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On April 1st, 2016, X started a business with ₹ 40,000 as his capital. On March 31st, 2017, 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 2016-17 X drew ₹ 24,000. On 1st October 2016, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit or loss made by him during the year 2016-17.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 March 31st 2017. |
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Answer» On April 1st, 2016, X started a business with ₹ 40,000 as his capital. On March 31st, 2017, his position was as follows:
During the year 2016-17 X drew ₹ 24,000. On 1st October 2016, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit or loss made by him during the year 2016-17. 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 March 31st 2017.
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