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Question
Ananth does not keep his books under double entry system. Find the profit or loss made by him for the year ending 31st March, 2019.
| Particulars | 31.3.2018 ₹ |
31.3.2019 ₹ |
| Cash at Bank | 5,000 (Dr.) | 60,000 (Cr.) |
| Cash in hand | 3,000 | 4,500 |
| Stock of goods | 35,000 | 45,000 |
| Sundry Debtors | 1,00,000 | 90,000 |
| Plant and Machinery | 80,000 | 80,000 |
| Land and Buildings | 1,40,000 | 1,40,000 |
| Sundry Creditors | 1,70,000 | 1,30,000 |
Ananth had withdrawn ₹ 60,000 for his personal use. He had introduced ₹ 17,000 as capital for the expansion of his business. Create a provision of 5% on debtors. Plant and machinery is to be depreciated at 10%.
Solution
Statement of Affairs
| Liabilities | 31.3.2018 | 31.3.2019 | Assets | 31.3.2018 | 31.3.2019 |
| Cash at Bank | 60,000 | Cash at Bank | 5,000 | ||
| Sundry Creditors | 1,70,000 | 1,30,000 | Cash in hand | 3,000 | 4,500 |
| Capital | 1,93,000 | 1,57,000 | Stock of goods | 35,000 | 45,000 |
| Sundry Debtors | 1,00,000 | 85,500 | |||
| Plant and Machinery | 80,000 | 72,000 | |||
| Land and Buildings | 1,40,000 | 1,40,000 | |||
| 3,63,000 | 3,47,000 | 3,63,000 | 3,47,000 |
Statement of profit or Loss
| Particulars | ₹ |
| Closing capital | 1,57,000 |
| (+) Drawings | 60,000 |
| 2,17,000 | |
| (−) Additional capital | 17,000 |
| Adjusted capital | 2,00,000 |
| (−) Opening capital | 1,93,000 |
| Profit | 7,000 |
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RELATED QUESTIONS
Statement of affairs is a ___________.
Which of the following items relating to bills payable is transferred to the total creditors account?
The amount of credit sales can be computed from _____________.
Opening balance of debtors: ₹ 30,000, cash received: ₹ 1,00,000, credit sales: ₹ 90,000; closing balance of debtors is ______________.
What is a statement of affairs?
Differentiate between statement of affairs and balance sheet.
From the following details, calculate the capital as on 31st December 2018.
| Particulars | ₹ |
| Capital as on 1st January, 2018 | 1,00,000 |
| Goods withdrawn for personal use by the owner | 30,000 |
| Additional capital introduced during the year | 15,000 |
| Profit for the year | 60,000 |
From the following details, calculate the missing figure:
| Particulars | ₹ |
| Capital as on 1st April, 2018 | 40,000 |
| Capital as on 31st March, 2019 | 50,000 |
| Additional capital introduced during the year | 7,000 |
| Profit for the year | 8,000 |
| Drawings during the year | ? |
Which of the following items relating to bills payable is transferred to the total creditors account?
What is the amount of capital of the proprietor, if his assets are ₹ 85,000 and liabilities are ₹ 21,000?
