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Profit or Loss = Capital at end – Capital at beginning + Drawings during the year · Part 2

Chapter 11: Accounts from Incomplete Records · ACCOUNTANCY

which she thought, were sufficient to run the business. On April , , available information from her records indicated that she had the following assets and liabilities: Printing Press Rs. , , , Buildings Rs. , , , Stock Rs.

, , Cash at bank Rs. , , Cash in hand Rs. , , Dues from customers Rs. , , Dues to creditors Rs.

, and Outstanding wages Rs. , . She withdrew Rs. , every month for meeting her personal expenses.

She had also introduced Rs. , during the year as additional capital. On March , her position was as follows : Press Rs. , , , Buildings Rs.

, , , Stock Rs. , , Cash at bank Rs. , , Cash in hand Rs. , , Dues from customers Rs.

, , Dues to creditors Rs. , . 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 , and as on March , Liabilities Apr. , Mar. , Assets Apr.

, Mar. , , , Printing press , , , , Wages outstanding – Buildings , , , , Capital , , , , , , , Cash at bank , , Cash in hand , , , , , , , , , , Statement of Profit or Loss for the year ended on March , Capital as on March , , , Add Drawings during the year , , , Less Additional capital introduced during the year ( , ) Adjusted capital at the end of the year ( . . ) , , Less Capital as on April , ( , , ) Profit made during the year , ,

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