Rupesh started a firm on1st April, 2015 with a capital of Rs.10,000. On 1st July 2016 he borrowed from his son Mr. Rohit a sum of Rs. 4000 @ 9% p.a. (interest not yet paid) for business and introduces a further capital of his own amounted to Rs. 1500. On 31st March, 2016 his position was as follows

Cash Rs.600, stock Rs.9,400, debtors Rs.7000 and creditors Rs.6000. Ascertain his profit or loss taking into account Rs.2000 for his drawings during the year.

Asked by Topperlearning User | 4th Jul, 2016, 08:16: AM

Expert Answer:

Statement of Affairs    as at 31st March 2016

Liabilities

Rs. 

Assets

Rs. 

Creditors

6,000

Cash

600

Mr. Rohit’s Loan 4000

4,270

Stock

9,400

Interest on loan  270

 

Debtors

7,000

Capital (Balancing Figure)

6,730

 

 

 

17,000

 

17,000

 

 

Statement of Profit or Loss

for the year ended 31st March 2016

Particulars

Rs. 

Capital at the end

6,730

Less: Capital introduced during the year

 1,500

 

5,230

Add: Drawings

2,000

Adjusted Capital at the end

7,230

Less: Capital in the beginning

10,000

Net Loss for the year

2,770

 

 

Answered by  | 4th Jul, 2016, 10:16: AM