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Question No 18 Chapter No 19
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18. On 1st April, 2017, X started a business with 40,000 as his capital. On 31st March, 2018, his position was as follows:
| Particulars | Last Year |
| Creditors | 30,000 |
| Bills Payable | 10,000 |
| Bank | 10,000 |
| Debtors | 50,000 |
| Stock | 40,000 |
| Plant | 68,000 |
| Furniture | 12,000 |
During the year 2017–18, X drew 24,000. On 1st October, 2017, he introduced further capital amounting to 30,000. You are required to ascertain profit on loss made by him during the year 2017–18. Adjustments: a. Plant is to be depreciated at 10%.
b. A provision of 5% is to be made against debtors, Also prepare the Statement of Affairs as on 31st March, 2018.
The solution of Question No 18 Chapter No 19:-
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| Statement of Affairs for the year ended March 31, 2018 | |||||
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 30,000 | Debtors | 50,000 | ||
| Bills Payable | 10,000 | Less: 5% Provision for Doubtful Debts | 2, 500 | 47,500 | |
| Plant | 68,000 | ||||
| Less: 10% Depreciation | 6, 800 | 61,200 | |||
| Furniture | 12,000 | ||||
| Bank | 12,350 | ||||
| Capital | 1,30,700 | Stock | 40,000 | ||
| 1,70,700 | 1,70,700 | ||||
| Statement of Profit or Loss for the year and March 31, 2018 | ||
| Particular | Amount | |
| Capital as on March 31, 2018 | 1,30,700 | |
| Add: Drawings Rs100 ×52 | 24,000 | |
| 1,54,700 | ||
| Less: Additional Capital Introduced | 30, 000 | |
| Adjusted Capital as on March 31, 2018 | 1,24,700 | |
| Less: Capital of the Previous Year | 40, 000 | |
| Profit made during the year 2017-18 | 84,700 | |
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Also, Check out the solved question of previous Chapters: –
- Chapter No. 1 – Introduction to Accounting
- Chapter No. 2 – Basic Accounting Terms
- Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
- Chapter No. 4 – Bases of Accounting
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
- Chapter No. 11 – Special Purpose Books II – Other Books
- Chapter No. 12 – Bank Reconciliation Statement
- Chapter No. 13 – Trial Balance
- Chapter No. 14 – Depreciation
- Chapter No. 15 – Provisions and Reserves
- Chapter No. 16 – Accounting for Bills of Exchange
- Chapter No. 17 – Rectification of Errors
- Chapter No. 18 – Financial Statements of Sole Proprietorship
- Chapter No. 19 – Adjustments in preparation of Financial Statements
- Chapter No. 20 – Accounts from incomplete Records – Single Entry System
- Chapter No. 21 – Computers in Accounting
- Chapter No. 22 – Accounting Software – Tally
- Chapter No. 5 – Accounting Equation
- Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
- Goods and Services Tax(GST)
- Chapter No. 8 – Journal
- Chapter No. 9 – Ledger
- Chapter No. 10 – Special Purpose Books I – Cash Book
Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication
T.S. Grewal’s Double Entry Book Keeping