Rupesh started a firm on1^st April, 2015 with a capital of Rs.10,000. On 1^st 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 31^st 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.

Statement of Affairs    as at 31^st 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 31^st 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