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Introduction to Integers

Ravi, who kee...

Question

Ravi, who keeps his books on Single Entry System, had his capital on 31st March, 2016 ₹ 20,000 and on 1st April, 2015 was ₹ 16,700. He further informs that during the year, he withdrew for his personal expenses ₹ 9,400. He also sold his personal investment of ₹ 10,000 at 15% premium and brought that money into the business.
Prepare a statement of Profit or Loss.

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Solution

Statement of Profit/Loss

Particulars

Amount

(₹)

Closing Capital

20,000

Less: Opening Capital

(16,700)

Less: Additional Capital

(11,500)

Add: Drawings

9,400

Profit for the Year

1,200

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