On 1st April, 2017, X started a business with Rs. 40,000 as his capital. On 31st March, 2018, his position was as follows:
During the year 2017-18, X drew Rs. 24,000. On 1st October, 2017, he introduced further capital amounting to Rs. 30,000. You are required to ascertain profit on loss made by him during the year 2017-18.
Adjustments:
(a) Plant is to be depreciated at 10%.
(b) A provision of 5% is to be made against debtors, Also prepare the Statement of Affairs as on 31st March, 2018.
