On 1st April, 2022, Shiv started a business with ₹ 40,000 as his capital. On 31st March, 2023, his position was as follows

On 1st April, 2022, Shiv started a business with ₹ 40,000 as his capital. On 31st March, 2023, 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 2022 – 23, Shiv drew ₹ 24,000. On 1st October, 2022, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit earned or loss incurred by him during the year 2022 – 23.

Additional information:

(a) Plant is to be depreciated by 10%.

(b) A provision of 5% is to be made against debtors.

Also prepare the statement of Affairs as on 31st March, 2023.