1.

On 1st April, 2018, X started a business with ₹ 40,000 as his capital. On 31st March, 2019, his position was as follows: (₹) Creditors 30,000 Bills Payable 10,000 Bank 10,000 Debtors 50,000 Stock 40,000 Plant 68,000 Furniture 12,000 During the year 2018–19, X drew ₹ 24,000. On 1st October, 2018, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit or loss made by him during the year 2018–19.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, 2019.

Answer» On 1st April, 2018, X started a business with ₹ 40,000 as his capital. On 31st March, 2019, his position was as follows:


(₹)
Creditors 30,000
Bills Payable
10,000
Bank
10,000
Debtors
50,000
Stock
40,000
Plant 68,000
Furniture
12,000



During the year 2018–19, X drew ₹ 24,000. On 1st October, 2018, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit or loss made by him during the year 2018–19.

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, 2019.


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