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Kumaran, a trader, does not keep proper boods of account. However, he furnishes you the following particulars: {:(,"31st March, 2018 (Rs.)","31st March, 2019 (Rs.)"),("Cash at Bank","4,500","3,000"),("Cash in Hand","300","4,000"),("Stock-in-Trade","40,000","45,000"),("Debtors","12,000","20,000"),("Office Equipment","5,000","5,000"),("Sundry Creditors","30,000","20,000"),("Furniture","4,000","4,000"):} During the year Kumaran introduced Rs. 6,000 as further capital and withdrew Rs. 4,000 as drawings. Write off Depreciation on furniture at 10% andon office equipment at 5%. Prepare a statement showing the Profit or Loss made by him for the year ended 31st March, 2019. |
Answer» SOLUTION :  ALTERNATIVELY, if PROFIT before CERTAIN adjustments (e.g., Depreciation on Fixed Assets, Provision for Doubtful Debts, etc.) is also calculated in addition to net profit, the above solution will be as follows: The Statement of Affairs as at 31st March, 2019 will be same as given above. But the Statement of of Affairs (before Adjustments) will be prepared as follows:  
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