Question

Mr. Ashok does not keep his books properly. Following information is available from his books.

	April. 01, 2016	March. 31, 2017
	Rs	Rs
Sundry creditors	45,000	93,000
Loan from wife	66,000	57,000
Sundry debtors	22,500	–
Land and Building	89,600	90,000
Cash in hand	7,500	8,700
Bank overdraft	25,000	–
Furniture	1,300	1,300
Stock	34,000	25,000

During the year Mr. Ashok sold his private car for Rs 50,000 and invested this amount into the business. He withdrew from the business Rs 1,500 per month upto October 31, 2016 and thereafter Rs 4,500 per month as drawings. You are required to prepare the statement of profit or loss and statement of affair as on March 31, 2017.

Answer 1

Books of Mr. Ashok Statement of Affairs as on April 01, 2016
Liabilities	Amount Rs	Assets	Amount Rs
Sundry Creditors	45,000	Sundry Debtors	22,500
Loan from Wife	66,000	Land and Building	89,600
Bank Overdraft	25,000	Cash in Hand	7,500
Capital (Balancing figure)	18,900	Furniture	1,300
		Stock	34,000
	1,54,900		1,54,900

 

Statement of Affairs as on March 31, 2017
Liabilities	Amount Rs	Assets	Amount Rs
Sundry Creditors	93,000	Land and Building	90,000
Loan from Wife	57,000	Cash in Hand	8,700
		Furniture	1,300
		Stock	25,000
		Capital (Balancing figure)	25,000
	1,50,000		1,50,000

 

Statement of Profit and Loss
Particulars	Amount Rs
Capital on March 31, 2017	(25,000)
Add: Drawings (Rs 1,500 × 7 months) + (4,500 × 5 months)	33,000
Less: Capital on April 01, 2016	(18,900)
Less: Additional capital introduced (sale of car)	(50,000)
Loss during the year 2017	(60,900)

Note:

As per the solution, the loss incurred during the year 2011 is Rs 60,900; while the answer given in the book shows Rs 57,900.