A commenced business on 1st April, 2017 with a capital of ₹ 10,000. He immediately bought Furniture and Fixtures for ₹ 2,000. On 1st October, 2017, he borrowed ₹ 5,000 from his wife 9% p.a. (interest not yet paid) and introduced a further capital of his own amounting to ₹ 1,500. A drew ₹ 300 per month at the end of each month for household expenses. On 31st March, 2018 his position was as follows:Cash in Hand ₹ 2,800; Sundry Debtors ₹ 4,800; Stock ₹ 6,800; Bills Receivable ₹ 1,600; Sundry Creditors ₹ 500 and owing for Rent ₹ 150. Furniture and Fixtures to be depreciated by 10%. Ascertain the profit or loss made by A during 2017–18.

A commenced business on 1st April, 2017 with a capital of ₹ 10,000.

1.	A commenced business on 1st April, 2017 with a capital of ₹ 10,000. He immediately bought Furniture and Fixtures for ₹ 2,000. On 1st October, 2017, he borrowed ₹ 5,000 from his wife 9% p.a. (interest not yet paid) and introduced a further capital of his own amounting to ₹ 1,500. A drew ₹ 300 per month at the end of each month for household expenses. On 31st March, 2018 his position was as follows:Cash in Hand ₹ 2,800; Sundry Debtors ₹ 4,800; Stock ₹ 6,800; Bills Receivable ₹ 1,600; Sundry Creditors ₹ 500 and owing for Rent ₹ 150. Furniture and Fixtures to be depreciated by 10%. Ascertain the profit or loss made by A during 2017–18.
Answer» A commenced business on 1st April, 2017 with a capital of ₹ 10,000. He immediately bought Furniture and Fixtures for ₹ 2,000. On 1st October, 2017, he borrowed ₹ 5,000 from his wife 9% p.a. (interest not yet paid) and introduced a further capital of his own amounting to ₹ 1,500. A drew ₹ 300 per month at the end of each month for household expenses. On 31st March, 2018 his position was as follows: Cash in Hand ₹ 2,800; Sundry Debtors ₹ 4,800; Stock ₹ 6,800; Bills Receivable ₹ 1,600; Sundry Creditors ₹ 500 and owing for Rent ₹ 150. Furniture and Fixtures to be depreciated by 10%. Ascertain the profit or loss made by A during 2017–18.