X, a retailer, has not kept proper books of account but it has been possible to obtain the following details:
X, a retailer, has not kept proper books of account but it has been possible to obtain the following details:
|  | Previous Year (₹) | Current Year (₹) |
|
Trade Creditors Loan from Naresh Stock Cash in Hand Shop Fittings Trade Debtors Bank Balance |
6,270 5,000 12,350 570 7,250 5,280 3,990 |
5,890 5,000 11,980 650 7,800 4,560 4,130 |
Calculate profit/loss for the current year and draft statement of Affairs at the end of the year after noting that:
(a) Shop Fittings are to be depreciated by ₹ 780.
(b) X 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.
Anurag Pathak Changed status to publish October 28, 2023
