Gopal keeps incomplete records. On 1st April, 2022, his position was as follows: Bank Overdraft ₹ 7,500

Gopal keeps incomplete records. On 1st April, 2022, his position was as follows:

Liabilities	₹	Assets	₹
Bank Overdraft	7,500	Cash	6,400
Sundry Creditors	15,000	Stock	52,000
Capital	1,64,500	Sundry Debtors	28,000
		Fixed Assets	1,00,000
		Prepaid Expenses	600
	1,87,000		1,87,000

His position on 31st March, 2023 was as follows: Cash in hand ₹ 3,000; Cash at Bank ₹ 5,000; Stock ₹ 44,000; Debtors ₹ 21,000; Fixed Assets ₹ 80,000; Creditors ₹ 22,000. You are informed that Gopal has taken stock worth ₹ 4,500 for his private use and that he has been regularly transferring ₹ 2,000 per month from his business banking account by way of drawings. Out of his drawings, he spent ₹ 15,000 for purchasing a Scooter for the business on 1st October, 2022. You are requested to find out his profit or loss and to prepare the Statement of Affairs after considering the following: (1) Depreciate Fixed Assets and Scooter by 10% p.a. (2) Write off Bad Debts ₹ 1,000 and provide 5% for doubtful debts on Sundry Debtors. (3) Commission earned but not received by him was ₹ 2,500. [Ans. Closing Capital ₹ 1,46,000; Net Loss ₹ 13,250 and Total of Final Statement of Affairs ₹ 1,59,750.] Solution:-