Question

Following is the position statement of Md Irfan (who maintains his accounts in incomplete system) as on 31-03-2019 and 31-03-2020.

Particulars	31-03-2019	31-03-2020
	Amount in Rs.	Amount in Rs.
Cash	20,000	18,000
Sundry Debtors	78,000	90,000
Stock	68,000	64,000
Machinery	1,40,000	1,30,000
Sundry Creditors	29,000	29,000
Bills Payable	5,000	10,000

During 2019-20, he introduced Rs. 15,000 as new capital and withdrew Rs. 4,000 per month for his personal use. Ascertain his profit for the year ending 31-03-2020.

Answer 1

Statement of Affiairs (as on 31-.03-19)
LIABILITIES	Amount	ASSETS	Amount
Sundry Creditors	29,000	Cash	20,000
Bills Payable	5,000	Sundry Debtors	78,000
Opening Capital (Bal. Figure)	2,72,000	Stock	68,000
		Machinery	1,40,000
	3,06,000		3,06,000

 

Statement of Affiairs (as on 31-.03-19)
LIABILITIES	Amount	ASSETS	Amount
Sundry Creditors	29,000	Cash	18,000
Bills Payable	10,000	Sundry Debtors	90,000
Opening Capital (Bal. Figure)	2,63,000	Stock	64,000
		Machinery	1,30,000
	3,02,000		3,02,00

 

Statement of Profit and Loss As on 31-03-2020
Particulars	Amount
Closing Capital	2,63,000
add: Drawings (4,000 x 12)	48,000
less: Additional Capital	15,000
less: Opening Capital	2,72,000
Profit Earned During The Year	24,000