Q.A trader's Statement of Affairs as on 1st April 2024 showed: Cash ₹6,200; Stock ₹21,000; Debtors ₹16,500; Furniture ₹14,000; Creditors ₹15,000. As on 31st March 2025, it showed: Cash ₹8,900; Stock ₹25,500; Debtors ₹19,000; Furniture ₹14,000 (no depreciation yet provided); Creditors ₹16,800. During the year the trader introduced additional capital of ₹3,000 and withdrew ₹9,000 (including goods worth ₹1,800 taken for personal use). Furniture is to be depreciated at 10% per annum on the closing balance. Ascertain the Net Profit for the year.

Find capital at both dates, compute profit before further adjustments, then deduct depreciation on furniture since it is not yet reflected in the closing figure.

Capital at the beginning (1st April 2024):

Assets = 6,200 + 21,000 + 16,500 + 14,000 = ₹57,700.

Liabilities = Creditors ₹15,000.

Capital = 57,700 − 15,000 = ₹42,700.

Capital at the end (31st March 2025, before charging depreciation):

Assets = 8,900 + 25,500 + 19,000 + 14,000 = ₹67,400.

Liabilities = Creditors ₹16,800.

Capital = 67,400 − 16,800 = ₹50,600.

Statement of Profit for the year ended 31st March 2025

Students sometimes skip the depreciation adjustment entirely when the question does not explicitly say "after depreciation" against the closing furniture figure — always read whether an asset's closing value already refle …