(a) David does not keep proper books of accounts. Following details are given from his records.
| Particulars | 1.4.2023 ₹ | 31.3.2024 ₹ |
|---|---|---|
| Cash | 43,000 | 29,000 |
| Stock of Goods | 1,20,000 | 1,30,000 |
| Sundry Debtors | 84,000 | 1,10,000 |
| Sundry Creditors | 1,05,000 | 1,02,000 |
| Loan | 25,000 | 20,000 |
| Business Premises | 2,50,000 | 2,50,000 |
| Furniture | 33,000 | 45,000 |
During the year he introduced further Capital of ₹ 45,000 and withdrew ₹ 2,500 per month from the business for his personal use. Prepare statement of Profit or Loss with the above information.
OR
(b) Mary does not keep her books under double entry system. From the following details prepare Trading and Profit and Loss account for the year ending 31st March 2023 and a Balance Sheet as on that date.
| Dr | Cash Book | Cr | |
|---|---|---|---|
| Particulars | ₹ | Particulars | ₹ |
| To Balance b/d | 1,20,000 | By Purchases | 1,50,000 |
| To Sales | 3,60,000 | By Creditors | 2,50,000 |
| To Debtors | 3,40,000 | By Wages | 70,000 |
| By Sundry Expenses | 1,27,000 | ||
| By Balance c/d | 2,23,000 | ||
| 8,20,000 | 8,20,000 |
Other information :
| Particulars | 1st April 2022 | 31st March 2023 |
|---|---|---|
| Stock of Goods | 1,10,000 | 1,80,000 |
| Sundry Debtors | 1,30,000 | ? |
| Sundry Creditors | 1,60,000 | 90,000 |
| Furniture and Fittings | 80,000 | 80,000 |
Additional Information :
Credit Purchases ₹ 1,80,000; Credit Sales ₹ 2,90,000; Opening Capital ₹ 2,80,000; Depreciate Furniture and Fittings by 10% p.a.
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Start your 14-day free trial to unlock the full solution →(a) Opening capital ₹4,00,000, closing capital ₹4,42,000; profit = 4,42,000 + 30,000 drawings − 45,000 additional capital − 4,00,000 = ₹27,000. (b) Closing debtors ₹80,000 (from total debtors a/c); GP ₹3,20,000, NP ₹1,85,000; balance sheet ₹5,55,000.
(a) David — Statement of Profit or Loss
Statement of Affairs as on 1.4.2023 (opening)
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Sundry creditors | 1,05,000 | Cash | 43,000 |
| Loan | 25,000 | Stock of goods | 1,20,000 |
| Opening capital (bal. fig.) | 4,00,000 | Sundry debtors | 84,000 |
| Business premises | 2,50,000 | ||
| Furniture | 33,000 | ||
| 5,30,000 | 5,30,000 |
Statement of Affairs as on 31.3.2024 (closing)
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Sundry creditors | 1,02,000 | Cash | 29,000 |
| Loan | 20,000 | Stock of goods | 1,30,000 |
| Closing capital (bal. fig.) | 4,42,000 | Sundry debtors | 1,10,000 |
| Business premises | 2,50,000 | ||
| Furniture | 45,000 | ||
| 5,64,000 | 5,64,000 |
Statement of Profit or Loss for the year ended 31.3.2024
| Particulars | ₹ |
|---|---|
| Closing capital | 4,42,000 |
| Add: Drawings (2,500 × 12) | 30,000 |
| 4,72,000 | |
| Less: Additional capital introduced | 45,000 |
| Adjusted closing capital | 4,27,000 |
| Less: Opening capital | 4,00,000 |
| Profit for the year | 27,000 |
(b) Mary — Trading, P&L and Balance Sheet
Working 1 – Closing debtors (Total Debtors A/c)
| Dr | ₹ | Cr | ₹ |
|---|---|---|---|
| To Balance b/d | 1,30,000 | By Cash (received) | 3,40,000 |
| To Credit sales | 2,90,000 | By Balance c/d (bal. fig.) | 80,000 |
| 4,20,000 | 4,20,000 |
Working 2 – Totals: Purchases = 1,50,000 (cash) + 1,80,000 (credit) = ₹3,30,000; Sales = 3,60,000 (cash) + 2,90,000 (credit) = ₹6,50,000.
Trading and Profit & Loss A/c for the year ended 31.3.2023
| Dr | ₹ | Cr | ₹ |
|---|---|---|---|
| To Opening stock | 1,10,000 | By Sales | 6,50,000 |
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