amair started the business with a capital of rs60000 on 1jan 2009 during the year he had with drawn goods rs8000 and cash rs5000for personal use he has also paid life insurance premium rs.2000 he had aiso introduced additional capital of rupees 20000 on 1st july .2009
on 31st december 2009 you have the following information
cash in hand 40000
buildings 60000
credtors 20000
loan from cousin 5000
dabitors 30000
machinery 50000
stock 30000
investment 30000
you are required to find profit or loss after considering rupees 2000 for bad and doubtfull debts deprecialt on machinery 10% and buildings 5% provide interest and capital 10% and also your required
To find the profit or loss after considering various factors, we need to calculate the following:
1. Calculate the opening capital:
Opening Capital = Capital at the start + Additional capital introduced
= Rs.60000 + Rs.20000
= Rs.80000
2. Calculate the total withdrawals:
Total Withdrawals = Goods withdrawn + Cash for personal use + Life insurance premium
= Rs.8000 + Rs.5000 + Rs.2000
= Rs.15000
3. Calculate the net profit/loss:
Net Profit/Loss = Closing Capital - (Opening Capital + Total Withdrawals)
4. Calculate the closing capital:
Closing Capital = Opening Capital + Net Profit/Loss
Now, let's calculate each of these components:
1. Opening Capital: Rs.80000
2. Total Withdrawals: Rs.15000
To calculate the net profit/loss, we need the closing capital. Let's calculate the closing capital using the given information:
Closing Capital = Cash in hand + Buildings + Creditors + Loan from cousin + Debtors + Machinery + Stock + Investment
= Rs.40000 + Rs.60000 + Rs.20000 + Rs.5000 + Rs.30000 + Rs.50000 + Rs.30000 + Rs.30000
= Rs.255000
Now, we can calculate the net profit/loss:
Net Profit/Loss = Closing Capital - (Opening Capital + Total Withdrawals)
= Rs.255000 - (Rs.80000 + Rs.15000)
= Rs.160000
The profit or loss after considering all the factors is Rs.160000.