Question

Kumaran, a trader, does not keep proper boods of account. However, he furnishes you the following particulars:
`{:(,"31st March, 2018 (Rs.)"," 31st March, 2019 (Rs.)"),("Cash at Bank"," 4,500"," 3,000"),("Cash in Hand"," 300"," 4,000"),("Stock-in-Trade"," 40,000"," 45,000"),("Debtors"," 12,000"," 20,000"),("Office Equipment"," 5,000"," 5,000"),("Sundry Creditors"," 30,000"," 20,000"),("Furniture"," 4,000"," 4,000"):}`
During the year Kumaran introduced Rs. 6,000 as further capital and withdrew Rs. 4,000 as drawings. Write off Depreciation on furniture at `10%` andon office equipment at `5%`. Prepare a statement showing the Profit or Loss made by him for the year ended 31st March, 2019.

Answer 1

Alternatively, if profit before certain adjustments (e.g., Depreciation on Fixed Assets, Provision for Doubtful Debts, etc.) is also calculated in addition to net profit, the above solution will be as follows:
The Statement of Affairs as at 31st March, 2019 will be same as given above. But the Statement of of Affairs (before Adjustments) will be prepared as follows: