Raghav, who keeps his books on single entry system, tell you that his capital on 31st March, 2016 is Rs 3,74,000 and his capital on 1st April, 2015 was 3,84,000. He further informs you that during the year, he withdrew for his household purpose Rs 1,68,400. He sold his personal investment of Rs 40,000 a $2 %$ premium and brought that money into the business.

You are required to prepare statement of profit or loss.

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Solution

$Statement Showing Profit or Loss for year ended 31st March, 2016 \begin{matrix} Particulars & Amt(Rs) Capital at the End & 3, 74, 000 (+)Drawings Made During the year & 1, 68, 400 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 42, 400 (-)Capital Introduced During the Year (102 / 100 \times Rs 40, 000) & 40, 800 Adjusted Capital at the End & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 01, 600 (-) Capital in the Beginning & 3, 84, 000 - -------- - Net Profit for the Year & 1, 17, 600 - -------- - - -------- - \end{matrix}$

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