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Business Studies

Important of Financial Planning

State True or...

Question

State True or False.

Drawings made during the year decreases the profit under single entry system.

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Solution

False

Explanation: Under single-entry system, drawings made during the year are added to the capital at the end of the year in order to arrive at the profit figure. Hence, drawings made during the year increase the profit under this system.

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Q. Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2018–19.
Opening Capital − ₹ 1,30,000 Drawings during the year ₹ 50,000
Closing Capital − ₹ 2,00,000 Profit made during the year ₹ 1,00,000

Q. Vikas maintains his books of account on Single Entry System. He provides following information from his books. Find out additional capital introduced in the business during the year 2017–18.
Opening Capital–₹ 1,30,000 Drawing during the year ₹ 50,000
Closing Capital–₹ 2,00,000 Profit made during the year ₹ 1,00,000

Q. Mohan maintains books on Single Entry System. He gives you the following information:

	₹
Capital on 1st April, 2017	15,200
Capital on 31st March, 2018	16,900
Drawings made during the year	4,800
Capital introduced on 1st August, 2017	2,000

You are required to calculat the Profit or Loss made by Mohan.

Q. Under single entry system "profit" = closing capital - _________________.

Q. Mohan maintains books on Single Entry System. He gives you the following information:

	₹
Capital on 1st April, 2018	15,200
Capital on 31st March, 2019	16,900
Drawings made during the year	4,800
Capital introduced on 1st August, 2018	2,000

You are required to calculate the Profit or Loss made by Mohan.

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