Question

On 1st April, 2017, X started a business with ₹ 40,000 as his capital. On 31st March, 2018, his position was as follows:

Particulars		(₹)
Creditors	................................................................................	30,000
Bills Payable	................................................................................	10,000
Bank	................................................................................	10,000
Debtors	................................................................................	50,000
Stock	................................................................................	40,000
Plant	................................................................................	68,000
Furniture	................................................................................	12,000

During the year 2017–18, X drew ₹ 24,000. On 1st October, 2017, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit on loss made by him during the year 2017–18.
Adjustments:
(a) Plant is to be depreciated at 10%.
(b) A provision of 5% is to be made against debtors, Also prepare the Statement of Affairs as on 31st March, 2018.

Answer 1

Statement of Affairs for the year ended March 31, 2018
Liabilities	Amount (₹)	Assets		Amount (₹)
Creditors	30,000	Bank		10,000
Bills Payable	10,000	Debtors	50,000
Capital (Balancing Figure)	1,30,700	Less: 5% Provision for Doubtful Debts	(2,500)	47,500
		Stock		40,000
		Plant	68,000
		Less: 10% Depreciation	(6,800)	61,200
		Furniture		12,000
	1,70,700			1,70,700

Statement of Profit or Loss for the year ended March 31, 2018
Particulars	Amount (₹)
Capital as on March 31, 2018	1,30,700
Add: Drawings	24,000
	1,54,700
Less: Additional Capital Introduced	(30,000)
Adjusted Capital as on March 31, 2018	1,24,700
Less: Capital as on April 01, 2017	(40,000)
Profit made during the year 2017-18	84,700