Outstanding electricity bill Rs. 800 is shown on the ___ side of statement of the affairs.

Liabilities

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Solution

The correct option is A Liabilities
Outstanding electricity bill Rs. 800 is shown on the liabilities side of the statement of affairs.

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Similar questions

Miss Priyanka runs a small bakery business. On 1st April, 2015 she had started the business with a capital of Rs. 78,000. On 31st March, 2016 her incomplete records provide the following data

(i) Amount due to suppliers of raw materials Rs. 17,500.

(ii) Stock of raw materials Rs. 2,000 and finished products Rs. 2,500.

(iii) Fixed assets Rs. 34,000.

(iv) Amount due from customers Rs. 42,000.

(v) She had withdrawn Rs. 2,500 per month for meeting her personal expenses.

(vi) She had introduced Rs. 7,000 as capital during the year.

(vii) She has cash at bank Rs. 21,000 and cash in hand Rs. 1,800.

(viii) Outstanding electricity bill Rs. 2,250

Calculate the profit / loss of her business during the year using statement of affairs method.

Q. Question : Following information is given below calculate the closing capital

Items	Jan 1, 2011 (Rs)	Dec 31, 2011 (Rs)
Creditors	$5, 000$	$30, 000$
Bills Payable	$10, 000$	----
Loan	-----	$50, 000$
Bills receivable	$30, 000$	$50, 000$
Stock	$5, 000$	$30, 000$
Cash	$2, 000$	$20, 000$

Calculation of profit or loss and ascertainment of statement of affairs at the end of the year (Opening Balance is given)
Note : In the above question, opening and closing balances of capital are not given, so first of all we have to prepare statement of affairs at the beginning and at the end of the year. Then only we will be able to get the profit figure of the year.
Statement of Affairs
as on 1st January 2011

Liabilities	Amt. (Rs)	Assets	Amt. (Rs)
Creditors	$5, 000$	Bills receivable	$30, 000$
Bills Payable	$10, 000$	Stock	$5, 000$
Capital (Balancing Figure)	$22, 000$	Cash	$2, 000$
	$37, 000$		$37, 000$

Statement of Affairs
as on 31st December, 2011

Liabilities	Amt. (Rs)	Assets	Amt. (Rs)
Creditors	$30, 000$	Bills Receivable	$50, 000$
Loan	$50, 000$	Stock	$30, 000$
Capital (Balancing Figure)	$20, 000$	Cash	$20, 000$
	$1, 00, 000$		$1, 00, 000$

Statement of Profit or Loss
for the year ended as on 31st December, 2011

Particulars	Amt. (Rs)
Capital at the end of the year i.e., December 2011	$20, 000$
(-) Capital at the beginning of the year i.e., January 2011	$22, 000$
Loss during the year 2011	$2, 000$

Q. Outstanding Expenses is shown on the _______ side of the balance sheet.

Q. X who keeps incomplete records, gives you the following information:

ASSETS AND LIABILITIES
	1st April, 2016	31st March, 2017
	₹	₹
Stock in hand	18,700	20,400
Debtors	12,000	14,000
Creditors	9,000	1,500
Bills Receivable	4,000	5,000
Bills Payable	1,000	200
Furniture	600	600
Building	12,000	12,000
Bank Balance	4,350	3,350
		(Overdraft)

You are also given the following information:
(i) A provision of ₹ 1,450 is required for bad and doubtful debts.
(ii) Depreciation @ 5% is to be written off on Building and furniture.
(iii) Wages outstanding ₹ 3,000; salaries outstanding ₹ 1,200.
(iv) Insurance has been prepaid to the extent of ₹ 250.
(v) Legal Expenses outstanding ₹ 700.
(vi) Drawings of Mr. X during the year were ₹ 7,520.
Prepare a statement of Profit as on 31st March, 2017, and a final statement of affairs as at that date.

Ascertain the appropriate missing figure by preparing Bills Payable Account from the following information:
Bills Payable as on March 31, 2017 Rs. 4,000,
Bills discharged Rs. 37,200,
Bills payable as on March 31, 2018 Rs. 800.

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Outstanding electricity bill Rs. 800 is shown on the ___ side of statement of the affairs.

The correct option is A LiabilitiesOutstanding electricity bill Rs. 800 is shown on the liabilities side of the statement of affairs.

The correct option is A Liabilities
Outstanding electricity bill Rs. 800 is shown on the liabilities side of the statement of affairs.