Mr. Gopal maintains his books on single entry method he gives the following information.
| Particulars | Amount |
|---|---|
| Capital on 01.04.2022 | ₹ 38,000 |
| Capital on 31.03.2023 | ₹ 44,000 |
| Drawings during the year | ₹ 14,000 |
| Additional Capital introduced during the year | ₹ 8,000 |
You are required to calculate profit or loss.
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Start your 14-day free trial to unlock the full solution →Under the net-worth method, profit = adjusted closing capital − opening capital, where drawings are added back and additional capital is deducted. Here 44,000 + 14,000 − 8,000 − 38,000 = ₹12,000 profit.
This is a standard AP Inter 2nd-year (Commerce) single-entry / incomplete-records question, following the NCERT/CBSE-aligned commerce method.
In the single entry system no full ledger is kept, so profit is estimated by comparing the owner's capital at two dates. Drawings reduce closing capital even though they are not a loss, so they are added back; additional capital increases closing capital though it is not profit, so it is deducted.
Statement of Profit or Loss (Net-Worth Method)
| Particulars | Amount (₹) |
| --- | --- | …
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