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Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.?
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Kartik started his business with the capital of Rs. 16,000 on 1 April ...
Calculation of Profit
To calculate the profit of Kartik's business, we need to consider the following factors:
1. Capital: Kartik started his business with a capital of Rs. 16,000 on 1 April 2020.
2. Additions: During the year, Kartik made additional capital investments of Rs. 4,000.
3. Drawings: Kartik made drawings of Rs. 2,000 during the year.
4. Assets: Kartik's assets on 31 March 2021 include cash of Rs. 1,000, bank balance of Rs. 7,000, furniture worth Rs. 4,000, and stock valued at Rs. 6,000.
5. Liabilities: Kartik's liabilities on 31 March 2021 include creditors of Rs. 6,000 and debtors of Rs. 8,000.
Calculation of Profit:
To calculate the profit, we need to determine the increase or decrease in Kartik's capital during the year.
Opening capital = Rs. 16,000
Additional capital invested = Rs. 4,000
Drawings = Rs. 2,000
Closing capital = Opening capital + Additional capital invested - Drawings
Closing capital = Rs. 16,000 + Rs. 4,000 - Rs. 2,000
Closing capital = Rs. 18,000
Profit = Closing capital - Capital
Profit = Rs. 18,000 - Rs. 16,000
Profit = Rs. 2,000
Therefore, Kartik's profit on 31 March 2021 is Rs. 2,000.
Provision for Debtors:
To create a provision for debtors, we need to consider the provision rate mentioned, which is 5%.
Debtors = Rs. 8,000
Provision rate = 5%
Provision for debtors = Debtors * Provision rate
Provision for debtors = Rs. 8,000 * 5/100
Provision for debtors = Rs. 400
Therefore, a provision of Rs. 400 needs to be created for debtors.
Appreciation of Furniture:
The furniture appreciated by 20%. To calculate the appreciation, we need to consider the original value of the furniture.
Original value of furniture = Rs. 4,000
Appreciation rate = 20%
Appreciation of furniture = Original value of furniture * Appreciation rate
Appreciation of furniture = Rs. 4,000 * 20/100
Appreciation of furniture = Rs. 800
Therefore, the furniture appreciated by Rs. 800.
Summary:
- Kartik's profit on 31 March 2021 is Rs. 2,000.
- A provision of Rs. 400 needs to be created for debtors.
- The furniture appreciated by Rs. 800.
To calculate the profit of Kartik's business, we need to consider the following factors:
1. Capital: Kartik started his business with a capital of Rs. 16,000 on 1 April 2020.
2. Additions: During the year, Kartik made additional capital investments of Rs. 4,000.
3. Drawings: Kartik made drawings of Rs. 2,000 during the year.
4. Assets: Kartik's assets on 31 March 2021 include cash of Rs. 1,000, bank balance of Rs. 7,000, furniture worth Rs. 4,000, and stock valued at Rs. 6,000.
5. Liabilities: Kartik's liabilities on 31 March 2021 include creditors of Rs. 6,000 and debtors of Rs. 8,000.
Calculation of Profit:
To calculate the profit, we need to determine the increase or decrease in Kartik's capital during the year.
Opening capital = Rs. 16,000
Additional capital invested = Rs. 4,000
Drawings = Rs. 2,000
Closing capital = Opening capital + Additional capital invested - Drawings
Closing capital = Rs. 16,000 + Rs. 4,000 - Rs. 2,000
Closing capital = Rs. 18,000
Profit = Closing capital - Capital
Profit = Rs. 18,000 - Rs. 16,000
Profit = Rs. 2,000
Therefore, Kartik's profit on 31 March 2021 is Rs. 2,000.
Provision for Debtors:
To create a provision for debtors, we need to consider the provision rate mentioned, which is 5%.
Debtors = Rs. 8,000
Provision rate = 5%
Provision for debtors = Debtors * Provision rate
Provision for debtors = Rs. 8,000 * 5/100
Provision for debtors = Rs. 400
Therefore, a provision of Rs. 400 needs to be created for debtors.
Appreciation of Furniture:
The furniture appreciated by 20%. To calculate the appreciation, we need to consider the original value of the furniture.
Original value of furniture = Rs. 4,000
Appreciation rate = 20%
Appreciation of furniture = Original value of furniture * Appreciation rate
Appreciation of furniture = Rs. 4,000 * 20/100
Appreciation of furniture = Rs. 800
Therefore, the furniture appreciated by Rs. 800.
Summary:
- Kartik's profit on 31 March 2021 is Rs. 2,000.
- A provision of Rs. 400 needs to be created for debtors.
- The furniture appreciated by Rs. 800.
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Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.?
Question Description
Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.?.
Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.?.
Solutions for Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.? in English & in Hindi are available as part of our courses for Class 11.
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Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.?, a detailed solution for Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.? has been provided alongside types of Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.? theory, EduRev gives you an
ample number of questions to practice Kartik started his business with the capital of Rs. 16,000 on 1 April 2020. He maintains his accounts on single entry system. Calculate his profit on 31 March 2021 . His position on 31.3.2021 was as follows: Cash Rs. 1,000; bank balance Rs. 7,000; furniture Rs. 4,000; stock Rs. 6,000; creditors Rs. 6,000; Debtors Rs. 8,000. During the year, his drawings were Rs. 2,000 and additional capital invested was Rs. 4,000. Furniture appreciated by 20% and create a provision @5% on debtors.? tests, examples and also practice Class 11 tests.
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