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Q.5 Panwar commenced business on 1st April, 2013, with a capital of Rs. 10,000, which he paid into bank account opened for that purpose. On the same date he bought stock valued at 6,500 and furniture which cost Rs. 2,000. He kept his books on single entry basis. On 31st March, 2014 stock was valued at Rs. 8,300. There were book debts amounting to Rs. 3,400 of which Rs.200 represented debts which were irrecoverable. Creditors amounted to Rs. 3,600 and the cash book showed a balance of Rs. 1.650 but according to pass book, the balance at Panwar's credit was only Rs.1,450, he having giving his son Rs.200 and then omitted to enter in the cash book, Panwar withdrew Rs.1,800 form the business for his private expenses, and in addition, he used Rs.500 worth of goods from his shop. He took Rs. 1,000 as loan from his wife during the year.
You are required to prepare a Statement showing Profit or Loss in the business for the year ending 31st March, 2014.
 

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