Question

Raghuveer keeps incomplete records. His position was as follows:

			31st March, 2016 (₹)	31st March, 2017 (₹)
Cash in Hand			2,000	3,000
Cash at Bank			30,000	20,000
Stock-in-Trade			2,00,000	1,90,000
Sundry Debtors			85,000	1,40,000
Plant & Machinery			1,50,000	2,70,000
Fixtures and Fittings			18,000	15,000
Sundry Creditors			2,20,000	2,90,000

During the year, Raghuveer introduced ₹ 50,000 as further capital in the business and withdrew ₹ 7,500 per month. From the above information, show Profit or Loss for the year ended 31st March, 2017.

Answer 1

Statement of Affairs as on March 31, 2016
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Sundry Creditors	2,20,000	Cash in Hand	2,000
Capital (Balancing Figure)	2,65,000	Cash at Bank	30,000
		Stock-in-Trade	2,00,000
		Sundry Debtors	85,000
		Plant & Machinery	1,50,000
		Fixtures & Fittings	18,000
	4,85,000		4,85,000

Statement of Affairs as on March 31, 2017
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Sundry Creditors	2,90,000	Cash in Hand	3,000
Capital (Balancing Figure)	3,48,000	Cash at Bank	20,000
		Stock-in-Trade	1,90,000
		Sundry Debtors	1,40,000
		Plant & Machinery	2,70,000
		Fixtures & Fittings	15,000
	6,38,000		6,38,000

Statement of Profit or Loss for the year ended March 31, 2017
Particulars		Amount (Rs)
Capital at the end of the year		3,48,000
	Add: Drawings made during the year (7,500 × 12)	90,000
	Less: Additional capital introduced during the year	50,000
Adjusted capital at the end of the year		3,88,000
	Less: Capital in the beginning of the year	2,65,000
Profit made during the year		1,23,000