On April 1st, 2022, X started a business with ₹ 40,000 as his capital. On March 31st, 2023, his position was as follows:
On April 1st, 2022, X started a business with ₹ 40,000 as his capital. On March 31st, 2023, his position was as follows:
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 March 31st 2023.
[Ans. Closing Capital ₹ 1,40,000; Net Profit ₹ 84,700; Total of Final Statement of Affairs ₹ 1,70,700.]
| ₹ | |
| Creditors | 30,000 |
| Bills Payable | 10,000 |
| Bank | 10,000 |
| Debtors | 50,000 |
| Stock | 40,000 |
| Plant | 68,000 |
| Furniture | 12,000 |
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