Page 6 - Chapter-11.pmd

442 Accountancy

Statement of Profit or Loss for the year ended March 31,2014

Particulars Amount
Rs.
Capital as on March 31, 2014 85,330
Add Drawings during the year 10,000

95,330
Less Additional capital introduced during the year (15,000)
Adjusted capital at end of the year, i.e. March 31,2014 80,330
Less Actual capital at the beginning of year, i.e. April 01, 2013 (50,000)
Profit made during the year 30,330

Illustration 2
Mrs. Vandana runs a small printing firm. She was maintaining only some records,
which she thought, were sufficient to run the business. On April 01, 2013, available
information from her records indicated that she had the following assets and liabilities:
Printing Press Rs. 5,00,000, Buildings Rs. 2,00,000, Stock Rs. 50,000, Cash at bank
Rs. 65,600, Cash in hand Rs. 7,980, Dues from customers Rs. 20,350, Dues to
creditors Rs. 75,340 and Outstanding wages Rs. 5,000. She withdrew Rs. 8,000 every
month for meeting her personal expenses. She had also introduced Rs. 15,000 during
the year as additional capital. On March 31, 2014 her position was as follows :
Press Rs. 5, 25,000, Buildings Rs. 2,00,000, Stock Rs. 55,000, Cash at bank
Rs. 40,380, Cash in hand Rs. 15,340, Dues from customers Rs. 17,210, Dues to
creditors Rs. 65,680.
Calculate the profit made by Mrs. Vandana during the year using statement of
affairs method.

Solution
Books of Mrs. Vandana
Statement of Affairs as on April 1, 2013
and as on March 31,2014

Liabilities Apr. 01, 13 Mar. 31, 14 Assets Apr. 01, 13 Mar.31,14
Rs. Rs. Rs. Rs.
Creditors 75,340 65,680 Printing press 5,00,000 5,25,000
Wages outstanding 5,000 – Buildings 2,00,000 2,00,000
Capital 7,63,590 7,87,250 Debtors 20,350 17,210
(balancing figure) Stock 50,000 55,000
Cash at bank 65,600 40,380
Cash in hand 7,980 15,340
8,43,930 8,52,930 8,43,930 8,52,930

2015-16