Question

Ananth does not keep his books under double entry system. Find the profit or loss made by him for the year ending 31^st March, 2019.

Particulars	31.3.2018 ₹	31.3.2019 ₹
Cash at Bank	5,000 (Dr.)	60,000 (Cr.)
Cash in hand	3,000	4,500
Stock of goods	35,000	45,000
Sundry Debtors	1,00,000	90,000
Plant and Machinery	80,000	80,000
Land and Buildings	1,40,000	1,40,000
Sundry Creditors	1,70,000	1,30,000

Ananth had withdrawn ₹ 60,000 for his personal use. He had introduced ₹ 17,000 as capital for the expansion of his business. Create a provision of 5% on debtors. Plant and machinery is to be depreciated at 10%.

Answer 1

Statement of Affairs

Liabilities	31.3.2018	31.3.2019	Assets	31.3.2018	31.3.2019
Cash at Bank		60,000	Cash at Bank	5,000
Sundry Creditors	1,70,000	1,30,000	Cash in hand	3,000	4,500
Capital	1,93,000	1,57,000	Stock of goods	35,000	45,000
			Sundry Debtors	1,00,000	85,500
			Plant and Machinery	80,000	72,000
			Land and Buildings	1,40,000	1,40,000
	3,63,000	3,47,000		3,63,000	3,47,000

Statement of profit or Loss

Particulars	₹
Closing capital	1,57,000
(+) Drawings	60,000
	2,17,000
(−) Additional capital	17,000
Adjusted capital	2,00,000
(−) Opening capital	1,93,000
Profit	7,000