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Ashok keeps incomplete records. The position of his business on 1st April, 2016 was as follows:Cash in Hand ₹ 2,200; Cash at Bank ₹ 5,400; Stock ₹ 25,100; Sundry Debtors ₹ 18,700; Furniture ₹ 6,000; Sundry Creditors ₹ 13,500.His position on 31st March, 2017 was as follows:Cash in Hand ₹ 1,500; Cash at Bank ₹ 8,400; B/R ₹ 3,300; Stock ₹ 26,000; Sundry Debtors ₹ 24,600; Furniture ₹ 8,000; Sundry Creditors ₹ 14,200.During the year he had withdrawn from the business ₹ 18,000, of which ₹ 9,200 were spent in purchasing a Typewriter for the business.(a) Depreciate furniture and typewriter by 10%.(b) Write off ₹ 600 as Bad-Debts.(c) Make a provision of 5% on Debtors for doubtful debts.Calculate the profit or loss of his business for the year ended 31st March, 2017 and prepare a final statement of affairs, after the above adjustments. |
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Answer» Ashok keeps incomplete records. The position of his business on 1st April, 2016 was as follows: Cash in Hand ₹ 2,200; Cash at Bank ₹ 5,400; Stock ₹ 25,100; Sundry Debtors ₹ 18,700; Furniture ₹ 6,000; Sundry Creditors ₹ 13,500. His position on 31st March, 2017 was as follows: Cash in Hand ₹ 1,500; Cash at Bank ₹ 8,400; B/R ₹ 3,300; Stock ₹ 26,000; Sundry Debtors ₹ 24,600; Furniture ₹ 8,000; Sundry Creditors ₹ 14,200. During the year he had withdrawn from the business ₹ 18,000, of which ₹ 9,200 were spent in purchasing a Typewriter for the business. (a) Depreciate furniture and typewriter by 10%. (b) Write off ₹ 600 as Bad-Debts. (c) Make a provision of 5% on Debtors for doubtful debts. Calculate the profit or loss of his business for the year ended 31st March, 2017 and prepare a final statement of affairs, after the above adjustments. |
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