000 × 6)

42,000

Less: Additional capital introduced during the year

50,000

Adjusted capital at the end of the year

1,00,000

Less: Capital in the beginning of the year

74,000

Profit made during the year

26,000

Suggest Corrections

Similar questions

Q. Raghuveer keeps incomplete records. His position was as follows:

	31st March, 2016 (₹)	31st March, 2017 (₹)
Cash in Hand	2,000	3,000
Cash at Bank	30,000	20,000
Stock-in-Trade	2,00,000	1,90,000
Sundry Debtors	85,000	1,40,000
Plant & Machinery	1,50,000	2,70,000
Fixtures and Fittings	18,000	15,000
Sundry Creditors	2,20,000	2,90,000

During the year, Raghuveer introduced ₹ 50,000 as further capital in the business and withdrew ₹ 7,500 per month. From the above information, show Profit or Loss for the year ended 31st March, 2017.

Q. Mr. White does not keep his books properly. Following information is available from his books.

	1-4-2015	31-3-2016
	₹	₹
Sundry Creditors	45,000	93,000
Loan from wife	66,000	57,000
S. Debtors	22,500	–
Land & Building	89,600	90,000
Cash in hand	7,500	8,700
Bank overdraft	25,000	–
Furniture	1,300	1,300
Stock	34,000	25,000

During the year Mr. White sold his private car for ₹ 50,000 and invested this amount into the business. He withdrew from the business ₹ 1,500 per month upto 31st October, 2015 and thereafter ₹ 4,500 per month as drawings. You are required to prepare a statement of profit or loss and a statement of affairs as at March 31, 2016.

Mr. Ashok does not keep his books properly.
Following information is available from his books

$\begin{matrix} Items & Jan 1, 2005 (Rs.) & Dec 31, 2005 (Rs.) Sundry Creditors & 45, 000 & 93, 000 Loan from wife & 66, 000 & 57, 000 Sundry Debtors & 22, 500 & - - - Land and Building & 89, 600 & 90, 000 Cash in hand & 7, 500 & 8, 700 Bank overdraft & 25, 000 & - - - Furniture & 1, 300 & 1, 300 Stock & 34, 000 & 25, 000 \end{matrix}$

During the year Mr. Ashok sold his private car for Rs. 50,000 and invested this amount into the business. He withdrew from the business Rs. 1,500 per month up to July 31, 2005 and thereafter Rs. 4,500 per month as drawings.
You are required to prepare the statement of profit or loss and statement of affairs as on December 31, 2005.

Mr. Ashok does not keep his books properly. Following information is available from his books.

	April. 01, 2016		March. 31, 2017
		Rs		Rs
Sundry creditors		45,000		93,000
Loan from wife		66,000		57,000
Sundry debtors		22,500		–
Land and Building		89,600		90,000
Cash in hand		7,500		8,700
Bank overdraft		25,000		–
Furniture		1,300		1,300
Stock	34,000		25,000

During the year Mr. Ashok sold his private car for Rs 50,000 and invested this amount into the business. He withdrew from the business Rs 1,500 per month upto October 31, 2016 and thereafter Rs 4,500 per month as drawings. You are required to prepare the statement of profit or loss and statement of affair as on March 31, 2017.

Q. Question : Mr Ashok does not keep his book properly. Following information is available from his books.

Items	Jan 1, 2005 (Rs)	Dec 31, 2005 (Rs)
Sundry Creditors	$45, 000$	$93, 000$
Loan from wife	$60, 000$	$57, 000$
Sundry Debtors	$22, 500$	------
Land and Building	$89, 600$	$90, 000$
Cash in hand	$7, 500$	$8, 700$
Bank overdraft	$25, 000$	-----
Furniture	$1, 300$	$1, 300$
Stock	$34, 000$	$25, 000$

During the year Mr. Ashok sold his private car for Rs

50, 000

and invested this amount into the business. He withdrew from the business Rs

1, 500

per month upto july 31, 2005 and thereafter Rs

4, 500

per month as drawings. You are required to prepare the statement of affairs as on December 31, 2005.

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	1-4-2016	31-3-2017
	₹	₹
Cash	20,000	18,000
Bank	30,000	33,000
Debtors	17,000	25,000
Stock	40,000	60,000
Fixed Assets	29,000	29,000
Creditors	52,000	32,000
Loan	10,000	25,000

Statement of Affairs as on April 01, 2016
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	52,000	Cash in Hand	20,000
Loan	10,000	Cash at Bank	30,000
Capital	74,000	Debtors	17,000
(Balancing Figure)		Stock	40,000
		Fixed Assets	29,000
	1,36,000		1,36,000

Statement of Affairs as on March 31, 2017
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	32,000	Cash in Hand	18,000
Loan	25,000	Cash at Bank	33,000
Capital	1,08,000	Debtors	25,000
(Balancing Figure)		Stock	60,000
		Fixed Assets	29,000
	1,65,000		1,65,000

Statement of Profit or Loss for the year ended March 31, 2017
Particulars		Amount (Rs)
Capital at the end of the year		1,08,000
	Add: Drawings made during the year (3,000 × 6 + 4,000 × 6)	42,000
	Less: Additional capital introduced during the year	50,000
Adjusted capital at the end of the year		1,00,000
	Less: Capital in the beginning of the year	74,000
Profit made during the year		26,000