Mahesh commenced business on 1st April 2022 with a capital of ₹ 10,000. He immediately bought furniture and fixtures for ₹ 2,000

Mahesh commenced business on 1st April 2022 with a capital of ₹ 10,000. He immediately bought furniture and fixtures for ₹ 2,000. On 1st October 2022, he borrowed ₹ 5,000 from his wife @ 9% p.a. (interest not yet paid) and also introduced further capital of his own of ₹ 1,500. He drew @ ₹ 300 per month at the end of each month for household expenses. On 31st March 2023, his position was as follows:

Cash in Hand ₹ 2,800; Sundry Debtors ₹ 6,400; Stock ₹ 6,800; Sundry Creditors ₹ 500 and owing for Rent ₹ 150.

Furniture and Fixtures to be depreciated by 10%.

Ascertain the profit earned or loss incurred by Mahesh during the year ended 31st March 2023.

[Capital at the end – ₹ 11,925; Profit – ₹ 4,025.]