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13 Raja commenced business on 1st January, 2020, with a capital of Rs.10,000, which he paid into banking account opened for that purpose. On the same date he bought stock valued at Rs.6,500 and furniture which cost Rs.2,000. He kept his

13 Raja commenced business on 1st January, 2020, with a capital of Rs.10,000, which he paid into banking account opened for that purpose. On the same date he bought stock valued at Rs.6,500 and furniture which cost Rs.2,000. He kept his

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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13. Raja commenced business on 1st January, 2020, with a capital of Rs.10,000, which he paid into banking account opened for that purpose. On the same date he bought stock valued at Rs.6,500 and furniture which cost Rs.2,000. He kept his
Transcribed Image Text:13. Raja commenced business on 1st January, 2020, with a capital of Rs.10,000, which he paid into banking account opened for that purpose. On the same date he bought stock valued at Rs.6,500 and furniture which cost Rs.2,000. He kept his
UNIT books on single entry basis. On 31st December, 2020, stock was valued at Rs.8.300 There were book debts amounting to Rs.3,400 of which Rs.200 represented debts which were irrecoverable. Creditors amounted to Rs.3,600 and the cash book showed a balance of Rs.1,650, but according to Pass Book, the balance at Raja's credit was only Rs.1,450, he having given his son Rs.200 and omitted to enter in the cash book. Raja withdrew Rs.1,800 from the business for his private expenses, and in addition he used, Rs.500 worth of goods from his shop. He took Rs.1,000 as loan from his wife during the year. Prepare a statement showing Raja's profit or loss in the business for the year ended 31st December, 2020 from the above information.
Transcribed Image Text:UNIT books on single entry basis. On 31st December, 2020, stock was valued at Rs.8.300 There were book debts amounting to Rs.3,400 of which Rs.200 represented debts which were irrecoverable. Creditors amounted to Rs.3,600 and the cash book showed a balance of Rs.1,650, but according to Pass Book, the balance at Raja's credit was only Rs.1,450, he having given his son Rs.200 and omitted to enter in the cash book. Raja withdrew Rs.1,800 from the business for his private expenses, and in addition he used, Rs.500 worth of goods from his shop. He took Rs.1,000 as loan from his wife during the year. Prepare a statement showing Raja's profit or loss in the business for the year ended 31st December, 2020 from the above information.
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