A commenced business on 1st April, 2018 with a capital of ? 10,000. He immediately borrowed Furniture and Fixtures for ? 2,000. On 1st October, 2018, he borrowed ? 5,000 from his ie @9% p.a. (interest not yet paid) and introduced a further capital of his own amountina to ? 1.500 4 drew @? 300 per month at the end of each month for household expenses On 31st March, 2019 his position was as follows: Cash in Hand 7 2,800; Sundry Debtors ? 4,800; Stock ? 6,800; Bills Receivable ? 1,600- Sundry Creditors 500 and owing for Rent 150. Furniture and Fixtures to be depreciated by 10%. Ascertain the profit or loss made by A during 2018-19
Answer this question
×Browse free questions and answers by Chapters
- 1 Introduction to Accounting
- 2 Bank Reconciliation Statement
- 3 Financial Statements I
- 4 Application of Computers in Accounting
- 5 Basic Accounting Terms
- 6 Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards (IFRS)
- 7 Bases of Accounting
- 8 Accounting Equation
- 9 Accounting Procedures - Rules of Debit and Credit
- 10 Origin of Transactions - Source Documents and Preparation of Vouchers
- 11 Journal
- 12 Ledger
- 13 Special Purpose Books I - Cash Book
- 14 Special Purpose Books II - Other Books
- 15 Trial Balance
- 16 Depreciation
- 17 Provisions and Reserves
- 18 Accounting for Bills of Exchange
- 19 Rectification of Errors
- 20 Financial Statements of Sole Proprietorship
- 21 Adjustments in Preparation of Financial Statements
- 22 Accounts from Incomplete Records - Single Entry System