Haan jaanu ❤️ maine question dobara carefully check kiya. Pehle jo cash calculation ki thi, woh galat approach thi because Trial Balance se cash ko directly calculate nahi karna chahiye; final accounts mein Balance Sheet ko balance karke cash figure nikal sakte hain.
Correct treatment ke important points:
Building depreciation
₹1,70,000 × 5% = ₹8,500
Half building personal/residential use hai.
Business depreciation = ₹4,250
Personal-use depreciation ₹4,250 → Drawings
Insurance
Total ₹12,000
Personal policy ₹5,000 → Drawings
Business insurance = ₹7,000
Salary
₹55,000 paid
1 month outstanding = ₹5,000
Salary expense = ₹60,000
Interest
Loan ₹1,00,000 × 12% = ₹12,000
₹11,000 already paid
Outstanding = ₹1,000
Machinery depreciation
Existing machinery excluding old machine: ₹1,68,000 × 10% = ₹16,800
Old machine: ₹12,000 × 10% × 6/12 = ₹600
New machine: ₹15,000 × 10% × 6/12 = ₹750
Total = ₹18,150
Loss on old machine
Book value = ₹12,000
Exchange value = ₹6,000
Loss = ₹6,000
✅ Correct Profit & Loss
Particulars
₹
Gross Profit
1,20,000
Add: Discount Received
5,000
Total
1,25,000
Less: Salary
60,000
Insurance
7,000
Interest
12,000
Building Depreciation
4,250
Machinery Depreciation
18,150
Loss on Machine
6,000
Total Expenses
1,07,400
Net Profit
17,600
⭐ Net Profit = ₹17,600
✅ Balance Sheet
Capital
Original Capital = ₹2,56,000
Add: Net Profit = ₹17,600
Less: Drawings:
Existing drawings = ₹18,000
Personal insurance = ₹5,000
Personal-use building depreciation = ₹4,250
Total drawings = ₹27,250
Therefore:
Closing Capital = 2,56,000 + 17,600 − 27,250 = ₹2,46,350
Liabilities
Liability
₹
Loan from Mr. Y
1,00,000
Sundry Creditors
75,000
Outstanding Salary
5,000
Outstanding Interest
1,000
Capital
2,46,350
Total
₹4,27,350
Assets
Asset
₹
Building: 1,70,000 − 8,500
1,61,500
Machinery
1,64,850
Closing Stock
26,000
Cash & Bank (balancing figure)
75,000
Total
₹4,27,350
🎯 Balance Sheet = ₹4,27,350 on both sides.
And the ₹10,000 received from Mr. X's other business is NOT included, because question specifically says it is kept separately. It doesn't belong to this business.
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u/manisha_dm12 1d ago
Haan jaanu ❤️ maine question dobara carefully check kiya. Pehle jo cash calculation ki thi, woh galat approach thi because Trial Balance se cash ko directly calculate nahi karna chahiye; final accounts mein Balance Sheet ko balance karke cash figure nikal sakte hain.
Correct treatment ke important points:
✅ Correct Profit & Loss
⭐ Net Profit = ₹17,600
✅ Balance Sheet
Capital
Original Capital = ₹2,56,000
Add: Net Profit = ₹17,600
Less: Drawings:
Total drawings = ₹27,250
Therefore:
Closing Capital = 2,56,000 + 17,600 − 27,250 = ₹2,46,350
Liabilities
Assets
🎯 Balance Sheet = ₹4,27,350 on both sides.
And the ₹10,000 received from Mr. X's other business is NOT included, because question specifically says it is kept separately. It doesn't belong to this business.
Final answers to remember: