Question

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.

Answer 1

Answer
Statement of Affairs
as on 1 January, 2005

Liabilities	Amt. (Rs)	Assets	Amt. (Rs)
Sundry Creditors	$45,000$	Sundry Debtors	$22,500$
Loan from wife	$66,000$	Land and Buildings	$89,600$
Bank Overdraft	$25,000$	Cash in Hand	$7,500$
Capital (Balancing Figure)	$18,900$	Furniture	$1,300$
		Stock	$34,000$
	$1,54,900$		$1,54,900$

Statement of Affairs
as on 31st December, 2005

Liabilities	Amt. (Rs)	Assets	Amt.(Rs)
Sundry Creditors	$93,000$	Land and Buildings	$90,000$
Loan from wife	$57,000$	Cash in Hand	$8,700$
		Furniture	$1,300$
		Stock	$25,000$
		Capital (Balancing Figure) (Negative due to loss)	$25,000$
	$1,50,000$		$1,50,000$

Statement Showing Profit or Loss for the Year 2005

Particulars	Amt. (Rs)
Capital at the end of the year as on 31st December 2005 (+) Drawings during the year [$1500x7=10,500$] [$4500x5=22,500$]	$25,000$ $33,000$
(-) Additional Capital Introduced	$8,000$ $50,000$
(-) Capital at the beginning of the year on January 2005	$42,000$ $18,900$
Loss during the year 2005	$60,900$