1 / 10

Accounts from Incomplete Records

Accounts from Incomplete Records. Statement of Affairs. Accounts from Incomplete Records. Statement of Affairs. Illustration -1. Illustration -II. Format. Statement of Profit or Loss. Statement of Affairs. Statement of Affairs. Format. Statement of Affairs as at ––.

leola
Download Presentation

Accounts from Incomplete Records

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Accounts from Incomplete Records Statement of Affairs

  2. Accounts from Incomplete Records Statement of Affairs Illustration -1 Illustration -II Format Statement of Profit or Loss Statement of Affairs

  3. Statement of Affairs Format Statement of Affairs as at ––

  4. Statement of Profit or Loss Format Statement of Profit or Loss for the year ended ........ * Positive balance shows profit and Negative balance shows Loss

  5. Statement of Affairs Illustration -1 Mr. Mehta started his readymade garments business on April 1, 2010 with a capital of Rs. 50,000. He did not maintain his books according to double entry system. During the year he introduced fresh capital of Rs. 15,000. He withdrew Rs. 10,000 for personal use. On March 31, 2011, his assets and liabilities were as follows : Total creditors Rs. 90,000 ; Total debtors Rs. 1,25,600 ; Stock Rs. 24,750 ; Cash at bank Rs. 24,980. Calculate profit or loss made by Mr. Mehta during the first year of his business using the statement of affairs method. Solution

  6. Statement of Affairs Solution -1 Books of Mr. Mehta Statement of Affairs as on March 31, 2011 24,980 Cashatbank Creditors 90,000 1,25,600 Debtors 85,330 Capital (balancingfigure) Stock 24,750 1,75,330 1,75,330 Statement of Profit or Loss

  7. Statement of Affairs Solution -1 Statement of Profit or Loss for the year ended March 31,2011 85,330 10,000 95,330 (15,000) 80,330 (50,000) 30,330

  8. Statement of Affairs Illustration -II 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, 2010, 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, 2011 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

  9. Statement of Affairs Solution -II Books of Mrs. Vandana Statement of Affairs as on April 1, 2010 and as  on March 31,2011 75,340 5,000 7,63,590 65,680 – 7,87,250 5,00,000 2,00,000 20,350 50,000 65,600 7,980 5,25,000 2,00,000 17,210 55,000 40,380 15,340 Statement of Profit or Loss 8,52,930 8,43,930 8,52,930 8,43,930

  10. Statement of Affairs Solution -II 7,87,250 96,000 8,83,250 (15,000) 8,68,250 (7,63,590) 1,04,660

More Related