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Question

Tulsi started business on 1st April, 2016 with a capital of ₹ 4,50,000. On 31st March, 2017 her position was as under:
()
Cash 99,000
Bills Receivable 75,000
Stock 48,000
Land and Building 1,80,000
Furniture 50,000

She owed ₹ 45,000 to her friend Parvati on that date. She withdrew ₹ 8,000 per month for household purposes. Ascertain her profit or loss for the year ended 31st March, 2017.

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Solution

Statement of Affairs
as on March 31, 2017
Liabilities Amount (Rs) Assets Amount (Rs)
Loan from Friend 45,000 Cash 99,000
Capital (Balancing Figure) 4,07,000 Bills Receivable 75,000
Stock 48,000
Land and Building 1,80,000
Furniture 50,000
4,52,000 4,52,000

Statement of Profit or Loss
for the year ended March 31, 2017
Particulars Amount
(Rs)
Capital at the end of the year 4,07,000
Add: Drawings made during the year (8,000 × 12) 96,000
Less: Additional capital introduced during the year -
Adjusted capital at the end of the year 5,03,000
Less: Capital in the beginning of the year 4,50,000
Profit made during the year 53,000

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