Step 2- : Calculate the amount of 'Closing Capital' by preparing 'Statement of Affairs' at the end of the accounting period.
Step 3 - : Calculate the amount of 'profit or loss' by preparing 'Statement of profit or loss' Statement of profit or loss for the year ending on 31st March, 2011
Case II - When opening and closing capital are given.
Illustration : 2
Simran tells you that her capital on 31st march, 2011 is Rs 25,00,000 and her capital on 31st march,2010 was Rs 18,00,000. She further informed you that during the year she gave a loan of Rs 4,00,000 to her sister on private account and withdrew Rs 15,000 per month for personal purposes. She also used a flat for her personal use, the rent of which Rs 8,000 per month and electricity charges at an average rate of Rs 6000 per quarter were paid from the business account. During the year Simran sold her 10,000 shares of ABC Ltd.in the open market at a price of Rs 150 per share and brought that money in to the business. Besides this, there is no further information.You are required to prepare a statement or profit or loss for the year ending on 31st March, 2011 to ascertain the amount of profit or loss.
Note :
When calculating the amount of expenses incurred during the year, it should be carefully noticed that whether the expenses are give on monthly or quarterly or half-yearly basis.
Case-I : If expenses are given on monthly basis :
Total expenses incurred during the year = Monthly Expenses × 12
Case -II : If expenses are given on quarterly basis :
Total expenses incurred during the year = Quarterly Expenses × 4
Case-III : If expenses are given on half-yearly basis :
Total expenses incurred during the year = Half Yearly Expenses × 2
Case-IV : If expenses are given on bi-monthly basis :
Total expenses incurred during the year = Bi-monthly Expenses × 6
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
Email Id : maheshwari1569@gmail.com
