Question

Radhey, who keeps his books on Single Entry System, gives you the following information:

$\begin{array}{ccc}\text{Particulars}& \mathrm{1.1.2011}& \mathrm{31.12.2011}\\ & \left(Rs\right)& \left(Rs\right)\\ \text{Assets:}& & \\ \text{Stock-in-Trade}& 18,700& 23,400\\ \text{Sundry Debtors}& 12,000& 14,000\\ \text{Bills receivalbe}& 4,000& 5,000\\ \text{Furniture}& 600& 600\\ \text{Building}& 12,000& 12,000\\ \text{Bank Balance}& 4,350& -\\ \text{Liabilities:}& & \\ \text{Sudry Creditors}& 9,000& 1,500\\ \text{Payable}& 1,000& 200\\ \text{Bank Overdraft}& -& 3,350\end{array}$

You are required to calculate Profit by preparing statement of profit or Loss.

Answer 1

Statement of Profit and Loss

$\begin{array}{cc}\text{Particulars}& \text{Amount(Rs)}\\ \text{Capital at the end of the year}& 49,950\\ \text{Add: Drawings made during the year}& -\\ \text{Less: Additional capital introduced}& -\\ \text{Adjusted Capital}& 49,950\\ \text{Less: Capital in the beginning of the year}& 41,650\\ \text{Profit earned during the year}& 8,300\end{array}$

Balance Sheet as on 1-1-2011

$\begin{array}{cccc}\text{Liabilities}& \text{Amount(')}& \text{Assets}& \text{Amount (Rs)}\\ \text{Sundry Crditors}& 9,000& \text{Stock-in-Trade}& 18,700\\ \text{Bills Payable}& 1,000& \text{Sudry Debtors}& 12,000\\ \text{Capital (balancing figure)}& 41,650& \text{Bills receivable}& 4,000\\ & & \text{Furniture}& 600\\ & & \text{Building}& 12,000\\ & & \text{Bank Balance}& 4,350\\ & \underset{–}{\overline{51,650}}& & \underset{–}{\overline{51,650}}\end{array}$

Balance Sheet as on 31-12-2011

$\begin{array}{cccc}\text{Liabilities}& \text{Amount(Rs)}& \text{Assets}& \text{Amount (Rs)}\\ \text{Sundry Crditors}& 1,500& \text{Stock-in-Trade}& 23,400\\ \text{Bills Payable}& 200& \text{Sudry Debtors}& 14,000\\ \text{Bank Overdraft}& 3,350& \text{Bills receivable}& 5,000\\ \text{Capital (balancing figure)}& 49,950& \text{Furniture}& 600\\ & & \text{Building}& 12,000\\ & \underset{–}{\overline{55,000}}& & \underset{–}{\overline{55,000}}\end{array}$