Mr sharad keeps his books as per incomplete records his business position for the year ended 31-3-16 is under :-
PARTICULARS 31-03-16 31-03-17
Cash 7000 6500
Motor car 40000 40000
Debtors 31000 42000
Creditors 18000 13000
Bank 6000(CR) 10000
Stock 12000 30000
Mr.sharad withdrew rs 900 per month for domeatic use and brought further capital of rs 12000 during the year.It was decided that-
1.motor car to be depreciated by 10%
2.record outstanding insurance of rs 2000
3.create provision for doughtful debt at 5%
Compute profit earned by the firm during the year.
Under this question it is not mentioned that the bank balance in ending year is cr. Or dr. ,so i assumed that it is dr. Balance
