Q12
Q12. On 1st April, 2008, X started a business with Rs. 40,000 as his capital. On 31st March, 2009, his position was as follows :
| Particulars | Amount |
| Creditors Bills Payable Bank Debtors Stock Plant Furniture |
30,000 10,000 10,000 50,000 40,000 68,000 12,000 |
During the year 2008-09 , X drew Rs. 24,000. On 1st October, 2008, he introduced further capital amounting to Rs.30,000. You are required to ascertain Profit or Loss made by him during the year 2008-09.
Adjustments :
(a) Plant is to be depreciated at 10%
(b) A provision of 5% is to be made against debtors.
Also prepare the Statement of Affairs as on 31st March, 2009.
Dear Student,
Regards
| Statement of Affairs as on … |
|||
| Liabilities | Amount (Rs) |
Assets | Amount (Rs) |
| Creditors | 30,000 | Bank balances | 10,000 |
| Bills Payable | 10,000 | Debtors(50,000-2,500) | 47,500 |
| Capital (Balancing Figure) | 1,30,700 | Plant (68,000-6,800) | 61,200 |
| Stock | 40,000 | ||
| Furniture | 12,000 | ||
| 1,70,700 | 1,70,700 | ||
| Statement of Profit or Loss for the year ended … |
||
| Particulars | Amount (Rs) |
|
| Capital at the end of the year | 1,30,700 | |
| Add: Drawings made during the year | 24,000 | |
| Less: Additional capital introduced during the year | 30,000 | |
| Adjusted capital at the end of the year | 1,24,700 | |
| Less: Capital in the beginning of the year | 40,000 | |
| Net Profit | 84,700 | |
Regards