On 1st April, 2022, X started a business with ₹ 40,000 as his capital. On 31st March, 2023, his position was as follows:
On 1st April, 2022, X started a business with ₹ 40,000 as his capital. On 31st March, 2023, his position was as follows:
| Creditors | 40,000 |
| Bank | 10,000 |
| Debtors | 50,000 |
| Stock | 40,000 |
| Plant | 68,000 |
| Furniture | 12,000 |
During the year 2022-23, X drew ₹ 24,000. On 1st october, 2022, he introduced further capital amounting to ₹ 30,000. You are required to ascertain profit or loss made by him during the year 2022-23.
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 31st March, 2023.
[Profit – ₹ 84,700; Adjusted Capital (31st March 2023) – ₹ 1,30,700; Total of Statement of Affairs as on 31st March, 2023 – ₹ 1,70,700.]
Anurag Pathak Changed status to publish January 13, 2024
