Mr. Khubaib started business with capital of Rs. 72,000 on st January 2006.His position on 31st December 2006 was as follows: Cash Rs.1,600, Bank balance Rs.14,000, Debtors Rs. 128,000, Stock Rs.138,000, Plant Rs.540,000, Furniture Rs.30,000 and Creditors Rs.580,000.

Mr. Khubaib introduced fresh capital of Rs.100,000 during the year he withdrew Rs.17,000 for his domestic use.

Required: Prepare statement of profit and loss and statement of affairs as on 31st December 2006.

Answer rating: 100% (QA)

Statement of Profit and Loss for the year ended 31st December 2006 Income Sales Rs1 600 ... View the full answer