Following are the details of Assets and Liabilities of Mr. Sarthak for the year ended 31 st March, 2023 and31March, 2024: 31 st March, 2023 (₹) 31…

Mr. Sarthak Statement of Affairs as on 31-03-2023 &31-03-2024 Liabilities Amount 31-03-2023 (₹) Amount 31-03-2024 (₹) Assets Amount 31-03-2023 (₹) Amount 31-03-2024 (₹) Capital (Bal. Fig.) 3,14,500 4,32,600 Building 2,00,000 1,90,000 Loans 1,50,000 1,25,000 Furniture 75,000 67,500 Sundry creditors 58,400 79,500 Inventory 1,05,000 1,95,000 Sundry debtors 68,000 94,000 Cash at bank 72,500 86,800 Cash in hand 2,400 3,800 5,22,900 6,37,100 5,22,900 6,37,100 Determination of profit by applying the method of the capital comparison Amount (₹) Capital Balance as on 31-03-2024 4,32,600 Less: Fresh capital introduced (40, 000) 3,92,600 Add: Drawings (₹ 2500 ×₹ 12) 30,000 4,22,600 Less: Capital Balance as on 31-03-2023 (₹ 3,14,500) Profit for the year ended 31 st March, 2024 1,08,100 Alternatively capital account can also be prepared as follows: Particulars Amount (₹) Particulars Amount (₹) To Drawings 30,000 By Balance b/d 3,14,500 To Balance c/d 4,32,600 By Additional capital 40,000 By Net Profit (Bal Fig) 1,08,100 4,62,600 4,62,600