Question
What is meant by Statement of Affairs?
✓
Answer
A Statement of Affairs is a statement of assets and liabilities. Difference between the amounts of the two sides is taken as capital. Under the Single Entry System, it is necessary to prepare Statement of Affairs at the end of the year and also in the beginning of the year, if not already prepared to determine profit. Statement of Affairs like Balance Sheet, has two sides-right-hand side for Assets and left-hand side for Liabilities. The difference between the total of assets and liabilities is capital.
Capital = Total Assets – Liabilities
Capital = Total Assets – Liabilities
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Similar questions
A firm sells goods at a Gross profit of 25% of sales. On 1st April, 2017 the Stock was ₹ 40,000; Purchases were ₹ 1,10,000 and the Stock on 31st March, 2018 was ₹ 30,000. What was the value of Sales?
Mohan maintains books on Single Entry System. He gives you the following information:
You are required to calculate the Profit or Loss made by Mohan.
| ₹ | |
| Capital on 1st April, 2018 | 15,200 |
| Capital on 31st March, 2019 | 16,900 |
| Drawings made during the year | 4,800 |
| Capital introduced on 1st August, 2018 | 2,000 |
From the following particulars, prepare Total Creditors Account:
| ₹ | |
| Credit purchases | 2,40,000 |
| Cash purchases | 50,000 |
| payment to creditors | 2,10,000 |
| Discount allowed by them | 5,000 |
| Bills Payable accepted | 30,000 |
| Creditors in the beginning of the year | 90,000 |
From the details given below find out the Credit Sales and Total Sales:
Calculate gross profit and cost of goods sold from the following information:
→| Net Sales | ₹ 12,000 |
| Gross Profit | $33\frac{1}{3}\%$ on Sales |
Ascertain cost of Goods Sold and Gross Profit from the following:
|
|
₹
|
|
Opening Stock
|
32,000
|
|
Purchases
|
2,80,000
|
|
Direct Expenses
|
20,000
|
|
Indirect Expenses
|
45,000
|
|
Closing Stock
|
50,000
|
|
Sales
|
4,00,000
|
|
Sales Returns
|
8,000
|
Computerised Accounting System is the best form of accounting system. Do you agree? Comment.
Enter the following transactions in the Sales Return Book of Raj Computers, Delhi:
Write up the Ledger Accounts.
|
2018
|
|
|
July 1
|
Sohan & Sons returned 2 Laptops HP sold @ ₹ 40,000 each plus CGST and SGST @ 6% each
|
|
July 2
|
Ramesh 2 'Ricoh' printers sold @ ₹ 10,000 each plus IGST @ 12%
|
|
July 25
|
Dinesh, Chandigarh returned 10 HP Desktops sold @ ₹ 20,000 each plus IGST @ 12% for delayed supply
|
|
July 26
|
Computer Mouse returned by Ravi, Delhi sold to him for cash ₹ 2,000 plus CGST and SGST @ 6% each
|
Ascertain cost of Goods Sold and Gross Profit from the following:
|
|
₹
|
|
Opening Stock
|
32,000
|
|
Purchases
|
2,80,000
|
|
Direct Expenses
|
20,000
|
|
Indirect Expenses
|
45,000
|
|
Closing Stock
|
50,000
|
|
Sales
|
4,00,000
|
|
Sales Returns
|
8,000
|
Atul does not keep proper records of his business. He gives you the following information:
Calculate profit or loss for the year.
Calculate profit or loss for the year.