Gurman, a retailer, has not maintained proper books of account but it has been possible to obtain the following details:
Gurman, a retailer, has not maintained proper books of account but it has been possible to obtain the following details:
Calculate the net profit for this year and draft the Statement of Affairs at the end of the year after noting that:
(a) Shop Fittings are to be depreciated by ₹ 780.
(b) Gurman has drawn ₹ 100 per week for his own use.
(c) Included in the Trade Debtors is an irrecoverable balance of ₹ 270.
(d) Interest at 5% p.a. is due on the loan from Naresh but has not been paid for the year.
[Net Profit – ₹ 3,960; Total of Statement of Affairs – ₹ 28,070.]
| Last Year (₹) | This Year (₹) | |
| Trade Creditors | 6,270 | 5,890 |
| Loan from Naresh | 5,000 | 5,000 |
| Stock | 12,350 | 11,980 |
| Cash in Hand | 570 | 650 |
| Shop Fittings | 7,250 | 7,800 |
| Trade Debtors | 5,280 | 4,560 |
| Bank Balance | 3,990 | 4,130 |
Anurag Pathak Changed status to publish January 13, 2024
