Question

Question

Answer 1

Statement of Affairs as on April 01, 2005
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, 2006
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, 2006
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