Question

On 1^st April 2018 Subha started her business with a capital of ₹ 1,20,000. She did not maintain a proper book of accounts. Following particulars are available from her books as on 31.3.2019.

Particulars	₹	Particulars	₹
Bank overdraft	50,000	Stock-in-trade	1,60,000
Debtors	1,80,000	Creditors	90,000
Bills receivable	70,000	Bills payable	2,40,000
Computer	30,000	Cash in hand	60,000
Machinery	3,00,000

During the year she withdrew ₹ 30,000 for her personal use. She introduced further capital of ₹ 40,000 during the year. Calculate her profit or loss.

Answer 1

Statement of Affairs

Liabilities	₹	Assets	₹
Bank overdraft	50,000	Debtors	1,80,000
Creditors	90,000	Bills receivable	70,000
Bills payable	2,40,000	Computer	30,000
Capital	4,20,000	Machinery	3,00,000
		Stock-in-trade	1,60,000
		Cash in hand	60,000
	8,00,000		8,00,000

Statement of Profit or Loss

Particulars	₹
Closing capital	4,20,000
(+) Drawings	30,000
	4,50,000
(−) Additional capital	40,000
Adjusted capital	4,10,000
(−) Opening capital	1,20,000
Profit	2,90,000